nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2011‒09‒16
nine papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Changes in the French Defence Innovation System: New roles and capabilities for the Government Agency for Defence. By Lazaric, Nathalie; Mérindol, Valérie; Rochhia, Sylvie
  2. Does the World Bank have a micro-macro paradox or do the data deceive? By Stephen Howes
  3. Financing the Clean Development Mechanism through debt-for-efficiency swaps? Case study evidence from a Uruguayan wind farm project By Cassimon, Danny; Prowse, Martin; Essers, Dennis
  4. Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany By Czarnitzki, Dirk; Lopes Bento, Cindy
  5. Measuring social capital and innovation in poor agricultural communities: The case of Cháparra, Peru By Hartmann, Dominik; Arata, Atilio
  6. Due diligence, research joint ventures, and incentives to innovate By Fabrizi, Simona; Lippert, Steffen
  7. Energy Efficiency Investments in the Home: Swiss Homeowners and Expectations about Future Energy Prices By Anna Alberini; Silvia Banfi; Celine Ramseier
  8. Not searching, but finding: Innovation as a non-linear source of the private use of public knowledge By Azagra-Caro, Joaquín M.; Pardo, Rafael; Rama, Ruth
  9. Rogue Aid? The Determinants of China’s Aid Allocation By Axel Dreher; Andreas Fuchs

  1. By: Lazaric, Nathalie; Mérindol, Valérie; Rochhia, Sylvie
    Abstract: Defence innovation systems are structured around two main groups of players that interact in the development of complex programmes: the state (the client and the government agency) and the systems integrators. Technological and institutional changes since the 1990s have affected the division of labour and knowledge in the industry. In this paper, we show the origins of these changes based on information derived from 45 qualitative interviews conducted between 2000 and 2008, which demonstrate the new capabilities that have been created within the national innovation system (NIS). We explain how the role and the capabilities of the French Government Agency for Defence (Direction Générale de l'Armement—DGA) have developed from “project architect” to “project manager”. These new capabilities create new interactions in the French defence innovation system and new roles for the DGA.
    Keywords: Defence; Institutional change; National innovation system; co-evolution; Government agency; Knowledge; Capabilities; Technological systems;
    JEL: O33 O32 O31
    Date: 2011
  2. By: Stephen Howes (Development Policy Centre, Crawford School of Economics and Government, The Australian National University)
    Abstract: In 1986, Mosely first drew attention to an apparent paradox in the performance of international aid. Microeconomic data from evaluations of aid financed projects showed a majority of projects were successful, whereas macroeconomic data from regressions of aid on growth were discouraging. The paradox, if real,implied that the aggregate impact of aid was less the sum of its parts. Mosely asked whether the paradox was real of whether the “data deceived.” This question, which has come to be equated with the issue of whether aid works,has been the subject of numerous cross-country regressions to test whether aid has an impact on growth (or related variables). But the regression results havebeen inconclusive, and the methodology has come under attack. Evidence from case studies offers an alternative test. One prominent case study approach is that of Picciotto (2009), which claims to find strong evidence for the existence of the paradox, namely the fact that one third of World Bank country assistance program evaluations show success at the project (micro) level but not at the country (macro) level. This paper re-evaluates Piciotto’s claimed findings.
    Keywords: aid, aid effectiveness, world bank
    JEL: O11 O12 O19
    Date: 2011–06
  3. By: Cassimon, Danny; Prowse, Martin; Essers, Dennis
    Abstract: As one of Kyoto’s three flexibility mechanisms for reducing the cost of compliance, the Clean Development Mechanism (CDM) allows the issuance of Certified Emission Reduction (CER) credits from offset projects in non-Annex I countries. Whilst much attention has focused on the widespread use of the mechanism by China and India, the complex project cycle, and the lack of convincing baselines, little attention has been paid to the financing of CDM projects. In this paper we assess the extent to which CDM projects with public bodies should utilise debt swaps as a form of finance. The paper does this through analysing the use of a debt swap between Uruguay and Spain within a CDM wind farm project in Uruguay. The paper assesses this transaction according to a simple framework by which debt swaps can be evaluated: whether it delivers additional resources to the debtor country and/or debtor government budget; whether it delivers more resources for climate purposes; whether it has a sizeable effect on overall debt burdens (thereby creating ‘indirect’ benefits); and whether it adheres to the principles of alignment with government policy and systems (key elements within the new aid approach).
