Technology upgrading of middle income economies: A new approach and results

We explore issues of measurement for technology upgrading of the economies moving from middle to high-income status. In exploring this issue, we apply theoretically relevant and empirically grounded middle level conceptual and statistical framework based on three dimensions: (i) Intensity (ii) breadth of technological upgrading, and (iii) technology and knowledge exchange. As an outcome, we construct a three-pronged composite indicator of technology upgrading based on 35 indicators which reflect different drivers and patterns of technology upgrading of countries at different income levels. We show that technology upgrading of middle-income economies is distinctively different from that of low and high-income economies. Our results suggest the existence of middle-income trap in technology upgrading - i.e. countries' technology upgrading activities are not reflected in their income levels. Based on the simple statistical analysis we show that the middle-income trap is present in all three aspects of technology upgrading, but their importance varies across different aspects. A trap seems to be higher for 'breadth' of technology upgrading than for 'intensity' of technology upgrading and is by far the highest for the dimension of knowledge and technology interaction with the global economy. Finally, our research shows that technology upgrading is a multidimensional process and that it would be methodologically wrong to aim for an aggregate index

Interactions in Ireland's Food Innovation System

This paper presents an analysis of the Irish food innovation system. The research was conducted as part of a larger project aimed at developing a research commercialisation toolbox to assist public research organisations and universities improve technology transfer and commercialisation of publicly funded food research. Ireland’s food innovation system (FIS) is discussed for the first time to identify key actors, agencies and knowledge flows that contribute to food innovation nationally. Following a section in which a FIS is defined, an overview of the food industry and its research activities are presented to provide context for the current research and the discussion that follows. The methodology adopted for this research is then outlined with identification and discussion of the key actors in the FIS the focus of the next section. The main findings of the research are then presented, followed by conclusions and an outline of future research to be conducted on the Irish FIS.Agribusiness, Research and Development/Tech Change/Emerging Technologies,

The regional competitiveness and employment objective and policy prioritisation

In this paper we propose an analysis of policy strategies of operative programmes co-funded by Structural Funds in the current period in the regions eligible for the future Regional Competitiveness and Employment Objective, adopting a forward-looking perspective. We analyse interventions eligible for the period 2007-2013 and compare this range with the actual policy strategies. We discuss about potential changes in policy prioritisation in the future programming period: the most important challenge concerns potential re-addressing of interventions needed to meet the objectives of the new regional development framework, as in the three-pronged menu of priority themes from the Lisbon and Gothenburg agendas. This is particularly relevant in the framework of potential tensions between the rationales of new Structural Funds Regulations and the Lisbon strategies. A cross-cutting reading of policy priorities at the regional level reveals that in many regions certain typologies of investments can not be directly repeated. This adjustment to the new legal and policy framework can be pursued, in some cases, through a radical overhaul of regional strategy or, in some others, a fine-tuning of interventions towards Lisbon consistent policies.Structural Funds, Regional Policy, Lisbon Strategy

SCIENCE AND TECHNOLOGY POLICIES, INDUSTRIAL REFORM AND TECHNICAL PROGRESS IN CHINA. CAN SOCIALIST PROPERTY RIGHTS BE COMPATIBLE WITH TECHNOLOGICAL CATCHING UP?

This paper analyses the quest for technological progress in China, a large, semi-industrialized, socialist developing country. In the introduction, it is argued that international income convergence is not an automatic product of market forces. Therefore, the path of technological progress in a less advanced country is dependent on its bsorptive capacity, which can be enhanced by the development of an effective national innovation system. The specific meaning attached to key terms such as technological progress, market-compatibility and “socialism” are also explained. Section II briefly illustrates the relative position of China in the international division of labour, as well as some basic economic and social indicators. Section III contends that the huge amount of FDI flowing to China is not per se a major source of technical progress, but important gains can be obtained t h r o u g h strategic bargaining with large transnational corporations from industrialized countries. Section IV sketches the main lines of evolution of Chinese technological culture since the inception of the reforms and provides basic data on China’s R&D system. Section V analyses the new focus of innovation and research policies and describes the major science and technology programmes. Section VI shifts the analysis to the level of industrial enterprises, arguing that a kind of symbiosis exists among the two groups of public firms. Collective enterprises reali ze their comparative advantage specializing in simpler industrial activities and benefit from technological spillovers from state-owned enterprises, while the latter are undergoing a process of upgrading and rationalization in order to gain a strong position at the upper end of the technological spectrum. This section also presents and illustrates aggregate data on production and employment trends in China’s industry and proposes a tentative estimate of the technical change component of labour productivity growth in state-owned enterprises, showing that it has been substantial and increased in the late 1990s. Section VII concludes that China’s experience so far shows that a radical improvement in a socialist economy’s ability to achieve technical progress is not inconsistent with the reaffirmation, in a new and diversified form, of a fundamentally public framework of property relations.

