nep-ino New Economics Papers
on Innovation
Issue of 2015‒09‒11
25 papers chosen by
Uwe Cantner
University of Jena

  1. Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms By Alberto Marzucchi; Sandro Montresor
  2. How Do Native and Migrant Workers Contribute to Innovation? By Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra
  3. Do we have the right kind of diversity in Innovation Policies among EU Member States? By Reinhilde Veugelers
  4. Plant Breeders’ Rights, Patents and Incentives to Innovate By Hervouet, Adrien; Langinier, Corinne
  5. Business science links for a new growth path By Jürgen Janger
  6. Evaluación de impacto de las políticas de incentivo a la actividad innovadora en el sector industrial uruguayo By Evelin Lasarga; Lucía Rosich; Horacio Rueda
  7. Taking into account hidden innovation in innovation networks: the role of public-private innovation networks in services By Faridah Djellal; Faïz Gallouj
  8. Open Innovation in a Model à la Hotelling By Bottai, Carlo
  9. Innovation, Deregulation, and the Life Cycle of a Financial Service Industry By Fumiko Hayashi; Grace Bin Li; Zhu Wang
  10. Human Capital-Economic Growth Nexus: A Causality Analysis for Pakistan By Khan, Jangraiz; Khattak, Naeem Ur Rehman Khattak; Khan, Amir
  11. KIBS and the Dynamics of Industrial Clusters: a Complex Adaptive Systems Approach By Benoît Desmarchelier; Faridah Djellal; Faïz Gallouj
  12. Dense Enough To Be Brilliant: Patents, Urbanization, and Transportation in Nineteenth Century America By Elisabeth Ruth Perlman
  13. From Market Fixing to Market-Creating: A New Framework for Economic Policy By Mariana Mazzucato
  14. De la participation à la coopération entre enseignants et étudiants dans le cadre d'un espace de coworking à l'université By Ingrid Fasshauer; Claudie Meyer; Christian Bourret
  15. Regional co-evolution of firm population, innovationand public research? Evidence from the West German laser industry By Ann-Kathrin Blankenberg; Guido Buenstorf
  16. Absorptive capacity and space By Mário Alexandre Patrício Martins da Silva
  17. Network Effects in Knowledge Creation: Evidence from Academia By Nelson Sá; Ana Paula Ribeiro; Vitor Carvalho
  18. Diagnosis of the applications of Continuous Learning of Watkins and Marsick Model in IT Industry of Indian Silicon Valley By Shetty, Manohar
  19. Make in India: Which Exports Can Drive the Next Wave of Growth? By Rahul Anand; Kalpana Kochhar; Saurabh Mishra
  20. U.S. Total Factor Productivity Slowdown: Evidence from the U.S. States By Roberto Cardarelli; Lusine Lusinyan
  21. Economic Policy Monitor 2014: Effective Regulations for Sustainable Growth By Philippine Institute for Development Studies (PIDS)
  23. Technology, Policy Distortions and the Rise of Large Farms By Wenbiao Cai
  24. Liquidity Constraints, Informal Financing, and Entrepreneurship: Direct and Indirect Effects of a Cash Transfer Programme By Rafael P. Ribas
  25. How Cash Transfers Create Businesses? By Rafael P. Ribas

  1. By: Alberto Marzucchi (Catholic University of Milan (Italy)); Sandro Montresor (Kore University of Enna (Italy))
    Abstract: This paper investigates the relevance of different forms of knowledge for the firm’s propensity to pursue eco-innovation (EI) strategies. The incidence of different types of internal and external knowledge is disentangled in search of specific EI-modes. We employ panel data on around 4,700 manufacturing firms from the Spanish PITEC dataset. Results show that a Science, Technology, EI-mode (STEI) prevails, though generally in an attenuated way, in the use of internal knowledge, with R&D knowledge more pivotal than some (embodied vs. disembodied) non-R&D one. On the other hand, a synthetic kind of external knowledge, typically drawn from business actors, is more important than the analytical one mainly coming from the “world of science”, suggesting a Doing, Using, Interacting EI-mode (DUIEI) in external terms. Overall, a hybrid EI-mode emerges across the internal and external realm of the firm, with interesting qualifications when specific EI strategies (e.g. cleaner production technologies vs. product eco-innovations) are considered.
