Institutional Framework Conditions Research Articles

M&A Due Diligence in China—Institutional Framework, Corporate Practice and Empirical Evidence

Western companies have established rigorous and robust processes to evaluate a target enterprise before its legal acquisition. This should allow the risks to be mitigated by adjusting purchase price or representations & warranties. In China, however, investors experience that conducting such M&A due diligence might be less effective. Based on neo-institutional economics, experience from corporate practice and empirical evidence, our paper explains the limitations of the approach. Our research concludes that following Western best-practice procedures does not necessarily reduce the uncertainty of an investor in China. Likewise, experts in China do not fully recognize typical M&A measures and indicators as informational substitutes (e.g. contractual terms like earn-out-agreements). Due to different cultural and institutional framework conditions, it takes further activities to overcome the asymmetric information between investor and seller.

Refurbishment in Educational Buildings – Methodological Approach for High Performance Integrated School Refurbishment Actions

Every year governments of the European Member States invest several billion Euros in maintenance and upkeep of their schools. With 17% of non-residential buildings in the European Union being educational buildings, there is a substantial opportunity for setting examples of integrated refurbishment actions, which address functional and energy-related aspects in a joint view.Currently these potentials are not fully exploited. The reasons for the few numbers of truly holistic school refurbishment projects can be found in the limited budgets, the political and institutional framework conditions as well as the lack of innovative and holistic building refurbishment concepts. The assumption for research was that refurbishment in educational buildings focuses mostly on single measures in respect of maintenance and adaptation of the building structure. Energy efficiency measures are only selectively considered and functional changes are rarely implemented in existing buildings.This paper summarizes the results of the research project SchulRen+ [5] that analyzed school buildings in an integrated approach: Considering structural, functional and energy-related aspects in a joint view – the project reveals high performance refurbishment actions that have the potential for the development of ‘Nearly Zero Energy’ or ‘Plus Energy’ buildings.Based on the example of the school building stock of the city of Vienna, a nationally funded project analyzed these constraints with the goal of providing workable solutions for integrated school refurbishments. In an interdisciplinary approach, stakeholders from the city municipality, schools as well as building professionals provided input for the development of a methodology for replicable energy- and functionally optimized school refurbishment concepts. Structural, functional and energy relevant framework conditions were summarized and synergetic potentials of comprehensive school refurbishments were highlighted. Following the requirements of the stakeholders, different scenarios (light, intermediate, advanced) were subsequently tested in terms of functionality, energy efficiency and life cycle costs. For one case study a typical end of 19th century building was selected - similar building types can be found across central Europe. It demonstrated the required changes in prospective school refurbishment projects. The emphasis was on the energetic optimization in synergy with the optimization of the functional room concepts in order to give justice to the changed requirements in new teaching types and methods.The case study resulted in concrete recommendations for decision support and showed how portfolio management and a holistic refurbishment approach could be undertaken for larger educational building stocks.

Institutional determinants of university spin-off quantity and quality: a longitudinal, multilevel, cross-country study

The creation of spin-off firms from universities is seen as an important mechanism for the commercialization of research, and hence the overall contribution from universities to technological development and economic growth. Governments and universities are seeking to develop framework conditions that are conductive to spin-off creation. The most prevalent of such initiatives are legislative changes at national level and the establishment of technology transfer offices at university level. The effectiveness of such initiatives is debated, but empirical evidence is limited. In this paper, we analyze the full population of universities in Italy, Norway, and the UK; three countries adopting differing approaches to framework conditions, to test whether national- and university-level initiatives have an influence on the number of spin-offs created and the quality of these spin-offs. Building on institutional theory and using multilevel analysis, we find that changes in the institutional framework conditions at both national and university levels are conductive to the creation of more spin-offs, but that the increase in quantity is at the expense of the quality of these firms. Hence, the effect of such top–down changes in framework conditions on the economic impact from universities seems to be more symbolic than substantive.

Institutional Determinants of University Spin-Off Quantity and Quality: A Longitudinal, Multi-Level, Cross-Country Study

The creation of spin-off firms from universities is seen as an important mechanism for the commercialization of research, and hence the overall contribution from universities to technological development and economic growth. Governments and universities are seeking to develop framework conditions that are conductive to spin-off creation. The most prevalent of such initiatives are legislative changes at national level and the establishment of Technology Transfer Offices (TTO) at university level. The effectiveness of such initiatives is debated, but empirical evidence is limited. In this paper we analyze the full population of universities in Italy, Norway, and the UK; three countries adopting differing approaches to framework conditions, to test whether national and university level initiatives have an influence on the number of spin-offs created and the quality of these spin-offs. Building on institutional theory and using multi-level analysis, we find that changes in the institutional framework conditions at both national and university level are conductive to the creation of more spin-offs, but that the increase in quantity is at the expense of the quality of these firms. Hence, the effect of such top-down changes in framework conditions on the economic impact from universities seems to be more symbolic than substantive.

