'238%/,&32/,&,(67+$7)267(5&223(5$7,21 ,1,1129$7,21$8*0(177+(&223(5$7,9($77,78'( 7+((03,5,&$/)$&76 -2267+(,-6 'RFXPHQWRGHWUDEDMRQ-XQLR GH (GLWD ,QVWLWXWR GH $QiOLVLV ,QGXVWULDO\)LQDQFLHUR8QLYHUVLGDG&RPSOXWHQVHGH0DGULG )DFXOWDGGH&LHQFLDV(FRQyPLFDV\(PSUHVDULDOHV&DPSXVGH6RPRVDJXDV 0DGULG )D[ 7HO 'LUHFWRU-RRVW+HLMV HPDLOMRRVW#FFHHXFPHV ,PSULPH6HUYLFLRGH5HSURJUDItDGHOD)DFXOWDGGH&LHQFLDV(FRQyPLFDV\(PSUHVDULDOHV 8&0 (VWHGRFXPHQWRSXHGHVHUUHFXSHUDGRDWUDYpVGH,17(51(7HQODVVLJXLHQWHVGLUHFFLRQHV 7KLVILOHLVDYDLODEOHYLDWKH,17(51(7DWWKHIROORZLQJDGGUHVVHV KWWSZZZXFPHVEXFPFHHLDLI KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB '238%/,&32/,&,(67+$7)267(5&223(5$7,21 ,1,1129$7,21$8*0(177+(&223(5$7,9($77,78'( 7+((03,5,&$/)$&76 -RRVW+HLMV ,QVWLWXWRGH$Qi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±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«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¶FRRSHUDWLYHDWWLWXGHEXWUDWKHUIRUWKHSROLFLHVWREH MXVWLILHG RWKHU DFKLHYHPHQWV RI WKH SURMHFW KDYH WR EH DQDO\VHG 7KHVH DUH IRU H[DPSOH WKH LPSRUWDQFH RI DLG WR EH DEOH WR FDUU\ RXW WKH SURMHFW WKH JHQHUDWLRQ RI QHZ WHFKQRORJLHV FRVW VDYLQJVWKHOHDUQLQJSURFHVVWKHFRPSOLPHQWDU\QDWXUHRIDFWLYLWLHVLPSURYLQJWKHRUJDQLVDWLRQRI WKHLQQRYDWLRQV\VWHPHWF 'HVSLWH WKH LPSRUWDQFH RI WKHVH DVSHFWV LQ WKLV ZRUN VSHFLDO VWXG\ LV PDGH RI WKH SURJUDPV¶ LPSDFW RQ FRRSHUDWLYH DWWLWXGHV ,QGHHG DV VKRZQ LQ WDEOHV WKH DVVHVVPHQW VWXGLHV KDYH DQDO\VHG D ODUJH QXPEHU RI DVSHFWV FRQFHUQLQJ FRRSHUDWLRQ 7KH YDULDEOHV XVHG WR DQDO\VH WKH VXFFHVVLQHQFRXUDJLQJFRRSHUDWLRQFDQEHFODVVLILHGLQWRILYHEDVLFLQGLFDWRUV7KHILUVWWKUHHDUH EDVHGRQGLUHFWTXHVWLRQV±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¶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yy :LWKRXWSXEOLFDLGILUPVZRXOGQRWKDYHVWDUWHGWKH SURMHFW 7KHILUPKDVUHSODFHGLWVRZQILQDQFLDOUHVRXUFHV <HV ZLWKSXEOLFRQHV :LWKRXWSXEOLFDLGWKHILUPVZRXOGKDYHLQLWLDWHGD OHVVHUVL]HGSURMHFWRUZRXOGKDYHGHOD\HGLW ([LVWHQFHRIDOWHUQDWLYHIXQGLQJVRXUFHV <HV ,PSRUWDQFHRIWKHDPRXQWRIDLGLQJHQHUDO*(1RU LQFRPSDULVRQZLWKWKHILUP¶VWRWDO5'RXWOD\ *HQ *,' <HV <HV <HV <HV *HQ <HV <HV <HV <HV <HV <HV <HV *,' 7<3(,935(9,286(;3(5,(1&(,1&223(5$7,21$1'&521<,60 7KRVHWDNLQJSDUWLQWKHSURMHFWKDYHSUHYLRXVO\ FROODERUDWHG 7KRVHWDNLQJSDUWLQWKHSURMHFWKDYHSUHYLRXVO\ SDUWLFLSDWHGLQWKHVDPHSURJUDPFURQ\LVP 7KHILUPVKDYHSUHYLRXVO\FROODERUDWHGLQWKH5' ILHOG $QDO\VLVRIWKHILUP¶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³ZLVKWR FRRSHUDWH´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¶V FRRSHUDWLRQ VXFK DV 3XEOLF 5HVHDUFK %RGLHV IRU WKH FDUU\LQJ RXW RI WKH SURMHFW 7KLV LPSRUWDQFH LV IUHTXHQWO\ XVHG DV DQ LQGLUHFWLQGLFDWRUWRPHDVXUHLQFUHDVHVLQFRRSHUDWLRQ,WLVLPSOLFLWO\DUJXHGWKDWLIFRRSHUDWLRQLV YHU\ LPSRUWDQW IRU FDUU\LQJ RXW WKH SURMHFW DQ LQFUHDVH RI FRRSHUDWLRQ ZLOO KDYH WDNHQ SODFH +RZHYHU LW LV DOVR GHEDWDEOH WKDW LI WKH SDUWQHU¶V FRQWULEXWLRQ LV YHU\ LPSRUWDQW WKH ILUP ZRXOG KDYH DOVR FROODERUDWHG ZLWKRXW SXEOLF DLG 7KDW LV LW ZLOO QRW KDYH LQFUHDVHG LWV FRRSHUDWLRQ 1HLWKHUGRHVWKLVYDULDEOHDQDO\VHZKHWKHUWKHUHH[LVWVD³QHW´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~EOLFRGH,QYHVWLJDFLy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¶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¶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¶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¶VWRWDO EXGJHWVRWKDWWKHKLJKHUWKHEXGJHWWKHORZHUWKH23,VKDUH,(6($FRVWD¶VVWXG\ KLJKOLJKWV D JURXS RI ILUPV ZKHUH WKH 23, FRQWULEXWLRQ ZDV DOPRVW QRQH[LVWHQW 5HJDUGLQJ WKLV JURXSVHH7DEOH*URXSLWLVVLJQLILFDQWWKDWRIWKHSURMHFWVRIWKHVHILUPVKDYHEHHQ FDUULHG RXW E\ MXVW WKHPVHOYHV 7KH PRVW RXWVWDQGLQJ FKDUDFWHULVWLFV RI WKHVH ILUPV DUH WKH ODUJH VL]HRIWKHLU5'GHSDUWPHQWVPRUHWKDQHPSOR\HHVWKHIDFWWKDWWKH\KDYHRUVXEVLGLVHG SURMHFWV DSSURYHG DQG WKH IDFW WKDW WKH\ EHORQJ WR WKH SKDUPDFHXWLFDO DQG VSDFH 5' VHFWRUV )LUPV ZLWK D KLJKHU23, LQYROYHPHQW LQ SURMHFWV *URXSV DQG DUH ILUPV ZLWK D ORZOHYHORI 5' DQG ILUPV LQ WKH VHFWRUV RI DJULFXOWXUH DQG ILVKLQJ VHUYLFHV WR ILUPV H[WUDFWLRQ DQG WUDQVIRUPDWLRQRIPLQHUDOVFKHPLFDOVDQGRWKHUPDQXIDFWXUHV *URXS *URXS 6RXUFH2ZQHODERUDWLRQIURP$FRVWD3DJHV 2XWVWDQGLQJ WHFKQRORJLFDO VHFWRUVRU ILHOGV 5'VWDII 5'VWDII HPSOR\HG 5' H[SHQGLWXUH E\VDOHV 5' H[SHQGLWXUH *URXS *URXS HPSOR\PHQW *URXSDQG QXPEHURI ILUPV RIEXGJHW RIWKHWRWDO DPRXQWRI VXSSRUW FDUULHGRXWE\ 23,V $YHUDJH EXGJHWRI SURMHFWVLQ PLOOLRQVRI SHVHWDV 7DEOH7KHUROHRI3XEOLF5HVHDUFK%RGLHVLQVXEVLGLVHGSURMHFWV 6SDFHUHVHDUFKDQGSKDUPDF\ $JULFXOWXUH DQG ILVKLQJ DQG VHUYLFHVWRILUPV ([WUDFWLRQDQGWUDQVIRUPDWLRQ RI PLQHUDOV FKHPLFDOV DQG RWKHUPDQXIDFWXUHV 5RERWLFDQGRWKHUWHFKQRORJ\ 1RW LQFOXGLQJ WKH VSDFH 5'VHFWRU 7KHUHDVRQVIRUFRRSHUDWLQJZHUHDFFHVVWRWKHLQIUDVWUXFWXUHDFTXLVLWLRQRIH[SHULHQFHRUNQRZKRZ DFFHVVWRXQDYDLODEOHVSHFLDOLWLHVIXOILOOLQJWKHUHTXLUHPHQWVWRREWDLQDLGNHHSLQJXSZLWKWHFKQRORJLFDO EUHDNWKURXJKVDQGFRVWUHGXFWLRQ KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ 7KH JURXS RIILUPVZKHUHWKH3XEOLF5HVHDUFK2UJDQLVDWLRQV23,KDYHDYHU\LPSRUWDQWUROHLV WKHVPDOOHVW*URXS7KHFKDUDFWHULVWLFVRIWKHVHILUPVDUHUDWKHUVXUSULVLQJVLQFHWKH\LQFOXGH UHODWLYHO\ODUJHILUPVZLWKODUJH5'GHSDUWPHQWV)RUPRVWRIWKHVHILUPVWKHLUWRWDO5' H[SHQGLWXUHV GRXEOHV WKH EXGJHW REWDLQHGIURP WKHJRYHUQPHQW E\ WKHVXSSRUWHG SURMHFWV $OO RI WKLVFRXOGVXJJHVWWKDWIRUILUPVLQWKHIRXUWKJURXSFRRSHUDWLRQZLWK 23,VGRHVQRWDSSHDUWREH UHDOO\ QHFHVVDU\ +RZHYHU WDNLQJ LQWR DFFRXQW WKH WHFKQRORJLFDO ILHOGV ±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±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¶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³FURQ\LVP´ GHILQHG DV WKH KLJK IUHTXHQF\ RI SDUWLFLSDWLRQ RI WKHVDPH FOLHQWV LQ WKHGLIIHUHQWRUHYHQWKHVDPHVXSSRUWVFKHPHVFDQEHGHWHFWHGLQWKHDZDUGLQJRIDLG,QIDFWWKH DLPRIWKHDLGZLWKUHJDUGWRFRRSHUDWLRQZRXOGEHWRVWLPXODWHWKHVWDUWXSRIFROODERUDWLRQLQ LQQRYDWLQJILUPVZKLFKKDGQRWKLWKHUWRFROODERUDWHGRUVWUHQJWKHQWKHFRRSHUDWLYHDWWLWXGHRIWKH LQQRYDWLQJ ILUPV 7R GLVFRYHUZKHWKHUWKHVH DLPV KDYH EHHQIXOILOOHGLW ZRXOG EH D JRRG LGHDWR DVVHVVWKH³QHW´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¶V VWUDWHJLFWHFKQRORJLHVRUSURMHFWVZLWKXQNQRZQSDUWLFLSDQWV'LVWUXVWRYHU SRVVLEOH SDUWQHUV LV RQH RI WKH EDUULHUV WR FRRSHUDWLRQ ZKLFK LV PRVW GLIILFXOW WR RYHUFRPH DQG RQFHDUHODWLRQVKLSH[LVWVEDVHGRQWUXVWILUPVZRXOGUDWKHUFRQWLQXHWRFRRSHUDWHZLWKWKHVDPH SDUWQHUVLQVWHDGRIH[WHQGLQJWKHJURXSRIFROODERUDWRUV $QRWKHUDVSHFWGLUHFWO\UHODWHGWRWKHDWWLWXGHRIFRRSHUDWLRQSULRUWRWKHVXEVLG\LV³FURQ\LVP´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¶SDUWLFLSDWLRQLQWKH (XURSHDQ 8QLRQ )5$0(:25. 