Many of society's biggest policy challenges — protecting the environment, providing healthcare, education, and safety, encouraging participation in the democratic process — are social dilemmas. These challenges require individuals to bear personal costs in order to benefit others, a behavior that is typically defined as ‘cooperation’ ...
Europe is undergoing a significant technology entrepreneur brain-drain to the United States because it is not doing enough to retain information and communication technology (ICT) start-up companies.
A report by researchers from Imperial College Business School, initiated by the EIT ICT Labs and published today, found that ICT is a major economic driver for Europe. Between 2005 and 2010, investment in the sector accounted for one-third of all economic growth in the region, while ICT innovations bring positive, knock-on benefits for other industries.
The report – ‘ICT innovation in Europe: Productivity gains, start-up growth and retention’ – found that European countries are leading the way in nurturing talent, but do hardly enough to retain it. In fact, 43 percent of successful EU start-ups end up being acquired by US companies.
In this paper we study the public debate over net neutrality in the United States from January through November 2014. We compiled, mapped, and analyzed over 16,000 stories published on net neutrality, augmented by data from Twitter, bit.ly, and Google Trends. Using a mixed-methods approach that combines link analysis with qualitative content analysis, we describe the evolution of the debate over time and assess the role, reach, and influence of different media sources and advocacy groups in setting the agenda, framing the debate, and mobilizing collective action. We conclude that a diverse set of actors working in conjunction through the networked public sphere played a central, arguably decisive, role in turning around the Federal Communications Commission policy on net neutrality.
According to purists, the field of economics is supposed to be free of political ideology. Economics views itself as a science1 and the prevailing consensus, best articulated by Nobel-winner and Chicago-school doyen George Stigler, is that “the dominant inﬂuence” in economics “is the set of internal values and pressures of the discipline” which help keep it nonpartisan.
With this knowledge about actual ideology in hand, we built an algorithm that discovered the relationships between political leanings and word choice in about 18,000 academic papers written by our sample of economists.
We first found that an economist’s research area is correlated with his or her political leanings. For example, macroeconomists and financial economists are more right-leaning on average while labor economists tend to be left-leaning. Economists at business schools, no matter their specialty, lean conservative. Apparently, there is “political sorting” in the academic labor market.
To conduct the research, Soule, along with Stanford GSB student Jacob Model and Brayden G. King, an associate professor at the Kellogg School of Management at Northwestern University, tracked outcomes of more than 750 shareholder resolutions related to environmental causes. In a second study, she and King worked with Mary-Hunter (Mae) McDonnell, an assistant professor at the McDonough School of Business at Georgetown University, to examine interactions between corporate activists and 300 corporations.
Sarah Soule is the Morgridge Professor of Organizational Behavior at Stanford GSB and the Hank McKinnell-Pfizer Inc. Faculty Fellow for 2014-15.
The paper aims to contribute to the longstanding technology-push vs. demand-pull debate and to the literature on renewable energy diffusion and renewable energy policy assessment. We argue that in addition to the traditional push-pull dichotomy, the drivers of technological change must be differentiated by whether they are exogenous or endogenous to the economic system. We maintain that a specific type of endogenous demand-pull mechanism (i.e. economic growth) is a major catalyst of environmental innovation. We apply this perspective to study the diffusion of renewable energy (RE) technologies in 15 European Union countries from 1990 to 2012. Applying different panel data estimators, we find that public R&D investments, policies supporting RE and per capita income all have a positive impact on RE diffusion, whereas the variability of policy support has a negative impact. However, we also find that economic growth is a stronger driver than either public R&D investments or policies supporting RE, and that models that do not take it explicitly into account tend to overestimate the importance of exogenous drivers. Most importantly, we note that the effect of economic growth on RE diffusion exhibits a nonlinear, U-shaped pattern that resonates with the well-known Environmental Kuznets Curve hypothesis. RE penetration remains negligible at low levels of growth whereas it increases sharply only after income per capita has reached a given threshold and the demand for environmental quality rises. Our findings have implications for policy making. They suggest that for RE diffusion to increase, government action should be directed not only at shielding renewables from competition with fossil fuel technologies but also at stimulating aggregated demand and economic growth.
If nations want even a 50 percent chance of avoiding dangerous global warming, they’ll need to keep more than 80 percent of current coal reserves in the ground. And in the United States, more than 90 percent of coal reserves would need to stay buried, according to a new study from University College London.
