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.     

Environmental Regulations and Multinational Corporations' Foreign Market Entry Investments

In this study, we examine how differences in environmental regulation characteristics are linked to multinational corporations' (MNCs) foreign market entry (FME) investments decisions around the world. We rely on a data set with 29,303 observations from 94 European Fortune Global 500 companies operating across 77 countries during the period 2001–2007. We found that MNCs are more likely to enter countries with more certain—i.e., clearer and more stable—environmental regulations than those of their home countries. Results also suggest that there is a higher level of MNC entry into foreign countries with environmental regulations that are more stringent than those of their home countries. This finding challenges the controversial but commonly held view that more stringent environmental regulations deter MNCs' FME investments. Notably, the magnitude of the regulatory certainty relationship with MNCs' FME investments is larger than that of regulatory stringency. Findings also indicate that the increased tendency of MNCs to enter countries with more stringent environmental regulations is higher in more democratic countries and for cleaner industry firms.     

THE POLITICAL TRADE‐OFF BETWEEN ENVIRONMENTAL STRINGENCY AND ECONOMIC DEVELOPMENT IN RURAL AMERICA*

ABSTRACT We examine the impact of the political trade‐off between rural economic development and environmental quality on the determination of environmental regulations in the U.S. intensive livestock industry. The political economy model, adapted from Fredriksson (1997) , is tested empirically, using state‐level data on environmental regulation of the U.S. livestock sector. We find that state governments respond to greater potential for water pollution with more stringent environmental regulations. Consistent with our political economy model, we also find that states with lower recent growth in per capita income implement less stringent environmental regulations.     

Environmental Regulations and New Plant Location Decisions: Evidence from a Meta-Analysis

Stricter environmental regulations are often opposed on the grounds that they will alter equilibrium capital flows. Empirical evidence in this area remains largely unresolved, mainly due to the quite disparate results found in the literature. This paper takes a positive look at the relationship between new manufacturing plant location decisions and environmental regulations by examining data from 11 studies that provide more than 365 observations. One major result from our meta-analysis is that methodological considerations play a critical role in shaping the body of received estimates. Our empirical estimates also lend insights into future research that is necessary before any robust conclusions can be made regarding the effects of environmental regulations on capital flows.     

NAFTA's Impact on Business Environmental Decision Making

Signing the North American Free Trade Agreement (NAFTA) liberalized trade policy and reduced tariffs between Mexico, the United States, and Canada, but activists opposed to the treaty predicted an environmental disaster. This article seeks to analyze the dynamics of environmental spending and changes in companies' profiles following NAFTA. Our results suggest that these predictions have not come true. Through an econometric model, we explore how 2,438 industries in the 1994–2002 period made environmental decisions and how much they spent on cleanup. Estimates were made with a dynamic panel model using the generalized method of moments (GMM) method. Our results suggest that environmental investment decisions depended on business size, their technological capabilities, sales performance, and the need to comply with the standards required by customers in the international market. The last section explores policies to improve compliance with Mexico's environmental regulations and to develop sustainable, eco‐friendly manufacturing.     

Multiple environments: South Indian children’s environmental subjectivities in formation

This article explores the formation of South Indian children’s (11–15 years old) environmental subjectivities based on five months of qualitative fieldwork with children in their school and non-school lives. By doing so, this paper aims to widen the scope of the existing literature on children’s environmental subjectivities, which so far focused on separate aspects of children’s lives such as environmental education, social relations or children’s life courses. To do so, I use [Bourdieu, P. 1990. The Logic of Practice. Cambridge, UK: Polity Press] concepts of field, habitus and cultural capital along with a non-teleological notion of environmental subjectivity and insights from wider geographical literature on the formation of subjectivities. The paper shows how children’s environmental subjectivities are constituted by and partially constitute the material environments and fields in which children live, their cultural capital and habitus, their movements through their life course and their environments and a wide range of practices through which children experience their environments.     

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.     

Work,Poverty and Modernity in Mayhew's London

Mayhew's understanding of work in London has not been considered a great success. His accounts of workers were sentimental and erratic and his ambivalence to political economy prevented him from fully understanding the relationship between work and poverty. As the century progressed, it was Marx and Booth who provided systematic and sustained studies of the labour question. However, as this article argues, the circulation of facts, moral judgements and guesswork that filled the pages of London Labour and the London Poor offers a fair representation of a metropolitan manufacturing economy that was characterized by uncertainty, speculation and shifting boundaries of capital and labour. In particular, Mayhew's demonization of small masters, the working poor who set up as independent producers and whom he blamed for over-competition, drew out a contradiction in contemporary understandings of capitalism: large-scale capital and well-organized labour were seen as progressive and modern but small businesses were flexible and adaptable and were for many the only hope of escaping poverty and breaking out of the ranks of labour. As such, it is Mayhew rather than Marx or Booth that best exposes the tensions between the aspirations of the working poor and the paradigms of social investigators that insisted on distinguishing capital from labour.     

