On the disclosure and capitalization of research and development spending: some empirical observations for Flanders.

In the US, FASB NR2 demands the full expensing of R & D costs because they would not contribute to future earnings. In Europe, however, article 37 of the Fourth European Directive allows companies to capitalize their costs of R & D as an intangible asset or to expense them immediately in their income statement. The paper exploits that difference and tries to analyze empirically which factors determine the reporting choice made by firms in Europe.More specifically, we analyze the capitalization as well as the disclosure decision of 321 Flemish firms, who are actively performing R & D activities. Company information from their financial statements is combined with privately held data on the size and nature of their R & D activities. The disclosure decision is analyzed separately from the capitalization decision. Only 30% of the 321 R & D active firms in the sample disclosed the amount of R & D spent in their financial statements. About 70% of those firms disclosing choose to capitalize.The empirical results show that the disclosure decision is determined by the R & D characteristics as well as by the financial performance of the firm. The probability that a firm discloses its R & D expenses is increasing with its R & D intensity, the existence of an R & D department and cooperation with universities or other firms. The current as well as the long term financial performance are also relevant for the disclosure decision. Once the firm has decided to disclose its R & D expenses, the decision to capitalize these expenses is mainly determined by the financial performance. If firms can not repay part of their debt and if stakeholders do not receive a sufficiently high income, firms are more likely to capitalize their R & D costs. When the group of capitalizing firms is compared to the group of expensing firms, whether disclosing or not, our results suggest that the R & D intensity, at least in highly innovative industries, and the financial performance determine the capitalization of R & D expenses. Our results suggest that the expenses of successful R & D activities are more likely to be capitalized as an asset in the balance sheet.Research and development; Demand; Costs; Companies; Factors; Data; Characteristics; Performance; Probability; Cooperation; Industry;

Особливості вікової структури наукових кадрів НАН України як провідного елемента наукової системи країни

Проаналізовано вікову структуру дослідників у Національній академії наук (НАН) України у порівнянні з усередненим віковим розподілом цієї категорії персоналу у науковій системі України, а також у провідних відомствах – виконавцях науково-технічних робіт в Україні. Аналіз охоплює період 2006–2014 років. Показано, що НАН України, залишаючись доволі стабільним сегментом вітчизняної наукової системи, має регресивний віковий профіль дослідників, який характеризується збільшенням частки дослідників старших вікових груп. Аналітично обґрунтовано основні причини регресивного вікового профілю дослідників у НАН України: особливість функціонування НАН України – як мережі наукових організацій та «академічної еліти»; неефективність механізму оновлення наукових кадрів; збереження мотивації до наукової праці у старшого покоління дослідників (працюючих пенсіонерів) водночас із повною її втратою у дослідників молодших вікових груп.Проанализирована возрастная структура исследователей в НАН Украины в сравнении с усреднённым возрастным распределением этой категории персонала во всей научной системе, а также в ведущих ведомствах – исполнителях научно-технических работ в Украине. Анализ охватывает период 2006–2014 годов. Показано, что НАН Украины, оставаясь стабильным сегментом отечественной научной системы, имеет регрессивный возрастной профиль исследователей, который характеризуется увеличением доли исследователей старших возрастных групп. Аналитически обоснованы основные причины регрессивного возрастного профиля исследователей в НАН Украины: особенность функционирования НАН Украины – как сети научных организаций и «академической элиты»; неэффективность механизма обновления научных кадров; сохранение мотивации к научному труду у старшего поколения исследователей (работающих пенсионеров) одновременно с полной ее утратой у исследователей более молодых возрастных групп.The age structure of researches from the National Academy of Sciences (NAS) of Ukraine in comparison with their average age structure across the Ukrainian R&D system and in the leading Ukrainian administrative departments performing R&D is analyzed. The analysis covers the period of 2006–2014. It is shown that the NAS of Ukraine, although being a stable segment of the national R&D system, has the regressive R&D profile of researchers, which features the increasing share of researchers in older age groups. The principal reasons for the regressive age profile of researchers in the NAS of Ukraine are analytically substantiated: operative specifics of the NAS of Ukraine as the network of research organizations and “the club of academic elite”, ineffective mechanism for rejuvenation of research staff; the preserved motivation to R&D work with the older generation of researchers (working pensioners) along with its total loss with researchers of young age groups

