nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2009‒06‒10
five papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Patent Disclosure and R&D Competition in Pharmaceuticals. By Laura Magazzini; Fabio Pammolli; Massimo Riccaboni; Maria Alessandra Rossi
  2. New Product Development of a Yoghurt Dessert via E-Collaboration By Meixner, Oliver; Haas, Rainer
  3. The use of Npv and CAPM for capital budgeting is not a good idea. A reply to De Reyck (2005) By Carlo Alberto Magni
  4. Analysis, Design and Implementation of Biodiesel Projects in Brazil By da Silva Junior, Aziz Galvao; Perez, Ronaldo; de Oliveira, Rodolfo Osorio
  5. Managing organizational change: Application of the Biomatrix theory to the transformation of a non-profit organization By Anke Wigger

  1. By: Laura Magazzini; Fabio Pammolli; Massimo Riccaboni; Maria Alessandra Rossi
    Abstract: The prominent role played by patents within the pharmaceutical domain is unquestionable. In this paper we take an unusual perspective and focus on a relatively neglected implication of patents: the effect of patent-induced information disclosure (of both successes and failures) on the dynamics of R&D and market competition. The study builds upon the combination of two large datasets, linking the information about patents to firm level data on R&D projects and their outcome. Two case studies in the fields of anti-inflammatory compounds and cancer research complement our analysis. We show the important role played by patent disclosure in shaping firms technological trajectories through the possibility of reciprocal monitoring in a context of parallel research efforts, and suggest the importance of enhancing the diffusion of information concerning failures, not only to avoid wasteful duplication of innovative efforts, but also as a tool for the identification of promising research trajectories. This paper is the result of the "R&D competition" research project carried out jointly with Adrian Towse and Martina Garau of the Office of Health Economics, London, UK. A preliminary draft of the paper has been presented to the DRUID Summer Conference 2006 (Copenhagen), and to the 11th ISS Conference (Sophia-Antipolis).
    Keywords: patent disclosure; innovation; r&d competition
    JEL: D23 D83 O34
    Date: 2009–06
  2. By: Meixner, Oliver; Haas, Rainer
    Abstract: The following contribution describes how an E-collaboration platform may be used within new product development. In order to develop a new dairy product (a yoghurt dessert), a leading Austrian dairy co-operated with representatives from the Austrian University of Natural Resources and Applied Live Sciences Vienna and other experts by use of a specific E-collaboration platform. The main aim of the project was the preparation of innovative product concepts. All necessary data and documents concerning consumer behaviour, market trends, product features etc. were distributed via a closed E-collaboration platform. The participants worked together for about half a year; however, only two personal meetings were necessary, all other communication processes (also group discussions) were done via the E-collaboration platform. It was possible to simultaneously communicate and co-operate even though the participants were located in Vienna, Upper Austria and Italy (South Tyrol). In the end a new product could be developed which was launched in one of the big three Austria supermarket chains in 2004. It could be proven that the state of the art in new product development is absolutely compatible with the usage of information technology for communication and knowledge transfer purposes; however, confidentiality and trust are absolutely indispensable for the success of such a project.
    Keywords: innovation, new product development, dairy industry, E-collaboration, Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization,
    Date: 2008–10
  3. By: Carlo Alberto Magni
    Abstract: In Magni [Eur. J. Operat. Res. 137 (2002) 206] I present some inconsistencies implicit in the net-present-value criterion, as currently used in finance. This paper shows that the standard use of CAPM for capital budgeting, based on disequilibrium values, is at odds with arbitrage theory, and that the corresponding CAPM-based NPV rule is meaningless even in the simplest case, because net present value is any number one wants it to be. Cognitively, this amounts to saying that the NPV procedure leaves decision makers subject to a framing bias; financially, this amounts to saying that additivity does not hold. De Reyck's [Eur. J. Operat. Res. 161 (2005) 499] objection to my thesis is invalid because he mistakes a project's expected rate of return for a project's cost of capital. De Reyck's Proposition, on the basis of which my thesis is criticized, leaves decision makers open to arbitrage losses, because it is an (admittedly interesting) reframing of the security market line and (as surprising as it might be) the use of the SML for project valuation is incompatible with the no-arbitrage principle. To use NPV and CAPM for capital budgeting is not a good idea.
    Date: 2009–05–27
  4. By: da Silva Junior, Aziz Galvao; Perez, Ronaldo; de Oliveira, Rodolfo Osorio
    Abstract: During the oil crisis of the seventies, Brazil has developed a successful program for gasoline substitution by ethanol (Proálcool). Nowadays the biomass accounts for 27% of total national energy consumed in Brazil and the ethanol participates with 40% of the total national fuel consumption of Otto cycle vehicles. In 2004, the National Program for the Production and Use of Biodiesel (Biodiesel Program) was launched. One priority of the Biodiesel Program is the inclusion of family agriculture and smallholders into the production chain. The Federal University of Viçosa (UFV) has developed a software for the analysis of biodiesel projects with the participation of familiy agriculture. Results of production chain analysis and economic indicators calculated by the Biosoft system have allowed identifying the regular supply of oil at competitive prices as the key point to the efficiency of biodiesel production chains. The use of oil cake as feedstock is the leverage point of chain performance. The meal sale can lead to a vegetal oil price reduction, without compromising farmers´ income, since they can be able to set up their own oil extraction plants. Coordination is then the critical element and has the potential to improve the performance of both the biodiesel industry and the animal production chain.
    Keywords: Agribusiness, Agricultural and Food Policy, Farm Management, Food Consumption/Nutrition/Food Safety, Industrial Organization,
    Date: 2008–10
  5. By: Anke Wigger (BiomatrixWeb)
    Date: 2008

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