nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2014‒06‒22
nine papers chosen by
Arvi Kuura
Parnu College - Tartu University

  1. Russian policies in support of innovation: elusive quest for efficiency By Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
  2. Cluster-Entwicklung in einem dreistufigen Modell: Das Fallbeispiel des Berlin-Brandenburger Energietechnik-Clusters By Tomenendal, Matthias; Lange, Hans Rüdiger
  3. Dealing with Technological Risk in a Regulatory Context: The Case of Smart Grids By Paulo Moisés Costa; Nuno Bento; Vítor Marques
  4. Using a multi-criteria decision aid methodology to implement sustainable development principles within an Organization By Myriam Merad; Nicolas Dechy; Lisa Serir; Michel Grabisch; Frédéric Marcel
  5. Undercutting the future? European research spending in times of fiscal consolidation By Reinhilde Veugelers
  6. The Development of Research Assessment in the UK and Italy: Costly and difficult, but probably worth (for a while)" By Geuna, Aldo; Piolatto, Matteo
  7. Innovation et intelligence collective By Philippe Bertheau
  8. Social Network Analysis Methodologies for the Evaluation of Cluster Development Programs By Giuliani, Elisa; Pietrobelli, Carlo
  9. Planning Technique for Complex Economic Object’s Synergy at Mergers and Acquisitions By Levitskiy, Stanislav; Frunze, Igor

