A post-mortem of the Vilnius Summit: Not yet a ‘Thessaloniki moment’ for the Eastern Partnership. CEPS Commentary, 3 December 2013

In assessing the third Eastern Partnership (EaP) Summit at Vilnius on November 28-29th, this CEPS Commentary concludes that the event fell far short of its initial ambition to define the geopolitical finalité of EU-EaP relations by projecting a path towards future accession to the EU for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine.

First Anniversary of the Vilnius Summit: Or, how Tolstoy might have portrayed the legacies of Yanukovich and Putin. CEPS Essay No. 18/25 November 2014

Taking inspiration from both Tolstoy’s epic novel War and Peace and the Bible, Michael Emerson reflects in this CEPS Essay on the tumultuous year that has passed since President Yanukovich reneged on signing Ukraine’s Association Agreement with the EU, and on President Putin’s decision to intervene in Ukraine, tearing up all norms of international relations and public morality and inducing the sanctions that now inflict grave economic damage on Russia itself.

Russia goes on the offensive ahead of the Eastern Partnership summit in Vilnius. OSW Commentary No. 115, 30.09.2013

In recent weeks, Russia has stepped up its efforts to prevent a group of former Soviet republics from tightening their relations with the European Union. The intensification of these efforts comes ahead of the upcoming Eastern Partnership summit, scheduled to take place in Vilnius on 28-29 November. It is expected that during the summit Kiev will sign the EU-Ukraine Association Agreement (AA) initialled in March 2012, including an agreement for a Deep and Comprehensive Free Trade Area (DCFTA). Meanwhile, Moldova, Armenia and Georgia are expected to initial similar documents, effectively accepting their terms and conditions, and paving the way for their official signing in the near future. Moscow has always viewed the relations between the EU and the post-Soviet states as a threat to its own influence in the region. Consequently, any attempts to tighten these relations have been actively opposed by Russia. The EU’s Eastern Partnership programme, launched in 2009, has posed a particular challenge to Moscow’s policies in the region.. Russia responded by rolling out a Eurasian integration project, which began in 2010 with the establishment of the Customs Union of Russia, Kazakhstan and Belarus, and is expected to culminate in the establishment of the Eurasian Economic Union by 2015. Moscow’s overarching objective has been to persuade the countries in the region, especially Ukraine, to adopt an unambiguously pro-Russian geopolitical stance and to join the integration project proposed by the Kremlin. The Russian government hopes that this would permanently place these states in Moscow’s sphere of influence and at the same time prevent them from developing closer relations with Brussels. Russia has regularly taken actions aimed at showcasing the benefits of integration with the Customs Union (particularly, by promising preferential pricing of Russian energy resources) and at the same time it has adopted measures highlighting the pitfalls of retaining a pro-European orientation (mainly by imposing occasional trade sanctions). The upcoming summit in Vilnius, during which Ukraine, Moldova, Armenia and Georgia could lock themselves on to a pro-European course, has spurred Moscow to intensify its efforts to torpedo a successful outcome of the Vilnius meeting, with a view to slowing down or even blocking the possibility of closer cooperation between the EU and the former Soviet republics.

After the Vilnius fiasco: Who is to blame? What is to be done? CEPS Essay No. 8, 21 January 2014

All three parties principally responsible for the Vilnius fiasco are to blame, each in their very different way: the EU for having drafted agreements with an inadequate balance between incentives and obligations, and vulnerable as a result to Putin’s aim to torpedo the whole process in favour of his misconceived Eurasian Union, while Yanukovich tried playing geo-political games that left him personally and the Ukrainian state as Putin’s hostage. It will require a major recalibration of policies to get this unstable new status quo back onto sound strategic lines, and proposals are advanced along three tracks in parallel: for rebuilding the remnants of the EU’s neighbourhood policy, for attempting to get Russia to take Lisbon to Vladivostok seriously, and for promoting a Greater Eurasia concept fit for the 21st century that would embrace the whole of the European and Asian landmass.

