Labour Relations and the Transfer of Knowledge in Industrial Clusters: Why do Skilled Workers Share Knowledge with Colleagues in Other Firms?

Industrial clusters are held to offer competitive advantages to firms that accrue from the transfer of tacit knowledge between skilled workers co-located in spatially bound regions. This paper argues that informal knowledge transfers between skilled employees working in spatially bounded industrial clusters might have an association with the labour relationship between employers and employees. In the literature on industrial clusters general knowledge is readily traded through codified texts and collegial networks but high value, tacit knowledge transfers occur less frequently but are critical to the success of firms located in clusters. Tacit knowledge transfers are held to occur when workers move to other firms because of firm death or poaching but less frequently through contacts between colleagues from other firms. Industrial clusters are said to offer labour market advantages for skilled workers in the form of ample job opportunities and rising wages, which engender firm loyalty and discourage the transfer of tacit knowledge of competitive value to other firms. However, the limited empirical evidence available on actual working conditions for skilled workers in regional industrial clusters indicates that this argument is contestable. Some evidence suggests that there are limited wage premiums accruing to the industrial districts, a limited role for geographic proximity, and weak localised returns on seniority and education. We argue that in such circumstances high value knowledge between workers in different firms might be traded as an act of epistemic solidarity or sociability that disregards the interests of employer organisations. Such actions might vary by region and country in relation to the prevailing system of labour relations. Australian labour relations are offered as a case in point.     

Branded cities: outdoor advertising,urban governance,and the outdoor media landscape

Abstract: In many cities both rich and poor, new forms of outdoor advertising are emerging with potentially significant implications for the nature of the urban public realm. Public–private partnerships for advertising‐funded provision of basic items of urban infrastructure such as bus shelters, street signs and public telephones have grown as a result of structural changes in the advertising industry and shifts towards neoliberal forms of urban governance. This article critically interrogates the implications of these new outdoor advertising arrangements for the urban public realm, and argues that they have potentially harmful consequences for the accessibility and diversity of the outdoor media landscape. It then proposes three strategies for the democratisation of that landscape. These strategies are not premised on an outright rejection of outdoor advertising, but rather seek to contest the monopolistic capture of outdoor media by public–private partnerships involving urban authorities and outdoor advertising companies.     

The Resilience of Clusters in the Context of Increasing Globalization: The Basque Wind Energy Value Chain

In this paper, we study how globalization impacts on the structure and governance patterns of value chains and on the resilience of local clusters. We study the value chains related to two Basque (Spain) companies in the wind energy industry, Iberdrola and Gamesa, and the local cluster to which they belong. We find that firms within the cluster have different types of relationships with lead companies depending on their competences and the complexity of their products. As a consequence, firms also present different potential for growth and/or resilience: some have the capacity to internationalize their operations and/or shift to the offshore wind market, others are vulnerable to competition from providers in the emerging countries. Against this context, we discuss how the cluster responds to these challenges and the role of policy.     

The Re-emergence of a Media Industry Cluster in Leipzig

This paper begins with the proposition that an analysis of the potentialities of industrial networks has to consider the wider context of the social organization of production. Recent work on industrial clustering has shown that successful clusters are embedded in tight networks of social relations between suppliers, producers, customers and institutions. Localized capabilities, such as specialized resources and skills, conventions and other local institutional structures, provide the basis for inter-firm cooperation. Based on Malmberg and Maskell's (2001) conceptualization of localized industrial clusters, I discuss the horizontal, vertical and institutional cluster dimensions as a basis for empirical analysis. In addition, attention will be drawn to the external dimension and power relations of a cluster which have a strong impact on its growth trajectory. This conceptualization is used as a basis for studying the new Leipzig media industry cluster. Leipzig, which is located in the Neue Länder (States of the former German Democratic Republic), has traditionally been a major centre of industrial production in Germany. After the German unification, a significant proportion of Leipzig's manufacturing activities were terminated or downsized. Interestingly, a new media cluster has developed during the 1990s, driven by the activities of the MDR (Middle German Television and Broadcasting Service). This has stimulated substantial start-up activities in branches of the media industry, such as film/TV production, new electronic services/interactive media, graphics/design, PR/marketing and media-related hardware/software. Being virtually the only sector which has grown in recent years, the media sector has stabilized the local economy. In this paper, I investigate those forces which have supported start-up and location decisions of media firms and the role of local institutions and policy programmes in the clustering process.     

