nep-ppm New Economics Papers
on Project, Program and Portfolio Management
Issue of 2022‒04‒04
seven papers chosen by
Arvi Kuura
Tartu Ülikool

  1. Market Power and Artificial Intelligence Work on Online Labour Markets By DUCH BROWN Nestor; GOMEZ-HERRERA Estrella; MUELLER-LANGER Frank; TOLAN Songul
  2. Transparency principle for carbon emissions drives sustainable finance By Chris Kenyon; Mourad Berrahoui; Andrea Macrina
  3. Engaging citizens in cohesion policy: DG REGIO and OECD pilot project final report By OECD
  4. Vers une meilleure compréhension de la transformation numérique optimisée par lâIA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire By Amir Taherizadeh; Catherine Beaudry
  5. Innovation ouverte et écosystème dâinnovation : Implications pour le secteur public By Simon Bourdeau; Amandine Pascal; Mathieu Templier; Thibaut Coulon
  6. Developing successful transnational education hubs: Key challenges for policy makers By Rottleb, Tim; Kleibert, Jana M.; Schulze, Marc
  7. Innovative capacity of governments: A systemic framework By Misha Kaur

  1. By: DUCH BROWN Nestor (European Commission - JRC); GOMEZ-HERRERA Estrella; MUELLER-LANGER Frank; TOLAN Songul (European Commission - JRC)
    Abstract: We investigate three alternative but complementary indicators of market power on one of the largest online labour markets (OLMs) in Europe: (1) the elasticity of labour demand, (2) the elasticity of labour supply, and (3) the concentration of market shares. We explore how these indicators relate to an exogenous change in platform policy. In the middle of the observation period, the platform made it mandatory for employers to signal the rates they were willing to pay as given by the level of experience required to perform a project, i.e., entry, intermediate or expert level. We find a positive labour supply elasticity ranging between 0.06 and 0.15, which is higher for expert-level projects. We also find that the labour demand elasticity increased while the labour supply elasticity decreased after the policy change. Based on this, we argue that market-designing platform providers can influence the labour demand and supply elasticities on OLMs with the terms and conditions they set for the platform. We also explore the demand for and supply of AI-related labour on the OLM under study. We provide evidence for a significantly higher demand for AI-related labour (ranging from +1.4% to +4.1%) and a significantly lower supply of AI-related labour (ranging from -6.8% to -1.6%) than for other types of labour. We also find that workers on AI projects receive 3.0%-3.2% higher wages than workers on non-AI projects.
    Keywords: Online labour markets, artificial intelligence, market power, exogenous change in platform policy
    Date: 2022–02
  2. By: Chris Kenyon; Mourad Berrahoui; Andrea Macrina
    Abstract: Alignment of financial market incentives and carbon emissions disincentives is key to limiting global warming. Regulators and standards bodies have made a start by requiring some carbon-related disclosures and proposing others. Here we go further and propose a Carbon Equivalence Principle: all financial products shall contain a description of the equivalent carbon flows from greenhouse gases that the products enable, as well as their existing description in terms of cash flows. This description of the carbon flows enabled by the project shall be compatible with existing bank systems that track cashflows so that carbon flows have equal standing to cash flows. We demonstrate that this transparency alone can align incentives by applying it to project finance examples for power generation and by following through the financial analysis. The financial requirements to offset costs of carbon flows enabled in the future radically change project costs, and risk that assets become stranded, thus further increasing costs. This observation holds whichever partner in the project bears the enabled-carbon costs. Mitigating these risks requires project re-structuring to include negative emissions technologies. We also consider that sequestered carbon needs to remain sequestered permanently, e.g., for at least one hundred years. We introduce mixed financial-physical solutions to minimise this permanence cost, and price to them. This complements previous insurance-based proposals with lesser scope. For financial viability we introduce project designs that are financially net-zero, and as a consequence are carbon negative. Thus we see that adoption of the Carbon Equivalence Principle for financial products aligns incentives, requires product redesign, and is simply good financial management driving sustainability.
    Date: 2022–02
  3. By: OECD
    Abstract: Around one-third of the European Union’s budget is dedicated to cohesion policy, which promotes and supports the overall harmonious development of its Member States and regions. The success of this investment relies on effective partnerships among governments, stakeholders, and citizens. Citizens have a key role to play in shaping decisions on public investment, as well as in making public authorities more transparent and accountable. From July 2020-December 2021, the European Commission and the OECD partnered to explore how five authorities across Europe could place citizens at the centre of their investment decisions. This report summarises lessons learned throughout this project and, particularly, the results of applying innovative citizen participation methods to cohesion policy more broadly.
