Additionality of public R&D grants in a transition economy

This paper examines the input and output additionality of public R&D subsidies in Western and Eastern Germany. We estimate the impact of public R&D grants on firms’ R&D and innovation input. Based on the results of this first step we compare the impact of publicly funded private R&D on innovation output with the output effect of R&D funded out of firms’ own pockets. We employ microeconometric evaluation methods using firm‐level data derived from the Mannheim Innovation Panel. Our results point towards a large degree of additionality in public R&D grants with regard to innovation input measured as R&D expenditures and innovation expenditures, as well as with regard to innovation output measured by patent applications. Input additionality has been more pronounced in Eastern Germany during the transition period than in Western Germany. However, R&D productivity is still larger for the established Western German innovation system than for Eastern Germany. Hence, a regional redistribution of public R&D subsidies might improve the overall innovation output of the German economy.     

WTO: Stillstand ohne Abschluss

Ohne Zusammenfassung     

Die Moskauer Nachschrift der Vorlesungen von Adam Smith

Ohne Zusammenfassung     

Adverse Selection,Investor Experience and Security Choice in Venture Capital Finance: Evidence from Germany

This article analyses 336 German venture capital transactions from 1990 to 2005 and seeks to determine why selected financial securities differ across deals. We find that a broad array of financial instruments is used, covering straight equity, mezzanine and debt‐like securities. Based on the chosen financial securities’ upside potential and downside protection characteristics, we provide an explanation for the differing use of these securities. Our results show that investors’ deal experience, adverse selection risks and economic prospects in the public equity market influence the selection of financial securities.     

The mortality among industrial insured lives in Norway during the war

In the Norwegian life insurance company Fram a continuous mortality investigation takes place in connection with the yearly valuation of policies issued with weekly premiums. The investigation gives the aggregate mortality, the unit is the policy and the year of observation is the calendar year. A detailed account of the method used has been given by Fredrik Borch in his paper: “The mortality among industrial insured lives in Norway 1931–1940” in this journal 1943. The most important results of the investigation from the years 1940–1946 are rendered below.     

Competition,regulation, and broadband access to the internet

This paper reexamines the effect of the regulatory regime on both penetration and coverage of broadband access to the internet. The framework allows for an evaluation of policy initiatives, guidelines and measures to bridge the digital divide and to promote investment. A welfare analysis compares service-based with facilities-based competition and asks whether and how high-speed access to the internet should be subsidized. Using an approach similar to Valletti, Barros, and Hoernig (2002), the paper highlights the importance of population density for whether firms invest to provide internet access. The analysis reveals a trade-off between coverage and penetration.     

A theory of sequential reciprocity

Many experimental studies indicate that people are motivated by reciprocity. Rabin [Amer. Econ. Rev. 83 (1993) 1281] develops techniques for incorporating such concerns into game theory and economics. His theory is developed for normal form games, and he abstracts from information about the sequential structure of a strategic situation. We develop a theory of reciprocity for extensive games in which the sequential structure of a strategic situation is made explicit, and propose a new solution concept—sequential reciprocity equilibrium—for which we prove an equilibrium existence result. The model is applied in several examples, and it is shown that it captures very well the intuitive meaning of reciprocity as well as certain qualitative features of experimental evidence.     

How to suppress a lead

According to the findings of Schöler (1994)¹ the “Business Climate” developed by the ifo Institute for Economic Research, Munich, cannot be used as a leading indicator for business cycle forecast. This paper shows that this result is due to Schöler's choice of statistical methods applied: apart from generating stationary time series, Schöler's filter systematically suppresses the business cycle components and amplifies the irregular components. It impairs the basis for the causality test.     

Corporate morality called in question: The case of Cabora Bassa

This article presents a case study of a big German enterprise (Siemens) facing a large wave of public critique and protest activities. The public was concerned about the political circumstances surrounding the construction of the Cabora Bassa hydroelectric dam in Mozambique in which Siemens was largely involved.This study reports the escalating protest against the firm over three years (1970–1972) and the firm's responses during that period. The analysis of the case focusses on the behaviour of the firm which is interpreted in the light of the business social responsibility doctrine. The article proposes that the firm experienced a legitimation crisis and responded by reorienting its philosophy of business.Georg Schreyögg is Professor of Management at the Department of Business at Fern Universität Hagen. He has written five books on Quality of Working Life, Organizational Theory and Business Strategy, and several articles, published in various business journals. His recent research has addressed strategic control.Horst Steinmann is Professor of Management at the faculty of business at Universität Erlange-Nürnberg. He has written several books and a number of articles. His most recent research interest focusses on business ethics and the philosophy of dialogue.Our case is based on an analysis of documents and on interviews. Because the project received wide public interest, many documents, handbills, memoranda, articles, etc. were available. In addition, we had access to internal Siemens documents (letters, internal memoranda, policy statements, delivered opinions, etc.). Much of the material was filed in the Cabora Bassa archive of Siemens which was kindly opened to the researchers. Reconstructing the flow of events was facilitated by interviews with Siemens managers then responsible for the project. The company approved of the publication of the internal memoranda and data cited. Special thanks are due to Wilhelm Forstmann for his support and his willingness to answer all our questions in a series of interviews.     

Trends in the international competitiveness of industrial countries

It has become fashionable in recent times to describe the state of the Western European economies with the word “eurosclerosis”. Is the international competitiveness of these economies really as ailing as this world implies? The following article attempts to answer this question using various methods of measuring international competitiveness.