DOES FIRM OWNERSHIP AFFECT SPILLOVER OPPORTUNITIES? EVIDENCE FROM CHINESE MANUFACTURING

The clustering of economic activity is believed to generate both positive own‐industry (localization) spillovers and negative competitive pressures. Using data on manufacturing enterprises operating in China during 1998–2006, this paper provides evidence on the net effect of opposing spillovers from nearby economic activity. Central to the analysis is the opportunity to distinguish local manufacturing enterprises by state, private, or foreign ownership. Systematic differences in average productivity of these firms enable inferences about differences in the strength of spillovers from one type of firm to another type. Results indicate that spillovers are larger within the same ownership type than they are across them, consistent with localization economies that operate within segmented channels of influence.     

MARKET CAPTURE BY TWO COMPETITORS: THE PREEMPTIVE LOCATION PROBLEM*

ABSTRACT. We consider a location and allocation game for two competitor firms, A and B, that each seek to locate p facilities in a network. A market is captured by a particular firm if that market's closest facility belongs to that firm rather than a competitor. The question is as follows: Firm A wants to locate its p facilities so that B, which enters also with p facilities after Firm A has located its facilities, will capture the minimum market value possible. That is, Firm A wishes to preempt Firm B in its bid to capture market share to the maximum extent possible. A model is presented that addresses this issue, together with solution methods and computing times.     

Location Equilibrium for Cournot Oligopoly in Spatially Separated Markets

Consider a two-stage non-cooperative Cournot game with location choice involving n≥ 2 firms each with several facilities. There are m≥ 2 spatially separated markets constituting the vertices of a network. Each firm first selects the locations of their facilities and then selects the quantities to supply to the markets to maximize its profit. There exists a Nash equilibrium in the quantities offered by each firm at the markets. Furthermore, when the demand in each market is sufficiently large, each firm chooses to locate its facilities only at vertices. With linear demand in each market, there exists a Nash location equilibrium.     

A MANAGERIAL MODEL OF THE EFFECT OF PRODUCT MARKET STRUCTURE ON FIRM LOCATION*

ABSTRACT. This paper develops a model of firm location choice based on managerial theory of discretionary behavior. Specifically, it is assumed that the management of the firm maximizes a utility function which incorporates profits and location-specific amenities. As the firm moves from one prospective location to another, it faces a profit-amenity constraint imposed by market conditions. The optimal location decision is derived by maximizing the utility function subject to this market-imposed constraint. After examining the properties of the optimal solution, the impact of various changes in product market structure (including changes from a contestible markets perspective) on the location decision is investigated. A major finding is that the impact of a change in market structure depends upon the nature of the structure change and upon the substitution and income effects induced by the structural change.     

Staying Power: What Influences Micro-firm Survival in Tourism?

Abstract

The purpose of this paper is to investigate how previous experience and location of entrepreneurs influence the survival of new tourism firms. The paper departs from recent evolutionary economic geography advancements, highlighting the importance of routines and skills as well as location-specific knowledge for firm success. While having been well-researched for manufacturing industries characterized by high entry barriers, little knowledge is currently available on the factors influencing survival rates in service sectors with low entry barriers. A quantitative approach applies hazard models to investigate the survival rates over a seven-year period of a total of 133 new micro-tourism firms started between 1999 and 2001 in the four northernmost counties of Sweden. The geo-referenced micro-database ASTRID links information on firm features (e.g. firm births and deaths, spatial coordinates and industry codes) to characteristics of entrepreneurs (e.g. age, education, previous experience). The main finding is that entrepreneurs with previous work experience in related sectors are more likely to survive and, in this case, entrepreneurs without local experience tend to be less successful. We find no evidence that new firms operating in regions specialized in tourism have a survival advantage. Our analysis also indicates that surviving firms improve performance over time. The paper thus contributes new knowledge on the determinants of micro-firm survival in tourism.     

LOCATIONAL FACTORS OF MACHINE MANUFACTURING IN THE SOVIET NORTH

Arguments are marshaled against the location of machine manufacturing in the North. The location of suppliers and the location of the market are viewed as negligible factors because machinery plants generally are supplied from a large number of sources and serve a highly dispersed market. The crucial element is said to be the issue of labor resources, particularly skilled labor, and the associated infrastructure that would be needed in the North. It is also pointed out that machine manufacturing is traditionally most cost-effective in large urban centers and in older industrial areas where it benefits from the so-called agglomerative effect of locational factors. It is recommended that metal-fabricating activities in the North be restricted to essential equipment repairs and overhauls and occasional manufacture of nonstandard equipment, with greater use of centralized supplies of spare parts. (For an opposed view, see V. P. Yevstigneyev in Soviet Geography, May 1976.)     

