Using longitudinal data on teams and quality competition results, this study examines the impact of team and task familiarity on brewing excellence in the Japanese sake industry from 1956 to 2018. Sake production involves teamwork at every stage, but while some teams work together long term, others experience high turnover. The study highlights two factors: team familiarity, the collective experience of working together, and task familiarity, the individual experience of the task. High familiarity can strengthen team bonds and improve teamwork, but it can also limit the inflow of new knowledge and thus hinder innovation. This study uses data from national quality competitions and brewer lists, and considers the Great East Japan Earthquake of 2011 as an external shock to address endogeneity and estimate the causal relationship between familiarity and competition outcomes. The empirical results show that increases in both team and task familiarity are negatively associated with quality superiority.

Ensuring energy access for rural households is crucial for global sustainable development. Technologies like liquefied petroleum gas, biogas, and efficient cookers are touted as solutions, yet their adoption remains limited despite their potential health, economic, and environmental benefits. We conducted a meta-analysis of 50 studies in developing countries, integrating contextual factors to explore gender and other determinants impacting rural energy transition. Our findings underscore socioeconomic status, social capital, environmental concerns, and gender dynamics as pivotal factors. Notably, women's involvement boosts adoption rates by 7.90 per cent, yet cultural barriers often sideline them from these processes. Thus, our recommendations stress addressing women's roles as energy technology users to foster inclusive energy transitions.

El trabajo analiza la innovación en la industria militar en España entre 1878 y 1939 a partir de las patentes y los contratos de defensa. El alto porcentaje de contratos de productos patentados (63%) es indicio de una notable relación entre patentes y contratos. Esto se ve confirmado por la coincidencia en el orden de los principales países en ambas variables. El test econométrico confirma la estadística descriptiva y, además, evidencia que las patentes a priori más valiosas (de invención, puestas en práctica, más longevas y empresariales) tienen una correlación más fuerte con los contratos. Desde la óptica sectorial también se observa una correlación positiva y significativa, aunque menos intensa que desde el espacial. El análisis micro confirma la estrecha relación de las patentes con la actividad del sector de armamento militar, explicita los protagonistas y las vías de esa relación (importación, producción local y licencias) y explica las disparidades observadas en el análisis agregado.

South Africa has one of the world’s highest youth unemployment rates despite a high demand for skilled labour, because employability remains severely hampered by a persistent vertical skills mismatch. The flagship upskilling programme deployed by the government to enhance job readiness and enterprise development capabilities among rural youth has, however, shown mixed results. The slow uptakes of alumni calls into question the adequacy of the programme’s skills composition in resolving the labour market mismatch. Using the Outcome Mapping approach and probit estimation on self-reported skills improvements among programme participants, this study finds perceived improvements in non-technical skills to be associated with a higher likelihood of success in comparison to technical skills, both in securing a stable job and in launching a viable enterprise after completion of the programme. These findings confirm the growing importance of ‘soft skills’ in bolstering employability when jobs are scarce. They suggest the need for a stronger emphasis on this set of skills in upskilling programmes aimed to address unemployment challenges.

This research investigates the role of public sector innovation outcomes, e.g. trademark innovation, information and communication technology (ICT), renewable energy, and governance, in the sustainable development of Bangladesh during 1980–2019. Utilising the dynamic autoregressive distributed lag (DARDL) simulation approach, this study divulges a favourable long-term influencing profile of public sector innovation outcomes, i.e. trademark innovation, ICT, and renewable energy on sustainable development, while governance has a heterogeneous impact. Besides, the findings from the DARDL simulations area plots display 10% counterfactual shocks to the public sector innovation outcomes on sustainable development. Furthermore, the Kernel-based regularised least square machine learning algorithm approach used in the study examines the marginal effects of the public sector innovation outcomes on sustainable development for robust findings. Therefore, the policy suggestions are solely concerned with the public sector’s adoption of more innovation dynamics through appropriate policy formulation.

New production from public and exclusive varieties released by the small grains breeding program at Virginia Tech generated cumulative discounted benefits of $41 million from 2000 to 2018. Fitted yields from field trials were combined with acreage estimates to generate weighted average yields based on adoption of new varieties. Benefits were estimated as the value of additional production from the release and adoption of improved varieties. Public varieties were responsible for most program benefits. The program was found to have a significant impact in Virginia and out-of-state, with much of these benefits due to public-private collaboration.

In practice, firms face a number of scarce innovation projects. They choose one towards which to direct their effort, but do not coordinate these choices. This gives rise to coordination frictions. This paper develops an expanding-variety endogenous growth model to study the implications of these frictions for growth and welfare. We find that the coordination failure generates a number of foregone innovations and reduces the economy-wide research intensity. Both effects decrease the growth rate. This creates a general equilibrium effect that endogenously amplifies the fraction of wasteful simultaneous innovation. Furthermore, formalizing the coordination frictions uncovers a novel link between the “stepping on toes” and “standing on shoulders” externalities—their magnitudes are endogenously determined through the ratio of firms to innovation projects. We find that the “stepping on toes” externality is larger for all parameter values.