A framework for assessing business-incubation input, process and output performance:proceedings of the RENT XXVII Conference, 20-22 November 2013, Vilnius, Lithuania

With business incubators deemed as a potent infrastructural element for entrepreneurship development, business incubation management practice and performance have received widespread attention. However, despite this surge of interest, scholars have questioned the extent to which business incubation delivers added value. Thus, there is a growing awareness among researchers, practitioners and policy makers of the need for more rigorous evaluation of the business incubation output performance. Aligned to this is an increasing demand for benchmarking business incubation input/process performance and highlighting best practice. This paper offers a business incubation assessment framework, which considers input/process and output performance domains with relevant indicators. This tool adds value on different levels. It has been developed in collaboration with practitioners and industry experts and therefore it would be relevant and useful to business incubation managers. Once a large enough database of completed questionnaires has been populated on an online platform managed by a coordinating mechanism, such as a business incubation membership association, business incubator managers can reflect on their practices by using this assessment framework to learn their relative position vis-à-vis their peers against each domain. This will enable them to align with best practice in this field. Beyond implications for business incubation management practice, this performance assessment framework would also be useful to researchers and policy makers concerned with business incubation management practice and impact. Future large-scale research could test for construct validity and reliability. Also, discriminant analysis could help link input and process indicators with output measures.

FOREIGN INVESTMENT AND THE BRAZILIAN REAL ESTATE MARKET

This article discusses the main aspects of the Brazilian real estate market in order to illustrate if it would be attractive for a typical American real estate investor to buy office-building portfolios in Brazil. The article emphasizes: [i] - the regulatory frontiers, comparing investment securitization, using a typical American REIT structure, with the Brazilian solution, using the Fundo de Investimento Imobiliario - FII; [ii] - the investment quality attributes in the Brazilian market, using an office building prototype, and [iii] - the comparison of [risk vs. yield] generated by an investment in the Brazilian market, using a FII, benchmarked against an existing REIT (OFFICE SUB-SECTOR) in the USA market. We conclude that investing dollars exchanged for Reais [the Brazilian currency] in a FII with a triple A office-building portfolio in the Sao Paulo marketplace will yield an annual income and a premium return above an American REIT investment. The highly aggressive scenario, along with the strong persistent exchange rate detachment to the IGP-M variations, plus instabilities affecting the generation of income, and even if we adopt a 300-point margin for the Brazil-Risk level, demonstrates that an investment opportunity in the Brazilian market, in the segment we have analyzed, outperforms an equivalent investment in the American market.

Differences of absorptive capacity between firms within a cluster

Firms located within a cluster have access to tacit, complex and specific local knowledge which allow them to develop competitive advantage. However, firms have no equal ability to access and to apply that knowledge, meaning that not all have a similar knowledge absorptive capacity. Using a sample of the largest Portuguese firms within a footwear cluster, this paper examine whether there are significant differences in firm’s absorptive capacity and whether such differences within a cluster are related to firms’ specific characteristics. The results suggest that absorptive capacity is significantly associated with the firms’ characteristics, namely size, export intensity and position within the cluster.

Testing the Random Walk Hypothesis on the Baltic Stock Markets

The purpose of the thesis is to analyze whether the returns of general stock market indices of Estonia, Latvia and Lithuania follow the random walk hypothesis (RWH), and in addition, whether they are consistent with the weak-form efficiency criterion. Also the existence of the day-of-the-week anomaly is examined in the same regional markets. The data consists of daily closing quotes of the OMX Tallinn, Riga and Vilnius total return indices for the sample period from January 3, 2000 to August 28, 2009. Moreover, the full sample period is also divided into two sub-periods. The RWH is tested by applying three quantitative methods (i.e. the Augmented Dickey-Fuller unit root test, serial correlation test and non-parametric runs test). Ordinary Least Squares (OLS) regression with dummy variables is employed to detect the day-of-the-week anomalies. The random walk hypothesis (RWH) is rejected in the Estonian and Lithuanian stock markets. The Latvian stock market exhibits more efficient behaviour, although some evidence of inefficiency is also found, mostly during the first sub-period from 2000 to 2004. Day-of-the-week anomalies are detected on every stock market examined, though no longer during the later sub-period.

