nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2019‒01‒28
eight papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Report for the Commission of Inquiry Respecting the Muskrat Falls Project By Bent Flyvbjerg; Alexander Budzier
  2. Advancing the Innovation Radar - Enhancing Innovation Radar data with financial, patent and Venture Capital data By Vincent Van Roy; Tom Magerman; Daniel Nepelski
  3. How to Set Budget Caps for Competitive Grants By Alessandro De Chiaraa; Elisabetta Iossa
  4. The Rise of NGO Activism By Julien Daubanes; Jean-Charles Rochet
  5. Borrowing Costs and The Role of Multilateral Development Banks: Evidence from Cross-Border Syndicated Bank Lending By Daniel Gurara; Andrea F Presbitero; Miguel Sarmiento
  6. Identifying cooperation for innovation: A comparison of data sources By Fritsch, Michael; Piontek, Matthias; Titze, Mirko
  7. Does sequential decision-making trigger collective investment in automobile R&D? Experimental evidence By Buchmann, Tobias; Haering, Alexander; Kudic, Muhamed; Rothgang, Michael
  8. Os Mega Projetos Imobiliários e Seus Impactos Sociais. O Caso da Ilha Palm Jumeirah By Khuloud Ali; Virginia Vasconcellos

  1. By: Bent Flyvbjerg; Alexander Budzier
    Abstract: This report was commissioned by the Commission of Inquiry Respecting the Muskrat Falls Project to provide the national and international context in which the Muskrat Falls Project took place. The Commission asked for the report to cover three specific topics of questions: (1) What is the national and international context of the Muskrat Falls Project with regards to cost overrun and schedule overrun? (What are the typical cost and schedule overruns of hydro-electric dam projects? How do hydro-electric dams compare to other capital investment projects? How do Canadian projects compare to other countries?), (2) What are the causes and root causes of cost and schedule overruns? (3) What are recommendations, based on international experience and research into capital investment projects, to prevent cost and schedule overruns in hydro-electric dam projects and other capital investment projects? Keywords: Hydroelectric Dams, Megaprojects, Cost Overrun, Schedule Overrun, Optimism Bias, Strategic Misrepresentation, Infrastructure, Capital Investment Projects, Canada, Muskrat Falls
    Date: 2019–01
  2. By: Vincent Van Roy (European Commission - JRC); Tom Magerman (Xinfor – Scientific Information Systems); Daniel Nepelski (European Commission - JRC)
    Abstract: The Innovation Radar (IR) is a European Commission (EC) initiative to identify high-potential innovations and innovators in EC-funded Framework Programme (FP) research and innovation projects and guide project consortia in terms of the appropriate steps to reach the market. This report presents the process and results of linking the IR data with third-party databases to obtain performance information about the key innovators in FP projects identified by the IR. In particular, IR participants identified between March 2014 and January 2018 are enriched with financial information from ORBIS, patent information from PATSTAT and private funding information from Dealroom. This enriched data warehouse aims to facilitate the profilation of IR participants in terms of performance, which can subsequently provide guidance for hands-on policy support initiatives. It creates foundation for future analysis of the determinants and barriers of innovation in EU-funded collaborative projects.
    Keywords: Financial and economic analysis; Composite indicators; ICT R & D and Innovation; Industrial research and innovation; Research and innovation policies; Digital Economy
    Date: 2018–12
  3. By: Alessandro De Chiaraa; Elisabetta Iossa
    Abstract: We study how funding agencies should set budget caps for competitive grants. We show that budget caps influence the researchers’ submission strategy and, in particular, whether they steer their project choice towards the agencies’ favorite projects, and the level of funds they request. The welfare impact of alternative approaches depends on the level of competition, the cost of public funds and the social value of project implementation.
    Keywords: Competitive Grants, Procurement of Innovation, Project Choice, Research Funding, Research Tournament
    JEL: D8 O25 O30 O31 O38 L2
    Date: 2019
  4. By: Julien Daubanes (University of Geneva); Jean-Charles Rochet (University of Geneva, Swiss Finance Institute, and University of Zurich)
    Abstract: Activist non-governmental organizations (NGOs) increasingly oppose firms’ practices. We suggest this might be related to the vulnerability of public regulation to corporate influence. We examine a potentially-harmful industrial project subject to regulatory approval. Under industry influence, the regulator may approve the project even though it is harmful. However, an NGO may oppose it. We characterize the circumstances under which NGO opposition occurs and under which it is socially beneficial. Our theory explains the role that NGOs have assumed in the last decades, and has implications for the social legitimacy of activism and the appropriate degree of transparency of industrial activities.
