Inherited competence and spin-off performance

In this paper we extend the hereditary theory of spin-off formation, developed by Klepper, by relating the concept of inherited competence to two different types of spin-offs—university and private sector spin-offs—and two different types of inherited competence—R&D competence and innovation competence. We then utilize this extension of Klepper's framework to study the evolution of a science-based industry—the biotech industry. Using the Irish biotech industry as a case-study, we find that differences in pre-entry experience manifest themselves most markedly in terms of the firm's capacity to attract venture capital, with private sector spin-offs considerably outperforming university spin-offs. We argue that the superior performance of the private sector spin-offs is explained by the nature of their inherited competence in that they are characterized by higher levels of innovation competence.     

The Political Economy of Class Compromise: Trade Unions,Capital–Labour Relations and Development in North East Brazil1

Abstract: This article investigates how capital–labour relations (encompassing processes of class formation, representation, struggle and compromise) impact on emerging regions’ developmental trajectories. It does so because much of development studies portray labour simply as an input (human capital) subordinate to more fundamental processes such as capital investment and accumulation. The paper draws on and extends insights gained from the “new working class studies” and global commodity chains literatures in order to examine evolving capital–labour relations—from relatively militant struggles to class compromise—in an emerging sector of North East Brazilian export horticulture. It identifies sources of workers’ structural and associational power and uses these to explain significant gains achieved by the region's rural trade union during the formation of the export horticulture sector. It then asks, why, despite continuing structural power, the region's trade union has entered into a class compromise with the leading employers via (a) reducing its militancy and its strategy of striking against employers to win concessions, and (b) shifting its objectives in terms of concessions sought. It speculates on the impacts of these changing class relations on the region's developmental trajectory.     

Rescaling as a class relationship and process: The case of public procurement law in Turkey

In this study we focus on two problematic aspects of the recent rescaling literature: overgeneralization of abstractions rather than examination of concrete class forces; and unidirectional understanding of the relationship between rescaling processes in the core and periphery, where rescaling is seen as an outcome of the uneven development of capitalism based on the tendency of over-accumulated capitals in the core to move to the periphery. We suggest an alternative approach that conceives rescaling as a class relationship and process shaped by the contradictory interaction between global capitals in the core and newly growing capitals in the periphery. Through a study of the formation and transformation of the public procurement law in Turkey (2001–2005), we illustrate that the rescaling of the Turkish public procurement market was not only shaped by global capitals unidirectionally, but through their contradictory interaction with the domestic capitals in Turkey. Although the initial law was formed under the hegemony of global capitals, the AKP government then made many attempts to change the law in line with the demands of domestic capital groups. In this process, scale was shaped by the unequal but mutual power relationships between global and domestic capital groups.     

Geographies of capital formation and rescaling: A historical‐geographical approach to the food desert problem

Although the “food desert” concept has captured the public imagination and spurred public policy efforts in many North American cities, the term has been critiqued by academics for being definitionally and methodologically vague, and for providing an incomplete picture of the complexity of food access. Rather than dismiss the study of urban, inner‐city food deserts, however, scholars can study disparities in retail food access through a historical, critical political economy lens to understand underserved retail landscapes as a product of capital formation and rescaling over time. The purpose of this article is to conduct such an analysis, using the case study of a low‐income community in Kingston, Ontario. Using historical research and qualitative interviews, the major finding of this analysis is that the physical accessibility of retail food appears to have declined over time in relation to the capitalization of the retail food sector. An imperfect relationship can be outlined over three phases of Canadian urban economic history to suggest that the food desert problem emerged largely in the transition from a decentralized, small‐scale, and neighbourhood‐embedded retail food industry to the scaled‐up, disembedded industry that now dominates the landscape. This industry‐level rescaling is contributing to a new urban politics of class and consumption through subtle, everyday activities such as food shopping.     

