Insider-controlled Firms in Russia

Privatisation Vouchers in Russia were heavily invested in the holders' own firms. Using data from a recent survey, we show that insider control in firms privatised in 1992-4 through the voucher process (as distinct from the earlier leased buy-out method) is insecure and dependent on managers' support. For employees, investment in insider control appears to have been motivated by employment income insurance rather than expected excess returns on the equity. Managers are predominantly the same individuals as before privatisation and display considerable hostility to outside investors, probably because they fear dismissal should outsiders gain control. Despite insider control, firms are shedding labour quite rapidly through voluntary resignations. Employment dynamics appear to be unrelated to insider equity ownership.     

Imprinting and the progeny of university spin-offs

In this paper, we employ a genealogical imprinting approach to theorize that experiences incurred during the founding of a first-generation university spin-off will influence future spin-off activity from the focal firm. We propose that firms that secure equity investment during their founding process will have a higher likelihood of generating subsequent spin-offs, and that this impact is conditional on the human capital of the founding team. We test our hypotheses on a sample of 101 first generation university spin-offs around a large US research university and their subsequent progeny firms. This study develops a new understanding of multi-generational spin-off processes in a region.     

How to benefit from publicly funded pre-competitive research: an empirical investigation for Germany’s ICR program

This paper contributes to the debate on the systemic effects of technology policy by investigating spillovers of pre-competitive publicly funded Industrial Collective Research (ICR) in Germany which is carried out by non-profit research institutes. Using data for 911 firms surveyed in 2006, the results show that non-actively involved firms in ICR projects use ICR results to a large extent. Almost all of these firms are engaged in collaborative research projects with non-profit research institutes. We conclude that company–scientists linkages are an important pre-requisite to absorb ICR results by non-actively involved firms in ICR projects.     

Managing technological dependence in the developing countries: Analysis at the firm level

This paper explores the strategies pursued by the firms in the Developing Countries to cope with technological dependence. It is proposed that the firms in the Developing Countries are showing trends toward developing an organizational infrastructure to facilitate technological innovations in order to reduce their technological dependence to the foreign suppliers of technology. This proposition is tested by utilizing the data collected from 61 Turkish firms. The implication of the emerging trends for the practicing managers are also offered.     

Innovation capacity and economic development: China and India

Decomposing the GDP growth from 1981 to 2004, this paper finds that innovation capacity has contributed significantly to the economic growth of China and India, especially in the 1990 s. Outputs of the national innovation system, measured by patents and high-tech/service exports, demonstrate the considerable progress China and India have made in innovation capacity. The enhanced innovation capacity of China and India is primarily due to their heavy investment in the inputs of innovation system, i.e., R&D expenditure and R&D personnel, in recent decades. This paper emphasizes the role that the governments have played in promoting innovation capacity and their contribution to economic development. Both governments have transformed their national innovation systems through linking the science sector with the business sector, providing incentives for innovation activities, and balancing import of technology and indigenous R&D effort. Using case studies of domestic biotech firms in China and India, this paper also offers micro-level insights on innovation capacity and economic development: (1) innovation capacity has become essential for domestic firms?? market success and (2) global institutional factors and national government policies on innovation have considerable influence on the choice of innovation at the firm level, i.e., to conduct indigenous R&D or to import foreign technology.     

The impact of court errors on liability sharing and safety regulation for environmental/industrial accidents

We focus in this paper on the effects of court errors on the optimal sharing of liability between firms and financiers, as an environmental policy instrument. Using a structural model of the interactions between firms, financial institutions, governments and courts we show, through numerical simulations, the distortions in liability sharing between firms and financiers that the imperfect implementation of government policies implies. We consider in particular the role played by the efficiency of the courts in jointly avoiding Type I (finding an innocent firm guilty of inappropriate care) and Type II (finding a guilty firm not guilty of inappropriate care) errors. This role is considered in a context where liability sharing is already distorted (when compared with first best values) due not only to the courts’ own imperfect assessment of safety care levels exerted by firms but also to the presence of moral hazard and adverse selection in financial contracting. There is also not congruence of objectives between firms and financiers on the one hand and social welfare maximization on the other. Our results indicate that an increase in the efficiency of court system in avoiding errors raises safety care level, thereby reducing the probability of accident, and allowing the social welfare maximizing government to impose a lower liability [higher] share for firms [financiers] as well as a lower standard level of care.     