A laboratory study on cold-mix, cold-lay emulsion mixtures

This paper describes laboratory experiments and presents results for the performances of cold-mix, cold-lay emulsion mixtures. The main objective of the experiments was to evaluate and improve the properties of the cold mixtures. The mixture properties evaluated were: volumetric properties, indirect tensile stiffness modulus (ITSM), repeated load axial creep and fatigue. These properties were compared with conventional hot asphalt mixtures not containing any waste/recycled materials. To optimise the performances of the mixtures, a target of ITSM value of 2000 MPa was selected. At full curing conditions, the stiffness of the cold mixes was found to be very similar to that of hot mixtures of the same penetration grade base bitumen (100 pen). Test results also show that the addition of 1–2% cement significantly improved the mechanical performance of the mixes and significantly accelerated their strength gain. The fatigue behaviour of the cold mixes that incorporated cement was comparable with that of the hot mixtures

From Intercultural Encounters to Interprofessional Development -julkaisun toimittaminen

From Intercultural Encounters to Interprofessional Development (IE-ID) -julkaisu on Kymenlaakson ammattikorkeakoulun julkaisusarjassa syksyllä 2015 ilmestyvä artikkelikokoelma. Se on kaksikielinen TKI-julkaisu, jonka artikkelit perustuvat helmikuussa 2015 järjestetyn samannimisen konferenssin puheenvuoroihin. Konferenssi ja julkaisu toteutettiin Kymenlaakson ammattikorkeakoulun ja Humanistisen ammattikorkeakoulun yhteistyönä osana Opetus- ja kulttuuriministeriön rahoittamaa valtakunnallista YAMK-koulutus vahvaksi TKI-vaikuttajaksi -hanketta. Toiminnallinen opinnäytetyö koostuu kahdesta osasta. Opinnäytetyön produkti on syksyllä 2015 ilmestyvä IE-ID-julkaisu. Opinnäytetyön raportti käsittelee toimittajan näkökulmasta Kymenlaakson ammattikorkeakoulun TKI-julkaisun toimittamista. Opinnäytetyön tavoitteena oli tutkia, millaisista osista laadukas ammattikorkeakoulun TKI-julkaisu rakentuu. Työssä annetaan katsaus ammattikorkeakoulujen tutkimus-, kehitys- ja innovaatiotoimintaan sekä julkaisutoimintaan. Aihetta lähestytään julkaisutoimintaa ja kirjoittamista käsittelevien teosten sekä olemassa olevien ohjeistusten kautta samalla, kun käydään läpi IE-ID-julkaisun teon vaiheita. Opinnäytetyöprosessin aikana hyödynnettiin tutkivaa havainnointia. Havaintojen perusteella työssä pohditaan, miten julkaisuprosessia ja itse julkaisuja voisi julkaisujen tekijöille suunnattujen ohjeiden avulla parantaa. Artikkelien luettavuutta ja kirjoitusprosessin sujuvuutta voidaan edistää henkilökuntaa kouluttamalla ja laatimalla artikkelien kirjoittamista tukevia ohjeita. Julkaisujen toimittajien ohjeistuksessa tulisi kiinnittää tarkempaa huomiota erityisesti aikataulutukseen ja julkaisuprosessin hallintaan. Kymenlaakson ammattikorkeakoulu ja Mikkelin ammattikorkeakoulu yhdistyvät vuoden 2017 alussa. Opinnäytetyön havaintoja on mahdollista hyödyntää, kun aletaan määritellä toimintatapoja ja laatia ohjeistuksia Kaakkois-Suomen ammattikorkeakoulun julkaisutoiminnalle.From Intercultural Encounters to Interprofessional Development (IE-ID) is bilingual research, development and innovation (RDI) publication of Kymenlaakso University of Applied Sciences. It will be published by the end of the year 2015 and was made together with Humak University of Applied Sciences. The articles in the IE-ID symposium are based on presentations gave at the From Intercultural Encounters to Interprofessional Development Conference in Helsinki in February 2015. The conference and the symposium are part of the national network project Creating a strong R&D profile for Master's degree programmes. The project is founded by the Ministry of Education and Culture. The thesis was put into practice with an action-based approach and it has a two-part structure: the thesis report and the IE-ID publication that is the product. The thesis report describes the product’s publishing process from the viewpoint of a publishing editor. The objective of the thesis was to define components of a good research, development and innovation publication. The thesis provides an overview of the research, development and innovation operations in universities of applied sciences, of the publishing activities and proceedings of universities of applied sciences and of the phases that the work process of a publishing editor includes. The theoretical framework focuses on the writing process and publishing. Observations made during the thesis process came to a conclusion that for high quality result authors and editors need more specific instructions. Author instructions should introduce fluent writing process and legibility of the scientific papers. Publishing editors need more support for scheduling and project management. Observations and conclusions of this thesis can be used in the future when representatives of Kymenlaakso and Mikkeli University of Applied Sciences get together to discuss and resolve new shared publishing instructions and methods

