How home country weaknesses can constrain EMNE growth: the example of India

This paper discusses the opportunities and limitations that the location-specific (L) assets of the home country represent for MNEs, particularly at the early stages of internationalization. The systemic weaknesses of the home country can constrain the long-term competitiveness of its firms, and ultimately, the competitiveness of its MNEs. It is the contention of this paper that many of the emerging countries have a constrained set of L assets from which their firms are able to develop ownership-specific assets. Are their economies developing improved L assets that will promote a new generation of EMNEs? We examine data for the case of India, an economy regarded as having considerable potential to expand to knowledge-intensive sectors. At the macro level, India’s performance is not different from countries of similar economic structure, and its current pockets of excellence are a reflection of its L assets. Our analysis suggests that the failure to foster and upgrade the L assets of emerging economies is likely to stunt the growth of their domestic firms, and ultimately any new MNE activity in the long-term

Inefficiencies in markets for intellectual property rights: experiences of academic and public research institutions

The formal use of such intellectual property rights (IPR) as patents and registered copyright by universities has increased steadily in the last two decades. Mainstream arguments, embedded in economic theory and policy, advocating the use of IPR to protect academic research results are based on the view that IPR marketplaces work well and allow universities to reap significant benefits. However, there is a lack of evidence-based research to justify or critically evaluate these claims. Building upon an original survey of 46 universities and public research organizations in the United Kingdom, this study analyses the quality of the institutions underpinning the markets for patents and copyright, investigating potential inefficiencies that could lead to underperformance of the IPR system. These include ‘IPR market failures’ with respect to search processes and transparency; price negotiation processes; uncertainties in the perception of the economic value of IRP and the relationship with R&D cost. Further sources of underperformance may include ‘institutional failures’ with respect to enforcement and regulation. Particular attention is paid to the role of governance forms (e.g. alternative types of licensing agreements) through which IPR exchanges take place. We find that a high share of universities report market failures in IPR transactions and that the choice of IPR governance forms matter for the obstacles that are encountered. Given the importance of widely disseminating university research outcomes to foster innovation and economic development, the presence of inefficiencies in IPR markets suggests that such objectives could best be achieved by encouraging open distribution of knowledge, rather than privatization of academic knowledge

Innovation for green industrialisation: an empirical assessment of innovation in Ethiopia’s cement, leather and textile sectors

Ethiopia has recently committed to economic transformation and industrialisation through a low-carbon development trajectory. Existing literature highlights innovation as a critical driver of industrialisation, and the need for ‘green’ innovations to improve resource productivity and reduce pollution. However, empirical studies investigating the nexus between green innovation systems and industrialisation in developing countries are limited. Based on nine semi-structured interviews and a survey of 117 firms, this paper assesses sectoral systems of innovation in Ethiopia’s cement, leather and textile sectors, with a view to understanding their functioning toward supporting green industrialisation. Results revealed low rates of product and process innovations among firms in Ethiopia. The main inhibitors of innovation are high costs of technology, inadequate finance and limited information. Improving competitiveness is the main driver of firms’ innovation, while reducing environmental impacts and meeting environmental regulations were among the least important motivators. Moreover, interactions among firms, government and other actors encourage innovation. The study therefore suggests enhancing coordination among key actors, providing financial incentives for firms, and enforcing environmental regulations

Solar hydrogen system for cooking applications: Experimental and numerical study

This paper describes the development of a semi-empirical numerical model for a solar hydrogen system consisting of a proton exchange membrane electrolyser (PEM) powered by photovoltaic panels to produce hydrogen as fuel for cooking applications, focussing on Jamaica as a suitable case-study. The model was developed in TRNSYS and includes a novel numerical component based on FORTRAN to model the operation of the PEM electrolyser. The numerical component was developed based on operational data from a purpose constructed small-scale experimental rig. The numerical model was calibrated using data from the experimental rig powered by operational data from a photovoltaic panel system in the UK and predicted photovoltaic panel power data from Jamaica. For the test conditions, experiments indicated an electrolysis maximum efficiency of 63.6%. The calibrated model was used to develop a case study analysis for a small community in Jamaica with a daily cooking demand of 39.6kWh or 1.7kg of H2 gas. Simulations indicate that the H2 production plan is sufficient for the cooking needs of the case-study.This project is partly funded by ACP Caribbean & Pacific Research Programme for Sustainable Development of the European Union (EuropeAid/130381/D/ACT/ACP)

Adequate and anticipatory research on the potential hazards of emerging technologies: a case of myopia and inertia?

