young ideas for the future: a selection of...

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XVI Milan European Economy Workshop (MEEW)

Innovation and services of general interest:

from the lab to enterprises and citizens

Milan, 22-24 June 2017

YOUNG IDEAS FOR THE FUTURE:

A SELECTION OF RESEARCH OUTLINES IN THE FIELD OF INNOVATION AND

SERVICES OF GENERAL INTEREST

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Preface

The present booklet collects the research outlines of twenty young scholars selected among a high

number of applicants to participate at the XVI edition of the Milan European Economic Workshop (MEEW)

“Innovation and services of general interest: from the lab to enterprises and citizens”, 22 to 24 June 2017.

The workshop, jointly organised by the Jean Monnet EUsers network, the Department of Economics,

Management and Quantitative Methods (DEMM) of the University of Milan and CIRIEC, focuses on the role

played by governments in fostering innovation in the Services of General Interest for enterprises and final

users.

The aim of this booklet, edited by Valentina Morretta (University of Milan), is to give the opportunity

to young scholars to disseminate their ideas and ongoing researches, getting feedback from other

participants at the workshop and expanding their network of contacts.

The copyright of each research outline rests with the authors. Quotation is permitted provided that

full acknowledgement is made. This booklet may not be reproduced without prior consent of the authors.

Milan, 21 June 2017

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Mark Emil Candelaria Aguinaldo De La Salle University

[email protected]

Mark Aguinaldo is a Master of Arts candidate in Development Policy at the De La Salle University. He

worked as a corporate planner for the Center for International Trade Expositions and Missions, an agency

of the Philippine Department of Trade and Industry for the internationalization of SMEs; and export

promotions. He has likewise served as a management; and sustainable tourism lecturer at the Far Eastern

University in Manila.

GOVERNMENT-LED R&D AND INNOVATION FOR THE SMEs OF THE PHILIPPINES

Research Topic and Objectives

The general objective of the research is to analyze how the government’s provision of R&D can

support the development of small and medium scale enterprises (SMEs) and their eventual

internationalization as exporters, specifically on technology transfer, product development, merchandise

design, and packaging.

Background and main scientific literature of reference

When professionally designed and managed, provision of R&D is hypothesized to prevent profit losses

resulting from miscalculations and strategic errors on the part of producers and exporters, as well as in

improving the international standing, credibility and image of a country as a reliable source of quality goods

and services.

As in the case of the Philippines, the potential benefits lie on the fact that there has been an

unprecedented growth of the SME sector. These SMEs help ensure a more equitable distribution of income,

dispense economic activities in the countryside, and are a potent force in poverty alleviation. Based on

2015 statistical data provided by the Philippine Statistics Authority (PSA), there are 900,914 establishments

in the Philippines. Of these, 99.5% are micro, small, and medium enterprises (MSMEs) and the remaining

0.5% are large enterprises. Majority of the 896,839 MSMEs in 2015 are in the wholesale and retail trade;

repair of motor vehicles and motorcycle industries with 417,094 business establishments; accommodation

and food service activities, 119,037; manufacturing, 113,949; other service activities, 56,904; information

and communication, 35,171; and, financial and insurance activities, 34,384. These industries accounted for

about 87.0% of the total number of MSME establishments.

Innovative elements of this research

While the research will make use of the qualitative method through exploratory case study analyses,

the innovative elements of this research is that of being an interpretivist study where the current situation

from the perspective of the interviewees will be explained, and informant statements are repeated to

develop key themes.

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Methodology

Utilizing the case study methodology, select SMEs, coming from various levels and degrees of

enterprise development will be interviewed to gather insights on their experience accessing government

R&D support provision. On the other hand, relevant government agencies, through the examination of

their websites, as the initial point of contact, can lead to further investigation on how transparent and

collaborative they are in responding to the needs of the SMEs. Similarly, government officers working on

R&D provision to SMEs should also be interviewed to identify and analyze the challenges they are facing

from the supply side.

Expected results

The result of the research study is the publication of a booklet of information to help the SMEs.

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Roberto Cardinale University College London

[email protected]

Roberto Cardinale is a doctoral researcher in Economics of Energy Infrastructure at the Bartlett Faculty

of the Built Environment, University College London. Prior to that, he was a research associate at the

University of Cambridge and Sungkyunkwan University (Seoul). He was a visiting student at Galatasaray

University (Istanbul), and holds an MA in Political Economy from the Catholic University of Milan. For the

academic and strategic potential of his current research, he has been awarded the “Ermenegildo Zegna

Founder’s Scholarship”.

THE ECONOMIC AND POLITICAL IMPLICATIONS OF THE TRANSITION FROM THE NATIONAL TO THE

EUROPEAN MODEL OF ENERGY GOVERNANCE: A COMPARATIVE ANALYSIS OF THE GREENSTREAM, GALSI

AND MEDGAZ GAS PIPELINES


Roberto’s research investigates the political and economic implications of the transition from the

national to the European model of energy policy. It aims to understand the effects of the new supply chain

dynamics that emerged from the transition and the main problems faced by the key stakeholders, i.e.

energy firms, governments, and final consumers. It proposes forms of European energy governance that

reconcile the current principles of EU policy with the specificities of the energy sector.


The transition from the national to the European model of energy governance, which has yet to be

fully realised, began in the 1990s as an effect of the EU liberalization of the energy market. It was based on

the logic of market liberalization, which held that consumers’ interests could be best served by forbidding

national governments to protect state-owned utilities from competitive market pressures. This policy has

had the effect of encouraging cross-border mergers within the European Union, while at the same time dis-

integrating supply chains and depriving formerly state-owned enterprises of diplomatic support in

negotiating with external partners. More specifically, this study analyses the ramifications that this

transition has had in terms of alternative ways to organize the supply chain of gas production and

distribution, and how this has impacted the profitability of transnational energy infrastructure, the policy

objectives that governments can pursue in and through the energy sector (e.g. energy security, reduction of

costs in energy procurement, economic development, geographical access), and the gas prices paid by final

consumers.

Different bodies of literature are relevant for investigating the effects of gas supply chain unbundling

for the key stakeholders, i.e. energy firms, governments, and final consumers. To investigate the energy

firms’ viewpoint, with particular reference to infrastructure profitability, two bodies of literature are

relevant. These focus on energy supply chain’s profitability, on which the lens of Transaction Cost

Economics (Joskow, 2010) are extensively adopted, and transnational energy infrastructure, where

interstate energy deals play a decisive role. To investigate how supply chain unbundling affected the ability

of European governments to pursue policy objectives, three bodies of literature are relevant. Despite they

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all investigate the role of State Owned Enterprises (SOEs), different focuses of analysis differentiate them.

The first looks at SOEs’ performance and market structure (Megginson and Netter, 2001). The second

investigates SOEs as a tool of economic policy (Christiensen, 2013). The third takes in to account the

performance of SOEs under various ownership structures, including mixed ownership, and the potential

implications for policy (Florio, 2004). Two bodies of literature are relevant for the analysis of consumers’

welfare under alternative forms of energy supply chain. The first largely refers to the US gas market (Arano

and Blair, 2008), whereas the second refers to the European context (Florio, 2013)


The implications of the transition on the energy supply chain constitute an important research

question because of the significant impact they might have on energy costs, which may in turn adversely

affect economic growth; on the profitability of the energy sector, which may reduce investment in energy

infrastructure and thereby threaten energy security; and on energy prices, which has direct effects on

consumers’ welfare. Whilst the general energy supply-focussed literature on transaction costs typically only

considers strictly economic sources of transaction costs (see Joskow, 2010 for a review), in this research the

framework is extended to include political intervention. This is particularly important at the present

moment when outside the European Union we can see national governments beginning to reassert

themselves in the field of energy governance.

Methodology

The empirical component of the thesis is a multiple case study of undersea gas pipelines connecting

North Africa to Europe. The multiple case study methodology is particularly suitable for the purposes of this

research. In fact, it makes it possible to study the variables under investigation by highlighting the

fundamental differences between carefully selected cases, whilst controlling for other variables that are

not under investigation. The paper approaches the problem of gas supply chain unbundling through a

multiple case study of transnational energy infrastructure, and specifically of three undersea natural gas

pipelines: “Greenstream”, which connects Libyan gas reserves to the Italian gas network across the

Mediterranean Sea; “Galsi”, a planned but not yet realized pipeline that would connect Algeria to Italy;

“Medgaz”, which connects Algeria to Spain. The comparison between the cases offers a comprehensive

perspective on the effects of gas market liberalisation. In particular, the projects reflect different levels on

which the transition occurred from the viewpoint of supply chain unbundling, which in turn, helps identify

the impact on energy firms, governments and consumers.

Expected results

The results obtained so far show that the transition has led to an increase in transaction costs, which

has reduced the profitability of transnational energy infrastructure (Cardinale 2015), and that governments

are only able to pursue some of the policy objectives they used to pursue before the transition (Cardinale,

2017). I also expect to find that the increased transaction costs may be responsible for the higher final

consumer prices observed after the transition. Beyond the contributions to academic research described

above, this research can have significant policy implications, especially in view of the relevance that the

issues studied have for energy security, economic growth, and consumers’ welfare.

References

Arano, Kathleen G., and Benjamin F. Blair. 2008. ‘An Ex-Post Welfare Analysis of Natural Gas

Regulation in the Industrial Sector’. Energy Economics 30 (3): 789–806.

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Cardinale, R., 2017. ‘The European gas sector: political-economy implications of the transition from

state-owned to mixed-owned enterprises’. In M. Florio, ed. Network Industries Reform: Evaluating the EU

Paradigm. Edward Edgar, forthcoming.

Cardinale, R. 2015. ‘The Profitability of Transnational energy infrastructure: A Comparative Analysis of

the Greenstream and Galsi Gas Pipelines’. University College London, mimeo.

Florio, M. 2004. The Great Divestiture: Evaluating the Welfare Impact of the British Privatizations,

1979-1997. MIT Press.

———. 2013. Network Industries and Social Welfare. Oxford University Press.

Joskow, Paul L. 2010. ‘Vertical Integration’. Antitrust Bulletin 55 (3): 545–586.

Megginson, William L, and Jeffry M Netter. 2001. ‘From State to Market: A Survey of Empirical Studies

on Privatization’. Journal of Economic Literature 39 (2): 321–389.

Christiansen. 2013. ‘Balancing Commercial and Non-Commercial Priorities of State-Owned

Enterprises’. 6. OECD Corporate Governance Working Papers.

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Saptorshee Kanto Chakraborty University of Ferrara

[email protected]

I am Saptorshee Kanto Chakraborty, a second year Doctoral Student in EMIS at University of Ferrara,

Italy. I am from Kolkata (Calcutta) India, I have a M.Sc degree in Economics (2007-09) from University of

Calcutta, I also took part in a six-month course on Quantitative Economics from CSSSC (Centre for Studies in

Social Sciences, Calcutta). Previously, I was employed as a Research Associate at Indian Institute of

Management Calcutta, in the Finance & Control group.

A STUDY OF GREEN INNOVATION IN OECD COUNTRIES – MACRO & MICRO


The focus of my thesis is to have a look at the spillover effects of R&D in the field of Green Patents in

the OECD region. At Macro level, I intend to assess the interactions of human capital flows and business

and gross research allotments on green innovation activities. At Micro level, I intend to investigate the

interaction of Corporate Governance and Green Innovation for firms within the OECD region.

Background, methodology and innovative elements

Macro:

Green innovation is a necessary component of green growth. Innovations are driven by national and

international factors, mainly related to technology, trade and policy, research and development, which are

heterogeneous in nature and might be unobservable or observable. Parametric models have difficulties in

catching the intrinsic non-linearity created by the hectic evolution of policies, the presence of market and

policy shocks in the high-risk long term oriented green innovation. The paper aims at providing some

original insights by analysing over a long period of time (1982-2012), rich of market and policy shocks (i) the

extent to which common market and policy factors heterogeneously affect national green innovation

patterns, (ii) whether countries experiencing different policy stringencies – defined in a discrete space –

present different ‘shape’ of the R&D-Human capital relationship which is behind national innovative

capacity. The two complement investigations conveys new understanding regarding the complexity of

knowledge production functions through original semiparametric techniques, in a realm (green inventions)

where both market and policy (observable, endogenous unobservable) factors are intensely playing a role,

and there is increasing need to capture and understand heterogeneous country effects. Policy insights for

innovation and environmental realms are derivable from the analysis of green innovation drivers for

different policy classes (stringency). Policy discourses might be informed by evidence which places strong

attention to country heterogeneous effects. The main objective is to examine the knowledge spillover

among OECD countries and the linkage of Knowledge Spillover which ends up in Green innovation (Ertur

and Musolesi, 2016), in econometric terms we focus our issue of error cross-sectional dependence on both

weak and strong cross-sectional dependence, and how this dependence may affects model specification

and estimation. Our preliminary analysis on the estimation of exponent of cross-sectional dependence

provides results depicting strong cross-sectional dependence, so a factor structure is preferable to spatial

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error model, we also deal with forms of dependence and non-stationarity by common correlated effects

approach. To deal with the complexity of knowledge production and heterogeneity we propose to adopt

Spatial Autoregressive Semiparametric Geoadditive Model, which is a new branch of spatial econometric

literature, which concurrently deals with spatial dependence, spatial heterogeneity and unknown

functional form (Basile et al., 2014, Montero et al. 2012). Our focus is to propose an extension of P-Spline

Spatial Autoregressive model (PS-SAR) to estimate spatio-temporal trends. By adopting PS-SAR model we

intend to handle functional form bias, spatial dependence bias, spatial heterogeneity bias, and omitted

time-related factor bias. To have a look at the dynamics related to the data we intend to break the spatio-

temporal trend into spatial and temporal effects up to second and third order interactions between them.

To address the paradox of compromising the goodness of fit we intend to use B-spline nested bias (Lee et

al., 2013). We also intend to use the algorithm as proposed by Rodriguez- Alvarez et al., (2015) to reduce to

reduce the computational time to estimate parameters.