3URJUDP LQGLFDWHV WKDW WKH DJHQWV ZKLFK KDG WDNHQ SDUW LQ WKH WKLUG3URJUDPVKRZHGDKLJKOHYHORISUHYLRXVFROODERUDWLRQZLWKRWKHUDJHQWVDVLWXDWLRQZKLFK DSSHDUVWRIDYRXUWKHLULQWHJUDWLRQLQWRFRPPXQLW\5'FKDUDFWHULVHGSUHFLVHO\E\LWVFRQVRUWLXP DFWLYLW\7KHDXWKRUVVWDWHWKDWWKH\GRQRWNQRZZKHWKHUWKLVSUHYLRXVFRRSHUDWLRQZDVLQSULRU HGLWLRQVRIWKH)5$0(:25.3URJUDPWKRXJKLWPLJKWEHDVVXPHGWKDWWKHGHJUHHRIUHSHWLWLRQ ZDV YHU\ KLJK ,Q ERWK FDVHV LW PLJKW LQGLFDWH WKDW WKLV 3URJUDP ZRXOG EH PRUH RI D VXSSRUW RU FRYHUWRH[WHQGWKHEDVHVRIDQDOUHDG\H[LVWLQJFROODERUDWLRQWKDQDQH[WHQVLRQRIWKHQXPEHURI FRRSHUDWLQJILUPV7KLVIDFWLVDOVRQRWHGE\DQDO\VLQJWKHSHUFHQWDJHRIILUPVZKRKDYHSUHVHQWHG PRUHWKDQRQHSURMHFWRIILUPVDUHLQFOXGHGLQPRUHWKDQRQHSURMHFWDQGLQPRUHWKDQ ILYH0RUHRYHUKDYHSUHVHQWHGSURSRVDOVLQFDVHVZKHUHRIILFLDODQQRXQFHPHQWVKDYHLQYLWHG WKHPDWERWKUHJLRQDODQGQDWLRQDOOHYHO7KLVZRXOGUHIOHFWWKHOHDUQLQJSURFHVVZKLFKLQYROYHV WKH GLIILFXOW SURFHVV RI GHILQLQJ SUHVHQWLQJ DQG PDQDJLQJ WKH SURMHFWV $OO WKLV SRLQWV WR VWURQJ FRQFHQWUDWLRQ RI SXEOLF DLG GHYRWHG WR FRRSHUDWLYH SURMHFWV %RWK LQ (XURSHDQ DQG QDWLRQDO DQG UHJLRQDO SURMHFWV QRW PDQ\ DJHQWV SDUWLFLSDWH EXW WKRVH WKDW GR SDUWLFLSDWH LQ VHYHUDO SURMHFWV 9HQFH HW DO $ UHFHQW VWXG\ RI +HLMV HW DOO D FRQILUPV WKLV FRQFOXVLRQ UHJDUGLQJ D KLJKOHYHORI³FOLHQWHOLVP´DOPRVWSHUFHQWRIWKHVXSSRUWHGILUPVGLGSDUWLFLSDWHLQWKHVDPHRU RWKHUVLPLODUSURJUDPPHV 'XH WR WKH SKHQRPHQD RI SUHYLRXV H[SHULHQFH LQ FRRSHUDWLRQ DQG FURQ\LVP LW LV QRW DOZD\V SRVVLEOH WR DQDO\VH ZLWK WKH DFFXUDF\ RQH ZRXOG GHVLUHWKH³QHW´LQIOXHQFHRIWKHSROLF\RQWKHLU FRRSHUDWLYHDWWLWXGH,QIDFWDQXPEHURISDUWLFLSDQWVDOEHLWVPDOOZKRKDYHVWDUWHGWKHLUILUVWFR RSHUDWLYH SURMHFW ZRXOG EH DQ LQGLFDWRU RI VXFFHVV $Q LQGLUHFW ZD\ RI PHDVXULQJ WKH LQWHQVLILFDWLRQ RI FRRSHUDWLYH DWWLWXGH FRXOG EH WR ILQG EXVLQHVV RSLQLRQ RQ WKH FRRSHUDWLYH H[SHULHQFH SDUWLFXODUO\ IRU ILUPV ZKR GR QRW QRUPDOO\ FRRSHUDWH RU GR VR LQIUHTXHQWO\ 7KH SHUFHQWDJHRIILUPVZKRJLYHDSRVLWLYHHYDOXDWLRQWRFRRSHUDWLRQRUZKRVWDWHWKDWWKH\LQWHQGWR FRRSHUDWHDJDLQLQWKHIXWXUHFRXOGEHD³VRIW´LQGLFDWRUWRYDOXHWKHLPSDFW .DWVRXODFRVLQWURGXFHVDILIWKW\SHRILQGLFDWRUDQDO\VLQJFRQVROLGDWLRQRIWKHFRRSHUDWLRQ 2QRQHVLGHWKHFRQVROLGDWLRQRIWKHFRRSHUDWLRQDIWHUJHWWLQJVXSSRUWDQGRQWKHRWKHUVLGHWKH FRQVROLGDWLRQRIWKHFRRSHUDWLRQDOWKRXJKWKHILUPGLGQRWJHWVXSSRUW7KHILUVWYDULDEOH±ZKLFK DQDO\VHVWKHVKRUWRPHGLXPWHUPHIIHFWRIWKHVXSSRUW LQGLFDWHVWKDWGLGQRWKDYHIROORZLQJ XS FRRSHUDWLYH DFWLYLWLHV ZLWK WKH VDPH SDUWQHUV DIWHU ILQLVKLQJ WKH SURMHFW 7KH VHFRQG YDULDEOH DQDO\VHG E\ .DWVRXODFRV LQGLFDWHV LI WKH QRW VHOHFWHG ILUPV DIWHU LQYHVWLQJ D FHUWDLQ DPRXQW RI WLPH PRQH\ DQG KXPDQ FDSLWDO LQ WKH SUHSDUDWLRQ RI WKH UHMHFWHG SURSRVDO ±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³QHW´ HIIHFW RI WKH SROLFLHV 7KLV ³QHW´ HIIHFW LV GLIILFXOW WR PHDVXUH ILUVWO\ EHFDXVH WKH ³FRRSHUDWLYH FXOWXUH´ ZKLFKVKRXOGEHPHDVXUHGEHIRUHDQGDIWHUWKHLQFHQWLYHVRIIHUHGE\SXEOLFDLGKDYH EHHQ DSSOLHG LVDQLQWDQJLEOHFRQFHSW,WLVYHU\GLIILFXOWWRPHDVXUHWKHLPSURYHPHQWLQWKLVFXOWXUH±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¶VODFNRILQQRYDWRU\FDSDFLWLHV7KDWLVWRVD\WKHUHDUHFRRSHUDWLRQEDVHGSURMHFWVZKLFK FRXOGKDYHEHHQFDUULHGRXW±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±IRXQGLQWKHFDVHVWXGLHVZLOO EHSUHVHQWHGLQWKHILQDOVHFWLRQRI WKLVDUWLFOH KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ HPSLULFDO SURRIV IRXQG DUH QRW ³DG KRF´ EXW FRUUHVSRQG WR DQ HVWDEOLVKHG SDWWHUQ $V FDQ EH GHGXFHGIURPWKHPHWKRGRORJLFDOGLVFXVVLRQLWLVGLIILFXOWWRDQDO\VHWKH³QHW´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±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¶VODFNRILQQRYDWRU\FDSDELOLWLHV0RUHRYHUPRVWRI WKH VWXGLHV DQDO\VH WZR RU WKUHH RI WKH EDVLF LQGLFDWRUV RI WKH ILUP EXW QRQH DQDO\VHV LW LQ D FRPELQHGZD\ ,IHDFKLQGLFDWRUH[SUHVVHGDJURXSRIILUPVLQZKLFKWKHLPSDFWLVOHVVWKHRYHUODS EHWZHHQWKHVHJURXSVZRXOGKDYHWREHVWXGLHGE\DQDO\VLQJWKHPVLPXOWDQHRXVO\,QIDFWZKDWLV PLVVLQJLQWKHVWXGLHVH[DPLQHGLVDULJRURXVH[DPLQDWLRQRIWKH³QHW´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¶ SHUIRUPDQFH LQ ZKLFK FDVH WKH\ ZRXOG DOVR FR RSHUDWHZLWKRXWVWDWHDLG2QWKHRWKHULIILUPVRQO\FRRSHUDWHWRIXOILOWKHDLGUHTXLUHPHQWVFR RSHUDWLRQKDVQRGLUHFWDGYDQWDJHIRUILUPVLQYROYHGDQGZRXOGEHPRUHOLNHO\WRVHUYHWRVXSSRUW RU LQGLUHFWO\ VXEVLGLVH WKURXJK FRQWUDFWVWKH SXEOLF UHVHDUFK ERGLHV ,Q WKHVH FDVHV LW FRXOG EH SRVVLEOH WKDW WKH SXEOLF UHVHDUFK RUJDQLVDWLRQ GR PDUJLQDO DQGRU LVRODWHG SDUWV RI WKH SURMHFW LQ ZKLFK PXWXDO OHDUQLQJ RI ERWK SDUWQHUV LV QRW DVVXUHG ,Q ERWK FDVHV WKH LQFUHDVH LQ VRFLDO ZHOIDUHVKRXOGEHJHQHUDWHGLQDQLQGLUHFWZD\7KHSURPRWLRQRIFRRSHUDWLRQFRXOGEHMXVWLILHG E\ EDVLQJ LW RQ WKH WKHRU\ RI LQQRYDWLRQV V\VWHPV $FFRUGLQJ WR WKLV WKHRU\EDVHG RQ D KROLVWLF FRQFHSW WKH V\VWHP FUHDWHV V\QHUJLHV GXH WR WKH LQWHUDFWLRQ EHWZHHQ LWV DJHQWV ZKR DW WKH VDPH WLPHJHQHUDWHDFROOHFWLYHOHDUQLQJSURFHVV(YDOXDWLRQVWXGLHVGRQRWDQDO\VHZKHWKHUDSURFHVVRI FROOHFWLYH OHDUQLQJ RU V\QHUJLHV LV JHQHUDWHG EXW DQDO\VH WKH LQFUHDVH LQ FRRSHUDWLRQ DQG UHDVRQ WKDWWKHH[LVWHQFHRIVXFKDQLQFUHDVHZRXOGJHQHUDWHOLNHDQLQYLVLEOHKDQGDEHWWHUZRUNLQJRI WKH V\VWHP DV D ZKROH 7KLV ZD\ RI HYDOXDWLQJ WKH SROLFLHV LV GXH WR WKH GLIILFXOW\ LQYROYHG LQ DQDO\VLQJWKHLQFUHDVHLQVRFLDOZHOIDUHVLQFHLWLVDOPRVWLPSRVVLEOHWRDQDO\VHWKHQHWLQFUHDVHLQ FRRSHUDWLRQDQGWKHLQGLUHFWHIIHFWVRQWKHLQQRYDWLRQV\VWHP ,Q VSLWH RI WKHPHWKRGRORJLFDOSUREOHPV PHQWLRQHGLQ UHJDUGWRWKHHYDOXDWLRQVWXGLHVLWKDVQRW EHHQ P\ LQWHQWLRQ WR GLVFUHGLW WKHP FRPSOHWHO\,QGHHG PRVW RI WKHP FDQ EH FODVVLILHG DV IDLUO\ FRPSOHWH VWXGLHV DQG ZLWK D ZHOOGHYHORSHG PHWKRGRORJ\ DQG LQWHUQDO ORJLF ,W VKRXOG QRW EH IRUJRWWHQ WKDW HYDOXDWLRQ VWXGLHV DV D VFLHQWLILF DFWLYLW\ DUH HVSHFLDOO\ LQ 6SDLQ D UHODWLYHO\ QHZ DFWLYLW\ 7KH ODFN RI D JOREDO LQWHJUDO WKHRU\ ZKLFK PLJKW H[SODLQ DOO WKH UHODWLRQVKLSV EHWZHHQ WHFKQRORJLFDOFKDQJHDQGHFRQRPLFG\QDPLFVDQGZKLFKZRXOGLQFOXGHWKHUROHRIWKH6WDWHLVDQ LQHYLWDEOH SUREOHPZKLFKLQSULQFLSOHZRXOGKDYHWREHVROYHGEHIRUHVWXG\LQJWKHUROHDQGWKH VXLWDELOLW\ RI GLIIHUHQW LQVWUXPHQWV RI WHFKQRORJLFDO SROLF\ %XW WKH DJHQWV UHVSRQVLEOH IRU WHFKQRORJLFDOSROLF\GHPDQGVROXWLRQVWRLPSURYHWKHHIILFLHQF\ RIWKHLUSHUIRUPDQFHDQGFDQQRW ZDLWXQWLODOOWKHUHODWLRQVKLSVEHWZHHQWHFKQRORJLFDOFKDQJHDQGHFRQRPLFGHYHORSPHQWKDYHEHHQ GHWHUPLQHG7KHUHIRUHHYDOXDWLRQRIWKHLQVWUXPHQWVLVQROHVVLPSRUWDQWDQGLWVKRXOGEHEDVHGRQ H[LVWLQJ WKHRULHV VLQFH VWXGLHVZLWK D SURYHQPHWKRGRORJ\FDUULHGRXWLQDSURIHVVLRQDOPDQQHU FRXOGJHQHUDWHLPSRUWDQWLQIRUPDWLRQDOEHLWQRWDOZD\VXQDPELJXRXV IRUSROLF\SODQQHUVDQGIRU WKRVHLQFKDUJHRIGHFLVLRQPDNLQJ7KHGLUHFWXVHIXOQHVVRIWKHVHVWXGLHVGHSHQGVWRDJUHDWH[WHQW RQ QRW RQO\ WKH TXDOLW\ RI WKH VWXGLHV EXW DOVR WKH UHVLVWDQFH RI WKRVH SROLWLFDOO\ DQG DGPLQLVWUDWLYHO\UHVSRQVLEOHWRDSSO\WKHFRQFOXVLRQV7KHLUXVHIXOQHVVLQDEURDGHUVHQVHGHSHQGV WR D JUHDW H[WHQW RQ WKHLU EHLQJ SXEOLVKHG 7KH YDVW PDMRULW\ RI WKH H[DPLQDWLRQV FDUULHG RXW KLWKHUWR DUH QRW RIILFLDOO\ SXEOLVKHG DQG KDYH EHFRPH ³JUH\ OLWHUDWXUH´ 0H\HU.UDKPHU +HLMV 0RVW RI WKH UHSRUWV DUH GLIILFXOW WR REWDLQ VLQFH PDQ\ RI WKHP KDYH QRW EHHQ SXEOLVKHGDQGHYHQLQPDQ\FDVHVWKHH[LVWHQFHRIWKHVHH[DPLQDWLRQVKDVQRWEHHQPDGHNQRZQ 7KLVLPSOLHVWKDWWKHDVVHVVRUVODFNDJUHDWGHDORILQIRUPDWLRQZKLFKPLJKWKHOSWKHPWRLPSURYH ,QIDFWERWKVWXGLHV+HLMV+HLMVDQG+HLMVDWDOOLQGLFDWHWKDWWKHILUPVLGHQWLILHGDVEHLQJ ³IUHHULGHUV´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¶ FRRSHUDWLYH DWWLWXGH DQG SDUWLFLSDWLRQ LQ VLPLODU VXSSRUW SURJUDPPHV 7KH ILUVW RQH UHIOHFWV WKH DQVZHUV RQ WZR TXHVWLRQVGRHVWKHUHH[LVWSUHYLRXVH[SHULHQFHLQFRRSHUDWLRQZLWKWKHVDPHLQVWLWXWHLQYROYHGLQ WKH VXEVLGLVHG SURMHFW" RU GR \RX KDYH SUHYLRXV H[SHULHQFH ZLWK RWKHU UHVHDUFK LQVWLWXWHV" 7KH VHFRQG EDVLF LQGLFDWRU UHIOHFWV WKH FOLHQWHOLVP RI WKH SURJUDPPHV HJ GLG WKH VXSSRUWHG ILUPV SDUWLFLSDWH LQ RWKHU RU VLPLODU SURJUDPPHV GLVWLQJXLVKLQJ UHJLRQDO QDWLRQDO RU (XURSHDQ SURJUDPPHVWKDWSURPRWHFRRSHUDWLRQLQLQQRYDWLRQ"7KHQH[WWZREDVLFLQGLFDWRUVGRUHIOHFW LQVWHDGRIREMHFWLYHGDWD WKHIUHHULGHUDWWLWXGHPHDVXUHGE\WKHSHUVRQDORSLQLRQRIWKHVXSSRUWHG ILUPV ERWK IURP D FRRSHUDWLYH SHUVSHFWLYH HJ ODFN RI LQFUHDVH LQ FRRSHUDWLYH DFWLYLWLHV TXHVWLRQVDQGIURPDILQDQFLDOSHUVSHFWLYHTXHVWLRQV7KLVODVWEDVLFLQGLFDWRUWULHVWRLGHQWLI\ WKHILUPVWKDWZRXOGRUFRXOGKDYHFDUULHGRXWWKHSURMHFWHYHQZLWKRXWVXSSRUW $ILIWKLQGLFDWRU EDVHGRQRQO\RQHYDULDEOH UHIOHFWVWKHWHFKQLFDOIHDVLELOLW\RIWKHSURMHFWLQWKHDEVHQFHRIWKHFR RSHUDWLRQSDUWQHU0RUHRYHUWKHVXUYH\DQDO\VHGWKHOHDUQLQJHIIHFWVERWKIRUWKHILUPVDQGIRUWKH UHVHDUFKLQVWLWXWHVVHHVHFWLRQ ,PSDFWRQWKHFRRSHUDWLYHDWWLWXGH ,Q WKLV VXEVHFWLRQ , RIIHU D GHVFULSWLRQ RI WKH PDLQ WHQGHQFLHV UHJDUGLQJ WKH LPSDFW RI 6SDQLVK SROLFLHVWKDWSURPRWHFRRSHUDWLRQLQLQQRYDWLRQ7KHOLWHUDWXUHVKRZVXVWKDWWKDWWKHVL]HDQGWKH LQQRYDWLYH EHKDYLRXU DUH WKH PRVW LPSRUWDQW YDULDEOHV WR H[SODLQ IUHHULGHU FRQGXFW +HLMV DQG WKH SURSHQVLW\ RI SDUWLFLSDWLRQ LQ WKH SURJUDPPHV +HLMV H ,Q SDUWLFXODU ODUJH ILUPV DQG WKRVH WKDW GR QRW KDYH D FOHDU LQQRYDWLRQ VWUDWHJ\ DUH PRUH SURQH WR EH IUHHULGHUV DQG SDUWLFLSDWHPRUHRIWHQLQFRRSHUDWLYHSURMHFWVRUSXEOLFDLGSURJUDPPHV0H\HU.UDKPHU .XOLFNH+HLMV7KHUHIRUHZHSUHVHQWLQWKLVVHFWLRQWKHGDWDRIWKHFRQWLQJHQF\ WDEOHV FURVVLQJ HDFK RI WKH EDVLF LQGLFDWRUV ZLWK IRXU LQWHUYDOV RI VL]H DQG RI WKH 5' LQWHQVLW\ GHILQHGDVWKH5'H[SHQGLWXUHVE\VDOHVWKHWDEOHVDUHLQFOXGHGLQWKHDSSHQGL[6HFWLRQZLOO DQDO\VH PRUH EURDGO\ WKH SURILOH RI WKH ILUPV WKDW DUH PRUH LQIOXHQFHG E\ WKH SXEOLF VXSSRUW VFKHPHV WKDQ RWKHUV 7KHUHIRUH , ZLOO HVWLPDWH D ORJLVWLF UHJUHVVLRQ PRGHO LQFOXGLQJ D EURDG QXPEHURISRVVLEOHH[SODQDWRU\YDULDEOHV 7KH ILUVW LQGLFDWRU VHH VFKHPH VKRZV WKDW RI WKH VXSSRUWHG ILUPV KDG H[SHULHQFH LQ FR RSHUDWLYH LQQRYDWLRQ SULRU WR WKH VXEVLGLVHG SURMHFW ,Q IDFW RI WKH VXSSRUWHG ILUPV KDG DOUHDG\FRRSHUDWHGZLWKWKHVDPHLQVWLWXWHLQYROYHGLQWKHSURMHFWDQGKDGSULRUFRRSHUDWLRQ KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ ZLWKRWKHUUHVHDUFKLQVWLWXWHV7KLVPHDQVWKDWIRUDOPRVWRIWKHVXSSRUWHGILUPVFRRSHUDWLRQ LVQRWDQHZHOHPHQWRIWKHLULQQRYDWLRQVWUDWHJ\)RUWKHVHILUPVLWLVRQO\SRVVLEOHWKDWWKHSXEOLF VXSSRUW ZLOO VWUHQJWKHQ LWV FRRSHUDWLYH DWWLWXGH EHFDXVH WKH\ DUH DOUHDG\ FROODERUDWLQJ ILUPV 6R WKHGDWDRIWKH,$,))(&<7GDWDEDVHVKRZVWKDWRQO\IRUDPD[LPXPRIRIWKHILUPVFRXOG WKH LQFHQWLYH SHUKDSV KDYH JHQHUDWHG FRRSHUDWLRQ LQ QRQ FRRSHUDWLYH ILUPV +RZHYHU LQ ERWK FDVHV D ODUJHQXPEHURI WKRVH ILUPV ZRXOG SRVVLEO\ DOVR KDYH LQLWLDWHG WKHFRRSHUDWLRQZLWKRXW SXEOLF VXSSRUW 7KHUHIRUH , DQDO\VHG RQ WKLV TXHVWLRQ WKH RSLQLRQ RI WKH PDQDJHUV RI WKH VXSSRUWHGILUP 6FKHPH ,1',&$725,([LVWHQFHRIDSULRUH[SHULHQFHLQFRRSHUDWLRQ 3ULRUFRRSHUDWLRQZLWKWKHVDPHLQVWLWXWH LQYROYHGLQWKHVXEVLGLVHGSURMHFW ([LVWHQFHRIDSULRUH[SHULHQFHLQ FRRSHUDWLRQ 3ULRUFRRSHUDWLRQZLWKRWKHULQVWLWXWHVWKDQWKRVH LQYROYHGLQWKHVXEVLGLVHGSURMHFW 7KHGDWDRIGLDJUDPVKRZVXVDKLJKOHYHORI&OLHQWHOLVPHJDKLJKSURSHQVLW\WRSDUWLFLSDWH LQRWKHUVLPLODUSXEOLFVXSSRUWSURJUDPPHVRQFRRSHUDWLRQLQLQQRYDWLRQ2YHURIWKHILUPV LQGLFDWH WKDW WKH\ SDUWLFLSDWH IUHTXHQWO\ LQ VLPLODU SURJUDPPHV 0RVW RI WKHP SDUWLFLSDWH DW WKH VDPH WLPH LQ QDWLRQDO DQG UHJLRQDO SURJUDPPHV DURXQG RI WKH ILUPV ZKLOH RI WKH VXSSRUWHGILUPVDOVRSDUWLFLSDWHLQ(XURSHDQSURJUDPPHVWKDWSURPRWHFRRSHUDWLRQLQLQQRYDWLRQ $QDO\VLQJ ZLWK PRUHGHWDLOWKHRYHUODSEHWZHHQVXSSRUWPHDVXUHPHQWVZHFDQLQGLFDWHWKDWRQO\ GLG QRW SDUWLFLSDWH LQ DQ\ RWKHU SURJUDPPH RI WKH ILUPV SDUWLFLSDWHG LQ VRPH RWKHU SURJUDPPH REWDLQHG IXQGV RI DW OHDVW WZR DGPLQLVWUDWLYH OHYHOV DQG DQRWKHU REWDLQHG VXSSRUWIURPHDFKRIWKHWKUHHDGPLQLVWUDWLYHOHYHOV 6FKHPH ,1',&$725,,&OLHQWHOLVP 3DUWLFLSDWLRQLQVLPLODUSXEOLFVXSSRUWSURJUDPPHVWKDWSURPRWHFRRSHUDWLRQLQLQQRYDWLRQ 5HJLRQDOSURJUDPPHV 1DWLRQDOSURJUDPPHV &OLHQWHOLVPRUSURSHQVLW\WR SDUWLFLSDWHLQRWKHUSXEOLFVXSSRUW SURJUDPPHVRQFRRSHUDWLRQ (XURSHDQ8QLRQ 6RZHFDQFRQFOXGHRQWKHRQHKDQGWKDWPRVWRIWKHVXSSRUWHGILUPVKDYHSULRUH[SHULHQFHLQFR RSHUDWLRQ LQ LQQRYDWLRQ DQG RQ WKH RWKHU KDQG LW FDQ EH VWDWHG WKDW WKHUH LV D KLJK OHYHO RI FOLHQWHOLVP$QDO\VLQJERWKYDULDEOHVVLPXOWDQHRXVO\ZHIRXQGWKDWRQO\QHLWKHUFRRSHUDWHG KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ QRUSDUWLFLSDWHGLQSXEOLFSURJUDPPHVEHIRUHJHWWLQJVXSSRUW7KLVIDFWUHGXFHVFOHDUO\WKHSRVVLEOH LPSDFWRIWKHVXSSRUWVFKHPHDQGLWVHIIHFWEDVLFDOO\ZLOOEHOLPLWHGWRDOUHDG\FRRSHUDWLQJILUPV 7KXVWKHSURPRWLRQRIFRRSHUDWLRQLQQRQ FRRSHUDWLYHILUPVSUREDEO\LVPDUJLQDO /DUJH ILUPV RYHU HPSOR\HHV HVSHFLDOO\ PRUH IUHTXHQWO\ KDYH SULRU H[SHULHQFH LQ FR RSHUDWLYH SURMHFWV VHH DSSHQGL[ WDEOH RQO\ RI WKRVH ILUPV GLG QRW KDYH SUHYLRXV H[SHULHQFH LQ FRRSHUDWLRQ LQ LQQRYDWLRQ ZKLOH IRU WKH VPDOOHVW ILUPV WKLV SHUFHQWDJH LV 0RUHRYHU WKH\ PRUH RIWHQ SDUWLFLSDWH VLPXOWDQHRXVO\ LQ VHYHUDO SXEOLF VXSSRUW SURJUDPPHV H[FHSW LQ WKH FDVH RI WKH UHJLRQDO VXSSRUW VFKHPHV 7DNLQJ LQWR DFFRXQW 5' H[SHQGLWXUHV E\ VDOHV RI WKH ILUPV ZH REVHUYH WKDW WKH ILUPV ZLWK DQ LQWHUPHGLDWH 5' OHYHO DUH WKH RQHV WKDW PRVWO\FROODERUDWHGSUHYLRXVO\ZLWKWKHVDPHLQVWLWXWHFXUUHQWO\LQYROYHGLQWKHSXEOLFO\VXSSRUWHG SURMHFW +RZHYHU WKH GLIIHUHQFHV DUH VPDOO DQG QR VWDWLVWLFDOO\ VLJQLILFDQW UHODWLRQVKLS ZDVIRXQG EHWZHHQWKHJOREDOFRPELQHGLQGLFDWRURISULRUFRRSHUDWLRQRUZLWKWKHOHYHORIFOLHQWHOLVP 7KH WKLUG EDVLF RU FRPELQHG LQGLFDWRU DQDO\VHV WKH IUHHULGHU DWWLWXGH IURP D FRRSHUDWLYH SHUVSHFWLYH$VDOUHDG\PHQWLRQHGKDGSULRUFRRSHUDWLRQZLWKWKHVDPHLQVWLWXWHLQYROYHGLQ WKH VXEVLGLVHG SURMHFW IRU RI WKH ILUPV WKH FRRSHUDWLRQ DOVR ZRXOG KDYH RFFXUUHG ZLWKRXW SXEOLFVXSSRUWIRURIWKHVXSSRUWHGILUPVWKHSURMHFWZRXOGDOVRKDYHEHHQLQLWLDWHGZLWKRXW SXEOLFVXSSRUWDQGIRURIWKHILUPVWKHSURMHFWZRXOGDOVREHIHDVLEOHZLWKRXWSXEOLFVXSSRUW $QDO\VLQJ WKHVH IRXU TXHVWLRQV VLPXOWDQHRXVO\ VHH GLDJUDP ,,, ZH HVWLPDWH WKDW IRU RYHU SHUFHQWRIWKHILUPVSXEOLFVXSSRUWKDGDOPRVWQRLQIOXHQFHRQWKHLUFRRSHUDWLYHDWWLWXGH 7KH IRXUWK FRPELQHG LQGLFDWRU DQDO\VHV WKH IUHHULGHU DWWLWXGH IURP D ILQDQFLDO SHUVSHFWLYH 7KH YDULDEOHV RI WKLV LQGLFDWRU UHYHDO WKH SRWHQWLDO ILQDQFLDO DGGLWLRQDOLW\ JHQHUDWHG E\ WKH VXSSRUW VFKHPHV /RRNLQJ WR WKH GLIIHUHQW YDULDEOHV RI ZKDW FRQVWLWXWHV WKH FRPELQHG LQGLFDWRU VHH GLDJUDPZHREVHUYHWKDWRIWKHILUPVZRXOGKDYHIHZGLIILFXOWLHVLQILQDQFLQJWKHSURMHFW ZLWKRXWVXSSRUWRIWKHILUPV VXEVWLWXWHGWKHLQLWLDOO\IRUHVHHQSULYDWHLQYHVWPHQWVE\SXEOLF PRQH\DQGRIWKHILUPVZRXOGKDYHLQLWLDWHGWKHSURMHFWDOVRZLWKRXWVXSSRUW(DFKRIWKHVH YDULDEOHVFRXOGEHLQWHUSUHWHGDVDQLQGLFDWRUWKDWWKHILUPVZRXOGRUFRXOGDOVRKDYHFDUULHGRXW WKHSURMHFWZLWKRXWVXSSRUW6R,FRQVWUXFWHGDFRPELQHGLQGLFDWRUWKDWLQGLFDWHVWKDWRYHURI WKHILUPVSUREDEO\FRXOGRUZRXOGKDYHSHUIRUPHGWKHVDPH5'DFWLYLWLHVZLWKRXWVXSSRUW 7DEOHV DQG RI WKH DSSHQGL[ VKRZ WKDW WKH ODUJHU ILUPV DUH PRUHSURQHWRDIUHHULGHUDWWLWXGH ERWK IURP D FRRSHUDWLYH DQG D ILQDQFLDO SHUVSHFWLYH 7KH 5' LQWHQVLW\ RI WKH ILUP 5' H[SHQGLWXUHVE\VDOHVLVQRWVWURQJO\FRUUHODWHGZLWKWKHIUHHULGHUDWWLWXGHDOWKRXJKWKHILUPVZLWK DPHGLXPOHYHORI5'LQWHQVLW\DUHVOLJKWO\PRUHSURQHWRDIUHHULGHUDWWLWXGHIURPDFRRSHUDWLYH SHUVSHFWLYH ZKLOH WKH ILUPV ZLWK D ORZHU 5' LQWHQVLW\ DUH PRUH SURQH WR EH IUHHULGHUV IURP D ILQDQFLDOSHUVSHFWLYH+RZHYHULQERWKFDVHVWKHGLIIHUHQFHVDUHDOWKRXJKVWDWLVWLFDOO\VLJQLILFDQW QRWYHU\LPSRUWDQW 7KH ODVW WK LQGLFDWRU DQDO\VHV WKH WHFKQRORJLFDO IHDVLELOLW\ RI WKH SURMHFW ZLWKRXW FRRSHUDWLRQ 7KHGDWDRIWKH,$,))(&<7GDWDEDVHVKRZVWKDWIRURIWKHSURMHFWVWKHUHZDVQRWHFKQLFDO QHHG WR FRRSHUDWH 1R VWDWLVWLFDOO\ VLJQLILFDQW GLIIHUHQFHV ZHUH IRXQG IRU VL]H RU 5' LQWHQVLW\ 6HHDSSHQGL[WDEOH KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ 'LDJUDP ,1',&$725,,,)UHHULGHUDWWLWXGHIURPDFRRSHUDWLYHYLHZSRLQW ,QGLUHFWLQGLFDWRUWKDWFRXOGUHIOHFWWKHODFNRILQFUHDVHLQFRRSHUDWLRQ 3ULRUFRRSHUDWLRQZLWKWKHVDPHLQVWLWXWH LQYROYHGLQWKHVXEVLGLVHGSURMHFW 7KH&RRSHUDWLRQZRXOGDOVRKDYHWDNHQ SODFHZLWKRXWWKHSXEOLFVXSSRUW 7KHSURMHFWZRXOGDOVRKDYHEHHQLQLWLDWHG ZLWKRXWSXEOLFVXSSRUW )UHHULGHUDWWLWXGHIURPD FRRSHUDWLYHYLHZSRLQW )HDVLELOLW\RIWKHSURMHFWZLWKRXW SXEOLFVXSSRUW 'LDJUDP ,1',&$725,9)UHHULGHUDWWLWXGHIURPDILQDQFLDOYLHZSRLQW 7KHILUPKDVIHZGLIILFXOWLHVWRILQDQFHWKH SURMHFWZLWKRXWVXSSRUW 7KHILUPXVHGWKHVXSSRUWWR68%67,787( SULYDWHE\SXEOLFPRQH\ )UHHULGHUDWWLWXGHIURPDILQDQFLDO YLHZSRLQW 7KHSURMHFWZRXOGDOVRKDYHEHHQLQLWLDWHG ZLWKRXWSXEOLFVXSSRUW 7KHPDLQFRQFOXVLRQRIWKHILUVWSDUWRIWKHSDSHUVHFWLRQDQGLVWKHSUHVXPDEO\ORZLPSDFW RQ WKH FRRSHUDWLYH DWWLWXGH RI WKH ILUPV 7KH SXEOLF VXSSRUW VFKHPHV DSSDUHQWO\ GR LQWHQVLI\ RU VWUHQJWKHQ WKH FRRSHUDWLYH EHKDYLRXU RI DOUHDG\ FRRSHUDWLYH ILUPV +RZHYHU WKH\ VFDUFHO\ JHQHUDWH QHZ FROODERUDWLYH DWWLWXGHV LQ QRQFRRSHUDWLYH HQWHUSULVHV $ VLPLODU FRQFOXVLRQ ZDV UHIOHFWHG LQ WKH OLWHUDWXUH WKDW HYDOXDWHV WKH ILQDQFLDO VXSSRUW RI QRQFRRSHUDWLYH 5' LQ HQWHUSULVHV7KH\VWUHQJWKHQWKHLQQRYDWLYHDFWLYLWLHVRIDOUHDG\LQQRYDWLYHILUPVDQGKDUGO\DQ\RI WKH VXSSRUWHG ILUPV LQLWLDWH LQQRYDWLYH DFWLYLWLHV GXH WR SXEOLF VXSSRUW +HLMV 7KH SROLWLFDO DJHQFLHV VKRXOG GHVLJQ D LQVWUXPHQW WKDW QRW RQO\ VWUHQJWKHQV DFWLYLWLHV RI WKH H[LVWLQJ LQQRYDWLRQ V\VWHP EXW DOVR LQFUHDVHV WKH QXPEHU RI ILUPV WKDW LQQRYDWH DQG FROODERUDWH ,Q DQ\ FDVHLWLVZRUWKKLJKOLJKWLQJWKDWWKHDQDO\VLVRIWKHLPSDFWRQFRRSHUDWLRQLVQRWWKHVROHDVSHFWWR DVVHVVLQRUGHUWRMXVWLI\SXEOLFDLG)RUWKHFRUUHFWLQWHUSUHWDWLRQRIWKHILQGLQJVLWZRXOGKDYHWR EHUHFDOOHGWKDWIRUPDQ\SURJUDPVWKHSURPRWLRQRIFRRSHUDWLRQLVRQO\RQHRIWKHDLPVDQGRQ PDQ\RFFDVLRQVJHQHUDWLQJKLJKO\LQQRYDWRU\WHFKQRORJLHVLVFRQVLGHUHGDVDQDLPZKLFKLV MXVWDV LPSRUWDQWRUHYHQPRUHVR KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ ,PSDFWRIWKHSROLFHVOHDUQLQJHIIHFWV 7KH,$,))(&<7VXUYH\DOVRSURYLGHVXVZLWKLQIRUPDWLRQDERXWWKHOHDUQLQJHIIHFWV7KHILUPV ZHUHDVNHGDERXWWKHLPSRUWDQFHRIWKHWHFKQRORJ\WUDQVIHULQWKHIRUPRINQRZOHGJHDQG LQIRUPDWLRQIORZV 7DEOH,PSDFWRIWKHSXEOLFVXSSRUWSURMHFWVRQIRUPRIOHDUQLQJ 7UDQVIHURINQRZOHGJHDQGLQIRUPDWLRQWRWKHUHVHDUFKFHQWUHV 1RWLPSRUWDQW ,PSRUWDQW 9HU\LPSRUWDQW 7RWDO 1RWLPSRUWDQW 7UDQVIHURI NQRZOHGJHDQG ,PSRUWDQW LQIRUPDWLRQWR 9HU\LPSRUWDQW WKH )LUPV 7RWDO 2ZQHODERUDWLRQRQWKH,$,))(&<7VXUYH\,WLVLPSRUWDQWWRQRWLFHWKDWWKHOHDUQLQJHIIHFWVIRUWKHUHVHDUFK FHQWUHVZHUHPHDVXUHGE\WKHRSLQLRQRIWKHILUPV 7DEOHLQGLFDWHVWKDWRIWKHILUPVFRQVLGHUWKHNQRZOHGJHDFTXLUHGIURPWKHFRRRSHUDWLRQ SDUWQHURIWKHSURMHFWVDVYHU\LPSRUWDQWFRQVLGHUWKLVW\SHRIWHFKQRORJ\WUDQVIHULPSRUWDQW DQGHVWLPDWHGWKHOHDUQLQJHIIHFWVDVQRWLPSRUWDQW2QWKHRWKHUKDQGWKHILUPVFRQVLGHUWKDW WKH\WUDQVIHUUHGYHU\LPSRUWDQWNQRZOHGJHDQGLQIRUPDWLRQWRRIWKHUHVHDUFKLQVWLWXWHV