Why do firms join consortial research centers? An empirical examination of firm,industry and environmental antecedents

The purpose of this study was to test 10 hypotheses for why firms join research centers that are consortial in nature. We describe research centers with a formal arrangement for accommodating external membership as being consortial research centers (CRC). Although traditional analysis of why firms form collaborative research arrangements have tended to focus upon firm level variables, this study takes a broader view on antecedent factors. We derive hypotheses from resource dependence theory, market forces theory, and strategic behavior model explanations for such firm behavior. Panel data from 503 firms, in 104 industries from 1978 through 1996 were used to test the hypotheses. The decision to join a CRC was modeled using multivariate binomial probit analysis. Results showed that industry competitiveness, technological opportunities and the production of complementary innovations are all positively related to propensity to join a CRC. Slack resources are related to joining propensity in a non-linear fashion.     

The Impact of Regulations on Firms: A Case Study of the Biotech Industry*

Drawing on semi‐structured interviews carried out with founders, managers, and senior scientists in start‐up biotech firms, this paper illustrates that the socio‐legal literature's characterization of small firms as less compliance oriented is too neat. Small firms do not necessarily have a limited knowledge and comprehension of the law. Nor do they necessarily have low levels of motivation to improve and maintain health and safety standards. In fact, the opposite may be true. Small firms may approach the regulatory ideal where the routines, procedures, and precautionary measures prescribed by regulations permeate the organizations.     

The effect of Japanese corporate acquisition on the us military-industrial base

This paper utilizes a technique called the analysis of competing hypotheses to study Japanese acquisitions that involve majority interests in US firms. Findings show that there seem to be strategic trends in the Japanese procurement process, and that there are four domestic product groups that appear to be particularly vulnerable. Such foreign control of American commercial enterprises may well be a threat to the economy and national security.     

Slack resources,exploratory and exploitative innovation and the performance of small technology-based firms at incubators

This paper aims to contribute (1) to the understanding about how small technology-based firms in spite of being constrained by limited resources, can still perform exploratory and exploitative innovation and (2) to extend knowledge about the role of slack resources in the context of small technology-based firms in facilitating those innovation activities. Herein, we focus on two types of slack resources: internal slack, resources that are available within the firms and external slack, additional resources that are gathered through the facilitation of external sources such as business incubators. Using a sample of 141 small technology-based firms located at incubators, this study combined two streams of research on incubator studies and innovation to construct some hypotheses examining the role of slack resources and innovation activities in enhancing the performance of small technology-based firms operating in incubator setting. Our findings demonstrate that neither slack resources nor innovation activities alone explain firm performance. Instead, small technology-based firms fit their innovation activities to their slack resources. While the relationship between internal slack and performance is mediated by exploitative innovation, exploratory innovation plays a role as a mediator for the relationship between external slack and performance.     

The M&;A dynamics of European science-based entrepreneurial firms

This paper investigates the dynamics of a sample of 131 science-based entrepreneurial firms (SBEFs), selected out of 500 innovative small and medium enterprises (SMEs) that went public in Europe in the period 1995–2003. We found that the market for control of these firms was active, with most of our sample firms being acquired after their Initial Public Offering (IPO), usually by companies operating within the same industry. Floated SBEFs showed a higher propensity to be acquired than independent firms; this distinction persisted after controlling for intellectual capital and other possible determinants. While university affiliation enhanced attractiveness in the eyes of other companies, it negatively affected the propensity for acquisition. We argue that university-based firms do contribute to the technology transfer process, as evidenced by the widespread interest of the business world in investing in these firms. The creation of a SBEF is a first step in the process of commercial exploitation of university-research, while the subsequent step of going public is a sign of the success of this entrepreneurial venture. The take-over of SBEFs may be a final outcome of the process of knowledge diffusion.     