Micro:

The expected contribution of this literature is to empirically test the worseness of corporate

governance, as proxied by antitakeover laws in the OECD region, reduces firms' environmental innovations,

a category of innovative projects that is currently receiving great attention from both policy-makers and

academics due to its potential to reduce greenhouse gas emissions (e.g. Aghion etal.,2015;

Veugelers,2012). Using a common approach as (e.g. Griliches, 1990), the idea is to use patent data to

measure innovation related activities. Though this approach has its limitations, the most common being

that patents only cover patentable and patented inventions, but still the advantage of using patent data is

that they are clearly measurable and widespread across industries and time (Hall et al., 2005). Moreover,

contrary to standard accounting items on R&D expenditures, patent applications provide detailed

information on key features of the underlying invention, which are useful to classify innovations according

to their technological content. Environment-related (green) innovations can be classified as according

(Dechezlepretre et al.,2013a, 2013b). The main reasons to use green innovation are following:

Green patents represent a central aspect of organizational knowledge in the area of environmental

technologies; as such, they not only reduce pollution outcomes (Carrion-Flores and Innes, 2010) but also

have a potential to affect the entire trajectory of corporate innovation (Aghion et al., 2015);

Green patents can potentially generate positive externalities in the form of knowledge spillovers

and thus facilitate the adoption and diffusion of environmental technologies at the industry and country

level;

Green patents have distinctive features, e.g. they have more general applications, are cited more

frequently than non-green patents (Dechezle- pretre et al., 2013b) and receive citations from a wider array

of technological classes;

Firms are subject to growing stakeholder and institutional pressures towards environmentally

responsible behavior (e.g. Kock et al., 2012) that may have distinct impacts on green innovation activities

(Berrone et al., 2013).

The idea is to investigate the relationship between corporate governance and green innovation by

estimating difference-in- differences models based on the passage of anti-takeover legislations inside the

OECD region along with firm-level indicators.

Expected results

The idea of my thesis is to have a deeper look into the current green innovation effects in the OECD

region both at Micro and Macro level. Since, not much work is done in these regard, my research will be

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innovative of its kind. At present I am in the preliminary level of my research, so I am unable to share any

results but my expectations are high.

References

Aghion, P., Dechezlepretre, A., Hemous, D., Martin, R., Van Reenen, J., (2015): “Carbon taxes, path

dependency and directed technical change: evidence from the auto industry.” J. Political Econ..

Forthcoming.

Berrone, P., Fosfuri, A., Gelabert, L., Gomez-Mejia, L.R., (2013): “Necessity as the mother of ‘green'

inventions: institutional pressures and environmental innovations.” Strateg. Manag. J. 34, 891–909.

Carrion-Flores, C., Innes, R., (2010): “Environmental innovation and environmental performance.” J.

Environ. Econ. Manag. 59, 27–42.

Basile, R., M. Durbán, R. Mínguez, J. M. Montero, and J. Mur (2014): “Modeling regional economic

dynamics: spatial dependence, spatial heterogeneity and nonlinearities,” Journal of Economic Dynamics

and Control, 48, 229-245.

Dechezlepretre, A., Glachant, M., Meniere, Y., (2013a): “What drives the international transfer of

climate change mitigation technologies? Empirical evidence from patent data.” Environ. Resour. Econ. 54,

161–178.

Dechezlepretre, A., Martin, R., Mohnen, M., (2013b): “Knowledge spillovers from clean and dirty

technologies: a patent citation analysis.” Working paper.

Ertur, C., and Musolesi, A. (2016) “Weak and Strong Cross-Sectional Dependence: A Panel Data

Analysis of International Technology Diffusion.” J. Appl. Econ.

Griliches, Z., (1990): “Patent statistics as economic indicators: a survey.” J. Econ. Lit. 28, 1661–1707.

Hall, B.H., Jaffe, A., Trajtenberg, M., (2005): “Market value and patent citations.” RAND J. Econ. 36,

16–38.

Kock, C.J., Santalò, J., Diestre, L., (2012): “Corporate governance and the environment: what type of

governance creates greener companies?” J. Manag. Stud. 49, 492–514.

Lee, D.-J., M. Durban, and P. Eilers (2013): “Efficient two-dimensional smoothing with P-spline ANOVA

mixed models and nested bases,” Computational Statistics & Data Analysis, 61, 22-37

Montero, J., R. Mínguez, and M. Durbán (2012): “SAR models with nonparametric spatial trends. A P-

spline approach,” Estadística Española, 54, 89-111.

Rodriguez-Alvarez, M. X., T. Kneib, M. Durban, D.-J. Lee, and P. Eilers (2015): “Fast smoothing

parameter separation in multidimensional generalized P-splines: the SAP algorithm,” Statistics and

Computing, 25, 941-957.

Veugelers, R., (2012): “Which policy instruments to induce clean innovating?” Res. Policy 41, 1770–

1778.

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Chub Olga Kharkov National University of Radio Electronics, Ukraine

Department of Economic Cybernetics and Management of Economic

Security

[email protected]

Associated Professor, Department of Economic Cybernetics and Management of Economic Security

Kharkov National University of Radio Electronics, Ukraine; Ph.D. Degree in Economics (2014)

Social activities: Assistant and Press Secretary of the People’s Deputy of Ukraine. In 2009 and 2010 I won

the national students' scientific contest «Zavrta.UA» of Victor Pinchuk Foundation

Other interests: bicycle, swimming, study of art history, especially Renaissance

EQUILIBRIUM IN FUNDING RESEARCH AND DEVELOPMENT


In general my scientific direction lies in managing the resource potential of companies providing

services of General Interest such as water supply utilities.

Taking into account very strict financial limitations on funding scientific research, it is very important

to learn how to invest optimally the available funds from different sources including state support, provide

the optimal cost structure, and justify clear criteria for the effectiveness of research results.


Today a problem of state support for research and development (R&D) is very important for Ukraine

taking into account little support from the domestic business. Moreover, as it is known, distinguishing

feature of R&D is an absence of immediate profit as a result of research. So, a long payback term should be

considered as an integral factor. In conditions of considerable turbulence of the Ukrainian realities an

uncertainty of general return on investment (ROI) is considerably increases. So, as it is shown in

fundamental Guide to cost-benefit analysis of investment projects1, special tools for investment risk

assessment should be developed.

Public sector research in Ukraine, to some degree financed by the government, includes scientific

research in universities as well as scientific institutes of the National Academy of Sciences of Ukraine. Such

an organizational structure in the field of scientific management distinguishes our country from many

European countries.

What are the parameters for scientific research financing?

In the budget of Ukraine for 2017, science funding as a whole has been reduced to a record low - if in

2016 funding it was 0.18% of the state budget, then for the current 2017 - 0.16%. It is lowest level among

European countries, as it follows from2.

The funding problems are partly of the same nature as those described in the paper of A. Sterlacchini3

(2012) but are mainly determined by the turbulence inherent in the environment of large research projects.

1 http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/cba_guide.pdf

2https://www.djei.ie/en/Publications/Publication-files/The-Research-and-Development-Budget-2015-16.pdf

3 www.sciencedirect.com/science/article/pii/S0301421511008871

https://www.djei.ie/en/Publications/Publication-files/The-Research-and-Development-Budget-2015-16.pdf

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Currently, the system of state grants is becoming more and more used as a competitive system for

obtaining funds. At the same time, the main financial flows are directed to ensuring the payment of

scientific staff, while the solution of issues of information material and hardware support of scientific

research is postponed.

Taking into account such strict resource constraints, it is very important to learn how to invest

optimally the available funds, provide the optimal cost structure, and justify clear criteria for the

effectiveness of research results.

In this regard it is necessary to note the paper of M. Florio and E. Sirtori4 (2016), where an conceptual

model based on the estimation of quantities and shadow prices of cost aggregates, and of six main

categories of economic benefits has been presented. These benefits may be considered as partial

optimization criteria of good governance.


Carrying out the analysis of the main parameters of this subject area, I see the following pressing

problems:

• To develop a regulatory framework and harmonize Ukrainian practice with European standards in

the field of state support for scientific research, including formalization of the criteria for the scientific

research effectiveness; in this context, the concept of Cost-Benefit Analysis of Investment Projects is very

interesting.

• To ensure equitable distribution of public funds;

• To determine the balance between the pure theoretical research and the solution of applied

problems from real economics.

• To develop organizational forms of co-operation between government presented by the profile

ministries with external donors. For example, consortia with foreign partners are possible.

• To identify the role of the government both a manager as a guarantor of high-level scientific results.

These issues are especially relevant for the public sector of the economy as a sphere that affects the

interests of all segments of the country's population.

To consider and solve these problems it is necessary to create a set of models (optimization and

simulation ones as well).

Methodology

As a model of such interaction, as it seems to me it is interesting to use a special kind of 3-tier supply

chain for financial flows distribution. The levels of the supply chain correspond to producers, distributors

and so-called retailors accordingly, where retailors deal with end consumers of scientific research.

In this supply chain the government, external donors, charitable foundations, large domestic business,

all of them act as different kinds of producers (sources, manufacturers).

Considering the description of such a supply chain on the example of Ukraine, as the main distributors

it is possible to take the Ministry of Science and Education of Ukraine (MSEU), the National Academy of

Sciences of Ukraine (NASU), profile ministries.

The second level of the supply chain being considered consists of state and private universities from

MSEU structure, NASU scientific institutes and subordinate universities of other ministries, for example, the

Ministry of Agriculture.

The third level of such a supply chain is the public sector enterprises that meet the demand of end

users.

4 http://econpapers.repec.org/article/eeetefoso/v_3a112_3ay_3a2016_3ai_3ac_3ap_3a65-78.htm

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The aim is to define equilibrium of this supply chain. More precisely the model being proposed is

designed to define equilibrium between funding opportunities and the needs of society.

Depending on type of main functions describing the behavior of supply chain subjects (producers,

distributors and retailers) one can apply different solution methodologies. Among them variational

inequality model (see papers of A. Nagurney), Lagrange multipliers, elements of probabilistic theory etc.

can be considered.

The keystone here, in my opinion, is to build adequate behavior functions, defining costs and benefits

of the supply chain agents.

Expected results

For me the participation in XVI – MEEW is decisive for the successful development of my research. I

would like to understand deeply the mechanism of new knowledge flow from research laboratories to

innovation in enterprises and finally to citizens. And I expect to submit (in co-authorship if possible) the

paper to Special Issue of Journal of Economic Policy Reform.

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Hana Cosic Trainee at the EU Commission

[email protected]

Hana Cosic holds a PhD in Economics from the Sant’Anna School of Advanced Studies Pisa and

University of Strasbourg jointly. Her research focuses on behavioural economics and applications to

property decision making, policy making, entrepreneurship and start-ups. She received the certificate seal

of excellence by the EU Commission for a research proposal under H2020 Marie Curie Sklodowska Curie

from 2016. She has been a visiting scholar at Queen Mary University, London. She holds a masters’ degree

in Management from Lund University, Sweden. Her bachelor studies with honours were awarded in

Economics and Information Systems from Buckingham University, UK.

HOW BEHAVIOURAL ECONOMICS CAN INFLUENCE CREATIVITY


Creativity is the production of novel and useful ideas and is considered as an essential part of

organizational innovation that drives economic prosperity. The determinants and triggers for creativity and

innovative activities have become increasingly important for various stakeholders. Studies discuss that

“work environment can exert a powerful impact on creativity by influencing motivation” (Amabile, 1996). In

this study we examine how behavioural economics insights can be used as tools to foster creativity by

targeting more internalized motivations.


Talent, creativity and innovation are frequently used words and when we are engaged in the act of

creativity we often feel we are performing at the peak of our capabilities. Politicians, academics and

business leaders have realized that creativity and innovation are fundamental to economic prosperity.

However given its increasing importance, creativity has not been extensively researched by scientists.

Many studies in psychology and behavioural economics suggest behavioural insights interventions can

be just as powerful as price interventions in changing individuals’ choice and behaviour. Studies show that

behavioural insights have been used in public policy to influence energy use, healthy eating or finance

decisions (OECD, 2017) but to the best of our knowledge we find no study on behavioural insights and

creativity. Some studies in psychology have tried to shed light on influence of type of motivations on

creativity. Results show that intrinsic motivations can be more important than extrinsic. While, traditionally

economic theory focus on external rewards, mainly monetary incentives and punishment, more recent

studies have shown evidence that these kind of incentives are not always efficient for enhancing creativity

(e.g. Gneezy & Rustichini 2000; Toubia, 2006). In other words if you pay a person for doing a task, he might

be less willing to work on it and also be less productive. Using other types of interventions (e.g. behavioural

insights) could enhance creativity, quality of work and more persistence in the behaviour.


This research brings novelty studying creativity using behavioural economics insights. Given that

creativity is a very important prerequisite for economic prosperity, studying how behavioural insights

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influence creativity contributes to the literature in behavioural economics but also in management and

leadership. To the best of our knowledge no studies have used this approach to study creativity in general,

also group creativity and important feedback from study participants. In addition to contribution to

scientific streams, this research can be beneficial for to all types of firms (small, medium and big) as their

creativity and eventually innovations are drivers of firms' growth and profit.

Methodology

This study uses experiment to gather primary data. In the first step we profile participants with a

survey on demographical information as well as their individual level of creativity. We use a standardized

creativity test (divergent and convergent thinking). The aim of this task is to analyse data and test if

divergent level of creativity or demographical characteristics have any effect on performance of a creativity

task. In part 2 of the experiment, the aim is to test level of group creativity using different type of

behavioural insights interventions. We test the effect of two types of behavioural interventions on

creativity: comparison and feedback behavioural interventions. In the third part we use a questionnaire to

ask participants regarding our assessment of collaboration, leadership, level of difficulty and their

satisfaction level with tasks. Participants are reimbursed on a flat based scheme.

Expected results

Our experiment consists of two parts. In the first part of the study, analysis of data reveals

demographical profile and individual level of creativity. In simple words, data reveals more characteristics

of a more/less creative person. In the second part our data reveals influence of behavioural interventions

on group creativity. Results reveal differences between two different types of behavioural interventions.

Furthermore results show the participants view on collaboration, level of difficulty and their satisfaction

with their performance.

References

Amabile, Teresa M. ‘Creativity in context: Update to “the social psychology of creativity”’. Westview

press, 1996.

