Tax incentives on research and development (R&D) are an important and widely used policyinstrument to elevate business enterprise expenditure on R&D (BERD). In times of economicdistress, firms tend to reduce their R&D investments, although it is crucial for long-termeconomic growth to keep those at a stable level. To evaluate the suitability for such policygoals, this paper investigates the relationship between the pre-existing level of R&D taxincentives and BERD during times of economic crisis.Country-level data from the OECD member states is used to investigate the mentionedrelationship for three times of economic distress: the early 2000s recession, the GreatRecession, and the European sovereign debt crisis. Separate cross-sectional data sets arecreated and analysed with a linear regression approach. The results show a significant andpositive relationship only for the early 2000s recession period and thereby do not provide clearevidence of an increased BERD resilience as result of higher pre-existing tax incentives.Thereby, these findings indicate the need for different policy measures to be applied for anautomatic or short-term stabilization of BERD in times of economic distress.

京都大学 / 0048 / 新制・課程博士 / 博士(経済学) / 甲第20869号 / 経博第564号 / 新制||経||283(附属図書館) / 京都大学大学院経済学研究科経済学専攻 / (主査)教授 照山 博司, 教授 神事 直人, 教授 柴田 章久 / 学位規則第4条第1項該当 / Doctor of Economics / Kyoto University / DGAM

This dissertation investigates the impact that a duopoly of a multinational firm and local firm has on a closed economy as they engage in Bertrand competition involving quality and price. It answers the question: Does helping a minor firm reduce welfare? Using a different framework than the existing literature, I examine the following: 1. The welfare effect of a reduction in the R\&D cost parameter induced by ``help'' from the government to one of the firms within a closed economy. 2. The effects of government policy instruments (taxes or subsidies) on welfare considering different ownership of the firms and trade pattern - closed economy and export-oriented economy as government institutes a unilateral policy, discriminatory policy, or non-discriminatory policy. 3. How marginal cost of production of the local firm affects welfare within a closed economy when all consumers are either served or partially-served. In chapter 1, we provide a review of past literature that have studied the endogenous choice of quality by firms and describe how this dissertation is organized. In chapter 2, we examine effect on national welfare from competition in quality between a multinational firm and a local firm operating in a vertically differentiated oligopolistic industry given their strategic use of R\&D costs without any possibility of spillover effects. The model assumes that the multinational firm produces high quality product and the local firm produces low quality product. Both firms have zero marginal production cost. Assuming a closed-economy, we determine the effect of a change in the local firm's R\&D cost parameter on the endogenous variables (prices and qualities) as well as national welfare. We found that a reduction in the cost parameter of the local firm do increase national welfare. Chapter 3 extends the work of Chapter 2. It investigates the incentives to a government for instituting strategic trade policy (unilateral, discriminatory or non-discriminatory) mechanism that would induce R\&D within the duopoly of a multinational and local firms and thereby promote national welfare, under varying assumptions with respect to the ownership structure of the firms and their trade patterns. It determines which policy mechanism would be socially optimal to strategically affect the quality of the target firm (local). We find under an open-economy situation when government policy is unilateral, the optimal policy tool to pursue is a subsidy for the local firm. When the economy is partially-closed, it is optimal for the government to tax the local firm. Besides, under a discriminatory policy mechanism, it is best for government to subsidize the local firm and tax the foreign firm when both export to a third country. However, if both sell to a third country, but profit is retained in the domestic economy, it becomes optimal for the government to tax the local firm. Under a non-discriminatory policy by government when the firms operate within an open-economy, the optimal tool is a tax policy for government that affects both firms. Moreover, when the firms operate within a partially closed-economy, the optimal policy is also a tax policy on both firms. Whereas, given a non-discriminatory policy under a closed-economy framework, it is optimal for the government to subsidize the firms. As a result, these mechanisms by government do promote social welfare as well as correct any distortion that might result into making the multinational firm having a significant market power within the industry. In Chapter 4, we relax the assumption of Chapter 2 that the firms have zero production cost. The duopoly is considered to operate under the condition that one of the firms (local firm) has a production cost disadvantage. The firms are assumed to served the entire market. Hence, the firms compete within a fully covered market scenario. Considering a variable unit (constant marginal) cost of production of the local firm, we determine the effect of an increase in production cost of the local firm on national (total) welfare. We find that within a closed-economy, due to strategic substitutability of the products of both firms, an increase in the marginal cost of production by the local firm would bring about reduction in national social welfare. Chapter 5 continues our welfare analysis. It assumes the firms have asymmetric production costs. The cost of production depends on investment in R\&D to produce an output of quality, $q_i$. Now, we do not associate the output quality to a specific firm in the beginning of our analysis. Notwithstanding, we assume the firms are required to meet a minimum quality standard in the industry. Then, we seek to find the effect of the marginal cost of production of the local firm on national welfare. We find unlike previous chapters, an increase in marginal cost of production by the local firm results into increase benefits to consumers. Hence, national social welfare is improved (positive).

