Where are the world's top 100 I.T. firms - and why?

Various publications tabulate and publish lists of the ?top 100? information-technology (I.T.) firms. The July 1997 issue of PD Magazine, for example, has a list showing that most of the world?s key firms in computing, software, semiconductors, and related fields are American. They are also heavily concentrated in such western states as Texas, Utah, Washington, and of course California. The distribution of firms and entrepreneurs is markedly different from 15 years ago. For example, the December 1997 Upside Magazine list of the top 100 people in I.T. contains only three individuals from supposedly ?high-tech? Massachusetts ? or no more than the number predicted by the state?s share of the US population. The paper will extend my work tracking the westward rebirth of American computing since the early 1980s. It will complement the employment shifts I have already documented with new mappings of firms and entrepreneurs. The hypotheses is that the PC revolution spurs a regional realignment of US computing away from the more hierarchical and bureaucratized firms of the Northeast to flatter, more agile, and more entrepreneurial firms in the younger economic cultures of the West. A look at the specific enterprises and entrepreneurs will illuminate the process by which the US regained its leadership in I.T. within the world economy.

Retail deposit sweep programs: issues for measurement, modeling and analysis

Since January 1994, many banks in the United States have initiated retail-deposit sweep programs which reduce statutory reserve requirements by re-labeling transaction deposits as money market deposit accounts. As a result, approximately half of aggregate transaction deposits are now excluded from M1. This re-labeling is invisible to customers and, hence, cannot affect their demand for transaction balances. Nevertheless, a recent article in this Journal explored the effect of this invisible re-labeling on M1 demand. This note emphasizes that those results are spurious, and offers additional examples of measurement distortions due to retail deposit sweep activity.Bank reserves ; Money supply

"The Return of the State: The New Investment Paradigm"

To save America--indeed, the global economy as a whole--the private/public sector balance has to shift, and the neoliberal economic model on which the country has been based for the past 25 years has to be modified. In this new working paper, Marshall Auerback details why the role of the state needs to be reemphasized. The abandonment of a mixed economy and corresponding diminution of the role of government was hailed as the "rebirth of individualism," yet it caused rising inequality and the decline of median wages, and led to the widespread neglect of public goods vital to its citizens' welfare. Meanwhile, the country ran through the public investment it had made from the 1930s to the 1970s, with few serious challenges from policymakers or mainstream economists. The neoliberal model was also aggressively exported: the "optimal" growth strategy for all emerging economies was supposedly one that emphasized limited government, corporate governance, rule of law, and higher levels of state-owned and -influenced enterprise—in spite of significant historical evidence to the contrary. Not even the economic wreckage in Mexico, Argentina, Thailand, Indonesia, and Russia seemed sufficient to challenge, let alone overturn, the prevailing paradigm. That is, until now: in reaction to the financial crisis, many governments—led by the United States—are enacting massive economic stimulus packages and taking a central role in promoting economic growth strategies. This reemergence of state-driven capitalism constitutes a "back to the future" investment paradigm, one that is consistent with a long and successful pattern of economic development. But once we get beyond the pothole patching and school repairing, what industries can be pushed forward using public seed capital or through Sematech-like consortiums? What must be brought to the fore is the need for a new growth path for the United States, one in which the state has a significant role. There are already indications that the private sector is beginning to adapt to this new, collaborative paradigm.

High-Tech Competition Puzzles. How Globalization Affects Firm Behavior and Market Structure in the Electronics Industry