DQRWKHUWUDQVIHUUHGLPSRUWDQWNQRZOHGJHDQGIRURIWKHUHVHDUFKLQVWLWXWHVWKHOHDUQLQJ HIIHFWFDQEHFRQVLGHUHGDVPLQLPDO$QDO\VLQJVLPXOWDQHRXVO\ERWKGLUHFWLRQVRIWHFKQRORJ\ WUDQVIHUZHIRXQGWKDWIRURIWKHSURMHFWVWKHUHZDVQRNQRZOHGJHWUDQVIHUDWDOO,QWKHVH SURMHFWVQHLWKHUWKHILUPQRUWKHUHVHDUFKFHQWUHVHHPVWREHLQYROYHGLQDQLPSRUWDQW RUYHU\ LPSRUWDQWOHDUQLQJSURFHVV)RURIWKHILUPVWKHUHZDVDQLQWHQVLYHPXWXDOWUDQVIHURI NQRZOHGJHFRQVLGHUHGDVLPSRUWDQWRUYHU\LPSRUWDQW)RUWKHRWKHUWKHWUDQVIHUZDVLQD RQHZD\GLUHFWLRQ$QLQWHUSUHWDWLRQRIWKHVHUHVXOWVFRXOGEHWKDWIRURIWKHILUPVWKHSROLF\ PHHWVWKHLUREMHFWLYHVLQFUHDWLQJV\QHUJLHVE\DSURFHVVRIPXWXDORUFROOHFWLYHOHDUQLQJEHWZHHQ ILUPVDQGRWKHUDJHQWVRIWKHLQQRYDWLRQV\VWHP)RUWKHOHDUQLQJSURFHVVLVLQGLYLGXDOZKLOH IRUWKHUHLVQROHDUQLQJHIIHFW 7DEOH 'LUHFWLRQRURULHQWDWLRQRIWKHNQRZOHGJHWUDQVIHUOHDUQLQJEHWZHHQILUPDQGUHVHDUFKFHQWUHV E\W\SHRIILUPV5'LQWHQVLW\DQGVL]H 7KHWUDQVIHURINQRZOHGJH 7KHWUDQVIHURINQRZOHGJH 6L]HRIWKH /HYHORI5' (TXDOOHYHO IURPWKHILUPWRWKHUHVHDUFK IURPWKHUHVHDUFKFHQWUHWR ILUP LQWHQVLW\ RIOHDUQLQJ WKHILUPLVKLJKHU FHQWUHLVKLJKHU &OHDUO\ 0RGHUDWHO\ 0RGHUDWHO\ &OHDUO\ ORZ 6PDOO 0HGLXPKLJK ORZ 0HGLXP 0HGLXPKLJK ORZ /DUJH 0HGLXPKLJK 7RWDO 2ZQHODERUDWLRQRQWKH,$,))(&<7VXUYH\,WLVLPSRUWDQWWRQRWLFHWKDWWKHOHDUQLQJHIIHFWVIRUWKHUHVHDUFK FHQWUHVZHUHPHDVXUHGE\WKHRSLQLRQRIWKHILUPV KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ $OVRWKHGLUHFWLRQRIWKHWHFKQRORJ\WUDQVIHUZDVDQDO\VHG7ZHOYHSHUFHQWRIWKHILUPVLQGLFDWH WKDWWKH\UHFHLYHGLQQHWWHUPV FOHDUO\PRUHNQRZOHGJHDQGLQIRUPDWLRQWKDQWKH\WUDQVIHUUHGWR WKH UHVHDUFK FHQWUHV ZKLOH DQRWKHU IRXUWHHQ SHUFHQW DOVR FRQVLGHU WKDW WKH\ KDYH OHDUQHG UDWKHU PRUH WKDQ WKHLU SDUWQHUV (J FRQVLGHU WKDW WKH\ KDYH OHDUQHG PRUH IURP WKH UHVHDUFK LQVWLWXWHV WKDQ WKHVH LQVWLWXWHV KDYH OHDUQHG IURP WKH ILUP :KLOH WKH RSSRVLWH VLWXDWLRQ WKH UHVHDUFK FHQWUHV DUH QHW UHFHLYHUV ZDV UHIOHFWHG IRU RI WKH FDVHV ,Q RI WKH FDVHV WKH UHVHDUFKFHQWUHVFOHDUO\OHDUQHGPRUHIURPWKHLUFRRSHUDWLRQSDUWQHUVZKLOHIRUWKHLUOHDUQLQJ DGYDQWDJHVZHUHPRUHPRGHUDWHG,QSDUWLFXODUWKHVPDOOHVWORZWHFKILUPVDUHWKHQHWUHFHLYHUVRI WKHVFLHQWLILFDQGWHFKQRORJLFDONQRZOHGJHZKLOHLQRQO\RIWKHVPDOOKLJKWHFKILUPV ZHUH WKH UHFHLYHG IORZV RI NQRZOHGJH DQG LQIRUPDWLRQ KLJKHU WKDQ WKH WUDQVIHUUHG WHFKQRORJLHV 7KHRSSRVLWHVLWXDWLRQWKHUHVHDUFKFHQWUHVDUHQHWUHFHLYHUV ZDVIRXQGIRURIWKHVPDOOKLJK WHFK ILUPV DQG RQO\ IRU RI WKH VPDOO ORZ WHFK RQHV )RU WKH RWKHU VXEVDPSOHV RI ILUPV QR VWDWLVWLFDOO\VLJQLILFDQWGLIIHUHQFHVZHUHGHWHFWHG )RUPHUVWXGLHVRIWKH 6SDQLVKFDVH+HLMVLQGLFDWHGWKDWWKHOHDUQLQJHIIHFWVDUHOHVV LQ WKH FDVH RI WKH IUHHULGHUV IURP D ILQDQFLDO SHUVSHFWLYH 7KLV LV DQ LPSRUWDQW IDFW EHFDXVH LW FRQIOLFWVZLWKWKHLGHDRIWKHHYROXWLRQDU\WKHRU\WKDWDFHUWDLQOHYHORIIUHHULGLQJFDQEHDFFHSWHG LI WKHUH DUH RWKHU ZLGHU HIIHFWV WKDW PDNH WKH VXEYHQWLRQ SURILWDEOH 7KLV DUJXPHQW WR MXVWLI\ WKH SROLF\ZRXOGEHHUURQHRXVLQWKHHYHQWWKDWWKHIUHHULGHUHQWHUSULVHVVKRZIHZHUZLGHUHIIHFWVDQG WKHUHIRUHWKHDYRLGLQJRIIUHHULGLQJ VKRXOGUHFHLYHHYHQPRUHDWWHQWLRQIURPWKHSROLF\PDNHUV &RQVHTXHQWO\DILQDODVSHFWRIWKHOHDUQLQJHIIHFWVWKDWZLOOEHDQDO\VHGLVWKHLUFRUUHODWLRQZLWKWKH GLIIHUHQWEDVLFLQGLFDWRUVRIWKHLPSDFWRQWKHFRRSHUDWLRQDQGWKHIUHHULGLQJDWWLWXGH 7DEOHV DQG VKRZ RQ WKH RQH KDQG WKDW WKH ILUPV ZLWK SULRU H[SHULHQFH LQ FRRSHUDWLRQ DQG WKDW IUHTXHQWO\ SDUWLFLSDWH LQ SXEOLF VXSSRUW SURJUDPPHV VKRZ D ORZHU OHYHO RI OHDUQLQJ 2Q WKH FRQWUDU\ HVSHFLDOO\ LQ WKH FDVH RI ILUPV IRU ZKLFK FRRSHUDWLRQ LV UHODWLYHO\ QHZ WKH OHDUQLQJ HIIHFWV VHHP WR EH KLJKHU 2Q WKH RWKHU KDQG IUHHULGLQJ IURP D FRRSHUDWLYH RU D ILQDQFLDO SHUVSHFWLYHLVQRWVWDWLVWLFDOO\UHODWHGWRWKHOHDUQLQJHIIHFWV 7DEOH 7KHLPSRUWDQFHIRUWKHWUDQVIHURINQRZOHGJHIURPWKHILUPWRWKHUHVHDUFKFHQWUHV ,PSRUWDQFHRIWKHOHDUQLQJHIIHFWVIRUWKHUHVHDUFKFHQWUHV /RZ 0HGLXP +LJK ,3ULRUH[SHULHQFHLQ <HV &RRSHUDWLRQ 1R <HV ,,&OLHQWHOLVPQV 1R ,,,)UHHULGHUIURPD <HV FRRSHUDWLYHSHUVSHFWLYHQV 1R ,9)UHHULGHUIURPD <HV ILQDQFLDOSHUVSHFWLYHQV 1R 9)HDVLELOLW\RIWKHSURMHFW <HV ZLWKRXWFRRSHUDWLRQ 1R 6RXUFHRZQHODERUDWLRQEDVHGRQWKH,$,))(&<7VXUYH\%DVHGRQWKHRSLQLRQRIWKHILUPV:LWKLQEUDFNHWVWKH OHYHORIVLJQLILFDQFHLQSHUFHQWDJHQV QRWVLJQLILFDQW 7KHUHIRUHZHFRPSDUHGIRUHDFKILUPWKHYDOXHRIWKHLPSRUWDQFHIRUWKHUHFHLYHGDQGWKHWUDQVIHUUHGNQRZOHGJH DQGLQIRUPDWLRQ KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ 3URILOHRIWKHILUPVZLWKDORZHURUKLJKHULPSDFWDQHFRQRPHWULFPRGHO ,QWKLVSDUWRIWKHSDSHUZHDQDO\VHPRUHEURDGO\ZKLFKW\SHRIILUPVDUHPRUHLQIOXHQFHGE\WKH SXEOLF VXSSRUW PHDVXUHV DQG ZKLFK NLQG RI ILUPV FRXOG EH FKDUDFWHULVHG DV IUHHULGHUV )RU WKLV SXUSRVHZHHVWLPDWHGORJLVWLFUHJUHVVLRQPRGHOV)LUVWZHGLYLGHGWKHVDPSOHEHWZHHQILUPVZLWKD ORZOHYHORILPSDFWFRPSDUHGWRWKHRQHVZLWKDKLJKLPSDFWDQGVHFRQGO\ZHHVWLPDWHGWKHPRGHO VHHWDEOH 7DEOH 7KHLPSRUWDQFHIRUWKHWUDQVIHURINQRZOHGJHIURPWKHUHVHDUFKFHQWUHVWRWKHILUPV ,PSRUWDQFHRIWKHOHDUQLQJHIIHFWVIRUWKHHQWHUSULVHV /RZ 0HGLXP +LJK ,3ULRUH[SHULHQFHLQ <HV FRRSHUDWLRQ 1R <HV ,,&OLHQWHOLVP 1R ,,,)UHHULGHUIURPD <HV FRRSHUDWLYHSHUVSHFWLYHQV 1R ,9)UHHULGHUIURP D <HV ILQDQFLDOSHUVSHFWLYHQV 1R 9)HDVLELOLW\RIWKHSURMHFW <HV ZLWKRXWFRRSHUDWLRQ 1R 6RXUFHRZQHODERUDWLRQEDVHGRQWKH,$,))(&<7VXUYH\:LWKLQEUDFNHWVWKHOHYHORIVLJQLILFDQFHLQSHUFHQWDJHQV QRWVLJQLILFDQW $V DOUHDG\ VKRZQ LQ WKH IRUPHU VHFWLRQ WKH ODUJH ILUPV PRUH RIWHQ KDG KDG SULRU FRRSHUDWLRQ SDUWLFLSDWHG PRUH RIWHQ LQ VHYHUDO SURJUDPPHV DW RQFH DQG KDYH D KLJKHU OLNHOLKRRG RI EHLQJ IUHHULGHUV ERWK IURP D FRRSHUDWLYH DQG D ILQDQFLDO SHUVSHFWLYH +RZHYHU WKH TXHVWLRQ LV LI WKLV UHODWLRQVKLSLVWKHUHVXOWRIWKHLUVL]HRURWKHUZLVHFRXOGEHUHODWHGWRRWKHUFKDUDFWHULVWLFVRIWKH ODUJHILUPV7KHUHVXOWVRIWKHFRQWLQJHQF\WDEOHVDQGWKHFRUUHVSRQGLQJDVVRFLDWLRQWHVWVSUHVHQWHG LQ VHFWLRQ DUH HDV\ WR LQWHUSUHW DOEHLW WKH\ GR QRW WDNH LQWR DFFRXQW WKH LQWHUDFWLRQ EHWZHHQ LQGHSHQGHQWYDULDEOHV6RPHWLPHVWKHDVVRFLDWLRQWKDWVHHPVWRH[LVWEHWZHHQIUHHULGLQJDQGVL]H FRXOGEHFDXVHGE\DWKLUGYDULDEOHDSSDUHQWUHODWLRQVKLSVH[DPSOHVHFWRUDOGLIIHUHQFHVLQVL]H 7KHUHIRUH , LQWURGXFHG D VHFRQG VWDWLVWLFDO DQDO\VLV EDVHG RQ D ORJLVWLF UHJUHVVLRQ PRGHO 7KLV PHWKRGWDNHVLQWRDFFRXQWWKHVLPXOWDQHRXVHIIHFWVRIWKHLQGHSHQGHQWYDULDEOHVRQWKHYDULDEOHWR H[SODLQ 7DEOH0RWLYHVWRFRRSHUDWHZLWKUHVHDUFKFHQWUHV 0RWLYHV 6DYLQJRUUHGXFWLRQRIFRVWV 2EOLJDWLRQWRREWDLQSXEOLFVXSSRUW $FFHVVWRVSHFLDOLWLHVDQGTXDOLILFDWLRQVQRW DYDLODEOHLQRZQ ILUP $FFHVVWRLQIUDVWUXFWXUHDQGHTXLSPHQWQRW DYDLODEOHLQRZQILUP )ROORZLQJXSRIWHFKQLFDODGYDQFHV $FTXLULQJRIH[SHULHQFHDQGNQRZOHGJH 7DNHQIURP+HLMVHWDOOE /RZ ,03257$1&( ,QWHUPHGLDWH +LJK 7RWDO KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ 3URILOHRIWKHW\SHRIILUPVZLWKDORZRUKLJKOHYHORILPSDFWDORJLVWLFUHJUHVVLRQPRGHO 3ULRU H[SHULHQFHLQ FRRSHUDWLRQ FOLHQWHOLVP )UHHULGLQJ IURPD FRRSHUDWLYH SHUVSHFWLYH )UHHULGLQJ IURPD ILQDQFLDO SHUVSHFWLYH 6L]H ([SRUWSURSHQVLW\ $JHRIWKHILUP ,QGLYLGXDOHQWHUSULVHVUHIHUHQFHFDWHJRU\ (QWHUSULVHRIDQDWLRQDOJURXS )RUHLJQHQWHUSULVHV 3URGXFHUVRIWUDGLWLRQDOFRQVXPHUJRRGV 3URYLGHUVRIWUDGLWLRQDOLQWHUPHGLDWHJRRGV 3URYLGHUVRIVSHFLDOLVHGPDFKLQHU\DQG HTXLSPHQW 6FDOHLQWHQVLYHVHFWRUVDQGPDVVDVVHPEOHUV 6FLHQFHEDVHGVHFWRUV 2WKHUPDQXIDFWXUHUV +LJKWHFKVHUYLFHV 2WKHUVHUYLFHVUHIHUHQFHFDWHJRU\ 5'LQWHQVLW\5'H[SHQGLWXUHVE\VDOHV ,QQRYDWLYHLQWHQVLW\([SHQGLWXUHVRQ LQQRYDWLRQE\VDOHV 3HUVRQQHOLQ5' ,QQRYDWLYHUHJXODULW\ ,PSRUWDQFHRIEDVLFUHVHDUFK ,PSRUWDQFHRIDSSOLHGUHVHDUFK ,PSRUWDQFHRIWHFKQLFDOGHYHORSPHQW 3HUFHQWDJHRIVDOHVUHODWHGWR³LQQRYDWLYH´ SURGXFWV 3HUFHQWDJHRIH[SRUWVUHODWHGWR³LQQRYDWLYH´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³RWKHU PDQXIDFWXUHUV´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³LQQRYDWLYH´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¶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³IUHHULGHUV´ OHVVIUHTXHQWO\ UHIOHFW D OHDUQLQJ HIIHFW RI WKH VXSSRUWHG SURMHFWV DQG LI WKH\ H[LVW WKH\ DUH FRQVLGHUHG DV OHVV LPSRUWDQW 7KLV IDFW ZRXOG LQYDOLGDWH WKH DUJXPHQW RI WKH ³HYROXWLRQDU\ WKHRU\´ RI DFFHSWLQJ IUHHULGLQJ LI WKHLU DUH ZLGHU VRFLDOZHOIDUHHIIHFWV7KHUHVXOWVRIWKLVSDSHUDUHQRWWRWDOO\FRQFOXVLYHZHIRXQGDOHVVHULPSDFW IRUWKHILUPVZLWKSULRUH[SHULHQFHLQFRRSHUDWLRQDQGWKRVHWKDWSDUWLFLSDWHPRUHRIWHQLQVLPLODU SXEOLF VXSSRUWSURJUDPV +RZHYHUERWKLQGLFDWRUVRIIUHHULGLQJIURPDFRRSHUDWLYHRIILQDQFLDO SHUVSHFWLYHDUHXQUHODWHGWRWKHOHYHORIOHDUQLQJ $ ILQDO DVSHFW DQDO\VHG LQ WKH SDSHU LV WKH SURILOH RI WKH ILUPV ZLWK D KLJKHU RU ORZHU OHYHO RI LPSDFWWRLPSURYHWKHVHOHFWLRQRIWKHLQQRYDWLYHSURMHFWVIRFXVHGRQDUHGXFWLRQRIIUHHULGLQJLH LPSURYHPHQWRIWKHLPSDFW7KHWZRPDLQILQGLQJVRIWKHORJLVWLFUHJUHVVLRQPRGHOVFRQILUPWKH UHVXOWVRIWKHH[LVWLQJHPSLULFDOVWXGLHV2QRQHVLGHLWFDQEHSRLQWHGRXWWKDWWKHVL]HRIWKHILUP LV D FOHDU H[SODQDWRU\ YDULDEOH UHODWHG WR WKH IUHHULGHU EHKDYLRXU /DUJH ILUPV DUH PRUH SURQH WR IUHHULGLQJ D IDFW DOVR FRQILUPHG E\ RWKHU VWXGLHV %HFKHU HW DO %HFKHU HW DO 0ROHUR%XHVDD.XOLFNHHWDO,(6( 2QWKHRWKHUKDQGRXUUHVXOWVDVZHOODVWKHFDVHVWXGLHVGHPRQVWUDWHWKDWWKHKLJKOHYHORI5' HIIRUWV DQG D PRUH LQQRYDWLYH RULHQWDWLRQ FRUUHODWHV ZLWK D ORZHU OHYHO RI IUHHULGLQJ 0H\HU .UDKPHU%HFKHUHWDO0ROHUR%XHVDD.XOLFNHHWDO+HLMV +HLMV HW DOO E 7KH UHODWLYHO\ KLJKHU OHYHO RI IUHHULGLQJ E\ WKHLQQRYDWLYH ILUPV WKDW UHDFKHG D YHU\ KLJK 5' OHYHO DOWKRXJK WKH GLIIHUHQFHV DUH VPDOO FRXOG SHUKDSV EH H[SODLQHG E\ WZR UHDVRQV )LUVWO\ LQQRYDWLRQ LV D SRVVLEOH NH\ DVSHFW RI WKHLU JOREDO FRUSRUDWH VWUDWHJ\DQGDQLPSRUWDQWDVSHFWIRUWKHLUFRPSHWLWLYHSRVLWLRQLQWKHPDUNHWVZKHUHWKH\RSHUDWH 7KH\DUHWKHUHIRUHIRUFHGWRFDUU\RXWWKHLUSURMHFWVDQ\ZD\$VHFRQGH[SODQDWLRQFRXOGEHWKH IDFWWKDWWKRVHILUPVKDYHVKRZQZHOOGHYHORSHGWHFKQRORJLFDOFDSDELOLWLHVDQGWKDWWKH\EXLOWXSD VLWXDWLRQRIPXWXDOWUXVWZLWKWKHILQDQFLDOLQVWLWXWLRQV 7KH UHVXOWV RI WKH ,$,))(&<7 TXHVWLRQQDLUH FRQILUP WKDW WKH ILUPV EHORQJLQJ WR WKH 5' LQWHQVLYH VHFWRUV DUH OHVV JLYHQ WR D IUHHULGHU DWWLWXGH IURP D ILQDQFLDO SHUVSHFWLYH 0H\HU KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ .UDKPHU %HFKHU 7KLV IDFW FRORXUV WKH UHVXOWV UHODWHG WR WKH LQQRYDWLYH RULHQWDWLRQ DQGHIIRUWV7KHORJLVWLFUHJUHVVLRQPRGHOZKLFKVLPXOWDQHRXVO\DQDO\VHVWKHLQWHUDFWLRQEHWZHHQ GLIIHUHQWH[SODQDWRU\YDULDEOHV VHHPVWRLQGLFDWHWKDWPRUHLQQRYDWLYHILUPVDUHPRUHSURQHWREH IUHHULGHUVKRZHYHUZLWKLQWKLVJURXSWKRVHWKDWDUHIURPWKHKLJKWHFKVHUYLFHVHFWRUKDYHDORZHU OHYHORIIUHHULGLQJ)XUWKHUPRUHWKHDERYHDYHUDJHIUHHULGHUIURPDILQDQFLDOSHUVSHFWLYHVKRZE\ WKHILUPVEHORQJLQJWRDJURXSRIHQWHUSULVHV%HFKHULVFRQILUPHGE\RXUUHVXOWV $VHFRQGLPSRUWDQWFRQFOXVLRQLVWKDWWKHLGHQWLILFDWLRQRIWKHILUPVZLWKDUHODWLYHO\KLJKRUORZ OHYHO RI IUHHULGHU DWWLWXGH VKRZV XV WKDW WKH GLIIHUHQFHV DUH YHU\ VPDOO 7KH\ VHHP WR EH EDVHG EDVLFDOO\ RQ WZR LQGLFDWRUV WKH VL]H DQG WKH LQQRYDWLYH OHYHO RI WKH ILUP 0RUHRYHU VRPH RI WKH PRWLYHVIRUFRRSHUDWLRQDUHDOVRFRUUHODWHGZLWKWKHOHYHORIIUHHULGLQJ7KLVLVHVSHFLDOO\WKHFDVH RI WKH ILUPV WKDW FRRSHUDWH WR JDLQ DFFHVV WR WHFKQLFDO LQIUDVWUXFWXUHV QRW DYDLODEOH LQ WKHLU RZQ ILUP 7KH LGHQWLILFDWLRQ RI WKH ILUPV ZLWK D UHODWLYHO\ KLJK OHYHO RI IUHHULGHU DWWLWXGH ZDV DLPHG DW WKH LPSURYHPHQW RI SROLF\ LPSOHPHQWDWLRQ ,W VKRXOG RIIHU WKH SXEOLF DJHQFLHV GDWD WR HVWDEOLVK UHTXLUHPHQWVFULWHULDRUSULRULWLHVWRLPSURYHWKHVHOHFWLRQPHFKDQLVPXVHGIRUWKHHYDOXDWLRQRI WKHSURMHFWV7KHDQDO\VLVKRZHYHURIIHUHGKDUGO\DQ\UHVXOWVWKDWFDQEHFRQYHUWHGLQWRFOHDUO\ GHILQHG UHTXLUHPHQWV DSSOLFDEOH LQ WKH SUDFWLFH RI SURMHFW HYDOXDWLRQ DQG WKDW FDQ EH GHIHQGHG SROLWLFDOO\ 7KH RQO\ YDULDEOH GLUHFWO\ FRQYHUWLEOH LQWR D SUDFWLFDO UHTXLVLWH IRU REWDLQLQJ FUHGLWV FRXOG EHWKH VL]HRIWKHILUP7KHUHVXOWVLQGLFDWHWKDWDOPRVWRIWKHVPDOOHVWILUPVXSWRHPSOR\HHV FRQVLGHUSXEOLFVXSSRUWDVLPSRUWDQW IRUWKHLULQQRYDWLYHDFWLYLWLHVFRQYHUVHO\IRUWKHODUJHUILUPV WKLVSHUFHQWDJHGRHVQRWH[FHHG7KHUHIRUHSXEOLFDJHQFLHVFRXOGUHTXLUHIURPWKHODUJHILUPV D KLJKHU LQWHUHVW UDWH FORVHU WR WKH PDUNHW ,Q WKLV ZD\ WKH\ GR QRW H[FOXGH ODUJH ILUPV IURP WKH SURJUDPPHVEXWDWWKHVDPHWLPHIUHHULGHUDWWLWXGHVZLOOEHDYRLGHG 2WKHU YDULDEOHV UHODWHG WR WKH GLIIHUHQW LQGLFDWRUV IRU IUHHULGHU DWWLWXGH DUH QRW FRQYHUWLEOH UHTXLUHPHQWV XVHIXO LQ WKHSUDFWLFH RI SROLF\PDNLQJIRU H[DPSOH LWGRHVQRWVHHPUHDVRQDEOHWR H[FOXGH ILUPV ZLWK D KLJK OHYHO RI 5' H[SHQGLWXUHV E\ VDOHV WKRVH WKDW FRQVLGHU WKH 5' DV LPSRUWDQW RU WKRVH WKDW FRRSHUDWH WR JDLQ DFFHVV WR WKH SXEOLF UHVHDUFK LQIUDVWUXFWXUH 7KHVH YDULDEOHVWKRXJKFDQVHUYHWRUHYLVHRULPSURYHWKHLQWHUQDOSURFHVVRISURMHFWHYDOXDWLRQ KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ $QQH[ ,1',&$725, 7DEOH ([LVWHQFHRISULRUH[SHULHQFHLQFRRSHUDWLRQ RIILUPVZLWKSULRU&XSHUWLQR RIILUPVZLWKSULRU&XSHUWLQR H[SHULHQFHVE\QXPEHURI H[SHULHQFHVE\5' 6 H[SHQGLWXUHVE\VDOHV HPSOR\HHV 2YHU 2YHU :LWKWKHVDPHLQVWLWXWHLQYROYHGLQ WKHVXEVLGLVHGSURMHFW :LWKRWKHU5'LQVWLWXWHV 6 3UHYLRXVH[SHULHQFHLQFR RSHUDWLRQRU 6RXUFH2ZQFDOFXODWLRQEDVHGRQWKH,$,))(&<7VXUYH\ /HYHORIVLJQLILFDQFH 1RWVLJQLILFDQW 7DEOH &OLHQWHOLVP3DUWLFLSDWLRQLQVLPLODUSXEOLFVXSSRUWSURJUDPPHVWKDWSURPRWHFRRSHUDWLRQLQLQQRYDWLRQ RIILUPVSDUWLFLSDWLQJLQ RIILUPVSDUWLFLSDWLQJLQRWKHU RWKHUSURJUDPPHVE\QXPEHU SURJUDPPHVE\5' RIHPSOR\HHV 6 H[SHQGLWXUHVE\VDOHV 6 ,1',&$725,, 2YHU 2YHU 5HJLRQDOSURJUDPPHV 1DWLRQDOSURJUDPPHV (XURSHDQ8QLRQ &OLHQWHOLVPRUSURSHQVLW\WRSDUWLFLSDWH LQRWKHUSXEOLFVXSSRUWSURJUDPPHVRQ FRRSHUDWLRQRU 6RXUFH2ZQFDOFXODWLRQEDVHGRQWKH,$,))(&<7VXUYH\ /HYHORIVLJQLILFDQFH 1RWVLJQLILFDQW 7DEOH )UHHULGHUDWWLWXGHIURPDFRRSHUDWLYHSHUVSHFWLYH ,QGLUHFWLQGLFDWRUWKDWFRXOGUHIOHFWWKHODFNRILQFUHDVHLQFRRSHUDWLRQ IUHHULGHUVE\QXPEHURI RIIUHHULGHUVE\5' HPSOR\HHV H[SHQGLWXUHVE\VDOHV ,1',&$725,,, 6 RYHU 3ULRUFRRSHUDWLRQZLWKWKHVDPHLQVWLWXWHLQYROYHG LQWKHVXEVLGLVHGSURMHFW 7KH&RRSHUDWLRQZRXOGDOVRKDYHRFFXUUHG ZLWKRXWSXEOLFVXSSRUW 7KHSURMHFWZRXOGDOVRKDYHEHHQLQLWLDWHGZLWKRXW SXEOLFVXSSRUW )HDVLELOLW\RIWKHSURMHFWZLWKRXWSXEOLFVXSSRUW )UHHULGHUDWWLWXGHIURPDFRRSHUDWLYH SHUVSHFWLYHRURU 6RXUFH2ZQFDOFXODWLRQEDVHGRQWKH,$,))(&<7VXUYH\ /HYHORIVLJQLILFDQFH 1RWVLJQLILFDQW 2YHU 6 KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ 7DEOH )UHHULGHUDWWLWXGHIURPDILQDQFLDOSHUVSHFWLYH %\QXPEHURIHPSOR\HHV ,1',&$725,9DQG9 2YHU /RZWHFKQRORJLFDOIHDVLELOLW\RIWKHSURMHFW ZLWKRXWFRRSHUDWLRQ 7KHSURMHFWZRXOGDOVRKDYHEHHQLQLWLDWHG ZLWKRXWSXEOLFVXSSRUW 7KHILUPKDVIHZGLIILFXOWLHVWRILQDQFHWKH SURMHFWZLWKRXWVXSSRUW 7KHILUPXVHGWKHVXSSRUWWRVXEVWLWXWHSULYDWH E\SXEOLFPRQH\ )UHHULGHUDWWLWXGHIURPDILQDQFLDO SHUVSHFWLYHRURU 6 %\5'LQWHQVLW\5' H[SHQGLWXUHVE\VDOHV 2YHU 6 ,1',&$7259 6RXUFH 2ZQFDOFXODWLRQEDVHGRQWKH,$,))(&<7VXUYH\ /HYHORIVLJQLILFDQFH 1RWVLJQLILFDQW 7DEOH,QWHUDFWLRQEHWZHHQWKHEDVLFLQGLFDWRUV 3ULRUH[SHULHQFHLQFRRSHUDWLRQ <HV 1R <HV )UHHULGHUIURPDFRRSHUDWLYH SHUVSHFWLYH )UHHULGHUIURPDILQDQFLDOSHUVSHFWLYH )UHHULGHUIURPDFRRSHUDWLYH SHUVSHFWLYH )UHHULGHUIURPDILQDQFLDOSHUVSHFWLYH &OLHQWHOLVP 12 3ULRUH[SHULHQFHLQFRRSHUDWLRQRUFOLHQWHOLVP <HV 1R )UHHULGHUIURPDFRRSHUDWLYHSHUVSHFWLYH )UHHULGHUIURPDILQDQFLDOSHUVSHFWLYH <HV 1R <HV 1R $OOGLIIHUHQFHVZHUHVWDWLVWLFDOO\VLJQLILFDQWDWDSHUFHQWOHYHOH[FHSWLQWKHFDVHVPDUNHGZLWKDQWKDWDUHQRW VWDWLVWLFDOO\VLJQLILFDQW KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ %LEOLRJUDSK\ $FRVWD-$QiOLVLV(FRQyPLFRGHOD3ROtWLFD7HFQROyJLFD8QD$SUR[LPDFLyQ(FRQRPpWULFDDORV3UR\HFWRV &RQFHUWDGRVGHO3ODQ1DFLRQDOGH,'7HVLV'RFWRUDO8QLYHUVLGDGGH/DJXQD $JXDGR5&RRSHUDFLyQHQLQYHVWLJDFLyQ\GHVDUUROORWHFQROyJLFRGHODVHPSUHVDVDQGDOXFHVLQGXVWULDOHV 7HVLV'RFWRUDO $UFKLEXJL'&HVDUDWWR66LULOL*6RXUFHVRI,QQRYDWLYH$FWLYLWLHVDQG,QGXVWULDO2UJDQLVDWLRQ5HVHDUFK 3ROLF\9RO %DOOHVWHURV-0RGUHJR $3XEOLFILQDQFLQJRIFRRSHUDWLYH5'SURMHFWVLQ6SDLQ7KHFRQFHUWHGSURMHFWV XQGHUWKH1DWLRQDO5'3ODQ5HVHDUFK3ROLF\ %D\RQD&*DUFtD0DUFR7+XHUWD()LUPVPRWLYDWLRQVIRUFRRSHUDWLYH5'DQHPSLULFDODQDO\VLVRI 6SDQLVKILUPV %D\RQD&*DUFtD0DUFR7+XHUWD(¢&RRSHUDUHQ,'"&RQTXLpQ\SDUDTXp5HYLVWDGH(FRQRPtD $SOLFDGD1XP9RO;,33 %HOGHUERV5&DUUHH0'LHGHUHQ%/RNVKLQ%9HXJHOHUV5+HWHURJHQHLW\LQ5'FRRSHUDWLRQ VWUDWHJLHV&(35'LVFXVVLRQ3DSHUV1XP %XVRP,)HUQDQGH]$ )LUPV¶VWUDWHJLHVLQ5'&RRSHUDWLRQDQGSDUWLFLSDWLRQLQ5'SURJUDPPHV :RUNLQJ'RFXPHQW'HSDUWDPHQWRGH(FRQRPLD$SOLFDGD8QLYHUVLGDG$XWRQRPDGH%DUFHORQD &DSURQ+(FRQRPLFDQG4XDQWLWDWLYH0HWKRGVIRUWKH(YDOXDWLRQRIWKH,PSDFWRI5'3URJUDPPHVD6WDWH RI$UW8QLyQ(XURSHD&LH&H0RQLWRU?6SHDU1RY &RVWD 07 &DOOHMyQ 0 /D FRRSHUDFLyQ HQWUH HPSUHVDV 8QD QXHYD HVWUDWHJLD FRPSHWLWLYD 0LQLVWHULR GH ,QGXVWULD&RPHUFLR\7XULVPR0DGULG 'RGJVRQ07HFKQRORJLFDOFROODERUDWLRQDQGLQQRYDWLRQ(Q'RGJVRQ05RWKZHOO5+DQGERRNRI ,QGXVWULDO,QQRYDWLRQ(GZDUG(OJDU 'RVL*3HUVSHFWLYHVRQ(YROXWLRQDU\7KHRU\6FLHQFHDQG3XEOLF3ROLF\9RO1R 'RVL*)UHHPDQ&1HOVRQ56LOYHUEHUJ*7HFKQLFDO&KDQJHDQG(FRQRPLF7KHRU\3LQWHUV3XEOLVKHUV )RQWHOD(3XOLGR$6DQFKH]039,FHQV-(YDOXDFLyQGHOD$FWXDFLyQGHO&'7,HQ$SR\RDOD,' &'7, )|OVWHU6 'RVXEVLGLHVWRFRRSHUDWLYH5'DFWXDOO\VWLPXODWH5'LQYHVWPHQWDQGFRRSHUDWLRQ5HVHDUFK 3ROLF\ )|OVWHU *DUFtD&DQDO(/DFRRSHUDFLyQLQWHUHPSUHVDULDOHQ(VSDxD&DUDFWHUtVWLFDVGHORVDFXHUGRVVXVFULWRVHQWUH \(FRQRPtD,QGXVWULDO-XOLR$JRVWR0DGULG +DJHQGRRUQ-6WUDWHJLF7HFKQRORJ\3DUWQHULQJGXULQJWKH67UHQGV1HWZRUNVDQG&RUSRUDWH3DWWHUQV LQ1RQ&RUH7HFKQRORJLHV5HVHDUFK3ROLF\ 9RO +DJHGRRUQ-/LQN$1DQG9RQRUWDV165HVHDUFKSDUWQHUVKLSV5HVHDUFK3ROLF\ +DJHGRRUQ-,QWHUILUP5'SDUWQHUVKLSV$QRYHUYLHZRIPDMRUWUHQGVDQGSDWWHUQVVLQFH5HVHDUFK 3ROLF\SS +DJHQGRRUQ-1DUXOD5&KRRVLQJRUJDQLVDWLRQDOPRGHVRIVWUDWHJLFWHFKQRORJ\SDUWQHULQJLQWHURUJDQVDWLRQDO PRGHVRIFRRSHUDWLRQDQGVHFWRUDOGLIIHUHQFHV6WUDWHJLF0DQDJHPHQW-RXUQDO +HLMV-/D'LIXVLRQGHORV&UpGLWRVGHO&'7,HQHO3DtV9DVFR\1DYDUUD(NRQRPLD]5HYLVWD9DVFDGH (FRQRPtD1 +HLMV-)LQDQFLDFLyQS~EOLFDGHODVDFWLYLGDGHVLQQRYDGRUDVHPSUHVDULDOHV(YDOXDFLyQGHORVFUpGLWRVEODQGRV SDUDSUR\HFWRVGH,'7HVLV'RFWRUDO8QLYHUVLGDG&RPSOXWHQVHGH0DGULG +HLMV-3ROtWLFDWHFQROyJLFDVH,QQRYDFLyQ(YDOXDFLyQGHODILQDQFLDFLyQS~EOLFDGH,'HQ(VSDxD&RQVHMR (FRQyPLFR\6RFLDOGH(VSDxD0DGULG +HLMV- 7KH6SDQLVKSXEOLFILQDQFLDOVXSSRUWDFFHVVLEOHIRUVPDOODQGPHGLXPVL]HGILUPVRUJDQLVDWLRQV SURJUDPPHVLQVWUXPHQWVDQGPHDVXUHV,QVWLWXWRGH$QiOLVLV,QGXVWULDO\)LQDQFLHUR'RFXPHQWRGHWUDEDMR1 +HLMV-)UHHULGHUEHKDYLRXUDQGWKHSXEOLFILQDQFLQJRI5'DFWLYLWLHVLQHQWHUSULVHVWKHFDVHRIWKH6SDQLVK ORZLQWHUHVWFUHGLWVIRU5'5HVHDUFK3ROLF\9ROXPH1XPEHU3S +HLMV-$QGUpV)HUQiQGH]'tD]3DWULFLD9DODGH]\$OLFLD&RURQLOD(YDOXDFLyQGHODHIHFWLYLGDGGHOD SROtWLFDGHFRRSHUDFLyQHQODLQQRYDFLyQ'RFXPHQWRGHWUDEDMR1,QVWLWXWRGH$QiOLVLV,QGXVWULDO\ )LQDQFLHUR +HLMV-%XHVD09DODGH]3E&RRSHUDFLyQHQWUHHPSUHVDVLQQRYDGRUDV\ODSROtWLFDWHFQROyJLFD (YLGHQFLDHPStULFDGHODHQFXHVWD,$,))(&<7,$,)'RFXPHQWRGHLQYHVWLJDFLyQ/DXWLOLGDGGHORVLQFHQWLYRV ILQDQFLHURVPHGLDQWHIRQGRVS~EOLFRVHQDSR\RDODFRRSHUDFLyQHQ,' ,$,) +HLMV-%XHVD0+HUUHUD/3F(IHFWRGHODSROtWLFDS~EOLFDVREUHODFRRSHUDFLyQHQLQQRYDFLyQ(OFDVR GH(VSDxD'RFXPHQWRGHLQYHVWLJDFLyQGHOSUR\HFWR/DXWLOLGDGGHORVLQFHQWLYRVILQDQFLHURVPHGLDQWHIRQGRV S~EOLFRVHQDSR\RDODFRRSHUDFLyQHQ,' ,$,) KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ +HLMV-%XHVD09DODGH]3+HUUHUD/6DL]%ULRQHV-F(YDOXDFLyQGHODHIHFWLYLGDGGHODSROtWLFDGH FRRSHUDFLyQHQODLQQRYDFLyQUHYLVLyQGHODOLWHUDWXUD'RFXPHQWRGHWUDEDMR,QVWLWXWRGH(VWXGLRV)LVFDOHV +HLMV-9DODGH]36DL]%ULRQHV-G)RPHQWRGHODFRRSHUDFLyQHQLQQRYDFLyQHIHFWLYLGDG\ DSUHQGL]DMH ORVUHVXOWDGRVGHOD(QFXHVWD,$,))(&<70RQRJUDItD5HYLVWD0DGULG6HSWLHPEUH3S +HUGHQ5+H\GHQEUHFN3,QQRYDWLRQGXUFK7HFKQRORJLVFKHQ9HUIOHFKWXQJWXQJ$QDO\VHXQG8QWHUVWXW]XQJ ,QQRYDWLRQVRULHQWLHUWHU'LHQVWOHLVWXQJHQ7HLOSURMHNW,,, ,(6((YDOXDFLyQGHOD$FFLyQGHORV3UR\HFWRV&RQFHUWDGRVGHO3ODQ1DFLRQDOGH,' .DWVRXODFRV<(XURSHDQ&RPPXQLW\5'VXSSRUW(IIHFWVRQWKHFRRSHUDWLYHEHKDYLRXURIILUPV(XURSHDQ &RPPLVLRQ .XOLFNH0%URVV8*XQGUXP8,QQRYDWLRQVGDUOHKHQ$OV,QVWUXPHQW=XU)|UGHUXQJ.OHLQHUXQG0LWWOHUHU 8QWHUQHKPHQ,6,)UDXQKRIHU .XOLFNH06WDKOHFNHU7=HQNHU$-DSSH$6\VWHPDWLVFKHU9HUJOHLFKGHU,QVWUXPHQWHXQG ,QVWLWXWLRQHQGHUILQDQ]LHOOHQ)|UGHUXQJYRQ.08LQDXVJHZlKOWHQ/lQGHUQGHU(8)UDXQKRIHU,5%9HUODJ /OHUHQD3<0DW0 7HFKQRORJ\SROLF\DQGFRRSHUDWLRQ$SDUDGLJPDWLFDSSURDFK'UXLG:RUNLQJ3DSHU 1R 0H\HU.UDKPHU)'HU (LQIOXVV6WDDWOLFKHU7HFQRORJLHSROLWLHN$XI,QGXVWULHOOH,QQRYDWLRQHQ1RPRV 0H\HU.UDKPHU)*LHORZ*.XQW]H(,QQRYDWLRQVI|UGHUXQJEHL.OHLQHQXQG0LWWOHUHQ8QWHUQHKPHQ :LUNXQJVDQDO\VHYRQ=XVFKVVHQIU3HUVRQDOLQ)RUVFKXQJXQG(QWZLFNHOXQJ&DPSXV9HUODJ 0H\HU.UDKPHU)*LHORZ*.XQW]H8:LUNXQJVDQDO\VHGHU=XVFKVVHIU3HUVRQDOLP)RUVFKXQJXQG (QWZLFNHOXQJ(QGEHULFKWDQGGHU%XQGHVPLQLVWHUIU:LUWVFKDIW%RQQ,6,)UDXQKRIHU 0LRWWL/6DFKZDOG) &RRSHUDWLYH5':K\DQGZLWKZKRP"$QLQWHJUDWHGIUDPHZRUNDQDO\VLV 5HVHDUFK3ROLF\ 0RKQHQ3$QG+RDUHDX&:KDWW\SHRIHQWHUSULVHVIRUJHVFORVHVOLQNVZLWK8QLYHUVLWLHVDQG*RYHUQPHQW ODEV"(YLGHQFHIURPWKH&,60DQDJHULDODQG'HFLVLRQ(FRQRPLFV33 0ROHUR-%XHVD0'LUD$QiOLVLV\(YDOXDFLyQGHOD$FWXDFLyQGHO&'7,3ROtWLFD7HFQROyJLFDH ,QQRYDFLyQHQOD(PSUHVD(VSDxROD8QD(YDOXDFLyQGHOD$FWXDFLyQGHO&'7,,QVWLWXWRGH$QiOLVLV,QGXVWULDO\ )LQDQFLHUR 0ROHUR-%XHVD0'LUE$QiOLVLV\(YDOXDFLyQGHOD$FWXDFLyQGHO&'7,5HVXOWDGRV3UHOLPLQDUHVGHOD ([SORWDFLyQGHOD%DVHGH'DWRVGHO&'7,,QVWLWXWRGH$Qi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|UGHUXQJ EHL.OHLQHQXQG0LWWOHUHQ8QWHUQHKPHQ,6,)UDXQKRIHU 7HKWHU%7:KRFRRSHUDWHVIRULQQRYDWLRQDQGZK\DQHPSLULFDODQDO\VLV5HVHDUFK3ROLF\ 9HQFH;(G/D3ROtWLFD7HFQROyJLFD&RPXQLWDULD\OD&RKHVLRQ5HJLRQDOORV5HWRVGHORV6LVWHPDVGH ,QQRYDFLyQ3HULIHULFRV(GLWRULDO&LYLWDV :LQWHU66FKXPSHWHULDQ&RPSHWLWLRQLQ$OWHUQDWLYH7HFKQRORJLFDO5HJLPHV-RXUQDORI(FRQRPLF%HKDYLRXU DQG2UJDQL]DWLRQ6HSWHPEHU :ROOI+%HFKHU*'HOSKR+.XKOPDQQ6.XQW]H86WRFN-)X(.RRSHUDWLRQHQYRQNOHLQHQ XQGPLWWOHUHQ8QWHUQHKPHQ%HZHUWXQJGHU)RUGHUPDVVQDKPHQGHV%XQGHVIRUVFKXQJVPLQLVWHULXPV3K\VLFD9HUODJ +HLGHOEHUJ KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ Ò/7,0267Ë78/2638%/,&$'26 /RVVLVWHPDVUHJLRQDOHVGHLQQRYDFLyQGHO3DtV9DVFR\1DYDUUD0LNHO%XHVD &HQWUDOLVDWLRQ RU GLVSHUVLRQ" D VSDWLDO DQDO\VLV RI WKH LPSDFW RI WKH VLQJOH PDUNHW SURJUDPPHRQWKHDFWLYLW\RIXVPDQXIDFWXULQJDIILOLDWHV$QGUHZ0ROG (OVLVWHPDUHJLRQDOGHLQQRYDFLyQGHOD&RPXQLGDGGH0DGULG0LNHO%XHVD (FRQRPtDGHODVHFHVLyQ/RVFRVWHVGHODµ1R(VSDxD¶HQHO3DtV9DVFR0LNHO%XHVD 7KH VSDQLVK SXEOLF ILQDQFLDO VXSSRUW DFFHVLEOH IRU VPDOO DQG PHGLXP VL]HG ILUPV RUJDQLVDWLRQVSURJUDPHVLQVWUXPHQWVDQGPHDVXUHV-RRVW+HLMV /RVGHWHUPLQDQWHVGHODFDSDFLGDGLQQRYDGRUDUHJLRQDOXQDDSUR[LPDFLyQHFRQRPpWULFDDO FDVR HVSDxRO 5HFRSLODFLyQ GH HVWXGLRV \ SULPHURV UHVXOWDGRV 7KRPDV %DXPHUW \ -RRVW +HLMV 5HFXUVRV \ UHVXOWDGRV GH ORV VLVWHPDV GH LQQRYDFLyQ HODERUDFLyQ GH XQD WLSRORJtD GH VLVWHPDVUHJLRQDOHVGHLQQRYDFLyQHQ(VSDxD0yQLFD0DUWtQH]3HOOLWHUR 0HGLGD GH OD FDSDFLGDG LQQRYDGRUD GH ODV &RPXQLGDGHV $XWyQRPDV FRQVWUXFFLyQ GH XQ tQGLFHUHJLRQDOGHLQQRYDFLyQ 0yQLFD0DUWtQH]3HOOLWHUR\7KRPDV%DXPHUW ,QQRYDFLyQ WHFQROyJLFD \ FRPSHWLWLYLGDG DQiOLVLV PLFURHFRQyPLFR GH OD FRQGXFWD H[SRUWDGRUDHQ0p[LFR 6DOYDGRU(VWUDGD\-RRVW+HLMV ,QGLFDGRUHVGHODVRFLHGDGGHODLQIRUPDFLyQHQ(VSDxD 6DOYDGRU(VWUDGD /RVFHQWURVWHFQROyJLFRV\HOVLVWHPDUHJLRQDOGHLQQRYDFLyQ (OFDVRGHO3DtV9DVFR 0LNHO 1DYDUUR$UDQFHJXL\$UDQW]D=XELDXUUH*RHQD &LHQFLD \ 7HFQRORJtD HQ OD (VSDxD GHPRFUiWLFD OD IRUPDFLyQ GH XQ VLVWHPD QDFLRQDO GH LQQRYDFLyQ0LNHO%XHVD /DV HPSUHVDVGHO3DtV9DVFRDQWHODVHFHVLyQ0LNHO%XHVD-RRVW+HLMV7KRPDV%DXPHUW\ 0yQLFD0DUWtQH]3HOOLWHUR 'LIXVLyQ\DGLFLRQDOLGDGGHODVD\XGDVS~EOLFDVDODLQQRYDFLyQXQDHVWLPDFLyQEDVDGDHQ ³SURSHQVLW\VFRUHPDWFKLQJ´/LOLDQD+HUUHUD\-RRVW+HLMV 5HODFLRQHVH LQWHUDFFLyQ HQWUH ORVDJHQWHVGHOVLVWHPDQDFLRQDOGHLQQRYDFLyQGH(VSDxD UHVXOWDGRV GH OD HQFXHVWD,$,))(&<7 -RRVW +HLMV $QGUpV )HUQiQGH] 'tD] 3DWULFLD 9DODGH] \ $OLFLD&RURQLO KWWSZZZXFPHVEXFPFHHLDLI 'RFXPHQWRGH7UDEDMRQ (YDOXDFLyQGHODHIHFWLYLGDGGHODSROtWLFDGHFRRSHUDFLyQHQODLQQRYDFLyQ -RRVW+HLMV $QGUpV)HUQiQGH]'tD]3DWULFLD9DODGH]\$OLFLD&RURQLO 3DWURQHVUHJLRQDOHVGHXVR\FRQVXPRGH7,&6KDFLDXQtQGLFHUHJLRQDOGHOD6RFLHGDGGH OD,QIRUPDFLyQ6DOYDGRU(VWUDGD 'LVSRQLEOHHQLQJOpV &RQILJXUDFLyQ HVWUXFWXUDO \ FDSDFLGDG GH SURGXFFLyQ GH FRQRFLPLHQWRV HQ ORV VLVWHPDV UHJLRQDOHV GH LQQRYDFLyQ 8Q HVWXGLR GHO FDVR HVSDxRO 0LNHO %XHVD -RRVW +HLMV 0yQLFD 0DUWtQH]3HOOLWHUR\7KRPDV%DXPHUW 'LVSRQLEOHHQLQJOpV 7KH GLVWULEXWLRQ RI 5'VXEVLGLHV DQG LWV HIIHFW RQ WKHILQDORXWFRPHRI LQQRYDWLRQ SROLF\ -RRVW+HLMVDQG/LOLDQD+HUUHUD (O SDSHO GH ODV HPSUHVDV H[WUDQMHUDV HQ HO GHVDUUROOR WHFQROyJLFR GH (VSDxD -RRVW +HLMV 7HFKQRORJLFDOEHKDYLRXUDQGH[SRUWSHUIRPDQFHDQRQOLQHDUUHODWLRQVKLS 6DOYDGRU(VWUDGD \-RRVW+HLMV 8QLGDGGHPHUFDGR\VHFHVLyQHOFDVRGHOSDtV9DVFR 0LNHO%XHVD *XHUUD\7HUURULVPR(OPRGHORGHHFRQRPtDGHSUHGDGRUDGHODJXHUUD0LNHO%XHVD (YDOXDFLyQ GHO FRVWH GLUHFWR GH ORV DWHQWDGRV WHUURULVWDV GHO0 SDUD OD HFRQRPtD GH OD &RPXQLGDG GH 0DGULG 0LNHO %XHVD $XUHOLD 9DOLxR -RRVW +HLMV 7KRPDV %DXPHUW \ -DYLHU *RQ]iOH]*yPH] -RRVW+HLMV'RSXEOLFSROLFLHVWKDWIRVWHUFRRSHUDWLRQLQLQQRYDWLRQDXJPHQWWKHFRRSHUDWLYH DWWLWXGHWKHHPSLULFDOIDFWV 1RUPDVGHHGLFLyQSDUDHOHQYtRGHWUDEDMRV 7H[WR:RUGSDUD:LQGRZV 7LSRGHOHWUDGHOWH[WR7LPHV1HZ5RPDQ1RUPDO (VSDFLDGRLQWHUOLQHDO6HQFLOOR 7LSRGHOHWUDGHODVQRWDVGHSLHGHSiJLQD7LPHV1HZ5RPDQ1RUPDO 1XPHUDFLyQGHSiJLQDV,QIHULRUFHQWUR &XDGURV\JUiILFRVDJXVWRGHODXWRULQGLFDQGRSURJUDPDVXWLOL]DGRV (QODSiJLQDGHQWURGHXQUHFXDGURVHQFLOORGHEHILJXUDUHOWtWXORHQQHJULOOD\PD\~VFXODVDXWRUHQQHJULOOD\ PD\~VFXODVHLQVWLWXFLyQDODTXHSHUWHQHFHHODXWRUHQOHWUDQRUPDO\PLQ~VFXODV (QODSULPHUDSiJLQDGHOWUDEDMRVHGHEHUiLQFOXLUXQ5HVXPHQHQHVSDxROHLQJOpVOtQHDVPi[LPR DFRPSDxDGRGHSDODEUDVFODYH /RVWUDEDMRVKDEUiQGHVHUHQYLDGRVHQSDSHO\HQVRSRUWHPDJQpWLFRDODGLUHFFLyQGHO,QVWLWXWRGH$QiOLVLV,QGXVWULDO\ )LQDQFLHUR