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The first-ever European Defence Industrial Strategy and its financial leg, the European Defence Industrial Programme, saw the light of day in March 2024. The strategy seeks to ameliorate deficiencies in EU defence readiness identified in light of the Russo-Ukrainian war. It offers an ambitious agenda and tailor-made incentives designed to encourage EU member states to invest more, better, together, and European. The Jacques Delors Institute’s Associate Research Fellow Thierry Tardy and the Jacques Delors Centre’s Security Policy Fellow Sascha Ostanina argue that the strategy is a good start to motivate European countries for more action in the defence sector. However, as long as the EU fails to take on a larger defence mandate via treaty change, the strategy success will hinge upon whether the member states, and their respective industrial defence sectors, will be willing to step up to the plate.
While psychotherapy has been shown to be effective in treating depression, take-up remains low. In a sample of 1,843 depressed individuals, we document that effectiveness concerns are top-of-mind when respondents consider the value of therapy. We then show that the average respondent underestimates the effectiveness of therapy and that an information treatment correcting this misperception increases participants’ incentivized willingness to pay for therapy. Information affects therapy demand by changing beliefs rather than by shifting attention. Our results suggest that information interventions that target the perceived effectiveness of therapy are a potent tool in combating the ongoing mental health crisis.
Contrary to conventional wisdom, even Xi Jinping, who is often depicted in the media and pundit world as having centralized control over nearly every dimension of Chinese governance, still must rely on powerful technology corporations to carry out his will in the increasingly important Internet sector. This suggests a model of political control significantly more nuanced than most observers realize. This chapter argues that Xi Jinping does not rule the Internet and more specifically social media via a tight command-and-control structure, which implies that he is the ultimate decision-maker and companies simply implement his policy decisions. Instead, the chapter demonstrates based on process-tracing that China’s governance of the Internet is best understood as a corporate management model, whereby the Chinese state engages in a partnership with technology companies. Xi Jinping assumes a leadership role enforced by state instruments of control and cooptation strategies. At the same time, the state remains dependent on companies due to their informational, organizational, and institutional resources.
Contracts for differences are widely seen as a cornerstone of Europe's future electricity market design. This paper is about designing such contracts. We identify the dispatch and investment distortions that conventional CfDs cause, the patches used to overcome these shortcomings, and the problems these fixes introduce. We then propose an alternative contract we call “financial” CfD. This hybrid between conventional CfDs and forward contracts mitigates revenue risk to a substantial degree while providing undistorted incentives. Like conventional CfDs, it is long-term and tailored to technology-specific (wind, solar, nuclear) generation patterns but, like forwards, decouples payments from actual generation. The proposed contract mitigates volume risk and avoids margin calls by accepting physical assets as collateral.
Combined survey and web tracking data have great potential for social-scientific research. They allow linking information on online behavior with data on reported offline behavior, opinions, and attitudes. At the same time, ethical, legal, and technical challenges make it difficult to disseminate linked web tracking data to the scientific community. This whitepaper aims to address these challenges by providing guidance for researchers and archivists, discussing legal, practical, and ethical aspects, disclosure risks, and establishing a framework for publishing web tracking data. Recommendations for best practices are also provided based on experiences from a research project funded by the German Consortium for the Social, Behavioural, Educational and Economic Sciences.
Developing innovative, eco-friendlier products that gain traction in the mass market remains a persistent challenge for many firms. To bring consumers to choose “greener” alternatives over conventional products, firms need to overcome prevailing product evaluations that favor traditional solutions. Research on valuation entrepreneurship examines the strategies that actors apply to induce changes in established evaluations. Adding to the emerging literature on valuation entrepreneurship, our study analyzes how the car maker Tesla, Inc. used product design—material artifacts' properties of form and function—to advance the public perception of battery electric vehicles (BEVs). When Tesla entered the market, several firms had tried to promote BEVs as a way of making private mobility more environmentally friendly, but with limited success. In contrast, Tesla produced well-received BEVs that generated enormous consumer interest and led to a more favorable assessment of BEVs as a whole. Drawing on 54 interviews and nearly 2000 pages of archival data, our abductive study identifies three product design strategies that increased the appeal of Tesla's initial models: (1) incorporating discontinuous technological solutions; (2) optimizing the products on traditional evaluation criteria (e.g., driving performance, comfort, space, status); and (3) creating an ecosystem of complementary products. Since some design choices came at the expense of a minimal environmental footprint, they risked attracting blame for compromising on the environmental performance of potentially eco-friendly cars and for committing “greenwashing.” To minimize this risk, Tesla complemented its design strategies by employing three strategies of reputational politics to avoid such blame. After Tesla's initial, lavish models had improved the public perception of electric cars, Tesla and other car makers were able to sell less excessive and more sustainable BEVs in much greater quantities than ever before. Our findings contribute to three literature streams and generate valuable insights for management practice.
In 2019, Ursula von der Leyen promised a geopolitical Commission. Back then, the proclamation was largely derided as empty rhetoric. However, in recent years, a dizzying number of geoeconomic initiatives have come from Brussels, revising and tweaking existing tools and measures, developing new instruments, and announcing a grand new European Economic Security Strategy. This policy brief examines the progress made and outlines the key challenges for the next Commission. While the current Commission expanded the EU‘s geoeconomic toolbox, the incoming Commission must prioritise harmonisation to prevent fragmentation, allocate substantial funds to enhance resilience, and streamline institutional processes to facilitate coherent policymaking at a European level.
Research on corporate sustainability has started to acknowledge the role of temporality in creating more sustainable organizations. Yet, these advances tend to treat firms as monolithic and we have little understanding of how different temporal patterns throughout an organization shape perceptions of and actions toward sustainability. Building on studies highlighting how the temporal structures of work shape employee engagement with different organizational processes and issues, we seek to answer: How does the temporality of work practices structure perceptions of corporate sustainability throughout the firm? Using data from an ethnography of a small European sustainable bank, we provide an account of the variety of ways in which employees in different departments perceive the bank and how they engage with sustainability. We then go on to show how the temporal structures of work practices within different departments help explain some divergence in perceptions of sustainability. Our study highlights the variegation of temporal structures in organizational processes of meaning-making and its role for a better understanding of the efforts to make corporations more sustainable.
The paper explores the role of social partnership for facilitating processes to reduce greenhouse gas emissions in Europe. Social partnership can help to facilitate the transition to lower emissions by negotiating the costs and benefits of climate reducing policies with the workers affected. At the same time, social partnership is stronger in sectors, which have high emissions and might be tempted to reduce the speed of phasing out high emission production processes. The paper uses data from the Structure of Earnings Survey to examine the relationship between bargaining coverage, unionization, wages and industry emissions in EU member states. It analyses these relationships in the context of different growth trajectories towards the knowledge economy. It finds that high-emitting industries tend to have higher profits, wages and lower wage inequality than others. Brown jobs, however, are not better jobs, but benefit from collective bargaining. At the same time, there are significant differences between the member states of the European Union. The paper concludes by discussing how social partnership deals with the dilemma of being rooted in fossil fuel industries while negotiating change.