Gneezy, U., & Rustichini, A. (2000). ‘Pay enough or don't pay at all’. The Quarterly Journal of

Economics, 115(3), 791-810.

Toubia, Olivier. ‘Idea generation, creativity, and incentives’. Marketing Science 25, no. 5 (2006): 411-

425.

OECD (2017), ‘Behavioural Insights and Public Policy: Lessons from Around the World’, OECD

Publishing, Paris.http://dx.doi.org/10.1787/9789264270480-en

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Ajla Cosic Trainee at the European Research Council Executive

Agency, European Commission

[email protected]

Ajla Cosic holds a PhD in management from the Scuola Superiore Sant’Anna, Pisa. Her research

interests fall under the areas of consumer behaviour. Currently she is doing her traineeship in the EU

Commission at the European Research Council Executive Agency. Ajla received her Masters in Business

Leadership from Lund University, Sweden. Ajla holds a B.A. with honours in Information Systems and

Economics from Buckingham University.

CAN NUDGES HELP SMEs TO CHANGE EMPLOYEES BEHAVIOUR AND CUT THEIR COSTS?


We analyse whether nudges are indeed efficient in promoting energy saving and recycling of

resources among employees in Small and Medium Enterprises (SMEs), and whether the combination of

different types of nudges serve as better instruments.


Changing people's behaviour in relation to energy consumption will be one of the most important

challenges in the near future. In my opinion this important long term social and policy challenge can be

solved through the Triple Helix thinking, emphasizing multiple and joint actions and interactions and

collaboration between university, government and industry actors. The main emphasis should be on how to

create sustainable growth by using transformational impact of disruptive technologies on traditional

models for business and public sector organizations (e.g. energy), universities and public research

organizations.

What’s clear is that current strategies to raise awareness of energy saving unsustainable use of

resources are clearly not enough to tackle the problems we face. A lot of government programs, campaigns

about helping people to eat healthier have failed. An innovative behavioural technique that has become

widely used in the area of behaviour change research is nudge. Nudge was primarily defined by Thaler and

Sunstein (2008) as a technique that alters a person’s decision-making context, without removing options or

changing the incentives in order to promote choice and behaviour in accordance to their own preferences.

Nudge helps us to make the “right” decision easier to make in any given situation.

In my research I am using behavioural insights approach in order to nudge consumers toward better

decision making. In my opinion, policies that ignore results of human psychology and assume that we are

Homo economicus will hardly reach their aimed level of impact.

I think that current strategies used to change human behaviour are clearly not enough to tackle the

problems we face (unsustainable use of resources, energy saving). I think that nudge tools can be seen as a

complement to the traditional policy instruments because they promote a more empirical approach to

policy design and evaluation than the tools usually applied in policy making.

References: Thaler, R. H., & Sunstein, C. R. (2008). ‘Nudge. Great Britain’, Penguin Books.

17


The use of nudges in designing and implementing market interventions is not a totally new tool or

approach – it has been tested and used for some time – in the private sector, governments and regulators.

Uniqueness of this research is that we are trying to use nudges to affect employees behaviour by

making energy saving and recycling more cost effective and easier for citizens to use, as well as to enable

people to make "better choices for themselves" by leveraging insights from the behavioural science

literature.

I think that the use of nudges can be a powerful complement to other traditional policy approaches

because nudges are small, cost-effective and choice architecture-type interventions that seek to alter

people’s behaviour but without drastically restricting their choices. So we want to help SMEs to change

behaviour of their employees by nudging them to save more energy, recycle more and use resources more

sustainable.

Methodology

• Field study- experiment inside the company

• Online survey with employees

Field study- experimental design

Experiment should last 8 weeks in total: 4 weeks of control period and 4 weeks of intervention period.

In this study we will use different nudge techniques:

• 'easy to choose’ nudge- introduction of green footprints on the floor of a company cafeteria

• social norm message

• a default option

Survey with employees

We will do online survey with employees, regarding their behaviour and attitudes toward energy

saving and sustainable use of resources.

We are using two types of methodology in order to see if there is a difference between actual

behaviour and revealed behaviour.

Expected results

We expect that results of the experimental treatments will show positive, negative or no effect (e.g.

significant improvement) on energy saving and recycling when one nudge or a combination of nudges is

applied.

18

Lea Diestelmeier Groningen Centre of Energy Law

[email protected]

My name is Lea Diestelmeier; I am a Ph.D. researcher at the department of European and Economic

Law and the Groningen Centre of Energy Law of the University of Groningen in The Netherlands.

Expectedly, I will finalise my dissertation in autumn 2018.

DEVELOPING A LEGAL FRAMEWORK FOR SMART ELECTRICITY GRIDS


My Ph.D. is part of a research project which is called “Smart Regimes for Smart Grids” and is funded by

the Netherlands Organisation for Scientific Research (NWO). This project applies an interdisciplinary

approach between governance and law and identifies actors, decision-making processes, and regulatory

obstacles in emerging smart grid developments. The overall objective is to develop a legal and planning

framework for smart grid design and operation.


The background of the research is provided by the necessity to innovate in grid design and operation

in order to achieve the desired low-carbon electricity sector. Merely increasing the amount of generation of

electricity from renewable energy sources will not lead to the desired low-carbon electricity society. Equally

important is using the available capacity of renewable energy sources and the grid infrastructure efficiently.

This quest is well established and reflected in the idea of smart electricity grids. Smart grids cannot be

understood as a fixed set of technologies, but entail grid design and operation with a focus on efficiency

gains. The essential idea of smart electricity grids is to match generation and demand of electricity close to

real-time. System users are not only connected by the electricity grid but additionally exchange data

through communication networks on available and required capacities. An integrated pricing mechanism

provides incentives to consume or not consume, to use or not use the grid. Even though smart electricity

grids are not yet implemented beyond pilot projects, first findings indicate that smart grids will necessarily

include a variety of actors who are not yet existent in the electricity sector. ‘Prosumers’ could become

market participants; consumers could offer flexibilities in consumption, aggregators could offer pooling

services to system users. This is only a non-exhaustive list of new roles and actors. However, those are not

fitting existing regulatory categories as current regulation distinguishes between generators, suppliers,

system operators, and consumers.

The baseline situation for my research is given by the current legislative framework of the electricity

sector. In the context of the internal market, on EU level the rules are mainly enshrined in the Directive on

common rules for the internal electricity market (Directive 2009/72/EC). Here, the actors of the electricity

sector and their tasks are defined. National legislation establishes further specifications and conditions.

However, existing legislation only serves as a source for sketching the current regulatory setting, which is

tailored for a top-down organised electricity sector. For developing a legal framework which incentivises

smart grids, my research builds on scientific legal research which ascertains the relation between

technology and law in the development of the electricity sector. One of the overarching questions is ‘how

19

can law enable and steer technological development and innovation?’ Answering this question requires

extending beyond the interpretative nature of existing legislation by understanding the implications of

technological innovation for a regulatory framework.


The joint approach between law and governance forms an innovative approach for investigating new

organisational forms which incentivise smart grids. A partner Ph.D. project explores emerging governance

structures in smart grids while my project focuses on regulatory leeway and constraints. Additionally,

different stakeholders from the energy sector are involved (local energy associations, cooperative

suppliers, municipalities). The project is thus formed by a consortium of stakeholders and researchers who

complement each other with input and findings.

Methodology

Existing legal research on energy systems has primarily dealt with the introduction of liberalisation and

the challenges arising from the transition to sustainable energy. Mainly, legal analyses include a limited

number of parties with well-defined roles. This research aims not to restrict the research to existing legal

organisational settings as this might be too limited regarding the technical functioning of smart grids.

Sketching the baseline scenario, the legal part is based on analyses of relevant legislations at European and

national (Dutch) level as a system of multilevel governance. According to the hierarchy of sources of law,

firstly, EU law will be considered, secondly national (possibly subnational) legislation. The development of a

legal framework for smart grids is based on secondary sources for the technology, organisational, and

economic aspects of smart grids. Those serve for drawing a framework for understanding what smart grids

entail, including the rationale of smart grids and identifying main technical functionalities. Mirroring the

rationale and functionalities of smart grids with current legal provisions leads to the identification of main

regulatory obstacles and subsequently to recommendations for developing a legal framework which

enables the intricate nature of smart grids.

Expected results

Overall, the research project reveals that the implementation and operationalisation of smart grid

functionalities requires changing roles and responsibilities of existing but also new actors which need to be

incorporated in a regulatory framework. My research particularly focuses on the design of a legal

framework which enables and incentivises smart electricity grids.

Achieving low-carbon electricity systems requires focusing on efficiency by harnessing flexibility in grid

usage and consumption. Various technologies contribute to this aim which can be applied by different

system users. In that sense, regulation enabling smart electricity systems will not be built upon clearly

distinguished actors, consumers will not merely consume, producers will not merely generate as the real

value will be the flexibilities that the system users can provide. The following (expected) results can be

pinpointed:

-regulation enabling smart grids should focus on functions of the electricity systems rather than

actors;

-regulation needs to incorporate a largely technology neutral approach (focusing on effects instead of

specific means);

-experimental space to investigate new forms of governance and regulation for smart grids needs to

be sufficiently large.

Eventually, the research project will result in a monographic dissertation. Some of the present findings

materialised in the following working papers and scientific articles:

20

L. Diestelmeier (2017) ‘Regulating for Blockchain Technology in the Electricity Sector:Sharing Electricity

– and Opening Pandora’s Box?’, Conference paper, presented at 16th Annual Conference in Science,

Technology, and Society Studies, Panel: ‘Sharing Local Energy and Regulatory Response to it’ (8 – 9 May

2017, Graz, Austria).

L. Diestelmeier and D. Kuiken (2017) ‘Smart Electricity Systems: Access Conditions for Household

Customers under EU Law’, European Competition and Regulatory Law Review 2017/1 p. 36 – 46.

I. Lammers and L. Diestelmeier (2017) ‘Experimenting with Law and Governance for Decentralized

Electricity Systems: Adjusting Regulation to Reality?’, Sustainability 9(212).

L. Diestelmeier and D. Kuiken (2016) ‘Sustaining Universal Service Conditions in Smart Electricity

Systems’, Network Industries Quarterly. 18(3) p. 7 – 10.

21

Murad Harasheh University of Milan-Bicocca,

Department of Business Management

[email protected]

My name is Murad Harasheh. I hold a PhD in Economics, Law, & Institutions from IUSS Institute in

Pavia-Italy. Currently I’m a post-doctorate research fellow at the University of Milano-Bicocca in the

Department of Business Management conducting research on environmental economics/finance.

Previously I worked as a research partner with the Italian Authority of Energy.

EUROPEAN EMISSION ALLOWANCE AND THE STOCK MARKET BEHAVIOR: EVIDENCE FROM FURTHER

TRADING PHASES

Research Topic and Objectives5

The overall research objective of this research is to examine the relationships between EU ETS

(Emission Trading System) allowance price changes and the stock price behavior for the major power

generation companies in selected EU countries for the three trading phases of the ETS, and hence we

formulate the following questions: 1) Is there a relationship between EU ETS allowance price and the stock

price? and 2) How this relationship might change with respect to various trading phases?


Since its introduction in 2005, researchers have been investigating the multidimensional economic

impact of the EU ETS on the pollution abatement cost, environmental innovation, and competiveness at

sector and firm levels. Although the overall allowance allocation in the first phase of the scheme has been

qualified as generous by many scholars (e.g. Ellerman and Buchner, 2008, Kettner et al., 2008), since its

initiation the EU ETS has led to discussions on potential losses in competitiveness for the companies

covered. According to Neuhoff et al. (2006), due to the sequential allocation process of EU ETS, decisions in

the power sector are distorted. Moreover, the electricity sector seems to be rather an exception as far as

generous allowance allocation is concerned. Buchner et al. (2006) show that this sector has been the only

one that faced a net short position already in 2005. The authors attribute the relatively stringent allowance

allocation for this sector to both the absence of international competition and the assumption of

comparably low emission abatement costs in electricity generation. The rationale to study the electricity

generation companies is the following:

1- The sector enjoys a degree of immunity against international competition;

2- It also enjoys a significant degree of market concentration (market power);

3- An energy-intensive industry:

5 This research is conducted together with Andrea Amaduzzi, University of Milan-Bicocca, Department of Business Management

([email protected])

22

4- Since the beginning of the third trading in 2013, energy generation sector is excluded from

receiving free emission allowances.

Finally, This paper contributes to the current debate on the EU ETS finance and to the little literature

related to this thesis by investigating the relationship between the EU ETS price changes and the stock

prices of the main power generation firms for the three trading phases of ETS (which to our knowledge

would be the first to take into account a long period of all trading phases).


One of the robustness controls in this study will address the environmental innovation effect: over-

allocated firms are less stringent and thus have fewer motives to adopt innovative solution for pollution

abatement (a binary variable).

Methodology

In this context, we rely on an APT-style market model to capture the incremental economic influence

caused by the regulatory schemes of the emission allowance. Changes in the emission allowance prices are

used as an indicator for changes in firm’s wealth operating the ETS. If the regulation is perceived by capital

markets as an additional value-relevant factor, the coefficient on the indicator variable in the market model

should be significantly different from zero. Furthermore, higher returns on the market for emission rights

lead to higher (opportunity) costs on the firm level, which is bad news when firms are not able to shift the

additional burden to stakeholders, particularly customers. Then the trading scheme should have a negative

effect on firm value, since the dischargers carry the regulatory burden. In line with these assumptions, and

following the work of Oberndorfer (2009) and Veith, Werner and Zimmermann (2009) and Koch and Bassen

(2013): the stock return is estimated in following market model, however our data set is extended to

include the three trading phases.

Expected results

Consistent with the previous studies, we expect to see positive and significant betas related to ETS

allowance price changes in explaining stock price in the early trading phases of the ETS; however a

vanishing effect is expected to be seen in the current trading phase as allowances are not anymore

allocated for free.

23

George Keel Karonlinska Institutet Department of Learning Informatics Management and Ethics [email protected]

I am a health economist and clinical management scientist, and I research costs-accounting systems in

hospitals. I have worked professionally as a health economist and consultant, and I have an academic

background in health economics and clinical management.

