On March 11, 2011, the Great East Japan Earthquake hit Japan’s Tohoku area, resulting in severe damage to public services. The subsequent blackout around base and telephone stations rendered telecommunication services nonfunctional for a certain period. In light of this, government departments have undertaken several studies on this issue, which include investigating possible countermeasures against future earthquakes. However even for disaster mitigation, it is important to strike a balance between cost and benefits. Given this situation, this analysis investigates Japanese peoples’ preferences for taking countermeasures against disasters in the field of telecommunication by using data from an online survey. A review of the literature on the telecommunication field reveals that there are no empirical studies on estimating the willingness to pay (WTP) for countermeasures in the telecommunication field. The cost for and quantity of countermeasures supplied could be forecasted/estimated based on various available technical information; that is, by combining information on the WTP for countermeasures, the question of the extent to which the countermeasures that should be carried out are made available could become clearer. The analysis revealed the following results. First, WTP for measures that prevent the suspension of telecommunication services in the event of a disaster is not insignificant. Second, a higher priority should be placed on mobile (voice) services when formulating appropriate backup plans for communication services during times of disasters. Third, estimation results of victims’ WTP reveal that a backup provision within a 24-hour period would be beneficial even when suspension prevention is difficult. Finally, there was a national consensus on the importance of taking the necessary countermeasures so as to ensure that services are functional even in the event of a disaster.
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Chatchai Kongaut and Erik Bohlin
The market intervention procedure in Europe is simplified as three steps to regulate inefficient markets: the first step is to identify the relevant market, the second step is to test whether there is any significant market power in the market and the third step is to apply the appropriate remedy to solve the market failure. While the ex ante regulation is mainly analysed and implemented based on economic frameworks, in practice the relevant market analysis is currently identified based on the principle of competition law. It is not uncommon for economics and law sometimes to go in different directions. This leaves scope for the regulatory body to trade-off one option for another. This study aims to fill the gap in regulation study by trying to understand the problems of market definition analysis and significant market power frameworks in the EU. The analysis of this study is based on document analysis of economic issues from previous studies and reports, including the public consultation in 2013 on the revision of the Recommendation on relevant markets. This study shows that economic issues along with the service convergence bring new challenges to both operators and regulators in the current European telecommunications sector. For example, the two-sided market in mobile telephony affects the mobile termination market when defining relevant market. Similarly, platform competition and substitution between fixed and mobile need to be considered when defining relevant market in wholesale broadband services. The static and dynamic trade-off should be under consideration throughout the procedure as it affects competition and investment in both the short and long run. Therefore it is important for market definition and SMP analysis to balance policy between economics and law, static and dynamic and consider market definition case by case, depending on the priority and situation in each member state perspective.
Jitendra Parajuli and Kingsley E. Haynes
Broadband internet is considered an important determinant of economic growth and development. A number of studies have examined the impact of broadband on migration, firm location and economic growth. However, the relationship between broadband infrastructure and new firm formation in the USA has not been sufficiently described. This chapter fills that gap by empirically examining the relationship between broadband internet and new firm formation. It is found that single-unit firm births and the provision of broadband are positively and significantly related across almost all industry sectors in the USA. However, the impact of broadband provisioning on new firm formation is sensitive to agglomeration and aggregate and growth patterns of states and economic sectors.
Viroj Jienwatcharamongkhol and Sam Tavassoli
It is well known that exporters are productive firms, but the source of their productivity is left unexplained. This chapter aims to endogenize the productivity heterogeneity of exporting firms by incorporating innovation in a structural model framework. In doing so, we close the gap between the innovation–productivity and productivity–export literature. Two waves of the Swedish Community Innovation Survey (CIS) are merged. This allows for a setup that takes into account the links from innovation input to innovation output and also from innovation output to productivity and exports. The main findings highlight that exporters are productive firms with innovation output in the past, which in turn was driven by prior R & D and other innovation activity investments.
Jan Abrahamsson, Håkan Boter and Vladimir Vanyushyn
In this study we examine the scope and pattern of innovation cooperation of international new ventures (INVs) of different age, size and formation type. Using longitudinal micro-matched database and Swedish Community Innovation Survey results for the years 1998–2009, we show that INVs are more likely to be involved in international cooperation than other firms, and that INVs are also more likely to have a broader scope of international partnerships in terms of number of partners and geographic location of these partners. We further show how age of a firm that originated as an INV and its formation type – greenfield, spin-off or merger – affect patterns of international cooperation for innovation.
David B. Audretsch and Maksim Belitski
This study provides compelling evidence on the role of creativity and human in economic development in European cities. The size of the impact depends on the propensity of creative capital to spill over, a living and business environment conducive to creativity and exchange of ideas, agglomeration economies, cultural diversity and entrepreneurship. Utilizing an Urban Audit dataset on 187 cities in 15 European countries during 1999–2009, our study develops the basis of the creative spillover of entrepreneurship theory and introduces the concept of the ‘creativity filter’. It confirms that the availability of creative capital does not per se result in economic development, but entrepreneurship facilitates the spillover and commercialization of those ideas.
Cathy Yang Liu, Gary Painter and Qingfang Wang
Immigrants’ participation in high-tech industries as both workers and business owners has increased steadily since 2000, at a faster rate than that of their US-born counterparts. Immigrant-owned high-tech businesses are more concentrated in a limited number of industries, such as computer sciences and medical and pharmaceutical-related fields. While the largest immigrant gateways account for a dominant share of all immigrant high-tech entrepreneurs in the country in 2011, new immigrant destinations in the South and West have seen significant increase of immigrants in high-tech industries. For both immigrants and the US-born, a higher number of high-tech businesses is positively associated with regional labor markets that have an overall higher percentage of high-tech industries. At the same time, higher ethnic diversity and a larger share of the foreign-born population are crucial factors in attracting or fostering immigrant high-tech entrepreneurship at the metropolitan level.
Roberto Antonietti, Maria Rosaria Ferrante and Riccardo Leoncini
Using an original dataset of small, machine-tool firms located in Emilia Romagna, Italy, we estimate the effect of social capital on the propensity to fully or partially outsource production activities. In particular, we investigate whether social capital favours outsourcing in contexts characterized by a relatively high infrastructure endowment. We show that the likelihood to fully outsource production activities increases with the local level of social capital. We also find that this effect is higher in regions where the density of transport infrastructures is higher. On the other hand, we do not find any significant effect of social capital on the propensity to partially outsource production activities. We argue that social capital is more effective in reducing the scope for opportunistic behaviour when monitoring costs are higher and where mobility is easier.