Industrial Policy in the 21st Century

Industrial policy is back at the centre stage of policy debate, while the world is undergoing dramatic transformations. This article contributes to the debate by developing a new theory of industrial policy, incorporating some issues that have been neglected so far and taking into account the recent changes in economic reality. The authors explore how the incorporation of some of the neglected issues — commitments under uncertainty, learning in production, macroeconomic management (especially demand management), and conflict management — changes the theory. They then examine how the theory of industrial policy should be modified in light of recent changes in economic reality: the rise of the global value chain, financialization and new imperialism. This contribution aims at promoting a pragmatic approach to industrial policy and pointing to new areas for policy intervention in a changing world.     

Industrial district or subordinated production: A case study of small-scale carpentry industries in Accra, Ghana

This article aims at gaining greater insight into the functioning of small-scale industries in an African context. The findings are based on predominately qualitative fieldwork conducted on small-scale carpentry industries in Accra, Ghana. A special concern is whether the small-scale carpenters are capable of acquiring the technological capabilities conducive to a positive industrial development. Two opposing frameworks, one neo-Marxist and one centred on the conceptualisation of industrial districts, are used to discern the nature of locally embedded production and supply linkages, and whether these are conducive to the technological capabilities needed for innovative growth. Despite facing similar structural constraints there are a few small-scale enterprises that remove themselves from the characteristics of informal production by making the greatest use of the services entailed in the carpentry production network. These linkages, however, are still not extensive enough, nor advanced enough, to bring about the technological innovations associated with a true industrial district. The benefits gained through interlinked production are thus better understood as a means of securing domestic resilience, rather than international competitiveness. Furthermore, an explanation for the limitations of these linkages must be sought beyond the meso-level analysis typical of an industrial district approach.     

A New Standard of Review: Craig v. Boren and Brennan's “Heightened Scrutiny” Test in Historical Perspective

“To withstand constitutional challenge, previous cases establish that classifications by gender must serve important governmental objectives and must be substantially related to achievement of those objectives.” ¹ With this one statement, Justice William Brennan, Jr., writing for the majority in the 1976 Supreme Court case Craig v. Boren, ² both reversed the decision of the district court below and—more importantly—redefined the legal standard for equal protection in gender-discrimination cases. Brennan's statement encapsulated decades' worth of development and decisions under the Equal Protection Clause of the Fourteenth Amendment, which bars states from denying “to any person within [their] jurisdiction the equal protection of the laws,” ³ by creating what is now referred to as the “heightened scrutiny” ⁴ standard for judging equal protection legislation. Yet Brennan's creation of a new standard is quite striking, even when looked at in hindsight. How was Brennan able to create this standard of review, and where did it come from? Was this new step taken by the Justices under equal protection adjudication a mistake, or a necessary reality of the period? Through a close analysis of both the history of the Equal Protection Clause in its relation to gender legislation and the history of feminism during the 1960s and 1970s, the inevitability of Brennan's decision becomes clear. In fact, the creation of the heightened scrutiny standard was an inevitable outgrowth of two separate, yet fundamentally related progressions: the steps taken in the Court in its review of gender-discrimination cases in the years prior to Craig v. Boren; and the changes in society's relation to the feminist movement in the pre-1973 and post-1973 periods.     

Reality versus Policy: The Delineation and Testing of Local Labour Market and Spatial Policy Areas

As part of the empirical planning science, this article integrates theory, empirical findings and policy. It first deals with the question how to reach a theoretically well-grounded and empirical applicable delineation of local labour market areas. An inductive classification method is selected based on the behaviour of individual commuters without selecting a priori central places. By this, new urban forms like polynodality are included. In using this method for the Netherlands, 31 local labour market areas (LLAs) were distinguished. Moreover, the article elaborates some simple measures to test the optimality of LLA classifications. The 31 LLAs adequately reflect the 'reality' of actual functional labour market relationships. The article also investigates the matching between reality and the LLA classification as used in spatial policy. There is a large gap between reality and policy. This urges bringing the policy classification more in line with existing LLAs. Alternatively, if one considers the present policy classification as an instrument for future spatial structure, much additional effort will be required. The findings of the article can be easily applied to other European countries.     