...In this new paper, published Wednesday by the journal Nature, researchers tighten the focus of this global carbon budget by breaking the global numbers into regional ones...
...In the Middle East, producers would have to forego 38 percent of their oil and 61 percent of their gas. China and India would close off 66 percent of their coal. Former Soviet states would keep 94 percent of their coal underground...
And, unfortunately, that’s the good news.
...The above estimates assume that power plants and industry will be able to capture and hide much of their carbon dioxide beginning in 2025. Without that rosy assumption, idled coal reserves jump to 95 percent in the U.S., 77 percent in China and India, and 97 percent in the former U.S.S.R. And these numbers may be the safer bet
Faculty participating in X-Culture, a global virtual team project started by Vasyl Taras at the University of North Carolina at Greensboro (see “Grassroots Innovation” on page 33), are currently working on a study on the effect of “free-riders” who don’t pull their own weight on virtual teams. Although free-riding can be a problem on any team, it can be especially prevalent when team members have never met each other and have no sense of social obligation or reciprocity to each other.
A global team’s performance can plummet if just one of its members shirks his or her responsibilities, says Taras. “It’s all about the perception of injustice,” he says. “If one person on a ten-member team doesn’t do his share of the work, logic says that the team’s performance should decrease by ten percent. But our data show that when one student on a team doesn’t participate, it leads to a disproportionately large loss in performance. If two stop participating, everyone stops working because they think, ‘Why should I work if those two aren’t working and we’re all getting the same grade?’”
Using data collected from X-Culture projects, faculty already have reduced nonparticipation among X-Culture students dramatically, from 30 percent to about 3.5 percent. By employing the following strategies, Taras believes other professors can achieve the same success:
Require weekly peer evaluations. When students can evaluate their team members, “it works like magic, because students can restore a sense of justice on the team if someone isn’t doing his share of the work,” says Taras.
Give the power to exclude. Students can vote on whether a free-rider can stay on the team. The possibility of being voted off the team gives everyone an incentive to contribute, says Taras.
Cultivate cultural intelligence. After testing how factors such as team size, cultural diversity, or age affect the level of free-riding, X-Culture faculty have found that cultural intelligence plays the biggest role. Students who are culturally intelligent—who respect and can listen effectively to a diverse range of people—are much less likely to shirk their duties.
That’s why many X-Culture faculty devote up to a week in their course schedules to activities that allow students to learn about their teammates’ interests, families, and other personal information. “When people know each other, they have a sense of social obligation, which increases how much they respect each other and how much they’ll commit to accomplishing a common goal,” says Taras. “That extra time might seem unrelated to the project, but it makes a huge difference in the project’s outcome.”
After years of stress, in-fighting, anxiety and admin, the day has almost arrived: on 18 December, the results of the latest university research audit will be released.
The research excellence framework (REF), an exercise that assesses the quality of academic research, is a huge deal for universities and academics.
The results determine how much research funding they are granted – there’s £2bn a year up for grabs – and they’re used to determine institutions’ rankings in league tables. A poor performance can close a department, while a top rating means steady funding.
154 UK universities took part in the REF, with special panels reviewing a total of 190,000 research submissions by 52,000 academic staff.
How does the process work?
Every six years, institutions are asked to submit examples of their best research to be assessed by a team of academics and industry experts. Each subject area is awarded up to four stars...
Dr Dennis Lendrem, of the University of Newcastle, said: "Idiotic risks are defined as senseless risks, where the apparent payoff is negligible or non existent, and the outcome is often extremely negative and often final".
As work organizations become increasingly gender diverse, existing theoretical models have failed to explain why such diversity can have a negative impact on idea generation. Using evidence from two group experiments, this paper tests theory on the effects of imposing a political correctness (PC) norm, one that sets clear expectations for how men and women should interact, on reducing interaction uncertainty and boosting creativity in mixed-sex groups. Our research shows that men and women both experience uncertainty when asked to generate ideas as members of a mixed-sex work group: men because they may fear offending the women in the group and women because they may fear having their ideas devalued or rejected. most group creativity research begins with the assumption that creativity is unleashed by removing normative constraints, but our results show that the PC norm promotes rather than suppresses the free expression of ideas by reducing the uncertainty experienced by both sexes in mixed-sex work groups and signaling that the group is predictable enough to risk sharing more—and more-novel—ideas. Our results demonstrate that the PC norm, which is often maligned as a threat to free speech, may play an important role in promoting gender parity at work by allowing demographically heterogeneous work groups to more freely exchange creative ideas.
