Foreign Direct Investments in Business Services: Transforming the Visegrád Four Region into a Knowledge-based Economy?

Foreign direct investments (FDIs) in the service sector are widely attributed an important role in bringing more skill-intensive activities into the Visegrad Four (V4). This region—comprising Poland, the Czech Republic, Hungary and Slovakia—relied heavily on FDIs in manufacturing, which was often found to generate activities with limited skill content. This contribution deconstructs the chaotic concept of “business services” by analysing the actual nature of service sector activities outsourced and offshored to the V4. Using the knowledge-based economy (KBE) as a benchmark, the paper assesses the potential of service sector outsourcing in contributing to regional competitiveness by increasing the innovative capacity. It also discusses the role of state policies towards service sector FDI (SFDI). The analysis combines data obtained from case studies undertaken in service sector outsourcing projects in V4 countries. Moreover, it draws on interviews with senior employees of investment promotion agencies and publicly available data and statistics on activities within the service sector in the region. It argues that the recent inward investments in business services in the V4 mainly utilize existing local human capital resources, and their contribution to the development of the KBE is limited to employment creation and demand for skilled labour

Entering the KIBS' black box: there must be an angel! (or is there something like a knowledge angel?)

The undeniable importance of knowledge and innovation in modern economies justifies the increasing interest that scholars are taking in studying knowledge-intensive busi-ness services (KIBS). Since the mid 1990s, there has been a significant increase in the attention paid to KIBS and their role and functions in innovation systems (den Hertog 2000; Illeris 1991; Miles et al. 1995; Muller/Zenker 2001; Strambach 2001; Tether 2005; Wood 2002). In general terms, the activity of KIBS can be mainly described as the provision of knowledge-intensive inputs to the business process of other organiza-tions, private as well as public sector clients. [...] To sum up, this paper focuses on creative individuals in KIBS, i.e. those persons sus-pected of playing a pertinent role with respect to the innovativeness of their company. We call these specific actors knowledge angels by analogy with business angels. In the same way that business angels can play a decisive role in the development of innova-tive firms through financial support, we assume here that specifically gifted persons can be the knowledge 'catalysts' within KIBS (and in relationship with their clients). The paper contains three sections: the first one formulates the assumption of the exis-tence of knowledge angels and attempts to elaborate a working definition of this spe-cific kind of actor. The second section displays the results of an empirical research pro-ject conducted in France and Germany, whereas the third section synthesizes the find-ings. --

Balancing and integrating basic values in the development of organic regulations and standards: proposal for a procedure using case studies of conflicting areas

The basic aim of the report is to develop a procedure for the integration of the ethical value base of organic farming into standards and regulations. For this it is necessary to identify the core ethical value of organic production, consider their coherence and relate them to existing practice of organic food and farming. Ethical values are per se in need of interpretation. It is therefore also necessary to consider the process of decision-making, when aiming to achieve a coherent integration of such values in the structure of a standard or regulation. In line with the European Action Plan for organic food and farming from 2004 the Project EEC 2092/91 (Organic) Revision supports the idea that delegating a larger role to values and basic principles will help to harmonise the rules, provide room for flexibility in implementation and to simplify the European Regulation for organic production. It is important to include basic values in standards and regulations, because organic farming is value based and all actors/stakeholders have value expectations, including consumers who the regulation wants to protect. Standards and regulations form the basis of a virtual contract between the consumer and the producers. By following the practices set out in the standards, producers give a promise to the consumer to deliver on additional ethical values, beyond the legal minimum standards for conventional agriculture and food. The growing and globalised organic market and the involvement of large companies have resulted in renewed interest in the values and principles of organic farming. There has been concern that the organic food and farming sector is becoming more conventionalised, and has lost touch with its basic values. Thus it will no longer function effectively as a real alternative to general agriculture for consumers, producers and also for policy makers. The report analyses what core ethical value are associated with organic agriculture and should therefore be considered for inclusion in a regulation. This value base is contrasted with the existing Regulation (EEC) 2092/91 and with examples of current practice of organic agriculture in Europe. The implications of including ethical values in the structure of a regulation for decisionmaking are considered. Following on from the European Action Plan a process of total revision of the EU regulation on organic production is underway. A new European Regulation for organic production was adopted by the European Council of Ministers in June 2006 and will come into force in Jan 2009. The text of the near final proposal from December 2006 has been considered in several sections of the report. The report finishes with some conclusions and recommendations for the EU Commission and other standard setting bodies regarding the choice and roles of values in organic standard, the rules for decision-making processes in relation to integrating values, and regarding the ongoing revision of the organic regulation in Europe

Networking Innovation in the European Car Industry : Does the Open Innovation Model Fit?

