Doctor of Philosophy / Department of Economics / Yang-Ming Chang / Innovation is development of new ideas that leads to better solutions to current problems. From an economic standpoint, innovation is the engine of economic growth. The appearance of innovation is not uniform in the market, and neither are its affects. The development of new products and technology is significant in any industry. As a result, understanding the path of progress within an industry is necessary to maximize the benefit from innovation. The focus of this research is to further understand the relationship between producers, consumers, and the environment, in the context of innovation. Three scenarios are evaluated. First, innovation evaluated in the context technology intensive industries with product differentiation. Using an optimal control approach with product differentiation and firm outlook we examine conditions that maximize social welfare. When firm(s) have the same discount rate regardless of market structure, a monopoly will develop more innovative products. However, it is shown that competition may increase innovation if firms alter their outlook in a duopoly market structure. Next, influence of consumers on producer adoption of clean technology is evaluated. A spatial model is developed to analyze welfare implications of environmental policies in a competitive market with production and consumption heterogeneity. Consumers with heterogeneous preferences choose between non-green and certified green products, while firms with heterogeneous production costs decide whether to engage in green production. In order for green products to be recognized by consumers, firms must join a green club. The number of green firms, environmental standard, and overall welfare under the market solution are all found to be socially sub-optimal. Finally, producer innovation in markets characterized by public policy due to emission concerns is evaluated. Using a dynamic approach, we derive a firm’s optimal R&D investment strategy to develop clean technology. Explicitly allowing for the cumulative nature of R&D shows that emissions per unit of output are lowest when the firms cooperate in R&D, and show that a profit-maximizing merged entity will never choose the most efficient investment strategy in clean technology, which has implications for emission tax policy and environmental innovation to improve overall welfare.

It is frequently argued that the high costs of clinical trials prior to the admission of new pharmaceuticals are stifling innovation. At the same time, regulation of the access to markets is often justified on the basis of consumers` inability to detect the true quality of a product. We examine these arguments from an information economic perspective by setting a framework where the incentives to invest in R&D are influenced by the information structure prevailing when the product is launched in the market at a later stage. In this setting, by changing the information structure, regulation (or the lack of) can thus indirectly affect R&D efforts. More formally, we construct a moral hazard - cum - adverse selection model in which a pharmaceutical firm exerts an unobservable effort towards developing an innovative (high quality) drug (moral hazard) and then announces the (unobservable) quality outcome to an uninformed regulator and/or consumers (adverse selection). We compare the outcomes in regard to innovation effort and expected welfare under two regimes: (i) regulation, where products undergo a clinical trial designed to ascertain product quality at the point of market access; and (ii) laissez-faire with free entry, where the revelation of quality is left to the market process. Results show that whether or not innovation is greater in the presence of entry regulation crucially depends on the efficacy of the trial in identifying (poor) quality, on the probability that unknown qualities are revealed in the market process, and on the preference and cost structure. The welfare ranking of the two regimes depends on the differential effort incentive and on the net welfare gain from implementing full information instantaneously. For example, in settings of vertical monopoly, vertical differentiation and horizontal differentiation with no variable cost of quality, entry regulation tends to be the preferred regime if the effort incentive under pooling is relatively low and profits do not count too much towards welfare. A complementary numerical Analysis shows how the outcomes vary with the market and cost structure. (authors' abstract) / Series: Department of Economics Working Paper Series

The purpose for this paper is to determine whether there is any direct connection between board composition and R&D investments of Swedish listed companies. A century ago, Sweden was among the poorest nations in Europe, yet today Sweden is 3rd among world leaders in innovation. Innovation is approximated as a good proxy measurement for R&D investments. R&D has been the primary source for innovation because of today’s nature of economies in which firms are challenged with competitive advantage. R&D investments have become very essential for every organization as well, yet there is no clear relationship between board composition and R&D investments. The researchers sought to confirm whether the effects of board composition are not only to monitor but also to provide resources since R&D spending requires appropriate forms of control systems and proper level of resources in the form of skill, experience and knowledge. The researchers obtained that the Swedish code of corporate governance is the main form of regulation and control mechanism that are mandatory for the boards of listed companies to adapt and comply with. In this study, the researchers integrated agency theory, resource dependence theory, and stakeholder theory and stewardship theory perspectives to explain the effects of board composition on R&D investments. The hypotheses were derived from these mentioned theories, tested from the sample data of 68 companies extracted from listed firms in Stockholm Stock Market. Board tenure, board interlock, independent directors, and ownership of shares, board size, age diversity and gender diversity were used as the influential factors for R&D investments. Additionally, firm size, ROA, firm age and leverage were adopted as moderating variables to test the effect of board membership composition against R&D spending. However, only board interlock came out to be negative and significantly correlated at 5% level with R&D investments and the remaining variables were detected to have negative low correlations with R&D investment, though no significant associations were found. Out of the control variables chosen only ROA obtained a significantly negative low correlation at 1% level. The epistemological and ontological choices for this study were positivism and objectivism with deductive approach. In order to examine if there is a relationship between board composition and R&D investment, the researchers employed multiple regression analysis. The researchers also identified a research gap since they did not find any evidence of a study that examines board composition in relation to R&D investments in Sweden. As indicated by the results of this study, only board interlock has effect on R&D spending. Therefore, there is need for further research on R&D investments by examining other forms of board composition characteristics such as education and professional experience. Both qualitative and quantitative studies are recommendable in this area. The authors concluded that the board characteristics do not directly matter for Swedish corporations to invest annually in R&D activities. This paper provides full support to stakeholders’ theory and stewardship theory while partially agrees with agency theory and resource dependence theory. Key words: Corporate governance, Research and Development (R&D), board tenure, board interlock, independent directors, ownership, board size, age diversity and gender diversity.