I develop a dynamic model of consumption variety in status goods by introducing a realistic aspect that is new in the existing literature—that a good will not carry status appeal unless it is advertised. As advertisements will divert resources from new product research, growth in new products will be reduced. However, status-good advertisements also enhance distinctiveness of a good and increase a firm’s profit. This will motivate more researches. With the two effects offsetting each other, the original market bias in a standard product-development model—insufficient research due to a general knowledge spillover—cannot be overcome. While introducing advertising into models of this kind does not reverse the original welfare implication of suboptimal growth, this makes available a new and better intervention option—taxing advertisements. This tax is superior to consumption tax, the conventional solution to inefficient status competition, as consumption tax is found to be ineffective in the present model. It is also superior to research subsidies, the conventional solution to suboptimal growth, as subsidies must be financed and is not a self-sufficient policy.

This paper investigates optimal capital taxation in an innovation-driven growth model. We examine how the optimal capital tax rate varies with externalities associated with R&D and innovation. Our results show that the optimal capital tax rate is higher when (i) the “stepping on toes effect” is smaller, (ii) the “standing on shoulders effect” is stronger, or (iii) the extent of creative destruction is smaller. The optimal capital tax rate is more likely to be positive when there is underinvestment in R&D. Moreover, the optimal capital tax rate and the monopolistic markup exhibit an inverted-U relationship. By calibrating our model to the US economy, we find that the optimal capital tax rate is positive, at a rate of around 6.6%. Finally, we consider a number of extensions and find that the result of a positive optimal capital tax is robust.

The “shutdown” economy of April 2020 is compared to a normally functioning economy both in terms of market and nonmarket activities. Three novel methods and data indicate that a full shutdown of “nonessential” activities puts market production about 25 % below normal in the short run. At an annual rate, a full shutdown costs $9 trillion, or about $18,000 per household per quarter. Employment already fell 24 million by early April 2020. These costs indicate, among other things, the value of innovation in both health and general business sectors that can accelerate the time when, and the degree to which, normal activity resumes.

The implications of Knightian uncertainty are frequently discussed in the context of market-based institutional settings. Given money prices, entrepreneurs can engage in calculative action, in conjunction with ‘judgment’, to guide decision-making and bring about a coordination of production plans with consumer preferences. However, if the existence of Knightian uncertainty is ubiquitous and applies to all human action, then what are its implications in non-market institutional settings? This paper explores questions related to the implications of Knightian uncertainty for two important non-market institutional settings: democratic government and the nonprofit or philanthropic sector, where there is an explicit lack of monetary calculation, yet nonprofit and political entrepreneurs still must use ‘judgment’ to deal with Knightian uncertainty. For instance, what are the implications of private property and privatized cost in the case of nonprofits versus the absence of private property and socialized cost in the case of democracy, in the presence of Knightian uncertainty? Which group of ‘consumers’ is likely to have their preferences satisfied when it comes to nonprofits (benefactors or beneficiaries) and democratic government (voters or lobbyists)? The paper, thus, points to the importance of further research on the implications of Knightian uncertainty in the hard case of non-market institutional settings.

Innovation is an important part of energy policy, and encouraging clean energy innovation is often an explicit goal of policy makers. For local governments, promoting clean energy innovation is seen not only as a pathway to a cleaner economy but also as a tool for promoting the local economy. But is such optimism warranted? There is a substantial literature examining the relationships between innovation and environmental policy, but few studies focus explicitly on innovation at the state and local level. In this paper, I provide key lessons from research on clean energy innovation, focusing on lessons relevant for state and local governments. I then summarize the results of a recent working paper by Fu et al. (2018) that studied wind energy innovation across individual states in the United States. While state-level policies can promote clean energy innovation, it is overall market size that matters most. Thus, innovation need not occur in those states most actively promoting clean energy. I conclude with lessons for state and local governments drawn from both this work and the broader literature on energy innovation.

This paper examines two potential mechanisms – access to credit and reduction in relational risks – through which social trust can affect R&D investments. Social trust can increase R&D investments by expanding firms' access to external finance with which they can use to fund promising R&D projects. It can also increase R&D investments by reducing relational risks that expose firms to ex-ante and ex-post holdups or expropriation risks. Using industry-level data on R&D investment intensities in 20 OECD countries, I test these mechanisms by evaluating whether more external finance dependent and relational risk vulnerable industries exhibit disproportional higher R&D investment intensities in trust intensive countries. The results indicate that external finance dependent industries and relational risks vulnerable industries experience relatively higher R&D investment intensities in trust-intensive countries. Therefore, the results underline access to external finance and reduction in relational risks as causal pathways linking social trust and R&D investments.