This paper addresses two puzzles related to industrial dynamics and competition. The first of these puzzles is that a high degree of globalization may well go hand in hand with increasing concentration. I show that one of the most globalized sectors of the electronics industry, hard disk drives (HDD), also displays one of the highest degrees of concentration: multinational corporations, after all, may not be such effective “spoilers of concentration”, as claimed by Richard Caves (1982). 4 The second puzzle that I address in this paper is that, despite an extremely high degree of concentration, this industry fails to act like a stable global oligopoly. So far, market share volatility has been restricted to the oligopoly members. There are however indications that this may change and that market contestability may improve. The paper is organized as follows: I start with a discussion of the first puzzle, presenting evidence on globalization and concentration. I then address the second puzzle, linking high concentration to high volatility. Some possible explanations are reviewed in the third part of the paper, building on a conceptual framework introduced by G.B. Richardson ( 1996 and 1997). I analyze how globalization affects competition and distinguish forces that foster concentration and forces that are conducive for market disruption. I conclude with a few observations on what this implies for future research on the determinants of market structure and firm behavior.competition; industrial dynamics; globalization; concentration; firm behavior; contestable markets; entry barriers; capabilities.

Capabilities, Confusion, and the Costs of Coordination On Some Problems in Recent Research On Inter-Firm Relations

The arguably dominant approaches to the study of interfirm relations are the capabilities and organizational economics perspectives. This paper discusses their merits and weaknesses, concentrating on the capabilities perspective, which is argued to rest on rather weak foundations, particularly as a theory of economic organization (including interfirm relations). However, it is suggested that both perspectives may be seen as part of an overarching bargaining approach to economic organization (yet to be developed). Both perspectives have identified impediments to efficient bargaining.Interfirm relations, capabilities, organizational economics, research methodology

Rank-and-File Participation in Organizing at Home and Abroad

[Excerpt] We know that we need labor law reform. But it is also clear that this is not all we need; nor can we expect to achieve legal reform simply by electing Democrats. That strategy did not work in 1978-79 or in 1993-94, and it will not work in the future. In the face of inevitably powerful and well-organized business opposition, even the most well-financed and articulate lobbying campaign for labor law reform can fail. What was missing in 1978-79 and in 1993-94 and is urgently needed now is the pressure of a massive social movement, mobilized to transform and democratize the American workplace. The potential is there for such a movement, fueled by falling real wages, growing income polarization, and a widespread desire for expanded voice in the workplace (Appelbaum and Batt 1994; Commission on the Future of Worker-Management Relations 1994b; Kochan 1995; Levine 1995). But the potential will not be realized unless people are allowed and encouraged to participate fully in the building of their own union organizing drives, union mobilization efforts, including labor-community coalitions, and grassroots political campaigns. This chapter presents case studies of success and failure in union organizing campaigns in the United States and Germany to support the cross-national — and thus to some extent universal—validity of this argument. Comparative analysis is especially useful in developing and testing causal relationships. If, for example, rank-and-file participation can be shown to have similar effects in organizing efforts in contrasting institutional and cultural contexts, the explanatory power of the hypothesis suggested here may well be significant (thus meriting further and more extensive testing). Germany affords the context of a comparable advanced industrial society but one with very different traditions and institutions of industrial relations (such as codetermination and comprehensive collective bargaining) and historically strong unions facing a parallel need for contemporary revitalization

Actors and resources of an evolving local system. The processes that involve Catania, a dynamic reality in a low developed region

Since the second half of the ''''70s, a great crisis has hit the local system of Catania, - which is the most important town in the North-east of Sicily - both in its economical aspects and in its social and political ones. In the ''''90s, nevertheless, the city has been interested by deep transformations which have caused new actors and innovative resources to emerge. During the years of crisis, the Catania local system was based on the building industry and on the public expenditure that have nourished clientelistic and also illegal activities. In fact the public expense played a very important role in the economic development of Sicilian society, where most of the industrial enterprises worked in protected sectors. A few exceptions regarded SMEs with innovative capabilities and larger firms depending from an exogenous management. From this point of view, the authors of this paper will try to draw a clear picture of the changes happened in the last decade in the Catania socio-economic system, pinpointing its ability of nourishing new initiatives in high technology sectors and attracting others from the outside, thanks to the new political atmosphere present in the city and its ambitious aspiration to became an important node in the Mediterranean Basin. Some of the actors of these changes are a group of innovative entrepreneurs, the local University and a new class of politicians more sensitive to the economic and social development of the community.