Substitution Products Research Articles

Merger incentive and strategic corporate social responsibility by a multiproduct corporation

This study investigates a multiproduct corporation's strategic corporate social responsibility (CSR) and the merger decisions by single-plant rival firms. We examine two different timings of choosing strategic CSR games, “merge-then-CSR” and “CSR-then-merge.” In the former case where the merger decision is made first, the subsequently adopted level of CSR increases in product substitutability while its level with a merger is lower than that without a merger. In the latter case where a multiproduct corporation establishes a higher CSR level before merging with rival firms, the committed CSR level decreases in product substitutability while it can increase consumer surplus unless the products are close substitutes. Our findings highlight that mergers can be profitable and benefit society when multiproduct corporation has higher level of CSR.

Specific and sequential detection of hydrogen sulfide and hypochlorous acid based on a ring-forming reaction and self-assembly

Some biological small molecules such as hydrogen sulfide (H2S) and hypochlorous acid (HClO), play pivotal roles in numerous biological and pathological processes and are associated with various diseases. The detection and monitoring them is of continued research interest. Here we report a sequential detection mode fluorescence probes that allow for the sensing of HS– and ClO–. The mixture of P and HS– constructs a specific sensing system S for ClO–. The substitution product S is stable in air, which also could be used independently. Mechanism studies demonstrate that HS– substitutes the Cl atom in P. Furthermore, the addition of ClO– facilitates a ring-forming reaction, resulting in the formation of a thiofuran ring within the product (T). Interestingly, P has a highly ordered steric packing and could self-assemble into a rice-spike-like structure. Upon the addition of HS–, the assemblies decompose into free molecules. After interaction with ClO–, these molecules further transform to T with strong assembled capacity, featuring a larger number of nanosheets. This study provides a novel mechanism for sensing HS– and ClO–, cell and living animal imaging further indicating the good application prospects of these probes in biosensing and bioimaging.

Controlling Chaotic Fluctuations through Monetary Policy

Abstract This paper applies the chaos control method (the OGY method) proposed by Ott, E., C. Grebogi, and J. A. Yorke. (1990. “Controlling Chaos.” Physical Review Letters 64: 1196–9) to policy-making in macroeconomics. This paper demonstrates that the monetary equilibrium paths in a discrete-time, two-dimensional overlapping generations model exhibit chaotic fluctuations depending on the money supply rate and the elasticity of substitution between capital and labor under the assumption of the constant elasticity of substitution (CES) production function. We also show that the chaotic fluctuations can be stabilized by controlling the money supply rate by using the OGY method and that even when the OGY method does not work due to periodic attractors, adding moderate stochastic shocks to the model can successfully stabilize the economy.

Efficient optimization in stochastic production planning problems with product substitution

We consider the stochastic production planning problem with product substitution, which can be decomposed into several optimization subproblems with sequential decisions. The decision variables in each time period include (1) the product substitution decision and (2) the recipe input quantity decision. The goal is to minimize the total of production cost, holding cost, and shortage cost, while achieving a service level for demand satisfaction.Since this optimization model involves analytically intractable probabilistic formulation, traditional mathematical programming techniques cannot be readily applied. We develop the deterministic SPLINE and the stochastic R-SPLINE algorithms for different scenarios. The probability generating function is embedded into the deterministic algorithm to exactly calculate the desired performance measures, which is reasonable when dealing with independent data (with a small number of product classes as well). The stochastic R-SPLINE algorithm uses simulation to estimate the desired probabilistic measures, allowing correlations between different production recipes as well as between different demand classes. We also present a convergence analysis for the stochastic R-SPLINE algorithm. Experimental results demonstrate the efficiency of the developed algorithms compared to other existing approaches.

