Crisis as a catalyst: the role of Schumpeterian innovation in the Lithuanian economy

What circumstances allow businesses to flourish in a stagnant world economy? We ask that question in our discussion of the uniquely favorable circumstances of the biotechnology sector in Lithuania. The purpose of this paper is to analyze Lithuania’s ability to expand its economy during a time of crisis, focusing on its unique ability to innovate in such sectors as biotechnology.Schumpeter, innovation, Kondratiev wave, biotechnology, business cluster theory, Financial Economics, International Development, Research and Development/Tech Change/Emerging Technologies, O31, O32,

Feeling the heat: Financial crises and their impact on global climate change

This interdisciplinary paper uses world-systems analysis as a theoretical framework to argue that both the 1870s, 1930’s economic depressions reduced mean global temperatures. As global consumer demand fell, factories worldwide began producing less commodities and, as a result, emitted less greenhouse gasses. We find that in both instances there is evidence to support the hypothesis that financial crises lead to cooler temperatures.Kondratiev waves, Schumpeter, world-systems analysis, environmental economics, global climate change, Environmental Economics and Policy, Financial Economics, N22, N50, Q54,

An Investigation of the Influence of Economic Growth on Taxes in Lithuania

The level of economic interstate competition has been growing significantly in recent decades. Countries are constantly trying to apply lower tax rates to attract large businesses to their territory. They are also trying to improve the efficiency of tax collection on their area of jurisdiction. The paper examines how economic growth affects Lithuania’s tax collections. Based on quarterly data of the 2002–2022 period, ARDL models for the main types of taxes were considered. We find that for all types of taxes, the models have the same structure, which allows comparing the impact of gross domestic product on tax collections both in the short term and in the long term. Analysis showed that the largest reserves are in the corporate sector, where the growth in tax revenues exceeds gross domestic product growth by 115%. The long-term effect for general taxes is almost 19% higher than the growth of the tax base, that is, the Lithuanian economy as a whole has a tendency for a reduction of the shadow economy, which means that there are significant opportunities for further growth

A data science-based marketing decision support system for brand management

To improve the marketing activity and brand management and justify the most effective marketing decisions, organizations should implement different information technologies, mathematical methods and models into the marketing decision support system (MDSS). The goal of this paper is to form an architecture of an MDSS, the model base of which is developed on Data Science tools, in particular regression analysis and machine learning methods. The proposed MDSS is a multi-agent information system comprising nine intellectual agents (market environment monitoring, data processing, marketing mix modeling, price policy support, portfolio management, strategic analysis, forecasting, customer segmentation, and customer classification). The functionality of these agents is realized through Data Science, which allows for the optimization of marketing activities (e.g., an effective brand management strategy and its elements (portfolio strategy, price policy, and media strategy) or solving the problems of attracting new and retaining current customers with the maximal return on marketing investments). The MDSS analyzes the marketing environment, media activity, and business indicators by constructing different models and forecasting various combinations of marketing factors to select the best one. The joint work of MDSS agents provides decision-makers with interactive reports. The research findings offer a scientific basis for making effective marketing decisions based on data, and the proposed MDSS can become part of an intelligent system for planning marketing activities

A comparison of the Lithuanian and Russian biotechnology sectors

The goal of this paper is to compare the development of the Lithuanian and Russian biotechnology sectors. In case of Lithuania we tried to uncover what are the circumstances surrounding the favorable development of the biotechnology sectors in Lithuania. In case of Russian Federation we looked at encouraging as well as discouraging circumstances surrounding this segment of economy. Drawing upon Schumpeter’s ideas of innovation and Porter’s business cluster theory, we argue that Lithuania is “at the right place and the right time” to make it a regional leader in Baltic biotechnology. Russia, on the other hand, is in the process of developing biotech sector in order to at least to catch up with other countries (including Lithuania). It will take time and continuous governmental support for Russia before this sector starts contributing significantly to Russian economy