The positive contributions of entrepreneurship towards the economic development were already proved by the previous researchers. The main aim of this study was to analyse the determinants of entrepreneurial activity in the Nordic countries over the period of years 2004‑2013 to provide the supportive empirical analysis for the Nordic entrepreneurial policy makers. Data were obtained from the various databases and were formed into the panel dataset. Entrepreneurial activity was quantified by the two variables, rate of registered business activity and established business ownership rate. For each entrepreneurial activity, acting as the dependent variable, was estimated the set of econometric models following the econometric approach with the Fixed Effects Estimator. The results obtained for the both dependent variables did not substantially differ from each other and were generally in agreement with the results obtained by the previous scholars. The hypothesis stating the positive relationship between unemployment rate, GDP per capita and entrepreneurial activity, during the analysed period, were accepted. Also the negative impact of administrative barriers on entrepreneurial activity was confirmed. However, no statistically significant empirical support was obtained for the hypothesis assuming the positive relationship between R&D sector and entrepreneurial activity.

Thesis (MBA)--Stellenbosch University, 2005. / ENGLISH ABSTRACT: To compete in today’s ”new” economy, Centocor R&D SCH has to attain and maintain a competitive advantage within the global Pharma/biotech industry. With their drive to become a centre of excellence in the fields of fill-finish of biologics and particle characterization, it is important that an analysis of the status quo be done, and that efficient systems and structures are implemented to achieve world class performance. In this project, the approach to business excellence is discussed. Business excellence is more than a simple accumulation of a range of best practices. It can only be achieved by implementing a structured approach towards business performance. This begins with an internal self-assessment; as well as an assessment of the customer/partner needs: these of which are incorporated into the organization’s policies and strategies. Their perceptions are evaluated since these “quality chains” are what ultimately drive a business. The organization must align its culture, processes, inputs, and capabilities with the vision, goals and strategy; and promote and display a mind-set for innovation, and continuous improvement. In this way, the desired business results may be achieved. This is all driven by leadership; and a quality and performance culture; and provides an opportunity to view the organization holistically. The developed model for Centocor R&D SCH is a framework for measuring their business excellence towards achieving performance excellence, and from there a well-paved route for developing the centre of excellence. It is developed on the basis of the European Foundation for Quality Management Model as well as that of the global J&J Process Excellence Competitive Assessment Model; and is supported by the criteria that support those. Strengths are identified, and areas of improvement are viewed as opportunities where the teams can improve on to ensure leadership and excellence in those arenas. / AFRIKAANSE OPSOMMING: Om in vandag se “nuwe” ekonomie mededinge te kan wees, moet Centocor R&D SCH ‘n mededingende voordeel in die globale farmakologiese/biotegnologie industrieë bereik en handhaaf. Met die dryfveer om ‘n sentrum van uitnemendheid in die velde van lyofilisasie and partikel karakterisasie te word, is dit belangrik dat ‘n ontleding oor die status quo gedoen word, en dat doeltreffende stelsels en strukture geïmplementeer word om wereldklas prestasies te behaal. In hierdie projek word die benadering om tot sake-uitnemendheid te vorder, bespreek. Sake-uitnemendheid is meer as net ‘n eenvoudige akkumulaise van ‘n reeks beste praktyke. Dit kan slegs bereik word deur die implementering van ‘n gestruktureerde benadering tot sake resultate. Hierdie proses begin met ‘n interne self-ondersoek, asook ‘n beoordeling van die behoeftes van kliënte en vennote: dit wat in die organisasie se se beleide en strategieë geïnkorporeer is. Hulle persepsies word ge-evalueer want dit is juis hierdie waardekettings wat uiteindelik die sake-onderneming voortstu. Die organisasie moet sy kultuur, prosesse, insette en vermoeëns met die visie, doelwitte en strategie belyn; en ‘n ingesteldheid op innovasie en deurlopende verbetering toon en uitbou. Op so ‘n manier kan die gewensde sake resultate behaal word. Dit word alles beheers deur leierskap en ‘n kultuur van kwaliteit en prestasie, en skep die geleentheid om die organisasie holistoes te benader. Die model wat vir Centocor R&D SCH ontwikkel is, is ‘n raamwerk waarmee hulle hul sake-uitnemendheid kan meet, met die oog om uitmuntende prestasie te lewer, en om van daar af tot ‘n sentrum van uitnemendheid te ontwikkel. Die model is gebasser op die European Foundation for Quality Management Model asook die globale J&J Process Excellence Competitive Assessment Model, en word gedar deur die criteria van daardie modelle. Sterkpunte word geïdentifiseer, en areas vir ontwikkeling word gesien as geleenthede vir die spanne om te verbeter en na leierskap en uitnemendheid in daardie gebied te streef.

