Level Of Capital Investment Research Articles

ВИЗНАЧЕННЯ ТЕНДЕНЦІЙ ЗМІН КАПІТАЛЬНИХ ІНВЕСТИЦІЇ ПРОМИСЛОВОГО ВИРОБНИЦТВА В УМОВАХ НЕВИЗНАЧЕНОСТІ, ЗАГРОЗ ТА РИЗИКІВ

The article examines the trends of changes in capital investment in industry and determines the trends of further investment in conditions of uncertainty, threats and risks. Capital investments in industry for 2010-2022 were analyzed. It was determined that the general level of capital investments in the industry of Ukraine in the period 2010-2022 increased, with the exception of 2020. The number of industrial enterprises that introduced innovations for the period 2013-2020 was analyzed as a percentage of the total number. During the period 2013-2016, there was an increase in enterprises that implemented innovative processes in their activities, in 2017 and 2019, there was a slight decrease in innovative activity compared to the previous period. It is substantiated that the main vectors of development among science-intensive types of industry and mechanical engineering should become: the development of the aviation industry, rocket and space technology, the production of new types of rolling stock, the development of the energy industry, the production of electronic equipment and the modernization of the defense complex. To ensure the security and competitiveness of the state, it is necessary to develop modern types of weapons and military equipment. Among the priorities: radar systems, high-precision weapons and means of their destruction, missile complexes of various ranges. In order to maintain competitive positions in the field of mining and metallurgical production, it is necessary to develop directions for the diversification of production, optimization of the structure according to the nomenclature range, development of new types of goods and services on the basis of existing production capacities. It is necessary to develop and attract new, more effective methods of development of natural reserves of mineral raw materials.

On real estate market transparency: The relationship with ICT trade and investment

The relationship between information and communication technology (ICT) investment, ICT trade, and real estate market transparency is examined in this paper. National-level bi-annual data from a sample of advanced and emerging market economies for the period 2004–2018 underpins this work. The regression analyses suggest greater levels of capital investment in ICT and ICT trade are associated with increased transparency in the real estate market. The effect is more pronounced in emerging economies than in advanced ones. Real estate market transparency is also higher in contexts having less restrictions on foreign real estate investment, coupled with corruption controls. These findings also align with existing literature inferring that countries with common law traditions are often more transparent than those from civil law origins.

Prophet Diagnostics and Cross Validation: Evaluating Forecasting Accuracy and Reliability in Stock Market Analysis

According to the research, there was a consistent increase in app and tool users on the stock market since 2014, as well as a drop in market entry restrictions. Tesla's stock performance between 2019 and 2020 shows a significant increase in app and tool-based trading which also lowering capital investment levels. This research helps to to have a better understanding of the consequences of regular people's increasing dependence on trading apps.

The LAND RESOURCES MANAGEMENT ACCORDING TO AGRARIAN LAND ZONING

Management of land resources as a state system of measures is aimed at providing the population with food and other branches of the national economy with raw materials at the optimal level of capital investments in resources and their maximum return under the conditions of compliance with environmental goals and programs to ensure the norms and requirements of the rational use of land by agricultural enterprises with the aim of obtaining an ecologically clean plant and animal products while preserving natural resources. It is proposed to manage land resources of agricultural enterprises based on indicators of agricultural zoning, which provides information on zoned crops and types of crop rotation that are most suitable for growing on the territory of a specific agricultural enterprise, the implementation of technological measures for the use and protection of land, the level of influence of these measures on productivity and efficiency land use by an agricultural enterprise.

