Bohumir Pazderka

Knowledge, innovation and share value

Knowledge–based enterprises (KBEs) are difficult to value owing to the relatively greater importance of their intangible assets, such as human capital and investment in innovation. Traditional valuation models rely on variables such as earnings, dividends and assets, which, for many KBEs, are either non–existent or are distorted by differing accounting practices. This paper reviews the various attempts by practitioners and academics to overcome these difficulties by such devices as different proxies for the valuation variables or different forms of the valuation equations. We then examine some theoretical approaches that provide novel approaches to valuation. Finally, we discuss the notion of the ‘fuzzy firm’, where traditional corporate boundaries have become amorphous, with the result that the firms require new valuation methodologies.

Patent Protection and Pharmaceutical R&D Spending in Canada

After almost two decades of compulsory licensing of prescription drugs, Canada restored full patent protection in two legislative steps taken in 1987 and 1992. The paper investigates the impact of the strengthening of intellectual property rights on corporate R&D spending in the Canadian pharmaceutical industry. Interindustry comparisons of R&D spending trends within Canada, intercountry comparisons of R&D spending trends within the pharmaceutical industry, as well as trends in Canadas share of foreign R&D spending of US-owned multinationals suggest a statistically significant increase in Canadian pharmaceutical R&D spending after 1987.

Agriculture in Uttarakhand, India—Biodiversity, Nutrition, and Livelihoods

This study investigates food production and agrobiodiversity in the Tarikhet and Ukhimath blocks in Uttarakhand, India, located in the middle ranges of the Himalayas. On the small patches of terraced land available to the average household in these areas, the cultivation of a wide range of traditional and high-yielding varieties of grains, legumes, vegetables, and fruits is a positive feature in terms of sustainability. Some villages also supplement plant-based food production and income by incorporating animal husbandry into the overall agroecosystem. It was found, however, that the output of the average farm provides only about half of the household energy requirements, forcing most families to resort to off-farm activities to support a large proportion of their food and other requirements. There is therefore a need to develop policies that will continue to support the rich agrobiodiversity of these areas, while providing for the nutritional and economic needs of the population.

International comparisons of R&D effort: The case of the Canadian pharmaceutical industry

Abstract The Canadian federal government, anxious to stimulate innovation, announced recently a policy objective for the economy: the attainment of industrial research expenditures reaching 1.5 percent of the gross national product. The proposed substantial increase over the current level is rationalized by comparison with economy-wide research intensities (GERD/GNP) in other OECD countries. This paper questions the economic validity and policy relevance of international aggregate comparisons. It argues that inter-country comparisons should take place at individual industry levels where technologies are similar and proposes a methodology for formulating RD this Canadian industry presumably does not require governmental attention to its R&D activities.

The consumer costs of professional licensing restrictions in Canada and some policy alternatives

The public interest rationale for professional licensing and the competing monopoly hypothesis are examined and the published empirical evidence discussed. The main contribution of the paper is an estimate of the costs of selected licensing restrictions (on price competition, on interjurisdictional mobility, and on professional advertising) to the Canadian consumers. The calculation is based on an earnings function estimated for a cross-section of 20 professions using information from the 1971 Census of Canada and from provincial laws and regulations governing the practice of these professions. The various policy options are reviewed and their feasibility in the current Canadian institutional setting is evaluated.ZusammenfassungDer Sinn beruflicher Zugangsbeschränkungen wird üblicherweise darin gesehen, daß zur Ausübung bestimmter Berufe eine Mindestqualifikation gewährleistet sein sollte und ein Interesse des einzelnen und der Allgemeinheit daran besteht, vor den Folgen schlechter Berufsausübung geschützt zu sein. Negative Folgen solcher Beschränkungen werden dagegen in der wettbewerbshemmenden Wirkung durch die zahlenmäßige Begrenzung der Berufsausübenden gesehen und in der dadurch entstehenden Möglichkeit zur Erzielung höherer Einkommen, die für die Konsumenten höhere Kosten und Preise bedeuten.Der zweite Abschnitt behandelt die bisherigen Forschungsergebnisse zu den vermuteten positiven und negativen Wirkungen beruflicher Zugangsregelungen. Der dritte Abschnitt berichtet über eigene ökonometrische Schätzungen der Autoren für die durch Zugangsregelungen verursachten Kosten bei Konsumenten. Diese Kosten werden verstanden als die Differenz zwischen dem Einkommen, das unter dem Schutz von Zulassungsbeschränkungen erzielt worden ist, und dem Einkommen, das unter Bedingungen des freien Wettbewerbs erzielt worden wäre, also als “Monopoleinkommen”. Regressionsanalytische Auswertung der Daten von 4.571 männlichen Berufsausübenden in 20 verschiedenen Berufen ergibt die in Tabelle I aufgeführten Determinanten des Einkommens. Tabelle II zeigt für 13 Berufe den Einkommensbeitrag, der auf Zulassungsregelungen zurückgeführt werden kann.Der vierte Abschnitt diskutiert alternative Regelungen des beruflichen Zugangs und der letzte Abschnitt unterstreicht noch einmal, daß die durchgeführten Berechnungen einen Versuch zur Quantifizierung nur der Kosten der Zugangsregelungen, nicht aber auch ihres Nutzens sind, der ungleich schwieriger zu erfassen wäre.