Cette recherche a eu pour but principal de montrer, à travers l’exemple de l’industrie informatique dans les années 90, que la stratégie de partenariat est aujourd’hui devenue un outil essentiel pour permettre aux entreprises à la tête d’une industrie à forte innovation technologique, confrontée à des changements structurels importants, et en particulier à la désintégration menant au leadership technologique partagé, de maintenir leur position dominante. Les quatre parties du travail constituent une suite logique d’étapes contribuant chacune à valider la thèse: la partie I porte sur la synthèse des principaux courants de la littérature scientifique sur les accords de collaboration et leur relation avec l’évolution des industries. Le but poursuivi dans la partie II est de décrire les changements intervenus dans l’industrie informatique au cours des années 90 et de formuler l’hypothèse d’une relation entre ces changements et la stratégie des firmes dans le domaine des accords de collaboration. Cette hypothèse est vérifiée empiriquement dans les parties III et IV à l’aide d’une banque de données sur les accords de collaboration. La partie III du travail présente les résultats descriptifs et la partie IV les résultats analytiques permettant de valider l’hypothèse.

Les PME françaises ont des difficultés à innover malgré les nombreux efforts des pouvoirs publics. Face à ce constat, les dispositifs d'aide aux PME ont cherché à se renouveler. Cette évolution se traduit par l'avènement d'une logique territoriale : il s'agit de faciliter l'innovation des PME à travers leur participation à des projets d'innovation localisés (PIL), logique développée par la politique des pôles de compétitivité. Des travaux ont analysé les faiblesses intrinsèques aux PME face à l'innovation, dans cette perspective les PME, de manière plus accentuée que les autres types d'organisations, sont incitées à collaborer pour innover afin de compenser leurs faiblesses en termes de ressources. Or, elles rencontrent de nombreuses difficultés dans ce processus. Cette recherche diffère de ces travaux en prenant pour point d'entrée de la réflexion non plus la PME en tant que telle, mais les dynamiques territoriales d'innovation (DTI). En effet, certaines dynamiques paraissent plus propices que d'autres à l'insertion des PME dans les PIL. Dans un premier temps nous cherchons à identifier les mécanismes qui sous-tendent les DTI, et dans un second temps nous étudions dans quelle mesure ces mécanismes facilitent ou freinent l'intégration des PME dans les PIL. Nous menons une étude de cas de type " grounded theory " (Glaser, 2004) sur deux clusters rassemblés au sein du pôle de compétitivité SCS " solutions communicantes sécurisées " : Marseille-Rousset-Gémenos, et Nice-Sophia Antipolis. Les résultats nous ont permis d'élaborer un " modèle théorique enraciné " explicatif de l'intégration des PME dans les dynamiques territoriales d'innovation. Ce modèle met en évidence un élément clé de l'intégration des PME dans les PIL : la présence de connaissances architecturales au niveau du cluster dans leurs trois dimensions relationnelle, technique et de marché.