The Impact of Capital Investments on Firm Financial Performance – Empirical Evidence from the Listed Food and Agriculture Companies in Vietnam

Capital investment is one of the most important financial decisions of a firm, which effects the business survival. This paper investigates the impact of capital investments on firm performance to provide an insight for future capital investment decisions of companies. The study uses unbalance panel data gathered from 62 companies which covered 688 observations of listed food and agriculture sector in Vietnam stock exchange during the period 2009 – 2020. To control for unobserved individual effects, the random effect estimator was employed. Profit margin (PM) is used as a proxy for firm performance, while independent variables are capital investment rate in both short-term and long-term effect, equity to total assets ratio, firm size and tangible to fixed assets ratio. The results indicate that capital investments have statistically significant positive impact on long-term performance of the analyzed enterprises. This outcome is in accordant with many previous studies. Especially in the context of Vietnam listed food and agriculture companies have high level of capital investment, a portion increase in capital investment rate will increase the company profit margin. Other variables also have statistically significant relationship with profit margin, in details, equity ratio and size have positive effect while tangible assets ratio has negative effect on firm performance. Therefore, the research suggest firm managers should choose the appropriate capital investment strategies in long-term perspective, within the consideration of equity ratio, economics of scale and tangible assets investment ratio to get the most efficient performance.

INVESTMENT CLIMATE RESEARCH MODELS OF INDUSTRIAL PARKS OF UKRAINE

The investment climate characterizes the object's attractiveness for a domestic or foreign investor. It is evaluated using various statistical analysis methods, but there has yet to be a universally accepted method of its evaluation now. Therefore, applying economic and mathematical modeling will allow for assessing the relationship between the economic development of regions and their investment climate. The purpose of this research is to apply economic and mathematical tools for the assessment and analysis of the investment climate of industrial parks of Ukraine within specific regions and industries, to forecast the level of capital investments in the regions, as well to evaluate the relationship between the economic development of the region and its investment climate to determine the investment attractiveness of the areas, to diagnose the factors that have the most significant influence on the volume of capital investments and the formation of the investment climate. State clusters were determined and interpreted based on the cluster analysis results. Based on quarterly data, capital investments in the regions were investigated with the trend and seasonal components for certain representatives of clusters and regions. Forecasts were built based on the decomposition models, the level of adequacy of which was confirmed by the indicator of the average percentage absolute error as a high level of reliability. Models for assessing the relationship between the economic development of the region and its investment climate were implemented, and it was determined that the formation of the investment climate, namely the indicator of the volume of capital investment, is most influenced by the volume of exports and retail trade. Three methodological approaches are proposed, such as: assessment of the scale (grouping) of industrial parks; forecast of the level of capital investments in the regions; assessment of the relationship between the economic development of the region and its investment climate to study the investment climate of industrial parks in Ukraine. These methodological approaches will help predict the level of capital investment in the regions where industrial parks are located, as well as assess the relationship between the economic development of the region and its investment climate. The study of economic-mathematical methods and models to evaluate the investment attractiveness of territories, in particular the investment climate, made it possible to create economic-mathematical models of the investment climate of industrial parks of Ukraine, which will allow to determine successful industrial parks, forecast the volume of investments in regions and the factors that most affect the volume capital investment and formation of the investment climate. Economic and mathematical models of the investment climate of industrial parks in Ukraine have been developed. They will allow the development of a strategy for the country's economic activity, contributing to its economic growth. Keywords: economic and mathematical modeling, investment climate, investment attractiveness, industrial park, capital investment, cluster analysis, trend equation, forecast.

The impact of long-term land leases on farm investment: Evidence from the Irish dairy sector

The European Union milk quota abolition in 2015 resulted in rapid dairy farm expansion across many Member States. Continued production growth requires both capital and herd investment with secure access to land resources being important for new and expanding farmers. As land sales and rental remain low in Ireland, tax incentives to encourage long-term land rental were increased in 2015. This paper assesses the influence of the length of land leases on dairy farm investment using farm-level data from 2015 to 2018 in the context of low levels of land sales and land rental, and liberal market regulations in Ireland. We find a positive association between lease lengths and both the probability and level of capital investment which is particularly important for farmers with a high portion of land rented in. We find that herd investment is not influenced by the duration of land leases. Our findings call for an extension of policies that encourage land rental on secure leases, especially for young farmers, to increase certainty and support growth in the industry.