    Keywords: Eco-innovation, knowledge, innovation modes, DUI, STI
    JEL: Q55 O31 O32
    Date: 2015–09
  2. By: Fassio, Claudio; Montobbio, Fabio; Venturini, Alessandra (University of Turin)
    Abstract: This paper uses the French and the UK Labour Force Surveys and German Microcensus to estimate the effects of the different components of the labour force on innovation at the sectoral level between 1994 and 2005, focusing in particular on the contribution of migrant workers. We adopt a production function approach in which we control for the usual determinants of innovation, such as R&D investments, stock of patents and openness to trade. To address for the possible endogeneity of migrants we implement instrumental variable strategies using both two-stage least squares with external instruments and GMM-SYS with internal ones. In addition we also account for the possible endogeneity of native workers and instrument them accordingly. Our results show that highly educated migrants have a positive effect on innovation even if the effect is smaller relative to the one of the educated natives. Moreover this positive effect seems to be confined to the high tech sectors and among highly educated migrants from other European countries.
    Date: 2015–05
  3. By: Reinhilde Veugelers
    Abstract: This contribution focuses on the heterogeneity in innovation capacity within Europe across its different Member State. Who are the leading and who are the lagging EU countries? Is there a trend towards convergence over time? And how has the crisis affected this trend of convergence? We then take a look at the research and innovation policies which the EU countries have in place and try to assess whether these policies match with the heterogeneous EU countries’ innovation capacity positions. We examine both the budgets allocated by EU Member States to R&I as well as the various kinds of R&I policy programmes being deployed. More particularly, we examine how heterogeneous the deployment of policy instruments is across EU member states and whether this matches with the heterogeneity in innovation capacity development among EU countries. Notwithstanding the large and increasing heterogeneity among EU countries in innovation capacity development, the evidence on innovation policies in EU countries shows a relative homogeneity of policy mixes in different countries. Current innovation policy mixes of instruments do not well reflect the countries’ levels of innovation capacity development.
    Keywords: Innovation, Innovation policy, Institutional reforms, Multi-level governance
    JEL: O31 O38
    Date: 2015–08
  4. By: Hervouet, Adrien (Université de Nantes, Institut d’Économie et de Management); Langinier, Corinne (University of Alberta, Department of Economics)
    Abstract: Innovations on plant varieties can be protected by patents or Plant Breeders’ Rights (PBRs). Although these methods of protection have similarities, they also have major differences. With the PBR regime, farmers are allowed to save part of their harvest to replant during the next period (“farmers’ exemption”). To comply with international regulation, they must pay a tax to seed producers for the loss incurred due to this exemption. We analyze the impact of this exemption and its associated tax on seed prices and on the incentives to innovate in a monopoly setting. We find that with only a PBR regime, a relatively high tax level is necessary to eliminate self-production. If both patent and PBR regimes coexist, farmers might still self-produce if the seed innovation is protected with a PBR. Our findings suggest that the coexistence of the two regimes does not fully prevent self-production. Nevertheless, it boosts the research investment which is a non-monotonic function of the tax. The seed producer might over or under invest compared to what is socially optimal. Moreover, incentives to innovate are the strongest, either with a patent regime or with a PBR regime for which a high tax prevents seed saving. In terms of welfare, having both systems has ambiguous effects.
    Keywords: Intellectual Property Rights; Plant Breeders’ Rights; Seed Saving
    JEL: D23 K11 L12 Q12
    Date: 2015–08–01
  5. By: Jürgen Janger
    Abstract: Policies towards business science links have been driven by the concept of the entrepreneurial university, i.e. encouraging universities to directly contribute to economic development through commercialization of their discoveries, e.g. through licensing of patents or start-ups, but also through collaborative R&D with firms. However, efforts to increase the entrepreneurship of universities have seldom targeted the first two missions of universities, research and teaching. Evidence shows that any entrepreneurship can only be as strong as the quality of research and teaching. Based on a conceptual model of universities’ role in innovative activity and a review of the evidence, this paper has tried to argue that a narrow focus on linking universities with firms and society without making sure that universities’ first two missions - research and teaching - work well is an ineffective approach towards increasing the contribution of universities to innovative activity, and hence to a new growth path. In particular, the role of training graduates is not stressed enough, while by far the biggest contribution of universities to innovative activities.
    Date: 2015–08
  6. By: Evelin Lasarga (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración.); Lucía Rosich (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración.); Horacio Rueda (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración.)
