Policy support for business R&D

Research and development (R&D) has a well-documented positive impact on growth and productivity; private and spillover R&D benefits to the UK economy are estimated at £9.8 billion annually. Governments increasingly recognise the benefits of supporting private R&D investment, but with constrained public spending the available funds have to be targeted effectively.

The determinants of R&D investment: A survey of the empirical research

This paper offers an extensive survey and a critical discussion of the empirical literature on the driving factors of R&D. These factors are subsumed under five broad types. The paper first summarises the key predictions from theory regarding each type's R&D effect. It then examines for which factors differences in the theoretical predictions can also be found in empirical studies, and for which factors the empirical evidence is more unanimous. As the focus is on the empirical literature, methodological issues are also highlighted. The major factor types identified in the literature are, individual firm or industry characteristics, particularly internal finance and sales; competition in product markets; R&D tax credits and subsidies; location and resource related factors, such as spillovers from university research within close geographic proximity, membership of a research joint venture and cooperation with research centres, and the human capital embodied in knowledge workers; and spillovers from foreign R&D. Although on balance there is a consensus regarding the R&D effects of most factors, there is also variation in results. Recent work suggests that accounting for non-linearities is one area of research that may explain and encompass contradictory findings.

Innovation in the pharmaceutical industry: New estimates of R&D costs.

The research and development costs of 106 randomly selected new drugs were obtained from a survey of 10 pharmaceutical firms. These data were used to estimate the average pre-tax cost of new drug and biologics development. The costs of compounds abandoned during testing were linked to the costs of compounds that obtained marketing approval. The estimated average out-of-pocket cost per approved new compound is $1395 million (2013 dollars). Capitalizing out-of-pocket costs to the point of marketing approval at a real discount rate of 10.5% yields a total pre-approval cost estimate of $2558 million (2013 dollars). When compared to the results of the previous study in this series, total capitalized costs were shown to have increased at an annual rate of 8.5% above general price inflation. Adding an estimate of post-approval R&D costs increases the cost estimate to $2870 million (2013 dollars).

Reform and Redesign: A Review of the Changing Role of the Public Purposes in R&D and Technology Institutes (Working Paper 17)

As the globalization of knowledge has taken hold over the past decade, and as governments around the world review their new roles in support of the production of knowledge, several factors have shaped the context in governments’ approach to public research. Arguably, none has been more affected by these pressures for reform than government scientific and technology laboratories or institutes. Often ignored in the re-shaping of national systems of innovation, these organizations play an important role in advancing national economic and social objectives. This paper, by reviewing examples of reforms underway in several countries, including Canada, France, Germany, the UK, Japan, USA and Latin America, will argue that government research and technology institutes — often historically surrogates for industrial research — are gradually re-defining their mandates to meet the new pressures of globalization as well as satisfying growing public demands for increased relevance and efficiency in responding to citizens’ and industry needs.

R. D. Laingin antipsykiatrinen kritiikki teoksessa Divided Self

Analysoin tutkimuksessani radikaalin antipsykiatrian hulluuskäsityksiä ja psykiatrian kritiikkiä osana 1960-luvun vastakulttuuria ja kulttuurista murrosta. Alkuper��islähteeni on R. D. Laingin Divided Self: An Existential Study in Sanity and Madness (1960), jossa Laing käsitteli ajatuksiaan skitsofreenikoiden kokemusmaailmasta ja psykiatrisen katseen kohdentumisesta ymmärtämiseen ja empatiaan potilassuhteessa. Hän lähestyi aihettaan eksistentialistis-fenomenologisesta näkökulmasta ja sai leiman hulluuden romantisoijana ehdottaessaan myöhemmin 1960-luvulla, että kaikki psykoottiset matkat saattoivat johtaa yksilön ”uudelleensyntymään”. 1960-luvulla erityisesti psykiatreista ja sosiologeista koostuva joukko toi esiin kriittisiä näkemyksiä mielisairaalapotilaiden oikeuksista ja hoidosta samalla kyseenalaisten sairauksien medikaalisen mielen. He kommentoivat samalla sekä psykiatrian vallan käyttöä, että länsimaisen sivilisaation tilaa. Sodan jälkeisen maailman murros eli teknologian kasvu, kaupungistuminen ja arvojen materiaalistuminen vähensivät mahdollisuutta ihmisten sosiaalisten tarpeiden tyydyttämiseen. Nämä aiheuttivat henkilökohtaisella tasolla arvojen yhteentörmäyksiä, mistä 1960-luvun vastakulttuurit, kuten antipsykiatria, saivat kasvualustaa. Laingin teos avaa yhden näkökulman 1960-luvun ajatteluun ja kulttuuriin, jossa elettiin uudenlaisten elämäntapojen etsimisen aikaa. Laingin esittämät argumentit saivat laboratorion Kingsley Hallin terapeuttisesta yhteisöstä, joka perustettiin The Philadelphia Associationin tuella Lontoon East Endiin vuonna 1965. Tarkastelen yhteisöä paikkautopiana ja vaihtoehtona mielisairaalahoidolle. Laingin teoksen ja Kingsley Hallin kokeilun kautta asetan antipsykiatrian osaksi 1960-luvun vastakulttuuristen liikkeiden kirjoa.

