nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2012‒10‒13
thirteen papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Incentive Design and Manager Performances: an ABM Approach By Concetta Sorropago
  2. Can open source projects succeed when the producers are not users? Lessons from the data processing field. By Nicolas JULLIEN; Karine Roudaut
  3. Entrepreneurial innovations and taxation By Haufler, Andreas; Norbäck, Pehr-Johan; Persson, Lars
  4. Private Low-Cost Housing and the Peri-Urban Frontier: The economics of building outside Indian cities By Nikhilesh Sinha; Shahen Dastur
  5. Long-run impacts assessment of planned motorways and expressways in the Czech Republic By Milan Viturka; Vilém Paril; Petr Tonev
  8. TERRITORIAL COOPERATION WITH NON-EU REGIONS By Juan Carlos Rodriguez-Cohard; Javier Alfonso; Antonio Vázquez-Barquero
  9. Joint knowledge generation in European R&D networks: Results from a discrete choice modelling perspective By Florian Reinold; Manfred Paier; Manfred M. Fischer
  10. Conflicts over compensation of expropriation. The case of farmland in France. By Romain MELOT
  11. Community Preferences, Insurgency, and the Success of Reconstruction Spending By David Scoones; Travers Barclay Child
  12. Cross Border Collaboration: A Network Analysis of the Bilateral Collaborative Projects in the Case of Greece and Bulgaria By Ioannis Katsikis; Garyfallos Fragidis; Dimitrios Paschaloudis

  1. By: Concetta Sorropago (University of Roma "Tor vergata", Italy)
    Abstract: We present a simplified model to provide a virtual laboratory to test the effects of the use of different performance evaluation measures to design manager’s incentives in a project-based professional service organization. Our company’s owner has to cope with the scheduling of multiple resource constraint projects in real time (RCMPSP), and with the design of the production manager incentive, whose variable wage is tied to some measures of the performance, which are proxies of the original owner’s goal. We propose an agent based model approach where the agents’ intelligence lies in the choice of the scheduling sequences. A discrete event simulator (DES) executes the projects, allocating in real time, the limited resources available. A Genetic Algorithm, evolving the sequence, randomly generated, uses the DES to simulate the effect and ranks the solutions. In this way, we investigate the incentive alignment problem as a resource allocation problem, comparing the results deriving from their respective "good solutions".
    Keywords: Complex System Dynamics, Resource constrained multi project scheduling, Incentive Design, Performance Evaluation Measures, Genetic Algorithm
    JEL: C63 D23 L2 M12
    Date: 2012–05
  2. By: Nicolas JULLIEN (LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - Institut Télécom - Télécom Bretagne - Université Européenne de Bretagne (UEB), M@rsouin - Môle armoricain de recherche sur la société de l'information et les usages d'internet - Groupement d'intérêt scientifique); Karine Roudaut (LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - Institut Télécom - Télécom Bretagne - Université Européenne de Bretagne (UEB), M@rsouin - Môle armoricain de recherche sur la société de l'information et les usages d'internet - Groupement d'intérêt scientifique)
    Abstract: Free/Libre Open Source Software (FLOSS) proposes an original way to solve the incentive dilemma for the production of information goods, based on von ippel's user-as-innovator principle (1988): as users benefit from innovation, they have incentive to produce it, and as they can expect cumulative innovation on their own proposition, they have incentive to share it. But what is the incentive for producers when they are not users? We discuss this question via a quantitative study of FLOSS projects in "algorithm-based industries". We find that in that case producers hardly participate in such projects.
    Keywords: Knowledge economics, Sociology, Open source, Science, Standardization, JEL: O31, O32
    Date: 2012
  3. By: Haufler, Andreas; Norbäck, Pehr-Johan; Persson, Lars
    Abstract: Stimulating entrepreneurship is high on the policy agenda of many countries. We study the effects of tax policies on entrepreneurs’ choice of riskiness (quality) of an innovation project, and on their mode of commercializing the innovation (market entry versus sale). Limited loss offset provisions in the tax system induce entrepreneurs innovating for entry to choose projects with inefficiently little risk, whereas this imperfection does not arise when innovating for sale. Tax systems which systematically favor market entry of entrepreneurs can thus lead to welfare losses due to inefficient quality choices, despite leading to more competition in the product market.