German unification: A progress report

In the five years after unification, efforts to bring up the eastern part of Germany to the level of the western one have made considerable progress. Eastern Germany's growth is moving towards the double digits, just like growth in the Pacific Rim region. But not all things have developed as well as they might. Rapid wage convergence has caused enormous unemployment in the east and a heavy tax burden in financing massive transfer payments in the west. The paper analyses the catching up of the eastern German economy against the background of the unpleasant trade-off between the pace of wage increase and the level of transfer payments necessary to spur investment and to finance consumption. It describes - first, the two-pronged policy mix to reconstruct and modernize the eastern German economy on a firm level, and, - second, typical adjustment profiles for the economy as a whole with regard to capital stock, output, and employment. Finally, it discusses the key policy question of how the high unemployment as well as the high costs of public assistance could be reduced.

Policies for Industrial Learning in China and Mexico: Neo-developmental vs. Neo-liberal approaches

Abstract Previous work has shown that the results of both China and Mexico’s export-led market reforms over the past quarter century have been strikingly different. In contrast to China, Mexico has not managed to increase the value added of its exports of manufactured goods and has subsequently had a difficult time competing with China in world markets. Building on this previous work, in this paper we conduct a comparative analysis of the role of government policies in industrial learning and the development of capabilities of indigenous firms in Mexico and China in order to shed light on why China is so outperforming Mexico. We find that Mexico and China have had starkly different approaches to economic reform in this area. Mexico’s approach to reform has been a “neo-liberal” one, whereas China’s could be described as “neo-developmental.” Mexico’s hands-off approach to learning has resulted in a lack of development of endogenous capacity of domestic firms, little transfer of technology, negligible progress in the upgrading of industrial production, and little increase in value added of exports. By contrast, China has deployed a hands-on approach of targeting and nurturing domestic firms through a gradual and trial and error led set of government policies.International trade, development, competitiveness, value added, government policy, assembly operations

Trident: a universal tool for generating synthetic absorption spectra from astrophysical simulations

Hydrodynamical simulations are increasingly able to accurately model physical systems on stellar, galactic, and cosmological scales, however, the utility of these simulations is often limited by our ability to directly compare them with the datasets produced by observers: spectra, photometry, etc. To address this problem, we have created Trident}, a Python-based, open-source tool for post-processing hydrodynamical simulations to produce synthetic absorption spectra and related data. Trident} can (i) create absorption-line spectra for any trajectory through a simulated dataset mimicking both background quasar and down-the-barrel configurations, (ii) reproduce the spectral characteristics of common instruments like the Cosmic Origins Spectrograph, (iii) operate across the ultraviolet, optical and infrared using customizable absorption line lists, (iv) trace simulated physical structures directly to spectral features, (v) approximate the presence of ion species absent from the simulation outputs, (vi) generate column density maps for any ion, and (vii) provide support for all major astrophysical hydrodynamical codes. The focus of Trident's development is for using simulated datasets to better interpret observations of the circumgalactic medium (CGM) and intergalactic medium (IGM), but it remains a general tool applicable in other contexts.Comment: 16 pages, 13 figures, published in ApJ, Code available at http://trident-project.or

Fusing East and West Leads a Way to Global Competitiveness in Emerging Economy: Lessons from China’s Leap in Wind Energy Development

China has demonstrated world leading wind energy development in the last five years which can be attributed to the fusion between its design and manufacturing strength in indigenous wind turbine industry and newly emerging wind energy industry in absorption of global best practices. An empirical analysis of China’s wind energy development trajectory over the last decade focusing on the technology sourcing from foreign firms in support of domestic players for accelerating functionality development through enhanced knowledge identification, absorption, assimilation and acclimatization was attempted. Important lessons learned include (i) importance of supply chain in the technology diffusion, (ii) effective technology acquisition and assimilation through early domestic firm engagement, (iii) effect of relevant domestic firms involvement in technology transfer partnership to induce inter-industry spillovers, and (iv) a framework for an emerging nation to develop new functionalities. Similarity and disparity with similar success of fusion in solar industry (JTMGE 3, 2) were also identified

A theoretical model to solve cost shifting problem

Cost shifting strategy in service organizations causes difficulties between co-existing internal business units each competing for scarce resources. Within regulatory and legal constraints, cost shifting between business units instigates concomitant changes to each unit's profitability/budget-surpluses. For internal monopoly and competitive units, this strategy has shortcomings. Through management sponsored training programs, employee learning and productivity improvements offer a long-term approach to better address this short-term cost shifting problem. We mathematically model this solution, and outline further research that builds on this long-term cost shifting approach

Exploration and Exploitation in Technology-based Alliance Networks

Although the literature converges regarding the reasons why and how networks of technology alliances are formed, there is still lack of agreement on what constitutes an optimal network structure, once it has been formed. The aim of this paper is to fill this void and to determine what constitutes an optimal network structure for exploration and exploitation within the context of technological innovation. We differentiate among a firm's direct ties, indirect ties and degree of redundancy and analyze their role in the pharmaceutical, chemical and automotive industry. Regarding the role of direct ties, in combination with indirect ties, we find two alternative alliance network structures that are effective for both exploitation and exploration. We also find that redundancy in a firm's alliance network has a positive effect on exploitation. This is not the case for exploration, however, which seems to reveal a new insight into the role of redundancy when firms explore new technological fields. A final point is that our findings remain largely invariant across the three industries, enhancing the generalisability of our results.Networks, Strategic Alliances, Innovation, Learning