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Open Access
Article
Publication date: 26 June 2023

İpek Akad and Çağaçan Değer

This study aims to explain the effect of research and development (R&D) incentives on economic growth, focusing on the case of Türkiye. A one-sector endogenous growth model has…

Abstract

Purpose

This study aims to explain the effect of research and development (R&D) incentives on economic growth, focusing on the case of Türkiye. A one-sector endogenous growth model has been constructed. The model includes three actors: firm, consumer and government. The consumer derives utility from consumption, supplies human capital and engages in saving. The representative firm invests in R&D to maximize the current value of profit flows by choosing how much input it will use and how much R&D it will undertake. The public sector provides incentives for labor and capital used in R&D production. R&D has been defined as a function that endogenously increases total factor productivity (TFP).

Design/methodology/approach

In line with the stated purpose, this study presents a dynamic general equilibrium model. Then, this study calibrates the model parameters with Türkiye's data.

Findings

The results imply that incentives for R&D personnel instead of physical capital have a stronger impact on economic growth.

Practical implications

The findings of this study point to an important conclusion on how to distribute R&D incentives across the two main factors in R&D production, labor and capital. Incentives given to R&D personnel are more effective in Türkiye.

Originality/value

This study shows that the R&D incentives provided by the public sector can be important in emerging countries where many firms have just started their R&D activities. In this study, the authors worked on Türkiye as an emerging country. This study discusses policies on how the R&D incentives will be more effective on economic growth in Türkiye. This study considers that these policies may apply to all emerging countries, due to similar R&D activities in countries that cannot export technology and mostly import technology.

研究目的

本研究擬以土耳其的實例為焦點, 探討研究與開發 (研發) 的激勵如何影響經濟的增長;具體地說, 研究旨在探討透過不同生產要素所提供的研發激勵所產生的影響存在著什麼差異。

研究設計/方法/理念

為達研究目的, 研究人員構建了一部門內生增長模型。模型內有三個參與者: 公司、消費者和政府。消費者從消費中得到他們所需要的, 提供人力資本, 並參與儲蓄的活動。為了要把利潤的現值儘量提高, 代表公司透過調控投入的數量和研發的承擔, 投資在研發上。公共部門會為研發生產上使用的勞工和資本提供激勵。研究與開發被解釋為一個以內生方式增加全要素生產率的功能。構建的模型是因應土耳其的經濟狀況而調整出來的, 當中也進行了仿真模擬。

研究結果

研究結果暗示, 為研發人員提供的激勵, 而不是物質資本, 更能推動經濟增長。

實務方面的啟示

研究結果, 就如何於研發生產的兩個主要因素之間, 即勞工與資本之間, 分配研發激勵的問題上, 提供了重要的結論;就土耳其而言, 分配給研發人員的激勵是更為有效的。

研究的原創性/價值

我們展示了在新興國家裏, 公共部門提供的研發激勵是重要的, 而在這些國家裏, 剛開始進行研發活動的公司為數不少。在本研究裏, 我們把土耳其當作新興國家看待。我們討論了若要在土耳其使研發激勵更有效地幫助推動經濟增長, 什麼政策是最合適的呢? 因為那些不能把技術出口到其它地方, 而主要靠引進技術的國家均進行相似的研發活動, 所以我們認為討論得來的政策是可應用於所有新興國家的。

Open Access
Article
Publication date: 2 March 2023

Xinzhou Qi and Zhong Ning

The purpose of this paper is to investigate the relationship between the characteristics of the incubation industry, government funding, and the intensity of funding for different…

1086

Abstract

Purpose

The purpose of this paper is to investigate the relationship between the characteristics of the incubation industry, government funding, and the intensity of funding for different services. Because the incubation industry has particular characteristics, government funding varies for different services, and its intensity varies with service.

Design/methodology/approach

Government funding is classified as incubation subsidy and incubation incentive. Besides, incubation services include property management, business mentoring as well as investment and financing. Based on this, this study examines the influence mechanism of different subsidy and incentive on incubation services by using the generalized propensity score matching method.

Findings

The empirical results show that subsidy and incentive have an inverse-U shape effect on property management service, but a linear effect on business guidance service. Furthermore, subsidy does not affect investment and financing service, but incentive that can have a significant impact.