Fostering innovation in a small open economy: The case of the New Zealand biotechnology sector

The New Zealand Biotechnology sector is worthy of study for several reasons. While there is a large and growing international literature on economic aspects of biotechnology innovation these studies concentrate on the United States and Europe. The New Zealand biotechnology sector may be expected to develop along a different trajectory as a consequence of a markedly different set of initial and framework conditions. Government has indicated a strong interest in fostering innovation and aims to concentrate on selected areas where New Zealand may be able to develop a new comparative advantage. One such area is biotechnology, which would build on New Zealand’s existing comparative advantage in the primary sector (dairy, forestry, meat, wool and horticulture). This paper describes the preliminary results of an ongoing study that aims to fill some of the gaps in our knowledge of innovation processes in New Zealand while using the international literature as a benchmark. The paper focuses on the drivers of innovation in the biotechnology sector; the role of networks and other linkages; the role of government and industry, the role of human and venture capital, and data from patenting

A lifeline for Europe's young radical innovators

In this Policy Brief, Reinhilde Veugelers shows that Young Innovative Companies (YICs) in Europe achieve significantly higher innovative sales than other innovation-active firms, representing 36% of sales having market novelties. She also confirms that YICs are more affected by credit constraints than other innovation-active firms. If Europe is to exit the current crisis intact and fulfill its full growth potential in the medium term, the author therefore believes Europe must develop policies and incentives which are tailored to the needs of European young radical innovators.

ICT cluster developments in European cities during the 1990's: developoment patterns and policy lessons