    Abstract: Government efforts to promote innovation require the evaluation of public policies. In this paper, we make an impact evaluation of public support on key variables such as labor productivity, exports, spending on innovation activities, among others. Also, we evaluate the impact of such support differentiating activities between endogenous and exogenous innovation. To do this, we use Propensity Score Matching method which allows us to estimate with some confidence the average difference of the outcome variables comparing between financed companies and a control group of not financed companies, controlling by observable characteristics. In fact, we found that public support significantly improved the performance of financed firms compared to those who did not receive public support. In particular, the impact was greater on exogenous innovation activities. However, these results must be nuanced by the fact that between the period 2007-2009 and 2010-2012 the number of companies that carried out innovation activities declined, which may indicate a selection bias. Finally, we note that the heterogeneity of public financing instruments analyzed can affect the results obtained with respect to the scope of innovation policies and results obtained, as some instruments do not primarily aim to promote innovation.
    Keywords: innovation, public support, impact evaluation
    JEL: O31 O38 C21
    Date: 2015–09
  7. By: Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies); Faïz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies)
    Abstract: Public-private innovation networks in services (PPINS) are a new expression of traditional innovation networks (INs) in contemporary service economies. There are a number of ways in which this new expression differs from the other. It differs from it, first of all, by its emphasis on market services and on public and non-market services in the dynamics of innovation. But PPINS differ from INs most of all in the nature of the innovation that is taken into account (which is the subject of the network implementation). This innovation is no longer limited to economic and technological innovation, but also includes non-technological and social innovation-which most often remain invisible to our traditional analytical tools. The purpose of this paper is to examine how PPINS contribute to the implementation of invisible innovations, and thus to the introduction of invisible/hidden innovation within the innovation network tradition. It addresses the following three points: i) the nature of the invisible innovation implemented within PPINS, ii) the invisible innovation organization modes within PPINS, iii) the public policy consequences of the focus on invisible innovation (and corresponding PPINS).
    Date: 2015–06
  8. By: Bottai, Carlo (University of Turin)
    Abstract: This paper shows a model à la Hotelling in which profit-maximizing firms use either an open or a closed strategy to develop their software products. Only in the first case they can freely interchange information about their R&D, and the spillovers are higher the closer they are. What comes out is a clustering force that drives open firms to stay closer one another in the product characteristic space and which lead to believe that a sense of community is essential to work for an organizational model that is decentralized, modular and that cannot be planned in advance, like the Bazaar development model, used by open firms, is.
    Date: 2015–06
  9. By: Fumiko Hayashi; Grace Bin Li; Zhu Wang
    Abstract: This paper examines innovation, deregulation, and firm dynamics over the life cycle of the U.S. ATM and debit card industry. In doing so, we construct a dynamic equilibrium model to study how a major product innovation (introducing the new debit card function) interacted with banking deregulation drove the industry shakeout. Calibrating the model to a novel dataset on ATM network entry, exit, size, and product offerings shows that our theory fits the quantitative pattern of the industry well. The model also allows us to conduct counterfactual analyses to evaluate the respective roles that innovation and deregulation played in the industry evolution.
    Keywords: Financial services industry;United States;Industrial structure;Technological innovation;Equilibrium. Econometric models;Innovation; Deregulation; Industry Dynamics; Shakeout
    Date: 2015–08–18
  10. By: Khan, Jangraiz; Khattak, Naeem Ur Rehman Khattak; Khan, Amir
    Abstract: This paper concentrates on the role of human capital in economic growth of Pakistan during the period 1971-2012.Granger Causality test has been used as analytical technique for this purpose. The study used research and development (R&D), education and health as proxies for human capital. The results confirm the role of human capital in the economic growth of the study area. The results show that human capital in form of research and development (R&D) Granger caused economic growth during the study period. Moreover, unidirectional causal relationships exist among different levels of education, physical capital, R&D and economic growth. Realizing the significance of human capital for sustained economic growth of the country, it is suggested to increase investment in R&D, health and education sector of Pakistan.
