Which skills contribute most to absorptive capacity,innovation and productivity performance? Evidence from the US and Western Europe

ABSTRACT

Skills are widely recognised as central to absorptive capacity, that is, firms’ ability to identify and make effective use of knowledge, ideas and technologies that are generated elsewhere. But identification of the specific levels of education and skills that contribute most to the development of absorptive capacity is often hampered by the use of skill measures as proxies for absorptive capacity itself. Drawing on a cross-country industry-level dataset, we retain separate measures of key components of absorptive capacity, namely, skills, R&D investments and openness to foreign trade and investment. We then estimate a system of structural equations in order to evaluate the extent to which different levels of skill contribute to innovative output (measured by growth in patenting) and subsequently to growth in productivity. We find important roles for both high-level skills and upper intermediate (technician-level) skills in converting the knowledge sourcing opportunities provided by openness into innovative output. In final stages of production (making use of innovative output), productivity growth in countries near to the technological frontier is enhanced not just by high-level and upper intermediate skills but also by the skills of the workforce as a whole.     

Sustainability accounting—a brief history and conceptual framework

Research linking accounting to the emerging concept of sustainability surfaced in the early 1990s and has received continuing attention in academic and professional accounting literature. This paper tracks this brief history through to the release of the Sustainability Reporting Guidelines at the World Summit on Sustainable Development in August 2002, consolidating the various approaches into a sustainability accounting framework. The result is a comprehensive reporting model that presents an enormous challenge to business organisations, requiring a significant commitment of resources to achieve widespread implementation. Failure to meet this challenge enables business organisations to continue to avoid accountability for their continuing unsustainability. The paper concludes with a personal view as to how implementation of the sustainability accounting framework could proceed.     

The contested environmental governance of Maori-owned native forests in South Island,Aotearoa/New Zealand

In this study we set out to critically examine the environmental governance of native forests owned and managed by the Maori in New Zealand, with a specific focus on ‘SILNA’ lands given to the South island Maori as compensation lands for lost ancestral tribal lands. We will interrogate reasons for different forestry pathways in terms of how the process of European colonisation unfolded politically and spatially, the response of the Maori SILNA forest owners to pressures linked to land allocation and land rights issues over time, and the repercussions of these responses for biodiversity preservation in indigenous forest management systems. In order to unravel the complex environmental governance processes at play in the New Zealand context, we will pay particular attention to ‘exogenous’ (i.e. propelling forces outside Maori communities) and ‘endogenous’ regulation mechanisms (i.e. regulation of native forest management within SILNA forest blocks). New Zealand is a particularly appropriate setting as Maori governance, forest management and land rights issues have come to the fore over the past decades. Our findings suggest that Maori SILNA forest owners have used the full spectrum of forest management pathways, ranging from outright clearfelling and associated biodiversity depletion to forest preservation. The study highlights the complex interplay between endogenous environmental governance processes (actor embeddedness with their land and the role played by trusts and committees in particular) and exogenous drivers, in particular through the influence of international logging companies, and the policy environment which has sent mixed, and at times confusing, messages to Maori SILNA native forest owners.     

Intuitive managerial thinking; the use of mental simulations in the industrial marketing context

In this paper, we introduce empirical evidence showing how mental simulation was used as a heuristic strategy in an industrial network context. The mental network simulations observed are consistent with the Recognition-Primed Decision (RPD) model, according to which intuitive thinking allows managerial experience to be translated into focal network action, without resorting to a “rational” or comparative decision strategy. We identify the main business significance of mental network simulations in terms of their utility to clarify ambiguous or only partially known focal network situations, to develop coherent focal net plans and tactics, and to mentally preview how specific focal net tactics/strategies are likely to play out in reality. In short, mental network simulations were observed as being useful in generating focal net action through cognitively meeting the complex environmental challenges in dynamic focal net interaction between companies.     

UK Housing Market: Time Series Processes with Independent and Identically Distributed Residuals

The paper examines whether a univariate data generating process can be identified which explains the data by having residuals that are independent and identically distributed, as verified by the BDS test. The stationary first differenced natural log quarterly house price index is regressed, initially with a constant variance and then with a conditional variance. The only regression function that produces independent and identically distributed standardised residuals is a mean process based on a pure random walk format with Exponential GARCH in mean for the conditional variance. There is an indication of an asymmetric volatility feedback effect but higher frequency data is required to confirm this. There could be scope for forecasting the index but this is tempered by the reduction in the power of the BDS test if there is a non-linear conditional variance process.