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Milton Friedman states in the 2002 preface of his classic "Capitalism and Freedom" that "there is no doubt that the residents of China are freer and more prosperous than they were under Mao — freer in every dimension except the political".16 This statement rests on the fact that China is uniformly ruled by the Communist Party of China (CPC). Nevertheless, to fully understand the factors that shape economic policy-making in China, the incentives and constraints among the interest groups within China's political structure need to be considered. In general, opposition has taken place within a three-level state structure: The senior leadership, central government leaders and local government leaders.17 [ABSTRACT FROM AUTHOR]

Using data from an unbalanced panel of Chinese listed firms for the period 1996 to 2006, this study examines the frequency, causes and consequences of changes in ultimate share ownership. [ABSTRACT FROM AUTHOR]

The results so far indicate that changes in control are most likely to occur in poorly performing firms — firms that offer the greatest opportunities for value improvement. If changes in control increase firm efficiency, changes in corporate control should be followed by corporate restructuring and ultimately lead to improvements in firm performance. To analyze the consequences of control changes, a univariate and a multivariate analysis are applied. The aim is to test H.5, as outlined in section 2.3. [ABSTRACT FROM AUTHOR]

The purpose of the section is to provide first-hand evidence on the determinants of changes in ultimate share ownership from an unbalanced panel of cross-sectional data of Chinese listed firms over an eleven-year period (1996 to 2006). The aim is to test hypotheses one to four, as outlined in section 2.3. [ABSTRACT FROM AUTHOR]

This study examines the frequency, causes and consequences of control changes using a sample of Chinese listed firms for the years 1996 to 2006. To identify changes in control, a concept of control that is based on ultimate share ownership is applied. This is significant because given the trading restrictions of different share classes and the historical relationship between listed and unlisted parent companies Chinese listed firms are in their majority ultimately controlled by local governments through pyramids or cross-ownership structures. This makes changes in direct ownership less meaningful. [ABSTRACT FROM AUTHOR]

The benefits and costs of control over corporate resources have attracted much attention among financial economists. The debate was originally initiated by Adam Smith's legendary warning in his 1776 published book "An Inquiry into the Nature and Causes of the Wealth of Nations" about the "negligence and profusion" that will result when those who manage enterprises are "rather of other people's money than of their own".1 A century and a half later Adolf Berle and Gardiner Means (1932) returned to the theme of diffuse stock ownership. They argue in their seminal work "The Modern Corporation and Private Property" that modern enterprises face "the dissolution of the old atom of ownership [i.e. small organizations in which the owners where also the managers] into its component parts, control and beneficial ownership".2 This notion of the separation of ownership and control has had a profound impact on economists. Michael C. Jensen and William H. Meckling (1976) modelled the effects of the dispersion of ownership and control by emphasizing "the general problem of agency".3 As economists started to employ this agency perspective, it was mainly in the context of diffuse shareholders and professional managers.4 [ABSTRACT FROM AUTHOR]

Telecommunications is a key element of ICT, and telecommunications regulatory issues have been important in OECD countries for many years. The EU has made progress in telecommunications through the rapid growth of rather unregulated mobile telecommunications (with regulation mainly referring to the licensing process). WELFENS/PONDER (2003) and EITO (2005) have shown that Eastern European countries have considerably caught up in the field of telecommunications. VAN ARK/PIATKOWSKI (2004) have presented evidence that ICT has also contributed to economic catching-up in EU Accession countries. [ABSTRACT FROM AUTHOR]

ICT production continues to be characterized by high growth rates of technological progress, and this largely is due to the interaction of high ICT-intensity of production itself and large economies of scale plus a high R&D-intensity of the sector itself. Sectors using ICT also can be expected to record high rates of productivity growth and of total factor productivity. The use of ICT - often combined with a higher share of skilled workers - will raise productivity in many sectors; to some extent cross-sectoral technology spillovers could play a role. This holds particularly since ICT is a general purpose technology so that progress achieved in sector i in some case should indeed cross-fertilize the progress in sector j (and vice versa). At the same time certain elements of ICT facilitate the diffusion process so that faster diffusion also could help to increase the growth rate. Thus it is a combination of innovation dynamics, higher productivity growth and accelerated diffusion which may be considered as decisive factors of production. [ABSTRACT FROM AUTHOR]