<p>Over the last few decades trends such as globalization have sharpened up competition on the worldwide open market and in order to meet customers demand high level of technological and competitive uncertainties have increased the pressure of reducing R&D budgets, reduce innovation cycles and shorter time to market as a consequence of the rising competition and as a result, forced companies to source external knowledge. One way of doing this is by tapping external information and knowledge from universities.China is a country with a steady rapid growth on science and technology, but also with a progressively increasing R&D. Today they have the highest input level in the history and this is an opportunity for Western MNCs to establish collaborations in order to gain competitive advantages and create new technology. This study focuses on Industry-University collaborations in China for high technological companies and the process of finding knowledge and establishes networks at Chinese universities with the aim of establish Industry-University collaboration. Based on literature review and a qualitative study of Chinese universities, this thesis explores how a MNC can build a network of local universities connection in a fast growing market and use this network as a source of technology scouting.Over the last few decades trends such as globalization have sharpened up competition on the worldwide open market and in order to meet customers demand high level of technological and competitive uncertainties have increased the pressure of reducing R&D budgets, reduce innovation cycles and shorter time to market as a consequence of the rising competition and as a result, forced companies to source external knowledge. One way of doing this is by tapping external information and knowledge from universities.China is a country with a steady rapid growth on science and technology, but also with a progressively increasing R&D. Today they have the highest input level in the history and this is an opportunity for Western MNCs to establish collaborations in order to gain competitive advantages and create new technology. This study focuses on Industry-University collaborations in China for high technological companies and the process of finding knowledge and establishes networks at Chinese universities with the aim of establish Industry-University collaboration. Based on literature review and a qualitative study of Chinese universities, this thesis explores how a MNC can build a network of local universities connection in a fast growing market and use this network as a source of technology scouting.</p>

分析師扮演著公司與投資大眾之間的資訊中介者角色。本文旨在探討企業研發支出對分析師預測品質的影響，以及企業聘雇屬於產業專家會計師是否能夠緩和研發支出所引發的盈餘管理及代理問題，並進而改善分析師預測品質。本文援引Balsam (2003)之定義，計算會計師事務所於各產業之市場佔有率(auditor industry market share)。作為產業專家之代理變數。實證結果發現：(1)分析師離散性與整合分析師間私有利益的程度，與公司研發費用多寡有關。研發費用愈高的公司，分析師的離散程度及整合分析師間的私有利益也愈高；(2)透過產業專家查核，可以緩和研發費用支出所引發的盈餘操縱及代理問題，因此研究發展費用透過產業專家會計師查核，可以提升企業的會計盈餘資訊品質，以降低分析師盈餘預測的離散程度及降低分析師間整合私有資訊的利益。 / Analysts, as an informational intermediary, produce research reports that include forecasts of future earnings, thus fulfill an important role in capital market. The objective of this paper is to investigate the association between analyst forecast’s quality and firm’s R&D expenditure. Recent work has hypothesized that intangible assets affect analyst forecast’s quality. Extending this literature, we hypothesized that firm seek to reduce the degree of earnings’ management and agency’s cost from R&D expenditure by retaining high quality auditor firms, auditor industry expertise, and then increase analyst forecast’s quality. We measure auditor industry expertise based on Balsam (2003). We find that more R&D expenditure increases analyst forecast’s dispersion and enhances the benefits of aggregating individual analysts’ forecasts. Consistent with our hypothesis, we document that auditor industry expertise can mitigate the degree of earnings’ management and agency’s cost from R&D expenditure. We also find that firms retaining auditor industry expertise are more likely to enhance the accounting information quality, decrease analyst forecast’s dispersion, and eliminate the benefits of aggregating individual analysts’ forecasts.

La littérature économique défend l'existence d'aides publiques à la R&D privée du fait des nombreuses externalités et distorsions qui conduiraient les firmes à sous-investir en R&D. La multiplication de ces aides à différents échelons territoriaux et l'apparition d'éléments plus contrastés concernant leur justification soulignent un besoin accru d'analyse de ces politiques et de leurs conséquences territoriales. L'objet de cette thèse est d'apporter de nouveaux éléments concernant la rationalité, les effets et l'efficacité des aides financières à la R&D privée.Le premier chapitre propose une discussion de la rationalité des aides financières à la R&D à partir de la littérature sur la croissance endogène et ses raffinements incluant une dimension géographique. Le décalage entre les approchesthéoriques et les approches empiriques concernant les origines et l'ampleur du sous-investissement des firmes en R&D fait plutôt ressortir l'hypothèse d'un sous-investissement limité et spécifique.Les chapitres 2 et 3 fournissent des analyses théoriques des effets dynamiques et spatiaux d'une politique centralisée de subvention à la R&D. Les résultats montrent que cette politique renforce la croissance économique, réduit les inégalitésterritoriales et améliore le bien-être global. Les bienfaits de ce type de politique sont non seulement dépendants de l'hypothèse retenue concernant les rendements de la R&D mais surtout des options retenues concernant le financement et l'allocation géographique des subventions. Le chapitre 4 fournit une analyse empirique de la capacité des aides financièresà la R&D à stimuler l'investissement privé en R&D, à partir d'un panel de pays de l'OCDE. Les résultats indiquent une sensibilité plus forte des investissements privés en R&D aux aides indirectes (incitations fiscales) qu'aux aides directes (subventions) et suggèrent l'existence d'effets de substitution entre ces deux types d'aides.