Estudo de viabilidade para a instalação de uma central piloto para geração de energia elétrica a partir de biomassa na ilha do Pr��ncipe (R.D. de S. Tomé e Pr��ncipe)

O referido projeto tem como objetivo principal a avaliação das capacidades técnicas, económicas e ambientais da ilha do Pr��ncipe (República democr��tica de S. Tomé e Pr��ncipe) para possibilitar a instalação de uma central piloto (500 kW) de produção de energia elétrica a partir de biomassa captada proveniente de la floresta (resíduos florestais) e campos agr��colas(resíduos agr��colas) com intuito de aumentar a potência total instalada na ilha. S. Tomé e Pr��ncipe é um país subdesenvolvido e partilha de um dos maiores problemas dos países dessa categoria, a precária produção e distribuição da energia elétrica a população. Em S. Tomé e Pr��ncipe estes problemas são derivados a fraca potência instalada e depend��ncia de combustíveis fósseis. Especificamente na ilha do Pr��ncipe, a situação é ainda mais complicada, situação prendesse com o facto de que o transporte de combustível da Ilha de S. Tomé para a ilha do Pr��ncipe não se processar num regime contínuo, devido ao aumento do consumo pela população da Ilha do Pr��ncipe conjugado com a fraca potência instalada e a falta de condições ideais de armazenamento de combustível, o que origina muitas falhas na distribuição de eletricidade ou uma racionalidade na sua distribuição. A racionalidade de distribuição de eletricidade na ilha do Pr��ncipe segue o princípio de fornecimento em momentos de maior necessidade, isto é: hor��rios em que as famílias se encontram juntas em suas casas (18 as 24h), per��odos de maior produtividade da ilha (8 as 12h), com interregnos de várias horas na distribuição. Este princípio não respeita instituições como os hospitais onde a necessidade de energia elétrica permanente é uma necessidade. Outra motivação para a elaboração deste projeto é o facto de que a ilha do Pr��ncipe a partir de ano 2012 passou a ser uma reserva da Biosfera da UNESCO. Este facto obrigou obviamente a ilha do Pr��ncipe a ter uma maior preocupação com a sustentabilidade ambiental. Perante essas necessidades, surgiu a necessidade de criação de um projeto que tentasse cobrir as lacunas elétricas da Ilha do Pr��ncipe. O projeto é ambicioso, não só para S. Tomé e Pr��ncipe, mas também para todos os países da região e principalmente aqueles com grande potencialidade em biomassa florestal e agr��cola.

REGIONAL CONVERGENCE AND R&D INVESTMENT: APPLIED INVESTIGATION IN PORTUGAL

R&D investments are seen has having an enormous potential impact on the competitive position of regions and perhaps on regional convergence (or divergence) too. The aim of the paper is to study both the localization of R&D investments and regional income distribution among the NUTs 3 regions of Portugal to conclude if these variables are related or not. To study the spatial convergence (approximation) of per capita income (GDPpc) and R&D investments in the regions of Portugal, we use a standard methodology of spatial econometrics. We conclude that regions with higher GDPpc are not the same with the highest concentration of R&D investments, with the exception of the northern coastline. The R&D investments are geographically linked to the network of higher education institutions, especially in the interior regions of the country. The northern regions reveal more dynamic in terms of R&D, which apparently is not felt in the population's standard of living measured by GDPpc.