    Keywords: Causality, Human Capital, Research and Development, Physical Capital, Economic Growth
    JEL: E24 J2 J21 O32 O47 O49
    Date: 2015–04
  11. By: Benoît Desmarchelier (Xi'an Jiaotong University [Chine] - Xi'an Jiaotong University); Faridah Djellal (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies); Faïz Gallouj (CLERSE - Centre lillois d'études et de recherches sociologiques et économiques - CNRS - Université Lille 1 - Sciences et technologies)
    Abstract: An important and highly debated question in economic geography is how to explain the dynamics of industrial clusters, i.e. their emergence and evolution through time. Two main theories are generally explored, without being confronted: the cluster life cycle theory-which mainly adopts an aggregate point of view-and the network-based approach. Although KIBS are an important actor of industrial clusters, these two theories pay little attention to them as a potential driver of clusters' dynamics. We show in this paper that properly taking KIBS into account requires considering an alternative and integrative approach that conciliates these two theories. In particular, we argue that complex adaptive systems (CAS) constitute a promising basis for such a synthesis. We then operationalize the CAS approach by studying an existing industrial cluster-Skywin (aeronautics in Wallonia region, Belgium)-within this framework. For this purpose, we use an exhaustive list of the innovation projects undertaken within this cluster between 2006 and 2014 and we build temporal innovation networks linking the agents of the cluster. It appears that Skywin's innovation networks exhibit a small-world effect. This implies that any agent who takes part into an innovation project of this cluster can easily benefit from knowledge and information generated within another ongoing project. We argue that this effect is an interesting proxy of a cluster's attractiveness and an appropriate aggregate variable for studying clusters' dynamics as it shows cluster's potential for further growth. We also demonstrate that KIBS are the main responsible for the emergence of this small-world effect in Skywin's innovation networks.
    Date: 2015–05
  12. By: Elisabeth Ruth Perlman
    Abstract: This paper explores the geographical distribution of patenting in the nineteenth century United States, as it evolves in response to improvements in access to transportation. I revisit the Sokoloff (1988) hypothesis that increasing market access, caused by the spread of transportation infrastructure, led to an acceleration of innovation. I find that twenty years after the arrival of the railroad in a county, the number of patents per capita has doubled. Using cardinal detection lines from the most important ports in 1826 as an instrumental variable suggests that 30-70% of the increase in patenting between 1850 and 1860 was caused by the spread of the railroad in this period, and 15-30% of the increase between 1850 and 1870. These results are driven by the area of a county that is close enough make a round trip to transportation with in a day, and not by area further away. A 1% increase in the area of the county that is within 1.5 miles of some form of transport corresponds to a to a 1.5% increase in patenting. These results are robust to controls for urbanization. Much of the effect comes from patenting in counties that had not previously patented, suggesting that new access to existing markets spurs development and leads to integration into broader markets for innovation.
    Date: 2015–03
  13. By: Mariana Mazzucato (SPRU (Science Policy Research Unit), School of Business, Management & Economics, University of Sussex, Brighton, BN1 9SL, U.K.)
    Abstract: Many countries are pursuing innovation-led ‘smart’ growth, which requires certain types of long-run strategic investments. This paper argues that such investments require public policies that aim to create markets, rather than just ‘fixing’ market failures (or system failures). Such ‘mission-oriented’ investments have led to men walking on the moon (which created spillovers across the economy) and are today catalyzing investments to tackle climate change around the world. In the two above-mentioned cases, public agencies not only ‘de-risked’ the private sector, but also led the way in terms of shaping and creating new technological opportunities and market landscapes. Only then was the private sector willing to invest. This paper considers four key questions that arise from a ‘market creating’ framework: (1) decision-making on the direction of change; (2) the nature of (public and private) organizations that can welcome the underlying uncertainty and discovery process; (3) the evaluation of mission-oriented and market-creation policies; and (4) the ways in which both risks and rewards can be shared so that ‘smart’ innovation-led growth can also result in ‘inclusive’ growth.
