Working Paper No. 119. Advanced Purchasing, Spillovers, Innovative Pricing and Serendipitous Discovery
Eliasson, G. (2008). Advanced Purchasing, Spillovers, Innovative Pricing and Serendipitous Discovery. Ratio Working Paper No. 119.
Eliasson, G. (2008). Advanced Purchasing, Spillovers, Innovative Pricing and Serendipitous Discovery. Ratio Working Paper No. 119.
Advanced products such as aircraft distinguish themselves by a number of characteristics. Products are complicated and produced under very complicated circumstances, but also have a very long life. The purchase price, therefore, is a small part of total user cost of the product. Product value, hence, increases the more of cost efficient maintenance that has been built into the product and the easier it is to service and modernize. Advanced products also distinguish themselves by featuring the additional collective characteristic of a “cloud of technology spillovers” available to external users in proportion to their competence to commercialize them. While the value of that cloud to society may be greater than that of the product itself the value to the user may be much smaller. The producer, therefore, faces a tricky pricing problem and the value he can capture depends on his ability to charge for the dual product. I discuss joint production of products with rich spillovers in the context of joint customership, i.e. public purchasing of both products and the collective value generated by spillovers. I demonstrate that a win-win situation might exist between the two that improves with the commercial ability of the local economy to capture the value of the spillovers. Industrial participation programs can be made part of a sale to support the receiver competence of local producers to capture the spillover rents. Part of marketing the product, therefore, involves the ability to present a credible case for the economic value to society of the spillovers and to design a method of charging for them (Innovative pricing). A well designed, mutually beneficial contract should make both parties to the trade winners. This latter form of innovative pricing should be particularly attractive for developing countries. The theoretical argument is illustrated with the case of downstream industrial business formation around Swedish Aircraft industry.
Eliasson, G.
2008
2022
Questioning the Entrepreneurial State, 201.
There has been a shift in innovation policy in recent years toward more focus on systemic transformation and changed directionality. In this chapter, we describe a collection of challenges that such policies need to address. Based on a review of dominant frameworks regarding socio-technical transitions, we compare these theories with examples of innovation policy in different countries. Systemic transformation across an economy usually requires a process of creative destruction in which new competencies may be required, actors need to be connected in novel ways, and institutions may need to be changed. Our empirical illustrations show that support programs and initiatives across Europe do not always seem to result in such a process, as they include mechanisms favoring large, established firms and universities. These actors have often fine-tuned their activities and capabilities to the existing order, and therefore have few incentives to engage in renewal. As the incumbent actors also control superior financial and relational resources, there is a risk that they captivate innovation policies and thus reinforce established structures rather than contributing to systemic transformation.
2020
Purpose
Digitally intermediated peer-to-peer exchanges have accelerated in occurrence, and as a consequence, they have introduced an increased pluralism of connotations. Accordingly, this paper aims to assess user perceptions of the interplay between the sharing, access, platform, and community-based economies.
Design/methodology/approach
The sharing, access, platform, and community-based economies have been systematically tracked in the social media landscape using Social Media Analytics (SMA). In doing so, a total material of 62,855 publicly posted user-generated content concerning the four respective economies were collected and analyzed.
Findings
Even though the sharing economy has been conceptually argued to be interlinked with the access, platform, and community-based economies, the empirical results of the study do not validate this interlinkage. Instead, the results regarding user perceptions in social media show that the sharing, access, platform, and community-based economies manifest as clearly separated.
Originality/value
This paper contributes to existing literature by offering an empirical validation, as well as an in-depth understanding, of the sharing economy’s interlinkage to other economies, along with the extent to which the overlaps between these economies manifest in social media.
2020
This paper takes stock of recent suggestions that the state apparatus is a central and underappreciated actor in the generation, diffusion and exploitation of innovations enhancing growth and social welfare. We contrast such a view of “the entrepreneurial state” with theories and empirical evidence of the microeconomic processes of innovation in the modern economy which focus on well-functioning markets, free entry and competition among firms, and independent entrepreneurship as central mechanisms in the creation and dissemination of innovations. In doing so, we identify several deficiencies in the notion of an entrepreneurial state by showing that (i) there is weak empirical support in the many hundreds empirical studies and related meta analyses evaluating the effectiveness of active industrial and innovative policies, that (ii) these policies do not take account of the presence of information and incentive problems which together explain why attempts to address purported market failures often result in policy failures, and that (iii) the exclusive focus on knowledge creation through R&D and different forms of firm subsidies ignores the equally important mechanisms of knowledge dissemination and creation through commercial exploitation in markets. We discuss how a more theoretically well-founded focus on the state as investing in knowledge generation and securing the conditions of free and competitive markets will lead to a more innovative economy.