Small Businesses Need Strong Mediators: Mitigating the Disadvantages of Peripheral Localization Through Alliance Formation

This paper investigates how small entrepreneurial firms in two peripheral regions developed by entering the oil and gas industry. The paper draws on previous studies related to the establishment of strategic alliances and emerging clusters and contributes to these research streams by examining the disadvantages of peripheral localization and small firm size. We use a longitudinal case study based on primary data consisting of 54 in-depth interviews conducted between 2007 and 2012 to illustrate that when large-scale oil and gas projects enter a peripheral region, oil companies can moderate local firms' disadvantages related to peripheral localization by actively facilitating relationships with established national firms. By facilitating such relationships and maintaining an active moderating role, strategic alliances and emerging cluster structures can arise. A cross-case analysis illustrates that the oil company had a decisive role in one of the two cases in two dimensions: its role as intermediary between local firms and national firms and its role in fostering the development of an emerging cluster structure by stimulating the establishment of new firms through the oil and gas project. In the second case, the oil company was unable to facilitate regional development.     

A novel typology of media clusters

Is the clustering of audio-visual companies in London’s Soho really the same as the clustering of Berlin’s new media industry? The media cluster approach has gained a lot of attention not only in academia, but also in political discourse. But, as appealing as the media cluster concept is, one of the most fundamental issues is the comparability of the phenomenon. This article tackles this issue and an analysis of 43 case studies has been conducted. The case studies have been grouped to find a new typology for media clusters. The research revealed six different types: The Creative Region, the Giant Anchor, the Specialized Area, the Attracting Enabler, the Real Estate and the Pooling Initiative. The typologies showed that they distinguish especially in their geographical scale and specialization in media activities, while at the same time cluster types can be found in the same area. They are driven by four rationales: agglomeration, urbanization, localization economies and artificial formation.     

Sub-regional specialization in the Lancashire cotton industry, 1884–1914: a study in organizational and locational change

Locational changes in the Lancashire cotton industry between 1884 and 1914 are re-examined. The concentration of cotton spinning in central and southeast Lancashire and the consolidation of weaving in the northern half of the textile region were caused not only by differential rates of growth in the two sectors but also by the decline of the sub-regionally weaker sector. Single factors such as technological innovation and spatial variations in labour costs are insufficient to account for the deepening segregation of spinning and weaving. Different methods of capital formation led to important changes in the organization of the two sectors. New specialized spinning mills were built by large limited companies in southeast Lancashire whilst in northeast Lancashire a multitude of weaving firms were formed by private entrepreneurs. Throughout the region combined mills declined both relatively and absolutely, but they survived longest in peripheral areas away from the leading centres of expansion and innovation. Divergent processes of sub-regional specialization were related to different labour requirements in the spinning and weaving sectors.     

BRAIN CIRCULATION AND FLEXIBLE ADJUSTMENT: LABOUR MOBILITY AS A CLUSTER ADVANTAGE

This article explores the role of labour mobility as a potential cluster advantage. We review the theoretical arguments as for how and why labour mobility could enhance the dynamism and performance of clusters of similar and related firms. A combination of quantitative and qualitative data from two information and communication technology (ICT) clusters is used to answer two research questions: (1) What is the role of mobility enhancing (or restricting) institutions in clusters? and (2) In what ways does labour mobility contribute to knowledge transfer within clusters? The two ICT clusters studied in the article generally seem to have higher levels of mobility, compared to the labour market at large. Although it is regarded as beneficial in theory, most cluster firms try to restrict mobility of workers since they fear the risk and costs of losing staff. Labour mobility is also rarely viewed as a viable way to increase the knowledge bases or contact networks of firms. However, when firms need to recruit the clustered labour markets seem to benefit them by facilitating the use of informal recruitment processes. By way of conclusion it is suggested that cluster firms might be under‐investing in mobility and that innovative institutional solutions could help realize clusters' mobility potential.     

FOREIGN DIRECT INVESTMENT,INSTITUTIONAL CONTEXT AND THE CHANGING POLISH PIG INDUSTRY

The world's meat market has had tremendous growth in the past decades. Global meat producers, particularly in developed economies, have grown bigger through expansion, mergers and acquisitions. The livestock markets in less developed countries are particularly the prime targets for investments by these producers. This article looks at foreign direct investment in a transitional economy, using Poland's pig industry as the empirical case study. It argues that such investments not only bring significant changes in the method of producing meat in the host country; they also have particular socio‐political impacts and have thus been met with some level of resistance by local communities. Our study suggests that the relations of foreign firms to the local community are crucial for their long term presence; and these relations are in turn dependent on a gamut of place specific features and the firms' broader corporate philosophy and strategy. In general, foreign firms need to find ways to replicate the kinds of deep social‐economic links between the livestock industry and places that existed in the socialist era. The case studies of American‐owned Agri Plus and Danish‐owned Poldanor illustrate some of the difficulties involved in the foreign investment in the meat industries while demonstrating the viability and possibility of such companies becoming more accepted and welcomed in the local communities.     