Generally considered a negative trait, entitlement, in small doses, can actually have the positive effect of boosting creativity, according to a new study to be published in the Journal of Experimental Social Psychology.
Various studies have found that those who feel entitled are less likely to help others or apologize and are more likely to want special privileges, break rules, treat their romantic partners selfishly and make unethical decisions.
Lynne Vincent, post-doctoral research fellow at the Vanderbilt Owen Graduate School of Management / (Vanderbilt)
However, in a new study, entitlement was examined for a positive consequence, and researchers found that stirring entitlement in people stimulates their creativity. The condition was prompted by a short exercise where subjects were encouraged to write sentences about why they deserved various positive outcomes.
“Our results suggest that people who feel more entitled value being different from others, and the greater their need for uniqueness, the more they break convention, think divergently and give creative responses,” say Lynne C. Vincent, a post-doctoral research fellow at the Vanderbilt Owen Graduate School of Management, and Emily Zitek, assistant professor of psychology at Cornell University’s School of Industrial and Labor Relations.
...The economists estimated elevated levels of pollution (defined as an additional 10 PM2.5 units of exposure) lowered test scores by 0.23 percent. That might mean 2 percent lower wages a decade later...
The American way is more arbitrary, and so it seems less meritocratic. But a new paper by Israeli economists Victor Lavy, Avraham Ebenstein, and Sefi Roth finds high-stakes testing, like the American system, also favors the rich. The authors looked at the Israeli admissions system, where the Bagrut exam determines university admissions. They took the test scores of 55,873 students at 712 schools from 2000 to 2002, and the students’ earnings 10 years later. They then compared test scores and future wages with the level of ambient air pollution on the test days. Ambient pollution is associated with impaired cognitive performance, especially for asthmatics.
More harmonization of higher education systems across the European Union may be needed if its universities are to continue to compete on the global stage, speakers said at a recent conference.
Taking an unfashionable standpoint in the light of rising anti-European sentiment in Britain and some other countries, Kurt Deketelaere, secretary general of the League of European Research Universities, told a conference that EU-wide legislation may be required to enable the truly free movement of students and researchers.
Speaking at the Reinventing Higher Education conference at IE University in Madrid last week, Deketelaere warned that “we are not going to survive” if Europe continues with 28 separate sets of research systems and funding arrangements...
This study explores how positive (PRMs) and negative role models (NRMs) of business affect students' attitudes, expectations, and behavioural intentions relating to their future business behaviour. A thematic analysis of student reflections (N = 96) based on their experience of material presented in their Business Ethics/Corporate Social Responsibility modules, interpreted through the framework of Ajzen's Theory of Planned Behaviour, revealed that while NRMs led to intentions to avoid unethical behaviour and engage in ethical practices such as ethical purchasing, they also increased cynicism and undermined students' self-efficacy in the ethical business domain. Exposure to PRMs offset the negative consequences arising from NRMs, protecting against reduced self-efficacy by showing that unethical behaviour is neither necessary nor inevitable in business, thus undermining the common justification for unethical behaviour that 'everybody does it'. PRMs increased awareness that business can be both ethical and profitable and provided inspirational role models which led to increased intentions to engage in ethical business practices. With reference to social psychological literature, these results suggest that PRMs are necessary to counter the impression created by NRMs that ethical business is unachievable or unlikely as such beliefs can become self-fulfilling.
It turns out that, back in 2009, the Fed had commissioned Columbia Business School Professor and former banker David Beim to conduct a study to get to the bottom of the agency’s failure to regulate the banks and prevent the financial collapse of 2008.
What did Beim discover? Were the economics too sophisticated to understand? The markets too complicated? No.
As it turns out, the regulatory failure was in fact due to a lack of psychological safety that would have allowed Fed employees to share their observations and concerns.
Building Block 1: A supportive learning environment.
An environment that supports learning has four distinguishing characteristics.
