Realizing new regional core competencies: establishing a customer-oriented SME network

This paper explores the possibilities of combining the recently developed ‘value constellation’ concept and the literature about industrial districts. The advantages related to the geographical concentration of economic activities are insufficient in the competition with companies that are linked to each other within a value constellation - a customer-oriented inter-organizational strategy. This new type of competition forces traditionally operating SMEs in industrial districts to team up with each other in a customer-oriented network. However, these networking strategies are unlikely to emerge because SMEs are locked into their traditional competencies and they lack the financial and strategic resources to develop interactive strategies covering the entire value system. Business associations and local institutions may play a crucial role in changing and shaping the emerging network among the SMEs. However, local institutions are equally susceptible to being locked into traditional patterns of interaction. Their willingness to break away from the past is crucial for the learning capabilities of local SMEs. The difficulties in setting up a customer-oriented network are illustrated by the ‘construction and home furnishings’ business cluster in South West Flanders (Belgium).     

Testing the lawyer-induced litigation hypothesis in Europe

Utilizing a European panel dataset, we contribute to the scant empirical literature on the lawyer-induced litigation hypothesis. To address endogeneity problems that arise when estimating the effect of the number of lawyers on civil litigation rates, we use two strategies. We first estimate our model by means of the 2SLS procedure. Second, we exploit the instrumental variable approach based on the linear GMM estimator of Arellano and Bond. The estimations result in a positive and significant effect of lawyers that is robust across the different model specifications and estimation methods in which we address endogeneity. In criminal litigation, where lawyers cannot induce demand, we find no such positive relation between lawyers and litigation.     

THE EFFECTIVENESS OF ACTIVE LABOR MARKET POLICIES: A META‐ANALYSIS

This paper provides a meta‐analysis of microeconometric evaluation studies on the effectiveness of active labor market policies. The analysis is built upon a systematically assembled data set of causal impact estimates from 57 experimental and quasi‐experimental studies, providing 654 estimates published between January 1990 and December 2017. We distinguish between the short and longer term impacts in our analysis; at 6, 12, 24, and 36 months after program start. After correcting for publication bias and country‐specific macroeconomic characteristics, subsidized labor and public employment programs have negative short‐term impacts, which gradually turn positive in the longer run. Schemes with enhanced services including job‐search assistance and training programs do not have these negative short‐term effects, and stay positive from 6 until 36 months after program start.     

HORIZONTAL MISMATCH BETWEEN EMPLOYMENT AND FIELD OF EDUCATION: EVIDENCE FROM A SYSTEMATIC LITERATURE REVIEW

This paper provides a systematic review of the growing literature on the poor match between employees’ field degree and the job requirements, also referred to as horizontal mismatch. We identify the different definitions used in the literature and find that each measure of horizontal mismatch yields substantially different incidence rates. We discuss the validity of the different measures and conclude that a more uniform definition of horizontal mismatch is needed. The likelihood of horizontal mismatch is among other things determined by the extent to which employees possess general skills as opposed to occupation‐specific skills, and, it appears to be more frequently present among older workers. Compared to well‐matched employees, horizontally mismatched workers generally incur a wage penalty, are less satisfied with their jobs, and are more likely to regret their study programme. The ensuing findings offer guidance to prevent horizontal mismatch as well as a roadmap for future research.     

Exploring a theoretical framework to structure the public policy implications of open innovation

Open innovation is increasingly popular among practitioners and scholars, but its implications for public policy making have not yet been analysed in detail. This paper explores a theoretical framework to structure the debate about public policy making that facilitates open innovation. We first define open innovation in terms of firms’ open innovation practices and external conditions that encourage enterprises to practice open innovation. We show that policies for open innovation are legitimate as traditional arguments like market and system failures continue to apply. Next, we identify several guidelines for policymaking. Rather than just offering R&D and interaction-oriented policies, we conclude that open innovation warrants attention in a broader range of policy areas, including entrepreneurship, education, science, labour markets and competition. Developing truly horizontal policies is a major challenge to facilitate open innovation in developed economies.     

A Model for Fair Trade Buying Behaviour: The Role of Perceived Quantity and Quality of Information and of Product-specific Attitudes

In a sample of 615 Belgians a model for fair trade buying behaviour was developed. The impact of fair trade knowledge, general attitudes towards fair trade, attitudes towards fair trade products, and the perception of the quality and quantity of fair trade information on the reported amount of money spent on fair trade products were assessed. Fair trade knowledge, overall concern and scepticism towards fair trade, and the perception of the perceived quantity and quality of fair trade information, influence buying behaviour directly and indirectly through product attitudes. Interest in fair trade products, price acceptability and product liking have a significant impact on fair trade buying behaviour. Product interest is the most important variable influencing buying behaviour. Implications for the campaigns of governments and for the marketing strategy of fair trade organisations are offered.     

An economic analysis of the EU Commission’s proposal for a new consumer credit directive

The debate on ratification or revision of the proposed new Consumer Credit Directive continues. The European Parliament neither rejected nor approved the Commission’s proposal at the plenary session on November 5, 2003. While the Commission insists on defending the merits of the proposal, the LAC Rapporteur Würmeling calls for a complete modification. This article is intended to serve as a navigation guide past the holes and obstacles on the winding ratification path.     

Governing the coffee chain: The role of voluntary regulatory Systems

The coffee crisis has coincided with the emergence of a number of voluntary regulatory systems in the global coffee chain. The present article explores the advantages and limitations of such schemes, their impact on the chain’s governance, and their implications for farmers’ upgrading. We conclude that participation in these systems does not ensure a better economic performance, but it may facilitate coordination between roasters/traders and some growers, which may lead to upgrading opportunities. The paper also explores some possible options for deriving rents from improved coordination along the coffee chain.     

EURANDOM: a decade of European stochastics

Conception, founding, start-up and development of EURANDOM are described by Willem van Zwet, Frank den Hollander (former scientific directors of EURANDOM) and Wim Senden (former managing director of EURANDOM).     

Futures markets,price stabilization and efficient exploitation of exhaustible resources

Markets for natural resource futures contracts and cash forward contracts experience a rapid growth. According to theory, this should result in more efficient resource depletion, implying that price formation is more consistent with Hotelling's rule. The rationale of this stabilization effect is briefly discussed. Next, we analyze the impact of expanding futures markets on the behaviour of individual resource owners trading on the cash market. Using a simple pulse extraction model, we demonstrate that the expected time of depletion can shift to the present or the future, and that utility of exploitation can go up or down, as market prices are stabilized.