Accounting in digital business security: a transformational approach

Introduction. The article examines the features of accounting and reporting for digital assurance of business efficiency based on a modern approach. It has been proven that the goal of digitization is achieved under the conditions of digital transformation of existing and creation of new sectors of the economy, as well as restructuring of spheres of life into new, more efficient and modern ones. Accordingly, the reconstruction of the national economy and the development of innovative infrastructure require an appropriate level of capital investments, these can be both external and internal investments in the investment-attractive innovative infrastructure of the economy. The investment attraction process is preceded by the stage of presenting generalized accounting information about the prospects for changes in the business's economic potential, both for the short-term and the long-term perspective in a reporting format that cannot be provided by traditional public financial reporting. However, such information content contains n-dimensional actuarial reporting, which serves as the basis of value-oriented management and draws its content from the actuarial accounting system. The peculiarities of drawing up a 3D Balance Sheet (Statement of Financial Status) and a 3D Statement of Financial Results (Report on Total Income) based on business operations without drawing up accounting records are outlined. It has been proven that the traditional accounting paradigm has long since acquired a digital format of generalization of information through the prism of modern information technologies, then a new innovative step for its development in the context of mass digitization and the digital economy should be an innovative N-dimensional 5D interpretation of the spatial representation of generalized accounting information, which is expedient digital visa in the environment of Ukrainian software products "Master: Accounting", "Dilovod" or "ISpro". The purpose of the article is to investigate the specifics of the theoretical, methodological and practical principles of actuarial accounting for the information provision of real and potential investors, as well as other capital providers, through the prism of actuarial reporting, which eliminates agency contradictions between business owners (shareholders) and top management managers, which will contribute to the effective reconstruction of Ukraine's economy. The main research hypothesis is related to the assumption that actuarial accounting is able to provide interested parties with the most complete, systematic, verified and adequate to their requests Method (methodology). Includes general scientific methods - elements of the theory of logic; methods of theoretical generalization and abstract science; methods of comparison and grouping; classification method. The results. As a result of the conducted research, elements of scientific novelty were obtained, which are as follows: it is proposed to actively introduce an innovative type of accounting - actuarial, in the format of an n-dimensional actuarial accounting paradigm for domestic economic entities in the conditions of the digital economy. Which in terms of content meets the requirements of real and potential investors. The course, within the framework of such a strategy of successful post-war reconstruction and strategic business development, will contribute not only to an active movement in the direction of digitalization of society, but will also ensure an innovative transformation of the accounting system. Therefore, the practical significance of the conducted research lies in the development of recommendations for filling out financial statements, bypassing the stage of drawing up accounting records at domestic enterprises, which will contribute to the prompt and objective assessment of the impact of each business operation on changes in the structure of the Balance Sheet (Statement of Financial Position) and the Report on Financial results (Report on total income) in the actuarial accounting system.

Selection of best leather item using a FAHP method to launch new leather industry in Ethiopia: A case study

The ready-to-wear sector is expanding quickly and already accounts for a significant contribution to Ethiopia's export revenue. Due to its lower labor and investment costs, availability of resources, government assistance, etc. than other sectors, this industry attracts young entrepreneurs from around the nation as investment destinations. However, while investing in the leather industry, there are frequently many more aspects to consider. Again, there are numerous leather investment opportunities in the leathers sector, including handbags, jackets, belts, shoes, gloves, etc. Different sorts of leather items necessitate various levels of capital investment, operator skill sets, and resource requirements, among many other things. Again, based on their capacity for managing businesses, available capital, business location, and other factors, not all investors are in the same position. To assist investors in making decisions on the opening of a new leather industry, this paper presents a FAHP methodology for choosing the best leather item among various possibilities in a fuzzy environment. The methods enable the decision-maker to incorporate language expressions of expert judgment into the evaluation process. Using the suggested process, the ideal leather item is chosen for the launching of a leather industry in Ethiopia under the current circumstances.