The importance of product design has been getting attention in the past decade from scholars and practitioners. Design plays a critical role in firms’ product development and business strategies. In recent years, scholars began to see design innovation as another vital innovation element of a new product. A new product should encompass at least two innovation elements: technology innovation and design innovation. While technology points to the function of a product, design points to the form of a product. Despite the advocacy of scholarly examination of design innovation, there are few studies of design innovation. In this dissertation, two empirical studies have been conducted to examine the outcome of design innovation and the antecedents of design activities, respectively. Study 1 examines the effect of design innovation (as well as technology and service innovation) on new product performance. Additionally, the study examines the roles of marketing innovation and process innovation in mediating the relationships between these innovation activities and new product performance. Study 2 examines how firms’ absorptive capacity, competitive responsiveness, and product development resources drive design and R&D activities. Design and R&D activities typically lead to the introduction of design and technology innovation. Regarding the findings from this dissertation, the first study shows that design, technology, and service innovation (which, argued by this study, are the three main innovation elements of a new product) all contribute to new product performance. Additionally, marketing innovation and process innovation are found to mediate the relationship between these innovation elements and performance. The second study shows that a firm’s competitor responsiveness, absorptive capacity (captured by “institutional sources” and “market sources of information”), and product development resources (captured by “cross-functional design team”, “design or information control technologies”, and “concurrent engineering”) are positively related to firms’ design and R&D activities. / Thesis / Doctor of Business Administration (DBA) / Design plays a critical role in firms’ product development and business strategies. Traditionally, technology innovation has been the focus of new product development. In recent years, scholars have begun to see design innovation as another vital innovation element of a new product. In this dissertation, two empirical studies have been conducted to examine the outcome of design innovation and the antecedents of design activities, respectively. There are two key goals of this dissertation. The first goal is to understand the outcome of design innovation and what other factors jointly contribute to the outcome. The second goal is to understand what strategies that firms adopt lead to design activities. Answers to the first question show the performance implication of design innovation and the factors that drive the performance. Meanwhile, answers to the second question shed light on the firm strategies that drive design activities, which may lead to the introduction of design innovation. Empirical studies that tackle these questions are sparse.

A significant proportion of construction and demolition (C&D) waste is encompassed within the broader category of global waste. The handling of C&D waste is subject to the influence of a tripartite of environmental, social, and economic factors. An extensive comprehension of C&D waste management can be attained by examining the construction industry, waste management, transportation, and non-governmental organisations (NGOs). The escalating aggregate demand and landfill practices significantly threaten developing nations' natural resources, despite the national government's regulatory measures. The present study employed a qualitative research approach and a multi-level perspective (MLP) framework to investigate the various actors, factors, and levels that impact the management of C&D waste. The present analysis relates independently to investigating lock-in determinants, encompassing exogenous and endogenous pressures and socio-technical transitions. Bengaluru's management of C&D waste encompasses a diverse array of stakeholders, including real estate organizations, urban development agencies, construction firms, both formal and informal markets, a solitary C&D processing plant situated at the periphery of the city, unapproved landfills located in abandoned stone quarries, local transportation providers, governance bodies, and low-carbon building methodologies. Furthermore, it is imperative to note that there exist significant deficiencies in the execution of C&D waste management by established protocols, as well as their enforcement. This is compounded by an acute shortage of facilities for the collection and disposal of such waste, insufficient vehicular resources at the disposal of the Bruhat Bengaluru Mahanagara Palike (BBMP), limited participation from stakeholders, negative attitudes towards the effective use of recycled materials and the repurposing of building components, a lack of incentivisation and punitive measures, inadequate awareness among proprietors and constructors of private edifices, and the indiscriminate dumping of C&D waste, which has led to the obstruction of commuting and communal well being. The effects of landfills on wildlife, such as avian migration and urban inundation, have prompted a transition towards more ecologically sound management of C&D waste in Bengaluru. Formulating sustainable strategies for managing C&D waste in Bengaluru is encouraged to incorporate socio-economic and environmental factors, business models, and governmental cooperation. The importance of sharing information, the power of nudging people to alter their habits, and the value of considering new approaches to building are also highlighted.