FINDING ELEGANCE IN COSTING CARE FOR COMPLEX PATIENTS


My research aims to develop time-driven activity-based costing (TDABC) in hospitals to account for

cost in care delivery processes for patients multiple chronic conditions. We are integrating a TDABC model

with hospital systems to better understand the cost of care for complex patients, and how cost-systems

research can inform reimbursement policies.


Health care organizations around the world are investing heavily in value-based health care (VBHC),

and TDABC has been suggested as the cost-component of VBHC capable of addressing costing challenges.

Value-based health care (VBHC) has been proposed as a strategy to address the challenges facing health

care today. Value is defined in terms of the value equation – health outcomes achieved per unit cost

expended over the entire care delivery value chain (CDVC). The CDVC disregards boundaries between

departments and organizations, and captures all processes in the care continuum for a medical condition.

In systems that have integrated VBHC into reimbursement policies, fixed bundled payments reimburse each

CDVC to providers accountable for the full care cycle. The ability for providers to compare health outcomes

and costs is expected to foster improvement through competition on value. There is currently great interest

in VBHC, mostly directed at identifying which health outcomes are appropriate to measure for a particular

medical condition. Less attention has been paid to developing standards for cost calculations.

TDABC was presented by Robert Kaplan and Steven Anderson in 2004 as a modified version of ABC,

and has demonstrated some success in the production and service industries. It prioritizes accuracy over

precision, i.e. “approximately right rather than precisely wrong”. Accuracy is how close your cost estimate

is to actual cost, and precision is the number of decimal places you include in your estimation. TDABC

demands fewer resources by requiring only two key parameters: the capacity cost rate (CCR), and the time

required to perform activities in service delivery – thus the name “time-driven” ABC. The CCR is the cost of

capacity supplying resources divided by the practical capacity of those resources. TDABC has been

described as a micro-costing approach well-suited to accommodate the complexity of cost-accounting in

health care organizations.

KAPLAN, R. S. & ANDERSON, S. R. (2004). ‘Time-driven activity-based costing’. Harv Bus Rev, 82, 131-8,

150.

24

KAPLAN, R. S. & PORTER, M. E. (2011). ‘How to solve the cost crisis in health care’. Harv Bus Rev, 89,

46-52, 54, 56-61 passim.

KEEL, G., SAVAGE, C., RAFIQ, M. & MAZZOCATO, P. (2017) ‘Time-driven activity-based costing in health

care: A systematic review of the literature’. Health Policy.

PORTER, M. E. & LEE, T. H. (2013). ‘The Strategy That Will Fix Health Care’. Harvard Business Review,

91, 24-24.


TDABC has been successfully applied in health care and has demonstrated an ability to efficiently cost

care delivery processes, which overcomes a key challenge associated with current cost-accounting

methods. However, the method’s ability to inform bundled payment reimbursement systems and to

coordinate delivery across the care continuum remains to be demonstrated in the published literature, and

the role of TDABC in this cost-accounting landscape is still developing. After performing a systematic review

of the literature, we have not identified a TDABC application designed to cost care for patients with

multiple chronic conditions. My research is currently exploring how to bring TDABC costing models into

practice for complex patients, and aims to develop valuable insights for hospital costing and

reimbursement policy. We are developing our model to be generalizable to multiple hospitals, and hospital

departments.

Methodology

We will conduct exploratory studies using multiple methods for data collection and analysis. Non-

participatory contextual observational data is being collected and analyzed according to a health-care

specific TDABC approach, and electronic medical records (EMR) are being analyzed to clarify thee care

processes and frequencies. RStudio is being used to conduct all quantitative analyses.

A range of required parameters were defined to allow for the development of an Excel-based TDABC

model capable of both estimating the cost care processes, and running scenario and sensitivity analyses to

identify key cost drivers. After parameterization of the TDABC model, all collected data are cleaned and

analyzed in R to generate the relevant parameter values to be input to the model.

To validate the model estimates, care delivery costs were reconciled against the hospital’s annual

chart of accounts. Care providers will also review model estimates and comment on their validity. Any

discrepancies identified will be investigated and any flaws in the model will be corrected.

Preliminary Results

We have successfully constructed a functional TDABC model prototype. Our model has estimated the

cost of human resources for a set of outpatient processes at a hospital in Stockholm, Sweden, for patients

concomitantly diagnosed with chronic kidney disease, heart disease, and diabetes. This hospital recently

implemented an integrated practice unit (IPU) to integrate care delivery for these patients, and had

designed a randomized control trial to compare outcomes between traditional and IPU care. Using our

model, we estimated the cost of care processes at the IPU, and those of traditional care. We were able to

compare the cost of outpatient care between the traditional and integrated care processes, and found that

the IPU delivers care much more efficiently.

25

Manto Lampropoulou University of Athens

[email protected]

Manto Lampropoulou is currently a post-doctoral researcher at the Athens University of Economics

and Business and a member of the scientific staff of the National Centre of Public Administration and Local

Government. Her research interests include public policy, state reform, privatization and public

administration. Her current work focuses on the reform of state-owned enterprises (SOEs) and the politics

of privatization in Greece.

ΤHE POLICY AND POLITICS OF PRIVATIZATION IN GREECE


My research explores the policy and politics of privatization in Greece under the pressure of the debt

crisis. The main goals are to understand the changing role of the state in the network industries and the

new patterns of governance, regulation and public service that emerge in the sectors of Services of General

Economic Interest (SGEI).


Existing literature has discussed the changing policy paradigm in the EU, which is shifting towards

privatization, liberalization and competitive markets (Bauby 2002; Bartle 2005; Ceriani et al. 2009; Florio

2013). These developments have changed the structure and function of the utilities sectors and have

affected the ownership, mission and governance of SOEs (Florio 2014; Bance et al. 2015; CIRIEC & Bernier

2015). Of particular interest is the impact of the ongoing reforms on the public mission of SOEs (Bance

2015), on public service (Héritier 2001; Chevallier 2005; Stoffaes 1995) and on the notion of public interest

(Debène 1992).

However, the growing emphasis of the reform programmes on the economic and commercial aspects

of SOEs has raised certain concerns as regards the conciliation of the competitive market rules with public

interest principles (Bauby 2002; CEEP-CIRIEC 2000; Héritier 2001) as well as regulatory control and

accountability issues (Majone 1999; Thatcher 2002). In addition, the reforms in the utilities sector seem to

have led to controvercial effects on citizens (Hall, 1998; Clifton & Diaz-Fuentes 2010; Bacchiocchi et al.

2011; Fiorio & Florio 2013).

Since 2010, public utilities sector in Greece has been an area of major reforms that were mostly driven

by the pressure of the Eurozone crisis and the obligations that were undertaken in exchange for the

external financial assistance. In this context, SOEs have been the focus of a large-scale restructuring and

privatization programme. As a consequence, during the crisis period a critical shift has occurred in the

dominant pattern of SOE in Greece, which has also changed the traditional role of the state in the utilities

sector.


Contrary to most studies that focus on the economic and fiscal impact of privatization, this research

takes a broader perspective and aims at understanding the overall re-balancing of the social, political and

26

economic dimensions of public policy and its outcomes in the utilities sector. Emphasis is also placed on the

changing relationship between the SOEs and the citizens.

Methodology

The theoretical framework draws on the neo-institutional theory, mostly focusing on historical

institutionalism (March & Olsen 1989; Thelen et al. 1992; Hall & Taylor 1996), which provides the

explanatory framework of policy and institutional change in the utilities sector. Research also uses

empirical evidence and qualitative data based on interviews with policy-makers and administrative officers

involved in the privatization programme.

Expected results

The results of the research are expected to provide a framework for understanding the way by which

the process and the criteria of policy-making in the utilities sector have changed under the pressure of the

fiscal stress since 2010. Some early findings confirm that the role of the national government in policy

formation has been weakened, as the involvement of external actors has significantly increased. Evidence

based on some early policy outcomes also indicates that the traditional role of the state tends to shift

towards a technocratic approach, while fiscal criteria have taken precedence over socio-political ones. This

has led to a reconsideration of the role of SOEs, which tend to be perceived as means for reducing public

debt and have narrowed the notion of public service in the utilities sector.

References

Bacchiocchi E., Florio M. & Taveggiab G. (2015). ‘Asymmetric effects of electricity regulatory reforms

in the EU15 and in the New Member States: Empirical evidence from residential prices 1990–2011’, Utilities

Policy, 35: 72–90.

Bance, Ph. (Ed.) (2015). L’internalisation des missions d’intérêt général par les organisations

publiques. Presses Universitaires de Rouen et du Havre.

Bance, Ph., Fecher, F. & Obermann, G. (eds) (2015). ‘Serving the general interest with public

enterprises: New forms of governance and trends in ownership’, Annals of Public and Cooperative

Economics, 86 (4).

Bartle, I. (2005). Globalization and EU policy making. The neo-liberal transformation of

telecommunications and electricity. Manchester – NY: Manchester University Press.

Bauby, P. (2002). ‘L’Europe des Services Publics: Entre liberalisation, modernisation, regulation,

evaluation’, Politiques et Management Public, 20 (1): 15-30.

CEEP-CIRIEC (2000). Les services d’intérêt économique général en Europe. Régulation, financement,

évaluation, bonnes pratiques. Centre européen des entreprises à participation publique et des entreprises

d’intérêt économique général (Available at: http://www.ciriec.ulg.ac.be/wp-

content/uploads/2015/12/CEEP_Synthese-fr.pdf).

Ceriani L., Doronzo R. & Florio Μ. (2009). ‘Privatization, unbundling, and liberalization of network

industries: A discussion of the dominant policy paradigm in the EU’, DEAS Working Paper, 09–2009, Italy:

Università degli Studi di Milano.

Chevallier, J. (2005). Le service public. Paris : Presses Universitaires de France.

CIRIEC & Bernier, L. (eds.) (2015). Public enterprises today: Missions, performance and governance.

Editions Peter Lang.

Clifton, J. & Diaz-Fuentes, D. (2010). ‘Evaluating EU policies and public services: A citizens’

perspective’, Annals of Cooperative and Public Economics, 81(2): 281-311.

27

Debène (Ed.) (1992), Entreprise, intérêt général et marche unique. Rouen: Centre de recherches de

droit des activités économiques, Université de Rouen.

Fiorio, C.V. & Florio, M. (2013). ‘Εlectricity prices and public ownership: Evidence from the EU15 over

thirty years’. Energy Economics, 39: 222-232.

Florio, M. (2013). Network industries and social welfare: The experiment that reshuffled European

utilities. Oxford: Oxford University Press.

Florio, M. (2014). ‘Contemporary public enterprises: Innovation, accountability and governance’,

Journal of Economic Policy Reform, 17 (3): 201-208.

Hall P.A. & Taylor C.R. (1996). ‘Political science and the three new institutionalisms’, Political Studies,

44 (5): 936-957.

Hall, D. (1998). ‘Restructuring and privatisation in the public utilities’ – Europe. In L. de Luca (Ed.),

Labour and social dimensions of privatisation and restructuring – public utilities (water, gas, electricity).

Geneva: ILO.

Héritier, A. (2001). ‘Market integration and social cohesion: The politics of public services in

European regulation’, Journal of European Public Policy, 8(5): 825-852.

Majone, G. (1999). The regulatory state and its legitimacy problems, West European Politics 22

(1): 1-24.

March J.G. & Olsen J. (1989). Rediscovering institutions: The organizational basis of politics. New

York, Free Press.

Stoffaës Ch. (1995). Services publics. Question d’avenir. Commissariat général du Plan, Editions

Odile Jacob/La Documentation Française.

Thatcher, M. (2002). Delegation to independent regulatory agencies: Pressures, functions and

contextual mediation, West European Politics, 25 (1): 125-147.

Thelen, K., Steinmo, S. & Longstreth, F. (eds) (1992). Structuring Politics. New York: Cambridge

University Press.

28

Andrei Linu Lucian Blaga University of Sibiu (LBUS)

[email protected]

I’m Andrei Linu, Romania, PhD Student in Economics-Management at Lucian Blaga University of Sibiu

(LBUS). Also I am working as Quality & Reporting Manager in the research project “Next generation

computer aided research in cardiovascular disease management-NextCARDIO”, co-financed by European

Regional Development Fund (ERDF), where LBUS is the beneficiary.

EVALUATION AND MANAGEMENT OF RISKS IN PROJECTS CO-FINANCED BY EUROPEAN FUNDS


My PhD thesis focus on “Evaluation and management of risks in projects co-financed by European

Funds”, dealing with the problems related to “risk” (definitions, evaluation/assessment, management) in

projects in order to use own experience and put it in a structured way using scientific and research tools.

From 2016 I manage the reporting, monitoring and quality assurance in a research project for

cardiovascular aortic aneurism, co-financed by EU too, by European Regional Development Fund (ERDF).


As Stanford Encyclopedia of Philosophy, „Risk” (First published Tue Mar 13, 2007; substantive revision

Thu Aug 11, 2011), http://plato.stanford.edu/entries/risk/#Bib introduces five “risk” definitions, the

perception of risk imply a high degree of subjective perception and is quite difficult tu asses and rank it to a

unique scale.

Therefore, a rich literature (scientific or less academic) deals with different definitions and usage of

the term “risk”, “risks” and propose some procedures and tools to make this process independent of the

researcher perceptions (Tversky, A. and D. Kahneman, 1986, “Rational Choice and the Framing of

Decisions”, Journal of Business, Thompson, P. B., 1985, “Risking or Being Willing: Hamlet and the DC-10”,

Journal of Value Inquiry, Shrader-Frechette, K., 1991, Risk and Rationality. Philosophical Foundations for

Populist Reforms, Berkeley: University of California Press, Sjöberg, L., 2004, “The Methodology of Risk

Perception Research”, Quality and Quantity).

Of course, there are some areas where the “risk” is very important and got a high importance in the

public and academic perception e.g. nuclear reactor safety, technological developments, buildings,

economic and finance etc.

