• Environmental and Resource Economics Review
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• v.18 no.1
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• pp.1-22
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• 2009

The primary purpose of ITQ (individually transferable quota) is to reduce the overcapitalization problem in the open-access fishery. It has been argued that the least cost-efficient vessels under ITQ may exit first from the fishing by selling their quotas, thereby also reducing the excess capital. The purpose of this paper is to provide a case when ITQ may prompt the exit of less cost-inefficient vessels in the presence of irreversible exit cost which is proportional to the cost-inefficiency. Real option model is adopted in order to analyze the source of hysteresis associated with fishery exit decision. By linking the interaction between vessels' adjustment costs, cost-efficiency of harvest and uncertainty of fishery return, we show that cost-inefficient vessels will not exit always first from the fishery in contrast to the conventional wisdom. Relevant policy implications is discussed.

• Journal of Technology Innovation
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• v.22 no.1
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• pp.119-147
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• 2014

Technology competition is becoming a core element to get a competitive advantage in the market economy and its importance has been growing rapidly. Therefore, lots of studies on technology competition have been conducted and diversified. We focused on 'Sailing ship effect' which accelerates innovation in the old technology in response to the threat of the new technology. We found that previous studies had suggested the factors causing 'Sailing ship effect' from the viewpoint of either market or competitor. However, there are a lot of limitations to analyse the status and establish strategies. Hence, we hereby suggest a new technology competition analysis model considering market, technology and especially competitors at once by classifying the results of technology competition: 1) Replacement, 2) Status Quo, 3) Co-existence, and 4) Sailing ship effect. In this paper, we apply three cases to the suggested model in order to judge whether it is reasonable or not and confirm that it explains many cases related to 'exit delay' of a dominant technology. We expect this study will contribute to forecasting the results of technology competition and establish a response strategy if it enters into general use.

• Management & Information Systems Review
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• v.31 no.3
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• pp.223-248
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• 2012

This study analyses support policy and structural change of textile industry in Daegu Kyungbuk region, and suggests major issues for textile industry's innovation. In Daegu Kyungbuk, it was 1999 that a policy, so called Milano Project, in order to promote a textile industry was devised. In 2004, the Regional Industrial Promotion Plan was devised. The plan was born from a view point of establishing a regional innovation system and of promoting the innovative clusters under a knowledge based economy. After then, the Regional Industry Promotion Project or Regional Strategic Industry Promotion Project became a core of regional textile industrial policy. Research results indicated that the first stage Milano project (1999-2003) showed both positive and negative effects. There were no long-term development plan, clear vision and strategy. But, core industrial infrastructure for differentiated product development, such as New product Development Support Center and Dyeing Design Practical Application Center, was constructed. The second stage Daegu Textile Industry Promotion Plan (2004-2008) displayed a significant technological performance and new product sales with the assistance of Kyungbuk province. Also, textile industry revealed positive fruits such as financial structure, productivity, and profitability as a result of strong restructuring. In industrial structure, there was a important change from clothe textile material to industry textile material. Most of textile companies did not showed high capability in CEO's technology innovation intention, entrepreneurship, R&D and human resource competency in compare with other industry. We suggested that Daegu Kyungbuk has to select and concentrate on the high-tech textile material and living textile for sustainable development and competitiveness. We also proposed a confidence and cooperation based innovation network and company oriented innovation cluster.