Nikita Suslov (p), Ekaterina Meltenisova

Sharp rises in world energy prices in the 1970s and 2000s made many economies create and develop energy-efficiency measures, try to reduce their dependence on the energy imports and lower emissions of harmful substances resulting from fuel combustion. Apart from government regulation, we believe that the role of market signals which could boost energy saving is still substantial. Firstly, renewable energy sources are still more expensive than the traditional ones, and their usage can raise the price of energy for the consumers. Secondly, prices for traditional energy resources can grow due to the increasing returns to scale in fuel extraction. Thirdly, the most important aspect is that energy prices are still one of the crucial factors in regulating economies. As tax regulation and tough requirements for environment protection can influence energy prices, and policy regulation becomes effective when economy is sensitive to price signals. Our analysis is based on the statistical data that cover 27 former socialist economies, the OECD countries and some countries of Asia, Africa, and America during the period of 2002-2010. In our regression model, we consider energy consumption in production industry only, rather than household energy consumption. We apply both panel data analysis and dynamic panel data analysis using lagged instrumental variables. We see that the energy saving policy that regulates energy prices is more effective in the OECD countries due to the developed institutions. The elasticities we obtained for these countries are the highest in absolute value. It means that the energy intensity is more sensitive to price change, which increases the regulation effectiveness, such as taxes and subsidies, influencing the general level of energy prices on the market. During 2002-2010, the average value of elasticity for the CIS countries was lower in absolute value by 35% than that in the OECD countries, with the Baltic countries and the countries of Eastern Europe being behind the developed countries by about 20%. It can be explained by weaker incentives for economic agents to reduce energy consumption in the latter countries as compared to the developed countries during the period considered. At the same time, the regulation applied in order to encourage the use of energy saving technologies was not effective enough due to the low dependence of energy consumption on changing energy prices.

Liza Mahavianti Syamsuri (p), Marina Van Geenhuizen , Zenlin Kwee

Indonesia is facing a fairly low innovativeness at the national level. In the ICT sector, the share of ICT exports in gross exports is still very low and domestic ICT firms only serve a small amount of ICT demand in the country although the number of ICT small firms has grown significantly in the last ten years in Indonesia. It is therefore urgent to identify which factors are dominant in affecting firm innovativeness in the ICT sector in Indonesia. Considering some theories such as resource-based, social capital, network and cluster theory, this study aims to fill this knowledge gap by focusing on important factors of innovativeness To this purpose a survey among 263 ICT firms is used and a multivariate model employing number of innovations and newness of innovations as dependent variable is developed and tested. The result on region influence proves that located in the metropolitan area give more benefit for innovation activities. Our findings show the influence of firm size, manager eperience, perceived regulations regulation, FDI share, perceived openness and perceived cluster network strength are positive nonlinear. This findings may suggest that firms use only the optimal resources than maximum resources to obtain maximum benefits on innovation activities.

Ferran Vendrell-herrero (p), Pervez Ghauri, Christian Darko, Oscar F. Bustinza

In the developed world the exponential growth of knowledge-intensive services (KIBS) firms is considered one key factor for the consolidation of knowledge-based economies. KIBS are both sources and carriers of knowledge that impact territorial and urban economic functioning. As drivers of knowledge, these firms enhance the competitiveness of local manufacturing businesses by building their service competences and as such implementing value-adding services into their operations. This process of servitization satisfies an increasingly complex demand in developed economies. In addition to the benefits of manufacturer’s internal value chain, there are broader regional benefits referred to as Territorial Servitization.
Whilst the transformation of manufacturing business models in developed countries is widely researched, there is much less attention to less developed countries. To this end, this research aims to map co-location to KIBS co-location in African cities and uncover whether this process of external service knowledge acquisition increases manufacturers’ productivity. By doing this we respond to recent calls for contextualizing management research by testing the relevance of established and emerging theories in developing economies.
The relationship between KIBS co-location and productivity is explored in the context of Africa, where firms selling abroad need to satisfy different demands from firms serving only domestic markets and therefore can benefit more from having access to service knowledge. As such, another purpose of the research is to uncover the moderating role of exporting.
The authors draw on the World Bank Enterprise survey to undertake a cross-section analysis including 4,683 African manufacturing firms. The surveys cover the period 2009-2017 and have been undertaken in 29 different countries. Whilst the analysis is performed at firm-level the main measure of KIBS co-location is a variable measured at city-level, providing a framework to assess knowledge sharing and dissemination in urban areas, something notoriously novel for the African context. As a measure of firm productivity we use both, labour and total factor productivity. We run ordinary least squares and introduce a number of fixed effects to control for unobserved heterogeneity.
This paper shows that African exporting manufacturers are significantly different than their non-exporting counterparts in terms of co-location to KIBS. Our results confirm that access to service knowledge generates productivity gains for exporters, but it does the opposite effect for non-exporters. This result opens an interesting avenue for further research.

Mia Hårsman Wahlström (p), Karima Kourtit , Peter Nijkamp

In recent years we have witnessed an increasing interest in the functioning, appreciation and mechanism of urban livability amenities at a sub-city level, particularly neighbourhoods and streets. Modern - often large - cities form a complex constituency of underlying small-scale districts or communities ('urban villages') that altogether make up for the quality-of-life satisfaction, happiness and auto-identification of residents in relation to their living environment. The city is not just a container full with jam-packed people, but a fine-grained constellation of built-environment assets, public space and human well-being capital and social interaction capital. Consequently, the understanding of the essence of a modern city calls for a detailed analysis of the granularity of city life, both regarding its physical objects or tangible spaces (the 'body') and its social, interactive and livability dimensions (the 'soul'). Such a decomposition of urban life into socially and spatially more detailed components is coined here the microcosmic perspective.
The two multi-faceted forces of 'body' and 'soul' shape in combination the appreciation for urban neighbourhoods, city life and sense of community, termed here 'city love'. Thus, the great challenge of cities is to create and favour city love from a microcosmic perspective.
The above approach will be tested by using a detailed, disaggregate data base at individual level from four Swedish cities (Stockholm, Gothenburg, Malmoe, and Umea). These data will be explored statistically, while next an econometric analysis of a 'city love production function' will be presented. Our results show interesting findings on city love differences among Swedish cities as well as among urban districts in these cities, while they also point at heterogeneity in motivations and driving forces of the citizens concerned.
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