    Keywords: business taxation; innovation; market entry
    JEL: H25 L13 M13 O31
    Date: 2012–09
  4. By: Nikhilesh Sinha; Shahen Dastur
    Abstract: This paper examines the role that the private sector can play in the creation of low-cost housing stock in India. We use theoretical and empirical evidence to establish the optimality of locating low-cost housing projects in peri-urban areas, and illustrate this with a case study of a successful low-cost housing project in Shapar-Veraval district in Gujarat. We conclude by suggesting that an infrastructure subsidy for low-cost developments in peri-urban locations may spur investment and additionally make housing more accessible to low-income groups.
    Date: 2012–10
  5. By: Milan Viturka; Vilém Paril; Petr Tonev
    Abstract: In a large number of countries (including the Czech Republic), implementation of large projects of transport infrastructure is justified by a general reference to its broad economic benefits, which are, however, seldom further specified. One of important reasons for such an approach is the non-existence of an empirically verified model for complex assessment of the degree of necessity of the development of these projects. Therefore, the main objective of the paper is to present an original method for comparative assessment of motorway and expressway constructions. The method has been applied to eight cases of the most significant projects planned in the Czech Republic verifying that its use can provide the necessary information on their potential benefits (in spite of some simplifications). The methodology for the generalized assessment attempts to connect technical, economic, political, spatial and environmental aspects and includes five basic criteria: relevance (traffic intensity as the underlying factor determining the technical need for a project), usefulness (time saved in personal transport and haulage, due to the insecurity concerning future transport flows interpreted by relative values derived from design speeds), integration (strategic significance of the projects regarding the connection of the most significant residential areas and the connection with neighbouring countries), stimulation (economic impacts assessed based on a potential improvement of the factor of road and railway quality as an integral part of the regional quality of business environment), and sustainability (environmental impacts of the construction on more significant residential centres and selected protected areas, with emphasis on pollution and noise). The complex assessment of selected projects of motorways (D) and express ways (R) has been performed based on an aggregation of rankings of the projects within the defined criteria. The projects were then divided into three groups: projects where need for construction has been proven, has been found disputable or has not been proven. The first group contains R 55), D 3 and R 35. However, this does not mean that there are no drawbacks – e.g. R 35 has the lowest ranking within the sustainability criterion. The second group contains D 11 and R 49. The assessment of their construction has been negatively affected by their ranking within the usefulness and stimulation criteria (D 11), and relevance and integration criteria (R 49). The position of the projects in the third group, R 6, R 7 and R 43 follows from their bad ranking within most of the established criteria (R 6 and R 7 – three criteria; R 43 – all criteria except usefulness).
