From Transition to Innovation: Policy Issues in a Knowledge-based Economy

This paper contains a general vision of the main issues on innovation policies in East European new member countries and candidate countries. It is based both on the data taken from the main European benchmarking studies on innovation perspectives, and on the direct experience of advisors who worked in East European pilot countries (Slovenia). This paper focuses on the problems arising from the encounter of European innovation policies and local culture and governance structures in these countries. This situation shows that the innovation phase, following transition, generally calls for a further tuning of EU innovation policies in these countries. In order to develop effective market spin-offs from innovation policies, greater attention should be given to triggering bottom-up policies at regional level by reducing decision-making centralism; lowering the risk of imitative and trend-oriented policies; supporting the birth of new enterprises besides backing the existing ones; developing mostly software rather than hardware policy components. All of this should fit in a general framework recognising the central role of individuals – and thus of culture, starting from entrepreneurial culture – within a knowledge-based innovation process. The recent Slovenian action plan for innovation is included as an example of a strategic plan able to spotlight these main issues.     

The dual role of R&D expenditures in European Union’s member states: short- and long-term prospects

The objective of this article is to assess a potential dual role of public expenditures in R&D upon economic growth and employment, using these dimensions as partial representations of the socioeconomic state of affairs in European Union’s Member States. First, we look into direct, short-term impacts arising from R&D expenditures, much in the sense of a multiplier effect. Second, we analyse impacts from the stage of development of National Innovation Systems (NIS) upon the macroeconomic conditions of interest, assuming that current stages of development are products of previous commitment to innovation, that is, a structural, long-term outcome of innovation-oriented investments. In order to empirically test our propositions, we have analysed 28 EU Member States (1990–2013) through three sets of econometric (static and dynamic panel data) models. Results highlight that EU countries’ governmental commitment to their respective innovation systems catalyses current and prospective economic growth and employment levels, suggesting a complementarity between Neo-Schumpeterian and Neo-Keynesian perceptions over governmental R&D involvement. This can bring innovation efforts closer to the macroeconomic debate on monetary and fiscal policies and function as a criticism to austerity measures, as this may not only affect the present socioeconomic situation, but also generate the cornerstone for a perennial state of divergence among EU Member States.     

Innovation Propensity in the EU Candidate Countries

Innovation activities in transition economies generally lag behind developed economies. This is also the case in the latest group of EU candidate countries whose innovation performance lags behind EU-27 average. In this paper we analyze the innovation propensity of firms in EU candidate countries (Croatia, FYR Macedonia, Montenegro and Turkey). The analysis relies on the Business Environment and Enterprise Performance Survey (BEEPS 2009) data. By employing probit model we have identified determinants of innovation propensity in analyzed countries. The results point to external factors such as the subsidies, customer pressure to innovate, obstacles from high tax burdens, political instability and inadequate education of workforce as significant positive predictors. Based on the results, few innovation policy recommendations are proposed.     

Organizational Compatibility and Workplace Drug Testing: Modeling the Adoption of Innovative Social Control Practices

Few researchers have examined organizational variation in the adoption of workplace drug testing, but innovation theory suggests that adoption is more likely when it is compatible with an organization's values, previously introduced ideas, and needs. Using data from the 1997 National Employee Survey, this research models the effects of organizational compatibility, industry, and establishment size on the adoption of drug testing. The data reveal that compatibility, as measured by an organization's rules orientation, presence of an employee assistance program, and mechanization, is associated with the adoption of drug testing. As predicted, the adoption of drug testing varies across industries and by establishment size.     