    Keywords: innovation policy, mission-oriented, market failures, system failures, directionality, smart growth, inclusive growth
    JEL: H1 L1 L2 O1
    Date: 2015
  14. By: Ingrid Fasshauer (DICEN IDF - Dispositifs d'Information et de Communication à l'Ère du Numérique - UP10 - Université Paris 10, Paris Ouest Nanterre La Défense - UPEM - Université Paris-Est Marne-la-Vallée - Conservatoire National des Arts et Métiers [CNAM] : EA7339); Claudie Meyer (DICEN IDF - Dispositifs d'Information et de Communication à l'Ère du Numérique - UP10 - Université Paris 10, Paris Ouest Nanterre La Défense - UPEM - Université Paris-Est Marne-la-Vallée - Conservatoire National des Arts et Métiers [CNAM] : EA7339); Christian Bourret (DICEN IDF - Dispositifs d'Information et de Communication à l'Ère du Numérique - UP10 - Université Paris 10, Paris Ouest Nanterre La Défense - UPEM - Université Paris-Est Marne-la-Vallée - Conservatoire National des Arts et Métiers [CNAM] : EA7339)
    Abstract: En janvier 2014, le 1 er espace français de coworking à l'université est inauguré. Résultat d'une coopération inédite entre étudiants, enseignants, services administratifs et collectivités territoriales, il est destiné à donner lieu à de nouvelles pratiques pédagogiques et servir d'espace de co-construction et d'expérimentation de nouveaux services. Il s'agit de dépasser la participation des étudiants pendant le cours pour passer à un mode de fonctionnement collaboratif, c'est-à-dire la pleine contribution des étudiants au contenu de la formation, qui en deviennent ainsi les acteurs. La communication vise à identifier les différentes formes et les déterminants de la coopération entre enseignants et étudiants dans un espace de coworking. Elle conclut sur les perspectives offertes par un tel lieu pour l'innovation pédagogique et l'innovation de services.
    Date: 2015–06–30
  15. By: Ann-Kathrin Blankenberg (Chair of Economic Policy and SME Research, University of Göttingen; Platz der Göttinger Sieben 3, 37073 Göttingen, Germany); Guido Buenstorf (Institute of Economics, University of Kassel; Nora-Platiel-Strasse 5, 34109 Kassel, Germany)
    Abstract: We explore the regional co-evolution of firm population size, private-sector patenting and public research in the empirical context of German laser research and manufacturing over more than 40 years from the emergence of the industry to the mid-2000s. Our qualitative as well as quantitative evidence is suggestive of a co-evolutionary process of mutual interdependence rather than a unidirectional effect of public research on private- sector activities.
    Keywords: co-evolution, innovation systems, vector autoregression, laser technology
    JEL: B52 O31 R12
    Date: 2015–08–05
  16. By: Mário Alexandre Patrício Martins da Silva (Faculdade de Economia do Porto)
    Abstract: In this paper, we assume that the absorptive capacity of firms located in a given region is positively influenced by territorial-dependent aspects, and analyze the effects of the spatial elements that explain the differences between territories to access and absorb external knowledge on the innovative performance of regions and the possibility of arising local increasing returns.
    Keywords: Absorptive capacity, knowledge spillovers, complementarities, proximity, innovation, R&D
    JEL: O33 R11
    Date: 2015–09
  17. By: Nelson Sá (Department of Economics, Vassar College, Poughkeepsie, New York 12604, USA); Ana Paula Ribeiro (CEF.UP and FEP, Universidade do Porto, Portugal); Vitor Carvalho (CEF.UP and FEP, Universidade do Porto, Portugal)
    Abstract: This paper makes use of a sample of articles published between 1999 and 2013 by economists affiliated in Portuguese institutions to examine the impact of co-authorship over the quality of academic research. We build a unique database to characterize the role played by distinct affiliations and educational backgrounds on this process, while controlling for experience and individual quality levels. Mentoring relations are identified as one possible source of negative bias on the measurement of teamwork productivity, which we proxy for and quantify here for the first time. The empirical results also suggest that co-authorship across domestic institutions does not carry any significant impact on research quality, but international collaboration enhances it. A doctorate earned abroad is shown to directly improve publication outcomes, besides making it easier to establish partnerships across frontiers. These findings underscore the importance of accessing external knowledge networks in academia, offering relevant policy insights for a large number of small and less developed countries.
