Firm Risk Management in the Face of Product Liability Rules*

This paper addresses the issue of corporate risk management strategies in dealing with products liability law. It views risk management as the dependent variable. How do attributes of the firm and of the law of products liability influence the risk management practices of the corporation? Drawing on the work of Oliver Williamson and others, the paper views the firm as a boundedly rational organization that must devote significant resources in monitoring and controlling its agents. This is especially costly in an environment where the measure of adequate performance (i.e. the design, manufacturing and marketing of a non-defective product) is uncertain and where the criteria used by legal actors (judges and juries) to judge product defectiveness, may vary substantially from the criteria used by the firm's engineers and scientists. Both the costs of control and the level of legal uncertainty are variables. Together they combine to shape a firm's risk management strategy.     

Capturing Technological Opportunity Via Japan's Star Scientists: Evidence from Japanese Firms' Biotech Patents and Products

Using detailed data on biotechnology in Japan, we find that identifiable collaborations between particular university star scientists and firms have a large positive impact on firms' research productivity, increasing the average firm's biotech patents by 34 percent, products in development by 27 percent, and products on the market by 8 percent as of 1989–1990. However, there is little evidence of geographically localized knowledge spillovers. In early industry formation, star scientists holding tacit knowledge required to practice recombinant DNA (genetic engineering) were of great economic value, leading to incentives motivating their participation in technology transfer. In Japan, the legal and institutional context implies that firm scientists work in the stars' university laboratories in contrast to America where the stars are more likely to work in the firm's labs. As a result, star collaborations in Japan are less localized around their research universities so that the universities' local economic development impact is lessened. Stars' scientific productivity is increased less during collaborations with firms in Japan as compared to the U.S.     

Towards Law and Music

Through a review of Sara Ramshaw’s, Justice as Improvisation, the essay evaluates recent scholarly directions in the interdisciplinary field of law and music. The essay considers both methodological and epistemological questions motivating this scholarship, and argues that there yet remains the opportunity to pursue with even greater specificity the meaning of music, in terms of its own vocabulary and genre. The new field of law and music is slowly but surely combining these formal considerations with an ever richer vocabulary, and a richer inter-disciplinary dialogue not just about jazz but with it. What might have been a somewhat sterile exercise in virtuosity is turning into a fully-fledged interdisciplinary claim, with its own methodology and its own epistemology, capable of illuminating not just law or music, but both in light of the other.     

Strategic perspective on technology transfer: A call for collaborative research

Technology transfer should not be viewed as a single, “one shot” process. There are downstream strategic issues that must be dealt with if the technology-transfer process is to be well-integrated into a firm's activities. Too often these downstream issues are not apparent during the decisions leading to the actual transfer of the technology. Several key issues that should be weighed by managers are presented, their impact on competitive positioning is considered, and they are discussed in the contexts of maquiladora (twin-plant) factories in Mexico and investments in Chinese Special Economic Zones.     

Soft budgets and hard rents: a note on Kornai and Gomulka

This note shows how Kornai's concept of the soft budget constraint can be decomposed into separate elements of technical inefficiency and relative price distortion. The distinction between r-budget softness and m-budget softness introduced by Gomulka is shown to correspond to the equivalent and compensating variation measures of efficiency loss. It is also argued that budget softness should be viewed as the outcome of a rent-seeking process in which a firm's action in the control sphere incurs an opportunity cost in the real sphere. Adopting such a perspective leads to a re-definition of the resource loss associated with budget softness and results in much higher estimates of the social costs of soft budgets than those proposed in the existing literature.     

Toward a strategic-repositioning model for defense and aerospace contractors

This paper discusses progress in developing a strategic-positioning model for defense and aerospace contractors in the post-Cold War era. Going beyond traditional concepts of technology transfer, defense conversion, and corporate diversification, strategic repositioning is concerned with the entire set of organizational transformations required to successfully focus the firm's core competencies onto other economic sectors. It is a process of looking at all of the firm's capabilities, resources, and aspirations in a completely new light. Construction of the strategic-positioning model, now in progress, involves three stages: 1) conceptualizing the process, 2) formulating a theory of strategic repositioning through exploratory discussions with defense contractors at various stages of the process, and 3) constructing a strategic- repositioning decision-support tool for defense firms undertaking the process. This paper reports the results of the second stage, the exploratory discussions. Surprisingly, technology was of the least concern to the contractors. Rather than the technology itself, contractors were concerned about the different expectations of non-DOD markets regarding such ancillary technology issues as quality, reliability, maintainability, and the degree of technological standardization. Of greatest concern was the nature of the organization, particularly the contractor's corporate culture and how well it would fit with non- DOD markets.     

