Tatjana Muravska, Gunnar Prause (eds.)

European Integration and Baltic Sea Region Studies:

University-Business Partnership

through the Triple Helix Approach

Volume II

BWV • BERLINER WISSENSCHAFTS-VERLAG

Regional Business and Socio-Economic Development

Herausgegeben von

Gunnar Prause, Hochschule Wismar / Technische Universität Tallinn Jost Kramer †, Hochschule Wismar

Juhani Laurinkari, Universität Kuopio Tatjana Muravska, Universität Lettlands

Jüri Sepp, Universität Tartu

Band 6

Tatjana Muravska, Gunnar Prause (eds.)

European Integration and Baltic Sea Region Studies:

University-Business Partnership through the Triple Helix Approach

BWV • BERLINER WISSENSCHAFTS-VERLAG

Bibliografische Information der Deutschen Nationalbibliothek

Die Deutsche Nationalbibliothek verzeichnet diese Publikation in der Deutschen Nationalbibliografie; detaillierte bibliografische Daten sind im Internet über http://dnb.d-nb.de abrufbar.

ISBN 978-3-8305-3028-2

© 1. Auflage 2012 BWV • BERLINER WISSENSCHAFTS-VERLAG GmbH, Markgrafenstraße 12–14, 10969 Berlin E-Mail: bwv@bwv-verlag.de, Internet: http://www.bwv-verlag.dePrinted in Germany. Alle Rechte, auch die des Nachdrucks von Auszügen, der photomechanischen Wiedergabe und der Übersetzung, vorbehalten.

Editorial BoardVice-Rector for Research Indrikis Muiznieks, University of Latvia, LatviaDr. Alexandre Berlin, Honorary Director, European CommissionProf. Dr. Giorgio Dominese, Tor Vergata University, Rome, ItalyProf. Dr. Elena Dubra, University of Latvia, LatviaProf. Dr. Manfred J. Holler, Hamburg University, GermanyProf. Dr. Kestutis Krisciunas, Institute of Europe, Kaunas, LithuaniaProf. Dr. Zaiga Krisjane, University of Latvia, LatviaProf. Dr. Tatjana Muravska, University of Latvia, LatviaProf. Dr. Sanita Osipova, University of Latvia, LatviaProf. Dr. Roman Petrov, Kyiv-Mohyla Academy, UkraineProf. Dr. Gunnar Prause, Wismar Business School, GermanyProf. Dr. Juris Rozenvalds, University of Latvia, LatviaProf. Arild Sæther, Agder University, NorwayProf. Dr. Biruta Sloka, University of Latvia, Latvia

The contributions have been double blindpeer reviewed.

Layout and cover design: Berliner WissenschaftsverlagProof readers: Denize Ponomarjova, Anna Galante, Anna Tobin, Marcel Sangsari

This publication is supported by the Baltic – German University Liaison Offi ce in Riga, Latvia,Wismar Business School, Germany and Doctoral School European Integration and Baltic Sea Region Studies, University of Latvia, Latvia.

Diese Publikation wurde vom Baltisch-Deutschen Hochschulkontor mit Mitteln des Deutschen Akademischen Austausch Dienstes (DAAD) erstellt.

V

Contents

Acknowledgement 1

Preface 3

1. Institutional Development and Business EnvironmentEffectiveness of Law, Values, and Subsidiary Sources of Lawby Di�na Apse 6

Dif� culties of Performance Budget Introduction – Based on German Experiencesby Stefan Grzesiak and Katarzyna Stieger 19

Comprehensive Economic and Trade Agreement between EU and Canada as an Example for Business and University Cooperationby Valters L�cis 31

Pharmaceutical Pricing and Reimbursement Policies in European Countriesby Eva Liepi�a 42

Development of Environmental Infrastructure in Latvia: Evaluation of the Resultsby Juris Spiridonovs 53

Employment Policies and Industrial Relations: Research Issues and Practical Applicationsby Sergejs Stacenko 63

The Salary Gap between Men and Women in the Baltic States by Agate Za�e 80

Post Crisis (2012) Shifting of Consumer Behaviourby Anna Zhigalova 91

2. Management, Education and Demographic TrendsOptimisation Models in Businessby Aleksandrs Dahs 106

Recent Trends and Actualities for Development of Professional Education in Mechanical Engineering and Metalworking Industries in Latviaby Art�rs Graudi�s and Biruta Sloka 116

Contents

VI

Design Management and Branding for SMEs: Experiences from the DesignSHIP Projectby Achim Hack, Gunnar Prause and Laima Maknyte 129

Excessive Control over the University Business by Member States of the EU: Killing the Goose that lays the Golden Egg?by Tanel Kerikmae and Lehte Roots 149

‘Europe 2020’: Human Resources and Competitiveness in the Baltic Sea Macro-Regionby Aksel Kirch, Marika Kirch, Mikhail Rodins and Vladimir Mezentsev 162

On Comparison of the Black-Scholes and the Black-Merton Stochastic Modelsby Henryk Kowgier 171

Re-evolvement of Cooperative Structures in Estoniaby Rünno Lumiste, Gunnar Prause and Einar Eiland 182

University-Business Interaction in the Context of Demographic Changeby Gunnar Prause and Kristina Hunke 188

3. Innovation, Energy and Cluster PoliciesInformation Technologies and Internet Exploitation in Micro and Small Enterprises in Regions of Latviaby In�ra Kant�ne and Biruta Sloka 202