论创新型国家建设过程中创新型人才的培养

我国建设创新型国家需要调动各方面的积极因素,培养一大批有创新精神的人才。高等教育理应再担起为国家培养创新型人才的历史重任。文章从建设创新型国家的背景、国外创新型国家的创新型人才培养经验、培养创新型人才是建设创新型国家的关键、培养创新型人才是高校的核心任务四个方面阐述了创新型人才培养的重要性。     

Patterns of organisational innovation: comparison of western and eastern countries in Europe

West European (WE) countries perform better in innovation than their counterparts in Central and Eastern Europe (CEE). In this paper organisational innovation (OI) patterns in CEE compared to WE are studied. The paper exploits the Community Innovation Survey 2008, 2010 and 2012 and uses this firm-level innovation data from 12 countries. The authors introduce a novel approach, which elucidates seven types of OI patterns based on an intensity of firms’ engagement in OI. According to this notation most companies in WE were found to be complex internal innovators or complex innovators. In CEE, the largest share of companies in this period were exclusively work management-oriented. This picture remains the same throughout the three waves of the survey. The differences in OI can largely be explained through the differences in the background variables of the companies or through other innovation types, so if CEE and WE companies converge in these terms, much of the difference in OI also disappears. Nevertheless, there is also a part of the divergence which can be related to the societal level through path dependent developments in these countries.     

Connecting entrepreneurship with policy experimentation? The EU framework for social innovation

This article investigates how “social innovation” made its way onto the European Union (EU) agenda and how this notion has been creatively used to advance distinct policy goals. It does so by analysing the resources the EU provided to promote social innovation over the period 2006–2014. Three main conclusions arise. First, between 2006 and 2010 the label social innovation was rarely used, although several EU instruments and processes supported it. Second, throughout 2009–2010, the European Commission’s Bureau of European Policy Advisers played a key agenda setting role in flagging social innovation on the eve of the Europe 2020 Strategy. Consequently, and third, since 2010 social innovation has been explicitly mainstreamed into the EUs new growth strategy. This phase is characterized by a stronger emphasis on “social entrepreneurship” and “social experimentation”. As a result, social innovation has become an important tool in the European Semester’s focus on the reform of the welfare state.     

EMU and the dynamics of regional per capita income inequality in Europe

This paper analyzes the evolution of per capita income inequality among 197 European regions between 1977 and 2003, and seeks evidence of the relationship between the European Economic and Monetary Union (EMU) and interregional income inequality. The conclusion is that overall interregional income inequality has decreased since 1977, owing to a decrease in between-country inequality. The panel analysis conducted in this paper suggests that the adoption of the common currency has, thus far, exacerbated regional inequality in poorer EU countries, while it has not significantly affected regional inequality within richer countries. Inequality in less advanced countries has also increased with the establishment of the convergence criteria and with the implementation of the Single Market.     

Should “open innovation” change innovation policy thinking in catching-up economies? Considerations for policy analyses

This paper provides a review of the current state of academic and policy-level debates on “open innovation” by elaborating on the relevance of the concept of open innovation for innovation policy-making in catching-up economies. The paper shows that paradoxes and contradictions exist between the “mainstream” innovation discourse and the development challenges of the catching-up countries that have lead to “de-contextualization” of the innovation policy discourse. The paper argues that applying the concept of open innovation in its ideal-type form to the catching-up context is likely to reinforce these de-contextualization tendencies. This problem can be remedied by more conscious attention to the basic contradictions and paradoxes, which requires a more comprehensive and systemic analytical focus on innovation and technological development at the levels of firm, industry and policy.     

Lifecycle effects on consumer financial product portfolios in South Africa: An exploratory analysis of four ethnic groups

This paper assesses ownership of 16 financial products by households in different lifecycle stages amongst four ethnic groups (Africans, Coloureds, Asians, and Whites) in South Africa. The lifecycle hypothesis indicates younger households should own more debt-related financial products, whereas households in intermediate lifecycle stages should own more financial products to accumulate assets; both these claims are disconfirmed for all groups. However, White households in intermediate household stages own more financial products than younger and older households, consistent with previously reported lifecycle findings in Western countries. Consistent with the literature on innovation adoption we find that younger, affluent and highly educated households amongst the other three ethnic groups tend to own more financial products than older Africans, Coloureds and Asians. These results indicate that innovation adoption literature may better describe financial product ownership in developing countries than the lifecycle hypothesis.     