    Date: 2012–10
  6. By: Boar Nicolae; Kosinszki Sorin
    Abstract: TOURISM COOPERATION PROJECTS IN THE CROSS BORDER ROMANIAN-UKRAINIAN MARAMURES. VECTORS FOR SUSTAINABLE DEVELOPMENT? BOAR Nicolae, KOSINSZKI Sorin 'Babes-Bolyai' University Cluj Napoca, Faculty of Geography, Sighetu Marmatiei Academic Extension ROMANIA Abstract The tourism cross border cooperation is an integrated model of this type of cooperation, as it is situated at a common point of several cross border fields of activity determined by social and economic phenomena, environmental processes, and territorial planning strategies but also by cultural manifestations. The tourism field of activity, within regional or local cross border relations, is the strongest binding element, where it can materialize very well due to the smaller extent of the area. While stating this, we bear in mind the fact that the tourism influence is complex at an economic, social but also cultural level – the affinity based on mutual heritage from the border areas. The tourism cross border cooperation field, involves mainly the productive use of the common tourism resources, the harmonization of transport and access infrastructure, but mostly accommodation, as well as a common policy concerning the organising of cultural events. The nowadays project regions overlap, in most cases, the ancient historical regions, which prove their functional aspect once more, also from the complex perspective that development projects imply. In the case of the Maramures Land, or Historical Maramures (which comprises as a cross border ethnographical and historical entity, a territory from the Maramures County – Romania and also from The Transcarpathia Region – Ukraine) the opportunity for gradual development of cross border tourism with Ukraine is granted mostly by the partnership for development projects, with funding from the financing authority of The Neighbourhood Programme Romania - Ukraine 2004-2006, PHARE Cross Border Cooperation, through the Romanian Ministry of Development, Public Works and Housing starting with January 2007. This financing instrument evolved during 2009 into a new programme – ENPI (European Neighbourhood and Partnership Instrument). The importance of the financing funds for the cross border tourism cooperation, but not only that, is thus becoming overwhelming, taking into consideration the large amounts of money that needs to be used from establishing proper transport and accommodation infrastructure in a cross border area to the implementation of integrated cross border tourism marketing or maintaining quality cultural relations through specific events. The cross border partnerships for tourism development projects have insured, through the funds of the above mentioned PHARE CBC Programme, substantial tourism prospective research and integrated marketing for the Maramures (RO) - Transcarpathia (UA) region. Key-words: projects, Maramures, Romania, Transcarpathia, Ukraine, cross border cooperation, tourism, PHARE, ENPI CBC, sustainable development.
    Date: 2012–10
  7. By: Moumouni, Ismail; Tovignan, Silvere D.; Baco, Mohamed N.; Nouatin, Guy
    Abstract: Understanding how local stakeholders participate in designing and implementing development projects is important to improve their effectiveness. This study used three case studies of privatisation reform of agricultural research and extension in Benin, to analyse recent trends in the participation of farmers, public and private organisations in implementing and designing reforms. Thematic and comparative analyses were performed on qualitative data collected during direct observation and semi-structured interviews with different stakeholders. The finding indicated that although participation was generally considered as requirement for developing high quality services, its importance in designing appropriate service delivery and funding reforms was underestimated or ignored.
    Keywords: Agricultural research and extension, Benin, Development project, Privatisation, Community/Rural/Urban Development, Teaching/Communication/Extension/Profession,
    Date: 2012
  8. By: Juan Carlos Rodriguez-Cohard; Javier Alfonso; Antonio Vázquez-Barquero
    Abstract: TERRITORIAL COOPERATION WITH NON-EU REGIONS Territorial Cooperation (TC) has been possible because there is a trajectory of many years of work invested by the local actors, participants who have become the architects of TC through the city or region involved. Transcontinental cooperation as studied by the European Union TERCO project is providing important lessons for understanding TC. The purpose of the presentation is to analyze the Andalusian-North of Morocco territorial cooperation during the last twenty years. Twinning cities, bilateral cooperation agreements and networks have structured participation in projects with varying degrees of impact on the economic, social, urban and environmental conditions. The initiatives have always been local and with a bottom-up approach. The management capacity of key organizations working in a descentralized way and their background on local development governance have made available the implementation of local iniciatives. The projects with the best results are those that are carried out jointly and adapt to Moroccan needs in agreement with its territorial development strategy which was previously defined. Special institutional and cultural mechanisms of developing in both sides of Mediterranean Sea were very helpful. The institutional weaknesses and the complexity of decision-making mechanism in Andalusia and Morocco can make relations difficult and therefore territorial cooperation weak. Territorial Cooperation needs to be flexible enough to respond to changes in the socio-economic environment. The case study of Andalusia-North of Morocco shows that local economic development (e.g. technological innovation or international trade) are important. These issues are usually approached through public-private coordination organizations, such as development agencies. As shown by some other case studies of the TERCO project the results of the participation of such agencies are still modest. Special attention should be given to TC with Morocco due to geo-strategic relations both with Spain and Europe. Not only are there sporadic problems of a bilateral strategic nature between Spain (EU) and Morocco at the Central Government level which can affect decentralized TC, but also, problems with illegal migration (an EU concern), and difficulties in acquiring visas to travel for the cooperating agents, could very well jeopardize TC initiatives. Key words: Territorial Cooperation, Local Development, Governance. JEL codes: O15, O43, R58.