Development of a methodology for molecular genetic monitoring for the cholera causative agent

Background. The ongoing cholera pandemic determines the relevance of the development and improvement of methods for analysis of data on genome-wide sequencing of the cholera pathogen. This is of particular importance in the light of the challenges of import substitution of foreign products, including software.
 The aim of the study was to develop a methodology for molecular genetic monitoring for the cholera causative agent using online geographic information system (GIS) and analysis with its help of strains isolated in Russia earlier.
 Materials and methods. Data from genome-wide sequencing of 2598 toxigenic (ctxAB+tcpA+) strains of V. cholerae O1 El Tor, both obtained by the authors on the MiSeq (Illumina) platform, and retrieved from the NCBI database were used in the study. The SNP analysis software was developed in the Java and Python programming languages. Cytoscape program was used to visualize the dendrogram. The development of online GIS was carried out using the programming languages HTML, JavaScript and PHP. The freely distributed Leaflet library written in JavaScript was used as the core. Maps obtained from the OpenStreetMap community were used as cartographic data.
 Results and discussion. A universal set of SNPs and software have been developed to analyze the data of genome-wide sequencing of cholera vibrio strains. It was shown that the majority of strains were distributed among several large clusters. The most closely related strains for cholera vibrions isolated in Russia since 2001 have been identified. An online GIS "Molecular genetic monitoring for V. cholerae" has been created, which allows the recognition of closely related strains directly on an electronic map.

Selection method of promising products for import substitution in the market of rehabilitation equipment

Modern circumstances of severe sanctions pressure actualize the issues of import substitution of products of foreign manufacturers who have left Russia. The high–level import dependence of the domestic market of rehabilitation equipment contributes to the risk of reducing the quality and availability of medical care for the rehabilitation of patients. The lack of necessary rehabilitation products to equip medical institutions leads to an increased need for the development of internal competencies for the development and production of technical means of rehabilitation. The selection method of promising products for import substitution is described in the article. The algorithm of actions suggested by this method is presented, a model for the selection of promising products (evaluation of their market potential) is given. The use of the method is considered on the example of assessing the market potential of the neurorehabilitation system.

Supply-chain Disruptions under COVID: A Window of Opportunity for Local Producers?

Chinese imports replace locally manufactured products in developing countries. The import of consumer goods from China to West Africa is closely linked to commercial travel, and China’s border restrictions during the Covid outbreak put a near-halt to such travelling. Furthermore, the pandemic caused a global logistics crisis that disrupted supply chains with production in China. This paper asks whether Ghanaian manufacturers and artisanal producers could take advantage of these disruptions to enhance their competitive position. Did China’s border closure provide space for local Ghanaian producers to thrive? We address this question by drawing on data collected among Ghanaian plastic manufacturers and furniture makers, who have faced tough competition from Chinese imports. Our analysis shows that supply chain disruptions from China led to the substitution of certain products previously imported from China, and these effects were partially sustained after the Covid-induced barriers to imports from China were removed. However, the disruptions were also costly for many Ghanaian producers, as they depended on Chinese intermediary products, tools, and other inputs. This illustrates how economic lives in Ghana and China have become so profoundly intertwined that indiscriminate decoupling is neither possible nor desirable.

Level and timing of product substitution in a trial of e-cigarettes for smokers not interested in quitting.

