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The implementation of the General Data Protection Regulation (GDPR) in the EU, rather than the regulation itself, is holding back technological innovation. The EU’s data protection governance architecture is complex, leading to contradictory interpretations among Member States. This situation is prompting companies of all kinds to halt the deployment of transformative projects in the EU. The case of Meta is paradigmatic: both the UK and the EU broadly have the same regulation (GDPR), but the UK swiftly determined that Meta could train its generative AI model using first-party public data under the legal basis of legitimate interest, while in the EU, the European Data Protection Board (EDPB) took months to issue an Opinion that national authorities must still interpret and implement individually, leading to legal uncertainty. Similarly, the case of Deepseek has demonstrated how some national data protection authorities, such as the Italian Garante, have moved to ban the AI model outright, while others have opted for investigations. This fragmented enforcement landscape exacerbates regulatory uncertainty and hampers EU’s competitiveness, particularly for startups, which lack the resources to navigate an unpredictable compliance framework. For the EU to remain competitive in the global AI race, strengthening the EDPB’s role is essential.
We look at gender differences among adolescents in Sweden in preferences for competition, altruism and risk. For competitiveness, we explore two different tasks that differ in associated stereotypes. We find no gender difference in competitiveness when comparing performance under competition to that without competition. We further find that boys and girls are equally likely to self-select into competition in a verbal task, but that boys are significantly more likely to choose to compete in a mathematical task. This gender gap diminishes and becomes non-significant when we control for actual performance, beliefs about relative performance, and risk preferences, or for beliefs only. Girls are also more altruistic and less risk taking than boys.
Experiments have demonstrated that men are more willing to compete than women. We develop a new instrument to “price” willingness to compete. We find that men value a $2.00 winner-take-all payment significantly more (about $0.28 more) than women; and that women require a premium (about 40 %) to compete. Our new instrument is more sensitive than the traditional binary-choice instrument, and thus, enables us to identify relationships that are not identifiable using the traditional binary-choice instrument. We find that subjects who are the most willing to compete have high ability, higher GPA’s (men), and take more STEM courses (women).
Recent studies find that women are less competitive than men. This gender difference in competitiveness has been suggested as one possible explanation for why men occupy the majority of top positions in many sectors. In this study we explore competitiveness in children, with the premise that both context and gendered stereotypes regarding the task at hand may influence competitive behavior. A related field experiment on Israeli children shows that only boys react to competition by running faster when competing in a race. We here test if there is a gender gap in running among 7-10 year old Swedish children. We also introduce two female sports, skipping rope and dancing, to see if competitiveness is task dependent. We find no gender difference in reaction to competition in any task; boys and girls compete equally. Studies in different environments with different types of tasks are thus important in order to make generalizable claims about gender differences in competitiveness.
Chapter 8 looks for evidence of tournaments in the decisions of voters in Japan to turn out and vote in Lower House elections, 1980–2014. Under a tournament, decisions to vote are expected to hinge on where in the ranking a given municipality is expected to end up. All else equal, it expects that voters will be systematically more likely to go to the polls when they live in municipalities that are projected to place highly. Moreover, among municipalities projected to place highly, projections of further increases in rank are expected to bring about an even larger impact on turnout. The chapter presents three sets of empirical tests of these two hypotheses. The first two look within electoral districts and examine how turnout varies as a function of where municipalities are expected to place in the ranking. The third set of tests leverage variation in competitiveness across electoral districts, which we know impacts turnout, and variation in competitiveness and ruralness, which we know impacts turnout in Japan. The tests reveal support for both hypotheses and shed new light on determinants of political participation across time and space.
India is a leading producer as well as one of the largest exporters of rice. Export competitiveness of rice thus plays a crucial role in India’s overall trade scenario, particularly in bridging the gaps in country’s soaring trade deficits. The study investigates the impact of key determinants on India’s rice export competitiveness for the period 1990–2020 using the autoregressive distributed lag model. The results reveal that increasing yield of rice and depreciated exchange rate have significant positive impact on India’s rice export competitiveness. In the long run, production cost and export price have a detrimental effect on export of rice from India. However, India’s trade openness and export price do have a mixed effect on export competitiveness of rice in the short run. Moreover, the findings of this study offer some important policy implications for the stakeholders like farmers, exporters, and the government to improve export competitiveness of Agri-products including rice.
Organizations are utilizing digital technologies to modernize their innovations in today’s competitive and rapidly changing market environment. This study’s goal is to explore the influence of open innovation on firms’ digital technology integration, aiming to enhance their innovation skills and produce competitive, adaptable digital solutions. The methods used include analysis, synthesis, and generalization. Organizations can enhance open innovation by acquiring knowledge, capabilities, ideas, technologies, and information for new products and services, with the relationship between open innovation and digital innovation accelerating their capabilities. The study emphasizes the challenges organizations face in modern IT, emphasizing open innovation, access to external knowledge, and the need for improved internal production efficiency and competitiveness. The practical value of this study is manifested in the identification of strategies for optimizing open innovation for their transformation into digital solutions.
