The convex pay-off structure of executive stock options (ESO) incentivizes CEOs to increase their firm stock-return volatility, thereby increasing their wealth in option portfolio. In this paper, I address two research questions. I first test if this managerial incentive induces executives to take on more risky projects in R&D that increases stock- return volatility, hence, boosting their personal wealth. I derive vega to measure managerial incentive, and vega is a dollar change in ESO for a 0.01 change in stock- return volatility. I find that there is a positive and statistically significant relationship between vega and R&D investment, which suggests that managers whose wealth is closely tied to stock options are more incentivized to invest in risky R&D projects to increase their wealth and stock-return volatility. This result is statistically significant and robust after adjusting for inflation and controlling for firm and industry-fixed effects. With this finding, I proceed to test if managerial risk-taking incentive for R&D investments translate to future earnings. Lev and Sougiannis (1996) establish that future earnings is a function of both tangible and intangible assets, and R&D increases with firm’s subsequent earnings. Since R&D spending changes with managerial incentive, I test if the interactive variable of vega and R&D has a positive effect on firm’s future earnings. I find that managerial incentive for undertaking R&D investments has a positive and statistically significant association with future earnings under industry-fixed effects specifications. When controlling for firm-fixed effects, the result yielded similar results to that of industry-fixed effects, but with less statistical significance. Lastly, for robustness check, I run the regression with a balanced panel data of tenured-CEOs, who stay with the firm for five years. I find that the result is positive and statistically significant for industry-fixed effects. However, for firm-fixed effects, I only find statistical significance at year t+k (k=3). This suggests that the realization of R&D investment to future earnings is not prevalent throughout all years when R&D decisions are made by incentivized, long-standing CEOs.

This paper examines the effect of Business Tax to Value-Added Tax Reform (B2V Reform) of 2016 on the tax burden and research and development activities of High and New Technology Enterprises (HNTEs) in China. The initial hypothesis is that the B2V reform decreases tax burdens and encourages R&D activities of HNTEs. After analyzing the data from the Shanghai Stock Exchange High and New Technology Enterprise Index, however, it is found that the Reform does not significantly affect either the tax burdens or the R&D activities. Subsequent research reveals several explanations for the discrepancy, including firms’ labor-heavy capital structures for which labor costs do not qualify for value-added tax deductions as well as the issue of unused tax deductions from fixed asset purchases. This study informs policy makers how to revise and improve the reform to benefit high-tech companies with labor-intensive capital structures and others with significant upfront investment costs.

傳統Heckscher-Ohlin 理論認為要素稟賦之差異形成各國相對比較利益 貿易型態乃因而決定。綜觀國際經濟現況，技術創新對於國際貿易的影 響 益重大，本研究為納入此一論點，乃就傳統之H-O模型中，加入一R&D 部門試圖推衍一較完整之理論模型，可兼顧技術創新對國際貿易之影響與 一般衡之完整性：為顧及一般均衡，R&D 部門以預期值來處理，使得本文 得以用靜態分析來探討相關議題。在強調R&D 特性--外部性(外溢效果、 競爭效果)及不確定性之際，本研推導出納入研發部門時之一般均衡分析 ，並適時與傳統貿易理論相對照，觀察R&D 部門之影響程度。進而著重於 研發部門之討論，探究保護措施及他產業之特性對其規模之影響，以及各 國如何選定最適保護智慧財產權的策。

Le pilotage des projets d'innovation en rupture est une problématique qui traverse les organisations. Les outils d'évaluation devraient être considérablement différents des outils traditionnels de gestion de projet en raison de l'incertitude multidimensionnelle des activités. Toutefois, la littérature montre que les entreprises utilisent des méthodes classiques de suivi, même pour l'innovation de rupture. Basée sur une recherche intervention de trente mois à l'Amont de Renault, cette thèse analyse les insuffisances des outils traditionnels, et propose une approche nouvelle et des instruments adaptés. En partenariat avec les équipes R&D, la recherche fournit un diagnostic des pratiques traditionnelles d'évaluation des projets. Nous montrons deux limites majeures : a) les approches se concentrent sur l'évaluation économique et stratégique des projets, à l'exclusion des mécanismes d'engagement des acteurs internes, b) la plupart des méthodes d'évaluation traite les incertitudes de façon exogène. Ces regards conduisent à un modèle de pilotage combinant trois axes de valeur du projet : 1. l'usage conditionnel de l'analyse économique suivant les risques, les opportunités et la maturité de l'innovation ; 2. la qualification des enjeux stratégiques de l'innovation et du pilotage associé ; 3. le suivi de l'impact organisationnel et des mécanismes d'adhésion des partenaires internes. Si les points 1 et 2 s'appuient sur l'existant, le modèle d'adhésion évolutif a peu d'équivalent dans la littérature et les pratiques. Il explicite pourtant les évolutions différenciées des projets dans l'organisation. Le modèle a été mobilisé pour le processus de pilotage déployé en 2009 dans l'entreprise.

