<abstract xmlns="http://www.w3.org/1999/xhtml">The main aim of the paper is to investigate the empirical relationship between research and development (R&amp;D) expenditures and economic growth in the European Union member states in the period of 2000–2013. The empirical analysis is based on panel data regressions. The estimated model is the production function type standard growth model extended with R&amp;D stock variable. The results show a statistically significant impact of R&amp;D expenditures on the economic growth in the EU countries. The significance for R&amp;D coefficient remains robust to different sub-periods, but the level of significance decreases as a sub-sample of new EU countries was considered.</abstract>

Research and Development Expenditures and Economic Growth in the EU: A Panel Data Analysis

<abstract xmlns="http://www.w3.org/1999/xhtml">The paper aims at modelling the electricity generator’s expectations about price development in the Latvian day-ahead electricity market. Correlation and sensitivity analysis methods are used to identify the key determinants of electricity price expectations. A neural network approach is employed to model electricity price expectations. The research results demonstrate that electricity price expectations depend on the historical electricity prices. The price a day ago is the key determinant of price expectations and the importance of the lagged prices reduces as the time backwards lengthens. Nine models of electricity price expectations are prepared for different natural seasons and types of the day. The forecast accuracy of models varies from high to low, since errors are 7.02 % to 59.23 %. The forecasting power of models for weekends is reduced; therefore, additional determinants of electricity price expectations should be considered in the models and advanced input selection algorithms should be applied in future research. Electricity price expectations affect the generator’s loss through the production decisions, which are made considering the expected (forecasted) prices. The models allow making the production decision at a sufficient level of accuracy.</abstract>

Modelling Electricity Price Expectations in a Day-Ahead Market: A Case of Latvia

<abstract xmlns="http://www.w3.org/1999/xhtml">Idea management and web-based idea management systems application situation and potential in Latvia have been identified by applying qualitative and quantitative methods – community survey and expert interviews.It has been found that there is a tendency in Latvia that ideas in the organisations are generated within the frame of the same groups of people and there is no definite idea management system or effective idea management. It is important to stress that the results of the research also show that web-based idea management systems are not widely used in Latvia, but there is a perspective to apply them in private, public and academic sectors. Perspective areas to apply web-based IMS are cultivation of open and user-driven innovation, encouragement of civic participation, contribution to public communication and a wide range of creative cultural promotion.</abstract>

Idea Management and Web-Based Idea Management Systems Situation and Potential in Latvia

<abstract xmlns="http://www.w3.org/1999/xhtml">Statistical data on innovation in Latvia, at a current stage, were applied only to the particular areas of developing and planning of Latvian innovation support strategies. The aim of the paper is to show Latvian innovative performance and to provide proposals on making statistical data on innovations more useful for the analysis of innovativeness of Latvia. Research methods: bibliography review and methods of statistical analysis, such as processing and comparative analysis.</abstract>

Aspects of Statistics on Innovation in Latvia and Some Guidelines for Its Effective Use

<abstract xmlns="http://www.w3.org/1999/xhtml">The aim of the current research is to examine publicly available project risk registers to find correlations between the project management theory, especially project risk management, and practical results of real project risk management – the risk registers publicly available on the Internet.In the research, the author has analysed the compliance between the theories of the project risk management described in the “Aid Delivery Methods. Volume I. Project Cycle Management Guidelines” and “Caltrans Project Risk Management Handbook, Threats and Opportunities, Second Edition, Revision 0” and the project risk registers.In the previous studies, the author concluded that after analysing just 30 risk registers significant differences could be found between the risk register described in the theory and risk registers of real projects. The results of the theoretical analysis of the notion “risk” provide information for deeper analysis of the risk registers publicly available on the Internet.</abstract>

Project Risk Register Analysis Based on the Theoretical Analysis of Project Management Notion of Risk

<abstract xmlns="http://www.w3.org/1999/xhtml">The purpose of this study is to show that financial management in the firm is a tool for achieving stable firm growth and long-term firm stability while problems in firm financial management lead to the inability of firms to ensure sustainable growth of their value.This problem is relevant for firms in all countries. The main objectives of this paper are: to analyse dynamics of value of the largest Latvian firms, to determine the drivers of these dynamics and to establish the main problems slowing the growth of firm value, which are related to the drawbacks in financial management, and to provide suggestions for solving these problems.This study analyses financial management processes and identifies several key problems in financial management.</abstract>

Financial Management as a Tool for Achieving Stable Firm Growth

<abstract xmlns="http://www.w3.org/1999/xhtml">In response to a dramatic increase of illegal immigration in the European Union, in the fall of 2015 Latvia agreed to accept several hundreds of refugees on its soil. Nevertheless, Latvian society remains very sceptic about these plans, and reportedly demonstrates strong negative attitudes towards refugees. According to the survey, by the end of 2015 the factual experience of interaction with refugees did not exceed ten per cent of Latvian population. This suggests that most of the real attitudes are formed by mass media and other socialisation agents. In order to uncover the nature of these feelings, the present study has been designed to make an in-depth social psychological study on attitudes. One thousand Latvian residents evenly representing Latvia’s demography have taken part in this study. A modified Stephan’s Prejudicial Attitude Survey has been used to study prejudice. Negative stereotyping represents one of the emotional components of attitudes towards refugees. The results illustrate the palette of emotions and the level of their expression in Latvian society, and highlight the feelings, which may shape the identity of the in-group.</abstract>