How to Overcome Deadlock in EU Immigration Politics

Immigration policy is a very unlikely case for EU integration. EU policy‐making is constrained by member states' sovereignty claims and interest heterogeneity. Still, tentative integration towards EU conditions of entry and residence for some immigrant categories can be observed. By using the example of the skilled labour migration directive, the article explains how deadlock in policy‐making was overcome. It explores the factors that led to agreement in the EU immigration policy area, from the Commission's first proposal on labour migration in 2001 to its adoption in 2009. Explanations for integration in the policy area are member states' venue shopping the EU level for changing domestic legislation, their interest in locking‐in national standards in EU law, and the EU Commission's agenda‐framing. Strategic partitioning of policy was also used by actors to overcome deadlock in policy‐making. The reframing of policies, by reducing their scope to a few narrowly defined immigrant categories, influenced their adoption. This mechanism was observed in studying the eight years of policy‐making leading to the labour migration directive. The longitudinal analysis helps to identify the key dynamics that define this nascent EU policy area.     

Adopting a financial capability and asset-building curriculum at historically Black colleges and universities

ABSTRACT

Social workers currently engage in financial capability practice with low-income and financially vulnerable individuals and families in diverse practice settings, but typically lack professional preparation for this work. In response, several schools of social work have begun adopting financial capability curricula. Using an in-depth interview methodology, this study examines the adoption of a curriculum in financial capability and asset building (FCAB) from the perspectives of faculty and administrators (N = 19) at four historically Black colleges and universities (HBCUs). Findings show that key reasons for curriculum adoption are prior working relationships and trust, relevance of FCAB content to student and community needs, and alignment with program, institutional, and professional goals. Using the diffusion of innovation theory to understand curriculum adoption in HBCUs suggests that perhaps trust and relationship building are particularly important in the case of minority serving institutions.     

European integration and external sustainability of the European Union: an application of the thesis of Feldstein and Horioka

The Feldstein–Horioka thesis was considered one of the greatest puzzles in economics. Formulated to measure international capital mobility, it has known a process of immunization to be conformed to empirical evidence and respect econometric knowledge. We apply to EU countries a formulation of this thesis which is adequate to test external sustainability and measure international capital mobility. Applying appropriate econometric methods we can accept the hypothesis of external unsustainability for the EU before the enlargement. The enlargement allows the external sustainability of the new EU. The lesser mobility of capital in the countries of the enlargement must be considered as a positive shock on EU industry of financial services.     

Women Underrepresentation in R&I: A Sector Program Assessment of the Contribution of Gender Equality Policies in Research and Innovation

Despite decades of efforts to achieve gender equality in research and innovation (R&I), all EU member states still face remarkable difficulties in driving forward the development of their innovation system while at the same time improving gender equality by using all the available research potential. In this paper we focus on the development of the share of women researchers in four national innovation systems, i.e. in Austria, Denmark, Hungary and Spain in the time period 2005-2015. The four selected cases represent countries with significant differences in their innovation capacity, gender regimes and progress of gender equality in R&I. A qualitative comparative analysis (QCA) is carried out to conduct a sector program evaluation based on statistical data and qualitative studies to understand the dynamic development of the proportion of women researchers. The study aims to provide insights into the aggregated gender equality interventions and policies implemented in the four countries studied and their contributions to the development of the proportion of women scientists at the structural level. The analysis reveals that the development of the share of women researchers during the studied period has been particularly influenced by contextual factors, namely the relative size of the business enterprise sector and the share of women among holders of tertiary education. While this is the case, it is found that gender equality interventions need to be more widespread and more effectively designed to be a strong contributing factor to an increasing representation of women in R&I.     

Cost–Benefit Analysis and the Rates of Return of Infrastructure Projects: Evidence from International Organizations

In this paper we analyse data on the rates of return of investment projects sponsored by three international institutions: the European Union (EU), the European Bank for Reconstruction and Development (EBRD), the World Bank (WB). The focus of the paper is on the variability of ex-ante economic rate of returns (ERR), of financial rates of return (FRR, available for EU and EBRD) and ex-post or re-estimated economic rates of return (RERR, available for WB only), along with the co-financing rate (EU). We propose a framework of analysis of FRR and ERR variations across projects, sectors, financing institutions and time, of the wedge between ERR and FRR, and of the gap between ERR and RERR. Our main conclusions are that the informational content of projects’ rates of return is valuable and is needed for cost–benefit analyses, and that sectors, countries, time and funding institutions explain much of the variability of these rates. We advocate the collection of standardized and comparable data since our framework could be used for comparing rates of return variability of development projects across countries, time of approval or completion, or any other relevant sampling criterion.     

