Differentiation of innovation strategies based on pharmaceutical licensing agreements: Insight from Korean pharmaceutical firms

The paper aims to show how licensing behaviour can be used to differentiate distinct innovation strategies. Information on in-licensing and out-licensing agreements is used to guide the development of a framework that details the licensing firm’s relational preference for internal and external orientation. Using firm-level data of the Korean pharmaceutical firms, the study categorised the distinct strategic orientations of firms based on the proposed matrix model. The results indicated that firms with higher R&D (research and development) expenditures have a tendency to greater external exploitation of technological knowledge than firms with low R&D spending. The study provides potential avenues for targeting of licensing partners from the perspective of firms seeking to in-license or out-license their innovations.     

Price discrimination via information provision

We study price discrimination where different prices are offered as a bundle with different levels of information about a product. The seller’s price discrimination induces high valuation buyers to purchase a good without information and low valuation buyers to purchase with information. Our analysis highlights several interesting results about price discrimination: (i) the seller’s choice of information provision is the combination of full information and no information, (ii) products can be cheaper without information provision than with information provision, (iii) as a result of price discrimination, prices can be more dispersed as buyers’ valuations become largely similar, and (iv) the high valuation buyers purchase a damaged good and may earn negative surplus. Furthermore, we investigate under which circumstances price discrimination is more profitable than uniform pricing. We show that a decline in transportation costs which facilitate price discrimination can be welfare reducing.     

实际汇率、股价水平和就业路径的结构主义分析

真实汇率和真实股价水平可以作为预测因子,提前预测经济活动的强弱.自然利率能够在结构性繁荣和衰退期间担当中央银行利率政策的风向标,通过保持短期实际利率与自然利率的协调,中央银行能控制均衡的通货膨胀率,并使经济沿着随时间变化的自然失业率变化的轨道发展.美国和OECD国家的数据都证实了模型的有效性.     

An empirical analysis of the determinants of technology roadmap utilization

For many years now, firms have managed their research and development (R&D) by applying various approaches drawn from the discipline of technology roadmapping (TRM). The underlying rationale of these roadmapping approaches is to align firms' product and technology developments with their business goals. By visually representing firms' technology strategy, roadmaps support intra‐firm communication and facilitate the coordination of strategic decisions and activities within the technology management domain. Most previously published research on TRMs has focused on the design and implementation of roadmapping processes; that is, relatively few empirical or quantitative studies describe the use and evaluation of roadmapping techniques. This paper seeks to address this gap by conducting a survey of 186 different R&D units within stock market‐listed companies in Korea that have implemented TRM. The paper attempts to identify the antecedent factors behind firms' successful use of roadmaps, further identifying correlations between these antecedent factors through an analysis of the R&D units. It also empirically highlights these antecedent factors by empirically analyzing and verifying correlations between roadmap utilization and R&D performance.     

Expanding international trade beyond the RTA border: The case of ASEAN's economic diplomacy

We examine the roles of regional trade agreements (RTAs) not only in regionalization processes but also in globalization of trade. Results from various specifications of the gravity equation model confirm that a country can noticeably increase directional trade through diplomatic relations as well as through membership.     

The regional and global competitiveness of multinational firms

International competitiveness ultimately depends upon the linkages between a firm’s unique, idiosyncratic capabilities (firm-specific advantages, FSAs) and its home country assets (country-specific advantages, CSAs). In this paper, we present a modified FSA/CSA matrix building upon the FSA/CSA matrix (Rugman 1981). We relate this to the diamond framework for national competitiveness (Porter 1990), and the double diamond model (Rugman and D’Cruz 1993). We provide empirical evidence to demonstrate the merits and usefulness of the modified FSA/CSA matrix using the Fortune Global 500 firms. We examine the FSAs based on the geographic scope of sales and CSAs that can lead to national, home region, and global competitiveness. Our empirical analysis suggests that the world’s largest 500 firms have increased their firm-level international competitiveness. However, much of this is still being achieved within their home region. In other words, international competitiveness is a regional not a global phenomenon. Our findings have significant implications for research and practice. Future research in international marketing should take into account the multi-faceted nature of FSAs and CSAs across different levels. For MNE managers, our study provides useful insights for strategic marketing planning and implementation.     

A two-sector model with target-return pricing in a stock-flow consistent framework

In this paper, we build a generalized two-sector Kaleckian growth model and explore the dynamics towards long-run positions. The model incorporates conflicting claims of labour and firms over income distribution and endogenous labour-saving technical progress. Adopting a stock-flow consistent framework, our simulation experiments yield the following results. First, the ‘paradox of thrift’ and the ‘paradox of costs’ hold, meaning that lower saving rates generate higher growth rates while higher real wages generate higher profit rates, but the magnitude of the impact depends on the initial status of income distribution and monetary policy. Second, changes in autonomous labour-saving innovations might explain the phenomenon of the ‘New Economy’ of the second half of the 1990s within an alternative framework. Our simulations with a two-sector model retrieve the analytical results achieved with a one-sector Kaleckian model, with the addition of path dependence.     

Trade patterns and institutional change in East Asia

We investigate how trade patterns – institutionally intensive exports (IIX) – affect institutional quality in East Asia compared to the rest of the world, and whether the effect changed due to the Asian financial crisis. To examine this, we use panel data of 117 countries for the period 1988–2007. Our fixed effect model estimation reveals that the effect of IIX on institutional quality is negative and significant for East Asia, while the effect is insignificant for the rest of the world. The negative effect in East Asia is more pronounced for the five East Asian countries that were strongly affected by the crisis – South Korea, Indonesia, Malaysia, the Philippines and Thailand – than for other East Asian countries. Furthermore, our results reveal that the negative effect for East Asia does not change significantly after the crisis, both in the short and long term, and that improvement in institutional quality after the crisis is not different from that of the rest of the world. This suggests that the crisis had no significant impact on East Asia's institutional quality or on the effects of IIX on institutional quality.     

Future fiscal and budgetary shocks

We study the effects of future tax and budgetary shocks in a non-monetary and possibly non-Ricardian economy. An (unanticipated) temporary labor tax cut to be effective on a given future date—a delayed “debt bomb”—causes at once a drop in the (unit) value placed on the firms' business asset, the customer, with the result that share prices, the hourly wage, and employment drop in tandem. This paradox of reduced activity through announcement of future “stimulus” does not hinge on an upward jump of long interest rates. A future tax-rate cut lacking a “sunset” provision has the same negative effects.