For example: , 2004, “Weighing Risks and Benefits”, Topoi, , 2006, “Economic (ir)rationality in risk

analysis”, Economics and Philosophy, MacLean, D. (ed.), 1986, Values at Risk (Maryland Studies in Public

Philosophy), Totowa, NJ: Rowman and Littlefield, Machina, M.D. and M. Rothschild, 1987, “Risk”, in J.

Eatwell, M. Milgate, and P. Newman (eds.),The New Palgrave: A Dictionary of Economic Theory and

Doctrine (Volume 4), London and New York: Macmillan and Stockton, Rothschild, M. and J. Stiglitz, 1970,

“Increasing risk: 1. A definition”, Journal of Economic Theory have developed the concepts related to risks

in the economic and finance areas.

http://plato.stanford.edu/entries/risk/#Bib

29

Of course, risk is relevant to building and engineering areas, as Möller, N. and S.O. Hansson, 2008,

“Principles of engineering safety: risk and uncertainty reduction”, Reliability Engineering and System Safety

and Clausen J., et al., 2006, “Generalizing the Safety Factor Approach”, Reliability Engineering and

System Safety, have developed the concepts related to management of the risks.

The theory of risks and mathematical approaches of risk assessment, evaluation and management

were developed by Cranor C.F., 1997, “The Normative Nature of Risk Assessment: Features and

Possibilities”, Risk: Health, Safety & Environment and Gigerenzer, G., 2002, Calculated Risks: How to

Know When Numbers Deceive You, New York: Simon and Schuster.

At the project levels some researchers dealt with risks and the management of risks, as for example

Madadi M, Iranmanesh H, 2012, „A management oriented approach to reduce a project duration and its

risk (variability)”, European Journal of Operational Research.

Taking into account that the scientific literature around the “risk” are so various and so many different

approaches, there were developed some standardization (ISO standard 31000:2009-Risk management --

Principles and guidelines, http://www.iso.org/iso/catalogue_detail?csnumber=43170;). At the project co-

financed by EU there are EC Regulations on ERDF, ESF and EFSI funds which guide the risk definitions,

assessment/evaluation and management at this level.


Application of representation models, modelling methods, solving related issues, using techniques

developed in economic (banking & financial sector) will increase the scientific relevance of the research for

academic but also economic environment.

Taking into account that, in the current programming period of the EU budgetary cycle (2014-2020),

EFSI but also EIFS, H2020 and other EU funds try covering a larger amounts of innovative SMEs financing,

the national and European relevant managing authorities could use research results to improve their

evaluation and management of the risks related to projects (“risk assessment” and “scoring”).

The use of ITC related tools for visualization and for using models and methods for evaluation and

management of risks will facilitate their usage in the academic and economic environment in order to

evaluate and self-evaluate the preparation, implementation and sustainability risks related to projects co-

financed by EU funds.

Methodology

Methodology involves an incremental approach through the identification and development of data

and information from the scientific, institutional, legal, procedural sources, their systematization and

focusing on the specific of the thesis.

In the first stage concepts related to the proposed research goals will be investigated. Keywords:

strategy, program, projects, risks, identification, analysis, inventorying, identification of relationships,

statistic and probabilistic associations, statistics from the projects’ area, quantitative and qualitative

analysis;

In the second stage, for the risks categories identified at the first stage, methods for conceptual

systematization and qualitative and quantitative analysis will be defined; these should involve functional,

relational and conceptual diagrams and association of the risks parameters with mathematics variables,

with probabilistic and statistic features;

The third stage involves inferring and transferring of knowledges from the mathematics field of

economic risk modeling (financial, banking etc) in the field of risks related to EU type programs and

projects;

http://www.iso.org/iso/catalogue_detail?csnumber=43170

30

The fourth stage will focus on developing and applying mathematic modelling of the risks and on

identification of the benefits of these in the management of the risks related to projects co-financed by EU;

The fifth stage will identify the options to embed the knowledges from/into the various ITC related

applications for visualization and usage of the research results by user-friendly and simple interfaces and

apps for the potential users- projects’ teams, programs management authorities;

Finally the methods, tools and knowledges from the 4th and 5th stages will be applied to projects co-

financed by EFSI 2014-2020 and beyond 2020 programming cycle;

Expected results

RO #1: identification and systematization of the risks related concepts and of the procedures for

risk management in the projects and programs co-financed be EU in 2007-2013 and 2014-2020

programming period (Structural Funds (SF) and European Funds and Structural Instruments (EFSI));

RO #2: Qualitative and quantitative analysis of these risks and procedures, using informational

resources (manuals and package of procedures, evaluation & implementations reports, scientific

bibliography, legal and procedural resources);

RO #3: Identification of mathematics models that could be used in evaluation and management of

the risks from the projects, focusing on those co-financed by EFSI 2014-2020 and beyond/after 2020;

RO #4: Development and application of the mathematic modelling;

RO #5: Identification and usage of options for modeling and management of the risks related to

projects (“risk assessment” and “risk management”) using ITC tools;

RO #6: Case studies using the previous obtained results.

31

Alexandru Maxim Alexandru Ioan Cuza University of Iasi, Romania

[email protected]

Alexandru Maxim is a research assistant at the CERNESIM Environmental Researcher of the Alexandru

Ioan Cuza University of Iaşi, Romania. He has a PhD in Marketing focused on the energy sector and has

previously worked for GE Energy Europe. His current research interests include: sustainable development,

EU policies and energy markets.

ATTITUDES OF HOUSEHOLD ELECTRICITY CONSUMERS REGARDING THE DEVELOPMENT OF THE

RENEWABLE ENERGY SECTOR IN ROMANIA


Assessing the willingness to pay (WTP) of Romanian household consumers of electricity for renewable

energy – this activity seeks to expand the exploratory research that I performed as a doctoral student,

turning it into a descriptive study, which should provide several additional key insights into the motivational

factors of ‘green’ energy customers.


The current research is being undertaken in order to address two societal and academic issues:

sustainability and ecological enthusiasm. Regarding ‘sustainability’, it is estimated that the rapid growth

rate of industry and consumer demand at the global level will have an increasingly severe negative effect

on the entire planet. While feasible technical solutions to this problem exist today, their large scale

implementation would entail significant costs. Enduring uncertainty regarding the evolution of some of the

World’s largest economies and persistently lower prices of fossil fuels are discouraging investment in a

radical reform of the global energy sector. In addition, any major change in consumer behavior would be

difficult to accept at a societal level in the absence of benefits that are more tangible than ‘a reduced rate

of environmental degradation’. With regard to ‘ecological enthusiasm’, throughout the last decade, a

strong trend of support for the production of energy from renewable sources could be observed in

academia and in mass-media. However, in many cases, a lot of emphasis is put on underlining the positive

effects of producing electricity from renewable sources (ERS), while the disadvantages specific to ERS are

minimized or even omitted altogether (Menegaki, 2012). Previous research shows that the level of income

significantly affects pro-environmental attitudes (Sundt & Rehdanz, 2015) and given the considerably lower

income in Romania compared to the EU average, it would be interesting to investigate the willingness of

Romanian consumers to make financial sacrifices in order to benefit from the advantages specific to ERS

production and to identify factors that may positively influence this behavior.

These issues are assessed in the context of complete elimination of regulated electricity prices for

households (coming into force at the end of 2017) on the Romanian retail market. Until now, the vast

majority of entities that have chosen to switch away from their default electricity supplier have been

enterprises with high energy needs, and not household consumers. However, as the situation gradually

begins to change, more intense competition among electricity suppliers is already being observed (Lefter,

32

2015). In this new context, it will be necessary to construct marketing messages and service offerings that

are in line with the preferences of consumers, for whom green energy can play a decisive role in choosing a

new supplier, as confirmed by Hanimann et al. (2015) in the case of Sweden.


An important innovative element included in the research will be the integration of two choice

experiments into a single discrete choice experiment (DCE) scale, which will make it possible to generate

two choice models with different temporal perspectives (short term and long term preferences). Current

research regarding WTP does not include such comparative approaches.

In addition, the use of this composite scale will make it possible to determine the WTP estimation

error applicable to a study that would not include the “status quo” response option (thus forcing

respondents to overestimate the value that they place on certain benefits associated with energy from

renewable sources). If a significant estimation error is identified, this will constitute an important argument

for all future DCE based research to include the status quo response option in their experimental design for

better accuracy.

By determining WTP through a conditional multinomial logistic regression model based on the data

collected through the choice experiment, the current study will be in line with the state of the art research,

given that this methodology is being used with increasing frequency in similar papers from the fields of

medicine, ecology, marketing and energy published globally.

Methodology

The research will be constructed around the discrete choice experiment method. This involves a

simulation of a purchasing situation, in which the respondent is offered the possibility to acquire a product

or service from a set of offerings (e.g. Off1 and Off2) defined by a common set of attributes (e.g. A1, A2, A3)

and a dimension of cost (price). The potential values of attributes A1 – A3, as well as the price, need to be

established beforehand and included in an experimental design, which will define various sets of Off1 and

Off2 offerings. The respondent then has to state which of the offers he/she would choose to buy, given

their attributes and prices. Generally, it is recommended to include a “status quo” or “non-purchase”

response option, which would be the equivalent of the customer walking out of the store, not being

satisfied with either of the two offerings. The main advantage of DCE, as opposed to the limitations of other

valuation methods (Oerlemans et al. 2016), is that it allows researchers to directly calculate WTP for any

attribute in a manner that is compatible with the concept of economic welfare and that meets the

requirements of demand theory. In addition, through the use of compensating variation, the WTP for any

combination of attribute levels can be determined.

Expected results

Aside from meeting the main objective of quantifying WTP for green energy and identifying factors

that influence WTP – prospectively providing useful insights into the market for governmental authorities

and electricity suppliers – the research also has the potential to contribute to the field in several ways.

Firstly, it should offer supportive arguments for the use of a marketing approach in the establishment of

renewable energy support mechanisms at the national level – the encouragement of investments based on

preferences expressed by taxpaying consumers. It should also help increase the popularity of DCE studies

among Romanian researchers. It is also expected to provide arguments for an increase in the share of DCE

studies that include a “status quo” response option on their experimental design.

33

Akhatjon Nasullaev University of Carlo Cattaneo, Castellanza

[email protected]

Akhatjon Nasullaev is a PhD student at the University of Carlo Cattaneo, Castellanza (Italy). His

research interests are in Innovation management, Technology management and Open Innovation. He holds

a Master’s degree in Cooperation and Development from University of Pavia (Italy).

TECHNOLOGY INTELLIGENCE IN SMALL AND MEDIUM-SIZED ENTERPRISES –

CROSS-COUNTRY ANALYSIS

Research topic and Objectives

The study aims to develop efficient and effective model of Technology Intelligence that ensures Small

and Medium Enterprises (SMEs) to exploit sources, methods and tools really coherent with their

competences and resources available and with their specific information need.


Nowadays, under the paradigm of Open Innovation (OI) organizations are compelled to take

advantage of changing environment by exploiting technological opportunities and ideas, potential partners

and customers, competences which support efforts to secure competitive advantage. A new imperative set

by OI requiring from the firms a great dedication to the development of Technology Intelligence (TI) which

is believed to be a pledge of a successful business (Mortara et al., 2008). TI fuels OI “with systematic

capture and delivery of information about threats and opportunities arising from new developments in

science and technology” (Kerr et al., 2006). In this regard, TI plays a key role in nurturing firms’ innovation

capacity with more systematic observation of technological trends (Lichtenthaler, 2004). Although large

companies are still playing a prominent role in innovation, smaller firms are becoming increasingly

important for industry R&D and thus for economic growth (Van de Vrande et al., 2009). Having full

knowledge of this situation, SMEs understand quite well that, to be in line with OI is the best way to survive

in current harsh market environment. OI may serve as a promising remedy to overcome challenges, to

develop new sources of income, and to reach more profitable positions in the competitive landscape

(Gassmann et al., 2010; Vanhaverbeke et al., 2012). In order to turn all opportunities deriving from OI to

account SMEs need TI. Considering the fact that, SMEs have to cope with constraints of size and limited

resources in comparison with their larger counterparts, TI can be expensive, time and competence

requiring process for them of what they may not possess. According to Savioz (2006), aside from a less

favorable resource basis, SMEs are different from large organizations in many aspects: they are less

diversified, geographically limited, less well known, etc. Nijssen et al. (2001) have argued that, being able to

find potential technologies and partners have been easier for large firms, simply because in small

companies managers tend to be occupied with day-to-day business. Therefore, SMEs face a tension: they

need to conduct TI in order to exploit OI, which potentially allows them to overcome their limits in terms of

competences and resources, but they lack the competences and resources for conducting the TI process

(Manzini et al., 2016).

34

Innovative elements of the research

To our best of knowledge, no model has been developed for implementation of TI in SMEs so far.

Particularly, there is a lack of investigations in the context of developing countries. Furthermore, there is

abundant room for further progress in determining general overview of the implementation of the TI which

would serve as a guideline for managers. This research aims to remedy all of these gaps.

Methodology

The study will apply a series of qualitative and quantitative methods which is based on primary data

coming from survey and case-studies, as well as secondary data, collected through reviewing scientific

journals, publications, books etc. Since there is very little specific, precise and detailed data set on research

topic, the author will try to conduct empirical, comparative analysis. The survey will be conducted by

sending questionnaires to SMEs located in Uzbekistan and Estonia (catching-up economies) as well as in UK

and Italy (developed countries) for comparison.

Expected results

Since the research on Technology Intelligence in SMEs is still in embryonic phase, this study will

contribute to the literature by bringing some evidences from catching-up economies’ context. This work

will allow companies to understand the process underlying the phenomenon of TI more precisely. These

insights can be useful for managers of the small firms in providing guidelines on implementation and

operationalization of TI model which is congruent with their type of business.

References

Gassmann O., Enkel E. and Chesbrough H. (2010). ‘The future of Open Innovation’. R&D Management-

June.

Kerr, C.I.I., Mortara, L., Phaal, R., Probert, D.R. (2006). ‘A conceptual model for technology

intelligence’, International Journal of Technology Intelligence and Planning, Vol. 2, No 1, 2006, pp. 73-93.

Lichtenthaler, E. (2004). ‘Technological change and the technology intelligence process: A case study’.

Journal of Engineering and Technology Management - JET-M, 21 (4), 331-348.