    Date: 2012–10
  9. By: Florian Reinold; Manfred Paier; Manfred M. Fischer
    Abstract: The objective of this study is to explore the determinants of joint knowledge generation within European networks of R&D collaboration. This study distinguishes between two types of joint knowledge generation: scientific and commercially relevant knowledge generation. Joint generation of scientific knowledge is measured by co-authored scientific publications, while joint commercially relevant knowledge is measured by co-owned patents and artefacts. Unit of analysis are dyads of organisations jointly participating in projects of the 5th EU Framework Programme (FP5). The data for carrying out this study is taken from a survey among FP5 participants and the EUPRO database. 23 EU member countries (Bulgaria, Cyprus, Malta and Rumania are excluded) plus Switzerland and Norway are included. Regression methods for discrete choice (logit and probit) are employed to meet the objective. The independent variables taken into consideration encompass the types of organisations involved in the dyad, geographical and cultural obstacles, relational factors and project characteristics. Results show that dyads involving universities have the highest probability not only to jointly generate scientific knowledge but also to jointly generate commercially relevant knowledge, whereas the involvement of an industry organisation results in a low probability for both types of knowledge generation. Perhaps, this can be attributed to the fact that joint knowledge generation entails disclosure of own knowledge, which is actually a task of universities but is problematic for industry organisations. Another important result is that crossing national border has a significant positive rather than negative effect on joint scientific knowledge generation, which is essentially a consequence of how the Framework Programmes had been set up. Similarly, crossing EU-15 external border has a positive effect on joint knowledge generation, indicating that the FPs work well in achieving their aim of supporting the catching up process of CEE countries. But, joint generation of commercially relevant knowledge is negatively influenced by language borders. This can be explained by the fact that the co-development of patentable knowledge or artefacts requires more intensive and complex interactions than to co-author a scientific publication where English is the lingua franca anyway. Results on relational factors and project characteristics satisfy expectations: Duration of collaboration and the existence of previous collaboration have a positive effect on joint knowledge generation, whereas the project size, measured by number of participants, affects joint knowledge generation negatively.
    Date: 2012–10
  10. By: Romain MELOT
    Abstract: From a legal sociology perspective, the research presented here aims to show that the legal claims strategies in matters of land expropriation cannot be satisfactorily explained without taking into account observable judicial practices at a local level. Indeed, the characteristics of real estate assets, both their private use and public management, are essential elements which explain why within the framework of public use projects, either negotiated settlement or, on the contrary, referral to court, is prescribed as the relevant context for determining compensation. This review of the current state of the law concerns two aspects which are different but both strongly nested in local land systems. First, we find the situation of individuals with regard to the rights they possess over real estate assets. Indeed, when we speak about land expropriation, it is above all in relation to the stakes behind owners’ property rights. But the law also provides for the protection of the rights of non-owners, such as lease-holders endowed with land-use rights whose business interests may be adversely affected by land development projects. As discussed further in the paper, this situation is unavoidable when dealing with the expropriation of land supporting economic activity in which land leasing is a widespread practice, such as agriculture in France. In terms of public law, it is essential to take into account local judicial practices, not only to understand the structure of disputes between condemnor and condemnee, but also to explain the decision to go to court. Regulatory practices in matters of urban development projects clearly influence the nature of building permits associated with developed and undeveloped sites. The type of zoning, the building code for construction and extension of existing structures and building standards for public infrastructure projects (land reclamation, roadbuilding, electricity, water…) are all factors which directly influence land value estimates. It seems reasonable, then, to posit the idea that land disputes often directly reflect local urban building codes and, consequently, policies implemented by local authorities. We wish to further underline the fact that eminent domain is very often exercised within the context not of large infrastructure projects but of ordinary urban development. Recourse to ‘public use’ prerogatives is thus used as a complement to urban planning policies.
