The formalism of probabilistic graphical models provides a unifying framework for capturing complex dependencies among random variables, and building large-scale multivariate statistical models. Graphical models have become a focus of research in many statistical, computational and mathematical fields, including bioinformatics, communication theory, statistical physics, combinatorial optimization, signal and image processing, information retrieval and statistical machine learning. Many problems that arise in specific instances-including the key problems of computing marginals and modes of probability distributions-are best studied in the general setting. Working with exponential family representations, and exploiting the conjugate duality between the cumulant function and the entropy for exponential families, Graphical Models, Exponential Families and Variational Inference develops general variational representations of the problems of computing likelihoods, marginal probabilities and most probable configurations. It describes how a wide variety of algorithms- among them sum-product, cluster variational methods, expectation-propagation, mean field methods, and max-product-can all be understood in terms of exact or approximate forms of these variational representations. The variational approach provides a complementary alternative to Markov chain Monte Carlo as a general source of approximation methods for inference in large-scale statistical models.

High-growth firms (HGFs) are critical for net job creation and economic growth. We analyze HGFs using the theory of competence blocs, linking firm growth to property rights and the interaction of complementary expertise. Specifically, we discuss how the institutional framework affects the prevalence and performance of HGFs. Firm growth is viewed as resulting from the perpetual discovery and use of productive knowledge.A key element in this process is the competence bloc, a nexus of economic actors with complementary competencies that are vital in order to generate and commercialize novel ideas. The institutional framework determines the incentives for these individuals to acquire and utilize knowledge. We identify a number of institutions that foster the emergence of competence blocs and the creation of HGFs. In particular, our analysis points to the pivotal roles played by tax structures, labor market regulation, and the contestability of currently closed service markets. Finally, we characterize institutions beneficial for sclerotic or dynamic capitalism, respectively, depending on whether they provide a favorable environment for the emergence of competence blocs and the creation of HGFs.

This manual lays the groundwork for creating a competency model, which can be used to optimize associate development and build a firm-wide high-performance culture.

"The central challenge facing the government of Georgia today is the need to find sources of long-term economic growth, particularly through development of the private sector. Key to the dynamism of that sector is entrepreneurial activity, which generates new businesses and fosters competition and economic growth. Fostering Entrepreneurship in Georgia uses data and in-depth case studies to identify the determinants of high-growth entrepreneurial activity. It finds that, while a number of reforms have been undertaken to improve the business environment, a number of constraints to the growth of entrepreneurial and innovative activity remain. Based on these findings, the book outlines broad policy directions for improving the business environment, providing access to finance, developing skills, increasing access to markets, incentivizing firm-level research and development, and raising awareness, and it identifies priority areas for government action. The issues discussed in this book will be of particular interest to policy makers who are aiming to achieve higher growth and job creation through entrepreneurship, as well as to development practitioners and those in the private sector."--Page 4 of cover.

Job creation and productivity growth are at the forefront of the global development agenda. The central challenge today for the government of Armenia is to find new sources of long-term economic growth to become an upper middle-income country, with a view to experiencing a substantial transformation of its economic structure to one that is resilient to external shocks in the medium term. A dynamic and vibrant private sector is thus crucial to Armenia s economic growth, with firms making new investments, creating jobs, improving productivity, and promoting growth. Entrepreneurial activity is pivotal to the continued dynamism of the private sector, with the generation of new businesses fostering competition and economic growth. This study seeks to identify determinants of high-growth entrepreneurial activity. The stusy uses data from the new 2012 World Bank Entrepreneurship Survey conducted to gauge new firm growth in the formal sector in Armenia and data from World Bank Enterprise Surveys to analyze innovative activity in existing firms. It includes detailed case study analyses to complement these findings. The study finds that while there is a higher level of entrepreneurial activity in Armenia when compared to its neighbor Georgia, however there remain a number of constraints that inhibit the growth of entrepreneurial and innovative activity. These constraints include a major skills mismatch, ineffective industry-research linkages and a lack of access to risk capital. While outlining broad policy directions in areas namely improving business environment, access to finance, developing skills, incentivizing greater industry- research collaboration, and raising awareness it lays out some priority areas that the government could embark on. The government could remove bottlenecks from the general business environment that impede able entrepreneurs with good ideas from starting a new venture and creating jobs. This would include strengthening the business environment to allow failure and company exit as a necessary part of entrepreneurial learning, company incentives that favor entrepreneurs with good ideas, instruments that enable entrepreneurs to access capital for startups, and intruments to tap into the vast diaspora pool both in terms of knowledge and capital. We hope that the issues discussed and the dialogue initiated during the course of this study would lend itself to policy design to foster high-growth entrepreneurship with a view to higher growth and job creation in this highly globalized world.

The Small Business Innovation Research (SBIR) program is one of the largest examples of U.S. public-private partnerships, and was established in 1982 to encourage small businesses to develop new processes and products and to provide quality research in support of the U.S. government's many missions. The U.S. Congress tasked the National Research Council with undertaking a comprehensive study of how the SBIR program has stimulated technological innovation and used small businesses to meet federal research and development needs, and with recommending further improvements to the program. In the first round of this study, an ad hoc committee prepared a series of reports from 2004 to 2009 on the SBIR program at the five agencies responsible for 96 percent of the program's operations-including NASA. In a follow-up to the first round, NASA requested from the Academies an assessment focused on operational questions in order to identify further improvements to the program. Public-private partnerships like SBIR are particularly important since today's knowledge economy is driven in large part by the nation's capacity to innovate. One of the defining features of the U.S. economy is a high level of entrepreneurial activity. Entrepreneurs in the United States see opportunities and are willing and able to assume risk to bring new welfare-enhancing, wealth-generating technologies to the market. Yet, although discoveries in various fields present new opportunities, converting these discoveries into innovations for the market involves substantial challenges. The American capacity for innovation can be strengthened by addressing the challenges faced by entrepreneurs.

This volume provides an understanding of firms' R&D and innovation strategies and their economy-wide consequences. It is based on the premise that differences in firm-level returns, as well as economy-wide outcomes, may be linked to the heterogeneous ways in which firms organize and undertake R&D and innovation activities. It emphasizes innovation strategies of innovating firms, and reflects that innovation efforts do not represent a uniform type of expenditure. Organized into three parts the volume moves from the micro to the macro-level. This structure highlights the notion that R&D and innovation and growth are two interdependent perspectives. The first of these is micro-oriented and focuses on innovation processes of firms, where R&D activities and other innovation efforts give rise to consequences such as a strengthening of resource bases, growth of sales and employment, patents, new products, increasing productivity and profits, and improved chances of survival. The second perspective comprises economy-wide effects in the form of overall technological change, growth in total factor productivity, and structural change processes, where certain sectors may benefit from new inputs from other sectors while others experience declining markets and reduced output. The book brings together contributions and perspectives from both economics and business scholars, and will appeal to academics, researchers, and students interested in R&D and innovation strategies, international business, business strategy, and the economics of technological change.