New horizons shaping science, technology and innovation diplomacy: the case of Latin America and the Caribbean and the European Union. EL-CSID Working Paper Issue 2018/20 • August 2018

Europe and the world face a moment of transformation. The global financial crisis wiped out years of economic and social progress, exposed structural weaknesses in world economies and emphasised the importance of the real economies and strong industries. Modernisation and digitalisation of the industrial base together with the promotion of a competitive framework for industry through research, technology and innovation are drivers for recovery. Innovation, and particularly open innovation, is a key factor of global competitiveness. The European Commission (EC) addresses international cooperation policy in a wider framework and adapts to the evolving needs of partner countries at different stages of development (EC, 2018a). Latin America and the Caribbean countries’ (LAC) and the European Union’s (EU) cooperation on science, technology and innovation has a long history based on cultural roots and common concerns. They share a strategic bi-regional partnership, which was launched in 1999 and stepped up significantly in recent years. The two regions co-operate closely at international level across a broad range of issues and maintain an intensive political dialogue at all levels. EU-LAC relationships are moving from a traditional cooperation model towards a learning model, where sharing experiences and learning from innovations appear to be decisive (OECD, 2014). This paper focuses on the challenges that innovation nowadays poses to international relations and diplomacy. It is based on the evidence gained by the research team from participation in several EULAC projects, especially the ELAN Network project coordinated by TECNALIA, the INNOVACT project as well as other projects and activities

A new perspective on the competitiveness of nations

The capability of firms to survive and to have a competitive advantage in global markets depends on, amongst other things, the efficiency of public institutions, the excellence of educational, health and communications infrastructures, as well as on the political and economic stability of their home country. The measurement of competitiveness and strategy development is thus an important issue for policy-makers. Despite many attempts to provide objectivity in the development of measures of national competitiveness, there are inherently subjective judgments that involve, for example, how data sets are aggregated and importance weights are applied. Generally, either equal weighting is assumed in calculating a final index, or subjective weights are specified. The same problem also occurs in the subjective assignment of countries to different clusters. Developed as such, the value of these type indices may be questioned by users. The aim of this paper is to explore methodological transparency as a viable solution to problems created by existing aggregated indices. For this purpose, a methodology composed of three steps is proposed. To start, a hierarchical clustering analysis is used to assign countries to appropriate clusters. In current methods, country clustering is generally based on GDP. However, we suggest that GDP alone is insufficient for purposes of country clustering. In the proposed methodology, 178 criteria are used for this purpose. Next, relationships between the criteria and classification of the countries are determined using artificial neural networks (ANNs). ANN provides an objective method for determining the attribute/criteria weights, which are, for the most part, subjectively specified in existing methods. Finally, in our third step, the countries of interest are ranked based on weights generated in the previous step. Beyond the ranking of countries, the proposed methodology can also be used to identify those attributes that a given country should focus on in order to improve its position relative to other countries, i.e., to transition from its current cluster to the next higher one

Unsupervised neural models for country and political risk analysis

This interdisciplinary research project focuses on relevant applications of Knowledge Discovery and Artificial Neural Networks in order to identify and analyze levels of country, business and political risk. Its main goal is to help business decision-makers understand the dynamics within the emerging market countries in which they operate. Most of the neural models applied in this study are defined within the framework of unsupervised learning. They are based on Exploratory Projection Pursuit, Topology Preserving Maps and Curvilinear Component Analysis. Two interesting real data sets are analyzed to empirically probe the robustness of these models. The first case study describes information from a significant sample of Spanish multinational enterprises (MNEs). It analyses data pertaining to such aspects as decisions over the location of subsidiary enterprises in various regions across the world, the importance accorded to such decisions and the driving forces behind them. Through a projection-based analysis, this study reveals a range of different reasons underlying the internationalization strategies of Spanish MNEs and the different goals they pursue. It may be concluded that projection connectionist techniques are of immense assistance in the process of identifying the internationalization strategies of Spanish MNEs, their underlying motives and the goals they pursue. The second case study covers several risk categories that include task policy, security, and political stability among others, and it tracks the scores of different countries all over the world. Interesting conclusions are drawn from the application of several business intelligence solutions based on neural projection models, which support data analysis in the context of country and political risk analysisAlfredo Jimenez Palmero is grateful for the financial support from the Spanish Ministry of Science and Innovation through the FPU programme. This research has been partially supported through the Junta of Castilla and Leon under project BU006A08; the Spanish Ministry of Education and Innovation under project CIT-020000-2008-2 and CIT-020000-2009-12. The authors would also like to thank the vehicle interior manufacturer, Grupo Antolin Ingenieria S.A., under project MAGNO2008-1028.- CENIT Project funded by the Spanish Government

