Introduction to the Douglass C. North Memorial Issue

This is the accepted version of the following article: Geoffrey M. Hodgson, ‘Introduction to the Douglass C. North memorial issue’, Journal of Institutional Economics, (early view) 1 December 2016, which has been published in final form at DOI: https://doi.org/10.1017/S1744137416000400 ©Cambridge UniversityPress 2016This introduction considers the highly influential contribution of Douglass C. North to economic history and institutional economics, as it developed from the 1960s until his death in 2015. It sketches the evolution of his arguments concerning the roles of institutions, organizations and human agency. North’s conception of the economic actor became progressively more sophisticated, by acknowledging the role of ideology and adopting insights from cognitive science. Eventually he abandoned the proposition that institutions are generally efficient, to propose instead that sub-optimal institutional forms could persist. A few noted criticisms of North’s work are also considered here, ranging from those which are arguably off the mark, to others that retain some force. The contributions to this memorial issue are outlined at the end of this introduction.Peer reviewe

Gartcosh Steel Mill regeneration project

New hi-tech, innovative businesses are springing up where Scotland's heavy industries once reigned supreme. Redevelopment of the former Ravenscraig steel works in Lanarkshire is continuing apace with a new town centre, complete with commercial facilities, soon to be constructed. The site of the former Gartcosh Steel Mill, also in Lanarkshire, is also being transformed, and architects and engineers from the University of Strathclyde are driving forward the plans. Gartcosh Business Interchange is set to become a new 50-hectare business location which has already been selected as the location for the major new office campus for Scotland's new FBI-style crime unit.It is anticipated that Gartcosh will create up to 170,000 sq ft of business space which could support up to 4000 jobs

The Role of Finance in the Development of Technology-based SMEs

Purpose- In this paper we discuss an exploratory study that involved face to face, qualitative inter-views with 20 technology-based small firms (TBSFs) and seven qualitative interviews with key informants and funders. The TBSFs were all located in New Zealand (NZ), a small open economy with a limited domestic market, a population of 4.3 million, current GDP per capita of US$32,260 (2010) and arguably an immature and limited financial infrastructure. The central research question for this study was whether TBSFs can raise appropriate finance that allows them to start, develop and remain in NZ?Design/methodology/approach- An exploratory study has involved a programme of 20 in-depth, face to face qualitative interviews with the founders and chief executives of TBSFs drawn from three contrasting locations in New Zealand and from across different technology-based sectors. A further seven interviews have been conducted with key informants drawn from the three locations. Findings- As might be expected from theory, there was a heavy reliance on internal funding and bootstrapping methods, although a number of TBSFs had in addition managed to raise additional private capital through their own contacts and networks. All the sample had relied upon internal fund-ing to some extent. However, a total of 13 (65 per cent) either relied totally on internal funding (from the initial start-up) or relied upon a combination of internal funding, bootstrapping and private inves-tors. Context was important with New Zealand being a small open and relatively remote economy when compared to the UK; where the EU provides a significant market for TBSF development. In contrast, NZ TBSFs, of necessity were heavily involved in distant overseas markets. Research Implications- There was evidence of a distinct finance gap in the external equity market in New Zealand. For amounts below NZ$1m, these could be sought from networks of business angels, even though such sources were limited and restricted. If the funding sought was in the range NZ$1m -$5m; this was likely to fall between the informal and formal venture markets. Associated with this was a distinct preference for relying on internal funding by NZ TBSFs. Originality/value- This paper provides a contribution by being the first serious study of TBSF devel-opment in New Zealand, specifically focusing on the role of finance. The example of TBSF develop ment in New Zealand’s small, open economy is significant and comparisons are drawn with the extent of funding gaps and similar issues in TBSF development from a UK based study. These comparisons enable the findings to be set in context and implications developed. Research paper Reference to this paper should be made as follows: Deakins, D., and North, D. (2013). “The Role of Finance in the Development of Technology-based SMEs: Evidence from New Zealand”, Journal of Entrepreneurship, Business and Economics, Vol. 1 No. 1/2, pp. 82–100