Dynamic evolution and influencing factors of coupling coordination between innovation environment and transformation development of resource-based cities in Gansu province, China

Studying the internal relationship between the innovation environment and the transformation development of resource-based cities from the perspective of coupling and coordination helps reveal the mechanism between them, which is of great significance to sustainable development of resource-based cities. This study reconstructs the index system for innovative environment and transformation development. We used the coupling coordination degree model, Epanechnikov function, and panel quantile regression model to analyze the coupling coordination level, dynamic evolution characteristics, and influencing factors of innovative environment and transformation development of resource-based cities in Gansu Province from 2009 to 2019. The study shows that the innovation environment index and the transformation development index of resource-based cities increased significantly during the study period. The innovation environment index of resource-based cities has been greatly improved, showing a dynamic evolution trend of rapid growth and development characteristics of “low-level, fast growth”. There are differences in the characteristics of transformation development in resource-based cities, but on the whole, it shows a trend of increasing fluctuation. The state of coupling coordination has changed from a severely unbalanced state to a moderately unbalanced state; some cities have turned to a low-level coordination state, and the overall trend is presented to optimize the process continuously. The quantile regression results show that the level of economic development and industrial structure has a significant positive effect on improving the coupling coordination degree of the two. The degree of government intervention has a negative impact. The level of capital investment has a negative effect at a high score but has no significant impact at a low score. This study tries to provide a scientific basis for formulating the policy of coordinated development between an innovation environment and transformation development of resource-based cities and also provides a reference for high-quality development of other resource-based cities.

Manufactured home estates as retirement living in Australia, identifying the key drivers

Manufactured Home Estates (MHEs) have become increasingly popular in Australia as a retirement housing option and in response, large investor-operators have entered the industry accumulating extensive portfolios. MHEs are appealing to investors as they require lower levels of capital investment compared to other forms of retirement housing and are supported by policy settings which maximise financial returns. The financial and regulatory environment in Australia has resulted in an investment structure where investors are required to act as operators. This paper identifies and examines five interconnected drivers which have encouraged investor-operators to commence MHEs and accumulate large portfolios. First, Australia’s ageing population emerges as a key driver of demand for retirement housing. Second, MHEs represent affordable housing for retirees. Third, broader housing policy providing support to low-income households improves financial returns to investor-operators. Fourth, investor-operator financial returns are improved by the requirement that residents purchase their dwellings through designated suppliers on which a fee is received. Fifth, the investment potential of MHE is linked to planning policies which permit their development on sites outside established residential areas, sometimes creating problems by locating older Australians in hazard affected locations. This paper provides important insights into contemporary analysis of seniors housing in Australia by outlining how policy settings have encouraged investor-operators to purchase and develop of MHEs and how, drawing on scholarship of the financialisation of housing, the investment logics of owner-investors situates MHEs as financial asset, not simply as affordable retirement housing.

MANAGEMENT OF SECURITY ACTIVITIES AT INNOVATIVE-ACTIVE ENTERPRISES

The article identifies the fundamental problems of innovation as a factor in strengthening the economic security of an enterprise in the context of globalization and integration of the world’s economic space. The factors that have a direct impact on innovation activity both in the country and in the world have been investigated. Clustering of individual countries was carried out and Ukraine’s place among them was determined according to the Global Innovation Index. Using the software packages MS Excel and CurveExpert 5.0, a study of the index of innovative efficiency in Ukraine was carried out; dynamics of financing innovative activities in Ukraine, as well as the impact of the level of capital investment on the volume of financing innovative activities. It is proposed to assess the level of economic security of an enterprise based on indicators of its innovative development. The features of interpreting the concept of “innovative activity of enterprises” have been investigated. The sequence and interconnection of such categories as innovative potential, innovative activity, and innovative activity are analyzed. The structure of the process of innovation activity has been investigated. The rhombus of innovative activity is analyzed, which is formed from the following elements: receptivity to new things – provision of resources – communication and organization of the innovation process – a measure of competence. In the study of the specifics of the management of innovative-active enterprises, the analysis of the features and comparison of the differences between innovation activity and other types of economic activity was carried out. The structure of the process of managing innovatively active enterprises has been developed, taking into account aspects of the safety of activities. The prospect of further research identified a thorough analysis of the features of the management process of innovatively active enterprises, considering the impact of global risks and threats. The principal purpose of the article is to study the essence and main characteristics of innovatively active enterprises in the study's context of the security aspect.

