21st Century Environmental Challenges: The Need For a New Economics

Research on environmental economics and policy has been dominated by neoclassical theory. While there have been advances in this approach, including more sophisticated analysis of imperfect information and time, and the development of endogenous growth theory, neoclassical models contain a number of underlying characteristics that limit their relevance for modelling firm behaviour especially in relation to environmental issues, innovation and change. The limitations spring fundamentally from the underlying model of rational choice or business decision making, the treatment of innovation and the lack of any meaningful analysis of the institutional environment in which business and policy decisions are taken

The Case for a New International Accord on Diffusing Innovations and Building Technological Capacity

To overcome major global challenges such as COVID-19, rising inequality, and the climate crisis, serious efforts are needed to build innovation and technological capacity, quickly diffuse technological know-how, and extensively expand productive capacity in low and middle-income countries. In short, a new international accord on innovation diffusion and technological capacity should be created. Such an accord could lay the groundwork for a more equitable COVID-19 recovery, leveling the global economic playing field and supporting Africa’s technological industrial revolution. Recent research on innovation systems in low, middle, and high-income countries shows how it can be done

Edith penrose’s influence on economic analysis, strategic management and political economy

Edith Penrose is best known for her classic book The Theory of the Growth of the Firm, originally published in 1959, but she also made major contributions in other fields, including patents, the oil industry, and development economics. This special double issue of the International Review of Applied Economics publishes recent research from a range of leading economists and management scholars from across the world, either explicitly analysing Penrose’s contribution, or else analysing topics from firms’ collaborations with universities through to the practice and consequences of share buy-backs, which demonstrate that a Penrosian perspective helps to illuminate the reality of such processes

Edith Penrose and the Penrose Lectures

This article summarises Edith Penrose’s career and impact on two disciplines - economics and management. The extent of her influence can be gauged by scanning the pages of leading publications in both fields, where copious references to Penrosian Theory, the Penrose Effect, the Penrosian Firm, Penrosian Analysis, the Penrosian Perspective, Penrosian Dynamics are standard. Penrose also played a major role in a variety of economics associations, policy bodies and government inquiries. This article considers the nature of her achievements and the fact that they are all the more remarkable for having been made at a time when economics was even more male dominated than it is today. Perhaps it is because she was a woman that her major contribution – The Theory of the Growth of the Firm - modelled firms as collections of people rather than as anonymous automata. We show how her contributions are honoured today via the annual Penrose Lectures; two lectures given each year at SOAS University of London, on a topic in economics, management or political economy. One of the objectives of the Penrose Lecture series is to showcase the work of leading women working in the fields of economics and management

Learning regions in Europe: theory, policy and practice through the RIS experience

The theoretical concept of the 'learning region' is something of a buzzword amongst academics and policy makers alike. Yet the concept is under -theorised and has proven difficult to translate into a concrete policy approach. RIS - Regional Innovation Strategies have, however, enhanced our theoretical understanding and provided policy makers and other actors in the regional economy with a practical tool for tackling some of the underlying problems faced by regions suffering from economic decline, stagnation or under -development in the field of innovation. The objective of this paper is to provide a comprehensive review of one of the principle policy tools used by the European Commission to promote the development of an innovative capacity in the less favoured regions (LFRs), namely RIS - regional innovation strategy. RIS is a pilot action financed under the innovative actions of the European Regional Development Fund of the European Union, which is currently being developed in 32 regions in Europe. The paper describes and examines the RIS objectives, methodology and impact within a wider theoretical context, looking in particular at the relevance of networking and collaboration among different regional innovation-related stakeholders and institutions for the development of an efficient regional innovation system and regional 'learning capacities'. A case study on the West Midlands region is provided which further explores the RIS philosophy and methodology in a given region. The principal aim of the paper, however, is to focus upon the practical implications of RIS and how well this particular policy approach has met the specific needs of the LFRs. Indications of the early results of this European pilot action are provided

The diffusion of fintech, financial inclusion and income per capita

Advances in information and communication technology (ICT) have provided a platform for the introduction and diffusion of a range of financial technologies that have transformed the financial sector. This study analyses the diffusion of financial technology (fintech) and its interaction with financial inclusion and living standards (GDP per capita). We consider the determinants and effects of technology diffusion in financial services and identify two possible transmission mechanisms from the financial sector to GDP per capita – a fintech diffusion channel and a financial inclusion channel. We specify the interactions between these two channels and their relationship with income per capita. Our empirical analysis focuses on the diffusion of two enabling fintech innovations: ATMs and associated digital networks; and mobile phones and payments systems. The relationships between fintech diffusion, financial inclusion and GDP per capita are estimated using a panel data set for up to 137 countries over the period 1991–2015 using both cross section and panel techniques, including an error correction model that distinguishes short- and long-run effects. A key finding is that fintech diffusion and financial inclusion have long-run effects on GDP per capita over and above their short-run impact and the effects of investment in fixed and human capital

Resolving the patents paradox in the era of COVID19 and climate change: Towards a patents taxonomy

This paper revisits the patents debate and considers the role of intellectual property rights and their impact on society in the context of inventions designed to protect global common pool resources (CPRs) such as public health and the environment. A review of the theoretical and empirical literature suggests that there has never been a clear consensus among researchers on the benefits of the patent system and intellectual property rights. As Robinson notes, “The patent system introduces some of the greatest of the complexities in the capitalist rules of the game and leads to many anomalies.” We explore these anomalies by specifying a taxonomy of patents for different classes of inventions, including inventions to protect CPRs. This includes vaccines and inventions that reduce externalities, such as, CFC gases and greenhouse gas emissions. In these instances, the effectiveness of innovations depends critically on rapid global diffusion. Our theoretical analysis utilises Ostrom's CPR dilemma to analyse the complexities surrounding innovation and CPRs. We find that the effectiveness of innovations to protect CPRs depends on industrial characteristics and the wider regulatory environment. Empirical evidence is brought to bear on these conclusions via 2 case studies that each embodies a natural experiment; one on vaccines pre- and post-TRIPS and one on environmental technologies to reduce CFC gases and CO2 emissions with and without an agreed UN Protocol. The insights gained are explored in our policy section. Our analysis suggests the need for a more nuanced approach to patent policy that is embedded in the wider context of innovation systems and takes account of the anomalies raised by CPRs. For CPR protecting innovations subject to positive network externalities, we advocate that policy should prioritise diffusion over private incentives for R&D and use alternative policies to patents to stimulate investment in R&D

The Radioecology Exchange

The Radioecology Exchange (www.radioecology-exchange.org) was created in 2011 under the EU FP7 STAR (STrategy for Allied Radioecology, www.star-radioecology.org) Network of Excellence; (2011-2015). This project aims to integrate radioecological research efforts of European organisations into a sustainable network. In 2013, the EU FP7 COMET (COordination and iMplementation of a pan-European instrumenT for radioecology (2013- 2017); www.comet-radioecology.org) project commenced; COMET will build upon the work initiated under STAR. The Radioecology Exchange has therefore become the web resource for activities from both projects which will ultimately be maintained by the European Radioecology Alliance (ALLIANCE; www.er-alliance.org). The Radioecology Exchange is intended to become a ‘gateway’ for information related to European (and wider) radioecological research