There is a general consensus in the literature that carbon capture and storage (CCS), a technology that controls CO2 emissions from fossil fuel power plants, figures to be a critical technology to reduce CO2 emissions to CO2 concentration stabilization levels prescribed in the literature. We completed three projects that advance the understanding of how technical change in carbon capture affects both near-future costs of CCS and the economy in the long term. First, we conducted a literature review of near-future capture cost estimates in order to get an idea of how expensive carbon capture will be in the near-future. The literature indicates that pre-combustion capture is the least expensive carbon capture technology because its combustion process best facilitates carbon capture. Second, we explored the limits of incremental technical change in each near-future capture technology using a performance-cost model. The results of the sensitivity analysis showed that pre-combustion capture could be the least expensive capture technology after incremental technical change has occurred. Third, we used an integrated assessment model (IAM) to investigate how rapid incremental and breakthrough technical change in carbon capture could impact the electric energy market, total CO2 abatement cost and CO2 price over time. We modeled breakthrough technical change using data from a paper in the literature that provides cost and performance estimates for a radical carbon capture technology still in the early stages of research and development (R&D) (Baker, Chon, & Keisler, 2009). CCS dominates electricity market share over time given a chemical looping breakthrough.

In 2008, the State of Florida established a recycling goal of 75% to be achieved by 2020. In response to the Florida goal Orange County (OC), Florida has made the development and implementation of an efficient strategy for landfill diversion of its solid waste a top priority. The Florida Department of Environmental Protection (FDEP) estimated that 23 % of municipal solid waste was generated by construction and demolition (C&D) activities in 2009, with only 30 percent of C&D debris being recycled. Therefore, OC decided to create a solid waste integrated resource plan (SWIRP) initially focused on the recovery and recycling of C&D materials (2010). For SWIRP development, OC decision makers need the best available data regarding C&D debris generation and composition and an understanding of the potential markets available for recycled materials. In this investigation debris generation was estimated over the period of 2001 to 2009 for the largest single governing body within OC, unincorporated OC (UOC), representing 65 percent of county population. The debris generation model was constructed for years 2001-2010 using area values for C&D activities in six sectors obtained from building permits and debris generation multipliers obtained from literature values. The benefit of the model is that as building permit information is received, debris generation estimations can also be expediently updated. Material composition fractions obtained from waste characterization studies of landfills in the Central Florida area were applied to the debris generation model resulting in a material iv composition for all sectors for years 2001-2010. The material composition of the debris stream was found to be, on average, concrete (53%) drywall (20%), wood (12%), a miscellaneous fraction (8%), asphalt roofing material (4%), metal (2%), cardboard (1%) and carpet and padding (1%). A market analysis was performed for concrete, drywall, wood, asphalt roofing shingles and residual screened materials (RSM). It was found that statewide, markets existed for 100 percent of the materials studied and could replace significant amounts of natural material feedstocks, but that the development of more local markets was vital to meeting OC’s diversion goal to minimize the cost of transporting recyclables.

Social-emotional learning (SEL) is an essential area of development for adolescents. The Collaborative for Academic, Social, and Emotional Learning (CASEL) presents a well-researched, broad, conceptual framework for systemic social and emotional learning (CASEL, 2020), which has been used to guide the development and implementation of the proposed pilot. It identifies five competencies of SEL: self-awareness, self-management, social awareness, relationships skills, and responsible decision-making. The CASEL framework also emphasizes the importance of coordinating SEL across key settings and contexts—classroom, schools, families, and communities. Lack of SEL can have suboptimal effects during adolescence and later in life, consequently, impacting occupational engagement. A literature review on SEL found that appropriate SEL programming results in positive outcomes, such as improved school-related attitudes and behaviors, increased academic performance, decreased negative behaviors, and less reports of emotional distress (Durlak et al., 2010, 2011). Additionally, various school-related professions address SEL, however, there is limited evidence of occupational therapy practitioners’ involvement in the literature. Thus, adolescents’ occupational needs relating to SEL may not be being addressed. Play’s significance in developing adolescents’ skills is rooted in SEL. Play “develop[s] physical coordination, emotional maturity, social skills to interact with other children, and self-confidence to try new experiences and explore new environments” (AOTA, 2012, p.1). Dungeons & Dragons® (D&D) is a popular table-top role-playing game, which draws interest from many adolescents and adults. A second literature review found that play interventions for adolescents, and research using D&D appears to be limited. Role for SEL is a play-based intervention group using D&D (5th ed.) developed to promote SEL. In the pilot program, three to five middle-school students will participate in 90-minute after-school sessions, for 10 weeks. Participants will learn how to play D&D, receive explicit instruction on two SEL competencies (self-management and relationship skills) and engage in D&D scenarios and campaigns designed to support development in the relevant SEL areas. The author’s proposed pilot program has the potential to improve adolescents’ SEL and occupational engagement. This doctoral project discusses the case for the proposed pilot program, and presents a detailed overview of Role for SEL.