    Date: 2012–10
  11. By: David Scoones (Department of Economics, University of Victoria); Travers Barclay Child
    Abstract: A model of reconstruction spending by an occupying force is developed, in which the local population may have different preferences over the allocation of spending than the occupier. When the spending allocation is misaligned with local preferences an insurgency among some members of the community may result. Depending on the effectiveness of the insurgency, local opposition may constrain the ability of the occupier to implement its most preferred spending allocation. In equilibrium, the occupier may tolerate some level of insurgency to approach its ideal, but naive insistence on a most preferred allocation may lead to fewer projects of any kind being completed. The model suggests that winning the hearts and minds of a local population is less a question of how much money is invested in reconstruction than of how that money is allocated across projects of different kinds.
    Keywords: development and insurgency, conflict
    JEL: H56 O38 N4
    Date: 2012–10–01
  12. By: Ioannis Katsikis; Garyfallos Fragidis; Dimitrios Paschaloudis
    Abstract: Although neighboring countries and both members of the EU, Greece and Bulgaria have very different social and economic environments in which entrepreneurial activities take place. At the same time, collaborative activities and research on economic and social cohesion and development between the organizations of Greece and Bulgaria is only minimal. In this empirical paper, we study the collaborative projects initiated by the organizations of the countries in order to understand the collaborative status of the two nations, their priorities and targets. Thus, we analyse the 34 research project proposals funded by the European Territorial Cooperation Program Greece-Bulgaria 2007-2013, (Interreg IV). Interreg IV is an EU initiative which aims to stimulate interregional cooperation in the EU between the years 2007-13. It is financed under the European Regional Development Fund (ERDF). This phase of the Interreg initiative is designed to strengthen economic and social cohesion throughout the EU, by fostering the balanced development of the continent through cross-border, transnational and interregional cooperation. Special emphasis has been placed on integrating remote regions and those which share external borders with the candidate countries. The eligible areas of the programme in the case of Greece and Bulgaria, contains seven Regional Units (former Prefectures) on the Greek side (Evros, Kavala, Xanthi, Rodopi, Drama, Thessaloniki and Serres) and four Districts on the Bulgarian side (Blagoevgrad, Smolyan, Kardjali, Haskovo), covering an area of 40.202 km2 and 2.812.236 inhabitants. In our work we performe a network analysis in order to examine data relevant to the project¢s priority axis, the number of the partners involved, the type of the partners and their nationality. Our analysis provides interesting results for the specific organizations, the conditions and the targets of the projects for which they choose to collaborate under the specific EU funded scheme. Furthermore, our research sheds light on the competences and the competitive advantages for the partner¢s selection process. Based on those results, our paper concludes by providing insights on the regional and organizational strategies for the internationalization and the development of bilateral collaboration between the organizations of the two countries that could contribute positively in responding to the current economic crisis in Greece. Keywords: cross border cooperation, international entrepreneurship, Greece, Bulgaria JEL Codes: L26, F23, F21
    Date: 2012–10
  13. By: Raffaello Bronzini; Eleonora Iachini
    Abstract: This paper contributes to the literature on the effectiveness of R&D incentives by evaluating a unique investment subsidy program implemented in northern Italy. Firms were invited to submit proposals for new projects and only those that scored above a certain threshold received the subsidy. We use a sharp regression discontinuity design to compare investment spending of subsidized firms just above the cut-off score with spending by firms just below the cut-off. For the sample as a whole we find no significant increase in investment as a result of the program. This overall effect, however, masks substantial heterogeneity in the program’s impact. On average, we estimate that small enterprises increased their investments by about the amount of the subsidy they received from the program, whereas for larger firms the subsidies appear to have had no additional effect.
    Date: 2012–10

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