This article investigates the relationship between intra-party leadership contestations on levels of satisfaction with democracy among party voters, trying to identify the impact of the former on the latter. The article draws on empirical data for a cross-sectional analysis from three different data sets that cover 11 countries, including a more case-specific analysis that utilizes panel data from Germany. Overall, the study aims to capture the dynamics of intra-party politics and the magnitude of its effect on perceptions of democracy among parties' voters. We find that intra-party politics at its probably most competitive version, that is elections for the head of the party, does not seem to exercise any significant influence on voters' satisfaction with democracy.
In this chapter, I explore the imaginaries of prosperity underlying the European Union’s (EU) approach to industrial law and policy. Long considered a taboo in European politics, the EU began to rediscover industrial policy after the 2008 great financial crisis, gradually increasing its ambitions when it came to shaping the relations between the state and the market. Having reviewed an array of EU measures, starting with the 2010 industrial policy and including the more recent burst of legislative proposals (Chips Act, Batteries Act, Critical Minerals Act, and Net Zero Industry Act), this chapter aims to do two things. First, it identifies shifts in the background understanding of political economy, including the role and appropriate objectives of markets, politics, law, and government, that lie behind successive policy interventions. Second, this chapter sketches the contours of the new synthesis of prosperity that emerges from these recent proposals and measures, while at the same time, and in no ambiguous terms, drawing attention to its considerable limitations.
This text consults seven variants of institutional theory to explore how these can be applied to strategic management. These variants are New Institutional Economics, Old Institutionalism, New Institutionalism, institutional entrepreneurship and change, intra organizational institutionalization, institutional logics, and institutional work. In doing so, three strategic management styles are distinguished: competitiveness based strategic management, legitimacy based strategic management, and performativity based strategic management. While the competitive based style sees institutional theory submitting to mainstream strategy research, offering additional variables and considerations to explain competitive advantage, the legitimacy based style makes institutional theory a strategy theory in its own right by providing an explanation for an organization's viability that emphasizes legitimacy over competitive advantage. The performativity based style is an even more radical departure from mainstream strategizing by purporting that a future is actively created with organizations making contributions as emerging issues are being dealt with.
Surveying the devastation in Germany or Japan in 1945, few could have predicted how rapidly reconstruction would ensue, or that it would be followed rapidly by breathtaking and sustained economic growth. The post-war economic and technological performance of the two nations has generated marvels and, not surprisingly, also a desire in many other countries to imitate them. To some degree, they are, however, inimitable. After all, prior to 1945, each of the two nations had already developed distinctive capabilities, organisations, behaviours, political traditions, and social norms. The revolutionary changes to the German and Japanese versions of capitalism that followed defeat therefore emerged from highly unusual circumstances. Recognising this, however, does not mean that lessons cannot be learned from looking at their post-war history. There are two broad sets of lessons. First, a number of institutional and organisational innovations developed in the two countries after 1945 can serve as inspiration for similar innovations in other countries. Second, analysis of their responses to issues such as globalisation, energy policy, and national security can yield useful insights for others. Overall, the track record of German and Japanese capitalisms in adapting to the global political economy since 1945 favours guarded optimism about the future.
In 1945, Germany and Japan lay prostrate after total war and resounding defeat. By 1960, they had the second and fifth largest economies in the world respectively. This global leadership has been maintained ever since. How did these 'economic miracles' come to pass, and why were these two nations particularly adept at achieving them? Ray Stokes is the first to unpack these questions from comparative and international perspectives, emphasising both the individuals and companies behind this exceptional performance and the broader global political and economic contexts. He highlights the potent mixtures in both countries of judicious state action, effective industrial organisation, benign labour relations, and technological innovation, which they adapted constantly – sometimes painfully – to take full advantage of rapidly growing post-war international trade and globalisation. Together, they explain the spectacular resurgence of Deutschland AG and Japan Incorporated to global economic and technological leadership, which they have sustained to the present.
This chapter explains the consequences on the labour market of the structural changes induced by decarbonisation policies. These policies are indeed likely going to have consequences on labour income distribution given existing rigidities in the labour markets and their different impacts on sectors and job categories. The chapter notably discusses whether decarbonisation can be a net job creator or destroyer, illustrating how job losses can be managed in a fair manner and how green jobs creation can be incentivised.
This chapter offers an analysis of the challenges for governments and the private sector in cybersecurity governance from a systemic perspective. It first identifies the challenges that the liberal international order, characterised by political liberalism, economic openness, and international cooperation, has faced in the area of cybersecurity governance. It also observes that there have so far been no successful global efforts to harmonise rules or create a unified regime. This chapter then emphasises how the private sector’s essential role as innovators possessing technological expertise is unique to cybergovernance and explains how the interplay of different actors, both public and private, has practical meaning for states and actors.