Digitalization as a Strategic Means of Achieving Sustainable Efficiencies in Construction Management: A Critical Review

Construction is a complex activity, characterized by high levels of capital investment, relatively long delivery durations, multitudinous risks and uncertainties, as well as requiring the integration of multiple skills delivering a huge volume of tasks and processes. All of these must be coordinated carefully if time, cost, and quality constraints are to be met. At the same time, construction is renowned for performing poorly regarding sustainability metrics. Construction activity generates high volumes of waste, requires vast amounts of resources and materials, while consuming a significant proportion of total energy generated. Digitalization of the construction workplace and construction activities has the potential of improving construction performance both in terms of business results as well as sustainability outcomes. This is because, to put it simply, reduced energy usage, for example, impacts economic and “green” performance, simultaneously. Firms tinkering with digitalization, however, do not always achieve the hoped-for outcomes. The challenge faced is that a digital transition of construction firms must be carried out at a strategic level—requiring a comprehensive change management protocol. What then does a digital strategy entail? This study puts forward an argument for the combined economic and sustainability dividends to be had from digitizing construction firm activities. It outlines the requirements for achieving digitalization. The elements of a comprehensive digitalization strategy are cataloged, while the various approaches to developing a digitalization strategy are discussed. This study offers practitioners a useful framework by which to consider their own firm-level efforts at digitalization transition.

Threshold effects of capital investments on carbon emissions in G20 economies.

Investment in capitals is sacrosanct to launch a country to a greater path of sustainable development. Notwithstanding, its deleterious impacts on environment are equally incontestable. In light of this stark reality, this paper examines the threshold effects of capital investments on carbon emissions in G20 economies over the period, 1992-2014, for which data are available. The study uses both exogenously determined and endogenously determined thresholds to uncover the relationship. While the former relies on median approach to determining the thresholdon the one hand, the latter uses both the fixed effects panel threshold model proposed by (Hansen J Econ 93:345-368, 1999) and the bootstrap method by (Hansen Econometrica 68:575-603, 2000) to assess the statistical relevance of the thresholdeffects on the other hand. The results of the exogenously determined thresholds show higher statistical significant environmental impacts of capital investments at a median threshold of above 3.068 than when it is lesser. The findings of the latter approach indicate the relationship between capital investments and carbon emissions to be non-linear for the G20 countries. More specifically, this study establishes a single-threshold level of capital investment on carbon emissions for the group of countries. The threshold estimator of 3.434 is established at the95% confidence interval. Beyond this point, the environmental impacts of capital investments are imaginable. On the policy front, keeping to the limit set by threshold effects would go a long way to stemming environmental pollution and mitigating climatic change impacts.

