Size is not everything – The efficiency of municipal service provision in Saxony-Anhalt
Peter Haug, Annette Illy
Wirtschaft im Wandel,
No. 10,
2011
Abstract
The proponents of municipal area reforms – e.g. the recently completed reform in Saxony-Anhalt – expect that municipal amalgamations or centralized organizational forms save costs or increase the efficiency of local public service provision. This article examines the potential efficiency deficits of Saxony-Anhalt´s fragmented municipal structures on the eve of the crucial phase of the municipal reform. The results of a two-step DEA bootstrap procedure show that decentralized municipalities (“Verwaltungsgemeinschaften”) do not have to be significantly less efficient than centralized municipalities (“Einheitsgemeinden”). Furthermore, the results of the scale efficiency analysis suggest that the majority of Saxony-Anhalt´s communities already had an approximately efficient “firm size” – if the aggregated level of the municipal associations is examined. The relationship between scale efficiency and population is U-shaped. On the one hand, the results do not support the preservation of micro-municipalities or the formation of municipal associations with more than ten members. On the other hand, the results provide also no evidence for the necessity to reduce the number of towns and municipalities in Saxony-Anhalt from 1118 in 2004 to currently 219 – even if the looming population decline is taken into account.
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Capturing the changes in the knowledge base underlying drug discovery and development in the 20th century and the adjustment of Bayer, Hoechst, Schering AG and E. Merck to the advent of modern biotechnology.
Iciar Dominguez Lacasa
Scientometrics,
No. 2,
2006
Abstract
The so-called biotechnology revolution has changed the institutional and knowledge environment of the pharmaceutical industry. The industry incumbents have faced the challenge of adjusting to the new conditions for innovation in drug discovery and development. Drawing on the theoretical framework of the organizational capabilities of the firm, this contribution aims at capturing the changes in the knowledge environment and exploring the adjustment of 4 German corporations (2 companies rooted in the coal tar dyestuff industry and 2 traditional pharmaceutical companies) to the advent of modern biotechnology. Despite the firm-specific capabilities in organic chemical synthesis, the representatives of the coal tar dyestuff industry seem to have been better able to adjust to the external discontinuity in their knowledge environment.The existence of research and development activities, the science-based research tradition together with interactions to access the extramural knowledge base of the firms seem to have been crucial in the perception and adoption of the new technological possibilities of biotechnology after the 1970s, rather than prior competence in biotechnology or the employees with the skills to develop the capabilities to exploit it.
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Technological capability of foreign and West German investors in East Germany
Jutta Günther
IWH Discussion Papers,
No. 189,
2004
Abstract
Foreign direct investment (FDI) plays an important role for countries or regions in the process of economic catching-up since it is assumed – among other things – that FDI brings in new production technology and knowledge. This paper gives an overview about the development of FDI in East Germany based on official data provided by the Federal Bank of Germany. The investigation also includes a comparison of FDI in East Germany to Central East European countries. But the main focus of the paper is an analysis of the technological capability comparing majority foreign and West German owned firms to majority East German owned firms. It shows that foreign and West German subsidiaries in East Germany are indeed characterized by superior technological capability with respect to all indicators looked at (product innovation, research & development, organizational changes etc.).
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