The Role of Multinational Corporations in Metropolitan Innovation Systems – Empirical Evidence from Europe and South-East Asia

Using firm-level survey data from Barcelona, Stockholm, Vienna in Europe and Singapore, Penang (Malaysia) and Bangkok in South-East Asia the paper enquires into the different R&D and innovation behaviour of multinational and local companies in these Metropolitan Regions. Scrutinizing a set of input, throughput and output indicators as well as information on cooperation characteristics, we try to evaluate a) if the spatial pattern of more (intense) innovation activity in Europe when compared to South-East Asia is still valid; and b) if there are reasons to believe that R&D units of multinational corporations in Europe are mainly concerned with the enhancement of the knowledge base and the development of future competitiveness by tapping into localized knowledge and using the particular host regions’ innovation systems, while, on the other hand, MNCs in South-East Asia use R&D to support existing production facilities in order to exploit an existing competitive advantage. We are able to show that there is still a major gap in the innovation performance between South-East Asia and Europe and that there are indeed indications that R&D units in Europe are more orientated towards the augmentation of the company’s knowledge base.

Barriers Against the Transfer of Knowledge Between Universities and the Industry in Newly-Industrialised Countries - An Analysis of the Regional Innovation System of Bangkok

This paper presents empirical evidence on university-industry relations (UIR) and knowledge transfer in the regional innovation system of Bangkok and broaches the issue of adapting well-established concepts for the analysis of innovation processes in newly industrialising countries. The potential for UIR is restricted due to 1) a weak and fragmented innovation system, 2) low technological and absorptive capacities in the industrial sector, and 3) slowly improving research capabilities in the scientific sector. Hence the level of UIR in the regional innovation system of Bangkok is mainly limited to occasional and personal modes. It is suggested to strengthen the knowledge transfer capabilities within both actors and to establish effective mechanisms for bridging institutional barriers between academia and industry.

Evolving into a Regional Innovation System: How Governance impact on Innovation in Shenzhen and Dongguan, China?

Governance constitutes elementary supportive infrastructure for regional innovation systems. This paper extends the evolutionary lens of governance into initial industrialization phase and examines the impact of their evolution into regional innovation systems on fostering innovation activities. Drawing on the empirical substances in Shenzhen and Dongguan, China, a path-dependent nature of institutional design on supporting innovation has been discovered. The paper shows that the dirigiste globalized production system in Shenzhen in 1980s has gradually evolved to a higher level of interactive regional innovation system than the grassroots globalized production system in Dongguan, where innovation is still passively managed by global players. Finally, policy implication is discussed for the construction of regional innovation systems under different governance modalities in the initial industrialization phase.ego-networks, geographical proximity, innovation performance, knowledge networks, technological relatedness

Innovation potentials and innovative networks in European metropolitan regions: Some empirical evidence from the Metropolitan Area of Barcelona

Innovation potentials and innovative networks in European metropolitan regions - some empirical evidence from the Metropolitan Area of Barcelone Revilla Diez, Javier; Escorsa, Pere and Camacho, Jaime Alberto Interregional competitiveness and the relationship between technology and competitiveness has increasingly become the object of considerable interest. The stimulation of innovation potentials within a region is becoming more and more decisive in the competition between regions. Although a precise definition of the term innovation potential is difficult, there is no doubt that it is essentially the stock of knowledge and its use which makes up the innovation potential of a region. This stock, however, is an inert factor. Its conversion into innovation underlines the importance of linkages and relationships in everyday innovation processes. Firms pursue co-operative agreements in order to gain rapid access to new technologies or new markets, to benefit from economies of scale in joint R&D and production to tap into essential resources of know-how and to share risks. These linkages possess a number of features which make the network mode a distinct from inter-firm organisation. This paper attempts to give a clear documentation of current innovation activities in the metropolitan region of Barcelone between the three major actors in innovations systems: industrial firms, producer services and research institutions. The presented results are based on representative surveys within an international comparative study in three major metropolitan areas in Europe (Barcelone, Stockholm and Vienna). The results of this research will be relevant for an understanding of how and why different industries build cooperative relationships in metropolitan regions. The results will also provide insights for policy efforts that can help to nurture and expand the regional economic base in the face of the current rapid globalisation of production. Keywords: Innovation potential, Innovation networks, Metropolitan regions, Barcelona