Research on the Economic Impact of Shandong Expressway Development

By obtaining the panel data of 16prefecture-level cities in Shandong Province from 2005 to 2018 for 14 years, this paper selects Shandong highway mileage as the core explanatory variable, GDP as the explained variable, urbanization rate, passenger volume, freight volume, government participation and fixed capital investment level as other explanatory variables, and adds economic lag effect on this basis. The fixed effect model or random effect model is tested according to the modified Hausman test. In order to make the results more accurate and reliable, the data are tested and corrected by inter-group heteroscedasticity, intra-group autocorrelation, cross-sectional correlation and multiple collinearity, and the spatial effect of Shandong economy is tested by Moran index. In-depth verification of the impact of highway construction on the economy of Shandong Province. The results show that the random effect model has passed the Hausman test. The revised model shows that highway construction has a positive effect on the overall economy of Shandong Province, and other explanatory variables also have varying degrees of pulling effect on the economy, but the spatial effect of economy is not significant, which provides a reference basis and example verification for highway construction in the future. To better promote the close ties between the regions of Shandong Province and make contributions to economic development.

ECONOMIC ASSESSMENT OF THE INVESTMENT CLIMATE IN THE PROCESS OF ENSURING SUSTAINABLE DEVELOPMENT OF UKRAINE

The purpose of the article is a systemic economic analysis of the investment climate in the process of ensuring sustainable development of Ukraine. European integration strategy of Ukraine necessitates the formation of an investment climate in order to adapt to European requirements, create a development strategy to integrate with developed countries, harmonize economic trade and environmental processes. Methodology. In the course of this analysis, the investment climate was considered as a complex open system with the application in the study of the methodology of systemic analysis, which allowed to emphasize certain aspects of the specific nature of its operation. Results. It is established that in modern conditions of acceleration of transformation processes the mechanisms of expansion of investment opportunities and overcoming of investment restrictions at all levels of hierarchy of taxonomic systems are characterized by any importance and intensity. At the global level, this affects the international movement of capital and the formation of world investment wealth through the internationalization of the economies of different countries. At the national level, this applies to regulatory and legal support, formation of institutional support for investment processes, diversification of ownership, sources and types of investment resources. At the local and territorial levels, it is especially important to ensure investment in human capital and the social sphere. The factors of negative influence on the development of Ukrainian industry are determined: reduction of world prices for ferrous metals; national gaps in the development of railway transport causing problems with logistics; the need to repair production facilities in the fields of metallurgy, electricity, gas and steam, carbonite and refining; low level of yield in agriculture (for the food industry); sanctions of the Russian Federation; inflation; reduction in use of electricity and gas due to global warming; market advantage of imports of competitive products. The priority tasks for the development of Ukrainian industry are also outlined: renewal of industrial production facilities; development of infrastructure and logistics; balancing of external and internal market conditions; providing the food industry by increasing the volume of agricultural production; ensuring the purchasing power of domestic consumers and expanding demand. It is established that the level of capital investments in the first half of 2020 lags significantly behind the previous year. In addition, with the development of the COVID-19 pandemic in 2020, the situation with the inflow of foreign direct investment in Ukraine has also deteriorated significantly. According to preliminary results, the balance of FDI amounted to -112.6%. This was not the case even in the unfavorable economic development of 2014, which was characterized as a crisis period associated with the military conflict in the east and the annexation of Crimea. Practical implications. The analysis of the peculiarities of the investment climate and its goals allows to determine the role of investment in achieving the Sustainable Development Goals by 2030, to identify key priorities in solving environmental problems, to form the potential for sustainable development. For Ukraine, these are components of the formation of the investment climate in a pandemic. Value/originality. The use of systems analysis allows to identify the main problems of formation of the investment climate in modern conditions.

Decision frameworks for restoration & adaptation investment-Applying lessons from asset-intensive industries to the Great Barrier Reef.