In this contribution, we exploit machine learning techniques to evaluate whether and how close firms are to become successful exporters. First, we train various algorithms using financial information on both exporters and non-exporters in France in 2010–2018. Thus, we show that it is possible to predict the distance non-exporters are from export status. In particular, we find that a Bayesian Additive Regression Tree with Missingness In Attributes (BART-MIA) performs better than other techniques with an accuracy of up to 0.90. Predictions are robust to changes in definitions of exporters and in the presence of discontinuous exporting activity. Eventually, we discuss how our exporting scores can be helpful for trade promotion, trade credit, and assessing aggregate trade potential. For example, back-of-the-envelope estimates show that a representative firm with just below-average exporting scores needs up to 44% more cash resources and up to 2.5 times more capital to get to foreign markets.
The institutions of the developmental states set up in the postwar period began to crumble in the 1980s as liberalisation took hold. Isolationist approaches were on the back foot. However, this did not mark the end of economic nationalism. Nation-states were now recast as agents shaping competitiveness and therefore growth. This process is visible in the Baltic states breaking free from the Soviet Union, in Malaysia of the 1990s, and most importantly in reform-era China. Beyond these similarities, the differences are equally enlightening. China’s reforms as conceived by Deng Xiaoping saw an initially cautious, but increasingly rapid, dismantling of Maoist autarky, with the ‘rejuvenation’ of the nation becoming the principal aim. Malaysia under Mahathir Mohamad only slowly moved towards a developmental policy, because policy also tried to achieve the economic advancement of ethnic Malays over the country’s ethnic Chinese minority. Finally, not all independent states born from the Soviet dissolution could turn to the West. Ukraine in the early 1990s remained caught between internal divisions and increasingly aggressive Russian policy.
Theoretical equivalence exists among various auction mechanisms, specifically the Second-Price-Auction (SPA), a competitive environment, and the BDM mechanism, a non-competitive environment. Yet, empirical studies suggest that behavior in these mechanisms may diverge. Our experimental study examines the WTP and the WTA of individuals by analyzing buying and selling bidding patterns both for a physical product (mugs) and for two types of lotteries (regular lotteries and extreme lotteries) in these two auctions mechanism: SPA and BDM. We found that the WTP in the SPA is higher than the WTP in the BDM for mugs and for regular lotteries, while the mechanisms do not differ significantly for extreme lotteries. In addition, the WTA in the SPA is lower than in the BDM for regular lotteries only. These results indicate that the WTP and WTA, as well as the WTA-WTP gap, tend to differ in the SPA and in the BDM as a result of the interaction between the competitiveness effect and other psychological effects on bidding patterns for riskless and risky assets. In addition, the current study suggests that the competitiveness effect depends not only on the type of mechanism (SPA), but also on the type of item (physical assets or lotteries) and the type of lottery. In addition, the influence of the competitiveness effect may vary between buying and selling positions.
In this paper, we document a violation of normative and descriptive models of decision making under risk. In contrast to uncertainty effects found by Gneezy, List and Wu (2006), some subjects in our experiments valued lotteries more than the best possible outcome. We show that the overbidding effect is more strongly related to individuals’ competitiveness traits than comprehension of the lottery’s payoff mechanism.
Using “average" indicators is simply misleading in most occasions, and firm-level analysis allows a much more targeted set of policies. Firm-level analysis is an essential tool to complement and integrate the macro assessment and related policy response across the whole range of productivity drivers – from labour to trade, from finance to competition. The great advantage of the CompNet dataset is that is built in such a fashion to be able to be used – as it is and directly – to derive at the very least a first set of granular stylised facts to inform policy considerations. Users can use the dataset to assess competitiveness, financial constraints and sensitivity to exchange rate fluctuations. The book has also presented a wide variety of applications of firm-level-based analysis which goes over and above the mere presentation of stylised facts and joint distributions coming directly out of the dataset, including zombie firms impacts, export and participation in global value chains and concentration and market power.
This paper investigates the benefits of incorporating diversification effects into the pricing process of insurance policies from two different business lines. The paper shows that, for the same risk reduction, insurers pricing policies jointly can have a competitive advantage over those pricing them separately. However, the choice of competitiveness constrains the underwriting flexibility of joint pricers. The paper goes a step further by modelling explicitly the relationship between premiums and the number of customers in each line. Using the total collected premiums as a criterion to compare the competing strategies, the paper provides conditions for the optimal pricing decision based on policyholders’ sensitivity to price discounts. The results are illustrated for a portfolio of annuities and assurances. Further, using non-life data from the Brazilian insurance market, an empirical exploration shows that most pairs satisfy the condition for being priced jointly, even when pairwise correlations are high.