    Keywords: Knowledge Networks; Co-Authorship; Academic Productivity
    JEL: A11 J44 I23
    Date: 2015–09
  18. By: Shetty, Manohar
    Abstract: Each organization must turn into a learning association. Pioneers may think articulating a reasonable vision, the exact motivating forces for workers and giving preparing make associations to learn. This suspicion is not simply imperfect – it's hazardous despite heightened rivalry, progresses in innovation, and movements in client inclinations. In element complex circumstances cause and impacts are available in unobtrusive structures, yet the aftereffects of mediations are not instantly observable. In perspective of Watkins and Marsick, authoritative learning started with a shared perception that critical learning, Continuous Learning – It is the center of a fruitful association flourishing to increase focused edge over different organizations in a solid aggressive business. The goal of the study incorporates To determine the acts of Watkins and Marsick model in IT industry through Continuous Learning. Examination works together Moderate to High rankings for different components of Continuous Learning under demographic variables - Age, sexual orientation, Education, Occupation and Income. Exploration finishes up serious utilization of Continuous Learning in IT industry under demographic division variables. The movement from customary techniques to advanced strategies for Learning Organization practices is because of interest from the business and can even finish up giving Continuous Learning is have to associations in the dynamic association environment.
    Keywords: Watkins and Marsick Model; Continuous Learning; stiff competitive market; dynamic organization environment;
    JEL: J5 J53 M5 M51 M53 O3 O31
    Date: 2015–09–08
  19. By: Rahul Anand; Kalpana Kochhar; Saurabh Mishra
    Abstract: Structural transformation depends not only on how much countries export but also on what they export and with whom they trade. This paper breaks new ground in analyzing India’s exports by the technological content, quality, sophistication, and complexity of the export basket. We identify five priority areas for policies: (1) reduction of trade costs, at and behind the border; (2) further liberalization of FDI including through simplification of regulations and procedures; (3) improving infrastructure including in urban areas to enhance manufacturing and services in cities; (4) preparing labor resources (skills) and markets (flexibility) for the technological progress that will shape jobs in the years ahead; and (5) creating an enabling environment for innovation and entrepreneurship to draw the economy into higher productivity activities.
    Keywords: Exports;Services;Manufacturing;India;Trade;Growth, Innovations, transport, travel, vehicles, transportation, infrastructure, Country and Industry Studies of Trade, Comparative Studies of Countries,
    Date: 2015–05–29
  20. By: Roberto Cardarelli; Lusine Lusinyan
    Abstract: Total factor productivity (TFP) growth began slowing in the United States in the mid-2000s, before the Great Recession. To many, the main culprit is the fading positive impact of the information technology (IT) revolution that took place in the 1990s. But our estimates of TFP growth across the U.S. states reveal that the slowdown in TFP was quite widespread and not particularly stronger in IT-producing states or in those with a relatively more intensive usage of IT. An alternative explanation offered in this paper is that the slowdown in U.S. TFP growth reflects a loss of efficiency or market dynamism over the last two decades. Indeed, there are large differences in production efficiency across U.S. states, with the states having better educational attainment and greater investment in R&D being closer to the production “frontier.â€
    Keywords: Production;Productivity;Industrial efficiency;Total factor productivity;Technological innovation;United States;growth, stochastic frontier analysis, U.S. states, tfp, capital, General, Analysis of Growth, Development, and Changes,
    Date: 2015–05–28
  21. By: Philippine Institute for Development Studies (PIDS)
    Abstract: This fifth issue of the PIDS Economic Policy Monitor (EPM) highlights the importance of regulatory coherence and quality to realize rapid, sustainable, and inclusive growth. For the Philippines to take advantage of increased trade and investment under ASEAN integration, there is a need to address the factors that bring down its competitiveness and undermine the efforts toward greater inclusiveness. Regulatory burdens are one of those factors. They restrain competition, productivity, and innovation. This prepress version of EPM 2014 starts with the analysis in Chapter 1 of the Philippines' performance in 2014 and the outlook for 2015 and beyond in the face of continued global and regional developments. The Philippines continued on a high-growth path in 2014, averaging 6.1 percent, which was achieved despite a number of challenges, including a lower level of government spending due to the low absorptive capacity of government agencies. The outlook for the country in 2015 remains positive, with a growth forecast of 6.8 percent. The global prospect is also optimistic and the forecast is a growth rate of 3.5 percent. Long-term growth is a function of productivity, thus it is imperative to sustain investments in infrastructure, connectivity, and human capital. Chapter 2 discusses some of these investments that are apparent in a number of policy developments in 2014. They include, to name a few, the extension of the age coverage of the Pantawid Pamilyang Pilipino Program to include 15- to 18-year-old children, the use of the so-called "education deflator" to regulate tuition fee increases, and the enactment of Republic Act 10641 that allows the full entry of foreign banks in the country. Chapter 3, the theme chapter, examines the case for developing a sound and efficient regulatory management system (RMS) for the country. An RMS is the best step toward reducing regulatory burdens and improving the quality of regulations. The Philippines has a system that contains some of the basic elements of an RMS, but these do not represent a coherent and coordinated system nor are these elements regularly undertaken. The government has taken steps to fill the gaps in the system, but this is not enough. A commitment to reforms despite changes in political leadership and a mindset for continual improvement and innovation are a must.