Originality/value

The theme of government funding and incubator services plays an important role in helping entrepreneurs expand their businesses. Incubation subsidy and incentive can provide important support to help enterprises obtain more preferential loans, technical services and technical support in the incubator. Applying it to incubator services can provide better technology and entrepreneurship guidance. These services can help new entrepreneurs understand products and markets, and how to develop more successfully in the early stage. In short, incubators supported by government funds can provide important support to entrepreneurs to help them successfully realize their business plans.

Details

Asia Pacific Journal of Innovation and Entrepreneurship, vol. 17 no. 1
Type: Research Article
ISSN: 2071-1395

Keywords

Open Access
Article
Publication date: 15 July 2022

Stephen Gong, Liwei Shan and Li Yu

To examine whether and how the different levels of regional economic incentives would have an effect on underwriters' market share in general.

Abstract

Purpose

To examine whether and how the different levels of regional economic incentives would have an effect on underwriters' market share in general.

Design/methodology/approach

Drawing on Chinese IPO firms during the period 2006-2016, this study examines the impact of different levels of regional economic incentives on underwriters' market share.

Findings

The authors find that regional economic incentives have a positive impact on underwriters' market share and that local economic incentives have a significantly stronger impact than central economic incentives. Furthermore, the authors find that IPO firms with underwriters driven by regional economic incentives experience worse post-IPO performance than firms with underwriters driven by central economic incentives, which do not experience a significant decline in post-IPO performance.

Originality/value

Taken together, the authors’ findings are consistent with the notion that performance assessment motivates officials at various levels of government to bring companies in their jurisdiction to the IPO market prematurely. In addition, the results indicate that central economic incentives play a significant role in driving China's macroeconomic development and market-oriented system reforms. As such, they are one of the major driving forces behind China's market-oriented system reforms.

Details

China Accounting and Finance Review, vol. 24 no. 4
Type: Research Article
ISSN: 1029-807X

Keywords

Open Access
Article
Publication date: 30 June 2021

Daniel Gama e Colombo and Helio Nogueira da Cruz

This paper evaluates the effects of tax incentives on business innovation in Brazil that were established by Law 11,196/05 (the “Fiscal Incentives Law”) to test whether they have…

1493

Abstract

Purpose

This paper evaluates the effects of tax incentives on business innovation in Brazil that were established by Law 11,196/05 (the “Fiscal Incentives Law”) to test whether they have had a positive impact on beneficiary firms' innovation input and output and on their performance.

Design/methodology/approach

The policy impacts are estimated using microdata on 13,706 firms available in the 2008 and 2011 editions of the Brazilian Innovation Survey (PINTEC) and by applying propensity score matching with difference-in-differences.

Findings

The results suggest a positive and statistically significant impact of the policy on research and development (R&D) expenditures (average of approximately US$ 264,000 in 2011), the number of research staff (average of five researchers) and total employment (approximately 5% of the beneficiary firms' mean size). However, no impact was found on the overall spending on innovative activities, the percentage of sales and exports from new products, net revenue or net revenue per employee.

Practical implications

The findings provide empirical support in favor of tax incentives as a policy tool to boost business innovation in the country. However, the absence of significant effects on innovative activities expenditures and on most indicators of innovation output and firms' performance reveals shortcomings of the policy that need to be addressed.

Originality/value

The study complements and advances the findings of previous studies by assessing policy impact on total innovative activities expenditures and on innovation output and firm performance.

Details

Innovation & Management Review, vol. 20 no. 1
Type: Research Article
ISSN: 2515-8961

Keywords

Open Access
Article
Publication date: 17 June 2022

Pietro De Giovanni

This paper aims to analyze the benefits of the blockchain to the circular economy (CE), which is composed of both closed-loop supply chain (CLSC) systems and reverse omnichannel…

4413

Abstract

Purpose

This paper aims to analyze the benefits of the blockchain to the circular economy (CE), which is composed of both closed-loop supply chain (CLSC) systems and reverse omnichannel solutions. By ensuring transparency, traceability, visibility and security, the blockchain allows firms to acquire operational capabilities through a CLSC and service capabilities through a reverse omnichannel, which can boost business performance considerably. The related network of relationships can be reinforced by establishing incentives, which entail both smart contracts in the blockchain and active return approaches in CE.

Design/methodology/approach

After identifying the boundaries of the theoretical framework, several research hypotheses are developed according to the literature review and emerging gaps. These gaps link to the impact of the blockchain on CE systems (CLSC and reverse omnichannel), as well as the influence on business performance. The hypotheses are then tested using structural equation modeling and adopting a partial least squares-path modeling technique on a dataset composed of 157 firms. Finally, multigroup analysis is used to test the impact of incentives on the research hypotheses.

