nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2012‒09‒09
four papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Some Theory, Some Ideology and Lots of Pragmatism in the Cost-Benefit Analysis of PPPs By Antonio Estache
  2. Pipeline Power By Franz Hubert; Onur Cobanli
  3. Animal Spirits in Entrepreneurial Innovation: Theory and Evidence By Angela Cipollone; Paolo E. Giordani
  4. Organizational Innovation and its Link with Technological Innovation in SMEs: Empirical Evidence for Lower Normandy – France By Khadidja Benallou; Jean Bonnet; Mohammad Movahedi

  1. By: Antonio Estache
    Abstract: This paper reviews the theoretical debates on the extent to which PPP demands changes in how cost-benefit analysis needs to be conducted for public projects. It presents first a simple conceptual discussion which shows that the comparison between PPP and public procurement boils down to: (i) the difference between the discount rate and the total cost difference between the best PPP bid and the best public sector option (including in the cost difference the allocation of operational risks and the likelihood of these risks). It then looks at international practice and shows that pragmatism, and sometimes ideology, dominates theory in the use of cost benefit analysis to compare the two forms of provision.
    Date: 2012–08
  2. By: Franz Hubert (Humboldt–Universitat zu Berlin); Onur Cobanli (Humboldt–Universitat zu Berlin)
    Abstract: We use cooperative game theory to analyze the impact of three controversial pipeline projects on the power structure in the Eurasian trade of natural gas. Two of them, Nord Stream and South Stream, allow Russian gas to bypass transit countries, Ukraine and Belarus. Nord Stream’s strategic value turns out to be huge, justifying the high investment cost for Germany and Russia. The additional leverage obtained through South Stream, in contrast, appears small. The third project, Nabucco, aims at diversifying Europe’s gas imports by accessing producers in Middle East and Central Asia. It curtails Russia’s power, but the benefits accrue mainly to Turkey, while the gains for the EU are negligible.
    Keywords: Bargaining Power, Network, Trade links, Natural Gas
    JEL: L5 L9 O22
    Date: 2012–09
  3. By: Angela Cipollone (Department of Economics and Finance, LUISS Guido Carli University); Paolo E. Giordani (Department of Economics and Finance, LUISS Guido Carli University)
    Abstract: This paper proposes and empirically tests a theory of entrepreneurial innovation in order to explain its high degree of concentration in space and time. In the model, a successful entrepreneurial project is the result of a search and matching process between entrepreneurs looking for funds and capitalists looking for new ideas to finance. The resulting strategic complementarity between them gives rise to a multiplier effect, whereby any exogenous shock has a magnified effect on the process of innovation. Moreover, if complementarity is sufficiently strong, multiple equilibria arise, which are characterized by different levels of entrepreneurial activity. Using data from the European and the US business angels markets for the period 1996-2010, we show that (i) a complementarity exists between business angels and the entrepreneurial projects submitted to them, and that (ii) the result of multiple equilibria is empirically plausible.
    Keywords: Entrepreneurship, financing of innovation, search and matching, strategic complementarities, venture capital, business angels.
    JEL: D83 C78 L26
    Date: 2012
  4. By: Khadidja Benallou (Phd student - UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211); Jean Bonnet (UFR de sciences économiques et de gestion, University of Caen Basse-Normandie - CREM-CNRS, France); Mohammad Movahedi (Phd student - UFR de sciences économiques et de gestion, Université de Caen Basse-Normandie, CREM-CNRS, UMR 6211)
    Abstract: In the present study, we define synthetic and relevant indicators of organizational innovation and measure the link of these indicators with various types of technological innovations (product innovation, process innovation, and hybrid innovations). They are constructed from sixteen variables reflecting organizational innovation with the aid of multiple correspondence analysis (MCA) method. The variables are grouped in five categories corresponding to different aspects of organizational changes, such as training & qualification, knowledge management, production management, quality, and market transaction. We then use a regression to estimate the link between organizational innovation indicators and technological innovations (product, process and their interaction). The original database exploited is part of the IDEIS project and relates to a representative sample of 90 SMEs in Lower Normandy - France. Our estimated indicators interpret the Intensity of the implementation of the Organizational Changes (IOC) and the orientation of the Organizational Innovation Strategies adopted (OIS). We find a positive and significant link between IOC and technological innovation (product innovation, process innovation, and hybrid innovations), particularly so for product innovation. However, we find no clear link between the choice of the OIS and technological innovation.
    Keywords: Indicators of organizational innovation, product and process innovation, innovation strategy, quality of human resources, training.
    JEL: D23 O33 C81 C2
    Date: 2012–07

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