POSITION AND PERFORMANCE OF FARMER COOPERATIVES IN THE FOOD SUPPLY CHAIN OF THE EU‐27

ABSTRACTStudies on cooperatives and cooperative performance have a long empirical tradition. This study provides new data on the multifaceted positions and functions of farmer cooperatives in the food supply chains in eight sectors of EU‐27. Cooperatives in this area are facing changes in competition, institutional framework and marketing conditions. What is the significance of cooperatives in the European food supply chains and which positions do they take up? Which conclusions on their handling of the changes can be derived from the development of their functions in the supply chain and which growth and marketing strategies do they pursue? By providing insights into recent literature as well as presenting and evaluating results of the EU‐project ‘Support for Farmers’ Cooperatives’, we seek to provide answers on the questions raised above.

The Alchian-Allen Theorem and the Economics of Internet Animals

The Alchian-Allen Theorem and the Economics of Internet Animals

Causes of the Unofficial Economy in New Eu Member States

The aim of the paper is to test the impact of various potential causes of unofficial economy in new member states (NMS). The hypothesis of the paper is that the most significant factors in NMS are the tax burden and the overall institutional environment. Paper uses unofficial economy estimates based on MIMIC and exhaustiveness of national account approaches over a longer period. A panel data method is used in econometric models in which various indicators of the intensity of regulations, tax burden, institutional framework and labour market conditions are used as potential factors able to explain cross-country differences in the sizes and trends in the unofficial economies.

University commercialization policies and their implementation in the Netherlands and the United States

The article explores how the US and Dutch governments have attempted to bolster research commercialization in their respective research systems and discusses the institutionalization of linkages between universities and industrial firms. First, the article shows how the institutional framework conditions compare in national systems of innovation (NIS) in the Netherlands and the USA with a special focus on regulatory and funding policy instruments. Second, it examines the influence of institutional framework conditions on the linkages that exist between universities and industrial firms in the two countries. Third, the article investigates how the institutionalization of university-firm linkages compare in the two countries. The findings suggest that path dependencies partly shape the process of research commercialization in terms of the timing and the types of policy instruments forming the institutional framework conditions in the two countries. The creation of university-industrial firm linkages is a challenge for governments irrespective of the type of NIS in question partly due to organizational inertia and informal institutions.

Resilience and organisational institutionalism from a cross-cultural perspective: an exploration based on urban climate change adaptation in Vietnam

Resilience theory has gained considerable prominence with regard to the management of social-ecological systems and more recently climate change adaptation. Yet, how resilience is precisely understood, how its institutionalisation works and how organisations can operationalise principles for achieving resilience often remains vague. Therefore, the paper explores how institutional and organisational theory can enhance the understanding on resilience. Linking organisational institutionalism to resilience theory, the paper analyses in particular how resilience thinking can diffuse and translate into organisational action, and which challenges and barriers may exist. Empirical research on formal urban climate change adaptation in Vietnam is used to explore the important role of distinctive institutional features in a given culture, region or sector for shaping this process. It is argued that such context-specific institutional framework conditions are often underemphasised, thereby, hampering the transferability as well as operationalisation and implementation of resilience propositions. Relevant aspects include epistemological, ontological and normative dimensions. Linking the case study to neoinstitutional theory, recommendations are developed for increasing the intercultural transferability of resilience thinking into organisational practices.

A Multilevel Analysis of Innovation in Developing Countries

Innovation is a multilevel phenomenon. Not only attributes of firms but also the framework conditions within which firms operate matter. Although this has been recognized in the literature for a long time, a quantitative test that explicitly considers this hypothesis has been lacking. Using a large sample of firms from many developing countries, we estimate a multilevel model of innovation which connects micro and macro levels of analysis in an integrated framework. National economic, technological and institutional framework conditions are shown to directly predict the likelihood of firms to innovate. More specifically, general education, taxation of income and democratic political institutions turn out to be highly relevant, while macroeconomic stability is somewhat less relevant. But what tends to be perceived as “good” governance and the extent of public research infrastructure do not seem to make much difference. The latter result is interpreted as indicating that what matters is not how much money governments spend on the research infrastructure but rather how effectively these resources are used to leverage innovation. Nevertheless, the results also draw attention to the limits of the existing models, methods and data.