The Effect of Public Infrastructure on the Private Productive Sector of Spanish Regions

In this paper we analyze the effect of infrastructure on the cost and productivity performance of the private productive sector of Spanish regions over the period 1980–1993. We use a dual approach based on cost functions that allows us to recover the usual parameters estimated with production functions. In addition, we obtain rates of return and cost elasticities of production factors at the regional level. Our framework explicitly considers that some factors are quasi-fixed and their volume can differ from their optimal endowment levels. Our results indicate that the public sector has contributed significantly to enhance productivity and reduce costs in the private sector of almost every Spanish region. Nevertheless, there is still scope for the government to continue its investment efforts, given that there remains an appreciable gap between observed and optimal public capital, and we find that in the long run, public capital promotes private investment.     

Private rental investment and socio-spatial disadvantage in Sydney,Australia

This article unpacks the connection between a growing cohort of small-scale but purposive property investors and urban socio-spatial restructuring. We analyse private rental housing as a tenure share to demonstrate its spatial correlation with the suburbanisation of socio-economic disadvantage in Sydney, Australia, between 1991 and 2016. Then, we show how investors drive this emerging pattern by reference to the geography of property owners’ stated investment objectives—low capital outlay, rental yields, and capital growth prospects. We contend that the link between their small-scale activities and the city’s changing socio-spatial structure is an overlooked consequence of private rental sector (PRS) housing financialisation. Importantly, our focus on behaviours exhibited by small-scale rental property owners in PRS financialisation transcends existing analyses that have concentrated on corporate entity activity in this space. That focus also contrasts with framings of private rental growth as a residual outcome of developments elsewhere in the housing market. Such work is significant because it demonstrates the impacts of real estate investment on urban form.     

Capital's Metropolis: Chicago and the Transformation of American Housing Policy

The US economic recovery of the 1990s accelerated amidst privatization, selective devolution and the reinvention of the public sector itself. Simultaneously, mortgage finance and assisted housing policy were recast in terms of market processes, individual responsibility and private home-ownership, even as gentrification enjoyed a dramatic resurgence. The intersection of these seemingly unrelated processes signifies an important transformation of the American inner city. Nowhere are these connections more explicit than in Chicago, where newly devolved and flexible policy infrastructures are built on the ashes of prominent experiments of previous generations. In this paper we use Chicago as a context to explore the linkages between reinvestment, housing finance and the reinvention of assisted housing. We analyse local and federal developments in assisted housing policy and develop a multivariate analysis of mortgage loans in Chicago's neighbourhoods during the 1990s expansion. New constructions of scale in assisted housing, exemplifed by Chicago's Lake Parc Place and the federal HOPE VI programme, constitute a centripetal devolution mediated by the relationship between public policy and local private market forces. National changes in housing finance have altered historical processes of redlining, disinvestment, and gentrification. Mortgage capital, traditionally responsible for the creation or exacerbation of rent gaps, now lubricates the flow of capital into the gentrifying frontier of the inner city. The intensified market discipline of housing policy, based partly on theories incubated in Chicago, suggests a new regime of neighbourhood change in the American inner city.     

The effects of public capital on private sector performance in Turkish regional manufacturing industries1

This article investigates the impact of public capital formation on private manufacturing sector performance in the seven geographical regions of Turkey and in aggregate. A vector autoregression (VAR) model has been employed to estimate long run accumulated elasticities of private sector variables with respect to public capital for the time period 1980–2000. The results show that public capital affects private output positively in aggregate and in all regions apart from the Black Sea and Mediterranean regions. The results also reveal that only in the Marmara region, the impact is positive both on input and output. The public capital crowds in private sector inputs in some regions.     

San Juan,the Fragile City: Finance Capital,Class, and the Making of Puerto Rico's Economic Crisis

This paper narrates Puerto Rico's fiscal and financial crisis through a reading of San Juan's urban landscape. We underscore the role of capital in the city, primarily embodied by the local capitalist class (the Criollo bloc) and foreign capitalists. Historically excluded from the manufacturing sector (dominated by US capitalists), the Criollo bloc accumulates its wealth by concentrating financial assets in the city. In times of crisis, the Criollo bloc resorts to the acquisition of new assets and asset exchange with foreign capitalists to remain solvent and provide short‐term solutions to the state's fiscal and financial limits. The survival of the local capitalist class, we demonstrate, is dependent on asset stripping. Drawing on Clyde Woods, we document how asset stripping unevenly redistributes wealth and risks along class and racial lines within a colonial economy. The finance capital/asset stripping basis of San Juan's economy renders it an extremely fragile city, we contend.     