The Impact of Public Capital Stock on Regional Convergence in Turkey

The effect of public capital on regional output and private sector productivity has been the subject of considerable research in the field of regional development literature. However, there have been only a few studies that develop linkages between public capital and regional economic convergence. This study examines the dynamic effects of public capital and transportation capital stocks on output per capita in terms of regional convergence in Turkey at NUTS 2 level. A conditional convergence model based on per capita gross domestic product and per capita public capital and transportation capital stocks is estimated using the panel data set for the Turkish regions for the time period of 1980–2001. The results reveal that public capital has a positive and significant effect on output per capita and thus on regional convergence in some of the models in the Turkish regions,. However, the transportation component of public capital stock has a negative effect on regional convergence in all models employed in the study. This implies that transportation capital stock leads to larger regional disparities between the Turkish regions.     

Author response: between liberty and discipline

Abstract

Most accounts of the microelectronics revolution have emphasized the role of military patronage and procurement in the shaping of silicon technology and the consolidation of the semiconductor industry. Little attention has been devoted, however, to the silicon industry's shift from military to commercial markets in the early and mid‐1960s. Drawing on an examination of Fairchild Semiconductor, the firm that initiated this shift, this essay argues that the silicon industry's expansion into non‐military markets was indissociable from deep changes in manufacturing, organizational structures as well as component and system technologies. Special attention is devoted to the ways in which Fairchild created a user base for its products in the computer and consumer electronics industries by hiring engineers from these sectors and encouraging them to design components as well as applications for the firm's potential customers. This article also examines how Fairchild introduced mass production techniques from the automotive and electrical industries, delocalized its assembly operations to South‐East Asia, and developed new packaging techniques to meet the cost and manufacturing requirements of commercial users. This article is intended to contribute to recent interest in the role of user ‐ supplier relations in technological change and, more specifically, to the question of the pervasive use of silicon components across a wide range of industrial sectors, a central phenomenon in the history of industrialized economies since the 1960s.     

Capital Shares: The Way Back into the With of Christianity

Abstract

In the ten years since the publication of Michael Hardt's and Antonio Negri's Empire, the relationship between Christianity and global capital has received increasing theological attention among the adherents, critics, sympathizersssa, and apostates of Radical Orthodoxy. At stake in this conversation is the possibility that Christianity might provide a universal ontology sufficient to ground a counter-hegemonic, specifically socialist, praxis. One question that many of these authors rarely address, however, is the extent to which Christian universalism has been responsible for the emergence of global capital in the first place. This article will address this profound split at the heart of a tradition; that is, Christianity's culpability for and resistance to global capital. To this end, "Capital Shares" sketches the aporia of Christianity's relation to Empire and then appeals to Jean-Luc Nancy's "deconstruction of Christianity"; in particular, his attempt to find "a source of Christianity, more original than Christianity itself, that might provoke another possibility to arise."     

NATIONALIZING HISTORY AND THE CHALLENGE OF DISCORDANT TEMPORALITIES1

Christopher Hill's National History and the World of Nations reminds us of the conjunctural moment of an emerging world market in the latter half of the nineteenth century and the promise it offered for vitalizing a “world history” yet to be written. More importantly, it supplies the silhouette of a radically different interpretive approach, formed by the force of a centrifugal perspective that—through its concentration on how France, the United States, and Japan were simultaneously motivated to construct representations of self‐identity in national narratives—converged to disclose the possibility of a wider world no longer held hostage to the geopolitical category of the “West.” Hill's account shows that the impulse behind the formation of national history employed different strategies to imagine a singular linear historical narrative of national identity that aimed both to remove the spectacle of coexisting, different, multiple temporalities and to weld large and regionally disparate populations into a single people who, in a new time, would be instructed to recognize themselves in the nation's story. In Hill's reckoning, national history in France, the United States, and Japan appears simply as another name for historical necessity that sought, through processes of naturalization and nationalization, to overcome the unstable and uneven relationship between state and capital but that failed to conceal the deeper reality of determinations demanded by the relations of capital at the local and international levels.     

From the ‘spirit of capital’ to the “spirit” of capitalism: The transition in German economic thought between Lujo Brentano and Max Weber

I dedicate this essay to the memory of the late Wolfgang Mommsen—the subject would have been congenial to him. It is one of a series of offshoots from a central project: a scholarly edition of Max Weber's Protestant Ethic with commentary. When I first told Prof. Mommsen of my plan in 1994 he looked me full in the face and gave a characteristic growl: “All that work!” Here was a man who knew what he was about. My thanks to Ross McKibbin and Keith Tribe for reading this paper in draft.

The article begins by examining Max Weber's relations with Lujo Brentano, much the most important “precursor” to Weber in the field of economics. In particular, Brentano conducted a form of parallel inquiry into the rise of ‘the spirit of capital’ in England 35 years before Weber looked for the origins of “spirit” of capitalism there, and the contrast between these two ideas casts much light both on Brentano and on Weber's Protestant Ethic. This personal history leads into a broader history of the transition in German economic thought between the 1860s – the formative decade for Brentano but also the era of Marx's Capital – and that of Weber's generation coming to maturity c.1890. Marx and Weber remain the two great canonical thinkers and original minds; but any authentic historical comparison between Marx and Weber must take in Brentano. The essence of the contrast between the generations is that between Weber's novel conception of an ethical ‘capitalism’, and the materialism and naturalism underpinning Brentano's and Marx's ‘capital’, although Weber and Brentano are alike as liberals, democrats and bourgeois.     