Dynamics of Industrial Districts and Business Groups: The Case of the Marche Region

Italian industrial districts are undergoing fundamental changes due to globalization. Taking a firm perspective, we argue that the analysis of firm strategies, in particular the rise of business groups, is key to understand the organizational adjustments industrial districts have recently gone through. Due to the typical family structure of industrial district firms in the Marche region, as in other fragmented Italian districts, the organizational form adopted by firms to manage growth is that of the business group. We evaluate the empirical relevance of business groups in the Marche region, and we describe different transition strategies that turned firms into business groups.     

Power and Scale: The Shifting Geography of Industrial Relations Law in Australia

Abstract: In an increasingly complex literature exploring the geographies of socially constructed scale, interest has focused on the relationship between scale, power and the contested political terrains through which these relations are played out. In this paper, I argue that these interactions must be understood in specific contexts, where shifts in scale are inextricably linked to shifts in the sources and instruments of power. By applying a scale perspective to the analysis of recent industrial relations legislation in Australia, I show that the nature and direction of rescaling is “fixed” by the powers of institutional actors and the scope of their jurisdictions. I then draw on the distinctively scaled relations of the Australian context to assess the extent to which Australia's national rescaling processes can be seen as representing a process of convergence toward universal “spaces of neoliberalism”.     

Globalization,Recession and the Internationalization of Industrial Districts: Experiences from the Italian Gold Jewellery Industry

Abstract

Globalization and the recent recession crisis are significantly challenging Italian industrial districts (IDs), leading to deep transformations in their internationalization, innovation and organization strategies. With our empirical focus on a single industry (gold jewellery) and a specific country (Italy) and through the theoretical lenses of the global value chain (GVC) approach, the evidence in this article sheds light on the differences in how three IDs within Italy's gold jewellery sector (Valenza Po, Arezzo and Vicenza) compete in the global arena. Our comparative analysis reveals striking differences among these districts with regard to their upstream and downstream internationalization strategies in response to two industry shocks: increasing global competition in the early 2000s and the world economic recession of 2008–2009. Our explanation for the varied gold jewellery district responses to these two global crises involves both internal and external factors: (1) structural differences between the three IDs; (2) distinct business strategies; and (3) how these districts are linked to the gold jewellery GVC.     

The Industrial District and the 'New' Italian Economic Geography

The industrial district is one of the theoretical concepts by which Italian economic geography has redefined a large part of its scientific and methodological status. The successful of industrial district is linked to the explanation of the Italian model of light industrialization, that is to the role played by small firms in Italian manufacturing industry. Nevertheless, it is worthwhile to know that industrial district was introduced as a theoretical paradigm to stress the territoriality of the production process and the gain of productiveness and innovativeness for the firm which sources from the embedding of economic activity within the local society where the production takes place. Support for this approach is found in the Marshallian external economies. This article addresses the importance of industrial district from the point of view of this neo-Marshallian reading of the organization of production. This framework of reference provides the basis for the formulation and implementation of local policies which recast traditional economic, social and infrastructural ones as specialist policies aimed at the creation of the institutional and environmental conditions for the competitiveness of places.     

Multiple multiculturalisms: insights from the Edinburgh Mela

This paper contributes to debates about the future of multiculturalism in Britain by exploring how it is conceptualized, constructed and experienced in contemporary Scotland. The work is grounded in Hall's (2000) important but commonly overlooked distinction between a ‘multicultural society’, which designates a condition of cultural diversity, and ‘multiculturalism’, which refers to processes and policies that attempt to fix the meaning of such diversity. As these definitions suggest, the abandonment of multiculturalism as a ‘policy failure’ cannot be a solution to problems arising from the complex composition of contemporary societies. The fact that all societies must make decisions about the significance of cultural diversity and its management—they must all practise some form of multiculturalism—is established through a review of how multiculturalism has been conceptualized and pursued to date. The paper then draws on the example of Edinburgh's South Asian Festival—the Mela—to explore the empirical complexities of these different applications in a Scottish context. An analysis of the Mela's changing organization and artistic programme over time reveals the coexistence of multiple conceptions of multiculturalism—in time, space and experience. This progressive reinterpretation of multiculturalism—as multiple—advances the goals of both cultural diversity and societal cohesiveness.     

