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Rice University research: Collaboration with the community can be key to success

When access to a location is the difference between financial success and failure, cooperation from the community might be the right move to prevent costly conflicts. Pexels

In Pittsburgh, a coalition of 100 community groups brokered a deal with developers of the Pittsburgh Penguins ice hockey team for $8.3 million in neighborhood improvements. In Oakland, California, developers of an $800 million high-tech complex promised local residents 50 percent of its construction jobs. And in Chicago, the Obama Presidential Center is working with residents to shield them from skyrocketing rents.

Community Benefits Agreements, or CBAS, as these agreements are called, are increasingly common between businesses and the places where they want to set up shop. But are they worth the money? To find out, Rice Business professor Kate Odziemkowska joined Sinziana Dorobantu of New York University to analyze market reactions to 148 CBA announcements between indigenous communities and mining firms in Canada. The financial value of these agreements, the researchers found, was real.

While it's easy to imagine that CBAs are just costly giveaways, they're more than goodwill gestures. Instead, they are legally enforceable contracts to distribute benefits from a new project and to govern the response to any potential social and environmental disruptions. For businesses, the researchers found, they are also good strategy, because they prevent costly, drawn-out conflict.

To conduct their research, Odziemkowska and Dorobantu analyzed a sample of 148 legally binding CBAs signed in Canada between mining firms and indigenous communities between 1999 and 2013. In Canada, mining companies and indigenous communities often hammer out agreements about extraction and use of local resources. Studying only the mining sector let the researches control for the economic variations that characterize different industries.

Since CBA negotiations cannot be disclosed, the announcement of such agreements represents new market information. To conduct their study, the researchers tracked the market reaction to these announcements, using a technique that measured short-term returns.

Creating CBAs from the start, they found, can head off catastrophic costs later. That's because even when a company has disproportionate economic strength, the public relations, legal and economic costs of community conflict can be draining. Consider the 1,900-kilometer Dakota Access oil pipeline, whose developers faced six months of round-the-clock protests that included nearly 15,000 volunteers from around the world. The drumbeat of litigation and negative news coverage still continues today.

In general, the researchers found, the more experience a community has with protests or blockades, the more firms gained from signing a CBA. Property rights protections also provide strong incentive for making a deal. Mining companies, for example, need access to land to do business. Communities with robust property rights to the resource or location sought by the firm have strong standing to stop that firm if they don't make a deal.

Because access to valuable resources like land or intellectual property can mean the difference between financial success or failure, Odziemkowska and Dorobantu said, the lesson from their findings extends far beyond Canadian mines. It's a lesson Disney learned the hard way when it failed to acknowledge the culture of Norway's Sami people in "Frozen." Assailed for cultural appropriation by using, but not crediting, traditional Sami music, Disney quickly made amends. After negotiating with the Sami people, Disney pledged to consult with them and portray them thoughtfully in the film's sequel.

The deal may have cost Disney on the front end, but it was nothing compared to the advantage of freezing out years of bad press.

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This story originally ran on Rice Business Wisdom. It's based on research by Kate Odziemkowska, an assistant professor of Strategic Management at Rice University's Jones Graduate School of Business.

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Building Houston

 
 

Stroke patients have a new hope for arm rehabilitation thanks to a team from UH. Photo courtesy of UH

Almost 800,000 people in the United States suffer from a stroke annually — and the affliction affects each patient differently. One University of Houston researcher has created a device that greatly improves the lives of patients whose stroke affected motor skills.

UH engineering professor Jose Luis Contreras-Vidal developed a next-generation robotic arm that can be controlled by the user's brainwaves. The portable device uses a brain-computer interface (BCI) developed by Contreras-Vidal. Stroke patient Oswald Reedus, 66, is the first person to use a device of this kind.

Reedus lost the use of his left arm following a stroke that also caused aphasia, or difficulty speaking. While he's been able to recover his ability to speak clearly, the new exoskeleton will help rehabilitate his arm.

When strapped into the noninvasive device, the user's brain activity is translated into motor commands to power upper-limb robotics. As patients like Reedus use the device, more data is collected to improve the experience.

“If I can pass along anything to help a stroke person’s life, I will do it. For me it’s my purpose in life now,” says Reedus in a news release from UH. His mother and younger brother both died of strokes, and Reedus is set on helping the device that can help other stroke patients recover.

Contreras-Vidal, a Hugh Roy and Lillie Cranz Cullen distinguished professor, has led his device from ideation to in-home use, like with Reedus, as well as clinical trials at TIRR Memorial Hermann. The project is funded in part from an $813,999 grant from the National Science Foundation’s newly created Division of Translational Impacts.

"Our project addresses a pressing need for accessible, safe, and effective stroke rehabilitation devices for in-clinic and at-home use for sustainable long-term therapy, a global market size expected to currently be $31 billion," Contreras-Vidal says in the release. "Unfortunately, current devices fail to engage the patients, are hard to match to their needs and capabilities, are costly to use and maintain, or are limited to clinical settings."

Dr. Gerard E. Francisco, chief medical officer and director of the Neuro Recovery Research Center at TIRR Memorial Hermann, is leading the clinical trials for the device. He's also chair and professor in the Department of Physical Medicine and Rehabilitation at McGovern Medical School at UTHealth Houston. He explains that TIRR's partnership with engineering schools such as the Cullen College of Engineering at UH and others around the nation is strategic.

“This is truly exciting because what we know now is there are so many ways we can induce neuroplasticity or how we can boost recovery,” says Francisco in the release. “That collaboration is going to give birth to many of these groundbreaking technologies and innovations we can offer our patients.”

Both parts of the device — a part that attaches to the patient's head and a part affixed to their arm — are noninvasive. Photo courtesy of UH

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