DOES EMPLOYING UNDOCUMENTED WORKERS GIVE FIRMS A COMPETITIVE ADVANTAGE?*

ABSTRACT Using administrative data from the state of Georgia, this paper finds that, on average, across all firms, employing undocumented workers reduces a firm's hazard of exit by 19 percent. The advantage to firms from employing undocumented workers increases as more firms in the industry do so, decreases with the skill level of the firm's workers, increases with the breadth of a firm's market, and increases with the labor intensity of the firm's production process.     

Geographies of Power in Nazarbayev's Astana

An American geographer examines the recent move of Kazakhstan's capital from Almaty to Astana, focusing in particular on the links between the move and the development of official nationalism in the era of Nursultan Nazarbayev's post-communist governance. The capital move is discussed within a wider theoretical framework to highlight the unique role that the national capital plays in the nationalist imagination. The paper also highlights interesting features of the new capital's physical layout as well as changes in its ethnic composition due to migration patterns following the relocation. Journal of Economic Literature, Classification Numbers: H10, H82, J61, O18. 2 figures, 2 tables, 49 references.     

Semi‐Authoritarian Incorporation and Autocratic Militarism in Turkey

This article argues that, since the early 1980s, there have been two regimes in Turkey. The first, which is broadly akin to Michael Mann's characterization of Semi‐Authoritarian Incorporation, has predominated in areas of the country not administered through emergency legislation. In keeping with his model, it has been most fully asserted in areas of key economic value — particularly the Marmara region and the environs of the capital, Ankara. In the thirteen predominantly Kurdish provinces of the south‐east of the country, on the other hand, a second of Mann's regime types, Autocratic Militarism, is discernible. This was institutionalized under a new constitutional structure introduced following the 1980 coup as a means of dealing with a rise in pro‐Kurdish insurgency.     

Contesting the capital of culture in Antonio Muñoz Molina's Los misterios de Madrid

This essay examines Antonio Muñoz Molina´s use of the Gothic mode and the misterio genre to destabilize Madrid's image as a politicized symbol of cultural modernity in his 1992 novel Los misterios de Madrid. The novel was a return to the form and function of the nineteenth-century urban mystery novel. The year 1992 was one of celebrations throughout Spain, and Madrid was designated the 1992 European Capital of Culture (ECOC). The ECOC title was meant to signal Spain's graduation to democratic modernity and its new identity as a European capital. Madrid of Muñoz Molina contests this politicization of Madrid´s identity by gothicizing the capital. This Madrid is enigmatic and threatening, and it is the home of the conspiracies that undermine the capital's new image. In a year that celebrated Madrid's entree into European modernity, Muñoz Molina uses nineteenth-century literary modes to question Madrid's success story.     

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.     

Reassessing Human Geography in the Wake of China's Rise

A prominent human geographer, introducing a series of papers in a Eurasian Geography and Economics mini-symposium devoted to China's emergence, surveys the myriad global impacts of that country's rapid recent rise. The topics covered include the economic (i.e., rapid growth in the size of China's economy, preeminence as an exporter of manufactured goods, and role as a major natural resource consumer, overseas investor, and purchaser of U.S. debt obligations), the geopolitical (increasing involvement in international organizations, rising assertiveness in defense of territorial claims), and the environmental (e.g., carbon footprint, accelerated urbanization, dam building), as well as the implications of China's rise for the study of geography and development. He argues that assessment of the consequences of the country's emergence should not be based on simple extrapolation of present trends, but must take into account a number of looming questions relating to the competitiveness of China's manufacturing labor force (vis-à-vis other developing countries), capacity to innovate (as well as imitate), and transformative societal impacts of modernization and development.     

Reinhold Niebuhr and the US War on Terror: A Response to Dr Gilkey

Abstract

Building upon Langdon Gilkey's reflection on Reinhold Niebuhr's Moral Man and Immoral Society, this article examines Niebuhr's enduring contribution in relation to two pressing international concerns: religious terrorism and the US War on Terror. As these two issues are characterized by their suppression of reason, I argue that Niebuhr's critical understanding of reason, a human rational capacity to consider interests other than one's own, offers an important resource in rectifying the disorder created by the two issues. Despite his stringent critique of a liberal idealistic view of reason, Niebuhr refused to completely deny the value of reason; although reason is always tainted by sin, it is not entirely ineffectual. This critical notion of reason is a necessary antidote to the unilateralism of the Bush administration and religious fundamentalism which altogether reject a dialogical, reflective value of reason. In an increasingly interdependent global society, a critical use of reason is indispensable for the achievement of global peace and justice.