Windows into other worlds

Book review.

Reaching for the skies: Time and turbulence in digital technologies and practices

This research examines dynamics associated with new representational technologies in complex organizations through a study of the use of a Single Model Environment, prototyping and simulation tools in the mega-project to construct Terminal 5 at Heathrow Airport, London. The ambition of the client, BAA. was to change industrial practices reducing project costs and time to delivery through new contractual arrangements and new digitally-enabled collaborative ways of working. The research highlights changes over time and addresses two areas of 'turbulence' in the use of: 1) technologies, where there is a dynamic tension between desires to constantly improve, change and update digital technologies and the need to standardise practices, maintaining and defending the overall integrity of the system; and 2) representations, where dynamics result from the responsibilities and liabilities associated with sharing of digital representations and a lack of trust in the validity of data from other firms. These dynamics are tracked across three stages of this well-managed and innovative project and indicate the generic need to treat digital infrastructure as an ongoing strategic issue.

The actual status of the development of a Danish/Swedish system concept of a solar combisystem

At the beginning of 2003 the four year long research project REBUS on education, research, development and demonstration of competitive solar combisystems was launched. Research groups in Norway, Denmark, Sweden and Latvia are working together with partners from industry on innovative solutions for solar heating in the Nordic countries. Existing system concepts have been analyzed and based on the results new system designs have been developed. The proposed solutions have to fulfill country specific technical, sociological and cost requirements. Due to the similar demands on the systems in Denmark and Sweden it has been decided to develop a common system concept for both countries, which increases the market potential for the manufacturer. The focus of the development is on systems for the large number of rather well insulated existing single family houses. In close collaboration with the industrial partners a system concept has been developed that is characterized by its high compactness and flexibility. It allows the use of different types of boilers, heating distribution systems and a variable store and collector size. Two prototypes have been built, one for the Danish market with a gas boiler, and one for the Swedish market with a pellet boiler as auxiliary heater. After intensive testing and eventual further improvements at least two systems will be installed and monitored in demonstration houses. The systems have been modeled in TRNSYS and the simulation results will be used to further improve the system and evaluate the system performance.

Facade integration of polymeric solar collectors

The present paper examines building integrated solar collectors with absorbers of polymeric materials. Efficiency measurements of façade-integrated collectors with non-selective black and spectrally selective coloured absorbers are carried out. The performance of the polymeric absorber was compared with solar glass and polycarbonate twin-wall sheets as collector cover. Simulations demonstrate a high solar fraction for a solar combisystem with façade collectors for a well-insulated house in a Nordic climate. Two examples of house concepts with façade collectors are presented which address a new type of customer than the solar enthusiasts with special interest in renewable energy

CONTRIBUTIONS OF OPERATIONS MANAGEMENT TO THE COMPETITIVENESS OF THE BRAZILIAN ELECTRONICS SECTOR

The objective of this paper is to identify and analyze various aspects of the internal and external operations management of Brazil's electronics sector and to consider the opportunities for and the threats to increasing the competitiveness of its participation in the global supply chain. To address this shortage in the literature, a survey of Brazilian Electric and Electronic Industry Association (ABINEE) companies was conducted. The collected data were complemented with secondary data to establish an overall view of the electronics sector in Brazil. The results suggest that electronics product assembly companies have the opportunity to invest more in information technology to expand process integration, plan and develop products, integrate customers, and maintain rather than expand their supply chain practices. The alignment between internal and external operations management becomes important in this context. The originality of this paper lies in its clarification of operations management in an economically important sector and the insight it provides to academics, practitioners and policy makers involved in the domestic and international electronics sector.