The Market Fraction Hypothesis under different GP algorithms

In a previous work, inspired by observations made in many agent-based financial models, we formulated and presented the Market Fraction Hypothesis, which basically predicts a short duration for any dominant type of agents, but then a uniform distribution over all types in the long run. We then proposed a two-step approach, a rule-inference step and a rule-clustering step, to testing this hypothesis. We employed genetic programming as the rule inference engine, and applied self-organizing maps to cluster the inferred rules. We then ran tests for 10 international markets and provided a general examination of the plausibility of the hypothesis. However, because of the fact that the tests took place under a GP system, it could be argued that these results are dependent on the nature of the GP algorithm. This chapter thus serves as an extension to our previous work. We test the Market Fraction Hypothesis under two new different GP algorithms, in order to prove that the previous results are rigorous and are not sensitive to the choice of GP. We thus test again the hypothesis under the same 10 empirical datasets that were used in our previous experiments. Our work shows that certain parts of the hypothesis are indeed sensitive on the algorithm. Nevertheless, this sensitivity does not apply to all aspects of our tests. This therefore allows us to conclude that our previously derived results are rigorous and can thus be generalized

Effects of contract and trust on franchisor performance

The franchisor-franchisee relationship is governed by contracts and trust. This paper analyzes how formal (contracts) and relational (trust) governance mechanisms affected franchisor performance in a service sector franchise for the period 2008¬2015. Using the SOM method in the empirical analysis, the results revealed that trust-based governance was more prominent than contractbased governance in the multi-unit franchise network and the cross-franchising network, negatively affecting franchisor performance in the multi-unit franchise network and positively affecting franchisor performance in the cross-franchising network. In contrast, contracts were more prominent than trust in single-unit franchising, negatively affecting franchisor performance. The primary practical implication is that the franchisor should prevent franchisees in the MUF network from opening new outlets in the same city and competing for the existing outlet’s customers

Emerging country MNEs and the role of home countries: separating fact from irrational expectations

This paper takes a look at the research on Emerging country multinational enterprises (EMNEs) over the last 25 years, and argues that growth in EMNE activity over the last 10 years continues to be dominated by Asian Newly Industrialised Countries (NICs), and to a lesser extent by Brazil, Russia, India and China (the BRICS). Instead of focusing on the success stories, we ask: Why have so few emerging home countries failed to fulfil their potential as significant outward investors, and converged (at least) with the NICs? Many of the EMNEs from the non-NICs continue to reflect limited O advantages, and unless they are able to upgrade their firm-specific assets, this trend is likely to continue. We propose that - in line with extant IB theory - the extent and intensity of EMNE activity is a function of their O advantages, which in turn are largely a function of their home country L advantages. We also call into question the soundness of the idea that EMNEs are able to utilise asset-seeking foreign direct investment (FDI) to build up their O advantages. Such asset-augmentation presumes that the firms have non-location-bound firm-specific assets that have the potential to be upgraded and augmented.FDI, Foreign Investment, MNEs, eclectic paradigm, asset-seeking, knowledge flows, emerging markets

Brazilian Higher Education Analysis Through Knowledge Discovery: Annual and Temporal Approaches