To learn, employees cannot fear being belittled or marginalized when they disagree with peers or authority figures, ask naive questions, own up to mistakes, or present a minority viewpoint. Instead, they must be comfortable expressing their thoughts about the work at hand.
Opinion: The importance of acting now cannot be overstated: every euro spent on fossil fuels today condemns parts of the world to hurricanes, drought and infectious diseases
The meeting of the European Council – the gathering of the EU member states – in Brussels on Thursday and Friday will lead to a decision that will have far-reaching consequences. The summit is expected to see the adoption of a new framework for Europe’s climate and energy policy, including a set of targets for 2030 to cut our greenhouse gas emissions, boost renewable energy use and reduce overall energy use. These pledges matter, for Europe and the international community.
Mary Robinson, former president of Ireland, is the United Nations secretary-general’s special envoy on climate change and a member of the European Climate Foundation’s advisory board
Business education needs to be more integrated, more interdisciplinary and more oriented towards thinking about the bigger “system-level” picture. A second order level of thinking is required. Moving beyond the direct relationship between action and value, business schools must offer education that addresses the complex systemic challenges we are all facing.
New organisational forms have evolved in Europe. My own organisation, Climate-KIC, is Europe’s largest public-private partnership with more than 230 partners drawn from prestigious universities, research institutions, blue-chips and SMEs. The EU created the KICs to address the innovation challenge of Europe and make existing models obsolete. These organisations are creating new knowledge and will be a stimulus for business schools to evolve and change.
Erasmus Impact Study confirms EU student exchange scheme boosts employability and job mobility
Young people who study or train abroad not only gain knowledge in specific disciplines, but also strengthen key transversal skills which are highly valued by employers. A new study (PDF, 229 pages) on the impact of the European Union's Erasmus student exchange programme shows that graduates with international experience fare much better on the job market. They are half as likely to experience long-term unemployment compared with those who have not studied or trained abroad and, five years after graduation, their unemployment rate is 23% lower. The study, compiled by independent experts, is the largest of its kind and received feedback from nearly 80 000 respondents including students and businesses.
Peggy Liu, Chairperson of JUCCCE, is internationally recognized for her expertise on China‘s sustainability landscape and for fostering international collaboration with this Asian country. JUCCCE is a non-profit organization dedicated to accelerating the greening of China, because a green China is the key to a healthy world. JUCCCE is a leader in creating systemic change in sustainable cities, sustainable consumerism and smart grid, and most noted for its multi-sector convening power.
She is also an executive advisor to Marks & Spencer, as well as an advisor to the World Economic Forum Project Board on Sustainable Consumption, and Volans. She is a member of the FTSE Environmental Markets Committee, and a Thought Leader at Criticaleye. She served as a sustainability advisor to HP in 2013, a member of the World Economic Forum’s Global Agenda Councils on Sustainable Consumption 2012-13 and on New Energy Architecture 2011-12, and an energy adviser to the Clinton Global Initiative in 2008.
Academic Remarks from the Research Colloquium
Chair of Academic Development. Associate Dean, IE Business School
Tools for the study of the flow of ideas by @ddelval0 - #IoT The Internet Of Things - Big Data - Sensors # WPRF2014
This course focuses on the concepts and tools behind reporting modern data analyses in a reproducible manner. Reproducible research is the idea that data analyses, and more generally, scientific claims, are published with their data and software code so that others may verify the findings and build upon them. The need for reproducibility is increasing dramatically as data analyses become more complex, involving larger datasets and more sophisticated computations. Reproducibility allows for people to focus on the actual content of a data analysis, rather than on superficial details reported in a written summary. In addition, reproducibility makes an analysis more useful to others because the data and code that actually conducted the analysis are available. This course will focus on literate statistical analysis tools which allow one to publish data analyses in a single document that allows others to easily execute the same analysis to obtain the same results.
en.wikipedia.org/wiki/Richard_Florida is currently a professor and head of the Martin Prosperity Institute at the Rotman School of Management at the University of Toronto (not the author of the IMF report)
Pinning down the precise relationship between growth and inequality is a challenge. Some studies reckon inequality is mildly bad for growth. Others suggest the relationship changes as poor countries grow rich, while still others reckon it is the trend in inequality rather than its level that matters.