    Keywords: Philippines, regulatory quality, regulatory burden, regulatory management system, cost of doing business, economic outlook, Philippine economy
    Date: 2015
  22. By: Nesrine Ben Ismail (TBS Research Centre - toulouse business school research center - Toulouse Business School); Simon Alcouffe (TBS Research Centre - toulouse business school research center - Toulouse Business School); Mohamed Chelli (TBS Research Centre - toulouse business school research center - Toulouse Business School)
    Abstract: Our aim is to make an interpretative synthesis of quantitative, qualitative and mixed empirical studies on the diffusion, adoption and implementation of management control innovations. At first, quantitative analysis of these studies reveals the increase and decrease in publications over time, the predominance of the "implementation" perspective, the focus on a small number of innovations (ABC, Balanced Scorecard) and a wide variety of theoretical frameworks and research methods used. Then, the qualitative analysis presents a synthesis of the results of this empirical research to highlight the main problems identified. Finally, some avenues for future research are suggested.
    Abstract: Notre objectif est de faire une synthèse interprétative des études empiriques qualitatives, quantitatives et mixtes sur la diffusion, l'adoption et la mise en oeuvre des innovations en contrôle de gestion. Dans un premier temps, l'analyse quantitative de ces études révèle l'augmentation puis la diminution des publications au fil du temps, la prédominance de la perspective « mise en oeuvre », la focalisation sur un petit nombre d'innovations (méthode ABC/M, Balanced Scorecard) ainsi qu'une grande diversité des cadres théoriques et méthodes de recherche mobilisés. Dans un deuxième temps, l'analyse qualitative expose une synthèse des résultats de ces études pour en souligner les principaux problèmes identifiés. Enfin, nous proposons de nouvelles pistes à explorer.
    Date: 2015–05–19
  23. By: Wenbiao Cai
    Abstract: Between 1900 and 2002, mean farm size in the U.S. quadrupled. The increasing dominance of large farms has raised concerns about inequality and questions about the role of policies in fueling this trend. I construct a two-sector model with an endogenous size distribution of farms, and use the model to show that factor endowment and technological change cannot fully account for long-term changes in farm size. Utilizing a novel set of farm-level statistics constructed from historical census of agriculture, I further show that policy distortions to farm size are regressive and are crucial for the rise of large farms.
    Date: 2015–08
  24. By: Rafael P. Ribas (IPC-IG)
    Abstract: "This paper exploits a liquidity shock from a large-scale welfare programme in Brazil to investigate the importance of credit constraints and informal financial assistance in explaining entrepreneurship. Previous research focuses exclusively on how liquidity shocks change recipients behaviour through direct effects on reducing financial constraints. However, the shock may also produce spillovers from recipients to others through private transfers and thereby indirectly affect decisions to be an entrepreneur. This paper presents a method for decomposing the liquidity shock into direct effects associated with relieving financial constraints, and indirect effects associated with spillovers to other individuals. Results suggest that the programme, which assists 20 per cent of Brazilian households, has increased the number of small entrepreneurs by 10 per cent. However, this increase is almost entirely driven by the indirect effect, which is related to an increase in private transfers among poor households. Thus the creation of small businesses tends to be more responsive to the opportunity cost of mutual assistance between households than to financial constraints."(...)
    Keywords: Liquidity Constraints, Informal Financing, Entrepreneurship, Cash Transfer Programme
    Date: 2014–11
  25. By: Rafael P. Ribas (IPC-IG)
    Abstract: "The creation of small, but formal, enterprises is one of the engines for the process of economic growth with poverty reduction. Among all kinds of policy thought to foster entrepreneurial activity, access to financial services, particularly credit and insurance, usually receives the most attention. The common presumption is that microloans and cash transfers provide the liquidity to poor individuals who want to start a business but cannot afford the start-up costs and potential losses with their own savings."(...)
    Keywords: Cash Transfers, Businesses
    Date: 2014–11

This nep-ino issue is ©2015 by Uwe Cantner. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.