    Date: 2022–03–09
  4. By: Amir Taherizadeh; Catherine Beaudry
    Abstract: This report presents the main results of the qualitative and exploratory study aimed at explaining how artificial intelligence (AI), as general-purpose technology (GPT), impacts firm-level productivity and employment. Analyzing primary and secondary data sources (including 27 interviews, reports, and panel discussions), we first develop the maturity spectrum of AI adoption and classify small and medium-sized enterprises (SMEs) that integrate AI into their work processes into four archetypes: The Wishful, The Achievers, The Leaders, and The Visionaries. By characterizing each archetype, we highlight nuances of changes that need to take place for a firm to further progress to the next stage of AI adoption. Second, we identify and explain seven barriers that are associated with the pervasive integration of AI among SMEs in manufacturing industries. Third, in three distinct case studies, we explore three AI projects conducted by Quebec-based AI-focused firms to show how machine learning (ML) integration into products and work processes can act as a productivity enhancer and identify its impact on firm-level employment. Overall, our results suggest that successful AI integration requires a firm-level digital transformation which we illustrate as a continuum. In the early stages of adoption (including firms in The Wishful and The Achievers classes) where AI adoption is project-centric, firms’ employment tends to increase in parallel with productivity gains. The much-needed upskilling of the existing workforce also occurs at the same time. Further, as firms integrate AI on an enterprise-wide scale (The Leaders and The Visionaries) and increase the level of their innovation activities, firm-level job losses are experienced in parallel to productivity gains. Next, we introduce indirect indicators of AI pervasiveness as more realistic measures to evaluate the rate of AI adoption by SMEs in a fluid stage. Finally, we propose four recommendations that have implications for researchers, practitioners as well as policymakers. To quote this document Taherizadeh, A. and Beaudry C. (2021). Vers une meilleure compréhension de la transformation numérique optimisée par l’IA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire (2022RP-04, CIRANO). Ce rapport présente les principaux résultats d’une étude qualitative exploratoire visant à examiner l’impact de l’intelligence artificielle (IA), en tant que technologie à usage général (TUG) sur la productivité et l’emploi à l’échelle de l’entreprise. À la suite de l’analyse de sources de données primaires et secondaires (comprenant 27 entretiens, rapports et discussions de groupe), nous établissons d’abord une échelle de maturité de l’adoption de l’IA et un classement des petites et moyennes entreprises (PME) qui intègrent l’IA dans leurs processus de travail en quatre archétypes : l’Aspirant, le Fonceur, le Leader et le Visionnaire. Nous définissons chaque archétype de façon à mettre en évidence les changements particuliers à opérer pour qu’une entreprise puisse passer à l’étape suivante de l’adoption de l’IA. Deuxièmement, nous définissons et examinons sept obstacles à l’adoption généralisée de l’IA par les PME manufacturières. Troisièmement, à l’aide de trois études de cas, nous explorons trois projets d’IA menés par des entreprises québécoises axées sur l’IA afin de montrer, d’une part, l’apport de l’intégration de l’apprentissage automatique (AA) aux produits et aux processus de travail sur le plan de la productivité des entreprises, et d’autre part son effet sur leurs effectifs. Dans l’ensemble, les résultats de notre étude suggèrent que la réussite de l’intégration de l’IA nécessite une transformation numérique au niveau de l’entreprise, que nous présentons comme un continuum. Dans les premières étapes, où l’adoption de l’IA se fait autour de projets (en particulier pour les entreprises des catégories Aspirant et Fonceur), les effectifs des entreprises ont tendance à augmenter parallèlement aux gains de productivité en même temps que le perfectionnement indispensable des compétences de la main-d’œuvre existante. En outre, lorsque l’IA est déployée à l’échelle de l’entreprise (chez les Leaders et les Visionnaires) et que cette dernière rehausse le niveau de ses activités d’innovation, on enregistre plutôt des pertes d’emploi parallèlement aux gains de productivité. Par la suite, nous introduisons des indicateurs indirects de l’omniprésence de l’IA, car nous estimons qu’il s’agit de mesures plus réalistes pour évaluer le taux d’adoption de l’IA par les PME en phase fluide. Enfin, nous proposons quatre recommandations qui ont des implications pour les chercheurs, les praticiens et les responsables politiques. Pour citer ce document Taherizadeh, A. et Beaudry C. (2021). Vers une meilleure compréhension de la transformation numérique optimisée par l’IA et de ses implications pour les PME manufacturières au Canada - Une recherche qualitative exploratoire (2022RP-04, CIRANO).
