3,563 research outputs found

    Internationalisation of Innovation: Why Chip Design Moving to Asia

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    This paper will appear in International Journal of Innovation Management, special issue in honor of Keith Pavitt, (Peter Augsdoerfer, Jonathan Sapsed, and James Utterback, guest editors), forthcoming. Among Keith Pavitt's many contributions to the study of innovation is the proposition that physical proximity is advantageous for innovative activities that involve highly complex technological knowledge But chip design, a process that creates the greatest value in the electronics industry and that requires highly complex knowledge, is experiencing a massive dispersion to leading Asian electronics exporting countries. To explain why chip design is moving to Asia, the paper draws on interviews with 60 companies and 15 research institutions that are doing leading-edge chip design in Asia. I demonstrate that "pull" and "policy" factors explain what attracts design to particular locations. But to get to the root causes that shift the balance in favor of geographical decentralization, I examine "push" factors, i.e. changes in design methodology ("system-on-chip design") and organization ("vertical specialization" within global design networks). The resultant increase in knowledge mobility explains why chip design - that, in Pavitt's framework is not supposed to move - is moving from the traditional centers to a few new specialized design clusters in Asia. A completely revised and updated version has been published as: " Complexity and Internationalisation of Innovation: Why is Chip Design Moving to Asia?," in International Journal of Innovation Management, special issue in honour of Keith Pavitt, Vol. 9,1: 47-73.

    Technological revolutions and the evolution of industrial structures. Assessing the impact of new technologies upon size, pattern of growth and boundaries of the firms

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    In this work we discuss the impact of the new ICT techno-economic paradigm upon the vertical and horizontal boundaries of the firm and ask whether the change in the sources of competitive advantage has resulted in changes in the size distribution of firms and also in the degree of concentration of industries. Drawing both on firm-level and national statistical data we assess the evolution of the overall balances between the activities which are integrated within organizations and those which occur through market interactions. While the new paradigm entails ``revolutionary'' changes in the domain of technology, the modification in industrial structures has been somewhat more incremental. Certainly, the vertical and horizontal boundaries of firms have changed and together one is observing a turnover in the club of biggest world firms accounting also for a shift in the relative importance of industrial sectors. Nonetheless, we do not observe an abrupt fading of the Chandlerian multidivisional corporation in favour of smaller less-integrated firms.New techno-economic paradigm; Organizational change; Vertical integration; Boundaries of the firm; Visible hand.

    Production Networks in East Asia: What We Know So Far

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    Production networks in East Asia, particularly in the manufacturing and machinery industries, are well recognized as the most advanced in the world, in terms of their magnitude, extensiveness, and sophistication. This paper tries to link various economic studies on related topics, to see how much we understand about production networks in East Asia. After providing a brief overview of international trade statistics, the paper reviews a number of academic papers concerning (i) the structure and mechanics of production networks, (ii) the conditions for production networks, and (iii) the properties and implications thereof.fragmentation; agglomeration; vertical specialization; multinational enterprises; foreign direct investment

    Fighting Irrelevance: The Role of Regional Trade Agreements in International Production Networks in Asia

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    This chapter reviews the relevant literature in order to provide an analytical framework for the analyses in the subsequent chapters. It covers some sub-topics related to the theme of this study, in particular, the theoretical approach to international production networks, key findings from empirical studies on the subject, and the role of trade policy (often understood as trade liberalization) in creating or sustaining an IPN.trade liberalization, international production networks, regional trade agreements, value chain, Asia, automotive, hard disk drive, textile and clothing, East Asia

    Value Creation and Structural Change during the Third industrial Revolution. The Swedish Economy from a Vertical Perspective.

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    This thesis analyses structural changes and the role of technology in the Swedish economy since the 1970s. With the attention directed towards interdependencies between sectors, a vertical perspective is applied on the economy. This contrats to the most often used horizontal perspective, in which individual sectors, such as manufacturing and services, are studied in isolation. With an integration of evolutionary economics and input-output economics, the aim of this thesis is to investigate to what extent five horizontally oriented notions - (1) more vertically disintegrated production processes, (2) a deindustrialized economy, (3) the growing importance of the business services sector as a distributor and generator of growth enhancing knowledge, (4) the distinction between a low productivity service sector and a high productivity manufacturing sector and (5) reduced competitiveness - remain valid when a vertical perspective is applied on the contemporary Swedish economy. Are the notions dependent on the particular perspective applied? To what extent will the vertical perspective gradade the general understanding of value creation and structural change? Investigating the five notions with input-output techniques, it is argued that a vertical perspective contributes to a new and more complete understanding of value creation and structural change in the Swedish economy during the Third industrial revolution. The emphasized notions are still valid, but they are dependent on the perspective applied to a non-negligible extent. A vertical perspective on value creation and structural change therefore gradates the interpretations of some generally accepted notions concerning the contemporary Swedish economy. Not the least, the chosen perspective illuminates some of the underlying mechanisms behind the structural changes among horizontally represented sectors. In this way, this thesis complements the existing knowledge concerning structural change and the role of technology in the growth process

    India: A New Player in Asian Production Networks?, Studies in Trade and Investment 75

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    While the IPN phenomenon has accelerated trade and investment linkages between countries in East and South-East Asia, the remainder of the region has not matched those countries in this process. The objective of this study is to explore the reasons for this by using India’s performance in the Asian IPNs as a case study for other countries that are trailing behind in this area. The study seeks to identify the reasons why India has performed below its potential in this new form of international division of labour, even though that country possess several supportive factors including: (a) the sheer size of the economy and population; (b) a large pool of engineers; (c) relatively sound intellectual property protection; and (d) an increasingly open trade and investment climate resulting from progressive economic reforms.production network, fragmentation of production, Asia, value chain, India manufacturing sector, China, India, Offshoring, MNCs, FDI

    Transport and Logistics in a globalizing world. A focus on Italy.

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    open1Mariotti, IlariaMariotti, Ilari

    Investigating the linkages between industrial policies and M&A dynamics: Evidence from China

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    Mergers and acquisitions (M&As hereafter) have been widely examined in the economic and business literature under many perspectives. However, the industry-level view, specifically the relation between industrial policies and M&A waves at the sectoral level, has remained rather unexplored. This article contributes to fill this gap by empirically investigating the relation between selective industrial policies and M&A waves at the industry level in China. Referring to the four Five Year Plans covering the period 1996-2015, we explore whether being identified as an emerging sector in these plans generates positive or negative changes in the number of M&As. We reiterate the analysis according to the different types of M&As (vertical, horizontal or conglomerate) and the different natures of the acquirer (SOEs or private). Our results suggest that policies can differentially affect M&A waves according to the type of M&A. Moreover, while private firms are more responsive to both horizontal and vertical integration in emerging sectors, SOEs are more prone to engage in vertical M&As. We discuss the possible rationales behind the different behaviors. We also draw general policy implications on strategic industrial policy and market restructuring
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