RYANIZATION: HOW ONE EUROPEAN AIRLINE EXEMPLIFIES THE “MCDONALDIZATION” MODEL

The low-fare airline business has dramatically changed the face of commercial aviation in Europe. The main idea and strategy of airlines following this approach is to focus on cheap fares rather than comfort for passengers. However, the majority of low-fare airlines do not simply copy a given system of their competitors; rather, they design their own strategy by implementing various elements which can be considered as “low-fare”-related. The authors of this article seek to lay a theoretical groundwork in the analysis of low-fare airlines. We employ the “McDonaldization” model of economic sociologist George Ritzer, which was heavily influenced by the German economist and sociologist Max Weber, to analyze cost-saving methods of the Irish airline Ryanair.The authors show how McDonaldization is able to mirror and describe this current trend in the aviation business. According to the results of this study, ‘Ryanair’ (and not its American counterpart Southwest Airlines often used as a synonym for low-fare airlines) is the airline which has most radically applied the low-fare idea

Ryanization : how one European airline exemplifies the "Mcdonaldization" model

The low-fare airline business has dramatically changed the face of commercial aviation in Europe. The main idea and strategy of airlines following this approach is to focus on cheap fares rather than comfort for passengers. However, the majority of low-fare airlines do not simply copy a given system of their competitors; rather, they design their own strategy by implementing various elements which can be considered as "low-fare"-related. The authors of this article seek to lay a theoretical groundwork in the analysis of low-fare airlines. We employ the "McDonaldization" model of economic sociologist George Ritzer, which was heavily influenced by the German economist and sociologist Max Weber, to analyze cost-saving methods of the Irish airline "Ryanair". The authors show how McDonaldization is able to mirror and describe this current trend in the aviation business. According to the results of this study, "Ryanair" (and not its American counterpart Southwest Airlines often used as a synonym for low-fare airlines) is the airline which has most radically applied the low-fare idea

Crisis as a catalyst: the role of Schumpeterian innovation in the Lithuanian economy

What circumstances allow businesses to flourish in a stagnant world economy? We ask that question in our discussion of the uniquely favorable circumstances of the biotechnology sector in Lithuania. The purpose of this paper is to analyze Lithuania’s ability to expand its economy during a time of crisis, focusing on its unique ability to innovate in such sectors as biotechnology

Baltic and Asian tigers: The biotechnology sectors of Lithuania and India as sources of innovation and economic growth

This paper explores similarities and differences between the biotechnology sectors of Lithuania and India. In both cases, the biotechnology sectors are major motors of economic growth. In the case of Lithuania, we borrow from Schumpeter’s ideas of innovation and Porter’s business cluster theory, and argue that Lithuania is “at the right place and the right time” to make it a regional leader in Baltic biotechnology. Although very different, India’s biotechnology sector is also rapidly changing and innovating

Inovacijos „senojoje“ ir „naujojoje“ Europoje : Bavarijos Ir Lietuvos biotechnologijos sektorių palyginimas

Šiame straipsnyje yra keliamas klausimas, kokios sąlygos sukuria palankią aplinką biotechnologijos sektoriaus plėtrai „naujojoje“ Europoje (Lietuvoje) ir „senojoje“ Europoje (Bavarijos regionas Vokietijoje). Remiantis Schumpeter’io inovacijų koncepcija ir Porter’io verslo klasterių teorija yra teigiama, kad Lietuva yra „reikiamu metu ir reikiamoje vietoje“ , kad taptų Baltijos regiono biotechnologijos lydere. Tuo tarpu Vokietijoje biotechnologijos sektorius šiuo metu yra gana stiprus, jo plėtra vyksta jau kurį laiką ir jis ženkliai prisidėjo prie šalies ekonomikos plėtros. Straipsnyje daroma išvada, kad tiek Lietuvoje, tiek Bavarijoje, vyriausybės atitinkama verslo klasterių parama reikšmingai prisidėjo prie atitinkamų regionų biotechnologijos sektorių susiformavimo ir plėtros.The goal of this paper is to uncover what are the circumstances surrounding the favorable development of the biotechnology sectors in “new” Europe (Lithuania) and “old” Europe (the Bavarian region of Germany). Drawing upon Schumpeter’s ideas of innovation and Porter’s business cluster theory, we argue that Lithuania is “at the right place and the right time” to make it a regional leader in Baltic biotechnology. Germany, on the other hand, has had a strong biotechnology sector that has been developing for some time and is already contributing greatly to its economy. In both Lithuania and Bavaria we find that determined government support and business clusters greatly aided in the formation of the respective regions’ biotechnology sector development