The dissertation consists of three chapters examining U.S. public firms' innovation and patenting activities and their relationship with patent policy and economic growth. In the first chapter, I empirically study the effect of patent publications on firm-level innovation and patenting. Previous works have studied the effect of patent monopoly rights and knowledge disclosure on innovations. The proposed chapter supplements these studies by analyzing the disincentive effect of patent publications on firm innovations through costly knowledge disclosure. Exploiting the American Inventors’ Protection Act of 1999 as a natural experiment that shortened the time it took for patents to get published, I show the negative effect of earlier patent publications on manufacturing firms' patenting and innovation activities. The benchmark analysis shows that the average decline of 10 months in patent publication lag resulted in 13 percentage points lower firm-level patent growth rate during 2001-2005. In the second chapter, I build an endogenous growth model with a patent system. By modeling patenting decisions endogenously, I also introduce patent protection and information disclosure mechanisms through patents. Traditional innovation and growth models assume that innovators patent whenever they innovate and consider patenting and innovating as the same. However, this assumption is no longer innocuous if patenting has an implicit cost to the innovator e.g., the cost of disclosing valuable information. Therefore, to analyze the impact of the patent system’s disclosure mechanism on firm innovation, one must at a minimum work with a model distinguishing between the two concepts. Using my model, I show that a higher patent disclosure policy reduces firm patenting intensity as firms strategically opt out of patenting. In the absence of patents, there is less knowledge diffusion in the economy, which leads to less industry competition and growth. The third chapter studies the effect of firms' ability to build on their previous innovation on firm growth. While innovating, firms can either develop fully novel exploratory ideas or exploit their existing ideas. Using firm patent data, I document that U.S. manufacturing firms' innovation became more exploitative and that their patent growth rate simultaneously declined after 2000. To rationalize these changes in firm innovation, I build a firm-level endogenous growth model with both initial exploratory and subsequent exploitative innovations. Estimating my model using 1990-2000 microdata, I show that a decline in the usefulness of exploratory innovations as a foundation for future exploitation can match a shift in the composition of innovation we saw over this period, resulting in a 0.8 percentage point decline in firm average growth and a 9% decline in firm market value post-2000.

The primary reason for mergers and acquisitions is to achieve synergy and establish competitive advantages. A firms’ innovation in form of intangible assets gets accumulated over time depending upon its R&D intensity. Such a strategic bundle of intangible assets that a firm possesses is an indicator of future synergies if the firm were to merge. The current study examines whether intangible intensive firms more likely to make acquisitions or are more likely to be acquired and how the market reacts to M&A deals involving intangible intensive acquirers and targets. We explore these issues with a sample of U.S. M&A deals over a period of 2001-2017. We find that intangible assets serve as one of the primary motives for the M&A and are the drivers of M&A activity in recent times. The results from the event study show that target firms’ intangible assets have a significant negative effect on target firms’ cumulative abnormal returns. Subsequently, we carry out further analyses to understand various drivers of market reaction to M&A deals. We find that, for target firms, the relation between target firms’ intangible assets and market reaction is positively influenced by the use of cash and negatively impacted when the target firm is from high-tech industry. For the acquiring firms, we find that the relation between acquirer firms’ intangible assets and market reaction is negatively impacted when the acquirer is from high-tech industry and positively impacted when a public target is acquired. It appears that market reactions to the acquisition of high intangible targets are primarily driven by investor skepticism about the prospects of the deal. Lastly, the study does not find any significant effect of (mis)valuation on M&A deals by intangible intensive firms.