Power and the Spirit of Clustering

This paper utilizes the Scotch Whisky industry to identify an issue which is absent from the current literature on sector specific clusters namely the concept of power. It is argued that in order to understand the nature of power relationships within a cluster it is necessary to adopt a radical Coasian framework. The paper utilizes a typical Structure-conduct-performance approach to analyse the Scotch Whisky industry and to highlight the problems that power relationships pose within a typical cluster. It is imperative that policy-makers are aware of the power relationships which exist in clusters if clustering strategies are to deliver the perceived potential.     

STATE, CLASS AND INTERNATIONAL CAPITAL 2: THE DEVELOPMENT OF THE BRASILIAN STEEL INDUSTRY

This paper examines the forces underlying the development and form of the Brasilian steel industry since the 1930s. Foreign direct investment has been limited by Brasilian nationalist policies and by higher costs of steel production, but large scale, integrated plants could not be built by private capital due to insufficient resources. Thus the Brasilian steel industry combines large scale state owned plants (financed by foreign capital) and smaller scale privately owned plants. The operations of the plants are coordinated to reduce market uncertainty, permit the steel sector to advocate its own expansion plans, and delimit the spheres of public and private capital while excluding foreign commodity and productive capital. Even so, in the 1980s the steel industry in Brasil has faced a crisis of declining local demand, prompting a rapid expansion of exports.     

The Spatial Evolution of the Polish Biotech Industry: A Path-Dependent Process?

In Poland, similarly to other Central and Eastern European countries, the development of the biotech industry dates back to the late 1980s, when the first private companies were established. The political and economic transformation of 1989 enabled mass development of private enterprises, but over the course of 20 years of development, only a couple of dozens biotech firms have emerged in Poland. The spatial evolution of the industry shows a strong concentration in Poland's six largest urban centres, which are characterized by the best scientific base, access to financial capital, and a well-developed local entrepreneurial culture. Given that all biotech clusters are also important centres of the pharmaceutical industry, despite the fact that there are no strong direct relationships between Poland's biotech and pharmaceutical companies, the authors of this paper put forward the thesis that the institutional environment of the pharmaceutical sector also affects the development of the biotech industry.     

基于社会资本理论的产业转移研究:江苏南北共建开发区模式解析

将社会资本的理论嵌入产业转移研究,拓展了传统产业转移研究的视野。阐述了基于社会资本的产业转移新内涵,认为产业转移是一个涉及主体、客体和载体的动态网络化过程;提出了基于社会资本结构维度、关系维度和目标维度的产业转移分析新框架;解析了江苏省南北共建开发区模式产业转移的典型经验,构建了企业、政府、开发区与规范、信任、网络的产业转移与社会资本互动的"三角模型",探讨了计量解析的方法;提出了相应政策建议。     

Precarious Debt: Microfinance Subjects and Intergenerational Dependency in Cambodia

This paper tells a story of debt within a rural Cambodian family in order to understand how microfinance produces more‐than‐individual financial subjects that are entangled in changing social relations of dependency. We draw upon 20 months of joint ethnographic research in Cambodia, where the microfinance industry is one of the largest per capita in the world. Informed by Judith Butler's notions of precariousness and precarity, we argue that even in the context of deepening financialisation, people's lives remain dependent upon others, especially within families. We analyse how these family relations of dependency are reworked along generational lines and spatially stretched due to precarious economic conditions of indebtedness, household migration, and distant labour markets. We conclude that reframing financial subjectivity in terms of precariousness helps us to analyse the relationship between households and financial markets, as well as inform a critical politics of finance.     