    Keywords: Artificial intelligence,Digital transformation,General Purpose Technology,Employment,Machine learning,Productivity,Manufacturing,Technological Innovation, Intelligence artificielle,Transformation numérique,Technologies à usage général,Emploi,Apprentissage automatique,Productivité,Secteur manufacturier,Innovation technologique
    JEL: C80 D20 L60 M50 O10
    Date: 2022–03–11
  5. By: Simon Bourdeau; Amandine Pascal; Mathieu Templier; Thibaut Coulon
    Abstract: Deploying open innovation initiatives is a risky and demanding venture for all types of organizations, but especially for public sector organizations (PSOs). This study identified 17 challenges, grouped in four categories, related to OI deployment: 1) Inter-organizational collaboration, 2) Innovation process, 3) Citizen engagement, and 4) Data and technology, as well as 18 good practices/organizational actions to increase the probability of success. Finally, two case studies, PULSAR and Cité de l'innovation et des savoirs Aix-Marseille (CISAM), were conducted to better understand how these practices can meet the challenges, while promoting value creation during the innovation cycle. To quote this document Bourdeau, S., Coulon, T., Pascal, A. and Templier, M. (2021). Innovation ouverte et écosystème d’innovation : Implications pour les organisations du secteur public (2022s-05). CIRANO. Le déploiement d’initiatives d’innovation ouverte représente, pour tous types d’organisations et plus particulièrement pour les organisations du secteur public (OSP), une aventure risquée et exigeante. La présente étude a identifié 17 défis, regroupés dans quatre catégories, liés au déploiement d’IO : 1) Collaboration inter-organisationnelle, 2) Processus d’innovation, 3) Implication des citoyens et 4) Données et technologies, ainsi que 18 bonnes pratiques/actions organisationnelles permettant d’augmenter les probabilités de succès. Finalement, deux études de cas, PULSAR et Cité de l’innovation et des savoirs Aix-Marseille (CISAM) , ont été réalisées, afin de mieux comprendre comment ces pratiques peuvent répondre aux défis, tout en en favorisant la création de valeur lors du cycle d'innovation. Pour citer ce document Bourdeau, S., Coulon, T., Pascal, A. et Templier, M. (2021). Innovation ouverte et écosystème d’innovation : Implications pour les organisations du secteur public (2022s-05). CIRANO.
    Keywords: Open Innovation (OI),public sector organizations,OI challenges,OI best practices,dynamic capabilities,case studies, Innovation ouverte (IO),organisations du secteur public,défis IO,bonnes pratiques IO,capacités dynamiques,études de cas
    Date: 2022–03–08
  6. By: Rottleb, Tim; Kleibert, Jana M.; Schulze, Marc
    Abstract: This report addresses stakeholders involved in designing and implementing policy frameworks of higher education hub projects that particularly include international branch campuses, as well as organisations involved in consulting, advertisement and support of the internationalisation of higher education. It draws on multiple field visits to transnational education hubs, and on 136 interviews with senior higher education managers and transnational education stakeholders in Europe, Asia and the Middle East conducted between 2018 and 2020. Based on this data, we identify key phases and challenges for developing a transnational education hub. From these findings we developed the following suggestions that should be taken into account for designing successful policies. Overall, we argue that policy makers need to find the right balance between, on the one hand, creating an environment in which foreign providers of higher education can invest with relative ease and, on the other hand, setting up mechanisms and regulations that integrate them and ensure their contribution to long-term strategic development.
    Date: 2022
  7. By: Misha Kaur (OECD)
    Abstract: Public sector innovation is about finding new and better ways to achieve positive public outcomes. The increased complexity of the challenges faced by governments has made enhancing the innovative capacity of governments and public sector systems an imperative. But for innovative approaches or solutions to create lasting impact, they must be embedded as part of existing systems. In the same way, a public sector’s capacity to innovate depends on whether innovation is embedded in the functions and mechanisms of government. To assist governments in achieving this this, the OECD Observatory of Public Sector Innovation (OPSI) developed the Innovative Capacity Framework. It focuses on the innovative capacity of existing public sector systems and their governing mechanisms, rules, processes, norms and other factors. The Framework includes guidelines for making innovation an integral part of policy making and administration and for improving the capacity of governments to quickly adapt to changing environments and, ultimately, build more robust and sustainable solutions.
    Date: 2022–04–01

This nep-ppm issue is ©2022 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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