The role of national intellectual capital in the digital transformation of EU countries. Another digital divide?

Purpose: This study, an exploratory one, aims to empirically investigate the association of national intellectual capital (NIC) with the national digital transformation readiness of the European Union's (EU’s) member states. Apart from building the conceptual model of NIC, this study explores the role of NIC dimensions in the digital divide between European countries. Design/methodology/approach: Based on the literature review and the available EU statistical data and indexes, the theoretical framework and conceptual model for NIC were developed. The model explores the relation of NIC and its dimensions (human, social, structural, relational and renewable/development capital) on the readiness of European countries for digital transformation and the digital divide. Significant differences between EU countries in NIC and digital readiness were tested. Multiple linear regression was used to explore the association of each NIC dimension with digital transformation and digital divide within the EU. Findings: Despite a positive association between all dimensions of NIC and digital transformation readiness, the proposed model of NIC was not confirmed in full. Regression analysis proved social capital and working skills, a dimension of human capital, to be the predictors of digital transformation at a national level, able to detect certain elements of digital divide between EU member states. Structural capital, knowledge and education, as dimensions of human capital, were predictors of the digital divide in terms of the integration of digital media in companies. Research limitations/implications: This research has a limited propensity for generalisation due to the lack of common measurement models in the field of NIC exploration. Practical implications: This research offers policy makers an indication of the relationships between NIC and digital transformation, pointing out which dimensions of NIC should be strengthened to allow the EU to meet the challenges of digital economy and to overcome the digital divide between EU member states. Social implications: The use of digital technologies is key in creating active and informed citizens in the public sphere and productive companies and economic growth in the business sphere. Originality/value: This study provides an original theoretical framework and conceptual model through which to analyse the relationship between NIC and digital transformation, which has thus far not been explored at the level of the EU. This research makes an original contribution to the empirical exploration of NIC and produces new insights in the fields of digital transformation and intellectual capital

Explaining participation in the informal economy a purchaser perspective

Purpose Participation in the informal economy has been predominantly explained from a supply-side perspective by evaluating the rationales for people working in this sphere. Recognising that many transactions in the informal economy are often instigated by customers, exemplified by purchasers asking “how much for cash?”, the aim of this paper is to explain the informal economy from a demand-side perspective by evaluating citizens‟ rationales for making purchases in the informal economy. Here, we test three potential explanations for acquiring goods and services in the informal economy, grounded in rational economic actor, social actor and formal economy imperfections theoretical perspectives. Methodology To do this, a 2013 Eurobarometer survey, involving 27,563 face-to-face interviews conducted in 28 European Union member states is reported. Findings The finding is that all three rationales apply but the weight given to each varies across populations. A multinomial logit regression analysis then pinpoints the specific groups variously using the informal economy to obtain a lower price, for social or redistributive rationales, or due to the failures of the formal economy in terms of the availability, speed and quality of provision. Practical Implications The outcome is to reveal that the policy approach of changing the cost/benefit ratios confronting purchasers will only be effective for those purchasers citing a lower price as their prime rationale. Different policy measures will be required for those making informal economy purchases due to the shortcomings of the formal economy, and for social ends. These policy measures are then discussed. Originality/value The value and originality of this paper is that it explains participation in the informal economy from a purchaser, rather than the predominant supplier, perspective

Overcoming barriers to the implementation of alternative fuels for road transport in Europe.

The success of implementing alternative fuels for road transport depends on their cost, performance and reliability. This paper focuses on the use of natural gas and LPG, hydrogen and biofuels in Europe. A brief presentation is given of their technical development status, their market potential, and barriers to their implementation in various market segments. Some market barriers are common to many new technologies, and can be overcome through adequate policy measures at European level. Generally, a combination of policies is required, and a number of supporting measures increase their effectiveness. The following policies affecting energy use in transport are discussed: market incentives, policies targeting technology and vehicle efficiency, and overall system improvement

The impact of technological and non-technological innovations on export intensity in SMEs

Purpose: This study investigates how both technological and non-technological innovations influence export intensity in small and medium-sized enterprises (SMEs). In addition, we report results for each firm size category of micro, small and medium firms, and thus reflect SME heterogeneity. Design/methodology/approach: The research methodology is based on the analysis of the Eurobarometer 2014 dataset from 28 EU Member States, Switzerland and the United States covering the period 2011-2014. To statistically test the three defined research hypotheses on individual and joint effects of both types of innovation, a multiple treatment model was estimated. The advantage of this empirical strategy is that it takes into account endogeneity of both technological and non-technological innovations. Moreover, we employ the production approach or the direct test of complementarity between technological and non-technological innovations. Findings: Empirical findings indicate that technological innovations positively affect export intensity in small and medium firms, while non-technological innovations exert no influence on export intensity, regardless of the firm size. Moreover, the results from the direct test suggest no evidence of the complementary effects of technological and non-technological innovation on export intensity.Implications: We infer that SMEs would benefit more from public support targeting both exports and innovations than micro firms, as the sunk costs of exports are too high for the latter. However, public support aimed at reducing fixed costs of exports could be particularly beneficial for micro firms. Originality/value: The research fills a literature gap on the joint impact of technological and non-technological innovations on export intensity while taking into account endogeneity of innovation activities and SME heterogeneity

European academic brain drain : A meta-synthesis

In a globalising world, the international mobility of academics and researchers is important for their career. However, increasing migration of academics in the form of an academic brain drain is becoming a major challenge especially for Europe due to an ageing population. The issue of brain drain has been addressed usually through quantitative studies that fail to explore the in-depth reasons behind it, and present standard outcomes. Through a synthesis of qualitative literature over two decades (2000-2020), this paper presents a new perspective of the root causes of academic brain drain in Europe. After careful examination of the qualitative literature, five factors have been found to be responsible for the outflow of human capital. These include: (1) attractive salaries outside Europe; (2) short-term fixed contracts for early career researchers; (3) unfair recruitment procedures; (4) attractive migration policies and (5) the indirect role played by internationalisation policies to encourage permanent mobility.Peer reviewe

The East-Central European new donors: mapping capacity building and remaining challenges

In the past decade, the East-Central European countries were provided significant external capacity building assistance in order to help their emergence as donors of foreign aid. This paper aims to map these capacity development programs and identify where they have helped and what challenges remain for the new donors. The main conclusion is that while capacity building has been instrumental in building organizational structures, working procedures and training staff, deeper underlying problems such as low levels of financing, lacking political will, the need for visibility and low staff numbers continue to hinder the new international development policies

Enhanced broadband access as a solution to the social and economic problems of the rural digital divide

Peer reviewedPublisher PD