Ross & Glendining and the Development of the New Zealand Woollen and Worsted Industries before 1914

Abstract

Cyclical downturns and heavy unemployment from the 1860s onwards encouraged the New Zealand government to foster the development of industry in order to promote economic stability. The woollen and worsted industry was a beneficiary of bonuses and tariffs, and by the turn of the century there were ten mills at work. Although not the first mover, the dominant firm in the industry was that of Ross & Glendining. Initially a major importer of clothing and textiles, this firm integrated backwards into woollen manufacturing to take advantage of growing markets. The success of the firm was partly due to the considerable mercantile wealth of the partners and their access to an extensive distributional network. More important, perhaps, was their enterprise and their willingness to innovate even under the most adverse conditions. This present article exploits a hitherto little used archive in order to provide a unique insight into the ways in which two Scottish entrepreneurs took advantage of that environment to create the basis for what was to become the country's largest manufacturing enterprise.     

THE EFFECTS OF ZONING IN SPATIAL COMPETITION

ABSTRACT This paper considers a location model to illustrate the effect of zoning on competition. A planner is in charge of designing a city in a circular space where firms and consumers are located on different sides. With this type of market configuration, equilibrium in location under concave transport costs is proved. Then, a welfare function with different weights attached to consumer and firm surpluses is introduced to highlight zoning regulation as an influential competition policy tool. Depending on the regulator's political profiles and the demand, it is shown that zoning can lead to strong, weak, or moderate competition.     

Synthesis by microbes or chemists? Pharmaceutical research and manufacturing in the antibiotic era

This article presents a case study of the rise of Pfizer as a leading pharmaceutical company, with a focus on changing relationships between manufacturing technology and R&D between the mid 1940s and the mid 1960s. Pfizer first moved into pharmaceuticals through participation in the US government's penicillin effort during World War II. The company had expertise in deep tank, biological fermentation for the production of chemicals that it adapted to the manufacture of penicillin. Having greatly expanded its biological manufacturing capacity to meet state needs, Pfizer adopted an R&D program to find new microbial antibiotics suited to its manufacturing technology after the war ended. Pfizer's successes in this antibiotic era established the firm as a major pharmaceutical company. In looking to larger commercial markets for drugs, Pfizer, like its competitors, pursued medicines for chronic diseases rather than acute infections. For this pursuit, in the 1950s and 1960s, Pfizer transformed itself into a chemistry‐orientated pharmaceutical firm by reorienting its R&D toward chemistry. This led to a growing divergence between R&D and manufacturing and the eventual replacement of biological manufacturing with chemical manufacturing. The article explores the changing trajectories of R&D and manufacturing at Pfizer, their shifting positions within the firm, and the consequences of these changes and shifts for the firm's strategy and organization.     

京津冀地区城市间行业工资差异及影响因素分析

基于2005-2012年京津冀各城市工资及其它社会经济数据,探讨了市场潜能、产业集聚、人力资本、制度改革等因素对城市间各行业工资差异的影响。结果表明：①市场潜能对各行业工资水平的增长均有一定的促进作用。②除消费性服务业外,各类产业集聚对地区平均工资水平的提高均有一定的促进作用,但制造业集聚带来的拥挤效应也已开始体现;生产性服务业集聚能够带动公共性服务业工资的提升,而公共性服务业缺乏对生产性服务业的反哺;产业集聚对消费性服务业工资缺乏带动作用。③在控制变量方面,交通基础设施对工资水平的带动作用逐渐弱化;科技投入、人力资本对服务业工资水平的带动作用较高,而对制造业影响较弱;市场经济体制改革对工资水平的带动作用仍未体现;政府市场干预能力的提高仅带动了公共性服务业工资的提升,而外向度的提升则仅对公共性服务业缺乏带动作用。     

HOTELLING'S “MAIN STREET” WITH MORE THAN TWO COMPETITORS*

ABSTRACT. I analyze oligopolistic competition among three or more firms located on Hotelling's (1929) Main Street and show that in contrast with Hotelling's duopoly, the symmetric locational structure supports a noncooperative equilibrium in prices. However, in a two-stage game of location choice in the first stage, and price choice in the second stage, there exists no subgame-perfect equilibrium where the whole market is served. This is because, starting from any locational pattern, firms have incentives to move toward the central firm. This strong version of the Principle of Minimum Differentiation destroys the possibility of a locational equilibrium. The results are a direct consequence of the existence of boundaries in the space of location. The sharp difference between these results and those of the standard circular model (whose product space lacks boundaries) shows that the general use of the circular model as an approximation to the line interval model may be unwarranted.     