Innovation and business performance - a provisional multi-regional analysis

Although much attention has focussed on the determinants of firms' innovation performance, the relationship between innovation and business performance is less well defined. In this paper we use data from identical plant level surveys conducted in six regions of the UK, Germany and Ireland to examine this relationship and identify some of the implications for regional innovation initiatives. The survey data used was collected by postal survey during 1999 and 2000. In all over 2000 plants responded to the surveys which provide regionally representative information about innovation activity, IT adoption and a number of indicators of business performance. Four main indicators of business performance are examined here: sales and employment growth, export performance, profitability and productivity (value added per employee). The analysis is based on a simultaneous econometric model explaining plants' innovation activity and business performance. Discussion focuses on a number of key themes. First, core-periphery differences are explored by contrasting analytical results for peripheral (Northern Ireland, Scotland) and 'core' regions (Bavaria, Baden-Wurttemberg) within the sample. Second, attention is focussed on the performance effects of firms, different innovation profiles relating to product and process development but also radical and more incremental innovation activity. Thirdly, contrasts between small and larger businesses are considered and the sensitivity of firms, innovation and performance to their operating environment is explored. The paper concludes with an assessment of the implications of the analysis for regional innovation initiatives and their potential impact on business development.

French osteotomy for cubitus varus in children: a long term study over 27 years

Background: Cubitus varus is a cosmetically unacceptable complication of supracondylar fractures of the elbow in children. We have performed the lateral closing wedge (French) osteotomy to correct the varus for 27 years. More complex osteotomies have been described to correct the associated hyperextension and internal rotation deformities and to prevent a prominent lateral condyle. Methods: We retrospectively reviewed 90 consecutive patients (1986-2012). The mean age of the patients at surgery was 8.2 years (3 to14 years). The varus angle (mean 21.4°, range 8°- 40°) was assessed pre-operatively with the humero-elbow-wrist (HEW) angle. The postoperative carrying angle (mean 10.4) and the pre- and postoperative range of movement were assessed clinically. The lateral condylar prominence index (LCPI) was retrospectively measured at union. Results: Seventy five (93.3%) of the patients had a good or excellent result. Six (6.7%) had a poor result (residual varus, loss of >20°of pre-operative range of flexion or extension or a complication necessitating repeat surgery). There were no neuro-vascular complications. The mean LCPI was +0.14. Conclusions: The results of the French osteotomy are comparable to the more technically demanding dome, step-cut translation and multi-planar osteotomies, with a lower complication rate. The literature reports adequate remodelling of the hyperextension deformity ( ≤ 10 years) patient. Level of evidence: Level IV: Case serie

Institutional transition and the financing of high tech SMEs in China: a longitudinal perspective

publication-status: Submittedtypes: ArticlePublished as open access journal. Reproduced with the publisher's permissionThis paper examines changes in Chinese high-tech SMEs' access to both bank and informal finance in response to the institutional changes relating to the private sector and financial transactions.Using a theoretical framework based on institutional theory, the paper distinguishes between changes at different institutional levels and between formal and informal institutional arrangements as they relate to the availability of business finance during the period covered by China's economic reforms. The empirical evidence provides a longitudinal perspective by drawing upon the findings from two rounds of face to face interviews with the owners of high-tech SMEs and finance providers in the Chinese provinces of Guangdong and Guangxi covering two sequential time periods: from the early 1990s to 2004 and then from 2004 to 2009. The findings show that the responses of high-tech SMEs and informal investors to the institutional changes have been more positive compared with those of banks. Consequently, access to informal sources of finance has grown, including to longer term equity finance, whereas that to bank finance has not significantly improved. The paper demonstrates that the effects of the overall institutional framework on the optimal selection of formal and informal arrangements to secure funding differ between types of finance provider and are not necessarily positively associated with the phases of the institutional transitions

Active Athletes' Perceptions of Career and Education Services in the United Kingdom

