nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2016‒03‒06
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Clusters and collective learning networks: the case of the Competitiveness Cluster ‘Secure Communicating Solutions’ in the French Provence-Alpes-Côte d’Azur Region By Christian Longhi
  2. Economic incentives for carbon dioxide storage under uncertainty: A real options analysis By Narita, Daiju; Klepper, Gernot
  3. Optimal Crowdfunding Design By Matthew Ellman; Sjaak Hurkens
  4. Innovation in professional services in a context of disruption By Bailey, Andrew
  5. Strengthening non-state climate action: a progress assessment of commitments launched at the 2014 UN Climate Summit By Sander Chan; Robert Falkner; Harro van Asselt; Matthew Goldberg

  1. By: Christian Longhi (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Since the development of the knowledge based economies, clusters and clusters policies have been the subject of increased interest, as sources of knowledge, innovation, and competitiveness. The paper focuses on a case study drawn from the French cluster policy, the pole of competitiveness ‘Secure Communicating Solutions’ in the French Provence-Alpes-Côte d’Azur Region, based on two high tech clusters, Rousset – Gémenos and Sophia-Antipolis. The policy aims to provide the firms incentives to build network relations of heterogeneous actors to trigger innovative processes. The analysis of the collaborative R&D projects of the pole provides insights on the nature of the collective learning networks working in the clusters as well as the prevailing organizational forms resulting from the firms strategies. It show that knowledge spillovers are not simply “in the air” but very specific of the learning networks and clusters from which they belong. Clusters thus need to be analyzed jointly with networks in order to understand the processes underlying their innovation capacity
    Keywords: Collective Learning Networks,Knowledge,Innovation,Clusters,Cluster Policy,Social Network Analysis
    Date: 2015
  2. By: Narita, Daiju; Klepper, Gernot
    Abstract: Carbon dioxide capture and storage (CCS) is considered to be an important option for reducing carbon dioxide (CO2) emissions. However, there are still concerns about its economic viability, especially if the risk of leakage in the storage site is taken into account. We use a real options approach for assessing the impact of uncertainty on the timing and the profitability of CO2 storage projects. We model an investment decision for a storage site under uncertainty about CO2 leaking from the storage site, about the development of carbon prices, and about the cost of investment. The numerical model results show that investment under these uncertainties requires a much larger price for carbon credits for storage than an investment plan ignoring uncertainty would suggest. We also show under reasonable parameter assumptions that the risk for investing in CO2 storage is dominated by the uncertain development of carbon prices, whereas the risk of carbon leakage has little influence on the investment decision.
    Keywords: carbon dioxide capture and storage (CCS),real options analysis,climate policy
    JEL: D81 Q49 Q54
    Date: 2015
  3. By: Matthew Ellman; Sjaak Hurkens
    Abstract: We characterize optimal reward-based crowdfunding where production is contingent on an aggregate funding threshold. Crowdfunding adapts project-implementation to demand (market-testing) and its multiple prices enhance rent-extraction via pivotality, even for large crowds, indeed for arbitrarily large if tastes are correlated. Adaptation raises welfare and rent-extraction can enhance adaptation, but sometimes distorts production and lowers welfare. Threshold commitment, central to All-Or-Nothing platforms, raises profits but can lower consumer welfare. When new buyers arrive ex-post, crowdfunding’s market-test complements traditional finance and informs subsequent pricing. We prove that crowdfunding is a general optimal mechanism in our baseline.
    Keywords: crowdfunding, Mechanism Design, entrepreneurial finance, market-testing, adaptation, rent-extraction
    JEL: C72 D42 L12
    Date: 2016–01
  4. By: Bailey, Andrew
    Abstract: This research is focussed on how large professional services firms in New Zealand innovate in the context of and as a response to potential disruption. The theory of disruptive innovation describes how incumbents can be overwhelmed by innovative new entrants. Typically these new entrants begin in markets which are unattractive to incumbents because they can’t make money there with their existing business models. Therefore, some have claimed that new businesses must be set up, or various dual approaches adopted, to survive against disruptive new entrants. Semi-structured interviews were held with senior members of large professional services firms to understand their perspective on how innovation is managed in their organisation in the context of potential disruption and the capabilities which support them in doing this. From these interviews, a number of themes emerged which were compared with some of the approaches advocated by the literature in terms of responding to potential disruption. The research found that large professional services firms in New Zealand are focussed on how they can enable innovation from within the firm – typically built off the back of client demand and concentrating on how they work differently with clients, using new methodologies and resourcing models – particularly partnering with third parties to play a service aggregator role – to deliver better outcomes for clients and maintain the professional services firms’ incumbency. At the same time, there are some tentative steps to think about how incubation and/or ‘dual organisations’ might be able to test more disruptive, alternative business models.
    Keywords: Disruptive, Innovation, Professional services,
    Date: 2015
  5. By: Sander Chan; Robert Falkner; Harro van Asselt; Matthew Goldberg
    Abstract: This report provides the first progress assessment of climate actions launched at the 2014 UN Climate Summit in New York. It considers the distribution and performance of climate actions along multiple dimensions that are relevant to both mitigation and adaptation. While it is too early for a conclusive assessment of the effectiveness of climate actions, this study makes a first and indispensable step toward such an assessment. Initial findings are encouraging. One year after their launch, most climate actions have performed well in terms of producing outputs, putting them on track to implementing their commitments in the coming years. The research for this project is underpinned by the Global Aggregator for Climate Actions (GAFCA), a database developed between January and September 2015 by a research team at the German Development Institute/Deutsches Institut für Entwicklungspolitik (DIE) and the London School of Economics and Political Science (LSE). GAFCA includes data on organizational characteristics, geography of implementation and output performance of climate actions. It creates the foundation for a long-term systematic examination of climate actions that can inform more effective efforts to strengthen such actions. Our analysis is focused on three broad questions: â—¾Have organizers of the 2014 UN Climate Summit engaged a wide range of non-state and sub-national actions that set targets relevant to both mitigation and adaptation? â—¾Do climate actions align with the interests of both developing and developed countries, and do they achieve an appropriate balance in implementation in the global North and South? â—¾Have climate actions started to deliver on their commitments one year since they were launched at the 2014 UN Climate Summit? (Output performance)
    Date: 2015–11

This nep-ppm issue is ©2016 by Arvi Kuura. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
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