Findings

The blockchain facilitates a more efficient CE system, although reverse omnichannel solutions seldom bring any benefits to performance. The shift from a passive to an active return approach must be carefully evaluated. The CLSC network can benefit from an active return approach by developing appealing incentives for collectors and enhancing the positive effects of the blockchain. In contrast, consumer incentives can have detrimental effects on the blockchain. Various combinations of incentives can only bring a few business performance increases, while collector incentives are vital to reinforce the CE system's operational and service capabilities.

Originality/value

This paper takes a new approach toward the study of CE, which considers a dual circular system composed of a CLSC and a reverse omnichannel. The research explores whether the adoption of blockchain technology enables better return processes by improving the operations in CLSC and services in reverse omnichannel. Finally, this is the first empirical work to evaluate the benefits emerging from incentives, which can activate smart contracts in the blockchain and enable active return approaches in CE.

Details

International Journal of Operations & Production Management, vol. 42 no. 7
Type: Research Article
ISSN: 0144-3577

Keywords

Open Access
Article
Publication date: 6 November 2017

Noel Murray, Ajay K. Manrai and Lalita Ajay Manrai

This paper aims to present an analysis of the role of financial incentives, moral hazard and conflicts of interests leading up to the 2008 financial crisis.

6202

Abstract

Purpose

This paper aims to present an analysis of the role of financial incentives, moral hazard and conflicts of interests leading up to the 2008 financial crisis.

Design/methodology/approach

The study’s analysis has identified common structural flaws throughout the securitization food chain. These structural flaws include inappropriate incentives, the absence of punishment, moral hazard and conflicts of interest. This research sees the full impact of these structural flaws when considering their co-occurrence throughout the financial system. The authors address systemic defects in the securitization food chain and examine the inter-relationships among homeowners, mortgage originators, investment banks and investors. The authors also address the role of exogenous factors, including the SEC, AIG, the credit rating agencies, Congress, business academia and the business media.

Findings

The study argues that the lack of criminal prosecutions of key financial executives has been a key factor in creating moral hazard. Eight years after the Great Recession ended in the USA, the financial services industry continues to suffer from a crisis of trust with society.

Practical implications

An overwhelming majority of Americans, 89 per cent, believe that the federal government does a poor job of regulating the financial services industry (Puzzanghera, 2014). A study argues that the current corporate lobbying framework undermines societal expectations of political equality and consent (Alzola, 2013). The authors believe the Singapore model may be a useful starting point to restructure regulatory agencies so that they are more responsive to societal concerns and less responsive to special interests. Finally, the widespread perception is that the financial services sector, in particular, is ethically challenged (Ferguson, 2012); perhaps there would be some benefit from the implementation of ethical climate monitoring in firms that have been subject to deferred prosecution agreements for serious ethical violations (Arnaud, 2010).

Originality/value

The authors believe the paper makes a truly original contribution. They provide new insights via their analysis of the role of financial incentives, moral hazard and conflicts of interests leading up to the 2008 financial crisis.

Details

Journal of Economics, Finance and Administrative Science, vol. 22 no. 43
Type: Research Article
ISSN: 2077-1886

Keywords

Open Access
Article
Publication date: 2 December 2016

Pierre Jinghong Liang, Madhav Rajan and Korok Ray

This paper aims to explore the design of management teams when the critical task facing individual managers is monitoring the performance of worker teams and producing performance…

1848

Abstract

Purpose

This paper aims to explore the design of management teams when the critical task facing individual managers is monitoring the performance of worker teams and producing performance measures under uncertain information environments.

Design/methodology/approach

The authors use a multi-agent LEN framework – linear contract, exponential utility and normal density – to model the incentive provision and organizational design.

Findings

The main lesson is that the use of performance measures under uncertainty is greatly affected by the potential for free-riding in the very monitoring activities which generate the measures to begin with. Accordingly, the value of having a management team, that is the incremental benefit of having a second manager, depends on the monitoring technology. Of particular importance are the potential free-riding in monitoring effort among multiple managers and synergies gained from having more than one manager, such as correlation among the performance measures produced or improvement due to splitting workers pool into separate groups for each manager to monitor separately.

Originality/value

The paper pushes this line of research further by explicitly modeling the endogenous process of signal generation within a rich economic environment. In this environment, number of workers being evaluated and number of managers who produce the signals are both endogenous. Furthermore, both workers and managers are subject to moral hazard problem. In particular, the managers suffer from potential free-riding problems but may benefit from synergistic forces due to team monitoring.

