Differences of economic development and ways of cooperation in the Slovak- Hungarian cross border region
KATALIN NAGY – NÓRA SERFŐZŐ
The article gives an overview of economic processes in the Slovak-Hungarian border region. The main conclusions are based on the main findings of a Slovak- Hungarian cross border migration project funded by the Hungary-Slovakia Cross Border Cooperation Programme 2007-2013. According to the authors economic and welfare differences between the two sides (Western and Eastern parts) of the Slovak- Hungarian border remained substantial in the post-crisis period. This applies both to the Slovak as to the Hungarian border region. Whilst on the Eastern part Slovak NUTS III regions are more advanced as compared to the Hungarian counties, on the Western half of the border the picture is more differentiated. Losses due to the global crisis could be totally offset in the Western border region part; this was only partially the case in case of the Eastern part of the border. The authors look at the period 2008 to 2013 and give a comprehensive analysis on regional differences based on macro- economic and enterprise data and try to find explanation for the stubborn differences and the slow progress of economic cooperation.
Restraints of competition, unlevel playing fields after full postal liberalization
PÁL VALENTINY
Recent experiences in the market opening of network industries predict an increasing role of competition policy. Newcomers may compete with incumbents hoping the prohibition of competitive constraints. Postal services as network industries are traditionally bound to economic regulation. The efficient coexistence of competition policy and economic regulation has overriding importance in approving state aids which comply with EU laws. Both the financial health of universal service providers and the gains from increasing competition should be achieved during the regulatory process. The third postal directive restricted the intervention of regulatory agencies to the conditionality of universal services, but they are also strengthened with greater discretionary power.
Regulatory bargain in free market environment: the Budapest taxi market – a case study
PÁL RÉTI
In April 2013, the Assembly of the Budapest Municipality radically transformed the taxi-market in Budapest. This case study analyses the events that led to this decision and also the measure’s immediate impact. The study is part of the research project, titled ‟The Unexpected Consequences and Impacts of the Market Regulation”, financed by the Hungarian Scientific Research Fund. The new rules were aimed to establish “law and order” in the taxi-market, and basically correspond to the main trends applied worldwide – although the municipality failed to do any studies concerning the international developments in this area. It soon became obvious that the trade unions and the employees’ organizations, in their negotiation with the Budapest local Government, (ongoing from 2011) got into a subordinate position, due to their weak legitimacy. The mayor could successfully divide the participating interest groups. The unrealistic new rules had to be modified as soon as two months after their introduction. Even after this modification, the new rules impose uniform tariffs in a market, which previously had been extremely segmented: different tariffs applied to cruising on the street, preordering by phone, or hiring a taxi based on long term agreement. The result of the new rules could surprise the Municipality, if players outside the regulated market increase their share significantly.
Overcoming asymmetric information in venture capital finance
SEJLA AMAN – ANITA LOVAS
Venture capital investors aim to invest in potentially prosperous companies with high-yielding projects, operating in innovative industries. In return for their investments, they gain share in their portfolio companies. Apart from providing capital, they also contribute with their management expertise and personal network to guarantee the success of the enterprises. Significant value creation can be achieved through the active participation of both the entrepreneur and the investor. In our research we committed to explore mechanisms that facilitate mutual interest and participation of all parties during VC investments. In the first part of the research – based on international literature – we present problems emerging during the investments, namely adverse selection and moral hazard situations, and we also investigate some of the mechanisms used by the parties for problem solving. In the second part of the research, we present the results of interviews conducted with the VC managers of Hungarian VC funds. Some of the findings include the rare use of convertible securities, or the frequent use of staged financing or options connected to certain, predefined conditions or sanctions.
Innovation of Innovations. New Innovation Types in the Global Economy
BALÁZS HÁMORI – KATALIN SZABÓ
In the last two decades innovation has undergone cardinal changes: new actors appeared on the scene, the role of innovation appreciated in the economy. In many cases, the innovation process itself takes place in an unusual way as well. Unknown types of innovation (reverse innovation, crowdsourcing, etc.) surface, which could redraw the global innovation map. The authors’ aim is twofold: 1. By presenting the new types of innovation they urge a more detailed examination of these new forms, while seeking answers to whether there is a relationship between the new versions of innovation that are ever increasingly coming to the fore, or they are independent from each other. 2. They also draw attention to that the traditional Schumpeterian or the OECD classifications are needed to be amended in three respects: 1. Capital-intensive and low capital requiring (“barefooted” as called by the authors) innovations should be differentiated according to their resource requirements; 2. Differentiation should be made according to their place of birth within a company or within a network; 3. Also, innovations should be delineated according to global orientation, whether they are born in the developed world and are spreading from there or they are reverse innovations (wholly or partially developing in the less developed economies and spreading from there). When establishing the international rankings, collecting data according to these suggested new classifications would provide a more realistic picture compared to the current approaches.
Legal supplement
The La Poste case (2012) Closer view on widely defined state aid
OLIVÉR CZÉKMÁNY
The state aid regulation has always been a special part of European competition policy. The aim of this article is to present a major CJEU case in order to take a closer look at Member States’ different actions effecting competition, and to highlight the frameworks of a well-built defence system against unjust actions. In this regard, to summarize the findings of the French La Poste case of 2012 seems to be an approp- riate subject. As a result, we will see that the European Commission does not have to prove the existence of state aid with numerical data and economic/business statistics and that every action of a Member State intended to potentially threat the distortion of competition are incompatible with the single European market.