  1. By: Simachev, Yuri; Kuzyk, Mikhail; Feygina, Vera
    Abstract: Focused on the efficiency of the Russian innovation-fostering policy, the research is based on an empirical analysis of how policy instruments impact firms’ behavior. The data is obtained from two surveys of more than 600 Russian industrial companies in 2011-2012. The analysis shows that tax incentives are more conducive to innovations with a longer payback period, whereas public funding is more likely to facilitate launching new innovative projects. At the same time, both kinds of innovation support tools are affected by crowding out private funds by public ones. Besides, innovation policy design and administration are not friendly to young companies.
    Keywords: innovation; firm behavior; tax incentives; public subsidies and grants; evaluation of government innovation policy
    JEL: L20 O31 O32 O38
    Date: 2014–01
  2. By: Tomenendal, Matthias; Lange, Hans Rüdiger
    Abstract: Die Entwicklung von Clustern ist ein komplexer Prozess, in dem sowohl zentral und formal initiierte als auch dezentrale und selbst organisierte Aktivitäten der Cluster-Teilnehmer eine Rolle spielen. Untersuchungen zur Clusterentwicklung, die beides betrachten, sind selten. An dieser Stelle setzt der vorliegende Beitrag an, der auf eine strukturationstheoretische Fundierung von Clustern rekurriert und diese mit dem Konstrukt der Netzwerkidentität kombiniert. Auf Basis von Beobachtungen und rezipierten Narrationen im Berlin-Brandenburger Energietechnik-Cluster wird ein dreistufiges Clusterentwicklungs-Modell aus Cluster-Potenzialen, Cluster-Initiativen und Cluster-Projekten entworfen, das im Kern einen identitätsbasierten Strukturationsprozess darstellt. -- Cluster development is a complex process of centrally and formally initiated activities as well as decentral and self-organized processes. Only few authors strive to reconcile the central with the decentral perspective in this context. Here, our paper aims to make a contribution by applying the concept of network identity to the structuration of clusters. Based on observations and collected narratives in the Berlin-Brandenburg Energy Technology Cluster, we develop an identity based model of cluster development with the three stages of cluster potentials, cluster initiatives and cluster projects.
    Date: 2014
  3. By: Paulo Moisés Costa (ESTG, Instituto Politécnico de Viseu and INESC TEC, Portugal); Nuno Bento (ISCTE, Instituto Universitário de Lisboia and Dinâmia'CET-IUL, Portugal); Vítor Marques (Entidade Reguladora dos Serviços Energéticos, Portugal)
    Abstract: This paper aims to analyze the implementation of innovations, featuring technological risk, in network industries through the development of a suitable regulatory scheme. In particular, Smart grid (SG) technologies which have the potential to save operational costs and reduce the need for further investments in the grid, but are still surrounded by many uncertainties which discourage the investment. Therefore, a suitable regulatory scheme should be developed in order to incentivize network operators to invest in SG technologies, besides of conventional investments that yield the regulatory and warranted revenue. Through a decision model, it is shown that incentive regulation encourages the adoption of innovations that enhance efficiency. Yet the consideration of technological risk into the analysis reduces the set of investment opportunities. In addition, the model assesses the impact on firm’s decision of different types of projects that can displace more or less conventional capital and reduce more or less operational costs. Therefore, this paper provides a new tool that can be used to evaluate the effect of different regulatory designs in a wide range of investments with the characteristics of SG.
    Keywords: Economics of regulation; Price-cap; Cost-plus, Technological change; Smart grids.
    JEL: O33 L51 L94
    Date: 2014–06
  4. By: Myriam Merad (INERIS - Institut National de l'Environnement Industriel et des Risques - INERIS); Nicolas Dechy (INERIS - Institut National de l'Environnement Industriel et des Risques - INERIS); Lisa Serir (FEMTO-ST - Franche-Comté Électronique Mécanique, Thermique et Optique - Sciences et Technologies - CNRS : UMR6174 - Université de Franche-Comté - Université de Technologie de Belfort-Montbeliard - Ecole Nationale Supérieure de Mécanique et des Microtechniques); Michel Grabisch (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris); Frédéric Marcel (INERIS - Institut National de l'Environnement Industriel et des Risques - INERIS)
    Abstract: The implementation of Sustainable Development (SD) within an Organization is a difficult task. This is due to the fact that it is difficult to deal with conflicting and incommensurable aspects such as environmental, economic and social dimensions. In this paper we have used a Multi-Criteria Decision Aid (MCDA) methodology to cope with these difficulties. MCDA methodology offers the opportunity to avoid monetary valuation of the different dimensions of the SD. These dimensions are not substitutable for one another and all have a role to play. There is an abundance of possible aggregation procedures in MCDA methodology. In this paper we have proposed an innovative method to choose a suitable aggregation procedure for SD problems. Real life case studies of the implementation of an outranking approach (i.e., ELECTRE) and of a mono-criterion synthesis approach (i.e., MAUT approaches based on the Choquet integral) were done to respectively rank 22 SD strategic actions within an expertise Institute and rank 20 practical operational actions to control energy consumption of the Institute's buildings.
    Keywords: Sustainable Development indicators; Sustainable Development action plan; Multi-Criteria Decision Aid; ELECTRE; Choquet Integral
    Date: 2013
  5. By: Reinhilde Veugelers
    Abstract: Are R&D budgets being smartly used to address growth? How is the crisis affecting public Research & Development budgets across the EU? The crisis seems to have widened the gap between EU countries in public R&I expenditure. Even though the EU budget serves as mechanism to somewhat ease the growing public R&I divide in Europe - EU funds are relatively more significant for innovation-lagging countries with low national R&I budgets - it is crucial to assess whether the effectiveness of these R&I programmes. Understanding the degree to which public R&I budgets in the EU have been used â??smartlyâ?? during the crisis and whether the EU has made â??smartâ?? recommendations on public R&I in the European Semester requires an assessment of the long-term impact on growth. Smart consolidation featuring R&I investment needs to take a long-term perspective and to have sound evaluation frameworks in place to assess whether the potential for high growth returns from public R&I are indeed being realised. Evaluating the effectiveness of public R&I budgets should go beyond assessing short-term additionality impacts. Smart fiscal consolidation by EU member states should include assessments of the longer-term social rates of return.
    Date: 2014–06
  6. By: Geuna, Aldo; Piolatto, Matteo (University of Turin)
    Abstract: This paper provides a comparative analysis of the development of the UK and Italian university research funding systems with special focus on research assessment and its costs. Much of the debate surrounding the value of research assessment and allocation systems hinges on the disadvantages of implementation versus benefits, while there is very little evidence either on its absolute cost or on the cost relative to other allocation systems. Our objective has been to put together the best possible estimates of these costs to inform the ongoing debate. As the experience of the Research Assessment Exercise (RAE) in the UK clearly shows, performance - based research funding is neither easy to develop, nor to implement and it is not readily accepted by the academic community. The Italian research assessment was inspired by the UK RAE and it has benefited from that experience. However, also in the Italian case its implementation was marred by problems and it was resisted by part of the academic community. The potential efficiency gains from research assessment - based allocation system dependon the concentration level and on the reliance on other competitive systems for research funding. The UK and Italy are in opposite situations. For the former further increase in the use of selective systems might well result in minimal benefits that do not cover the additional costs, while for the latter there are quite some margins for efficiency improvements and therefore the benefits gained through selective systems can outweigh the costs.
    Date: 2014–06
  7. By: Philippe Bertheau (LIRSA - Laboratoire Interdisciplinaire de Recherche en Sciences de l'Action - Conservatoire National des Arts et Métiers (CNAM) : EA4603)
    Abstract: Research states that the success of a specific innovation cannot be predicted. As a consequence, the value of such an innovation can only be stated very late in the development process, or even in retrospect. Our empirical research shows that professionals directly engaged in the design process are able to perform an early and complete valuation, and that similar patterns emerge during this valuation process.
    Keywords: innovation, value, innovative design, business model, valuation
    Date: 2014–06–13
  8. By: Giuliani, Elisa (Department of Economics and Management, University of Pisa; CIRCLE, Lund University); Pietrobelli, Carlo (Inter-American Development Bank)
    Abstract: Cluster development programs (CDPs) have been adopted widely in many countries worldwide. Many such programs aim to promote economic development by forming and strengthening inter-organizational networks. Despite their widespread diffusion, we know very little about CDP outputs or the impact CDPs have on host regions and their populations. Evaluation studies are beginning to appear, but the overall concern is that a distinct evaluation concept and method with a focus on CDPs is not yet available. The objective of this paper is to address this limitation, by proposing a novel methodological approach in the evaluation of CDPs based on the application of concepts and methods of social network analysis (SNA).
    Keywords: cluster development programs; policy evaluation; social network analysis
    JEL: O22 O29 Z13
    Date: 2014–06–16
  9. By: Levitskiy, Stanislav; Frunze, Igor
    Abstract: The paper reviews integration problems for complex economic objects aiming to achieve a synergy effect from complementary actions of their assets, which total value exceeds isolated functioning results. In the present times in Ukraine problems concerning assessment of synergy effect at M&A of companies are the new among examining objects and that is why need further development. It is shown that application of system approach to investigation the efficiency integration of economic objects at mergers and acquisitions with regards of process design peculiarities of managerial decisions allows maximum accurate analyzing the results of interaction of economic units within unified integrated structure. So, one of the main reasons to make a bargain on M&A is intention to obtain positive synergy effect because basing on management theory its appearance promotes competitiveness and efficiency increase of the company. According to carried out analysis of existing approaches to assessment of expected synergy effect mostly models offer to calculate one-off synergy effect. It is worth noting that different kinds of synergies can appear not just after combining, but with time, that requires further investigations. It has been proposed a planning mechanism developed on the base of conceptual description the function results for integrated formation, which is the key technique tool for mergers and acquisitions.
    Keywords: Planning Technique, Mergers & Acquisitions, Integration, Complex Economic Object
    JEL: D60 L22
    Date: 2014–04–15

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