Asset-intensive industries (including water and power utilities, mineral resources and energy) are those which require significant levels of capital investment in their assets in order to operate. These industries face challenges from uncertainty in resource availability and demand for end products, the intricate and complicated nature of their assets, and the complexity of the economic, ecological and social settings in which they operate. In these industries, the application of decision frameworks that account for this uncertainty and complexity in guiding asset investment and development is standard practice. Lessons from asset-intensive industries were applied during the concept feasibility phase of the Reef Restoration and Adaptation Program (RRAP) to establish the investment case for research and development into interventions to help the Great Barrier Reef (GBR) resist, adapt to, and recover from the impacts of climate change. The authors worked with RRAP partners to define a decision framework that included structured decision-making processes (SDM), a cost-benefit analysis (CBA), and a value of information (VoI) analysis, to establish the investment case for intervening on the GBR which led to success in securing Australian Government commitment for the next phase of the Program. With climate change expected to drive increased demand for significant levels of restoration and adaptation investment in large integrated social, ecological and economic assets (such as the GBR), the lessons from RRAP offer insights for the application of decision frameworks to inform public and private investment priorities.

Calculation of the pressure gradient in the Cenomanian gas well operated with a foaming agent

Many of the largest Cenomanian gas deposits in Western Siberia are in the final stage of development. There are the liquid loading in the well and gas production decrease. The choice of artificial lift technologies is due to both the technological features of the production process at a particular field, and the economic efficiency of their application. The technology of injection foaming surfactants into the well is widespread in the world, which is characterized by a relatively low level of capital investments and a high level of efficiency, including economic efficiency. There are difficulties associated with the prediction of the pressure gradient under foam flow in a production tubing. This article describes a method for calculating the pressure gradient under foam flow. The results of applying this method for calculating pressure gradient in gas wells of one of the Russian fields on the final stage of development.

Revisiting intangible capital and labour productivity growth, 2000–2015

PurposeThis paper aims to revisit the relationship between intangible capital and labour productivity growth using the largest, up-to-date macro database (2000–2015) available to corroborate the econometric findings of earlier work and to generate novel econometric evidence by accounting for times of crisis (2008–2013) and economic recovery (2014–2015).Design/methodology/approachTo achieve these aims, this paper employs a cross-country growth accounting econometric estimation approach using the largest, up-to-date database available encompassing 16 EU countries over the period 2000–2015. The paper accounts for times of crisis (2008–2013) and of economic recovery (2014–2015). It separately estimates the contribution of three distinct dimensions of intangible capital: (1) computerized information, (2) innovative property and (3) economic competencies.FindingsFirst, when accounting for intangibles, the paper finds that these intangibles have become the dominant source of labour productivity growth in the EU, explaining up to 66 percent of growth. Second, when accounting for times of crisis (2008–2013), in contrast to tangible capital, the paper detects a solid positive relationship between intangibles and labour productivity growth. Third, when accounting for the economic recovery (2014–2015), the paper finds a highly significant and remarkably strong relationship between intangible capital and labour productivity growth.Originality/valueThis paper corroborates the importance of intangibles for labour productivity growth and thereby underlines the necessity to incorporate intangibles into today's national accounting frameworks in order to correctly depict the levels of capital investment being made in European economies. These levels are significantly higher than those currently reflected in the official statistics.

Technological capabilities accumulation and internationalization strategies of Mexican biotech firms: a multi case study from agro-food & pharma industries

ABSTRACT In this paper our aim is to analyze the relationship between technological capabilities accumulation of Mexican biotech firms and their different types of internationalization strategies. Because of the determining effect of firms’ capital investment level, we analyzed three groups of firms: start-ups, small and medium-sized firms (SMEs) and multinational firms (MNEs). We made use of a wide range of information: The First Survey of Biotechnology Development Firms in Mexico, the systematization of 20 case studies, interviews with key persons in the industry and public sources. We confirmed the two hypotheses outlined: (i) TCA process does not follow a linear path in Mexican biotech firms and (ii) firms with lower capital investment levels exhibit a lower level of TCA and less complex internationalization strategies; while firms with higher capital investment levels are associated with higher TCA levels and more complex internationalization strategies. Biotechnology requires high levels of capital investment and these to a large extent determine the development and technological capabilities accumulation. Therefore, we suggest that a capitalization program is much needed to foster Mexican biotech firms’ TCA processes and develop internationalization strategies.