The Effect of Contractual Complexity on Technology Sourcing Agreements

Most research on strategic alliances ignores the underlying contracts that govern the terms of the relationship. This is problematic since it is how these contracts are structured that determines how firms will benefit from a relationship. We present a novel method to analyze contractual complexity in a multi-dimensional framework in an attempt to link together the contractual complexity and control rights literatures. We find that the stage of development, age and prevalence of the underlying technology most influence complexity. Contractual complexity also influences the allocation of control rights. We also explore the importance of prior relationships on the underlying contract.Contractual complexity; Control rights; Strategic alliances; Biopharmaceutical industry; Contractual design

Asia's trade performance after the currency crisis

The Asian countries hit by the 1997-98 currency crisis experienced a sharp reversal of capital flows that forced their current account balances to move from deficit to surplus. This study of the trade flows of Indonesia, Malaysia, South Korea, and Thailand finds that steep declines in imports, measured in dollar terms, accounted for almost all of the improvements in current account balances. However, a fuller picture emerges when the authors analyze the trade flows according to the volume of goods being shipped and the prices of these goods. The analysis shows that several factors contributed to the current account adjustment: higher export volumes in response to increased foreign demand outside of Asia, lower dollar import prices in line with declining world export prices, and the collapse in import volumes due to sharp declines in domestic economic activity.Balance of trade ; International trade - Asia ; Asia

The Impact of Patenting on New Product Introductions in the Pharmaceutical Industry

Since Comanor and Scherer (1969), researchers have been using patents as a proxy for new product development. In this paper, we reevaluate this relationship by using novel new data. We demonstrate that the relationship between patenting and new FDA-approved product introductions has diminished considerably since the 1950s, and in fact no longer holds. Moreover, we also find that the relationship between R&D expenditures and new product introductions is considerably smaller than previously reported. While measures of patenting remain important in predicting the arrival of product introductions, the most important predictor is the loss of exclusivity protection on a current product. Our evidence suggests that pharmaceutical firms are acting strategically with respect to new product introductions. Finally, we find no relationship between firm size and new product introductions.Patenting; Pharmaceutical industry; New product management; Research productivity

Viewing the current account deficit as a capital inflow

With the 1998 current account deficit approaching $225 billion, attention is again focusing on the deficit's impact on U.S. jobs. Although a high deficit does adversely affect employment in export- and import-competing industries, it also means that considerable foreign capital is flowing into the United States, supporting domestic investment spending that stimulates growth and creates jobs.Balance of trade ; Capital movements ; Capital investments ; Investments ; Employment (Economic theory)

Financial globalization and the U.S. current account deficit

Despite heavy borrowing in recent years, the United States has financed its large current account deficits without experiencing an unusual buildup in foreign investors' holdings of U.S. assets. A new analysis suggests that this somewhat surprising development is attributable largely to rapid financial globalization, with cross-border flows worldwide rising as fast as flows into the United States. However, it could be harder for the country to sustain large deficits on favorable terms if the current wave of globalization subsided or the rate at which U.S. investors buy foreign assets increased.

Reserve accumulation: implications for global capital flows and financial markets

Many central banks-particularly those in Japan and the emerging Asian nations-have been building up their holdings of foreign currency assets. These holdings, known as foreign exchange reserves, may help countries stabilize their currencies, but they can also lead to investment losses for the central banks. The large share of dollar assets among reserve holdings has made foreign central banks important players in U.S. financial markets.Banks and banking, Central ; Bank reserves ; Banks and banking - Asia

Forward error correction for molecular communications

Communication between nanoscale devices is an area of considerable importance as it is essential that future devices be able to form nanonetworks and realise their full potential. Molecular communication is a method based on diffusion, inspired by biological systems and useful over transmission distances in the nm to μm range. The propagation of messenger molecules via diffusion implies that there is thus a probability that they can either arrive outside of their required time slot or ultimately, not arrive at all. Therefore, in this paper, the use of a error correcting codes is considered as a method of enhancing the performance of future nanonetworks. Using a simple block code, it is shown that it is possible to deliver a coding gain of ∼1.7 dB at transmission distances of . Nevertheless, energy is required for the coding and decoding and as such this paper also considers the code in this context. It is shown that these simple error correction codes can deliver a benefit in terms of energy usage for transmission distances of upwards of for receivers of a radius

Explaining Inequality the World Round: Cohort Size, Kuznets Curves, andOpenness

Klaus Deininger and Lyn Squire have recently produced an inequality data base for a panel of countries from the 1960s to the 1990s. We use these data to decompose the sources of inequality into three central parts: the demographic or cohort size effect; the so-called Kuznets Curve or demand effects; and the commitment to globalization or policy effects. We also control for education supply, the so-called natural resource curse and other variables suggested by the literature. While the Kuznets Curve comes out of hiding when the inequality relationship is conditioned by the other two, cohort size seems to be the most important force at work. We resolve the apparent conflict between this macro finding on cohort size and the contrary implications of recent research based on micro data.

Intra-alliance performance, control rights, and today's split of tomorrow's value

Although the differential benefits reaped by individual partners are a major determinant of the performance impact of strategic alliances, previous analysis has faced methodological challenges. In response we propose a measure for relative value appropriation and an explicit theoretical framework for predicting its variation in terms of relative bargaining position. With a sample of 180 biotechnology R&D alliances, we are thus able to explain variation in value appropriation across partner types as well as individual partners of each type.Alliance performance; strategic alliances; value appropriation; bargaining position; factor markets;

Sigma-Convergence Versus Beta-Convergence: Evidence from U.S. County-Level Data

In this paper we outline (i) why ó-convergence may not accompany â- convergence, (ii)cite evidence of â-convergence in the U.S., (iii) and use USA county-level data containing over 3,000 cross-sectional observations to demonstrate that ó-convergence does not hold across the U.S., or within the vast majority of the individual U.S. states.Economic Growth, Convergence, ó-convergence, sigma convergence, â-convergence, beta convergence, US County Level Data