The determinants of regional disparities in skill segregation: Evidence from a cross section of German regions

Increasing inequality in qualification specific employment prospects characterises labour markets in most highly developed countries. Theoretical models suggest that in-plant skill segregation might matter for the polarisation of employment and wages. According to these models production technology and the educational level of the work force are important determinants of skill segregation. There are some studies that investigate the increasing in-plant skill segregation at the national level. However, since production technologies and skill structures are characterised by pronounced regional disparities, there are likely significant differences in the level of segregation between regions. But empirical evidence on corresponding regional inequalities is lacking. The objective of this analysis is to investigate regional disparities in skill segregation in Germany. Our findings point to marked disparities among German regions. Moreover, we analyse the determinants of these differences at the regional level. The results of a regression analysis indicate that the local endowment with human capital is an important determinant for the regional level of skill segregation. Furthermore, skill segregation is increasing in most areas during the period under consideration, which may lead to unfavourable labour-market conditions for low-skilled workers in corresponding regional labour markets. --regional labour markets,skill segregation,human capital

Socio-economic vulnerability of coastal communities in southern Thailand: The development of adaptation strategies

The tsunami of December 2004 impacted large areas of Thailand's coastline and caused severe human and economic losses. The recovery period revealed differences in the vulnerabilities of communities affected. An understanding of the causal factors of vulnerability is crucial for minimising the negative effects of future threats and developing adaptive capacities. This paper analyses the vulnerabilities and the development of adaptation strategies in the booming tourist area of Khao Lak and in the predominantly fishing and agricultural area of Ban Nam Khem through a comprehensive vulnerability framework. The results show that social networks played a crucial role in coping with the disaster. Social cohesion is important for strengthening the community and developing successful adaptation strategies. The development of tourism and the turning away from traditional activities have a significant positive influence on the income situation, but create a dependency on a single business sector. It could be shown that households generating their income in the tourism sector were vulnerable unless they had diversified their income previously. Income diversification decreased the vulnerability in the study areas. Adaptation strategies and processes developed in the aftermath clearly address these issues

Firms as drivers of integrative adaptive regional development in the context of environmental hazards in developing countries and emerging economies - A conceptual framework

Many industrial sites in developing countries and emerging economies face increasing exposure to environmental hazards, e.g. in coastal locations, while being situated within the territory of state authorities which lack in capacity to provide adaptation solutions. It is therefore relevant to ask, whether and how firms engage in adaptation, both individually and collectively, in order to reduce business disruptions, enhance their competitiveness and shape regional development. However, the literature has made little efforts to address these questions conceptually and empirically. The paper therefore develops a heuristic conceptual framework for deciphering the decision-making of firms exposed to environmental hazards and the role that they might play for shaping larger risk governance and eventually regional adaptation. In doing so, the paper builds on both an explorative empirical study in Jakarta and Semarang and the assessment of different literatures of relevance to the topic. The proposed framework argues that firms potentially fulfill a twofold role in shaping integrative adaptive regional development when exposed to environmental hazards. First, firms seek to enhance their own competitiveness through adjustments which are determined by their routines, risk behavior and the institutional setting. Second, firms act as stakeholders within broader collective adaptation. In conclusion, the framework suggests that firms' (in-)actions can shift the trajectories of regional development into different directions, along a gradient from collapse, resistance, resilience to transformation. The framework can be used to guide empirical analysis and inspire policy making and practice of integrated adaptation governance, especially in rapidly changing developing countries and emerging economies