There is no doubt that ICT is a major driver of innovation dynamics in EU countries. Innovation theory suggests that competition generally is conducive to innovation; a natural element of the innovation process is that an innovator is able to fetch a Schumpeterian top-up in the rate of return for the innovation project - this premium is necessary to generate incentives for the innovative company to take on the typically relatively high risk of an innovation project and the associated investment. Typical problems from an innovator perspective concern uncertainty about demand patterns and the uncertainty about counter-innovations from competitors as well as potential extra costs of financing the project. Product innovations are a key element for firms (and countries) to improve competitiveness. As the demand curve will become steeper we will see an increase of consumer welfare. Process innovations might be coupled or associated with product innovations in which case there will be additional consumer benefits. In the context of sustained innovation dynamics in the world economy product innovations are quite important for improved international competitiveness as higher prices fetched in world markets will translate into increased profitability and hence will reinforce the firm's ability to finance investment and innovations in the future. In a macroeconomic perspective high innovation dynamics of a country will translate into international competitiveness and high standards of living. [ABSTRACT FROM AUTHOR]

The European Commission has opened up telecommunications markets in 1998 for several reasons where fear of losing international competitiveness in information and communication technology - considered as crucial for economic growth of the EU - was one major aspect. Another reason was the idea that with digitization and modernization of the telecommunications sector the EU would become a digitally integrated market system with a much more productive use and storage of information and knowledge. The EU countries were largely considered as high wage countries which should specialize more on knowledge intensive and technology intensive products. As globalization increased competitive pressure in labour-intensive production it seemed adequate that member countries of the EU should specialize increasingly on knowledge-intensive and capital-intensive goods and services. The services sector could be expected to expand strongly once that digital outsourcing of services in general and telecommunications services in particular would be cheaper and better. [ABSTRACT FROM AUTHOR]

At the beginning of the 21st century the world economy is shaped by intensified competition and globalization, respectively. Part of expansion and internationalization dynamics are related to information and communication technology (ICT) which is not only stimulating productivity and output growth - and hence trade - but also bringing new eCommunication structures in OECD countries and worldwide. With more broadband networks becoming available in many countries there are novel opportunities for enhanced digital networking and there are additional incentives for digital product innovations. As ICT expansion reduces information and transaction costs it will affect trade and capital flows in the single market and in the world economy. [ABSTRACT FROM AUTHOR]

In the preceding chapters, we have studied the creation of new businesses as independent startups. However, we recognize that many well-established and large companies do, in fact, engage in entrepreneurial activity. Corporate entre¬preneurship (CE) may be broadly viewed as (1) the creation of new businesses within existing organizations, either through internal innovation or joint ventures and alli¬ances, or (2) the transformation of organizations through strategic renewal. Large firms embark on CE for various reasons (why) and using various approaches (how), which we will now explore in more detail. [ABSTRACT FROM AUTHOR]

Entrepreneurs invest much time, money, and personal energy into building their ventures; at some point in the future, adequate rewards are expected. The process of turning some of the value created into hard cash for the entrepreneur is referred to as harvesting. It is in effect the realization of one of the key objectives of venturing - the increase in personal wealth and financial well-being. Harvesting should never be thought of as a terminal activity, or the end of the process. Rather, it is a necessary step toward recycling the entrepreneurial talent and capital, offering the entrepreneur the opportunity to take his or her money out, partly or entirely, to pursue other plans and ventures. It is a starting point rather than an end point. [ABSTRACT FROM AUTHOR]

A fundamental characteristic of many entrepreneurial ventures is the imbalance between the resources currently controlled and those needed to capitalize on the opportunities. Few ventures truly face pure financing problems, but rather more complex "resourcing" issues, i.e., how to gain access to the extensive collection of resources needed to succeed, such as management skills, distribution channels, networks, technology, and the like. In many instances, money will indeed provide access to those resources. But when there are funding constraints, where access to finance is not unlimited or is associated with huge costs, it becomes critical to use the fundraising exercise in a more creative manner, as a holistic approach to resourcing the firm. This chapter will focus on how to develop a proper financing strategy for early-stage, higher risk ventures, which investors to target, and how to develop a compelling investment case. [ABSTRACT FROM AUTHOR]

A promising opportunity has been identified, a skilled team assembled, a compelling business plan written, and the initial financing secured. Yet this is not the time to lean back - the journey has just started. Now, the venture is supposed to grow and leverage its first sales. Growth, however, entails new challenges and requirements. In this chapter we look at the leadership and management qualities of the new venture team and the organization-building capability required of the entrepreneurial manager. In addition, we will explore different growth strategies and highlight some challenges to be mastered along the way, which are also evident in the case examples included here. [ABSTRACT FROM AUTHOR]

Having great ideas and singling out the great opportunity is only the first step in a long journey to a viable venture. The next steps typically need some planning, mostly packaged into what will eventually become a "business plan." The exercise of putting a business plan together is a helpful one, and by the end of the process you will have a document that helps you and potential investors think about how promising the venture truly is. This chapter covers the whys and how-tos of a business plan in depth, looking at the main parts and why they are important, as well as what to do with your business plan. In addition, we will look at other common themes characteristic of the early phase of technology startups such as product development and marketing and communications strategy, as well as issues of intellectual property. [ABSTRACT FROM AUTHOR]