Scottish emigration in the 1980s: a migration channels approach to the study of skilled international migration

"British emigration is now dominated by skilled transient movements rather than traditional settler emigration movements. This switch requires new frameworks for migration analysis. A migration channels approach is advocated with attention focused on the roles of the internal labour markets of multi-national companies, international recruitment agencies and international skill transfers by small- and intermediate-sized companies in moulding contemporary skilled migration. The migration processes which have emerged in relation to the operation of these three channels can be differentiated in terms of migrant characteristics, the status of migration contracts and patterns of movement. The regional dimension is highlighted in this article by contrasting the experience of recent Scottish emigration with that of the South-East of England. Three data sources (the International Passenger Survey, the results of a survey questionnaire, and company case study material) are employed to illustrate the nature of Britain's main migration channels. It is argued that the three channels are responsible for a selective structuring of the British migration system."     

Strategic Considerations for Innovation and Commercialization in the US Biotechnology Sector

This paper examines the importance of alliances as an innovation strategy utilized by US biotechnology firms. In doing so, the role of alliances with universities vis-à-vis alliances with industrial companies is emphasized. The biotechnology sector is dominated by few large and many small firms. The small firms are research focused or technology developers. Several large firms are now integrated biopharmaceutical companies. Very few small firms can survive without strengthening their relationships with universities, biotechnology or pharmaceutical or other large companies. These relationships range from licensing agreements, export–import connections to various forms of alliances for R&D, product development and marketing. Large firms supplement in-house R&D by acquiring research products and/or new technologies from small firms as well as universities. A survey of US biotechnology companies is used to show the emergence of alliance relationships, which continue to highlight university linkages, emphasize connections of biotechnology firms with other biotechnology entrepreneurs, and an ongoing effort to build a synergistic relationship with pharmaceutical or other large companies. Most linkages are not confined to the local area; the main locational attribute is the science base or the labour market.     

Mining Boom,Labour Market Segmentation and Social Inequality in the Congolese Copperbelt

The study of the impacts of new mining projects in Africa is generally set in a normative debate about their possible contribution to development, which leads to a representation of African societies as divided between beneficiaries and victims of foreign investments. Based on research in the Congolese copperbelt, this article aims to examine in more detail the inequalities generated by the recent mining boom by taking the processes of labour market segmentation as a starting point. It shows that the labour market in the mining sector has progressively been organized along three intersecting lines that divide it: the first is between employment in industrial and artisanal mining companies, the second is between jobs for mining or subcontracting companies and the third is between jobs for expatriates, Congolese skilled workers and local unskilled workers. Far from simply reflecting existing social inequalities, the labour market has been actively involved in their creation, and its control has caused growing tensions in the Congolese copperbelt region. Although largely neglected in the literature on extractive industries, processes of labour market segmentation are key to making sense of the impacts of mining investments on the shape of societies in the global South.     

Evolution of Knowledge Intensive Services in a High-tech Region: The Case of Hsinchu,Taiwan

Communication costs have reduced markedly owing to improvements in communication technology. Despite this development, face-to-face interactions facilitated by geographic agglomeration remain important in high-tech innovation activities owing to the ambiguity and uncertainty related to new knowledge. Consequently, location remains a major influence on global strategies of transnational companies, and enables global cross-border divisions of labour in high-tech industries. On the one hand, this phenomenon transforms the geographic distribution and structure in industry; on the other hand, it creates demand for strategic functions in management and organizational innovation. The emergence, introduction and operation of such functions all rely on the support of specialized service industries. During the two decades of development of the Hsinchu Science-based Industrial Park (HSIP), the area around HSIP saw the gradual formation of a distinctive and strong network including production, incubation and research and development (R&D) activities. Within this network, knowledge intensive services provide a crucial interface between the supportive environment and technological infrastructure. This investigation analyses the interactions, geographic transformation and distribution between HSIP firms and producer services around HSIP, as well as the coordination between HSIP firms and research institutions. This investigation found that competition strongly influences the development and geographic transformation of producer services. Together with different industrial resources, they formed production networks. Such networks caused the development and geographic transformation of the Hsinchu area, and thus further influenced the growth of knowledge-intensive service businesses.     

Industrial Warriors: South Korea’s First Generation of Industrial Workers in Post-Developmental Korea

This study analyses the skills upgrading programmes of South Korea’s first generation of skilled workers, focusing on their political and social trajectories from bulwarks of the developmental regimes up until 1987, to a “labour aristocracy” of regular workers employed mainly in large companies in heavy industries in South Korea. The term “labour aristocracy” highlights how the “regular workers”, employed mostly in monopolistic large enterprises in heavy industries, have better wages, job security and other social benefits than “non-regular workers” and other regular workers employed in small and medium companies. It argues that these “Industrial Warriors” were the product of the Korean developmental state’s creation of an egalitarian social contract, and that the political and social trajectories since then must be seen in its totality. This is necessary because it manifests the profound change in Korea’s political economy from state-grassroots synergistic developmentalism to neoliberal industrial capitalism, wherein having a regular job has become a substantial asset in an era of non-regular employment. This study contributes to the literature on the political economy and to sociological discussion of the Korean developmental state that continues to this day and is far from over.     