Stochastic amortization and manufacturing profitability

The quantitative analysis of manufacturing operations usually considers the amortization of physical assets, and allows for the cost of such assets in product prices. Typically, this involves the use of an asset's P/A ratio, where P is its initial cost and A is the net cash-flow or profit it generates in unit time. The simplest case, regarding asset life as fixed, is seldom credible, and a more realistic approach is to model the stochastic nature of asset lifetimes. In this paper, we demonstrate the efficacy of the strategy of calculating an average P/A, and show that the earning power of assets should increase with variability in lifetimes. We then argue that pricings based around this average are most useful with large numbers of assets, and that analysis of a small number requires a more considered approach. Finally, we consider the impact of estimating lifetime parameters on the approaches outlined.     

An empirical testing of leverage effects via the common distribution network

The paper aims to empirically test the significance of leverage effects via the common distribution network in the conglomerate mergers between beer and soju manufacturers of Korea in the time period of 1994–2003. In this paper, a beer (or soju) manufacturer's ability to push the sales of soju (or beer) products via the common regional liquor distribution network is measured by the beer (or soju) firm's market share in the region. If the leverage effect is significant, we expect consumer choices to be significantly affected by the merged firm's ability to push. For a consistent estimation of the leverage effect on consumer demands, this paper adapts a logistic demand function for Yellow Pages in Rysman [Rysman, M. (2004). Competition between networks: A study of the market for yellow pages. Review of Economic Studies, 71, 483–512], controlling other demand-side variables such as prices, consumer loyalty, quality and the introduction of new products. The hypothesis test results indicate that the leverage effects via the common distribution network were not significant at the significance level of 0.1. This conclusion is robust to different specifications of leverage effects and the number of potential drinking.     

The Council of Europe Data Protection Convention reform: Analysis of the new text and critical comment on its global ambition

The year 2010 set an important milestone in the development of data protection law in Europe: both Europe's basic regulatory texts, the EU Data Protection Directive and the Council's Convention for the Protection of Individuals with regard to Automatic Processing of Personal Data (Convention 108), were placed at an amendment process, having served individual data protection for many years and witnessed in the meantime technological developments that threatened to make their provisions obsolete. After briefly presenting Convention 108, the analysis that follows will highlight the Council's data protection system currently in effect as well as developments relating to the Convention's amendment so far with the aim of identifying improvements and shortcomings. While doing this two separate points of view shall be adopted: at first a micro point of view will attempt to identify improvements and shortcomings through an ‘insider’ perspective, that is, judging only the merits and difficulties of the draft text at hand. Afterwards a macroscopic view will be adopted, whereby strategic issues will be discussed pertaining to the important issue of the relationship of the suggested draft with the EU data protection system, as well as, the same draft's potential to constitute the next global information privacy standard.     

Dolly and Alice

The opinion of the United States Court of Appeals for the Federal Circuit, In re Roslin Institute, rejecting patent claims to mammals cloned from somatic cells, was rendered about a month before the United States Supreme Court''s decision in Alice Corp. v. CLS Bank International. The Alice opinion explicitly sets out the standard for determining whether an invention falls within statutory patentable subject matter. Thus one is thus left to wonder what the Roslin opinion might have looked like had it been decided only a few weeks later, after the Alice decision was published, with the benefit of the Supreme Court''s further direction on patentable subject matter. In this essay I explore whether in hindsight the Alice standard might have dictated a different outcome in Roslin, suggesting how the two-part test articulated by the Supreme Court in Alice might apply to a ‘products of nature’ analysis for cloned mammals. Drawing on that analysis, I then use the Roslin case as a vehicle to highlight certain issues with the Supreme Court''s current subject matter jurisprudence as applied to biotechnology. By juxtaposing Dolly with Alice, it becomes clear that the Supreme Court has revivified a number of dormant biotechnology patent problems in the guise of subject matter analysis.     

Who is a Proper Opponent? The Tibetan Buddhist Concept of phyi rgol yang dag

This paper examines the role of a proper opponent (phyi rgol yang dag) in debate from the standpoint of the Tibetan Buddhist theory of argumentation. A proper opponent is a person who is engaged in the process of truth-seeking. He is not a debater who undertakes to refute the tenets of a proponent. But rather, he is the model debater to whom a proponent can teach truth by using a probative argument in the most effective way. A proper opponent is thus the model thinker conceived by Tibetan Buddhist scholars, especially by the dGe lugs pa exegetes, to explain the idea of “inference for others.” The term phyi rgol yang dag figures in many text books of the dGe lugs pa school. And the germ of the dGe lugs pa's idea of ``proper opponent'' is found in early Tibetan tshad ma literature, too. The present paper shows that the dGe lugs pa scholars are largely concerned with the process by which one obtains an inferential knowledge about the unknown object, and also that they, when talking about a proper opponent, emphasize the pedagogical role of dialectic conversation rather than the competitive feature of debates.     