The e-cigarette market is large and diverse. Traditional smoking cessation trials involving a control group and a 6-month observation period are an inefficient methodology for testing the multiple treatment options e-cigarettes provide for harm reduction in cigarette smokers. We determined when product substitution occurred in the e-cigarette provision arm of an e-cigarette substitution trial for cigarette smokers who were not interested in quitting. We conducted a secondary analysis of 120 cigarette smokers with severe mental illness (recruitment 2017-2020) who were given disposable e-cigarettes for 8 weeks and assessed at weeks 0 (t0), 2, 4, 6, and 8. We explored product substitution through visit-to-visit correlations in change in product use, then developed a dual process growth model for cigarette and e-cigarette use to test the association between increases in e-cigarette use and concurrent decreases in cigarettes smoked. Mean age of the participants was 45.9 years, and 42.7% smoked ≥20 cigarettes per day. Almost all product substitution occurred between t0 and t2. For the average smoker (18 cigarettes per day), t2 cigarette frequency decreased by 0.39 (95% CI: -0.56 - -0.22) cigarettes for each additional e-cigarette session. There was effect modification (p=0.033), such that baseline light smokers (<10 cigarettes/day) had no significant decrease in t2 cigarette frequency, regardless of their initial increase in e-cigarette use, while heavy smokers (38 cigarettes/day) switched products nearly on a one-to-one basis. In this study, most product substitution occurred early, and heavier smokers had larger t2 decreases in cigarettes/day with increased e-cigarette use. If confirmed with replication studies, the findings could suggest establishment of a novel outcome for e-cigarette studies - early product substitution - and support the value of short-term comparative effectiveness trials that compare multiple potentially lower harm tobacco products. The study was registered on the official website of ClinicalTrials.gov. ID NCT03050853.

Manufacturer’s patent licensing strategies based on co-opetition

In the context of co-opetition (cooperation and competition), technological innovation endows manufacturers with new competitiveness and vitality. Through patent technology licensing, manufacturers can achieve technology upgrading and efficiency improvement. To study the patent licensing decisions of manufacturers based on co-opetition, this paper constructs a production patent licensing game model that comprises two manufacturers that cooperate in the upstream component market and compete in the downstream consumer market. We conduct a comparative analysis of the game equilibrium of three patent licensing scenarioscompetition (no licensing), unilateral licensing and cross-licensingand analyse the impact mechanism of key parameters, such as market share and cost advantage (cost burden). The research results are as follows. (1) When the product substitutability (competition intensity) is not very high and the market share of manufacturer 1 is relatively small or the product substitutability (competition intensity) is large and the cost advantage of both manufacturers 1 and 2 is moderate, Pareto improvement under cross-licensing scenario is better than that under unilateral licensing and competition scenarios. (2) The Pareto improvement in the unilateral licensing scenario is always better than that in the other two scenarios. (3) When the cost advantage of manufacturer 1 is small or large, the Pareto improvement in the competition scenario is better than that in the other two licensing scenarios. The paper also analyses consumer surplus in three licensing scenarios. The conclusions can provide a decision-making basis and support for manufacturers to select appropriate licensing strategies and government participation to guide enterprise technology upgrading under different situations.

Оценка технологий производства продукции российско-китайского товарооборота в условиях санкционной борьбы России с коллективным Западом

The article analyzes and evaluates China’s capabilities to realize the potential for import substitution of high-tech products in the economy of the Russian Federation and our country’s capabilities to export high-tech products to China. The results allow us to conclude that significant quantitative progress has been achieved in the volume of trade turnover between Russia and China within the framework of Russian-Chinese relations. Nevertheless, the share of high-tech products in China does not yet correspond to the level of comprehensive partnership and strategic cooperation achieved by Russia and China. Only the political will of the leadership of the countries can ensure full quantitative and qualitative import substitution of high-tech products in the national economy of the Russian Federation and/or create conditions for our country to achieve sovereignty in the technological sphere.

ТЕНДЕНЦИИ РАЗВИТИЯ ВНЕШНЕЭКОНОМИЧЕСКИХ СВЯЗЕЙ КИТАЙСКОЙ НАРОДНОЙ РЕСПУБЛИКИ В 2024 – 2030 ГГ.