Expecting Refugees in Latvia: Negative Stereotyping

<abstract xmlns="http://www.w3.org/1999/xhtml">The transport infrastructure and state-owned enterprises (SOEs) have a significant effect on competitiveness of transport industry, and indirectly determine the business environment in related sectors. In Latvia, all transport related state strategies and policies are developed, controlled and overviewed by the Ministry of Transport. Eleven companies are engaged in commercial/non-commercial activities, and evaluated whether the liberalization of certain activities would provide efficiency among SOEs in the transport industry of Latvia, given the sectoral weight and share of State involvement and control of the industry.There is limited and contradictory debate to what extent the Latvian state should involve in business activities of transport industry, and how to balance the multiple interests and targets of business, society and politics.The present research is based on the scientific papers, official documents of the World Bank and OECD (Organisation of Economic Cooperation and Development), company websites and annual reports.</abstract>

Development of State-Owned Enterprises of Transport Industry in Latvia

<abstract xmlns="http://www.w3.org/1999/xhtml">The household income is an important economic indicator because it determines the scale of the household sector consumption and its delay in future in terms of saving and investing. Many factors influence the magnitude of household income and one of these factors is taxation. Given the significance of tax payments not only for household income, and through them – for the national economy, the object of the current study is the household income and in particular the impact of the taxation framework on the formation of disposable income. The aim of the study is to examine the changes in the monetary income of households in the Republic of Bulgaria as a function of the implemented tax reforms in the period following the country’s accession to the EU.</abstract>

Tax Impact on Household Income

<abstract xmlns="http://www.w3.org/1999/xhtml">Introduction of work-based learning (WBL) in Latvia has required new approaches in decision making of different stakeholders. Experience from countries with long-standing WBL tradition has shown the numerous advantages but also the challenges this approach presents. One of these challenges is the need for new forms and mechanisms of cooperation among the key stakeholders – policy makers, public administrators, employers, educators and social partners. The current paper analyses the results of scientific research in this field, as well as uses the empirical results of two surveys performed by the authors: a survey of public sector experts and a survey of employers in Latvia. In order to obtain detailed results, the evaluations of respondents on multiple aspects analysed in the surveys were evaluation in the scale 1–10. The data of both surveys have been analysed by descriptive analysis, cross-tabulations and multivariate analysis – factor analysis. The results have indicated that the views of employers and social partners on the most of the key aspects of introduction and implementation of WBL are similar. However, a more profound analysis has to be performed in order to develop proposals or the most efficient approach to WBL.</abstract>

Role of Social Partners for Work-Based Learning: Results of Surveys

<abstract xmlns="http://www.w3.org/1999/xhtml">The present paper applies recently developed consolidated indicator of the state financial security to the situation in Baltic States and some EU countries. The indicator summarises a number of economic and financial parameters relevant to the financial independence of the country. The resulting indicator demonstrates a reasonable correlation with sovereign Fitch rating both for Baltic States and the “old” EU countries, but Fitch rating gives more optimistic evaluation for old EU countries.</abstract>

Financial Security in the Baltic States: Comparison with Selected EU Countries

<abstract xmlns="http://www.w3.org/1999/xhtml">The paper presents theoretical issues of social innovation measurement due to its multidimensional context. The purpose of this paper is to review the theoretical background on the topic of social innovation concept and TBL approach and to propose the conceptual model for measuring the value of social innovation at an organisation’s level.The proposed measurement process for social innovation consists of four stages, which cover selection and implementation of the social innovation, identification of the scope of the social innovation, measurement and calculation of the consolidated index. Indicators for measurement value of social innovation are applied using the TBL approach. The conceptual model could be applied as a methodology for measuring value of social innovation.</abstract>

Measurement of Social Innovation at Organisation’s Level: Theoretical Issues

<abstract xmlns="http://www.w3.org/1999/xhtml">The purpose of the article is to explore opportunities for rethinking the strategy of small and medium enterprises (SMEs) using the “Blue Ocean” concept and its inherent value innovation paradigm as an alternative to the traditional competitive strategy rationale. The paper also highlights important aspects of analytical tools of a relatively less known practice for Bulgaria, such as the “Strategy Canvas”, the “Four Actions Framework”, the “Eliminate-Reduce-Raise-Create Grid” and the “Six Paths Framework”, and shows how to apply them when analysing and creating a new and uncontested market space. Special attention is paid to the possibilities concerning the practical use of the described tools in a leading SME from the Bulgarian knitwear industry.</abstract>

University of National and World Economy – Sofia

Using Key “Blue Ocean” Tools for Strategy Rethinking of a SME: A Case from the Bulgarian Knitwear Industry

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Volume 37 (2023): Issue 1 (January 2023)

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