Deconstructing the Financialization of Healthcare

Financialization is promoted by alliances of multilateral ‘development’ organizations, national governments and owners and institutions of private capital. In the healthcare sector, the leveraging of private sources of finance is widely argued as necessary to achieve the Sustainable Development Goal 3 target of universal health coverage. Employing social science perspectives on financialization, the authors of this article contend that this is a new phase of capital formation. The article traces the antecedents, institutions, instruments and ideas that facilitated the penetration of private capital in this sector, and the emergence of new asset classes that distinguish it. The authors argue that this deepening of financialization represents a fundamental shift in the organizing principles for healthcare systems, with negative implications for health and equality.     

Store Wars: Changing Retail Ownership in Beijing

Two U.S.-based economic geographers analyze recent changes in retailing activity in Beijing, focusing on changes in store ownership. More specifically, they investigate declines in state ownership in the retail sector since the early 1980s in conjunction with the rapid growth of the domestic private sector and foreign ownership. The paper outlines a new geography of successful (and not-so-successful) retailers that has emerged due to rationalization of the industry, marketization, globalization, as well as government policies at a variety of levels. Changes in store ownership provide insights into the complexity of China's transition, the evolving relations between state and capital, and the role of the local state in the country's economic reforms. Journal of Economic Literature, Classification Numbers: D23, L20, L81, O18. 2 figures, 3 tables, 1 appendix, 114 references.     

Extracting sovereignty: Capital, territory, and gold mining in Tanzania

In contemporary discussions of “resource nationalism,” sovereignty is often imagined as the exclusive control of national states over internal resources in opposition to external foreign capital. In this paper, we seek to draw attention to the specifically national territorial forms of sovereignty that - rather than hindering the flow of capital - become constitutive to the accumulation of resource wealth by states and capital alike. Drawing from political geographical theorizations of sovereignty, we argue that resource sovereignty cannot be territorially circumscribed within national space and institutionally circumscribed within the state apparatus. Rather, sovereignty must be understood in relational terms to take into account the global geography of non-state actors that shape access to and control over natural resources. Specifically, we engage national-scale state sovereignty over subterranean mineral resources in the form of legal property regimes and examine the mutually constitutive set of interdependencies between mining capital and landlord states in the accumulation of resource wealth. Using Tanzania as a case study, we argue that national-scale ownership of subterranean mineral resources has been critical to attracting global flows of mining capital from colonial to contemporary times. We first examine the history of the colonial state in Tanganyika to illustrate how land and mineral rights were adjudicated through the power of the colonial state with the hopes of attracting foreign capital investment in the mining sector. We then examine contemporary efforts on the part of the independent United Republic of Tanzania to again enact legislation meant to attract foreign mining companies - and the consequences for local populations living near sites of extraction.     

Public Sector Relocation Policies in the UK and Ireland1

Public sector relocation from capital cities to reduce costs and ameliorate regional disparities has been a high profile but little researched government policy. The paper outlines the reasons for the growth of interest in public sector relocation in Europe, and then compares UK and Irish relocation policies. It argues there appears to be a good case for public sector relocation, but there is less agreement on the precise means whereby dispersal should be achieved. The paper highlights successful aspects of public sector relocation policies in the UK and Ireland and indicates areas for further research. Successful public sector dispersal depends on a willingness on the part of government to take a long-term view, and historical evidence suggests it is difficult to move senior posts from the capital.     

The Impact of a Customs Union with the European Union on Internal Migration in Turkey

Abstract The impact of the recent Customs Union (CU) agreement between Turkey and the European Union on internal migration is studied using an intra‐industry trade Computable General Equilibrium (CGE) model with intersectoral capital mobility under two alternative specifications for the labor market: the traditional Harris‐Todaro approach and the existence of a “wage curve” in the urban sector. Under both specifications, the numerical results show that the CU is welfare enhancing and causes a reduction of the urban‐rural wage gap as suggested by theoretical studies. At the same time, it leads to rural‐to‐urban migration and raises the capital rent, results that are counter intuitive with respect to the dual economy literature. Furthermore, the rise in formal labor demand and the migration response to the CU have not resulted in an increase in urban unemployment (i.e. the “Todaro paradox”), but rather to a fall in the unemployment pool. The study also shows that the Bhagwati‐Srinivasan proposal of maximizing welfare by uniformly subsidizing the entire labor market is impracticable, especially if the high wage union sector can negotiate employment conditions.