A thesis submitted in partial fulfillment of the requirements for the degree of Doctor in Information Management, specialization in Survey Methodologies and Marketing ResearchThis project presents the Ph.D. thesis proposal in the Information Management area and aims to contextualize the scenario of Higher Education Institutions (HEIs) in Brazil, generate new knowledge and provide subsidies to justify the relevance of the problem investigated and its contributions. It explores the Brazilian Higher Education Census, from 2010 to 2015, and other official and public databases in order to generate new knowledge, based on the fact that knowledge is the main factor of social development in the Age of the Knowledge Society and Economy. It proposes to answer the following research question: "How does the annual and temporal analysis of the Brazilian Higher Education Census and other public and official databases generate new knowledge and provide strategic information to ensure the Higher Education Institutions mission’s accomplishment?" To achieve its objective, it adopts an inductive research process as a research strategy, divided into two phases: an exploratory study, followed by the knowledge generation phase. It is an interpretative, constructionist, and quantitative study. As a methodological resource, it uses the Self-Organizing Maps (SOM), a type of neural network that explores hidden patterns in a large volume of data. In this case, specifically, it is used to discover new knowledge in the area of higher education, considering the higher education institutions, their undergraduate courses, teachers, and students. Besides, and therefore, it assesses the internal dynamics of the higher education institutions and, according to the Resource-Based View (RBV) theory, presents a new approach to identify their internal resources - a gap in the current literature. The proposed approach contributes to fostering new forms of relationship, based on the combination of similar or complementary resources between and among the institutions, which will enable them to become more entrepreneurial and to behave more collaboratively. The research also contributes to 1) the adoption of an innovative methodology - SOM - for the area of Education, specifically Higher Education and a new typology for grouping the educational institutions, courses, teachers and students; 2) the advancement of the theory of RBV; 3) the area of Education, lacking quantitative studies; and 4) the extension of the concept of the entrepreneurial university – the enhanced triple helices, based on their complementary and similar resources. This new knowledge plays a significant role in the implementation of competitive responses or decisions to take in a fiercely competitive environment and contributes to the advancement of the theory under study. Keywords: knowledge discovery, higher education, Self-Organizing Maps - SOM, entrepreneurial university.Este projeto apresenta a proposta de tese de doutoramento na área de Gestão da Informação e tem como objetivo contextualizar o cenário das Instituições de Ensino Superior (IESs) do Brasil, gerar novos conhecimentos e fornecer subsídios para justificar a relevância do problema investigado e suas contribuições. Explora o Censo Brasileiro do Ensino Superior, de 2010 a 2015, e outros bancos de dados oficiais e públicos, com o intuito de gerar novos conhecimentos, pautando-se no fato de que o conhecimento é o principal fator de desenvolvimento, tanto social quanto econômico, na Era da Economia e da Sociedade do Conhecimento. Sendo assim, se propõe a responder à seguinte pergunta de investigação: "Como a análise anual e temporal do Censo Brasileiro de Ensino Superior (IES) e de outros bancos de dados oficiais e públicos geram novos conhecimentos e fornecem informações estratégicas para garantir o cumprimento da missão central das Instituições de Ensino Superior? " Para alcançar o seu objetivo, adota um processo de investigação indutivo como estratégia de pesquisa, dividido em duas fases: um estudo exploratório, seguido da fase de geração de conhecimento. Trata-se de um estudo interpretativo, construcionista e quantitativo. Como recurso metodológico utiliza os Self-Organizing Maps (SOM), um tipo de rede neural que lida com um grande volume de dados para explorar padrões ocultos. Neste caso, especificamente, com o intuito de descobrir novos conhecimentos na área da educação superior, em especial, nas instituições de ensino, seus cursos de graduação, professores e estudantes. Além disso, e como consequência, avalia a dinâmica interna das instituições de ensino estudadas e, de acordo com a teoria da Visão Baseada em Recursos (RBV), apresenta uma nova abordagem para se avaliar os recursos internos institucionais - uma lacuna na literatura atual. Contribui também para fomentar novas formas de relacionamento, baseadas na combinação de recursos similares ou complementares entre as próprias instituições, o que lhes permitirá tornarem-se mais empreendedoras e comportarem-se de forma mais colaborativa. Como contributos, pode-se assinalar: 1) a adoção de uma metodologia inovadora – os SOM – para a área da Educação, especificamente, da Educação Superior e uma nova tipologia para o agrupamento das instituições de ensino, cursos de graduação, professores e alunos; 2) sua contribuição para o avanço da teoria da RBV, com a proposição de uma nova abordagem para a identificação e a análise dos recursos internos institucionais; 3) a contribuição para a área da Educação, carente de estudos de natureza quantitativa; e 4) a proposição de ampliação do conceito da tripa hélice para um formato aprimorado, com base em seus recursos complementares e similares. Esse novo conhecimento desempenha um papel significativo na implementação de respostas ou decisões competitivas a serem tomadas, em um ambiente competitivo acirrado, além de contribuir para o avanço das teorias em estudo

CSA Practices for Sustainable Cocoa Farming Systems

Climate change will shape the future production of cocoa and requires mutual cooperation amongst sector stakeholders to tailor responses to its differentiated impacts. Identifying and prioritizing climate smart agriculture (CSA) responses requires integration of multiple objectives and managing trade-offs between food security, adaptation and mitigation. Impact of future climates on growing regions is needed to select locally appropriate CSA practices. Zones of adaptation needs in Indonesia are identified and the ‘why?’ and ‘how?’ of tailored CSA practices are illustrated in an accessible guidebook format

The development of the Norwegian Petroleum Innovation System: A historical overview

This paper addresses the development of the Norwegian Petroleum Innovation System. The characteristics of the Norwegian Petroleum Innovation System were on the one hand the increasing ability to solve bottlenecks connected to production and operation on the Norwegian shelf, and on the other a gradual learning process which enabled a large portion of Norwegian participation in the petroleum business. While the initial phase of the petroleum development of Norway in the sixties was characterised by an absorptive capacity of receiving new technology, the building of Norwegian competence in the seventies and eighties was in certain respects directly shaped by public policy in order to participate. With the Condeep design it became possible to speak of an independent Norwegian petroleum industry. The development of Norwegian producer and supplier companies signified that petroleum activity in Norway was entering a new phase. In the R&D System of Norway petroleum education and research were introduced at several levels. Due to new cost efficient technologies introduced in the nineties, we may say that the adjustment was concluded by the beginning of 21st century. The Norwegian oil and gas actors perceived themselves ready to fully participate in the international system of energy producers.