Technology transfer and industrial development in Taiwan

Taiwan, in spite of its limited land and natural resources, has achieved remarkable economic growth during the past four decades. Taiwan's gross domestic product (GDP) has grown 40 times and its industrial production has increased 87 times. The Industrial Technology Research Institute of Taiwan (ITRI) has played important roles in transferring applied technologies to industry. This diffusion of technologies, along with the government's efforts toward industrialization, has helped create a strong national economy in Taiwan.     

Keeping Revitalized Urban Neighborhoods Affordable

Abstract

Last May, George Jackson Jr., the president and CEO of the Detroit Economic Corporation, gave a warm embrace to gentrification at a forum on Detroit's future, telling the audience, “I'm sorry, but, I mean, bring it on. We can't just be a poor city and prosper." Jackson's remarks echo the views held by many residents of struggling postindustrial cities where the exodus of manufacturing jobs in tandem with suburbanization has resulted in cities hollowed out not only of their people but also their tax base. The Great Recession only intensified the economic decline of these once‐booming production centers, leaving in its trail an ever‐growing number of distressed buildings left tax delinquent, foreclosed, and abandoned. In the climate of this level of devastation, more affordable housing is often seen not only as unnecessary but counterproductive to a city's fate. Advocates of gentrification instead charge that the keys to revitalization are in attracting affluent urban professionals, incentivizing new businesses, and upgrading the public realm. Under this theory, housing affordability might be an issue in hot real estate markets like New York and San Francisco, but struggling cities like Detroit are deemed to already have too much affordable housing.     

Building successful technology transfer teams: A theory of cascading commitment

The attempt to transfer a technology from a publicly funded laboratory to a profit-oriented manufacturer can be a lengthy and complex process, involving several organizations and several key individuals within each organization. For example, a product technology transfer team may include the public lab itself, one or more end user organizations during product development and trial, a transfer agency, a public funding agency, the receptor manufacturer, and a private funding agency. Studies of such multi party transfers have suggested many factors that have contributed to their success or failure. We feel that most of these factors can be organized under the rubric of a more general theory of cascading commitment. Specifically, in this paper we propose that the likelihood of a transfer's success can be substantially affected by excellent management of the team building process by the public lab's R&D manager/director. Successful teams are built by gaining the commitment of appropriate individuals from appropriate organizations in a sequential cascading effect, by insightful and customized solicitation of each new team member to join at the appropriate stage of commercialization. To do this, the manager must be cognizant of, and individually appeal to, each new team member's perceptions of three sets of variables: evidence of the prior members' credibility, evidence of the prior members' commitment, and the set of personal benefits to be gained from participation.     

Rights by Fortune or Fight? Reexamining the Addition of Sex to Title VII of the Civil Rights Act

It is widely believed that the extension of protection against employment discrimination to women through Title VII of the Civil Rights Act (CRA) was a fluke, the product of an attempted “killer amendment” by civil rights opponents gone awry. My analysis challenges this conventional wisdom, showing that the coalition of Republicans and southern Democrats in support of the sex amendment to Title VII was consistent with broader patterns of support for the Equal Rights Amendment (ERA) in the early to mid‐20th century. In other words, support appears to have been sincere, not sophisticated—proponents preferred a CRA with the sex amendment to one without. I proceed to show that concern about the direct impact on women, and not simply the instrumental impact on labor, played an important role in motivating this support. But, I also find reason for caution in interpreting support for workplace rights as evidence of broad support for women's rights at this time.     

Feminized justice: The impact of women decision makers in the lower courts in Australia

We examine the impact of an Australian state government's decision to appoint a considerable number of women to its previously all-male Magistrates' Courts. Interviews with a sample of 30 male and female magnistrates revealed ready acceptance of this major change, probably because of organizational peculiarities of the jurisdiction. The advent of women as judicial decision makers was perceived to have improved the work environment of the courts. Comparison of the ways in which male and female magistrates perceive aspects of their job (e.g., judicial role, adjudication, sentencing, and the conduct of informal proceedings) suggests that most of the apparent gender differences are more likely the product of age and background than evidence of justice “in a different voice.” Changes in court ideology suggest that the appointment of women may have been used to further more general political objectives. A critical question for feminist research might be: When and why do conservative institutions adopt strategies that apparently promote women's interests?     