Proximity as a Resource Base for Competitive Advantage: University–Industry Links for Technology Transfer

One of the important arguments in favor of Science Parks is the claimed networking benefit. A total of 273 new technology-based firms (NTBFs) were surveyed. The assessing of academic knowledge and expertise by businesses located on site is a key principle of Science Parks. Science Park NTBFs stand out as a special group of small firms in terms of performance (Growth: sales and employment). The arguments presented in this paper recognize the complex nature of co-operative resources. The level of interaction in the innovation process between firms located on Science Parks and local universities is generally low, but it is higher than the level of interaction exhibited by firms that are not Science Park firms. The underlying premise of our research propositions (P1 and P2) is that the NTBF-specific co-operative resources will provide the firm with a competitive advantage. This paper, building on the resource-based theory and empirical evidence, argues that NTBFs working with universities that have more proximity achieve certain advantages. Proximity between NTBFs and universities promote the exchange of ideas through both formal and informal networks. Statistically significant differences between Science Park NTBFs and off-Park NTBFs were recorded with regard to product development in the last three years.     

Market structures,political surroundings,and merger remedies: an empirical investigation of the EC’s decisions

This paper aims to build and empirically evaluate a discrete choice model of merger remedies as a basis for policy analysis. The database consists of 229 merger cases accepted in Phase I or Phase II of the European merger process between 1990 and 2005. We focus on the following question: Which merging firms’ characteristics lead the European Commission to decide whether to require conditional acceptance? Although a lot of empirical studies have been carried out these last years, ours is distinguished by at least two original features. First, we explore determinant factors of the Commission’s decisions with a neural network model differentiating cases accepted with or without remedies (either structural or behavioral). Secondly, we implement three multinomial logit models. We find that variables related to high market power lead more frequently to a remedy outcome, no matter the phase. Innovative industries such as energy, transportation and communications positively affect the probability of a behavioral remedy. Lastly, former Competition Commissioner Mario Monti’s policy appears to be pro-remedy, i.e. seeking concessions from merging parties.     

BUILDING AN ADMINISTRATIVE COURT AS A GOAL OF ADMINISTRATIVE JUDICIAL SYSTEM REFORM

With rapid social and economic development, nowadays there are an increasing number of social conflicts, especially administrative disputes between the government and individual citizens. However, many of the conflicts cannot be effectively solved through administrative litigation, which continuously leads to a high rate of appeals and complaints, making it ever more difficult to resolve administrative disputes. Often susceptible to interference from local party committees and governments, courts face difficulties to accept complaints, conduct trials, make decisions and enforce judgments, which make courts dysfunctional in supervising administrative organs. All the issues above are caused by problems in the court administration system. The control of the court’s personnel, expenses and property is decentralized, with courts divided by administrative regions, income provided through local finance and personnel controlled by local party committees. However, administrative organs are defendants in administrative litigations and courts are to review the legality of administrative acts. It is neither realistic nor logical to have courts in the de facto control of local governments to supervise the governments. Therefore, it is of necessity to build a vertical administrative court system subordinated to the Supreme People’s Court. This vertical system shall free courts from the control of local governments, overcome localization of the judiciary, and would be able to effectively solve administrative conflicts and ensure that government decisions/orders are smoothly carried out.     

Firm innovation in policy-driven parks and spontaneous clusters: the smaller firm the better?

