A Model of Growth with Intertemporal Knowledge Externalities, Augmented with Contemporaneous Knowledge Externalities

The present model is essentially Romer’s (1990) model of endogenous growth with intertemporal knowledge externalities, augmented with contemporaneous knowledge externalities to give a richer explanation of the growth process. Both types of knowledge spillovers seem essential to capturing the features of knowledge in a model of growth. Introducing synchronic complementarities and knowledge externalities across inventive firms immediately creates the possibility of multiple equilibria and threshold effects in the present model. Another advantage of this theoretical formulation is that it allows for an analysis of the effects on steady-state growth of a variety of technology policies relying on changing knowledge complementarities parameters.Endogenous growth, innovation, knowledge complementarities, knowledge externalities, general equilibrium

Competitiveness and Public-Private Partnerships: Towards a More Decentralised Policy

Public-private partnerships are a recent instrument for social and economic development policies. A more decentralised policy is supposed to increase focus and effectiveness and to involve agencies that are closer to firms and that have a more narrow range of objectives. In this contribution, we analyse the pattern of the so-called PIP (Partnerships and Public Initiatives) projects, approved between 2000 and the 30th June of 2003 in the framework of the Portuguese Operational Program for the Economy. By using HOMALS and K-means cluster analysis, we were able to characterise the decentralisation pattern and to identify typical clusters for the PIP projects. The results show clearly that a greater decentralisation is linked to partnerships while public initiatives are closer to the conventional pattern of public intervention. The results also show that partnerships are mainly focused in specific sectors and / or in specific regions, being conducted by private agencies that have chiefly a sectoral or regional nature. However, we have observed a trade-off between policy decentralization and structural change goals because decentralization has originated a bias towards the present more representative sectors. Also, decentralization has generated an extremely unequal access of local economies to the PIP instrument, favoring the more developed areas of the country.Public-private partnerships; Competitiveness policy; Decentralization

Aghion And Howitt’s Basic Schumpeterian Model Of Growth Through Creative Destruction: A Geometric Interpretation

The present paper takes a geometric approach to characterize the competitive forces behind innovation and dynamic general equilibria determination in the model of growth through creative destruction constructed by Aghion and Howitt (1992). All can be comprehended intuitively from the geometric presentation. While Aghion and Howitt‘s original presentation of the basic model was essentially analytical, often with fairly intricate mathematics focusing on stationary equilibria with positive growth, the geometric presentation taken here has the benefit of making what in the original paper was a bundle of mathematical notation more comprehensible intuitively.Endogenous growth, innovation, creative destruction, general equilibrium

Environment Based Innovation: Policy Questions

Natural resources and physical cultural resources, termed in this paper as “Environmental Resources”, can be important assets for regional competitiveness and innovation. In recent years, these kinds of assets are being more considered in regional development strategies, because they can be a source of differentiation and of new competitive advantages. In this paper we discuss the role of environmental resources in regional innovation policies. We begin by relating environmental resources with regional development and by emphasizing some opposite views in what refers to the function of environmental resources in regional development. Next we deal with the relationship between regional competitive advantages and innovation strategies. The specificities and problems that arise when the aim is to construct competitiveness advantages through environmental resources valorisation are the core of section 3. In that section, we highlight the characteristics of environmental resources and we check the applicability of the “natural resource curse” to the dynamics based on the valorisation of environmental resources. The reasons that justify the public intervention as well as difficulties concerning the adequate level of intervention (local / regional / national) are also examined. The paper ends with some conclusions and policy implications.Competitiveness, Environment, Innovation, Innovation Policies, Regional Development

Competitiveness and Public-Private Partnerships: Towards a More Decentralised Policy

In this contribution, we analyse the pattern of the so-called PIP (Partnerships and Public Initiatives) that have been approved between 2000 and mid-2003 in the POE1 framework. In particular, we will evaluate the extent of decentralisation that this new instrument has generated in competitiveness policy. Partnership approaches are a relatively recent phenomenon, but partnerships have received widespread attention and support from economic and political agents, including policy makers at national, regional and local levels. In fact, the term “public-private partnership” covers a wide range of concepts and practices. In our contribution, we will focus on partnerships in a competitiveness policy framework. In a first section, we discuss briefly the meaning and the extent of what we call competitiveness policy. Then, in a second section, we focus our attention in public-private partnerships as a specific instrument for policy. In particular, we make a first assessment on the distinctive principles that differentiate public-private partnerships from more traditional instruments such as direct investment in public agencies or direct subventions to firms. We follow the perspective that these principles, mainly decentralization of policy, may contribute to a greater effectiveness of policy, because a more decentralised policy is supposed to increase focus and accountability and to involve agencies with specialized skills and a more narrow range of objectives. But, also, we will refer that some inefficiencies and some lack of equity may arise from the use of private-public partnerships instrument. Finally, in the main section of this contribution, we will analyse the above-mentioned questions considering the case of the 131 PIP projects approved and financed by the POE between 2000 and mid-2003. As the major part of the variables used are nominal, and in order to define the decentralization pattern induced by this new instrument, we will use multivariate data analysis techniques in order to establish associations between several variables linked to decentralisation criteria and, also, to identify clusters of projects.