Research by economists at the International Monetary Fund aims to add clarity to the debate. In a 2011 paper Andrew Berg and Jonathan Ostry argued that it is the duration of spells of growth that is most important for long-run economic performance: getting an economy growing in the first place is much easier than keeping the growth spell rolling. They reckon that when growth falters, inequality is often a culprit. Latin America’s Gini index is about 50, well above that in emerging Asia, which has a Gini of about 40. (A Gini index is a measure of income concentration that ranges from 0, representing perfect equality to 100, where all income flows to a single person.) Were Latin America to close half of that gap in inequality, its typical growth spurt might last twice as long, on average.
Others reckon that it may not be inequality itself that harms growth but rather governments that tax and spend to try to reduce it. In a new paper Messrs Berg and Ostry and Charalambos Tsangarides tease out the separate effects of inequality and redistribution. They turn to a data set put together by Frederick Solt, a political scientist at the University of Iowa, containing Gini indices for 173 economies spanning a period of five decades. Mr Solt provides Ginis for both market income and net income (after taxes and transfers). The difference between the two gives the authors a measure of redistribution (see chart). In America, which does relatively little of it, redistribution trims the Gini index by roughly ten points. In Sweden, in contrast, it cuts the Gini by 23 points—more than half. Using these figures, the economists can separate out the different effects of redistribution and inequality on growth.
Up to a point, spreading the wealth around carries no growth penalty: growth in income per person is not meaningfully lower in countries with more redistribution. But economies that redistribute a lot may enjoy shorter growth spells, the authors reckon. When the gap between the market and net Ginis is 13 points or more (as in much of western Europe) further redistribution shrinks the typical expansion. The authors caution against drawing hasty conclusions. Details surely matter; nationalising firms and doling out profits would presumably be worse for growth than taxing property to fund education.
Inequality is more closely correlated with low growth...
Jennifer L. Castle, David F. Hendry, 13 August 2014
A typical Oxford University econometrics exam question might take the form: “Data mining is bad, so mining with more candidate variables than observations must be pernicious. Discuss.” Similar questions may well be asked at other academic institutions, but there may be few outside Oxford University where the candidates are expected to refute both myths. This column explains why that is the right answer.
"The Intersection between Entrepreneurship and the Base of the Pyramid: What’s the Evolving Role of Strategy in Social Entrepreneurship?"
Saturday, 20 September 2014, from 10:00 a.m. until 1:00 p.m. Lunch to follow.
Generously sponsored by:
IE (Instituto de Empresa Business School, Madrid)
This pre-conference workshop gathers together an impressive panel of Base of the Pyramid and social entrepreneurship scholars and practitioners. Using their professional and personal life experiences as points of departure, they will discuss how scholarship and real-world initiatives have evolved in recent years, and whether/how these two worlds have informed and continue to inform firm-level strategy formulation and implementation.
New research from the Beedie School of Business suggests that long-established practice used by financial institutions for over two decades is in fact inaccurate – and could have major repercussions for the way banks value assets.
The researchers examined the effect of counterparty credit risk – the risk to each party in a contract that the counterparty will not live up to its contractual obligations – on optimal exercise policy and valuation of American style options. Contrary to previous research on the subject, they found that optimal exercise policy can significantly affect the critical asset price at which early exercise of a vulnerable American option is optimal.
Owners of American style options may exercise that option at any time before it expires, unlike European style options, which can only be exercised at expiration. The major accounting standards boards around the world have long since adopted the results from the previous research when dealing with American style options.
However Klein and Yang’s research indicates that when dealing with American style options this previous research is simply incorrect, resulting in inefficient pricing strategies being utilized by financial institutions.
“The research shows that the accounting standards boards of the world banks have it wrong – the banks really aren’t organized correctly to properly manage credit risk in the American style options,” says Klein...
On Tuesday, July 22, at 10:00 am ET the Broad Institute of MIT and Harvard made a groundbreaking announcement: philanthropist Ted Stanley has made a commitment of $650 million to galvanize scientific research on psychiatric disorders and bring new treatments based on molecular understanding to hundreds of millions of people around the world.
The Stanley commitment – the largest ever in psychiatric research and among the largest for scientific research in general – will support research by a collaborative network of researchers within the Stanley Center for Psychiatric Research at the Broad Institute, a biomedical research institution that brings together faculty from MIT, Harvard University, the Harvard-affiliated hospitals, and collaborators worldwide...