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R&D and the Persistence of Profits

PublikationArtikel (med peer review)
Daniel Wiberg, Entreprenörskap, Företagandets villkor, Forskning, Investering, Johan Eklund, Vinst

Sammanfattning

Economic theory tells us that abnormal firm and industry profits will not persist for any significant length of time. Any firm or industry making profits in excess of the normal rate of return, will attract entrants and this competitive process will erode their profits. However, a substantial amount of research has found evidence of persistent profits above the norm. Barriers to entry and exit, is an explanation often put forward to this anomaly. In the absence of, or with low barriers to entry and exit, this reasoning provides little help in explaining why these above-norm profits arise and persist. This paper explores the links between the systematic search for knowledge and the persistence of profits. By investing in R&D (Research and Development) firms may succeed in creating products or services that are preferred by the market and/or find a more cost efficient method of production. Corporations that systematically invest in R&D may, by doing this, offset the erosion of profits and thereby have persistently high profits, which diverge from the competitive return. The paper argues that even in the absence of significant barriers to entry and exit, profits may persist. This can be accredited to a systematic search for knowledge through R&D.

Eklund, J. & Wiberg, D. (2008). “R&D and the Persistence of Profits”. The IUP Journal of Managerial Economics, 6(2), 40-54.


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Artikel (med peer review)Publikation
Bergh, A., Erlingsson, G., Gustafsson, A. & Wittberg, E.
Publiceringsår

2019

Publicerat i
Sammanfattning

The market-inspired reforms of New Public Management have been particularly pronounced in Swedish local government. Notably, municipally owned enterprises (MOEs) have rapidly grown in numbers. Principal-agent theory gives rise to the hypothesis that the massive introduction of MOEs has impacted negatively on the conditions for accountability in Swedish local government. To study this, social network analysis was employed in mapping networks for 223 MOEs in 11 strategically chosen municipalities, covering a total of 732 politicians. The analysis reveals substantial overlaps between principals (representatives of the ultimate stakeholders, citizens) and agents (the boards of the MOEs). Hence, corporatization of public services seems to imply worrisome entanglements between the politicians who are set to steer, govern, and oversee MOEs on the one hand, and the board members of MOEs on the other. The increasing numbers of MOEs may therefore have adverse effects on accountability in important and growing parts of Swedish local government.

Assessing the interplay between crowdfunding and sustainability in social media
Artikel (med peer review)Publikation
Laurell, C., Sandström, C. & Suseno, Y.
Publiceringsår

2019

Sammanfattning

This paper aims to assess the degree to which sustainability-oriented dimensions are integrated within the public discourse on crowdfunding in social media. Utilizing Social Media Analytics (SMA), we track discussions on crowdfunding in user-generated content published in social media. Based on an empirical material of 141,754 user-generated content, we identify 308 entries (0.21 percent) explicitly or implicitly relating to sustainability and 80 percent of these 308 entries came from professional actors. In this material, 37 sustainability-oriented campaigns are identified and 26 of them (70 percent) received one entry. Taken together, this paper adds to previous literature by assessing and describing the seemingly minor role played by social media with regards to the interplay between crowdfunding and sustainability.

Migration and Occupational Careers: The Static and Dynamic Urban Wage Premium by Education and City Size
Artikel (med peer review)Publikation
Korpi, M. & Clark, W.A.V.
Publiceringsår

2019

Sammanfattning

Using matched employer-employee full population data on regional migrants in Sweden, this paper addresses the question whether the urban wage premium, and ‘thick’ labour market matching effects, are to be found across all educational groups, and whether the population threshold for these types of effects varies by educational category. Estimating initial wages, average wage level and wage growth 2001-2009, we find similar wage premiums for all workers in the three largest metropolitan areas, but that there are distinct population thresholds for these type of effects, regardless of educational background. However, job search behaviour as explaining dynamic effects over time seems to pertain mostly to those with higher education.
Related content: Working Paper No. 256

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