Social innovation: Buzz word or enduring term?

The term ‘social innovation’ has come into common parlance in recent years. Some analysts consider social innovation no more than a buzz word or passing fad that is too vague to be usefully applied to academic scholarship. Some social scientists, however, see significant value in the concept of social innovation because it identifies a critical type of innovation. In this paper, we suggest one possible definition of social innovation and show that when its empirical meaning is distilled, the term is of great importance. We distinguish social innovation from business innovation, and identify a subset of social innovations that requires government support.     

Research and Development Spillovers in Central and Eastern Europe

The present study considers the implications of different stages of economic integration for endogenous growth models with horizontal differentiation of the intermediate goods. It investigates the decline of the domestic R&D (research and development) sector for countries with lower initial stock of R&D due to partial integration in the form of free trade. The problem is investigated with empirical analysis for panel data for 12 EU accession countries in the period of 1990–2001. The specification relating the growth of total factor productivity, the domestic and the available foreign stock of R&D is estimated with first-differences, ordinary least-squares, dynamic panel data, and GMM methods. The time series are highly persistent and the applied procedures have different advantages according to the assumptions and the purpose of the analysis. All methods establish the comparable result that the foreign R&D stock interacted with the import share is a substantial and significant factor for the growth of total factor productivity. The role of the domestic R&D is insignificant for the growth of total factor productivity, verifying the decline of the sector with free trade.     

Foundations and innovation in the nonprofit sector

Using a sample of 17 foundations that are at the forefront of encouraging innovation this study explored foundations' motivations behind funding innovation, their perceived ability to impact the levels of innovation in nonprofit organizations, and strategies that foundations are using or can use to encourage innovation in nonprofit organizations. The results showed that among the major motives behind funding innovation were leveraging the capital, honoring the foundations' core identity (mission and values), and desiring to encourage innovation in nonprofit organizations. Five strategies/mechanisms that foundations are using/can use to encourage innovation in nonprofit organizations were identified: (a) offering innovation awards/grants as catalysts for innovation, (b) providing risk capital and supporting early stage idea development, (c) educating other foundations on the value of innovation and serving in a convener role, (d) serving as thought leaders, and (e) increasing nonprofit organizations' capacity for innovation. Implications for practice are discussed along with recommendations for future research.     

Technology-Based Innovation for Independent Living: Policy and Innovation in the United Kingdom,Scandinavia, and the United States

Interest in utilizing technology to help older adults remain living at home is growing; however, uptake remains low. We present a conceptual framework for understanding independent living technology innovation within health and social services. Public policy and innovation in the United States, the United Kingdom, and Scandinavia are profiled as case studies. In all profiled countries, independent living technology is more rapidly advancing than associated state policy, regulation, and payment systems. The findings from this comparative analysis reveal areas for further exploration, including policy subsystem environments in which technologies and services are regulated, as well as trends and desires of older adults and their caregivers within particular cultural contexts.     

Instrumental and Non-instrumental Factors of Social Innovation Adoption

We investigate social innovation adoption and extend instrumental factors of adoption intention by including non-instrumental factors. We argue that, from a market-based perspective, conventional innovation adoption models based on instrumental factors do not fully consider specific characteristics of social innovations. Our objective is to improve the explanatory power of conventional adoption models by including symbolic, emotional, and motivational factors as non-instrumental factors. We conducted two empirical studies in which we investigated younger adults’ adoption intentions regarding time-bank-based senior cooperatives. The results extend the findings of conventional adoption research and show that explanatory power can be substantially improved by including non-instrumental factors. The results contribute to the understanding of social innovation adoption and indicate limited generalizability of conventional innovation adoption research to social innovations. Implications and directions for future research are discussed.