The article analyzes trends in the development of foreign economic relations of the People’s Republic of China in 2024 – 2030. Analysis of trends in the distribution of Chinese exports and imports by countries and regions of the world suggests that the distribution of Chinese exports and imports by countries and regions of the world until 2030 will tend to increase the share of Asian countries. The share of North American and Western European countries in the distribution of Chinese exports and imports across countries and regions of the world will remain either unchanged or will decline. Russia’s share in the distribution of Chinese exports and imports by country will tend to increase until 2030. An analysis of the capabilities of the People’s Republic of China to realize the trade and investment potential of import substitution of products in the economy of the Russian Federation in the future until 2030 suggests that Russian imports from China may increase by 2025 to 80.82 billion dollars, and by 2030 to 85 08 billion dollars, which will ensure the realization of the trade potential of import substitution in the Russian economy by 84.79% and 89.26%, respectively. At the same time, direct investments by the PRC in the domestic national economy can increase the realization of the import substitution potential in the Russian economy to 89.25% and 98.85%, respectively. However, the share of high-tech products when China realizes its trade and investment potential for import substitution in the economy of the Russian Federation will remain low. At the same time, the level of scientific and technical development of basic production (technologies for execution, provision) of goods (work, services) imported from China and produced (performed, provided) as a result of direct investment from this country into the Russian economy, until 2030, will tend to increasing. China will thus largely be able to realize its trade and investment potential for import substitution of high-tech products in the domestic economy by 2030.

Choice of Cost Reduction Mode in a Contract Manufacturing Supply Chain with Substitutable Products

Cost reduction investment is relevant for manufacturers to achieve competitive advantage. This article investigates the choice of cost reduction mode in a supply chain with one original brand manufacturer (OBM) whose product incurs common and dedicated costs and one contract manufacturer (CM) offering substitutable products. The CM sharing OBM's investment spillover may be worse off with strong spillover. A costly common component may not lead the OBM to reduce common cost, especially when its investment substantially spills over to the CM. This spillover causes intense competition so that the OBM reduces dedicated cost; this choice also applies to a costly dedicated component. The OBM is incentivized to reduce common cost if the common component is costly and the spillover is weak. This article further analyzes the case that the CM invests in cost reduction and finds its mode choice opposite to the OBM's because of the direct benefits of cost reduction. Even with a costly dedicated component and strong spillover, the CM does not necessarily reduce dedicated cost but it reduces common cost. The OBM's and CM's investments may create a win–win mode.

Efficient approximate algorithms for a class of dynamic lot size problems under product substitution

Efficient approximate algorithms for a class of dynamic lot size problems under product substitution

Options for reducing a city's global biodiversity footprint – The case of food consumption in Vienna

Urban food consumption contributes significantly to global biodiversity loss. To ensure a sustainable food supply for the growing urban population a transformation of food production and consumption patterns is necessary. Here, options for reducing the food-related biodiversity footprint of Vienna (Austria), a high-income city in Europe were assessed regarding measures of product substitution, demand reduction through avoidance of waste and caloric overconsumption and a shift from imports to domestic production. The biodiversity footprints of 24 food consumption patterns were calculated with a life-cycle-assessment approach applying country- and primary biomass-specific factors for vertebrate species loss derived from a high-resolution global countryside species-area-relationship model that incorporates land-use intensity and spatially-explicit information on Vienna's source regions. Compared to the baseline food consumption in Vienna of 2010, diets with less animal products could reduce the footprint by 21%–43%, while waste reduction and adhering to the recommended caloric intake could reduce the footprint by 5% and 9%, respectively. Decreasing the demand for primary biomass under alternative diets could also free up domestic cropland and allow for reducing imports and relocating production from abroad to Austria. This could reduce Vienna's biodiversity footprint additionally by 5%–21%, depending on diet and demand level, due to comparatively higher yields and lower native species richness in Austria. Results further indicate that shifting towards a vegetarian diet requires the least product substitution per footprint reduction among the examined alternative diets. Substituting animal products with plant-based alternatives from area-efficient production systems located outside of biodiversity hotspots emerges as a promising strategy for Western cities to reduce their biodiversity footprint.