The automobile industry is has entered an innovation race. Uncertain technological trends, long development cycles, highly capital intensive product development, saturated markets, and environmental and safety regulations have subjected the sector to major transformations. The technological and organizational innovations related to these transformations necessitate research that can enhance our understanding of the characteristics of the new systems and extrapolate the implications for companies as well as for the wider economy. Is the industry ready to change and accelerate the pace of its innovation and adaptability? Have the traditional supply chains transformed into supply networks and regional automobile ecosystems? The study investigates the applicability of the Open Innovation concept to a mature capital-intensive asset-based industry, which is preparing for a radical technological discontinuity - the European automobile industry - through interviewing purposely selected knowledgeable respondents across seven European countries. The findings contribute to the understanding of the OI concept by identifying key obstacles to the wider adoption of the OI model, and signalling the importance of intermediaries and large incumbents for driving network development and OI practices as well as the need of new competencies to be developed by all players.Peer reviewe

Market Labor, Household Work and Schooling in South Africa: Modeling the Effects of Trade on Adults' and Children's Time Allocation

This paper analyzes how economic policies can influence parents’ decisions about their children’s schooling, household work and leisure in South Africa. Using a dynamic computable general equilibrium model that integrates both market and non-market activities, distinguishing male and female workers on the one hand, and adult and child non-market work and leisure on the other, we find that, in the context of trade liberalization, gender inequality is likely to rise between adults and between boys and girls. Furthermore, the paper notes that the increase in adult male and female market labor supply is made possible through the substitution of children for parents in household work, although more so in some groups than others. These effects sustain in the long run.Household work, market work, child schooling, gender, time-use, trade, CGE model, South Africa

Transforming Rural Communication Three sociological case studies in a developed and urbanized rural area of northern Germany: regional partnership Lübeck bay, organic dairy farming and nature protection

Marginal rural areas suffer from isolation and a lack of communication with the outside world. The renaissance of rural values and food quality-related issues has brought many urban people to again approach rural areas and actors, sometimes with the intermediation of other more or less professional actors. In an EU share cost project TRUC (EU-QoL:QLAM-2001-00025; 2001-2003), several cases of regional and rural development throughout Europe have been analysed on the topic of transforming rural communication. We present three of these cases in northern Germany: the Model Region Luebeck Bay, Organic Milk and Nature Protection. All of these projects are located in an area where urbanization and the multifunctionality of rural action and development is highly developed. The general objective of the project was to consolidate a transdisciplinary and transsectoral approach to the problem of communication in rural areas, to raise awareness among practitioners and academics of the specificities of rural communication and of the principles of „progressive rural communication“ and to build a core network of academics and practitioners around this topic. The project has an essentially exploratory function, so its achievements will be the basis for further research agendas and projects. The general objective is articulated into three specific objectives: - Accumulating information on rural communication - Creating new knowledge on rural communication - Turning new knowledge into practice The fulfilment of this objective will allow all actors involved in rural development to make decisions with more awareness of the importance of rural communication and to embody this awareness into rural development projects and practices

Gender Equity and Renewable Energies : Thematic Background Paper

The aim of this paper is to review existing evidence on the role of renewable energies in bringing gender equity. The paper first explores the evolution of thinking on gender and energy, in particular that practitioners no longer specifically focus on women and stoves (often referred to as “household energy”). Next, the reasons why gender analysis can help those people trying to increase the dissemination of renewable energy technologies are presented. There is a brief description of the gender aspects of household energy, and how different renewable energy technologies can contribute to drudgery reduction and time saving, particularly for women. The role of women in renewable energy is analysed. The paper concludes with an analysis of lessons learnt and recommendations. However, the point has to be stressed that there is now only beginning to emerge information about gender and energy in the South, and there is very little information about the situation in the North. The data that are available are primarily in the form of case studies, mainly related to stoves programmes and rural electricity grid extension. The systematic collection of gender-disaggregated statistical data by energy ministries does not occur and it is very rare to find energy project evaluations that use gender analysis. This means that much of the analysis should be seen as only as indicative, although this does not invalidate the recommendations since many of these are linked to the general situation of women having fewer assets than men

Materializing policies for sustainable use and economy-wide management of resources: biophysical perspectives, socio-economic options and a dual approach for the European Union

Policies for Sustainable Use and economy-wide Management of natural Resources (SUMR) throughout the production and consumption system are faced with environmental and socio-economic requirements and regulatory constraints. Based on empirical findings of ongoing trends of resource use, decoupling from economic growth, and transregional problem shifting, the paper outlines a potentially sustainable biophysical basis for production and consumption in the EU. It discusses the main challenges for the major resource groups, describing the specific and the common tasks with regard to biomass, fossil fuels, metals, non-metallic minerals. Adopting a medical metaphor, it suggests that policies for SUMR should follow a dual approach reflecting the long-term need for a main cure of the socio-industrial metabolism in form of a conditioning towards a more mature, resource efficient, and renewables based constitution on the one hand, and a fine tuning of selected material flows (e.g. for optimized recycling and control of hazardous compounds) on the othe hand. Both strategies are deemed complementary and necessary to reduce environmental impact and increase the utility of material use. Action required is exemplified with regard to the three pillars of SUMR, i.e. improved orientation, information and incentives. --Material efficiency,dematerialization,renewables,socio-industrial metabolism,resource use,environmental impacts,sustainable production & consumption,bioeconomy