nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2016‒10‒09
five papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Financial constraints and the failure of innovation projects By José García-Quevedo; Agustí Segarra-Blasco; Mercedes Teruel
  2. Innovative public-private partnership to support Smart City: the case of “Chaire REVES” By Laurent Dupont; Laure Morel; Claudine Guidat
  3. Nationwide Sustainable Financing Model Structure for Entrepreneurial Solar Photovoltaic Projects By Alsayyed, Nidal; Zhu, Weihang
  4. Administration Costs in the Management of Research Funds; A Case Study of a Public Fund for the Promotion of Industrial Innovation By David R Walwyn

  1. By: José García-Quevedo (IEB, Universitat de Barcelona); Agustí Segarra-Blasco (GRIT, Universitat Rovira i Virgili); Mercedes Teruel
    Abstract: Theoretical and empirical approaches have stressed the existence of financial constraints in firms’ innovative activities. Although a large number of innovation projects are abandoned before their completion, the empirical evidence has focused on the determinants of innovation while failed projects have received little attention. This paper analyses the role of financial obstacles on the likelihood of abandoning an innovation project by using panel data of potential innovative Spanish firms for the period 2005–2013. Our analysis differentiates between internal and external barriers on the probability of abandoning a project and we examine whether the effects are different depending on the stage of the innovation process. Controlling for potential endogeneity, we use a bivariate probit model to take into account the simultaneity of financial constraints and the decision to abandon an innovation project. Our results show that financial constraints most affect the probability of abandoning an innovation project during the concept stage.
    Keywords: barriers to innovation, failure of innovation projects, financial constraints
    JEL: O31 D21
    Date: 2016–09
  2. By: Laurent Dupont (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Laure Morel (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine); Claudine Guidat (ERPI - Equipe de Recherche sur les Processus Innovatifs - UL - Université de Lorraine)
    Abstract: Purpose-French universities can play a key role in generating Smart City approach through an innovative Public-Private Partnership dedicated to urban transformation. Methodology-We led an action-research study for five years with several research and pedagogic projects including users or citizens. Findings-The paper points out main factors of Smart City development. It also presents shared demonstrators’ characteristics including industrial scale, sustainability and citizens’ participation. Practical implications-University of Lorraine diversification strategy through the “Chaire REVES” supported by public and private partners. Social implications-At regional level, industrial-university-territorial partnerships could tackle both societal and economical issues “with”, “for”, and “by” citizens. Originality/value-Based on the Living Lab concept our case study shows a concrete regional university strategy involving: user-centric design, collaborative processes, citizens’ workshops and new financial and organizational answers enabling collaboration between private companies and public institutions. Our paper also argues that innovative public and private partnership involving users are necessary for developing smart cities.
    Keywords: Collaborative innovation, Public-Private Partnership, sustainable urban transformation, diversification strategy, shared demonstrator,Smart City, Living Lab
    Date: 2015
  3. By: Alsayyed, Nidal; Zhu, Weihang
    Abstract: Entrepreneurs in the U.S. solar photovoltaic market businesses operate in fragile institutional settings, which can imply passive ownership and lending based mechanisms by the conduct of the public utility commissions, funding structure of many financial institutions; and associated State and federal environmental policies. In some States (e.g., Nevada), the anti-solar rulings is politicized, and the main risk relates to job losses and less solar projects. In other States (like California) this kind of risk is much lower; nevertheless the financing policies are damaging over the long run, and the lending options are not fit for a sustainable industry. The consequence of the latter for entrepreneurs and project owners is that they are more likely to lobby the government for debt subsidies rather than risk sharing activities. The authors illustrate the current financing approach by focusing on the Clean Renewable Energy Bonds (CREB) in many States nationwide relative to our proposed solar investment certificates model. The paper highlight a tangible and intangible economic exchange activity, and productive financing structure that creates a sustainable economy through a reasonable level of uncertainty in the distribution of subsidies. We present the sustainable metrics and essential stakeholders behind the possible flourishing of such structure. The proposed model will differ among different renewable technology sectors compared with other sectors. Moreover; the paper theorizes that while the performance of utility companies is more affected than the performance of small and medium companies, the impact of federal-induced incentive’s on small companies is actually less obvious. Our framework analysis, based on thousands of databases on utility companies and solar regulatory policies, takes advantage of the regional diverseness across the United States.
    Keywords: Sustainable Investment Certificates (SIC); Solar Photovoltaic; Clean Bonds
    JEL: P28 Q42 Q47
    Date: 2016–06–14
  4. By: David R Walwyn
    Abstract: Research funding agencies routinely use a proportion of their total revenues to support internal administration and marketing costs. The ratio of administration to total costs, referred to as the administration ratio, is highly variable and within any single fund depends on many factors including the number and average size of projects and the overall efficiency of the funding agency. In this study, the standard agency activities have been identified and used to develop a model of administration costs against expected outcomes. In particular, the model has been designed to estimate the optimum portfolio success rate and administration ratio as a function of a range of key input variables including the project size, the complexity of proposal evaluation and project management, the risk tolerance of the sponsor and the targeted research domain.
    Date: 2016–09
  5. By: Karen LaPierre (Leading Coach K.K.); Naomi Wakayama (The University of Tokyo); Toshiro Wakayama (International University of Japan)
    Abstract: While business and society may engage in mutually beneficial, synergistic interactions, they also face the challenge of managing contentious, tradeoff interactions when their objectives are not aligned. In the diverse fields of studies in business and society, these two modes of business-society interactions have been conceptualized rather separately: mutual gains and synergies in concepts such as social innovation and shared value creation on one hand, and tensions and tradeoffs in studies that involve, for example, competing dimensions of corporate sustainability, conflicting priorities of various stakeholders, and opposing institutional logics in hybrid organizations on the other hand. Grounded in paradox theory, which views contentious and synergistic relationships of dual elements such as business and society as two sides of the same coin, we develop a framework for capturing the two types of business-society interactions at the fine-grained micro level. Our extensive case studies, based on publicly available information, illustrate the framework in detail, i.e., how contentious and synergistic interactions occur and their interplay over time within a context of a specific firm and its interactions with the society around it. Our key observation is that synergy creation and tension management are mutually-influencing and tightly integrated processes in the discourse of fine-grained, business-society interactions.
    Date: 2016–09

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