Mixed evidence has been found regarding how locating in a cluster or a park affects firms?? performance. This paper investigates how locating in different types of clusters and parks interacted by firm size or in-house R&D capability affects a firm??s innovation. Empirically testing the research hypotheses by the data of 165 Taiwan??s manufacturing firms in the information and communication technology sector and taking policy-driven parks (e.g., science parks and industrial parks) and spontaneously clusters as examples, we find that in emerging economies, firms with inferior in-house R&D capability gain more innovation benefits by locating in a science park or a spontaneous cluster while smaller firms gain more innovation benefits by locating in an industry park or a spontaneous cluster. Moreover, our findings also suggest that locating in a science park, smaller firms benefit more than larger firms in terms of innovation performance whereas larger firms benefit more than smaller firms in terms of market performance. The findings suggest that in emerging economies, compared to larger firms, smaller firms are less influenced by negative spillover effect when locating in clusters or parks.     

Deterring Sex Sales to International Tourists: A Case Study of Thailand,South Korea,and the Philippines

In developing areas, large-scale international tourism often offers a market for illegal goods and services. Unable to directly control sex sales, governments may decide to discourage prostitution by making the industry less profitable. Sex is sold to international tourists in Thailand, South Korea, and the Philippines through the oligopolistic hotel/travel agency and competitive streetwalker markets. Applying legal sanctions prices change and sales decrease in both markets. The per unit cost of law enforcement is borne more heavily by customers on the street and by firms in the hotel/agency market owing to the markets' respective inelastic and elastic demand segments. If enforcement against sellers in both markets represents a fixed cost, initially sales will not decline, but firms will experience diminishing profits. The optimum short- and long-run effects result from applying enforcement against firms in the hotel/agency market.     

湖南法治政府建设实践的经验启示

2008年以来，湖南省出台了一系列政策法规文件，构筑形成了全面建设法治政府“一纲要一规划两规定六办法”的政策法规格局，并在具体实践中真抓实干、敢为人先，取得显著实效，引起全国上下广泛关注，形成中国法治政府建设所谓的“湖南模式”。“法治湖南”实践正在以其独特的内容和魅力促动着中国法治政府建设全面起航。通过探讨促动“法治湖南”建设实践动因，详细分析限权和服务为轴的湖南法治政府建设实践：一方面通过程序规控行政权力，达致“正确地做事”之目的，另一方面通过规定政府服务内容，追求“做正确的事”之目标。在此基础上，解析了湖南法治政府建设实践的经验启示。     

The Puzzle of Firm Performance in China: An Institutional Explanation

China has achieved phenomenal economic growth in an institutional environment that defies conventional economic rationales. Researchers offer different theories to explain this puzzle. But so far, due to the lack of data, little effort has been made to test these theories at the firm level. We develop a framework of endogenous institutional change to explain this puzzle and we test our framework with firm-level data. We argue that the decentralization from the central to the local governments and from government to firms are the driving forces behind China's institutional changes that have shaped the roles of government and market, which in turn significantly affect firm performance. We then submit our theory to a vigorous empirical test using data from China's industrial census, covering all 2000 counties and over 500 manufacturing industries. The test shows that two results of decentralization, the involvement of low-level governments in business and the process of privatization, positively affect firm performance.     

我国公务员培训现状、问题与对策

对公务员进行培训,既有利于公务员个体德才素质全面提升,也有利于促进整个社会协调和谐发展。自公务员制度正式推行以来,我国公务员培训工作取得了较大的成就,但毕竟由于时间很短,与发达国家相比在许多方面还存在较大的差距,因此,我们必须积极吸收和借鉴西方发达国家的经验,结合我国实际寻找对策,推进我国公务员培训制度逐步走向法制化和科学化。     

Is urine a suitable material for the preliminary screening of drugs in autopsy cases?

This paper reports a survey of drug screening in the urine specimens of 45 autopsy cases whose livers contained medicinal substances. The extractions were carried out by a solid phase/liquid technique and the analyses by thin-layer chromatography. Nine compounds out of 43 actually present in the liver were not detectable in the urine; eight cases with high drug concentrations in the liver and also in the blood would have evaded the intoxication suspicion had the urine been used as the only material for the chemical survey. On the basis of these data we advocate that the preliminary drug screening of medical-examiner cases not be carried out on urine alone.