Adoption of Renewable Energy and Innovation Process in Mecklenburg-Vorpommern (Germany), Estonia, Latviaby Ants Kukrus and Rünno Lumiste 213

University-Industry Cooperation – Facilitation, Motivational System for Innovation and Economic Bene� ts, the Case of Latviaby Gints Turlajs, Viktoriia Riashchenko and �irts Lapi�š 225

Triple Helix Cooperation Opportunities in the Clusters’ Framework: Examples of Latvian Clusters by Zane Zeibote and Elita Liela 236

4. Regional Dimension and University Business PartnershipAdvantages of Latvia in Economic Cooperation with the EU Eastern Partnership Countries: the Role of Universityby J�nis Apr�ns and Rom�ns Put�ns 254

VII

“Place-Based” Approach and Innovation in Cohesion Policyby L�ga Balti�a and Tatjana Muravska 268

The State Border Concept as Element of National Sovereignty of the Republic of Latvia and its Legal Evolutionby Art�rs Gaveika 282

Northern Europe Shaping (New) Northern Geopoliticsby Lassi Heininen 292

Analysis of Local Development Patterns of Three Baltic Capitals Applying Shift-Share Analysisby Normunds Strautmanis 307

Public and Private in Space: Values, Legal Practice and Land-Use Planning in Latviaby P�teris Š�i��is, Armands Pužulis and Silvija Meiere 319

Concluding Remarks 335

Contents

1

Acknowledgement

The Volume II as a collection of studies devoted to the Business-University and Eco-nomic Environment research concept and supported by different institutions. We would like to express our deepest gratitude to the staff of the Centre for European and Transition Studies at the University of Latvia for organisation of the discussions related to research presentations by scholars from different universities and business representatives from across EU countries at the workshops and roundtable debate “University-Business Partnership through the Triple Helix Approach” in September 2011 at the University of Latvia, the support of Doctoral School European Integration and Baltic Sea Region Studies, Jean Monnet Centre of Excellence at the University of Latvia, Wismar Business School in Germany and Baltic – German University Liaison Of ce in Riga. The � nancial support from Baltic – German University Liaison Of ce in Riga for this publication is gratefully acknowledged. Our appreciation to all of the contributing authors who have enriched the debate on university- business partnership exploring the role of the research done in academia for innovative business development and stimulating social and economic environ-ment. Our special thanks to the Editorial Board for reviewing articles submitted for publication.Finally, we would like to express our thanks to Denize Ponomarjova, Ari Sales, Jay-son Dong, Anna Galante, Anna Tobin and Marcel Sangsari interns from Canadian universities network on European Studies and EU Canada Study Tour for proof read-ing of the book.

Tatjana Muravska Gunnar Prause

3

Preface

In times of economic hardship it is important that businesses, universities and govern-ments collaborate in research, innovation and development. With no clear end to the cur-rent economic situation in Europe, there is more need than ever for strategic partnerships and discussions between all partners involved in business-university partnership. This Volume II is the second publication of research outcomes speci� cally related to workshops and roundtable debates on issues of university-business and government partnership and development of stimulating socio-economic environment. The aim of the publication is to exchange ideas about cooperation between enterprises and universities as one of the key priorities for the economic renewal in the EU in gen-eral and in the Baltic Sea Region (BSR) in particular, to help to facilitate business ac-tivities and education in the BSR, and to provide a forum for debates of the assess-ment of the current status of European integration. The publication highlights the role of universities in social and economic development of regions as the third task of uni-versities and a new trend in regional innovation strategies. Articles of the publication contribute to the discussions of this new trend in the BSR and Baltic States. A special feature of the Riga Conference was the Round Table Discussion on the is-sue of “University-Business Partnership through the “Triple Helix Approach”, which united in discussions leaders of business organisations, representatives from respon-sible government institutions, and public research and education experts. The Round Table provided a platform for participants to express their ideas on strategic partner-ships between businesses and universities and governments. It was open to public au-thorities, NGOs and civil society and was intended to facilitate discussions between all stakeholders.During the discussion between the Round Table participants – Ari Koski, Gunnar Ljungdahl, Rünno Lumiste, Gunnar Prause, Maris Purgailis, Merli Reidolf and Pavel Strach – ideas have been exchanged about new models and experiences of university-business cooperation as a corner stone for the European Growth Strategy EU2020. It was concluded that the third task of universities in regional development through edu-cation, gained knowledge and skills embodied in the concept of the “learning region” is crucial for the improvement of the environment of entrepreneurship and innovation transfer in the Baltic Sea Region; the Round Table also facilitated discussions among stakeholders.This publication “Business University Partnership and Socio-Economic Environment” is an important contribution to the debate, on the role of universities in raising the ef� -ciency of real economy sectors; it offers the views of academia, researchers and prac-titioners from a variety of disciplines, different generations and countries. Many hold views, which illustrate important clashes of different opinions that occur in this debate on themes such as: consequences of the economic and � nancial crises of

Preface

4

2008–2010, Eurozone and public debt crises 2010–2012, employment and industrial policies, legal issues, cohesion, education and training research, competitiveness, uni-versity-business cooperation and promotion of entrepreneurship and innovation.Please enjoy reading this publication; the next collection of articles related to issues of European Integration and Baltic Sea Regional Studies will be published as a jour-nal on a regular basis.

Tatjana Muravska Gunnar Prause