Legal aspects of managing Big Data

Big Data is shorthand for the currently rapidly evolving techniques of gathering and analysing for competitive advantage vast unstructured and structured sets of digital data. Big Data is currently at an early stage of development, but many organisations will be embarking on Big Data projects in the next couple of years in order to be in a position to know more about their customers than their competitors. Central to the success of these projects will be four critical factors: (i) understanding the legal framework for Big Data and how it applies to the organisation concerned; (ii) effectively bringing together the organisation's IT and legal functions in the Big Data project; (iii) a clear understanding of the organisation's objectives for its Big Data operations; and (iv) a structured approach to the strategy, policy and process aspects of Big Data governance.     

The ambiguous Heritage of Mitteleuropa: the Resurfacing of Mitteleuropa as a Counter-image to the EU in Austrian Populism

The analysis in this article addresses the resurfacing of Mitteleuropain the populist discourse or, more precisely, the use of Mitteleuropa-ideas in the political strategies of the Austrian FPÖ (Austria's right-wing `Freedom Party'). The plans of the future European assessment spread by the European right-wing populism have an ambiguous character, which partly reproduces the ambiguity of the traditional definitions ofMitteleuropa in the debate at the beginning of the twentieth century. The article shows that the FPÖ's use of the concept ofMitteleuropa must be analysed with regard to the problem of the Austrian identity, because the ambiguous status of an ‘Austrian identity between Mitteleuropa and German re-union’ is the most important condition underpinning the emergence of the FPÖ. Secondly, the choice of a particular idea ofMitteleuropa - the Mitteleuropadefined by principles of exclusion, by a strong German culture and identity (Kulturnation), and strict reference to a Volksgemeinschaft with a territory and a culture that are juxtaposed to a cosmopolitan and liberal idea of Mitteleuropa- reveals the FPÖ's historical legacy and its opposition towards democracy and the representative institutions. Finally, the question is raised as to whether Haider should be considered not only an Austrian phenomenon, but an Austrian reaction to political and economic transformations, which evoke other protest movements in Europe. On the one hand, Haider is an Austrian phenomenon. On the other hand, he represents an Austrian reaction to political and economic transformations. In this sense, Haider's populism can be compared to France's Le Pen or Belgium's Vlaams Blokif we look at the form of popular legitimacy that they invoke, the request for a re-territorialisation of politics and for the defence of a national / European identity, and the opposition to constitutional patriotism and to all forms of ``thin'' European identities.     

Technology transfer practice in japanese corporations: Meeting new service requirements

Japanese corporations are undergoing radical transition: they have begun to reassess the role, organization, and management of their internal R&D and technology commercialization activities in response to changing market, business, and technical conditions. From large consumer electronics firms such as Matsushita and Sony to the semiconductor and computing conglomerates such as Fujitsu and NEC, these organizations are under considerable pressure to both invent and innovate more rapidly and cheaply than ever before. As technologies become more complex and integrated—such as the convergence of electronics, computing, video, and broadcast television—it is no longer practical to assume that all of a firm's R&D needs can be met internally. This paper looks first at how major Japanese corporations have embraced technology transfer mechanisms such as licensing, joint collaboration, and the outsourcing of R&D to manage these changes dynamically and effectively. Secondly, this paper looks at why Japanese firms' record of managing collaboration and licensing, particularly on an international basis, has been disappointing because of a number of problems and barriers. These difficulties, which are compounded by the further externalization of research and technology and by increased licensing activity, have given rise to a need for new technology transfer services which, until recently, have not been available either within the organization or through local consulting firms in Japan. This paper concludes by outlining strategic and operational guidelines for managing licensing and collaboration arrangements between U.S. and Japanese firms which are also applicable in the general case. These insights are based on the experiences of managing licensing and collaboration programs between Japanese and U.S. organizations from the dual perspectives of two licensing firms—Innovation Partners, kk. in Japan and Competitive Technologies, Inc. of the United States.     

Improving APA science translation amicus briefs

This commentary uses APA's brief inPrice Waterhouse v. Hopkins to examine a number of issues concerning such briefs submitted to appellate courts: What are the purposes of APA's science translation briefs? What role conflicts emerge between legal advocates and empirical scientists? In what ways are these exacerbated or lessened by the respective duties of advocates and scientists? In what ways may the conflicts be compelled by differences between legal and empirical questions? How adequate are Brandeis briefs as a tool for communicating empirical research findings to appellate courts? Are any of the usual adversarial protections maintained? What is the question the court might look to the brief, and to the field, to answer? What is the role for meta-analyses? For what interests might APA as an amicus advocate? In addition to organizational self-interest and the public interest, does it ever make sense to advocate, in a purported science translation brief, on behalf of an ultimate issue in the case or for one of the parties to the litigation? To these difficult problems, I suggest a potentially simple solution.