The Working Poor in European Comparison: An Analysis in Consideration of the Process of Income Generation and Redistribution (Armut von Erwerbstaetigen im europaeischen Vergleich: eine Analyse unter Beruecksichtigung des Einkommensverteilungsprozesses)

In Europe, there are significant differences in the extent and in the structure of in-work poverty. Based on a comparison of 20 countries the present study analyses to what extent this is due to the differences in the institutional framework conditions of a given country. The analyses are based on micro data from the EU Statistics on Income and Living Conditions (EU-SILC) of 2006 and macro data from different sources. The analyses distinguish between different steps in the process of income generation and redistribution. The starting point is the question whether a person's own income from work is sufficient to avoid poverty. Further steps regard the role of the household context (needs and further income) and the effect of state redistribution (taxes and transfers). This comprehensive perspective allows for a separation of labour market related and other influences on the risk of in-work poverty.

Appraisal of institutional and policy framework conditions for the use of autonomous desalination units in Jordan

Jordan is one of the most water-scarce countries of the world. This scarcity is driven by low rainfall rates and sudden increases in population due to several armed conflicts in the region. Jordan imports almost all of its energy needs. More attention is being currently given to renewable sources of energy especially with the concerns about climate change and volatile fossil fuel prices. Desalination of brackish water is part of Jordan’s water strategy. However, autonomous desalination units powered by renewable energy systems represent a new concept in Jordan, albeit, they can have great potential as a decentralized water manufacturing option. Institutional and policy framework conditions in Jordan’s water sector are reviewed in order to establish how accommodating the set-up is to the introduction and development of such new technologies. Analysis of pertinent laws and a questionnaire completed by relevant officials and managers revealed the need for a water law to replace the current legal framework an...

Assessment of EU policy: Implications for the implementation of autonomous desalination units powered by renewable resources in the Mediterranean region

Small-scale autonomous desalination systems (ADS) powered by renewable energy are ideal for implementation in arid or semi-arid regions like the Mediterranean, especially in remote coastal or inland locations. The technology has made significant progress but wide scale implementation may face administrative barriers. This paper analyses the possible barriers imposed on ADS by the Water Framework Directive, the Drinking Water Directive, the EU Water Initiative, the European Mediterranean Partnership, and the European Neighbourhood Policy. It has been found that ADS developers have to comply with unnecessary strict regulations that apply to all drinking water supplies, while the consumers and the environment are not adequately protected from possible effects of desalination. A careful review of the relevant directives and standards has to be undertaken and adapt the documents to prepare for widespread use of ADS. On the other hand, there is widespread support for ADS within EU policy, mainly in the form of support for non-conventional water resources as well as for sustainable and rural development. The ADS community has to make use of this support and form a technology platform that will convince decision makers to improve policy and institutional framework conditions and will raise general awareness on the ADS benefits.

Building effective institutional frameworks to support pharmacogenetic research: an international empirical analysis

As science unravels the genetic basis of disease, the opportunities offered by pharmacogenetics and pharmacogenomics (PGx) for future healthcare become more and more apparent. The objective of this paper is to analyse the current state of PGx research and explore future strategies for more efficient research projects and supportive infrastructures. Based on internet searches and an online survey of public research groups, the current focus of PGx technology and the institutional framework conditions for its performance were determined. The main areas of PGx research are the liver, neoplasms and the cardiovascular and central nervous systems. Collaborations are important for knowledge transfer between the private and public sectors. However, for strategic and confidentiality reasons, most collaborations are restricted to preclinical development, early stage clinical studies and the development of methods.

Push or Pull? An Empirical Analysis of the Demand for Individual Project Grants from the Swiss National Science Foundation

This study empirically analyses on the basis of a panel of grant requests to the Swiss National Science Foundation (SNSF. From the results it can be concluded, that the different scientific disciplines react in very different ways to the institutional and financial framework conditions set by the funding agency. Regarding the expansion of the tertiary educational system it can concluded that it has an impact on research funding in the form of two contrary influences. These two effects offset each other to the extent that they do not suffice to explain the rising trend in terms of the number of requests observable as from the year 2000.

