The Contribution of University Spin-Offs to the Competitive Advantage of Regions

The regional knowledge creation is the dominant economic explanation of regional competitiveness. In view of this, the commercialization and diffusion of knowledge/technology, developed in academia, have increased the attention of policy makers as strategic and key element, supporting and fostering the regional socio-economic development and competitiveness. University spin-offs (USOs), companies created to exploit the knowledge and technology developed within a university, are a potential and active way to stimulate the knowledge growth of economies in different regional contexts. The paper tests the hypothesis that USOs may partly determine the competitive advantage of the regions. Based on a longitudinal sample of 952 USOs located in 20 Italian administrative regions and by applying 6 linear-mixed models, the results show that USOs effectively contribute in fostering regional competitiveness only in terms of number (count) of USOs from a given university, while the effect of their patent activity is weak. On the basis of the results, some remarkable theoretical, managerial, and policy implications are advanced

The Search for an International Accounting Standard for Insurance: Report to the Accountancy Task Force of the Geneva Association

This paper seeks to provide an understanding of the background to the search for an international standard for insurance contracts, which was initiated by the International Accounting Standards Committee (IASC) in 1997 and is still proceeding under its successor, the International Accounting Standard Board (IASB). To do this the paper traces the evolution of the fair value initiative of the IASC/IASB which at the outset was envisaged for all financial instruments, but over time has been amended as the standard setters realized that there would be major problems of implementation, after listening to the views of preparers, particularly the commercial banks, and users, including financial services regulators. The paper identifies the origins of the fair value framework as emanating from an earlier accounting framework based on current values that was intended to be applied generally to all enterprises. The current value initiative, although conceptually sound, has only been adopted in part, again because of problems of implementation. The theoretical underpinning of the current value and fair value accounting approaches are discussed. The paper attempts to show why any early resolution to the insurance contracts project has proved so difficult. This difficulty is evidenced by the fact that insurance contracts have been excluded from the scope of the accounting standard for financial instruments in the United States, FAS 133, as it was clearly recognized that there is no ready market to trade and hence determine fair values for insurance contracts. It concludes by addressing some general factors that must be kept in focus when developing an international accounting standard and some particular factors that should be considered if there is to be a workable and transparent system of financial reporting which captures the economic substance of the commercial operations of insurance companies. Part of the suggested solution is to integrate the insurance contract project more into the revised proposed standard for all financial instruments, IAS 39, and for the IASB to work more closely with insurance companies, especially with their in-house accountants and actuaries. This greater co-operation is now possible as the project moves into the field testing stage. The Geneva Papers on Risk and Insurance (2003) 28, 151–175. doi:10.1111/1468-0440.00215