<p>During the last decades, legislators have tried to meet the goal of increased R&D in the pharmaceutical industry through an extension of the patent length. In parallel, an attempt to minimise ex post social costs has been made through the introduction of a shortened drug approval process for generic drugs as well as a so-called Bolar provision, giving generic producers earlier access to patented information. However, one can ask how efficient a patent extension possibility has been to meet the goal of increased R&D. Correspondingly, what effects on social costs can we expect from the introduction of an abbreviated approval process and the Bolar provision? These are questions that are dealt with in this thesis. I argue that the impact of the legislative changes have led to a decrease of ex post social cost. However, I will also show that this has lead to a detriment of ex ante R&D incentives and therefore a negative result on social welfare.</p>

<p>BACKGROUND: Project based structures has become more and more common in the organizations of today. As the project based structures are given a more central role in the organizations the interdependencies between the projects are getting more attention. These structures need a new type of control to meet the unique challenges that arise. The research</p><p>that has been done has been concentrated around the project form and the projects internal control, the area of multi-project management is therefore relatively unexplored. The few existing studies on the subject focus on projects in the construction industry why research in</p><p>more complex fields of business have been requested.</p><p>PURPOSE: The purpose of this thesis is to explore and analyze how knowledge intense multi-project organizations manage their project activities, and to determine how different organizational characteristics affect the need for management control systems.</p><p>METHODOLOGY: The empirical data has been collected through interviews with personnel in BT Products R&D, Gambro R&D and AstraZeneca Development. These organizations are all mature and project intense.</p><p>CONCLUSION: With an organization´s line of business follows a certain level of uncertainty and interdependencies between projects. Another important factor is the organization´s level of internal and external differentiation. These three factors together describe the characteristics of an organization, which forms the organization´s starting position. To handle the uncertainty of unpredicted events the organizations’ reflexes has to be quick enough; this is made possible through a project oriented organizational structure where the project managers have more authority than the function manager. Interdependencies between projects is handled through coordination, the level of coordination needed is dependent on the degree of interdependencies. Last but not least the organization has to handle the complexity that comes with the degree of internal and external differentiation. This is managed through the integration and extent of the management control systems. In the analysis chapter a model is presented that describes the relationship between the organization characteristics and management control systems.</p> / <p>BAKGRUND: I dagens organisationer är det allt vanligare att verksamheten bedrivs i projektform. När företag allt mer började ta till sig projektbaserade strukturer kom relationen mellan projekt i fokus. Denna arbetsform kräver en ny typ av styrning, detta för att hantera de beroenden som finns mellan projekten samt för att möta de samordningsproblem som kan uppstå. De senaste åren har projektstyrning blivit ett allt vanligare forskningsområde, multiprojektstyrning finns det dock inte mycket information om. Den forskning som väl genomförts har inriktats mot byggsektorn varför forskning på komplexare områden eftertysts.</p><p>SYFTE: Syftet med uppsatsen är att undersöka och analysera hur kunskapsintensiva multiprojektorganisationer hanterar sin projektverksamhet, samt att utröna hur olika organisationers egenskaper påverkar behovet av styrsystem.</p><p>GENOMFÖRANDE: Det empiriska materialet har samlats in genom intervjuer på BT Products R&D, Gambro R&D och AstraZeneca Development R&D. Samtliga organisationer är mogna och har en arbetsgång som baseras på projekt.</p><p>RESULTAT: Ett företags verksamhetsområde medför en viss grad av osäkerhet i den praktiska verksamheten, ytterligare en annan verksamhetsspecifik faktor är beroendegrad mellan projekt. Vidare är ett viktigt karaktärsdrag hos organisationer graden av differentiering. Dessa tre faktorer beskriver organisationens karaktäristika, med andra ord vilket utgångsläge organisationen har i sitt arbete. För att kunna hantera osäkerhet krävs att organisationen har tillräckligt bra reflexer för att möta oförutsedda händelser, detta löses genom att ge projekten mer auktoritet jämfört med funktionen. För att hantera beroenden krävs att verksamheten koordineras, vilken grad av koordinering som krävs beror på vilken grad av beroenden som finns representerat. Slutligen måste den komplexitet som differentiering ger hanteras, detta sker genom integrationen och omfattningen av styrsystemen. I uppsatsen presenteras avslutningsvis en modell som beskriver relationen mellan organisationen och dess styrning.</p>