Recent studies have shown a strong link between the complexity of economies and their economic development. There remain gaps in our understanding of the mechanisms underpinning these links, in part because they are difficult to analyse with highly aggregated, official data sources that do not capture the emergence of new industrial activities, a potential benefit from complexity. We seek to address some of these gaps by calculating two indices of economic complexity for functional local economies (Travel to Work Areas) in Great Britain, and explore their link with these locations’ economic performance. Seeking to gain a better understanding of the mechanism connecting economic complexity with economic performance, we create a measure of emergent technological activity in a location based on a combination of novel data sources including text from UK business websites and CrunchBase, a technology company directory, and study its link with economic complexity. Our results highlight the potential value of novel, unstructured data sources for the analysis of the links between economic complexity and regional economic development.

The aim of our study is to investigate how innovation is taking place through different research and development (R&D) activities and to establish a link between innovation and business sustainability in the context of Indian pharmaceutical companies. Our study is based on the secondary data. Sample data of 37 Indian pharmaceutical companies listed on the National Stock Exchange have been used based on the stratified sampling technique. For empirical analysis we have performed descriptive statistics, correlation matrix, and panel regression analysis as statistical techniques with the help of STATA 12.0 statistical package. R2 value can predict 100 and 98.20% variability in return on assets (ROA) and return on equity (ROE) in model 1 and model 2, respectively. In model 1, the value of c2 is 1.48 and its corresponding p value is 0.00 (<0.05) which means that the model is a good fit for interpretation. R&D intensity is having a positive effect on ROA and the effect is statistically significant at 1% level. Advertising and marketing intensity, capital intensity, leverage ratio and operating expenditure to the total assets ratio are having positive effect on ROA but the effect is not statistically significant. In model 2, the value of F statistics is 8025.62 and its corresponding p value is 0.00 which is <0.05. It means that the model is a good fit for study. R&D intensity is having a positive effect on ROE and the effect is statistically significant at 1% level. Advertising and marketing intensity, capital intensity and operating expenditure to the total assets ratio have positive effect on ROE and the effect is statistically significant at 1% level. Leverage ratio is having a negative effect on ROE but the effect is statically significant at 10% level.

Interest payments based on income flows are a common feature of informal loans. Such so-called ’interlinked loans’ can be seen as insurance against very low disposable incomes, as interest payments are lowest when income turns out to be low. This paper examines whether interlinked loans indeed contain an insurance premium and how those premia are determined. A simple theoretical model predicts that interest rates of interlinked loans increase with income volatility when insurance premia exist. Based on data from a small-scale fishery in India, calculations show that, on average, lenders receive 25 per cent of the income, which corresponds to an average interest rate of 49 per cent p.a. A panel data analysis confirms theoretical predictions that interlinked loans contain an insurance component paid by the borrowers.

In Mexico during the protectionist economic regime a process of industrial modernization was carried out which led to the incorporation of different types of technologies into the structures and processes of production or consumption. The patent policy was implemented with the interest of encouraging the attraction of novel technologies, but their contribution was quite limited due to the nature, design and operation, with which it was conformed. Therefore, the patent policy did not drive patenting activity in a high and sustained manner. It was ineffective to contribute to the development of technologies generated by local actors, and marginally propitiated the productive exploitation of patents.

The period from the 1950s to the late 1970s saw an almost uniform decline of cash-to-GDP ratios in industrial countries. A closer look at the German payment system suggests that the factor causing such a change was a shift towards cashless wage payments. In this period, in Germany, the branch network of banks expanded significantly and at the end of the period almost all economically active individuals had a current account. This change was triggered by rising wages and income. Rising wages increased the burden of weekly wage payments in cash, and rising income made the average earner more attractive for banks. Moreover, regulation and deregulation, by triggering both price and non-price competition, may also have played a role. Technological change was not an independent driver. In the 1950s, the number of giro accounts per German adult was comparable to the current situation in many developing countries. Yet, I argue that the German post-war experience does not provide a blueprint for most of these countries.

Is entrepreneurship an innate ability or an acquired skill? Can entrepreneurial acumen be achieved and enhanced through education and training, or are certain people “born” to be entrepreneurs or to act entrepreneurially? Economists and management theorists give widely divergent answers to these questions. This paper reviews the major approaches to teaching entrepreneurship, primarily at the undergraduate level, and relates them to economic theories of entrepreneurship. Surprisingly, we find little connection between the leading approaches to entrepreneurship education and economists' understanding of the entrepreneurial function. We assess likely explanations for the lack of contact between these two groups of scholars and suggest possible improvements.