Management of scientific institutions NPL 1995–98: the transition from agency to government-owned contractor operated (GOCO)

The last 10 years have seen a number of changes taking place in the management of publicly funded research institutions. Some have been transferred wholesale to the private sector, some closed and most encouraged to diversify their sources of funding. One management approach is that of the Government Owned Contractor Operated (GOCO). In this approach, the assets of the institute remain in state ownership but the responsibility of managing the institute and its research programmes is passed to a private sector management company. The UK’s National Physical Laboratory (NPL) has been managed under such an arrangement since 1995. NPL is responsible for the physical measurement standards which underpin much of the UK industrial base. This study, undertaken three years after the change in status, was concerned to identify what changes had taken place and what general management lessons could be learnt which might be applied elsewhere. The study wanted to discover if there had been any change in the ‘values’ of NPL, such as quality, integrity etc., as seen by industry, partner research groups and the research staff at NPL itself. The interviews of staff took place at the end of 1998. The study found that the contract has led to significant savings in the cost of research programmes through the adoption of greatly improved programme formulation processes and better resource management. Better commercial practice in marketing, finance, procurement and general business administration has permitted significant one‐off and on going savings in the costs of operating the facility. Less restrictive recruitment has led to an influx of new, younger, scientific staff bringing in new ideas and values. At the same time GOCO has not adversely affected the quality of scientific work, diminished the high international standing of NPL or led to significant staff demotivation. But neither has the change made much progress in changing deep rooted cultural factors nor resolving certain internal communication challenges. Improved responsiveness to customers is still an issue. GOCO has undoubtedly started to release the remarkable potential of NPL and has brought into much sharper focus some new challenges. Continuous rapid change is taking place in many of the eventual users of NPL work. Companies are looking for new ways of meeting their needs. This will create science and business opportunities.     

Impact on Firm Liquidity Arising from Outsourcing Decisions as Evidenced by Off-Balance-Sheet Disclosures

International Advances in Economic Research - Based on transaction-cost and resource-based theories (and other approaches), there is an extensive literature on the range of factors that are viewed...     

The take-up of means-tested income support

Many studies have identified that eligible claimants do not participate in means-tested income support programs. We examine the determinants of the decision to take-up social assistance in Canada using the 1997 Canadian Out of Employment Panel dataset. Using a conditional maximum likelihood approach to take account of the potential endogeneity of the level of benefits available to potential claimants, we find that benefit levels and recent receipt of Social Assistance (SA) are important determinants of the take-up decision. The results are important for the fiscal implications of changing benefit levels as the take-up rate is systematically related to the benefits potential recipients are entitled to receive. Further, it suggests that stigma and transaction costs associated with program use are important in explaining the take-up decision.     

Shakespeare plc

Does the Royal Shakespeare Company require subsidies from the taxpayer? Robert Whelan, a former actor with the RSC, argues that the RSC could survive without subsidy by putting on popular plays and not indulging the vanity of directors.     

The determinants of tendering periods for PPP procurement in the UK: an empirical analysis

The procurement of infrastructure projects via public–private partnerships (PPPs) is rising globally. PPPs are, however, often characterized by lengthy tendering periods, defined as the difference between contract notice and financial close. Tendering periods are important because they account for a significant proportion of overall project delivery time. Slow tendering deters bidders and thus reduces competition for contracts. We source data on 670 PPP projects in the United Kingdom and use a duration analysis model to empirically examine factors that impact tendering period duration. Our results reveal significant sectoral variation with projects in the health and housing sectors taking significantly longer to reach financial close. We also show that, after controlling for other factors, projects with higher capital values and projects that overlap with the timing of general elections are associated with significantly longer tendering periods. We further examine the impact of the competitive dialogue procurement method and find evidence that tendering periods have increased since 2006; the year competitive dialogue was introduced. We do, however, observe a significant reduction in the time between appointment of preferred bidder and financial close post-2006. This suggests that competitive dialogue is effective in reducing the scope for negotiations by preferred bidders holding quasi-monopoly advantages.     

Public—Private Partnerships in Ireland: Policy and Practice

Ireland's National Development Plan 2000–2006 includes a significant programme of public—private partnerships (PPPs). The Irish Government's policy on PPPs has been shaped to ensure that capital investments under PPP are not included when calculating key fiscal aggregates. This article traces the origins of Ireland's PPP programme and outlines the extent of PPP activity to date. It details how the PPP programme has failed to make an impact in terms of addressing Ireland's infrastructure deficit and examines three particular cases where the PPP model has been applied.