上海世博会与工业遗产博物馆

20世纪六七十年代,西方国家掀起工业遗产的保护运动,兴建了各类工业遗产博物馆,并在保护实践中探索出有效的保护方法。上海世博会园区建设中,上海世博局对工业遗产保护确定了三级分类原则并进行了有效保护,确立了改造再利用的方案以及世博会后将部分展馆转为博物馆的规划,这将对上海的博物馆事业发展起到巨大的推动作用。     

Global Value Chains,Industrial Policy and Economic Upgrading in Ethiopia's Apparel Sector

This article examines whether low-income countries can still benefit from participating in manufacturing global value chains (GVCs) in terms of broader industrial development in a global context of greater competition and higher requirements. It contends that developing internationally competitive local firms and domestic linkages, in addition to upgrading, is crucial for participation in GVCs to drive industrialization. The study focuses on Ethiopia's recent experience with developing an apparel export industry through strategic industrial policy. Based on original empirical data collected through firm-level surveys and interviews with government officials, industry experts and buyers, the article analyses the upgrading and localization trajectories of foreign and local apparel-exporting firms. It argues that value-capture benefits in assembly positions in apparel GVCs have become more difficult. The potential for localization benefits depends on the type of global buyers and foreign producers and their levels of embeddedness, but whether this potential is realized also depends on local firm characteristics and related industrial policy. Ethiopia's industrial policy has been relatively successful regarding national economy linkages, but less successful in developing competitive local export firms due to a weak local manufacturing tradition combined with a global context that has led to a supplier squeeze.     

THE ONTOLOGY OF CAPITAL: ON THE SHARED METHODOLOGICAL LIMITS OF MODERNIZATION THEORY AND ITS CRITICS

This article argues that critical scholarship in historical studies has not overcome the methodological limits of modernization theory for failing to question the ontological principles that construct its object of analysis. I call these principles the “ontology of capital” and explicate them through Bourdieu's conceptualization of the field and capital. I argue that this ontology is established according to a distribution model in which social entities come into the analysis with the amount and value of the capital they hold. This model grasps all social relations in the form of competition, and actors and actions enter into the analysis only when they are involved in such relations. I then analyze Bernard Lewis's The Emergence of Modern Turkey, which is written explicitly from a modernization perspective, to show how the principles of the “ontology of capital” operate in this text. The analysis focuses on how sociohistorical facts are constructed through selection and articulation of empirical evidence that become meaningful only on the basis of this ontology. The aim of this analysis is to show the ontology of capital that constructs the object of analysis in Lewis's text rather than the Eurocentric, teleological, and elitist character of his analysis of history that critics in recent decades have addressed as problems of the modernization paradigm. Based on this, I argue that for a productive critical approach, relational analysis, which characterizes critical scholarship in contrast to essentialism, also has to consider the ontological principles in a historical work to overcome methodological limits. The failure to interrogate this ontology leads to an analytical separation in critical scholarship between the analysis of historical reality and of alternatives to this reality. This separation not only produces a dehistoricized analysis of the present from a critical perspective, but also turns the alternatives into utopian models.     

From regional innovation systems to local innovation systems: Evidence from Italian industrial districts

The theoretical concepts of industrial district and regional innovation system though closely related, capture different aspects of regional economic development. Given the “nestedness” of a system in other systems, one regional innovation system can support several districts. However, in some cases, districts may be considered as local innovation systems with independent innovation patterns. In fact, the socio-economic characters of industrial districts can be so specific that the region's size and institutional framework may be inadequate in fully describing their innovation processes. In the case of the Italian region of Lombardy, this “autonomous” local innovation system model proliferates.     

Density Dependent Dynamics in the Arezzo jewellery district (1947–2001): Focus on foundings

With this paper, the purpose is to test new theoretical and empirical tools to explain the deep changes that Italian industrial districts are experiencing. This issue is addressed by means of the evolutionist-multidisciplinary approach, and a mixture of qualitative and quantitative methodologies. Reliance is on the theoretical background of organizational ecology, and particularly on the theories of density-dependence. The focus of study is therefore: (a) the internal structure of district organization-forms and (b) their evolution, which means moving from a structural to a process-dynamic perspective. Drawing upon the seminal work of Hannan, Freeman and Carroll, their insights into the traditional conceptualization of Marshallian industrial districts as defined by Becattini are investigated. The paper analyses the evolution of the Arezzo jewellery industrial district according to the HEDRON methodology over the period 1947–2001 and investigates the firms' vital processes at a community level by grouping organizational populations into three multi-populations (complete-cycle, subcontractor, and trade and instrumental goods). The data used to reconstruct life histories was collected from the Firms Directory (Registro ditte) of the Arezzo Chamber of Commerce: in total, more than 34,000 records were considered, including 3610 foundings and 1618 failures.     