This study examined perceptions of career and education services among a sample of active athletes in the United Kingdom. Employing both qualitativeand quantitativemethodologies, athletes eligible to receive support services through the United Kingdom Athlete Career and Education Program (ACE UK) were assessed in terms of their views of athlete advisers and ACE UK services. This research utilized a two-stage methodology. Stage one was qualitativein nature and involved nine face-to-face interviews with athletes drawn from the ACE UK program database. These interviews were used to develop a grounded understanding of the language used and the key issues experienced by the athletes. Stage two was a self-administered postal survey. The aim of this stage was to examine the extent to which the issues and themes generated in the first stage were shared by the wider ACE UK athlete population. The questionnaire employed in stage two was four pages long and consisted primarily of closed questions focusing on topics developed by examining the key issues emerging from the first stage transcripts. These included athletes' education and career profiles, short term plans, long-term plans related to retirement from competitive sport (including expected years until career termination), and plans about life after sport. Some open-ended questions were also included to allow the athletes to expand on their experiences of, and opinions on, the ACE UK program. A total of 561 valid and completed questionnaires were returned by the athletes (response rate=57%). There were slightly more males (54%) than females (46%) in the sample, and more able-bodied athletes (83%) than athletes with disabilities (17%). The average age of the overall sample was 26.0 years old. A total of 37 individual and team sports were represented. Service provision is coordinated through an 'athlete adviser' - ACE UK athlete advisers are typically ex-athletes who have received training in the provision of career and education services, but primarily have been recruited because of their understanding of the needs of elite athletes. Results revealed that athletes perceived advisors as central to their career and education service provision, and that this accounted predominantly for its success. The adviser's role as a friend, mentor, and motivator was found to be as significant as the adviser being a source of information and advice, as well as a conduit to other more specialized services. Although a large proportion of athletes were aware of and were using ACE UK services, the reasons for not participating included a lack of perceived need, lack of awareness, athletes' time constraints, and access difficulties

Paradise lost? The case of technology-based small firms in New Zealand in the post global financial crisis economic environment

In this paper we draw on two studies that used face to face, qualitative interviews with technology-based small firms (TBSFs) and informal interviews with key informants. The interviews took place with two data sets of TBSFs, the first with 20 firms in 2011 and the second with 34 agri-business TBSFs in 2013. This allows some temporal comparisons of the funding environment for TBSFs in New Zealand, but this was not a longitudinal study as the two data sets were composed from the recruitment of different firms. However, all the TBSFs were located in New Zealand, a small open economy with a limited domestic market, a population of 4.4 million, GDP per capita of US$32,260 (2010) and arguably an immature and limited financial infrastructure. This environment is compounded for founding technology-based entrepreneurs, since to develop and stay in New Zealand means accepting being a long distance from major overseas markets, when in theory at least TBSFs have potential to be in global markets. Such TBSFs, therefore, face pressure to move overseas for markets and for finance and other resources; if successful they may make attractive takeover targets for overseas investors and MNCs. Despite these challenges, TBSFs have been promoted as key contributors to GDP and a way of closing New Zealand’s productivity gap (compared with Australia and other developed nations). Although we find evidence of the development of embryonic regional and specialised business angel networks (BANs) on the supply-side of finance, there is still a marked reluctance to undertake a search for external equity and evidence of discouraged borrowing and discouraged grant-based applications on the demand-side. New Zealand is sometimes described as “paradise ” due to its natural and outstanding beauty, but in our conclusions we suggest that the comparatively stable economic environment has not operated in favour of TBSFs

Duration Measures for Corporate Project Valuation

Sensitivity analysis is a very common exercise performed with the forecasting of project cash flows. In this paper, a duration-type measure is generated that provides a single number for the assessment of project cash flows relative to changes in the discount rate (or adjusted for changes in a particular cash flow model parameter). The calculation is no more difficult than the duration measures that already exist for bonds. Yet, the calculation provides valuable insight that many times is lost when performing sensitivity analysis. Further, at a minimum, the measure provides a gauge for the consequences of mis-specifiying the discount rate for a project