Manzini, R., Lazzarotti, V., Motta, M. and Fossati, S. (2016). ‘Quick and dirty Technology Intelligence

for SMEs, R&D management Conference’, July 3-6.

Mortara, K., Kerr, C.I.V., Phaal, R. and Probert, D. (2008). ‘Technology intelligence practice in UK

technology-based companies, International Journal of Technology Management’, Vol. 48 No. 1, pp. 115-

135.

Nijssen, E.J., Van Reekum, R. and Hulshoff, H.E. (2001). ‘Gathering and using information for the

selection of technology partners. Technological Forecasting and Social Change’, 67 (2/3), 221-237.

Savioz, P. (2006). ‘Technology intelligence systems: practices and models for large, medium-sized and

start-up companies’, International Journal of Technology Intelligence and Planning, Vol. 2 No. 4, pp. 360-

379.

Van de Vrande, V., De Jong, J. P., Vanhaverbeke, W., & De Rochemont, M. (2009). ‘Open innovation in

SMEs: Trends, motives and management challenges’. Technovation, 29(6), 423-437.

Vanhaverbeke W. (2012). ‘Open innovation in SMEs: How can small companies and start-ups benefit

from open innovation strategies?’ Research report/Flanders.

35

Annalisa Negrelli University of Milan, Italy Department of Public Law

[email protected]

Annalisa Negrelli holds a Ph.D. in Administrative Law from the University of Milan. She is an

administrative lawyer and from July 2015 she holds a research fellowship in Administrative Law from the

University of Milan, concerning the public procurements and organizational models of the Public

Administration. She is author of several peer-reviewed scientific publications and a book, edited in 2016,

about the influence of the Four Freedoms on the Member States juridical systems, particularly on the

perspective of liberalization/privatization of the internal markets.

AGGREGATIONS OF PUBLIC CONTRACTS AND CENTRALIZATION OF PURCHASING OF PUBLIC

ADMINISTRATIONS IN THE ITALIAN, EUROPEAN, AND GLOBAL SYSTEM


In my research I plan to investigate some issues concerning the administrative activities and the

organization of public administration. In particular, the study aims to examine an instrument widespread in

the Member States' system and also in Italy, nowadays of particular interest: the aggregation of public

contracts and the centralization of purchases of goods and services by the public administration. The

perspective of the analysis will be enhanced by the comparison of domestic law with the European and

American system in order to highlight the differences and similarities with the Italian system.


The “central purchasing body” CPB (in Italy called “centrale di committenza”) is defined by the

European and national law as an instrument to manage procurement on behalf of other contracting

authorities or contracting entities.

In Italy, the phenomenon of centralization of purchasing has spread even before the European public

procurement Directive 18/2004 (“CONSIP spa”, in 1997). The reduction program promoted by the “Renzi

Government”, which in 2014 sought to reduce from 32,000 to only 35 contracting authorities banning of

goods and services for large amounts races in Italy, led to the obligation for municipalities to resort to a

central purchasing for the purchase of goods, services and works.

ALESIO M., Le centrali di committenza obbligatorie: lo scenario teorico e le delicate implicazioni

pratiche, in Comuni d'Italia, 2015 fasc. 1, pp. 63 – 71;

CARANTA R., Le centrali di committenza, in Trattato dei contratti pubblici, GF. Ferrari, G. Morbidelli, sez.

IV, p. 607 ss.;

CARUSO G.M., La collaborazione contrattuale fra pubbliche amministrazioni. Unità e frammentazione

della sfera pubblica fra logica del mercato e obiettivi di contenimento della spesa, in Riv. it. dir. pubbl.com.,

2015, p. 775 ss.;

CAVALLO PERIN R., RACCA G., La concorrenza nell'esecuzione dei contratti pubblici, in Diritto

amministrativo, 2010 fasc. 2, pp. 325 – 354;

36

CERBO P., Appalti stipulati dalle centrali di committenza: questioni processuali e sostanziali, in

Giurisprudenza italiana, 2015 fasc. 2, pp. 448 – 453;

CLARICH M., Rapporti tra appalti pubblici e concorrenza nel diritto europeo e nazionale, in

Riv.it.dir.pubbl.com., p. 79;

COMBA, M.E., Aggregazioni di contratti e centrali di committenza: la disciplina europea ed il modello

italiano, in Urbanistica e appalti, 2016 fasc. 10, pp. 1053 – 1064;

CUMIN G., Nuove perplessità sulla capacità di agire delle PPAA in ambito negoziale?, in Urb. e app.,

2016, n. 11, p. 1191 ss.;

DI LASCIO F., La centralizzazione degli appalti, la "spending review" e l'autonomia organizzativa locale,

in Giornale di diritto amministrativo, 2014 fasc. 2, pp. 205 – 219;

FIDONE G., MATALUNI F., L'aggregazione dei soggetti aggiudicatari di contratti pubblici fra ragioni di

integrità, specializzazione e riduzione della spesa, in Il Foro Amministrativo, 2014 fasc. 11, pp. 2995 – 3029;

FIORENTINO L., Le centrali di committenza e la qualificazione delle stazioni appaltanti, in Giornale di

diritto amministrativo, 2016 fasc. 4, pp. 443 – 451;

FRACCHIA F., I contratti pubblici come strumento di accentramento, in Riv. it. dir. pubbl. comunit., 2015,

p. 1529;

LAMBERTI, C., La qualificazione delle stazioni appaltanti, in Urbanistica e appalti, 2016 fasc. 12, pp. 1293

– 1303;

MACCHIA M., Il regime delle spese di committenza delle centrali di funzionamento, in GiustAmm.it, 2016

fasc. 3, pp. 6 ss.;

MATTARELLA B.G., La centralizzazione delle committenze, in Giorn. dir. amm., 2016, n. 5, p. 613 ss.;

PANETTA C., La qualificazione delle stazioni appaltanti, in GiustAmm.it, 2016 fasc. 7, pp. 11 ss.;

PIGNATTI M., L’effettività della tutela nei contratti pubblici e le strategie di aggregazione della domanda

pubblica, in Foro amm., 2016, p. 567 ss.;

RACCA G., La professionalità nei contratti pubblici della sanità: centrali di committenza e accordi

quadro, in Il Foro Amministrativo C.d.S., 2010 fasc. 7-8, pp. 1727 – 1746;


The benefits that appear to derive from centralization of public purchasing are, however, opposed by

certain limits that require critical review of the use of centralization, if not with the forms and modalities

envisaged by the existing system. On the one hand, in fact, the economic advantages that derive from

economies of scale generally occur only in cases where there is total homogenization of products and

services (which is difficult to replicate in concrete cases); on the other hand, the aggregation of contracts

may paradoxically lead to a reduction in competition, with particular reference to the participation of SMEs.

These first considerations lead to investigating the juridical foundation and origin of the institute, the

juridical nature of the CPB and, more generally, of the aggregators, the issue of the juridical relationship

between the contracting authority (contracting authority), the CPB (commissionary), as well as the

applicable arrangements in the contract execution phase and the distribution of liability between

contracting and commissionary authorities.

Methodology

The most recent publications, dedicated to the study of the phenomenon of the aggregation of public

contracts in the Italian system, look at economic centralization (S. USAI, The Single Procurement Unit.

Guidance on the centralization of procurement procedures for goods, Services and work after the Stability

37

Law 2016, Maggioli, 2016), or in any case present a practical cut (G. CARBONI, Consip and the Customer

Service Centers, EAI, 2016, S. VENTURES, Purchases of Goods and Services Through the unique customer

commands, Practical Guide to Newly Managed Associated Contracts Management, EDK, 2014, A.

GIARDETTI, The Consip Evolution Model and Functions of the National Commitment Center, KEY, 2015). The

administrative doctrine has covered the theme in different perspectives. There is, however, no

monographic study that analyzes the phenomenon in a systematic dimension and that, having carried out a

review of the legislation and practices of the last twenty years in Italy and Europe, has highlighted the

problematic profiles that characterize the centralization and aggregation system of Public contracts, as

governed by domestic law, and which have so far prevented wider dissemination.

Expected results

The spread of this phenomenon seems to result in significant benefits for public trading, in terms of

specialization of the contracting authorities, as well as in terms of specialization of centralized bargaining

employees; support for strategic and innovative contracts of products and services and to European (i.e.

cross-border) procurements; reduction of costs and competition, and more in general reduction of public

expenditure as a result of economies of scale that these aggregation tools are in favour.

Benefits that could promote high-quality services to the European citizens; increase firms’

productivity; pursuit of multiple public policies, such as innovation development; environmental protection;

pursuit of social objectives type (gender equality, protection of workers). But also this phenomenon carries

out some problematic aspects of which it is appropriate to account: possible reduction of competition, with

obstacles to the participation of SMEs and reduce the autonomy of local authorities who see limited their

ability to act and contract by the Regional and National “central purchasing bodies”.

38

Rogelio Pesqueira Sánchez University of La Coruña

[email protected]

I am Rogelio Pesqueira Sánchez, vocational teacher since 2004 and PHD student in economics at

Coruña University since 2015. I am author of several books of accountancy and I am an evaluator of

European educational projects. My PHD supervisors are Andrés Faíña Medín, Jean Monnet Professor of

European Industrial Economics and Cristina Calvo-Porral, Associate Professor.

ATTITUDES AND BEHAVIOUR OF CONSUMERS TO NEW INFORMATION AND COMMUNICATION

TECHNOLOGIES


My research interests are technology, knowledge, innovation, economy and public sector. Actually the

objectives of my research are millennials and now I’m working on three papers in order to understand the

consumption of digital contents of this sector of population.


My dissertation is about millennials; millennials have been studied previously Oblinger (2003) or

Prensky (2001) and are considered an important topic of research. However this is a generation so I used

Howe (2006, April), Pew Research Center (2014) and Strauss and Howe (2000) mainly to put in context this

generation with the previous ones. Also in my dissertation flow theory is fundamental because I am

studying the relation of millennials with technology so Csikszentmihalyi it's a pillar of my dissertation. The

type of statistical analysis that I do is a SEM (Structural Equation Model) so I use papers like Anderson and

Gerbing (1988) or Fornell and Larcker (1981) to understand the model and Stata (Data Analysis and

Statistical Software) instructions to be able to do the job.

Previous literatures and other important ones of reference for my work are:

Akande, B. O. (2008). ‘The IPOD generation’. Diverse: Issues in Higher Education, 25(15), 20.

Anderson, J. C. and Gerbing, D. W. (1988), ‘Structural equation modeling in practice: A review and

recommended two step approach’, Psychological Bulletin, Vol. 103 No.3, pp. 411-423.

Bennett, S., Maton, K., & Kervin, L. (2008). ‘The ‘digital natives’ debate: A critical review of the

evidence’. British journal of educational technology, 39(5), 775-786.

Csikszentmihalyi, M. (1990), Flow: The psychology of optimal experience, Harper& Row: New York, NY.

Davis, F.D. (1989), ‘Perceived usefulness, perceived ease of use, and user acceptance of information

technology’, MIS Quarterly, 13, 319-340.

Fields, B. (2008). ‘Marketing to Generation Y: what you can't afford not to know’. Idea Marketers, 9.

Fornell, C., and Larcker, D.F. (1981), ‘Evaluating structural equation models with unobservable variables

and measurement error’, Journal of Marketing Research, 18 (1), 39-50.

https://www.google.es/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjEvfyLleXTAhVIQBoKHf75A8oQFggmMAA&url=http%3A%2F%2Fwww.stata.com%2F&usg=AFQjCNGdEaLB8rvlDtM37dSr-qsH0SVYYQ

https://www.google.es/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwjEvfyLleXTAhVIQBoKHf75A8oQFggmMAA&url=http%3A%2F%2Fwww.stata.com%2F&usg=AFQjCNGdEaLB8rvlDtM37dSr-qsH0SVYYQ

39

Kubiatko, M., Halakova, Z., Nagy, T., & Nagyova, S. (2015). THE USING OF AND ATTITUDES TOWARD

INTERNET AND INFORMATION AND COMMUNICATION TECHNOLOGIES IN DIFFERENT AGE GROUPS. Journal

of Current Issues in Media & Telecommunications, 7(3).

Moon, J.W., and Kim, Y.G. (2001), ‘Extending the TAM for a world-wide-web context’, Information &

Management, 38 (4), 217-230.

Morton, L. P. (2002). ‘Targeting generation Y’. Public Relations Quarterly, 47(2), 46.

Noble, S. M., Haytko, D. L., & Phillips, J. (2009). ‘What drives college-age Generation Y consumers?’.

Journal of business research, 62(6), 617-628.

Oblinger, D. (2003). ‘Boomers gen-xers millennials’. EDUCAUSE review, 500(4), 37-47

Howe, N. (2006, April). ‘A generation to define a century’. In Association for Supervision and

Curriculum Development Annual Conference, Worldwide Issues, Chicago. Retrieved June (Vol. 29, p. 2006).

Pendergast, D. (2010). ‘Getting to know the Y generation’. Tourism and generation Y, 1, 1-15.

Pew Research Center. (2014). ‘Comparing millennials to other generations’. Retrieved March 29, 2017,

from http://www.pewsocialtrends.org/2015/03/19/comparing-millennials-to-other-generations/

Prensky, M. (2001). ‘Digital natives, digital immigrants part 1’. On the horizon, 9(5), 1-6

Strauss, W., & Howe, N. (2000). ‘Millennials rising: The next great generation’. New York: Vintage.

Tapscott, D. (1998). ‘The rise of the Net generation: Growing up digital’.


The innovation part of my work is to explore and study the millennials not as a homogeneous group

but as a group composed of different clusters and analyze relations between engagement, satisfaction,

willingness to pay, etc. in the field of technology in this different clusters.

I found five groups with different relation with technology and this is important because gender or

other demographic variables do not mark differences between millennials.

There are a lot of papers studying millennials but other researchers consider millennials as an

homogeneous group only taking into account some differences depending on the nationality in most cases.

My research will allow further developments that deepen the study of the millennials.