Industrial Archaeology: Its Place Within the Academic Discipline,the Public Realm and the Heritage Industry

Abstract

This paper presents a review of industrial archaeology literature and offers some initial thoughts on how this literature relates to my research on public perception and experience of Cornish mining landscapes. A brief summary of the development of industrial archaeology is given, which reflects on its amateur origins, its 'identity crisis' and its slow integration into university archaeology departments. The reasons for the transformation of industrial sites into industrial heritage is then examined and temporal models of change presented which relate to both an acceleration of the past into the commodity heritage as well as an affective progression from disdain to acceptance. The public's attitude to industrial archaeology is then discussed — which raises complex questions over the nature of such sites including, the importance of time and aesthetics as well as the phenomenological nature of perception and experience.     

The Evolution of India's Industrial Labour Share and its Correlates

There has been substantial recent interest in the decline of labour shares across many countries. For the most part, attention has been focused on developed countries. This article examines the evolution of India's labour share in its formal industrial sector from 1983 to 2016. Using two datasets corresponding to sectoral aggregate data and plant-level data respectively, the authors document a secular decline in the labour share across all sectors from 1983, with a stabilization at very low levels (around 8 to 10 per cent) starting around 2007. The plant-level data are used to identify correlates that illuminate reasons for the overall decline in the labour share. The authors find strong evidence to support multiple causes, including increased capital intensity, greater informalization, greater privatization, and productivity increases in larger firms; they therefore suggest that the declines in labour share experienced are due to a composite set of factors. Conversely, other potential explanations (such as regional variation in the labour share) have less explanatory power.     

Profitability or Industrial Relations: What Explains Manufacturing Performance across Indian States?

This article begins with a critique of the well-known claim by Besley and Burgess concerning the negative impact of labour regulation on organized sector manufacturing performance in India. In the second part of the article, the authors use a state-level panel data set for the period 1969–2005 to analyse the relative importance of profitability (rate of profit as a percentage of the total replacement cost of capital stock) and industrial disputes (man-days lost to all industrial disputes as a percentage of total workers employed) to explain cross-state variations of manufacturing performance in India's organized sector. Using three different measures of manufacturing performance — net value added, investment and employment — they find that profitability is more significant than industrial disputes in explaining the variation of manufacturing sector performance across Indian states. The findings presented here therefore question the uncritical acceptance of Besley and Burgess's results in the literature on labour regulation.     

Italian Industrial Districts: An Industrial Economics Interpretation

The Italian debate on industrial districts suggests that local development can be based on small and medium-sized firms, provided they work in teams and are embedded in a local system of social relations. If the availability of local public goods complements the private supply of local specialized services and goods, Marshallian external economies are engendered. When inner social and economic relations boost the supply of local public goods, and are reproduced by the consistent economic behaviour of local (economic and political) agents, they become local factors of economic development, or, in other words, the district's social capital. These propositions are considered within a three-layered framework comprising structure, conduct and performance. The relations among these levels allow joint consideration of three different processes of economic selection: competitive, strategic, evolutionary. This complexity is necessary if the conditions that foster significant Marshallian external economies are to be represented correctly.     

The Ins and Outs of Iranian Industrial Resilience under Sanctions

This paper draws on export data from four of Iran’s key trade partners—the European Union, China, the United Arab Emirates (UAE), and Turkey—to examine the robust and positive correlations between the export of parts and machinery to Iran and Iran’s industrial output, as measured by production index data published by the Central Bank of Iran for industrial enterprises with over 100 employees. The period of analysis is 2000 to 2017. It may seem intuitive that the output of Iranian manufacturers depends on the ability of companies to source intermediate goods such as parts and machinery. However, the imposition of sanctions on Iran is shown to have temporarily decoupled the relationship between European industrial exports to Iran and the Iranian industrial production index—the index remained stable even as European exports fell. An analysis of trade data for the other three trade partners included in this study quantitatively substantiates reports noting that in order to sustain the industrial production index, Iran engaged in processes that can be collectively described as “import reflection.” This entails substituting European intermediate inputs with Chinese inputs while also circumventing sanctions pressures on trade by sourcing European inputs via re‐export from the UAE and Turkey. These processes were fundamental to Iran’s economic resilience in the face of multilateral sanctions and have played a central role in Iran’s defense of its industrialized economy and particularly its non‐oil exports as the administration of US President Donald Trump pursues a new unilateral campaign of “maximum pressure” sanctions.