Development of commercial trout breeding in southern Russia in the context of the import substitution strategy

Aquaculture is the main promising direction for the development of the fisheries industry. Analysis of the general condition of fish breeding enterprises and the potential for expanding production shows that the growth trend of traditional for the southern regions pond fish breeding is weak. A significant problem for the development of aquaculture is the high price of fish products and, accordingly, low demand. A substantial reduction in the cost of fish production is currently unlikely to be achieved, so switching to more valuable fish varieties can stimulate consumption. To ensure the development of the fish products market and increase demand, entrepreneurs in southern Russia are improving technologies for growing such valuable fish varieties as salmonoids, in particular, rainbow trout. Studying the activities of trout farms requires taking into account which area of activity is prioritized. A farm can produce marketable fish or fish planting material, as well as execute both types of production. The work observes the organizational features of trout farms and promising directions of their development. Solving such key issues as the provision of qualified personnel, high-quality feed of domestic, preferably regional production, and provision of logistically affordable and high-quality planting material is the basis for achieving the goals of import substitution for high-quality fish products in Russia.

ОСОБЕННОСТИ МОДЕЛИ ГОСУДАРСТВЕННОГО УПРАВЛЕНИЯ ИНСТИТУТАМИ РАЗВИТИЯ НА ПРИМЕРЕ РЕГИОНАЛЬНЫХ ГАРАНТИЙНЫХ ОРГАНИЗАЦИЙ

Changes in the economic situation associated with the imposition of sanctions against key sectors of the national economy, as well as the cessation of entrepreneurial activity by many foreign enterprises in Russia, are forming a new economic reality for the small and medium-sized business sector. On the one hand, in the context of increasing focus on import substitution of products, it is appropriate to talk about the unique opportunities for Russian small and medium-sized enterprises to develop their own production. On the other hand, it is necessary to note the limitations of these opportunities, primarily due to the insufficient volume of concessional borrowed resources from the state to strengthen the positions of SMEs in the market and increase the competitiveness of their products. Important in this case is formation of an effective model of public administration by institutions for the development of entrepreneurship support. The article considers the features of the state model of management of regional guarantee organizations as development institutions. Providing SMEs with access to borrowed resources for the development of their activities, problems were identified and recommendations were developed.

Decision-making for substitutable products in a retailer dominant channel involving a third-party logistics provider

Decision-making for substitutable products in a retailer dominant channel involving a third-party logistics provider

Imperfect EPQ model for substitutable products with pollution costs under uncertain planning horizon

Imperfect EPQ model for substitutable products with pollution costs under uncertain planning horizon

Redirecting Consumer Demand: Managing Product Substitutions with Coupons

Redirecting Consumer Demand: Managing Product Substitutions with Coupons

Patent Landscape Study Results in Relation to Analyzing and Optimizing Methods and Devices for Technological Processes

Difficult economic situation that has developed for most Russian companies in the market today requires new ways of ensuring their competitiveness, including import substitution of high-tech products previously being produced by foreign corporations in such industries as: machine-tool engineering, heavy engineering, textile production, electronic industry and medical production. Today, there are many different tools that help improve the company efficiency, including engineering enterprises, one of them is the audit of their production processes. Audit being a tool to implement the concept of business management process rationalization, also known as «lean production», allows you to monitor and adjust changes in technological processes, clarify planned production programs and make justified and balanced management decisions; in domestic research, the concept of rationalizing business process management is also commonly called scientific labor organization (SLO). The real interest of enterprises to the development of existing and design of new audit methods, as well as the need to create technical means for implementing these methods in practice, can be assessed by both on the basis of information search for scientific and technical documents devoted to effectiveness evaluation of production systems, published in peer-reviewed journals or in the form of monographs, and based on an analysis of the patent activity of technical solutions applicable for the implementation of lean manufacturing tools in production conditions. In this article, the authors examine the results of information and analytical studies of patent activity in the field of methods and devices for analyzing and optimizing technological processes for manufacturing high-tech products at mechanical engineering enterprises.