Curriculum R & D: Incubating change in higher education

This mixed methods study examined incubation as a strategy for curricular change. The purpose was to examine the characteristics and effectiveness of curriculum incubation from a faculty perspective. The conceptual frame for this study proposed combining a grounded theory of incubation with concepts from organizational creativity to explain incubator processes. Findings concluded that while the incubator did engage is typical practices of nurturing, testing, and refining ideas, the salient characteristics of the incubator were most closely related to concepts of organizational creativity. The incubator examined in this study was in formative stages of development and data offered a thin slice of evidence supporting incubation as a mechanism of curricular change. Further study is warranted

Introdução ao número especial «The R&D Management Conference»

No presente número da COeG são mostrados alguns dos trabalhos apresentados na confer��ncia, conduzidos por investigadores cujo traço de união é a expressão em língua portuguesa, e que exploram assuntos a diversos níveis da gestão da inovação e da tecnologia, desde o político ao estratégico, do processual ao operacional. A COeG alia-se, assim, a outras revistas científicas patrocinadoras e/ou apoiantes do evento, como a The R&D Management Journal, e a Creativity and Innovation Management, que apresentam brevemente edições especiais relacionadas com a reunião em Sesimbra.

Customer needs in innovation and R&D strategy development

Tutkimuksen kohteena oleva yritys avasi innovaatiokeskuksen 2015 vuoden loppupuolella. Tutkimuksen tavoite on tutkia keinoja löytää asiakastarpeita innovaatiokeskuksessa sekä selvittää, kuinka asiakastarpeet sisällytetään innovaatio- ja tuotekehitysstrategiaan. Kattava prosessi asiakastarvekartoituksesta esitellään ja prosessi säädetään yritykselle sopivaksi asiakkaille tehdyn kyselyn tulosten mukaan. Lisäksi yrityksen tuotepäälliköille järjestettiin haastattelu, jotta heid��n näkemyksiään asiakastarvekartoituksen kehittämisestä ja tarpeiden lisäämisestä strategiaan päästiin myös hyödyntämään. Asiakastarpeiden kartoittamiseen soveltuvaksi menetelmäksi löydettiin ryhmätyömalliin perustuva menetelmä, jossa tarpeita ker��tään innovaatiokeskuksessa. Lisäksi tietokoneita hyödyntävä GDSS-kokous auttaa välttämään useita yleisiä kokousten ongelmia. Tutkimuksen mukaan asiakastarpeiden suuret kehityslinjat ja kaikista tärkeimmät tarpeet voidaan lisätä strategiaan hyödyntämällä innovaatiokenttiä, skenaarioita ja roadmappeja sekä asiakastarvetaulukkoja.

R&D&I Tax Incentives in the European Union and State Aid Rules

Although tax incentives are an effective tool for promoting R&D&I, depending on their design they may qualify as State aid (article 107(1) of the TFEU) unless exempted by the Commission (article 107(3)). This article discusses the role of State aid rules in respect of R&D&I incentives and the need to ensure R&D&I promotion policies in Europe are on equal footing with the rest of the world, thus ensuring a level playing field for European undertakings in global markets.

Essays on Financial Constraints, R&D Investments, and Competition

This dissertation consists of two chapters of theoretical studies that investigate the effect of financial constraints and market competition on research and development (R&D) investments. In the first chapter, I explore the impact of financial constraints on two different types of R&D investments. In the second chapter, I examine the impact of market competition on the relationship between financial constraints and R&D investments. In the first chapter, I develop a dynamic monopoly model to study a firm’s R&D strategy. Contrary to intuition, I show that a financially constrained firm may invest more aggressively in R&D projects than an unconstrained firm. Financial constraints introduce a risk that a firm may run out of money before its project bears fruit, which leads to involuntary termination on an otherwise positive-NPV project. For a company that relies on cash flow from assets in place to keep its R&D project alive, early success can be relatively important. I find that when the discovery process can be expedited by heavier investment (“accelerable” projects), a financially constrained company may find it optimal to “over���-invest in order to raise the probability of project survival. The over-investment will not happen if the project is only “scalable” (investment scales up payoffs). The model generates several testable implications regarding over-investment and project values. In the second chapter, I study the effects of competition on R&D investments in a duopoly framework. Using a homogeneous duopoly model where two unconstrained firms compete head to head in an R&D race, I find that competition has no effect on R&D investment if the project is not accelerable, and the competing firms are not constrained. In a heterogeneous duopoly model where a financially constrained firm competes against an unconstrained firm, I discover interesting strategic interactions that lead to preemption by the constrained firm in equilibrium. The unconstrained competitor responds to its constrained rival’s investment in an inverted-U shape fashion. When the constrained competitor has high cash flow risk, it accelerates the innovation in equilibrium, while the unconstrained firm invests less aggressively and waits for its rival to quit the race due to shortage of funds.