6,421 research outputs found
Trade costs, openness and productivity: market access at home and abroad
This paper discusses the channels between openness and productivity and trade hampering factors. The stylized facts from the heterogeneous firms literature suggests that firms face market entry costs for each new product they export and to each new export market. Transport costs, border costs and retail and wholesale distribution costs might add up to 170% of the export value, but formal import tariffs and duties are relatively unimportant. The results by the Observatory of European SMEs survey, which has firm-level data for the whole European Union confirm this result. Lack of knowledge on export markets and regulations in other countries are important trade barriers for European firms. From these outcomes it could be derived that EU trade policies should be directed to deep integration with other countries, preferably by implementing internal market policies for goods and services trade and foreign direct investment. These policies can deal with reducing regulations heterogeneity, non-tariff barriers and customs procedures. Providing public information on export markets (e.g. customers, contact, and distribution networks) could also be helpful, if well targeted
Industrial Agglomeration, Production Networks and FDI Promotion The Case Study of China
Chinas Industrial clustering is a distinguished economic phenomenon over the last 20 years. It began to enter into its fast track in the mid-1990s and developed rapidly in recent years. Both market-driven force and government-driven force contribute to Chinese industrial clusters. The opening and stable macroeconomic policies create a favorable climate for the industrial clustering. Local government has made its contribution to construction on both hardware and software environments for industrial clusters. The major contribution of FDI to the local industrial clustering lies in helping integrating Chinese domestic industries into international division of labor and at the same time forging a relatively integrated production chain for Chinese domestic industries. At present, China has stepped into the new phase of industrial clusters upgrading. Chinese government is gradually improving the local software infrastructure for industry clustering.Industrial Agglomeration, China, Production Networks, FDI, foreign direct investment
Drivers and Effects of Internationalising Innovation by SMEs
This paper investigates the drivers and the effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms covering the period 2002-2007. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovationrelated location advantages for an SME's decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. Fierce home market competition turns out to be rather an obstacle than a driver. High innovation costs stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market while there are no negative effects on home market growth from shifting production of new products abroad. --Internationalisation of Innovation,Globalisation,SMEs,Effects of Innovation,Absorptive Capacities,Market Structure
Drivers and Effects of Internationalising Innovation by SMEs
This paper investigates the drivers and effects of the internationalisation of innovation activities in SMEs based on a large data set of German firms covering the period 2002-2007. We look at different stages of the innovation process (R&D, design, production and sales of new products, and implementation of new processes) and explore the role of internal resources, home market competition and innovationrelated location advantages for an SME's decision to engage in innovation activities abroad. By linking international innovation activities to firm growth in the home market we try to identify likely internationalisation effects at the firm level. The results show that export experience and experience in knowledge protection are highly important for international innovation activities of SMEs. Fierce home market competition turns out to be rather an obstacle than a driver. High innovation costs stimulate internationalisation of non-R&D innovation activities, and shortage of qualified labour expels production of new products. R&D activities abroad and exports of new products spur firm growth in the home market while there are no negative effects on home market growth from shifting production of new products abroad. --Internationalisation of Innovation,Globalisation,SMEs,Effects of Innovation,Absorptive Capacities,Market Structure
Innovation: The Key Factor Of Competitiveness For Chinese SMES
Purpose-This study aims to present an overview of SMEsâ innovation in China, to identify the main problems, and provide practical suggestions. Design/methodology/approach-The research of this paper is based on the collection and evaluation of existing literature and survey reports. Findings-This study presents the general situation and characteristics of SMEsâ innovation in China, and concludes the main reason that hinders Chinese SMEsâ innovation is the lack of human resources, capital, innovation culture and information. Practical implications-This study suggests that, in addition to improving resources and environment, SMEs can also try to adopt micro-innovation to promote innovation activities. These suggestions are practical and can help SMEs maintain competitiveness. Originality/ value-This study provides an overview of Chinese SMEsâ innovation, which can be the basis for future research in this area
Patents, Entrepreneurship and Performance
This paper provides an overview of a new database that uses intellectual property data to track the innovative activity of firms in the UK. The paper looks at the extent and nature of patenting activity, focusing on micro firms and SMEs. Over the period 2000 to 2007, SME patenting has increased whereas large firm patenting has fallen and micro firm patenting has been roughly con- stant. Most micro and SMEs patent while relatively young (aged ten or less) and this tendency is becoming more pronounced over time. The paper provides a descriptive analysis on micro firms and SMEs that become high growth firms (defined as having greater than 20 percent growth per annum). Overall, 28.0 percent of young micro and SMEs achieve high growth (over 2002 to 2007). In comparison, 29.4 percent of young micro or SMEs that patent achieve high growth. This difference is much greater for firms in the high-tech industries. Moreover, the analysis shows that due to the skewed nature of the firm-level growth distribution, standard conditional mean estimators may fail to uncover important differences in the association between patenting and firm growth across the conditional growth distribution.Firm growth, patents
Creating a 21st Century national innovation system for a 21st Century Latvian economy
The Latvian economy made great strides in recovering from the economic shock of the early transition and the adverse aftereffects of the 1998 Russian financial crisis. Nevertheless, Latvia faces serious challenges to its future growth and prosperity despite these impressive achievements and the outward appearance of macroeconomic stability and economic progress. A wide variety of recent studies suggest that the Latvian economy is not particularly competitive and, even more worrisome, they indicate that Latvia is not well positioned to gain ground in the race for global competitiveness, prosperity, and rising standards of living. Most of Latvia's growth to date has come from one-off gains generated by structural reforms, privatization, and reallocating resources, not inexhaustible reservoirs of growth. Latvian enterprises will be able to sustain economic growth and create high wage jobs only by becoming internationally competitive, innovating, accumulating new knowledge and technology, and finding a high value added niche in the European and global division of labor. This paper is designed to help Latvian leaders develop a clear diagnosis of the innovation and competitiveness challenges facing Latvia as it prepares to enter the EU and, more important, design and implement policies and programs to ensure that Latvia reaps the maximum possible benefits from EU structural funds. Section II analyzes the current structure of Latvia's production, imports, and exports. Section III uses data from a number of competitiveness reports to benchmark Latvia's current progress against a number of comparator countries and to pinpoint Latvia's strengths and weaknesses as an innovative economy. Section IV offers a detailed list of potential policies and programs that could improve the competitiveness of Latvian enterprises and the efficiency of the Latvian National Innovation System. The recommendations include specific policies and programs to improve (1) the production of knowledge in Latvia, (2) the commercialization of technology produced by Latvian scientists, small companies, and research institutes, and (3) local firms'capacity to absorb, adapt, and adopt existing knowledge produced outside Latvia for use inside Latvia.ICT Policy and Strategies,Economic Theory&Research,Labor Policies,Environmental Economics&Policies,Agricultural Knowledge&Information Systems,Environmental Economics&Policies,Economic Theory&Research,Agricultural Knowledge&Information Systems,ICT Policy and Strategies,Banks&Banking Reform
Industrial policy for the medium to long-term
This report reviews the market failure and systems failure rationales for industrial
policy and assesses the evidence on part experience of industrial policy in the UK.
In the light of this, it reviews options for reshaping the design and delivery of
industrial policy towards UK manufacturing. These options are intended to
encourage a medium- to long-term perspective across government departments
and to integrate science, innovation and industrial policy
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