History confirms that while technological innovations can bring many benefits, they can also cause much human suffering, environmental degradation and economic costs. But are we repeating history with new and emerging chemical and technological products? In preparation for volume 2 of ‘Late Lessons from Early Warnings’ (European Environment Agency, 2013), two analyses were carried out to help answer this question. A bibliometric analysis of research articles in 78 environmental, health and safety (EHS) journals revealed that most focused on well-known rather than on newly emerging chemicals. We suggest that this ‘scientific inertia’ is due to the scientific requirement for high levels of proof via well replicated studies; the need to publish quickly; the use of existing intellectual and technological resources; and the conservative approach of many reviewers and research funders. The second analysis found that since 1996 the funding of EHS research represented just 0.6% of the overall funding of research and technological development (RTD). Compared with RTD funding, EHS research funding for information and communication technologies, nanotechnology and biotechnology was 0.09%, 2.3% and 4% of total research, respectively. The low EHS research ratio seems to be an unintended consequence of disparate funding decisions; technological optimism; a priori assertions of safety; collective hubris; and myopia. In light of the history of past technological risks, where EHS research was too little and too late, we suggest that it would be prudent to devote some 5–15% of RTD on EHS research to anticipate and minimise potential hazards while maximising the commercial longevity of emerging technologies

Guns and/or Butter: The Relationship between the Economy and the Military

SUMMARY The relationship between military expenditure and economic performance is a complex one, changing over time. At this historical juncture — especially for the UK and the USA — the evidence suggests that the net impact of military expenditure is negative. Although there are important technological spin?offs, these appear to be more than outweighed by their opportunity cost and the distortion of R & D. Military expenditure, because of its capital and import intensity and its use of scarce skills, also serves as a poor Keynesian pump primer. The prospects of ‘conversion’ are, however, constrained by the close political and economic meshing between military contractors, the defence establishment and political interest groups. SOMMAIRE Des fusils et/ou du beurre: Les rapports entre l'économie et le militaire Le rapport entre la dépense militaire et la performance économique est trés complexe, toujours changeant. A ce point de rencontre historique — surtout pour le Royaume Uni et les Etats Unis — l'évidence suggère que l'impact net de la dépense militaire est négatif. Quoiqu'il y ait d'importants dérivatifs technologiques, ceux?ci sont largement dépassés par leur coût et leur distortion. La dépense militaire, à cause du capital et de l'intensité de l'importation et de son pauvre usage de compétence, montre un bien pauvre exemple Keynesien. Les perspectives de ‘conservation’ sont, toutefois, restreintes par le filet serré politique et économique existant entre les entrepreneurs militaires, l'administration de la défence et les groupes d'intérêt politiques. RESUMEN Cañones y/o mantequilla: relación entre la economía y lo militar La relación entre gasto militar y comportamiento económico es muy compleja y cambia a través del tiempo. En la coyuntura histórica presente — especialmente para el Reino Unido y los EEUU — la evidencia indica que el impacto neto del gasto militar es negativo. Aun cuando tiene importantes ventajas tecnológicas éstas parecieran estar contrarrestadas por la pérdida de mejores oportunidades de inversión y por la distorción provocada en investigación y desarrollo. Debido a que requiere capitales e importaciones intensivos y destrezas especializadas escasas, el gasto militar es un pobre estímulo para la economía en el sentido keynesiano. Las posibilidades de ‘conversión’ están restringidas por la íntima interrelación política y económica entre los contratistas militares, el ‘sistema’ de defensa y los grupos de intereses políticos

Governing effective and legitimate smart grid developments

Smart grids which use Information and Communication Technologies to augment energy network management have been developed in several locations including London and Stockholm. Common rationales for smart grids include: de-carbonising energy supply, maintaining security of supply and promoting affordability. However, beyond these general abstractions, smart grids seem to exhibit considerable diversity in terms of their characteristics and rationales for development. Thus, while the term smart grid may imply abstract notions of what smart grids are and might do, they are developed in response to local contingencies and diverse. In this paper we therefore explore the governance processes through which smart grids are constructed. The paper suggests that standardising smart grids through definitions and best practices that fix both problems and solutions should be avoided. Rather governance processes should be promoted in which local contingencies can be articulated and more legitimate smart grids developed in response to these

Automation, skill requirements and labour-use strategies: high-wage and low-wage approaches to high-tech manufacturing in the automotive industry

In light of debates about advanced manufacturing and concepts like Industrie 4.0, this article compares labour‐use strategies in highly automated automotive supplier plants in a high‐wage country (Germany) and a low‐wage region (Central Eastern Europe). It shows considerable differences regarding skill requirements on the shop floor and the use of precarious employment contracts and examines three potential factors that explain them: national institutional frameworks, the power of employee representatives and the role of the plant within the companies and value chains. The analysis shows that the labour‐use strategies depend less on process technologies per se, but rather on the institutional framework and the role of the factory in the rollout and ramp‐up of new products and new process technologies. Such a role requires close cooperation between employees in the manufacturing areas and in product development, which in turn requires particularly high skills. The role of employee representatives in influencing labour‐use strategies proves less important. The article uses quantitative data from a survey of employee representatives, as well as qualitative data from in‐depth company case studies

Cultivating the Installed Base: The Introduction of e-Prescription in Greece

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