    Date: 2011–08
  4. By: Czarnitzki, Dirk; Lopes Bento, Cindy
    Abstract: Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding. --
    Keywords: Subsidies,Innovation,Policy Evaluation,Treatment Effects,Nonparametric matching estimation
    JEL: C14 H50 O38
    Date: 2011
  5. By: Hartmann, Dominik; Arata, Atilio
    Abstract: In the last decades substantive advance has been made in the measurement and understanding of frontier innovation in highly industrialized settings. However, little research focused on the process of learning and the introduction of novelties in smallholder farming of poor agricultural communities. Considering that 1.5 billion people in developing countries live in such smallholder households this is an essential shortcoming. In addressing three crucial questions about the measurement and promotion of endogenous local development this paper contributes to close this research gap. The three questions are: a) how can we measure social capital and innovation in poor agricultural communities, b) what is the impact of external agents on local structures and c) what are the relations between the social capital and the innovative performance of the farmer. In a first step a comprehensive questionnaire with 89 questions on diverse dimensions of social capital and innovation has been elaborated and applied to the agricultural valley of Cháparra in the South of Peru. The results allow for an indepth analysis of the capabilities, network position and innovative behavior of the farmers. In a second step, we apply social network analysis techniques to analyze the role and position of the relevant actors in the local as well as in the external technical information networks with a special focus on the influence of an external NGO. The analysis reveals a deep structural impact of the NGO and significant correlations between the network position of the farmers and their innovative performance. Three crucial issues for research on smallholder innovation are identified. First, diverse dimensions of social capital and innovation have to be differentiated when studying endogenous development. Second, it has to be assessed to which degree the modification of the existing social structures by external agents can be harmful or beneficial. Third, social network analysis can help us to gain a better understanding of the complex relations between social capital and innovation and how these can contribute to foster sustainable development projects. --
    Keywords: social capital,innovation,smallholders,Cháparra,Peru,network analysis
    Date: 2011
  6. By: Fabrizi, Simona; Lippert, Steffen
    Abstract: The decision to cooperate within R&D joint ventures is often based on `expert advice.' Such advice typically originates in a due diligence process, which assesses the R&D joint venture's profitability, for example, by appraising the achievability of synergies. We show that if the experts who advise the owners considering forming an R&D joint venture are also responsible for R&D efforts, they can have incentives to withhold information about the extent of those synergies. Owners optimally react by reducing the incentives to innovate in low-value projects developed within R&D joint ventures and in high-value projects developed within competing research organizations.
    Keywords: Research and development; due diligence; experts' advice; joint venture; synergies; asymmetric information; moral hazard; information withholding (concealing) and revelation
    JEL: D86 L5 O38 O32 D82 L24 O31
    Date: 2011–09–04
  7. By: Anna Alberini (Department of Agricultural Economics, university of Maryland, US and Centre for Energy Policy and Economics (CEPE), ETH Zurich, Switzerland); Silvia Banfi (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich); Celine Ramseier (Centre for Energy Policy and Economics (CEPE), Department of Management, Technology and Economics, ETH Zurich)
    Abstract: In May 2010, we surveyed 473 Swiss homeowners about their preferences for energy efficiency renovations in their homes. We used conjoint choice experiments that asked respondents to choose among hypothetical energy efficiency renovation projects. We find that homeowners are responsive to the upfront costs of the renovation projects, the savings in energy expenses, the time horizon over which such savings would be realized, and the thermal comfort improvement afforded by such renovations. Even more important, the likelihood of undertaking energy-efficiency renovations increases with the size of the subsidy offered by the Swiss federal government. At least for an average-sized project, we find that the impact of a rebate is comparable to that of an improvement in the thermal comfort of the home. The savings in the annual energy bills and the duration of the investment are less important. The discount rate implicit in the responses to the conjoint choice experiments is low. Depending on the specification of the random utility model, the discount rate ranges from 1.5 to about 3%. This is consistent with the point in Hassett and Metcalf (1993) and Metcalf and Rosenthal (1995), and with the fact that our scenarios contain no uncertainty. Respondents who feel completely uncertain about future energy prices are more likely to select the status quo (no renovations) in any given choice task and weight the cost of the investments more heavily than those respondents who expect energy prices to increase in the future. The hypothetical renovations are more likely to take place when respondents believe that climate change considerations should be an important determinant of home renovations.
    Keywords: energy efficiency, energy savings, choice experiments, discount rates, residential energy use
    JEL: Q40 Q48 D91
    Date: 2011–08
  8. By: Azagra-Caro, Joaquín M.; Pardo, Rafael; Rama, Ruth
    Abstract: The use of universities and public research organisations as a source of information is increasing as firms adopt search strategies based on current models of information use. The theory of this paper is that in order to predict companies? perceptions of the usefulness of such knowledge, their practical experience in technological innovation becomes a determinant, not directly but by enabling certain internal changes which result in firms finding public research more useful. Using a sample of 1,031 Spanish manufacturing firms, we give an illustration of how practical experience in technological innovation produces encounters between three of their choices (to increase in size, the skills of the workforce and the abandonment of strategic innovation) and public research. In reality, the lack of such practical experience produces a ?disencounter? in which only monopolistic firms can take full advantage of public research. Some managerial and policy implications are discussed below.
    Keywords: Public-private R&D interaction; Spain
    JEL: O32
    Date: 2011–09–08
  9. By: Axel Dreher; Andreas Fuchs
    Abstract: Foreign aid from China is often characterized as „rogue aid‟ that is not guided by recipient need but by China‟s national interests alone. However, no econometric study so far confronts this claim with data. We make use of various datasets, covering the 1956-2006 period, to empirically test to which extent political and commercial interests shape China‟s aid allocation decisions. We estimate the determinants of China‟s allocation of project aid, food aid, medical teams and total aid money to developing countries, comparing its allocation decisions with traditional and other so-called emerging donors. We find that political considerations are an important determinant of China‟s allocation of aid. However, in comparison to other donors, China does not pay substantially more attention to politics. In contrast to widespread perceptions, we find no evidence that China‟s aid allocation is dominated by natural resource endowments. Moreover, China‟s allocation of aid seems to be widely independent of democracy and governance in recipient countries. Overall, denominating aid from China as „rogue aid‟ seems unjustified.
    Keywords: Aid allocation; China‟s foreign aid; new donors; donor motives
    JEL: F35
    Date: 2011–09

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