Learning from Trump and Xi? Globalization and innovation as drivers of a new industrial policy. Bertelsmann GED Focus 2020

Technological innovations are essential drivers of longterm and sustainable growth. Accordingly, there currently is a debate in Germany and the EU as to whether a new, strategic industrial policy can be an answer to the complex dynamics of digitization. Products of this discussion are, for example, the Industrial Strategy 2030 published by the Federal Ministry for Economic Affairs and Energy in November 2019 and the Franco-German Manifesto for a European Industrial Policy for the 21st Century. The focus here is on the question of how the EU and its member states can maintain their innovative and thus competitive ability in the face of diverse challenges. However, there is no standard recipe for building and expanding the innovative capacity of an economy. Different countries rely on different strategies that can be equally successful. An important distinguishing feature is the role of the state. A clear example of divergent innovation models are China and the USA. Although both countries have completely different approaches to an innovation-promoting industrial policy, both models are characterized by major technological successes. With an analysis of the Chinese and American innovation system, this study highlights the main features and success factors of both innovation models and discusses whether and to what extent these factors are transferable to the European and German case. Five fields of action for an innovation-promoting industrial policy in the EU and Germany emerge from this analysis • Implementation of a long-term innovation strategy • Expansion of venture capital • Expansion of cluster approaches at EU level • Thinking and strengthening of cybersecurity at EU level • Creation of uniform and fair conditions for competition In addition to these fields of action, which are relevant both for the EU and for individual member states, industrial policy measures in the following three areas could be useful for Germany. In particular: • Improvement of framework conditions for research and development • Gearing the education and research system more strongly towards entrepreneurship and innovation • State as a pioneer and trailblazer in new technologies In their implementation, however, strategic European and German industrial policies face a trade-off between the protection and promotion of legitimate self-interests on the one hand and the defense against economically damaging protectionism and ill-considered state interventionism on the other. The so-called “mission orientation” can make a significant contribution here: Accordingly, industrial policy should serve to address specific societal challenges (e. g. globalization, digitization, demographic change, climate change) and be coherently targeted towards these objectives. Furthermore, industrial policy is to be driven in parallel by different actors. Above all, it is a joint task of business and politics to enable a competitive business location where the state ensures good competition- promoting framework conditions and the private actors implement concrete actions

Strategies for sustainable socio-economic development and mechanisms their implementation in the global dimension

The authors of the book have come to the conclusion that it is necessary to effectively use modern approaches to developing and implementation strategies of sustainable socio-economic development in order to increase efficiency and competitiveness of economic entities. Basic research focuses on economic diagnostics of socio-economic potential and financial results of economic entities, transition period in the economy of individual countries and ensuring their competitiveness, assessment of educational processes and knowledge management. The research results have been implemented in the different models and strategies of supply and logistics management, development of non-profit organizations, competitiveness of tourism and transport, financing strategies for small and medium-sized enterprises, cross-border cooperation. The results of the study can be used in decision-making at the level the economic entities in different areas of activity and organizational-legal forms of ownership, ministries and departments that promote of development the economic entities on the basis of models and strategies for sustainable socio-economic development. The results can also be used by students and young scientists in modern concepts and mechanisms for management of sustainable socio-economic development of economic entities in the condition of global economic transformations and challenges

Organizational support for intrapreneurship and its interaction with human capital to enhance innovative performance

This study explores the impacts of the internal supportive environment for intrapreneurial activities on firms’ innovative performance and the moderating role of human capital in this relationship by making use of a questionnaire study covering 184 manufacturing firms in Turkey. As for the individual direct effects of the dimensions of Organizational Support (OS), Management Support for Idea Generation and Tolerance for Risk Taking are found to exert positive effects on innovative performance. Availability of a Performance Based Reward System and Free Time have no impact on innovativeness, while Work Discretion has a negative one. As for the role of Human Capital (HC), it is found to be an important driver of innovative performance especially when the OS is limited. However, when the levels of both HC and OS are high, innovative performance does not further increase, probably reaching a temporary performance ceiling. Managerial and further research implications are provided

EMPIRICAL PERSPECTIVE OF INDUSTRIAL INVESTMENT FUND FOR LOCAL GOVERNMENT SUSTAINABILITY IN HENAN, CHINA

To facilitate China’s economic reform, the rapid growth of the industrial fund has become a vital support force. This study aims to evaluate the Local Government’s Industrial Investment Fund Sustainability in Henan, China. Two-factor theories, quasi-public theory, market failure theory and sustainable development theory, along with a study of domestic studies on the development of local government industrial investment funds, were addressed to investigate the research phenomenon empirically and theoretically. For this analysis, quantitative methods are considered to be more fitting. The primary goal is to provide an overview of the apparent facts of interest to researchers. The quantitative findings include primarily statistical analysis of the data obtained. In this study, the description of statistical analysis data is used to explain the studies predicted final results. The empirical findings of this study that the structure of the supervisory system, the process of market exit and technical talents are essential factors that stimulate the industrial investment fund of the people for the local government in Henan, China, are similar and confirm with the results of previous scholars. Thus, the primary catalyst for China’s financial growth is accountability. There would be no China today without a transition and an opening. Nevertheless, in comparison to the real needs of monetary gain, China’s receptiveness to the outside world is still insufficient. JEL: L10; L16; L78 Article visualizations

Global and regional sourcing of ICT-enabled business services: upgrading of China, Hong Kong and Singapore along the global value chain

Offshoring, as part of globalisation, first started decades ago with manufacturing processes disintegrated along the global value chain and dramatically redistributed to low-cost regions. The next global shift of work involving ICT-enabled business services has arisen since the 1990s, especially featuring the success of India’s supplier role. The possibilities for the Global South to move up the value ladder are well demonstrated by the achievements of the newly industrialised economies in East Asia in the first shift and of India in the second. In the services sector, however, potential for upgrading is conditioned by quality-based elements, such as trust, culture and language, which vary both between producing and market areas. Flows are increasingly multi-directional, requiring attention to the neglected issue of demands from fast-growing Southern economies. So how do locations and firms in the Global South attempt to upgrade in the regime of rising services offshoring? The Indian experience especially in serving Anglophone markets in the Global North has been widely documented – but not that of East Asian economies, with their distinct characteristics and strong historic, ethnic and cultural ties with each other. This study examines the upgrading possibilities and constraints of China, Hong Kong and Singapore along the global services chain. For cross-case analysis, it focuses on three specific sets of services, including information technology, finance and accounting, and customer contact services. The concepts of global value chain, competitive advantage and capabilities are applied to reconstruct the phenomenon of services offshoring from both the demand and supply perspectives in the selected locations, and synthesise the dynamics between locational characteristics and firm strategies. A series of distinct upgrading strategies are identified, involving mixes of manufacturisation, knowledge-intensification and deepening relational capabilities to exploit both regional advantages of language/cultural proximity and established global links

The impact of labels on the competitiveness of the European food label supply chain

The report studies the impact of private labels on the competitiveness of the European food processing industry and investigates whether a system of producer indication may improve the functioning of the food supply chain. The impact is studied using economic theory and empirical and legal analysis. The study is completed with an impact assessment

Rural non-farm development in China and India

The dynamic rural nonfarm sector in China has been a major contributor to the country's remarkable growth, while in India the growth in output and employment in this sector has been rather stagnant. The paper argues that the observed patterns in the rural nonfarm development are the results of institutional differences between the two countries, especially in their political systems, ownership structure, and credit institutions. A review of the strengths and weaknesses of the rural nonfarm economy in China and India highlights the potentials and challenges of growth in the sector.Industrial policy ,Policy research ,Non-farm development ,