Methodology

First of all I look at the literature on the subject and I study it, then I did a survey with a Likert scale

related to the use of technology and consumption of digital contents in millennials. Once this was done I

used cluster methodology and SEM methodology (structural equations) to analyze the survey results and

extract conclusions (I used Stata mainly to work with data) and now I’m writing three papers with the

results obtained and I am selecting the possible JCR journal to publish. I expect to end the work in January

2017.

The theoretical foundations of my work are different models like TAM (Technology Acceptance

Model), cluster methodology and SEM (Structural Equation Modelling).

Expected results

I expected to help to understand better the behaviour of millennials and the differences of this

generation and others related with technology and digital contents. I found different clusters in the

millennials group and different relations between variables like engagement or satisfaction with the SEM

methodology.

http://www.pewsocialtrends.org/2015/03/19/comparing-millennials-to-other-generations/

40

Todora Rogelja University of Padova

[email protected]

I am Todora Rogelja, a Ph.D. candidate at the University of Padua, Department of Land, Environment,

Agriculture, and Forestry. I hold a M.Sc. in Forest Policy and Economics. I have working experience in the

research sector in the Balkan region with a special focus on EU projects development.

GOVERNANCE CAPACITY OF PUBLIC ACTORS FOR SOCIAL INNOVATION:

CASE STUDIES IN THE FOREST-BASED SECTOR


My current research aim is to explore governance capacity of public actors for supporting/hindering

social innovation in the forest-based sector. Governance capacity is an ability of public actors to engage in

social relationships with civil society and market to collectively solve problems.


The main assumption of the research is that, if the public forest-based sector is hierarchically

organized and enact “command and control” regulations, it is probable that governance capacity for social

innovation is low, as hierarchical structure constraints creation of new relationships among involved actors

(Howlett and Ramesh, 2016; Knill and Lehmkuhl, 2002; Rhodes, 1998, 1996). Until now, the prevailing

opinion was that the institutional inertia prevents public sector from generating social innovations (Nicholls

et al., 2015, p. 148). Contrary, social innovation in the public sector could improve the quality of public

services (Sørensen and Torfing, 2012), and enhance the problem-solving capacity of governmental

organizations.

In the last decade, forest-based markets are already fundamentally changed. Due to changing and

emerging markets, and increased pressures of contemporary society, the forest-based sector faces many

profound structural changes. As noted by (UNECE/FAO, 2010, p.10) “Forest sector policy makers must

grapple with complex, imperfectly understood challenges to meet these demands when designing forest

policies. These policies will have to address challenges such as climate change, protection of biodiversity,

space for recreation and leisure, and energy and raw material needs”. To adapt to these challenges, the

European forest-based sector entered ‘a state of creative destruction’, becoming more complex and

interlinked.

Although the forest-based sector is becoming more complex and interlinked, it seems that in some

European countries, forest-based sector administration evades organizational innovations. Those forest

sectors are dominated by public actors, and decisions are predominantly taken in a top-down manner. But,

this kind of “command and control” regulation and organization of forest-based sector impedes innovation

in provisioning forests products and services of general interest (Howlett et al., 2015; Howlett and Ramesh,

2016; Knill and Lehmkuhl, 2002; Winkel and Sotirov, 2011). Therefore, to respond to rising demands and

pressures, public forest actors need to cooperate with other societal actors in increasing the flow of new

knowledge. This flow of new knowledge could be ‘a room’ for social innovation, as a mean for the

transformation of relationships among public forest-based sector, and other parts of society. This

41

transformation could lead to increase of the quality, accessibility, and affordability of forest-based products

and services (i.e. energy deficit, climate change, loss of biodiversity). To understand how and to what

extent public forest-based sector can contribute to social innovation, we need to know more about its

ability for social innovation, i.e. governance capacity.


Research on governance capacity of public actors in the forest-based sector is scarce. My research

aims to introduce new framework on governance capacity which will synthesize managerial and

organizational approaches with institutionalist perspectives. Innovativeness of such framework will be

reflected by introducing specificities of the forest-based sector and social innovation into the framework

itself. As forest-based sector provides services of general interests, it has predispositions for ’hosting’ social

innovation initiatives. Governance capacity framework will be specially designed for analyzing and assessing

the most crucial elements for supporting/hindering social innovation initiatives in the forest-based sector,

thus providing an innovative analytical tool.

Methodology

Research on governance capacity of public actors in the forest-based sector is mostly based on of GCF

(Governance Capacity Framework) (Arts and Goverde, 2006). My research will identify key elements of

governance capacity of the public actors for social innovation in the forest-based sector. This will be done

by synthesizing several governance capacity frameworks thus, combining institutionalist and rationalist

approaches. To achieve a synthesis of several ontologically and epistemologically different frameworks, I

will use configurative, critical-interpretative literature review (CEE, 2013; Dixon-Woods et al., 2006; Gough

et al., 2012). Based on identified elements, I will develop a framework for analyzing and assessing

governance capacity of public actors for social innovation in the forest-based sector. This framework will be

organized according to 5 governance capacities (delivery, coordination, regulatory, analytical, and

management capacity) (Lodge and Wegrich, 2014) focusing on the key elements for social innovation

initiatives. That framework will be empirically tested in several case studies (Yin, 2009). Within case study,

the framework will be tested using triangulation method:

1. Delphi method with key experts.

2. Policy documents analysis

3. Network analysis

Expected results

The main result of the research will be a governance capacity framework on a theoretical level, and

empirical evidence from testing the framework in the case studies. It could be used by policy maker for a

self-evaluation or participatory assessment. In addition, it could be used as a research framework for

analyzing some or all elements of the governance capacity.

As this kind of framework for analyzing governance capacity for social innovation does not exist yet,

results should also contribute to the theoretical understanding of the capacity of public sector for social

innovation initiatives.

References

Arts, B., Goverde, H., 2006. ‘Arrangements: A Reflexive Approach The Governance Capacity of (new)

Policy Chapter’, in: Institutional Dynamics in Environmental Governance. pp. 69–93.

42

Eva Sørensen, Jacob Torfing, 2012. ‘Collaborative Innovation in the Public Sector’. Innova. J. Public

Sect. Innova. J. 17.

Howlett, M., Ramesh, M., 2016. ‘Achilles’ heels of governance: Critical capacity deficits and their role

in governance failures’. Regul. Gov. 10, 301–313. doi:10.1111/rego.12091

Howlett, M., Ramesh, M., Wu, X., 2015. ‘Understanding the persistence of policy failures: The role of

politics, governance, and uncertainty’. PUBLIC POLICY Adm. 30, 209–220. doi:10.1177/0952076715593139

Knill, C., Lehmkuhl, D., 2002. ‘Private actors and the state: Internationalization and changing patterns

of governance’. GOVERNANCE-AN Int. J. POLICY Adm. 15, 41–63. doi:10.1111/1468-0491.00179

Lodge, M., Wegrich, K., 2014. The Problem-Solving Capacity of the Modern State: Governance

Challenges and Administrative Capacities Chapter Abstracts. Oxford University Press.

Rhodes, R.A.W., 1998. ‘Understanding Governance: Policy Networks, Governance, Reflexivity, and

Accountability’. Public Adm. 76, 408–409. doi:10.1111/1467-9299.00107

Rhodes, R.A.W., 1996. ‘The New Governance - Governing Without Government.’ Polit. Stud. 44, 652–

667. doi:10.1111/j.1467-9248.1996.tb01747.x

UNECE/FAO, 2010. ‘The European Forest Sector Outlook Study II’. 2010-2030 (No. Study Paper No. 28).

Geneva.

Winkel, G., Sotirov, M., 2011. ‘An obituary for national forest programmes? Analyzing and learning

from the strategic use of “new modes of governance” in Germany and Bulgaria’. For. Policy Econ. 13, 143–

154. doi:10.1016/j.forpol.2010.06.005

Yin, R.K., 2009. Case Study Research Design and Methods, 4th ed. Sage Publications Inc.

43

Anastasia Roukouni Aristotle University of Thessaloniki, Greece

[email protected]

My name is Anastasia Roukouni and I am a Dipl. Surveying Engineer (Aristotle University of

Thessaloniki, Greece) with an MSc in Transport from Imperial College London & UCL. In October 2016, I

successfully defended my PhD Thesis in the field of Transport Economics titled “Investigation of innovative

financing schemes for transportation projects”, which was funded by a Fellowship of Excellence (Siemens

Program 2012-16) awarded by the State Scholarships Foundation (IKY). From November 2016, I started

working as a Research associate at Transport Systems Research Group of Civil Engineering Department of

the Aristotle University of Thessaloniki (TSRG/AUTh). I am currently working in the context of CIPTEC

(Collective Innovation for Public Transport in European Cities), an EU Horizon 2020 project, addressing the

challenge for “Smart, Green and Integrated Transport”.

INNOVATION IN FINANCING LOCAL PUBLIC TRANSPORT AND THE ROLE OF STAKEHOLDERS AND

CITIZENS IN THE EVALUATION PROCESS


The research for my PhD thesis focused on innovative financing mechanisms for urban transportation

infrastructure, based on the increased land value which is created by enhanced accessibility in an area

(Value Capture Finance - VCF). The dissertation's objective was to develop a VCF evaluation framework

based on multi-criteria decision analysis, to provide valuable insight into the extremely critical and sensitive

issue of transportation financing from both a stakeholders' and citizens' perspective.


Between transportation systems and land market there is unquestionable interaction, which is

interpreted through the concept of accessibility i.e. the ability to access activities and goods that are in

demand. Rich literature on the relationship between transport systems and land value exists worldwide;

the majority of studies have shown that land value increases as accessibility increases due to new or

improved transportation infrastructure, ceteris paribus. Although initially the term value capture referred

to pure “land value capture”, over the years it has been given a broader meaning, including today all the

strategies which aim at financing through location – based value.

Value capture finance (VCF) mechanisms are increasingly used for some of the most ambitious and

large-scale transportation projects recently completed or currently under construction, such as Crossrail in

London. The decision-making process related to transportation planning issues -and particularly

transportation policy issues- is intrinsically complex due to the fact that, in addition to the large number of

criteria (both quantitative and qualitative) involved, there are usually many alternative scenarios to be

evaluated, in order to choose the optimal solution for each specific case. Moreover, a large number of

actors are involved in the decision making process; these actors usually come from different backgrounds

and have different objectives, interests and aspirations. In an increasingly urbanized world, cities will have

to face different challenges and should develop innovative solutions and actions to fulfill their citizens’

needs.

44

Many researchers have underlined the increasing significance of stakeholder engagement in planning

and evaluation of transportation infrastructure and policies. Acceptance and support from stakeholders is

repeatedly mentioned as an extremely critical factor when it comes to the successful implementation of

VCF mechanisms. Moreover, how popular is a financing mechanism for urban public transport among

citizens and therefore the degree of public acceptance is a “make-or-break criterion”; there is usually no

chance of success in case it is not welcomed by the citizens of the area of interest.

Regardless their crucial role, stakeholders and citizens have not been examined in the context of VCF

policies as thoroughly as this role would justify. Moreover, although there have been some attempts lately

in evaluating VCF mechanisms, they are rather scarce and there is no comprehensive and established

research volume in this direction yet.


The topic and research area of the PhD thesis are original and timely both from the EU and national

policy perspectives. The fruitful results of the approach it suggests are expected to facilitate decision –

making and communication between the multiple actors involved in the process, as well as foster social

understanding of the value capture concept. Moreover, the dissertation suggests a major contribution to

the field, due to the fact that, to the best of our knowledge, no comprehensive examination of innovative

financing mechanisms for transportation infrastructure especially focused on a Greek city has been

attempted before. It is therefore expected to stimulate and enhance interaction between actors on policy

level regarding the extremely critical topic of financing urban public transportation infrastructure.

Methodology

In order to incorporate stakeholders’ views and aspirations in the developed framework, among the

large spectrum of methods that can be used for transportation policies’ evaluation, the Multi-actor Multi-

criteria Analysis (MAMCA) was selected. MAMCA is a decision - making model developed by Macharis

(2004). The main characteristic of the methodology is that it takes stakeholders explicitly into account in all

stages of the analysis. Another critical aspect of MAMCA is that every stakeholder group has its own criteria

set, which correspond to the groups' objectives. The method allows analysis per stakeholder group, as well

as aggregated analysis. The evaluation of alternative scenarios can be done with the aid of any MCDA

method. In the context of my thesis, AHP and PROMETHEE - GDSS methods were selected, due to the fact

that they are both user-friendly and they are supported by robust bibliography in transport-related

applications. Furthermore, under the objective of investigating the citizens’ perceptive on VCF, Multivariate

Analysis techniques (Correspondence and Hierarchical Cluster Analysis) as well as Logistic Regression

Modelling were employed, in order to reveal hidden correlations and contrasts that are not easily

perceived through simple statistical analysis.

Results

The analysis and synthesis of the obtained results revealed very interesting observations concerning

the degree of acceptability of innovative financing policies based on the VCF concept and highlighted the

benefits as well as the limitations through the eyes of those who will have an impact on (or be affected by)

a potential future implementation of those policies. Furthermore, noteworthy similarities but also

contradictions among stakeholder groups emerged, highlighted by the different criteria used for each

group. Moreover, it is proved that, in order to achieve the challenging task of planning sustainable cities, a

broad and in depth dialogue with all involved stakeholders is needed before the introduction of new

financial mechanisms for transportation infrastructure.

45

George Stavri

Stanford Associates International

[email protected]

George Stavri, a native of Cyprus did all his academic studies (undergraduate and graduate) at

Stanford University graduating with three different degrees with Honours and Distinction, i.e. Economics,

Political Science and International Policy Studies.

He established and manages the international consultancy firm of, 'Stanford Associates International',

a global umbrella with Stanford University graduates specialists in a wide range of skills and knowledge

subjects offering consultancy and training services internationally to private companies, international

agencies and governments. He is also an avid fencer and coach and took part in the 1988 Seoul Olympics.

1) CONCESSION CONTRACTS INTERIOR ROAD PASSENGER TRANSPORT IN REGULAR LINES IN

CYPRUS

2)'SOCIAL HOUSING FOR NATURALIZED SYRIAN REFUGEES IN EUROPE' IN GREECE

3)TRANSITION TO AN ENERGY ECONOMY IN CYPRUS TO 2025


(1) Concession Contracts Interior Road Passenger Transport in Regular Lines in Cyprus.*

In this project, my international consultancy firm is being asked to submit a proposal on how to couple

environmentally-friendly local bus transport that is both financially viable and innovative in satisfying

customers' needs of speed, safety and punctuality.