A NOTE ON INCOME TAXES AND DEGREE ONE PRODUCTION HOMOGENEITY*

ABSTRACT In a recent JRS article [Martinich and Hurter (1985)] we examined the production and spatial impact on a firm operating in an uncertain environment due to the imposition of a flat rate income tax. The impacts were shown to depend on the properties of the firm's production and preference functions. In this paper we develop further results for the case where the firm has a degree one homogeneous production function. It is shown that an income tax is technologically and spatially neutral for any risk-averse firm, without regard to any other properties of the preference function. Thus, we not only extend our earlier results for the degree one homogenous production function case but we also correct an error related to this case in the earlier paper.     

兰州城区制造业空间结构及其影响因素研究

基于2008年企业的相关数据,以兰州城区行政区划中街道为空间单元,通过对兰州市制造业企业的宏观总量空间分布、行业类型分布、企业规模分布的分析,探寻该市内部制造业的空间结构特征及规律,并从影响企业区位选择的因素入手,分析现有制造业空间结构的影响因素。研究表明:无论从宏观总量空间分布、行业类型分布、企业规模分布来看,兰州城区制造业企业空间结构由内到外都呈现明显的圈层分布特征;这种空间分布特征是在历史因素、土地因素、城市规划和政府政策、集聚效应、开发区等多重影响因素和驱动力的共同作用下形成的。     

R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.     

The Making of Speculative Biodiesel Commodities on the Agroenergy Frontier of the Brazilian Northeast

In this paper, I examine the speculative dimensions of biodiesel production in Northeast Brazil under the National Program for the Production and Use of Biodiesel (PNPB), by focusing on the case of castor oil plant (Ricinus communis) in semi-arid Bahia, a promising flex crop that was said to generate social, environmental and economic benefits, especially for the historically marginalised Northeast peasantry. I argue that speculative practices over castor have relied on state policies and discourses as well as biophysical and biotechnological (im)materialities that are transforming agrarian relations in ways that compromise peasants’ control over their (re)productive systems while promoting the expansion of the agroindustrial frontier. By examining the everyday, performative and place-based character of speculative biodiesel practices and their uneven and contested socioenvironmental implications, this paper contributes to current political ecology debates on the nexus between agroenergy development, nature’s capitalist valuation and rural dispossession.     

Competitive Location and Pricing on Networks

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market tvhere a competitor firm is already operating as a monopoly with several outlets. The entering firm seeks to determine the optimal uniform mill price and its servers' locations that maximize profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience and an example.     

Competitive Location and Pricing on Networks

In this paper we consider a location and pricing model for a retail firm that wants to enter a spatial market where a competitor firm is already operating as a monopoly with several outlets. The entering firm seeks to determine the optimal uniform mill price and its servers' locations that maximize profits given the reaction in price of the competitor firm to its entrance. A tabu search procedure is presented to solve the model together with computational experience and an example.     

A Postcolonial Critique of Community Energy: Searching for Community as Solidarity in India and Scotland

Community renewable energy (CRE) represents a growing empirical and academic turn towards community‐based sustainability and climate change interventions. This paper brings together postcolonial theory and CRE for the first time to outline fundamental tensions in the conceptualisation and application of the idea of community. The understanding of community within the CRE discourse is largely: (1) location‐based; and/or (2) a community of choice that is consciously opted into. Driven by postcolonial theory, this paper counterpoises both as a form of community as contract against an idea of community as solidarity. Its central thesis is that actually existing community, contrary to how the bulk of CRE literature commonly understands it, is a combination of bonds of solidarity and emergent purposes. The paper conceptualises community as fluid bonds of solidarity that align and realign differently around different purposes.     

EFFECT OF ENVIRONMENTAL REGULATIONS ON STATE- LEVEL MANUFACTURING CAPITAL FORMATION*

ABSTRACT We quantify the effect of environmental regulations on regional capital formation in the manufacturing sector. Our model integrates environmental regulations into a choice-theoretic model derived from Tobin's q theory of investment. It is postulated that more stringent environmental regulations raise the firm's cost of production both directly and indirectly, thus reducing the firm's q value and lowering the rate of capital formation. The empirical results indicate that the effect of environmental regulations on net capital formation is modest. We do find that environmental regulations affect regions differently. More stringent environmental regulations will improve the relative position of manufacturers in the North-east, South Atlantic and West. Over one-fourth of the dollar losses in manufacturing capacity would occur in five states: Texas, California, Pennsylvania, Ohio and Michigan.     

Report of council

The ancient medina of Fes has retained moving through the gates of the medina and suggests much of its traditional craft‐based industrial economy, relying on a flow of raw materials and goods carried within the old city by human and animal porterage. Vehicular traffic is unable to penetrate much of this area, necessitating considerable transhipment between different transport modes at the edge of the medina. This study examines the type of goods and transport that variations in these are related to the location of functional zones within the medina and to the condition of the urban fabric.