The paper is based on a research project called "MUTEIS"(Macro-economic and Urban Trends in Europe's Information Society), a research project designed to get a better understanding of the different patterns of growth of cities and their ICT clusters in 12 urban regions across Europe. The research reveals developments over the 1990's, starting a few years before the dot.com hype, end ending with the first signs of the dot.com crises. The paper is based on the results of fieldwork in two different kind of regions in Finland, Ireland, Sweden and The Netherlands. One region being the national frontrunner in taking up ICT, the other being more remote, but apparently successful in ICT too. While Europe as a whole seems to have been slow in its transition towards the new, digital economy, these smaller European economies actually witnessed a rapid uptake in computer- and internet use and in ICT investment more generally over the second half of the 1990's, accompanied by a remarkable growth and employment performance over those same years. However, behind the aggregate stories of success, sometimes initiated by the private sector, sometimes by public authorities, we can see significant differences in the regional and urban development patterns in the field of ICT- and Internet use. We aim to get a better understanding of these disparities. What are the triggers for growth of an ICT-cluster? How does it affect the growth of the region - and vice versa? Which parameters constitute the critical factors for a region's success - or failure? What do the development roadmaps look like? Are they market-driven or government-driven, or rather based on new forms of partnership? How about the impact of the European and national institutional frameworks? Does policy matter? The quantitative part of the analysis is based on statistical data. It describes the size, composition and growth patterns of the ICT sectors over the 1990's. The paper reveals some interesting findings relative to the size, the location and the national hierarchy of urban regions themselves. This is followed by an in-depth analyses of qualitative differences between the ICT-clusters in the urban regions. This part of the paper is based on available data, existing documents and approx. 20 interviews in each region. The successful regions witnessed a more rapid diffusion of IST goods and services throughout their economies, appeared to be better equipped to exploit some of the new digital growth opportunities, adapted existing "old" economic activities to the new e-business environment and more generally learnt more from the new opportunities to exploit those advantages across the European Union. Furthermore, the national policy makers appeared to be more aware of the increasingly limited degrees of freedom of their national policy actions, liberalising more rapidly their national telecommunications monopolies.

Working Paper 14-07 - Market services labour productivity growth in three small European countries: Austria, Belgium and the Netherlands

In order to improve our understanding of the divergent evolutions that recently emerged between European countries in terms of labour productivity, this paper compares the labour productivity growth of three small open European countries: Austria, Belgium and the Netherlands. The analysis focuses on market services as they are the most important single factor that is responsible for the divergences. The comparison shows that, while Austria and Belgium recorded a decrease in their productivity growth between 1995 and 2004, the Netherlands followed the American pattern and has recorded an increase in their growth rate since 1995. The decomposition of labour productivity growth makes it possible to underline the important role played by total factor productivity (TFP) in the Dutch upsurge in productivity growth. The breakdown of the data by industry shows the importance of the Distribution sector in the Dutch performance. The growth of TFP observed in the Distribution sector is then linked to different potential determinants: ICT accumulation and use, labour qualifications, R&D and innovation and regulations.Labour productivity

Investment in R&D, Costs of Adjustment and Expectations

This paper proposes a framework which integrates convex costs of adjustment and expectations formation in the determination of investment decisions in R&D at the firm level. The model is based on cost minimization subject to the firm's expectations of the stream of output and the price of R&D, and results in equations for actual and multiple-span planned investment in R&D and for the realization error as functions of these expectations. The model accommodates alternative mechanisms of expectations formation and provides a methodology for testing these hypotheses empirically. We derive estimable equations and testable parameter restrictions for the rational, adaptive and static expectations hypotheses. The empirical results using pooled firm data strongly reject the rational and static expectations hypotheses and generally support adaptive expectations.

Multinational Corporations as a Vehicle for Productivity Spillovers in Turkey

This paper examines the role of multinational corporations (MNCs) as the creator and diffuser of new and superior technologies. If these firms fulfil this attributed role, then they are expected to generate some spillovers to domestic industries in host economies. Theoretical and empirical studies propose that domestic technological capability is also important in this process. Our study addresses the question of productivity spillovers from the activity of MNCs, whether size of the recipient firms and the R&D intensity matter in this respect, and do spillovers change by time. The analysis utilizes a longitudinal data for the Turkish manufacturing industry in 28 3- digit level industries over the 1983-2000 period. Our results suggest that the spillovers from MNCs for the domestic sector of the Turkish manufacturing industry differentiate with respect to size of the recipient domestic firms and by time. Despite that, the evidence tends to speak in favor of negative spillovers in the Turkish manufacturing industry.Productivity spillovers, Multinational Corporations, Turkey.