Details

Journal of Centrum Cathedra, vol. 9 no. 2
Type: Research Article
ISSN: 1851-6599

Keywords

Open Access
Article
Publication date: 3 October 2019

Manal Elsayed Shabat

The purpose of this paper is to analyze the conceptual framework about human resources downsizing and restructuring and how organizations of the public sector can do that…

13749

Abstract

Purpose

The purpose of this paper is to analyze the conceptual framework about human resources downsizing and restructuring and how organizations of the public sector can do that effectively and efficiently. These facts drive to the conclusion that the implementation of early retirement incentives requires the most elaborate planning and execution to be effective, predictable and safe in the long term.

Design/methodology/approach

This paper adopts an analytical, descriptive methodology approach to describe the basic features of the data by using the descriptive research design. Data have been collected through different sources, which include secondary data, to introduce the theoretical literature of the subject as books, journals, articles, published working papers and referred previous studies related to the same subject.

Findings

Downsizing process is a deliberate administrative process that includes, but is not limited to, workforce reduction and is primarily aimed at achieving efficiency in public organizations. The definition of workforce downsizing may be narrowed to reducing the number of workers, or more likely to refer to general efforts to restructuring human resources in public organizations, Early Retirement Incentive Programs (ERIP) represents a viable alternative for organizations seeking to reduce staff. For the ERIP to be successful, the program coordinator must understand the business objectives and goals that the organization is trying to obtain.

Originality/value

Human resources strategies concerning downsizing public administration workforce should be more appropriate to those who leave the organization and those who stay at work, reducing the negative psychological, administrative and economical effects. This could be achieved through a strategy called early retirement incentive programs.

Details

Review of Economics and Political Science, vol. 5 no. 1
Type: Research Article
ISSN: 2356-9980

Keywords

Open Access
Article
Publication date: 15 August 2019

Syed Munawar Shah and Mariani Abdul-Majid

The purpose of this paper is to examine whether reputation element affects the decision relative performance of trust, bonus and incentive contracts using social laboratory…

Abstract

Purpose

The purpose of this paper is to examine whether reputation element affects the decision relative performance of trust, bonus and incentive contracts using social laboratory experiments.

Design/methodology/approach

The study conducts the following lab experiments bonus–incentive treatment without reputation, bonus–incentive treatment with reputation and trust–incentive treatment with reputation.

Findings

The study finds that the reputation and fairness concerns, in contrast to self-interest, may have a decisive impact on the actual and optimal choices in the reciprocity-based contracts. The principal pays higher salaries in the bonus contract as compared to an incentive contract.

Originality/value

The study contributes to the behavioral economic literature in the following dimensions. The existing literature on lab experiments considers a bonus contract as better than the debt contract; however, it does not consider the trust contract better than the debt contract.

Details

Islamic Economic Studies, vol. 27 no. 1
Type: Research Article
ISSN: 1319-1616

Keywords

Open Access
Article
Publication date: 16 July 2021

Qi Shi, Shufang Xiao, Kaiwen Chang and Jiaying Wu

With the accelerated technological advancement, innovation has become a critical factor, which affects the core competitiveness of a company. However, studies about the…

1411

Abstract

Purpose

With the accelerated technological advancement, innovation has become a critical factor, which affects the core competitiveness of a company. However, studies about the relationship between internal stock option mechanisms and innovation productivity remain limited. Therefore, this paper aims to examine the impact of stock options and their elements design on innovation output from an internal mechanism perspective.

Design/methodology/approach

Using a sample of 302 stock option incentive plans announced and implemented between 2006 and 2016, this study uses the propensity score matching and difference-in-difference model to find out whether the implementation of stock options improves the innovation outputs of enterprises.

Findings

Based on the statistical analysis, it is concluded that: stock options can stimulate corporate innovation; a stock option may drive innovation outputs through two ways, performance-based incentives and risk-taking incentives, with the latter one playing a more dominant role and the risk-taking incentives of stock options, could be optimised when the non-executives granting proportion is larger, the granting range is limited, the incentive period is longer, the exercisable proportion is increasing, the price-to-strike ratio is lower and relatively loose performance assessment criteria are applied.

Originality/value

The conclusion reached in the study may provide valuable information to listed firms in designing and implementing the stock option plans.

Details

Nankai Business Review International, vol. 12 no. 4
Type: Research Article
ISSN: 2040-8749

Keywords

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