    Keywords: NGO activism, Public regulation, Industry influence, Private politics, Transparency
    JEL: D02 D74 D82
    Date: 2019–01
  5. By: Daniel Gurara; Andrea F Presbitero; Miguel Sarmiento
    Abstract: Cross-border bank lending is a growing source of external finance in developing countries and could play a key role for infrastructure financing. This paper looks at the role of multilateral development banks (MDBs) on the terms of syndicated loan deals, focusing on loan pricing. The results show that MDBs' participation is associated with higher borrowing costs and longer maturities---signaling a greater willingness to finance high risk projects which may not be financed by the private sector---but it is also associated with lower spreads for riskier borrowers. Overall, our findings suggest that MDBs could crowd in private investment in developing countries through risk mitigation.
    Keywords: Financial inclusion;Cross-border banking;Microfinance;Borrowing;Multilateral development institutions;Developing countries;inancial inclusion, microfinance, loan expansion program, credit reference bureau
    Date: 2018–12–07
  6. By: Fritsch, Michael; Piontek, Matthias; Titze, Mirko
    Abstract: The value of social network analysis is critically dependent on the comprehensive and reliable identification of actors and their relationships. We compare regional knowledge networks based on different types of data sources, namely, co-patents, co-publications, and publicly subsidised collaborative Research and Development projects. Moreover, by combining these three data sources, we construct a multilayer network that provides a comprehensive picture of intraregional interactions. By comparing the networks based on the data sources, we address the problems of coverage and selection bias. We observe that using only one data source leads to a severe underestimation of regional knowledge interactions, especially those of private sector firms and independent researchers. The key role of universities that connect many regional actors is identified in all three types of data.
    Keywords: knowledge interactions,social network analysis,regional innovation systems,data sources
    JEL: O30 R12 R30
    Date: 2019
  7. By: Buchmann, Tobias; Haering, Alexander; Kudic, Muhamed; Rothgang, Michael
    Abstract: We conduct a framed laboratory experiment to gain in-depth insights on factors that drive collective research and development efforts among firms located along the automotive value chain. In particular, we employ a public goods experiment and analyze the influence of sequential decision-making on the willingness to engage in cooperation and on economic welfare. By using a linear value chain setting with three suppliers and one OEM, we analyze vertical R&D cooperation. Our results reveal that contributions increase in situations with sequential decision-making and that sequential decisions increase the overall welfare, even in case of unequally distributed R&D budgets.
    Keywords: public goods experiment,collective innovation,automobile industry,value chain,innovation barriers,sequential decision making
    JEL: C92 D79 O31
    Date: 2018
  8. By: Khuloud Ali; Virginia Vasconcellos
    Abstract: Após Cingapura, Vancouver e Xangai terem vivenciado um forte crescimento e desenvolvimento urbano, Dubai, também testemunhou um desenvolvimento urbano mais rápido. Desde o início de 2001, Dubai tem se esforçado para remodelar sua forma urbana e se juntar à lista das principais cidades globais. Seus megaprojetos, únicos, são uma força motriz no desenvolvimento econômico local. A alta renda derivada da venda de petróleo permite aos cidadãos alcançar altos níveis de renda e qualidade de vida. Políticas flexíveis de Dubai desempenham um grande papel para atrair vários fluxos migratórios. Cerca de 80-90% dos habitantes dos Emirados Árabes Unidos são estrangeiros, o que acarreta sérios desafios para a sustentabilidade política, econômica, social e cultural do País. O objetivo deste trabalho é estudar os efeitos sociais que aparecem por causa desses megaprojetos imobiliários, tendo a Ilha Palm Jumeirah como exemplo. Um estudo de campo foi necessário, devido à falta de pesquisas similares anteriores. Visitar e observar a ilha, diariamente, permitiu uma análise mais apurada da situação que acomete os moradores locais, levando-nos a buscar entender como este processo migratório interfere na sociedade local. Avaliar como se dá a integração população local- imigrantes, e como a população original entende esta fluxo populacional, com hábitos e costumes tão diferentes. A pesquisa foi realizada a partir dessas visitas e contatos com a população local, além de buscas em material bibliográfico e iconográfico sobre o processo migratório em Dubai. Os resultados mostraram que a Ilha Palm Jumeirah, foi planejada pela elite econômica e política, enquanto a população local, não foi consultada sobre seus reais interesses e demandas e não participou do processo de tomada de decisões. Da mesma forma, esta situação gerou uma nova mudança social na localidade e formaram uma nova categoria social, que não necessariamente está ligada a questões econômicas e sim a questões culturais.
    Keywords: Dubai; Ilha de Jumeirah Palma; Jumeirah Island Palma; migração e sustentabilidade social; migration and social sustainability; projetos imobiliários; real estate projects
    JEL: R3
    Date: 2018–09–01

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