Public-Private Partnerships and the Promotion of Collective Entrepreneurship

Public-private partnerships (PPP) are a recent instrument for social and economic development policies. Within the framework of competitiveness policy, PPP are an adequate instrument to promote collective entrepreneurship. Through this instrument, some market failures can be overcome and a better provision of strategic services can be afforded to firms. Also, PPP can be able to promote co-ordination between public and private partners and lead to specific innovative networks. PPP correspond to a more decentralised policy and they are supposed to increase focus and effectiveness and to involve agencies that are closer to firms and that have a more narrow range of objectives. In this contribution, we analyse the pattern of the so-called partnerships projects, approved between 2000 and the 30th june of 2003 in the framework of the Portuguese Operational Program for the Economy. By using HOMALS and K-means cluster analysis, we were able to characterise PPP and to identify typical clusters for the PPP projects. On one hand, the results show that policy decentralization brought by partnerships has promoted or reinforced a more specialized institutional framework (mainly national, sectoral or regional entrepreneurial associations). But, on the other hand, PPP had a small impact in the promotion of specific networks and/or in innovation. Collective entrepreneurship induced by PPP instrument has presented a clear bias toward the provision of services that have a public or semi-public nature, by the fact that firms that can use these services are in a large number (all the firms of a sub sector or even larger universes). But technological projects and/or projects addressed to specific networks of firms were very few. In particular, the impact of PPP on structural change seems to have been short.Public-private partnerships; Competitiveness policy; Entrepreneurship; Collective entrepreneurship

Barriers to Innovation faced by Manufacturing Firms in Portugal: How to overcome it?

This paper aims to identify the barriers to innovation that influence the innovation capability of Portuguese industrial firms. The literature review about innovation makes use of two references approaches: (i) the systemic; and (ii) the networks and inter-organizational relationships. The database is obtained through the Community Innovation Survey II (CIS II) conducted by EUROSTAT. Furthermore, from the results several public policies are proposed in order to overcome the restraining factors of the entrepreneurial innovative capability.Innovation; Entrepreneurial Innovative Capability

Management of urban air logistics with unmanned aerial vehicles: The case of medicine supply in Aveiro, Portugal

Purpose: This research aims to investigate the relation between urban logistics and all delivery systems used. The unmanned aerial vehicle (UAV) and the unmanned aerial system (UAS) have been under investigation in the world of logistics, having been pointed as the next logistic technology. For that reason, this article proposes the use of UAV in urban logistics. Design/methodology: We set for the methodology study the current state of this system and analyze what lies ahead soon. Based on this information, we intend to implement a scenario of deliveries in an urban environment. This scenario will be in the city of Aveiro and consists of the delivery of medicines into pharmacies located in an urban environment. With this study, we pretend to find the best current and future solution to operate in an urban environment, with the conventional vehicle or the UAV/UAS. Findings: The legal implications for the use of UAV/UAS are one important factor that can set back the use of these technologies due to the lack of legislation. Although this technology has some limitations in endurance and payload, this investigation reached a consensus in the use of UAV for logistics in urban areas, in small payloads (around 15 kg), and low endurance (around 25 min). The UAV/UAS brings excellent advantages that the conventional vehicle cannot overcome: direct routes; traffic congestion; and environmental legislation. Practical implications: This study brings an overview of a possible scenario for urban logistics. Although this is currently not possible, soon, this scenario could be implemented. This would bring a reduction in operation costs and reduce the congestion in the urban cores of the cities. Originality/value: Based on this research, this delivery system could, in the future, help and be the starting point for UAV/UAS logistics, specifically in the delivery of medicines.Peer Reviewe

Economics of the Firm and Economic Growth. An hybrid theoretical framework of analysis

The characterization of individual firms is an essential step toward the study of the behaviour of industries and other more aggregated units of economics, and so to the analysis of economic growth processes. Hence, the main goal of this study is to achieve a critical discussion around the conceptualisation of the firm and its role in the dynamical process of economic growth. The approach to the main topic starts with the construction of a theoretical matrix of the economics of the firm, opening with the two major traditions of institutionalist thought in economics, and evolving then towards some considerations around the contractual and the evolutionary approaches. Another important theoretical stream that deals with organizations in economic and sociological terms also appears, the population ecology approach. After this overview, it is developed a cross-exam of distinct theoretical perspectives and the identification of possible flaws of the neoclassical theory. This confrontation, which goes throughout many imperative and controversial issues within economics such as the nature of the firm and the cognitive capacities of economic agents, results in a systematisation about the impact of this discussion on economic growth. The conclusions appear as crucial to develop further research aiming the construction of economic growth models based on a microeconomics that is closer to the reality of firms.Firm; Economic Growth; Institutionalism; Evolutionary theory; Contractual Theory; Ecology Population Theory.