Gender,Contracts and Wage Work: Agricultural Restructuring in Brazil's São Francisco Valley

Brazil?s São Francisco Valley provides an example of the ways in which agro-food firms are attempting to mobilize and control labour as they expand production of fruits and vegetables for domestic and global markets. In crops where cost reduction is a primary concern, firms choose highly ‘flexible’ forms of labour mobilization, drawing on the casual labour of migrants from the Brazilian Northeast. In crops where the quality and timing of produce are of great importance, firms use either subcontracting arrangements that mobilize family labour, or the labour of local women and children. In this way, firms involved in the production of fruits and vegetables show many similarities to their counterparts in certain branches of industry: they are actively experimenting with labour arrangements that tap the most vulnerable segments of the international workforce, and that appropriate unpaid family labour.     

Multi-level Science Policy and Regional Innovation: The Case of the Munich Cluster for Pharmaceutical Biotechnology

Knowledge-based industries tend to develop within regional or local clusters that allow for knowledge spillovers, the generation of a critical mass of complementary competencies and skills as for spatial proximity to academic organizations out of which many highly innovative firms have been founded. The prototype of that development certainly is the biotechnology industry which has emerged since the 1970s first in the US where especially small and medium-sized research companies have been established around leading science bases. Following the example of the US biotechnology industry, public policies in many industrialized countries aimed at stimulating cluster formation in biotechnology. This holds true especially for member states of the European Union (EU) where public policy initiatives have been initiated at different territorial levels. This article refers to the Munich pharmaceutical biotechnology cluster and applies institutional and organizational indicators that have been developed in various systemic analyses of technological development and innovation. It will be shown that reforms of the institutional environment in which the innovative organizations are embedded were crucial for the commercialization of biotechnological research in Germany. These reforms have occurred mostly at the regional and national level, whereas the EU played a role especially in establishing the regulatory framework for the biotechnology industry. Organizational indicators will be applied in order to assess the modes of knowledge production within the cluster.     

Adaptation in cultural industry under conservation pressure: case study of two Chinese embroidery clusters

Abstract

In this study, we explore how tension between ‘culture’ and ‘industry’ can be effectively dealt with in promoting cultural industry, taking the Chinese embroidery sector as an example. The diverging performance of two leading centers of Chinese embroidery production suggests that local adaptive and networking capabilities are essential in creating a new path out of the tension, and these capabilities are largely determined by local openness/flexibility, entrepreneurship, and linkage capacity. In Changsha, cultural conservatism prevails, and the local embroidery sector largely maintains traditional product styles and target customers, sticking to the historic path. It is in question, however, whether such a strong bias toward the high-culture segment of the industry is good for cultural heritage protection in the long run, given that the industry at standstill has faced increasing challenges in sustaining a solid local pool of skilled labor. In contrast, Suzhou’s local embroidery sector has actively responded to the changing market environment, through increased product segmentation and customization as well as intra/cross-industry collaboration. Such a flexible, scale-up strategy has helped the industry attract local talent and meet the market demand, while maintaining space for high-end artistic products.     

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.     

Labour Market Dynamics in Resource Dependent Regions: an Examination of the Western Australian Goldfields

Labour shortages have become an increasingly significant barrier to economic development in regional Australia. Many firms and government agencies are operating below capacity as a result of their inability to fill jobs. In the mineral resources sector, this has been compounded by rapidly rising demand for commodities and the very remote locations of many mine sites. This paper explores the dynamics of labour shortages in the minerals sector of the Western Australian Goldfields. It demonstrates close linkages between commodity price, labour supply and demand, and resource output. Against the background of a state-wide ‘resources boom’, the paper also points to an increase in intra- and inter- regional competition for labour.     

A world geography of global media cities

This is an empirical study that analyses the geography of 33 global media firms through their locations in 284 cities across the world. The analyses are set within the world cities literature and a methodology is used that searches out city networks from data on firms to define ‘global media cities’. Resulting definitions of network connectivities allow comparisons to be made with more familiar world city network results on global service centres. The relative importance of media industries in European cities is highlighted. The main analysis uses a principal components model to discover global media fields centred upon specific articulator cities, notably New York, Los Angeles, Munich, Berlin, London and Paris. It is concluded that there is a geographical logic to the growth of large media companies.