The Economics of Science and Technology

This paper provides a non-technical, accessible introduction to various topics in the burgeoning literature on the economics of science and technology. This is an interdisciplinary literature, drawing on the work of scholars in the fields of economics, public policy, sociology and management. The aim of this paper is to foster a deeper appreciation of the economic importance of science and technology issues. We also hope to stimulate additional research on these topics.     

Theories and fear of gang crime among Whites and Latinos: A replication and extension of prior research

Fear of gang crime was used as a key justification for harsh punishment policies recently, and gangs were known to be associated with more disorder and crime. There was little systematic evidence about the presence, causes, or consequences of gang-related fear for the public. Prior studies showed that in some people's minds, racial and ethnic diversity was blamed for disorder, community decline, and crime. Using latent variable structural equation models, this article tests this idea and examines the causal relationships among perceived diversity, disorder, decline, and gang fear among Orange County, California residents. Results indicated that for Whites, diversity concerns increased perceptions of disorder, which increased concern about decline and therefore gang fear. For Latinos, concern about diversity increased perceptions of disorder and consequently gang fear, but community concern (decline) was unrelated to gang fear.     

When Is Science Used in Science Policy? Examining the Importance of Scientific and Technical Information in National Research Council Reports

A frequent lament among researchers is that public policy makers should pay more attention to scientific and technical information (STI). If there is any single area where one might expect STI to be used in public policy making and agenda setting it is in science and technology policy. Many of the policy makers in science and technology policy are themselves scientists or researchers and presumably would prove especially receptive to STI. However, STI is only one of many types of information used in policy making and policy actors often differ in the extent to which they view STI as credible, particularly compared to other types of potentially policy‐relevant information. Research on credibility (the believability of information, information types, and media) has shown variance and policy makers’ “credibility maps.” Thus, some policy makers have preference for formal information generally and STI specifically, but others privilege raw data, personal experience, authority, history and anecdote, analogical reasoning, or conformance to ideology, to name just a few of the information choices. Here, we build on the current researchers’ previous bibliometrics‐based work and use data from 41 semi‐structured elite interviews with National Research Council (NRC) executives and staff and NRC committee members concerning the use of STI in reports issued by the NRC. Findings show that the use of STI in NRC reports varies according to the nature of the inquiry and the sponsor. Information used in the reports is based on not only the assessed credibility of information but also its perceived direct relevance and the availability of STI as compared to other types of information. In general, the amount of STI in the NRC reports tends to have modest effects on the likelihood that reports will be used in policy making or by the mass media. More important factors include the timing of the report with respect to political agendas, the party requesting the report, and the enacted roles of NRC staff members and committee chairs.     

European companies between globalization and localization: a comparison of internationalization strategies of British and German MNCs

This paper assesses the extent of which British and German multinational companies have moved on a continuum between nationally embedded MNCs and globally oriented TNCs. Degree of national embeddedness and implantation into national economic and policy networks is held to influence the internationalization strategy of companies - the degree of FDI undertaken, the kind of competitive advantage they seek to derive from it and the way in which they combine nationally based and globally focused activities. It is shown that the different national business systems of Britain and Germany influence the responses of MNCs in their management of the tensions between pressures for globalization and established, nationally shaped business strategies and patterns of activities. In both cases, however, exaggerated claims about globalization of company activities and assets are shown to be misguided. But the paper also recognizes that some more globalized structures and strategies have begun to emerge in the second half of the 1990s. The study is based on a small number of case studies of British and German companies, complemented by official statistics and secondary data.     

In defence of FTAs: from purity to pragmatism in East Asia

This paper discusses the shift in East Asia from a focus on multilateral trade liberalization through the WTO to a pragmatic approach since 1999 favouring bilateral and regional FTAs while continuing to support the WTO system. It is argued that such FTAs are a second-best option compared to WTO agreements. However, while economists may seek the ideal solution, governments will focus on the politically attainable, especially as new multilateral agreements require lengthy negotiations beyond the life span of governments. As the WTO negotiating process has become bogged down, even once sceptical governments in East Asia are turning to FTAs. It is contended that such FTAs could form a lattice network within and across regions. In this context, the paper discusses the underlying security rationale for the conclusion of FTAs, highlighting the nexus between security interests and international economic policy in East Asia.