<p>This master thesis explores the transfer of R&D activities from Western MNC’s to their Chinese subsidiaries and how companies can leverage key enablers to address main barriers in this process. The research project is conducted as a multiple-case study consisting of three case companies: the Danish pharmaceutical company Novo Nordisk, the Swiss/Swedish power and automation company ABB and the global food and beverage company Nestlé. The main rationale for conducting this study is that a significantly increasing level of foreign invested R&D is conducted in the Chinese environment with its increasingly important market. In order to preserve competitive advantages and secure global market penetration it could be necessary for other companies as well to undertake a similar process of transferring R&D.</p><p>The main barriers identified are the difficulty to find qualified employees in China, to train and retain the recruited employees and the language gaps that are present between the Western and the Chinese units. One key enabler applied to address these barriers is to organize activities at selected Chinese universities in order to attract skilled graduates. Utilizing expatriates and short-term traveling increases personal interaction between otherwise geographically distant employees together with providing training of increasing complexity are key enablers addressed to develop the Chinese employee’s knowledge. Language courses is the key enabler applied in order to decrease the language gaps, both Chinese courses for Westerners and English courses for Chinese.</p><p>In addition to identifying barriers and enablers and investigating their interrelatedness we propose a conceptual model for R&D transfer consisting of four elements to transfer together with implementation of the transferred knowledge at the receiving unit. In our view, the elements to transfer are physical objects, individual explicit knowledge, individual tacit knowledge and collective knowledge.</p> / This thesis won Sparbanksstiftelsen Kronan's award of 50000 SEK.

During the last decades, legislators have tried to meet the goal of increased R&amp;D in the pharmaceutical industry through an extension of the patent length. In parallel, an attempt to minimise ex post social costs has been made through the introduction of a shortened drug approval process for generic drugs as well as a so-called Bolar provision, giving generic producers earlier access to patented information. However, one can ask how efficient a patent extension possibility has been to meet the goal of increased R&amp;D. Correspondingly, what effects on social costs can we expect from the introduction of an abbreviated approval process and the Bolar provision? These are questions that are dealt with in this thesis. I argue that the impact of the legislative changes have led to a decrease of ex post social cost. However, I will also show that this has lead to a detriment of ex ante R&amp;D incentives and therefore a negative result on social welfare.

Since the dawn of the capitalist epoch, most advanced countries have seen more than a hundred fold change in their total products. This combined with a near five fold change in population size had brought a huge windfall of wealth in these countries. The main engine for this capitalist machine has been the accelaration of technical progress (Maddison, 1982). In this paper we investigate for the positive relationship between the existing stock of technology and accelaration of technical progress. We use the time series data from 1982-2002 to test our regression model. The model encapsulates annual patents turnover (proxy for acceleration of technical progress), patent stock (proxy for technological stock) and R&amp;D expenditures of four advanced countries as the primary variables, where the former acts as the dependent variable and the later two act as the determinant variables. The model projects a highly significant positive relationship between technology stock and the pace of technological progress, endorsing our hypothesis.

Rättsläget vad gäller beskattningen av FoU-samarbeten i enkla bolag synes i vissa avseenden vara oklart. Trots detta har inkomstskatterättsliga implikationer av FoU-samarbeten mellan företag inte behandlats i någon större utsträckning i doktrinen. Tyngdpunkten i denna uppsats ligger på den resultatfördelning och de förmögenhetsöverföringar som kan uppstå i samband med FoU-samarbeten och de tänkbara inkomstskatterättsliga effekter som de för med sig. Vid en belysning av dessa transaktioner har vi funnit att det finns ett behov av klargöranden för hur dessa skall behandlas inkomstskatterättsligt. Utifrån vår studie framgår det att samarbetsavtalet får en avgörande betydelse för beskattningen i enkla bolag. Den rådande uppfattningen synes alltså vara att ett bolagsavtal kan ha skatterättslig verkan avseende inkomstfördelningen utan att en äganderättsförändring behöver ske. Det torde dock krävas, som lyfts fram i doktrinen, att fördelningen kan anses vara företagsekonomiskt motiverad och inte endast betingad av skatteskäl. Exakt var denna gräns går är dock inte helt klart. Vad gäller förmögenhetsöverföringar inom ramen för ett samarbete torde det i vissa fall kunna bli aktuellt med uttagsbeskattning. I vår jämförelse med andra former av samverkan har vi funnit att det föreligger skillnader avseende periodiseringen av inkomster och utgifter, vilket innebär att det kan finnas inkomstskatträttsliga incitament till att bedriva FoU-verksamhet i ett enkelt bolag framför andra former av samverkan. / The legal position concerning income taxation of R&amp;D-cooperations in “simple companies” (enkla bolag) seems to be somewhat uncertain. Despite this, income tax effects of R&amp;D-cooperations have been sparsely discussed in the doctrine. The emphasis of this thesis is on the possible income tax effects of the division of income and the possible income tax effects of those transfers of property that may arise in connection with R&amp;Dcooperations. When studying these transactions we have found that there is a need for clarifications on how they shall be treated in the income tax law. On the basis of our thesis it is clear that the cooperation contract is of decisive importance for the taxation of “simple companies”. The current opinion seems to be that a cooperation contract can be of importance for the division of income at the income taxation without the need of a previous transfer of property. Nevertheless it should be required, as put forward in the doctrine, that the division is considered to be economically motivated and not only based on tax evasion purposes. Transfers of property within a cooperation could in some cases conduct withdrawal taxation. In our comparison with other forms of cooperation we have found that there are some differences concerning the point of time of taxation for income and the time for deducting expenses. This means that there could be income tax incentives to run R&amp;D-cooperations in a “simple company” rather than in other forms of cooperation.