Key words & Main scientific literature: innovation, quasi privatization in public services

(2) 'Social Housing for Naturalized Syrian Refugees in Europe' in Greece.

We are advising Greek authorities on how to make social housing available to the streaming flows of

Syrian refugees into Greece from war-torn Syria which they will own from the first day thus, allowing them

to sell or rent it to the Greek State or private NGOs upon their return to Syria with a considerable amount

of funds in order to start anew their lives in Syria.

Key words & Main scientific literature: Innovation and Social/Humanitarian policies, self-funded in a

European public services' framework.

(3) Transition to an energy economy in Cyprus to 2025,

Our project here which is in academic collaboration with Dundee's Center of Energy in the UK is to

offer an innovative mode of transition for the public from a petroleum-based energy economy to the

crucial duo of (a) natural gas [which Cyprus has its own confirmed reserves now] and (b) solar energy from

Cyprus' own immense natural reservoir of sunshine. This also includes an educational aspect that requires

of us to inform through presentations, seminars and classes the school-age population on the Island.

Key words & Main scientific literature: Innovating nature and minds from the cradle using public

services as the chariot.

46


Clifton, J., F. Comin and D. Diaz-Fuentes -2003, Privatisation In the European Union, Dordrech: Kluwer

Academic Publishers,

Firmino, S and S. Mendes (2012), 'The rise of collaborative PPPs in Portugal dealing with accountability

issues in urban development and regeneration. A comparative case study analysis'. Paper presented at the

34th EGPA Annual Conference, Bergen, 5th-8th September 2012

Public Administration Reforms in Europe: The View From The Top, Edited By Gerhard Hammerschmid,

Steven Van De Walle, Philippe Bezes, EE Elgar Publishers 2014


The innovative element of our approach in the matter of riding essentially public enterprise and

services of public benefit in all three projects we are engaged in currently is to re-energize latent assets or

cut away public/private 'fat' through overstaffed services, inflated cost per man-hour and/or proactively

bypass old and costly mistakes through substantive and focused training and education of

consumers/producers in different age groups.

(1) The Concession Contracts Interior Road Passenger Transport in Regular Lines in Cyprus project is

the vehicle for massively cutting away public/private 'fat' through overstaffed services.

(2) The 'Social Housing for Naturalized Syrian Refugees in Europe' in Greece project is the one we are

using to re-energize very large pools of latent assets by the Greek State, i.e. government land sitting idly for

decades to entice private investment funds internationally through triple repo agreements among Syrian

refugees owning their home in Greece and selling to investment funds locally and internationally.

This is an incentive for the Greek State to invest in the needed infrastructure thus creating work places

and activating an economy dormant in specific sectors.

(3) The 'Transition to an energy economy in Cyprus to 2025' is imbued with the innovative element of

specifically training and educating young (school age) minds in how to make the transition from the current

petroleum-based economy to a natural gas and solar powered one both of which are in abundant supply in

Cyprus, through various programs.

These programs provide parents with the incentive to invest in their children's future by using the

savings deposited in their school savings account (a long tradition in Cyprus) to buy up shares in relevant

state and PPP industries engaged in the above sectors. Based on our studies by the time they graduate, the

investment account they maintain will be more than enough to pay for either their needs in life as they

start out with their family or pay for their University studies.

47

Ilias Tsagas

University of Greenwich

[email protected]

Ilias is a PhD student at the Department of Accounting and Finance, University of Greenwich in

London. He is also a journalist reporting on renewable energy technology and policies covering specifically

the UK and the Mediterranean Region as well as the Middle East.

THE ROLE OF THE ELECTRICITY MARKET REFORM (EMR) ON THE UK'S ELECTRICITY MARKET AND

ENERGY GOVERNANCE


Ilias’ doctoral research concerns the UK’s Electricity Market Reform (EMR), which is the country’s

electricity policy framework introduced in December 2013. Specifically, his research aims to understand the

role of the EMR on the UK's electricity market and governance. The project does not taste any hypothesis

neither aims to make predictions.


The EMR does not neglect the merits and principles of the liberalisation era that spurred in 1980s.

However, although the EMR respects the ideas of competitive and well-functioned markets, it also allows

the state to intervene in the functioning and structure of the energy market. Thus, under the EMR, the

state does not only guarantee the rules of the game; it participates in the game by allocating subsidies for

all kinds of electricity generation (e.g. fossil fuel-based plants and renewable energy facilities) and deciding

the eligibility of the stakeholders to compete over the subsidies. Consequently, the state’s increased role

can make it subject to heavier lobbying activity, which could also lead to special relationships between it

and particular interests.

Against this backdrop, the thesis seeks to address whether the EMR is a retreat to an old form of

governance. To address this question, Ilias’ research work employs a new institutionalist theoretical

framework, aiming to understand the role that new ideas play under the EMR’s policy framework. So, given

the EMR has introduced a new structure for the UK’s electricity market, how do stakeholders induce their

new ideas? Does the EMR leave room for innovative business plans? If no, are the stakeholders ready to

abandon their efforts? Ilias’ thesis argues that by exploring the business and policy activity post the EMR,

we can understand to which extent the government can manoeuvre the energy governance and why.

The thesis draws on seminal work on new institutionalism, particularly the so-called ‘Discursive New

Institutionalism’, as well as on the Punctuated Equilibrium Theory. The literature on the EMR is also taken

into account, however given this is a relatively recent policy, there is not a great number of academic

studies analysing the EMR policies.

Nevertheless, this is a short list of work referenced in the thesis:

Baumgartner, F. R. & Jones, B. D. (eds) (2002) Policy Dynamics, The University of Chicago Press

Fischer, F. (2003) Reframing Public Policy: Discursive Politics and Deliberative Practices, Oxford

University Press

48

Schmidt, V. (2006) Institutionalism in Hay, C., Lister, M. & Marsh, D. (eds) (2006) The State: Theories

and Issues, Palgrave Macmillan

Pollitt, M. G. & Haney, A. B. (2013) Dismantling a Competitive Electricity Sector: The U.K.’s Electricity

Market Reform, The Electricity Journal 26(10) pp. 8-15

Schmidt, V. A. (2010) Taking ideas and discourse seriously: explaining change through discursive

institutionalism as the fourth ‘new institutionalism, European Political Science Review 2 (1) pp. 1-25


The main innovation in Ilias’ thesis is his effort to bring together all main three areas of the electricity

generation market: the capacity market (concerning mainly fossil fuel-based assets); the renewable power

systems; and the new market for flexibility services (e.g. energy storage and demand side response). So,

while there have been many studies focusing on each of these markets separately, there is not enough

work considering all stakeholders together and trying to understand how they react to the EMR as a whole.

By taking into account often diametrically opponent views from competing energy market stakeholders,

the thesis argues, can offer a comprehensive view of the energy governance system following post the

EMR.

Methodology

The thesis adopts a constructivist epistemological position, according to which meanings do not exist

isolated, but are constructed by the researcher’s interactions with the social phenomena he investigates.

Within this understanding of what knowledge is, the thesis employs a discourse analysis methodology,

using specifically the concept of Interpretive Policy Analysis. Based on this, the researcher firstly identifies

the artefacts (language, objects, acts) through which meanings are generated and transmitted, and thus

builds an archive of documents and texts; secondly, the researcher identifies the emerged discourses and

thirdly the researcher locates and highlights the points of conflict that represent different interpretations

by the various actors. This process is repeated three times for each of the three markets under

investigation (capacity, renewable energy and flexibility markets), before the thesis offers its final

conclusions.

With regards to the gathered artefacts, the researcher has been gathering language texts via attending

industrial conferences in the last two years. This initial set of data will later be complemented by one-to-

one, semi-structured interviews undertaken specifically for the PhD project.

Expected results

Researchers adopting a qualitative research approach often do the mistake to expect specific results

related to their own understanding of the social world (in my case the energy market). However, the theory

of the Interpretive Policy Analysis suggests in fact that this is a process full of surprises. The researcher for

example might engage with stakeholders whose ideas and views he hadn’t previously thought. Therefore,

one should always be weary of expressing expected results before his data collection and analysis

concludes. My project is expected to conclude by May 2018.

49

Carolina Wannheden Karolinska Institutet, Stockholm

[email protected]

Postdoc at the Medical Management Centre (MMC), Department of Learning, Informatics,

Management and Ethics (LIME), Karolinska Institutet, Stockholm. I finished my PhD in 2014 in the medical

informatics discipline, focusing on clinical decision support for healthcare professionals. My research

interest has now shifted toward eHealth/mHealth services to support collaborative health and social care.

CO-CARE FOR PATIENTS WITH CHRONIC CONDITIONS: EXPERIENCES OF CO-DESIGNING A DIGITAL

SERVICE FOR PARKINSON'S DISEASE CARE


I am involved in a research program that investigates the design, implementation, and evaluation of

digital health technologies (eHealth/mHealth) aiming to support partnership in chronic care management

between patients, informal caregivers, and healthcare professionals. Of particular interest is how eHealth

services are designed and how they are used to best support different actors in performing tasks that are

aligned with the overall goal of achieving or maintaining best possible health for an individual with a

chronic condition.


Healthcare utilization and costs increase radically as people live longer with (often multiple) chronic

conditions (Barnett et al. 2012; Lehnert et al. 2011). People with chronic conditions may spend many hours

per year in health and social care services, but the majority of time is spent in self-care. Individuals’

influence on their chronic condition has been described as inescapable – as a matter of how, not whether,

they manage it (Bodenheimer et al. 2002). This means that health and social services, and the results

thereof, are co-produced by patients and healthcare professionals (Batalden et al. 2015), which has

implications for how care is best organized. It requires a shift from professional-oriented care toward

patient-oriented, supported, self-care, and, in turn a new type of collaborative partnership between

patients and caregivers (Bodenheimer et al. 2002; Batalden et al. 2015), which has also been described as

co-care (Thiele Schwarz 2016).

Digital health technologies (eHealth/mHealth) that enable data collection, access, sharing and

communication across time and space evolve rapidly (Silva et al. 2015) and thus play a central role in co-

care (Thiele Schwarz 2016). Clinical quality registries may serve as national platforms to engage patients,

clinical professionals and researchers in co-care, as suggested in the model by Nelson et al. (2016).

Barnett, K. et al., 2012. 'Epidemiology of multimorbidity and implications for health care, research, and

medical education: a cross-sectional study'. Lancet, 380(9836), pp.37–43.

Batalden, M. et al., 2015. 'Coproduction of healthcare service'. BMJ Quality & Safety, pp.1–10.

Bodenheimer, T., Wagner, E.H. & Grumbach, K., 2002. 'Improving primary care for patients with

chronic illness'. JAMA, 288(14), pp.1775–1779.

50

Lehnert, T. et al., 2011. 'Review: Health Care Utilization and Costs of Elderly Persons With Multiple

Chronic Conditions'. Medical Care Research and Review, 68(4), pp.387–420.

Nelson, E.C. et al., 2016. 'Patient focused registries can improve health, care, and science'. BMJ

(Clinical research ed.), 354, p.i3319.

Silva, B.M.C. et al., 2015. 'Mobile-health: A review of current state in 2015'. J Biomed Info, 56, pp.265–

272.

Von Thiele Schwarz, U., 2016. 'Co-care: Producing better health outcome through interactions

between patients, care providers and information and communication technology'. Health Services

Management Research, 29(1-2), pp.10–15.


In our research, we explore how the potential of co-care could be realized by studying mainly two

chronic conditions in Sweden – Rheumatoid arthritis and Parkinson’s disease. The main innovative

elements of the co-care research program could be described on three levels: 1) methodological innovation

– a partnership action research approach is used, which involves all relevant stakeholders in the design,

development, implementation and evaluation of new models of co-care; 2) service innovation – the

research aims to result in eHealth/mHealth services and service models that support patients, informal care

givers, and healthcare professionals to engage in co-care. The service should benefit each individual user; 3)

social/organizational innovation – the implementation of co-care in practice requires a change of attitudes

and behavior of individual patients, informal care givers, healthcare providers, and the public, as well as

changes on an organizational and a system level. It entails a shift from patient involvement in care to

healthcare involvement in patients’ lives.

Methodology

Action research is one of the main research strategies that is used in the co-care research program.

Practitioners and patients are engaged in research and in generating solutions to practical problems; the

researcher’s role is that to facilitate change by consulting, monitoring and providing feedback on the

change process and outcomes (Meyer 2000). In one of the studies (described below), we used co-design,

defined as “collective creativity as it is applied across the whole span of a design process” (Sanders &

Stappers 2008), to explore co-care needs among people with Parkinson’s disease (PWPD) and care

professionals.

The co-design process consisted of 4 workshops and involved 7 PWPD, 3 nurses, 4 physicians, and 2

physiotherapists. The workshops were facilitated by a designer and an eHealth strategist, and observed by

4 non-participant researchers. Data on participants’ needs and ideas related to co-care were collected using

post-it notes and photographs. A programmer then developed a simple mobile and web application which

was discussed with the participants during the last workshop. Experiences of the co-design process were

captured using written participant feedback during the workshops, and a web-questionnaire (containing

open-ended questions) after the workshop series. Data also included researchers’ observation notes and

written reflections between the workshops. Qualitative inductive content analysis was used to analyze the

data.

Preliminary results

Service: The co-design process described above resulted in a prototype for an eHealth/mHealth

service for PWPD and their care providers – which was named Co-Care Companion (CCC). CCC exemplifies a

solution to address patients’ and care providers’ needs of a flexible, needs-based, individualized co-care

system that enables continuous health monitoring and collaboration.

51

Participants’ experiences of co-design: Both PWPD and care professionals had positive experiences of

participating in co-design and were willing to contribute again in upcoming phases of development.

However, some challenges related to time consumption and scheduling, health conditions, power

relationships, group dynamics, and medical jargon were also identified.

young ideas for the future: a selection of...

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