Convergence of sciences: the management of agricultural research for small-scale farmers in Benin and Ghana

The Convergence of Sciences programme (CoS) addresses the sub-optimal impact of science on the livelihoods of resource-poor farmers in West Africa, particularly in Benin and Ghana where it operates. CoS aims to develop insights into the pathways through which investment in science and technology can improve rural lives. To this end, CoS features participatory experimental and action research by eight PhD students, who each develop technologies and institutional arrangements with groups of farmers. The ninth PhD student carries out comparative 'research on agricultural research'. The current article deals with a higher aggregation level than the individual project: the management of the programme as a whole. How did CoS try to zero in on the small windows of opportunity West African farmers face? How did it manage the ensuing issues of trans-disciplinarity, and of interaction among students, (social and natural science) supervisors, and other key stakeholders? How does it face up to the issues that arise with respect to scaling up? One of the most interesting aspects of CoS is that it not only deals with technical innovation within the constraining institutional and policy framework conditions, but also experiments with incipient ideas about how to stretch them.

Wirtschaftspolitik für wissensintensive Branchen am Beispiel der Pharmaindustrie

Abstract Against the background of decreasing competitiveness of German pharmaceutical firms, we analyze the impact of institutional framework conditions on the performance of research-based pharmaceutical enterprises. Reviewing the literature, we find ample empirical evidence that both strict price regulation and a rigorous drug approval process lower the expected returns of new drug introductions and therefore reduce the incentives of R&D investments. A reliable patent system on the other hand constitutes a regulatory measure that enhances firm R&D investments and thereby generates a positive economic impact.

Trend‐setters in environmental policy: the character and role of pioneer countries

AbstractThere is reason to believe that environmental policy convergence resulting from policy diffusion is influenced not only by functional imperatives of the world market, but also by a collective behaviour of national governments, where pioneer countries function as (intellectual) leaders under conditions of uncertainty. Their solutions for general environmental problems are adopted by other countries. As a rule, there is one single solution that is preferred by a large group or the majority of countries. This regulatory ‘conformism’ makes pioneer roles of countries highly relevant. The article analyses the character and role of such ‘trend‐setters’ in environmental policy. A necessary condition for becoming a pioneer country in environmental policy is a high domestic capacity for environmental policy‐making. This encompasses institutional, economic and informational framework conditions as well as the relative strength of the green advocacy coalition of a country. While these factors refer to relatively stable factors of policy‐making, this does not explain why sometimes countries give up their roles as pioneers. To explain this, an analytical framework is proposed that encompasses situative factors, strategic factors and actor constellations, especially the coalition between organized proponents of environmental objectives and economic modernizers. This coalition of ecological modernizers may break down, for example in times of economic crisis. The political and economic framework conditions of globalization may sometimes bear impediments for pioneers, but at the same time they also provide incentives for highly advanced countries to take over national pioneer roles – at least in the field of environmental protection, which has become an important issue in the competition for innovation. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.

ECONOMIC LIBERALIZATION AND CHANGES IN CORPORATE CONTROL IN LATIN AMERICA

This article analyzes ownership restructuring and changes in corporate control in four large Latin American countries—Argentina, Brazil, Chile, and Mexico—during the 1990s. Drawing on original firm‐level data, this is a comparative study aimed at identifying cross‐country differences and regularities. It focuses on transactions associated with privatizations and private mergers and acquisitions (M&As)—their evolution, relative importance, and sectoral incidence—as well as the role played by different types of investors: local, foreign, and joint ventures. A specially built database was used in the analysis, comprising 3,085 private M&As and 329 privatization transactions. Although similar to processes occurring elsewhere, it is argued that ownership restructuring in Latin America was facilitated and fostered by specific changes in policy‐associated institutional framework conditions. That is, the wide‐ranging process of ownership restructuring is strongly associated with economic liberalization, which has become the main feature of Latin American national regimes of incentives and regulation.

Sozialwissenschaften in der Rechtsanwendung – am Beispiel der Nutzung der Medienforschung in der Rechtsprechung zum Medienrecht

Zusammenfassung Die Nutzung von Medienwissenschaft durch das Bundesverfassungsgericht ist ein Beispiel für die Rezeption der Sozialwissenschaft in der praktischen Rechtsanwendung. Die Entscheidungen des Gerichts enthalten wenig ausdrückliche sozialwissenschaftliche Zitate, wohl aber vielfältige empirische Aussagen. Die institutionellen Rahmenbedingungen bewirken, daß verfassungsgerichtliche Entscheidungen möglichst an breit konsentierte Realitätsannahmen und an schon früher genutzte Argumentationsfiguren anknüpfen, auch wenn aus sozialwissenschaftlicher Sicht Anlaß für Modifikationen besteht. Ein typisches Beispiel sind die Ausführungen zur Theorie öffentlicher Kommunikation.