International Trade Fairs and Global Buzz,Part I: Ecology of Global Buzz

This paper investigates the importance of temporary face-to-face (F2F) contact and the physical co-presence of global communities in establishing a particular information and communication ecology during international trade fairs, referred to as “global buzz”. International trade fairs bring together agents from all over the world and create temporary spaces for presentation and interaction. Within a specific institutional setting, participants not only acquire knowledge through F2F communication with other agents, but also obtain information by observing and systematically monitoring other participants. The fact that firms do not necessarily have to be in direct contact with a specific source of information to get access to this knowledge makes participation in these events extremely valuable. International trade fairs have become important expressions of new geographies of circulation through which knowledge is created and exchanged at a distance. This paper analyses the constituting components of global buzz and aims to dismantle the complexity of this phenomenon in a multi-dimensional way. When applying this concept to Internet trade fairs, the question arises whether a similar information and communication ecology, or virtual buzz, can be established. We explore similarities and differences between both forms of buzz, using the same classification scheme.     

Building global knowledge pipelines: The role of temporary clusters

Business people and professionals come together regularly at trade fairs, exhibitions, conventions, congresses, and conferences. Here, their latest and most advanced findings, inventions and products are on display to be evaluated by customers and suppliers, as well as by peers and competitors. Participation in events like these helps firms to identify the current market frontier, take stock of relative competitive positions and form future plans. Such events exhibit many of the characteristics ascribed to permanent spatial clusters, albeit in a temporary and intensified form. These short-lived hotspots of intense knowledge exchange, network building and idea generation can thus be seen as temporary clusters. This paper compares temporary clusters with permanent clusters and other types of inter-firm interactions. If regular participation in temporary clusters can satisfy a firm's need to learn through interaction with suppliers, customers, peers and rivals, why is the phenomenon of permanent spatial clustering of similar and related economic activity so pervasive? The answer, it is claimed, lies in the restrictions imposed upon economic activity when knowledge and ideas are transformed into valuable products and services. The paper sheds new light on how interaction among firms in current clusters coincides with knowledge-intensive pipelines between firms in different regions or clusters. In doing so, it offers a novel way of understanding how inter-firm knowledge relationships are organized spatially and temporally.     

Resituating Proximity and Knowledge Cross-fertilization in Clusters by Means of International Trade Fairs

This paper elaborates a proximity framework and provides empirical evidence of how knowledge cross-fertilization is instigated at international trade fairs (ITFs) and continued in a cluster network. This paper applies a case study method relying on social network analysis to explore the knowledge cross-fertilization initiated at ITFs and furthered at a Swedish cluster. The findings suggest that firms participating at ITFs translate and re-articulate the acquired external knowledge through their interactions in the cluster network. Creating awareness of the ITFs' influence on innovation is significant for policy-makers and scholars.     

With or Without Clusters: Facilitating Innovation through a Differentiated and Combined Network Approach

Over the past decades, economic and innovation policy across Europe moved in the direction of creating regional clusters of related firms and institutions. Creating clusters through public policy is risky, complex and costly, however. Moreover, it is not necessary to rely on clusters to stimulate innovation. A differentiated and combined network approach to enhancing innovation and stimulating economic growth may be more efficient and effective, especially though not exclusively in regions lacking clusters. The challenge of such a policy is to mitigate the bottlenecks associated with “global pipeline”, “local buzz” and “stand alone” strategies used by innovative firms and to combine these strategies with a view to their complementarity in terms of knowledge effects. Private and semi-public brokers will be key in the evolving policy, as timely organizational change is crucial for continued innovation, while brokers also need to mitigate governance problems. This requires region-specific knowledge in terms of sectors, life cycles, institutional and socio-cultural factors, and yields spatially differentiated and differentiating adjustment strategies. The role of public policy is to assist in recruiting, provide start-up funding and monitor brokers. With this, policy moves towards a decentralized, process-based, region-specific, spatially diverging and multi-level system of innovation that is geared towards the evolving innovation strategies of firms.     

ON THE IMPACT OF COMPETITION ON TRADE AND FIRM LOCATION

We study how the level of trade costs and the intensity of competition interact to explain the nature and intensity of trade within a given industry and the location of firms across countries. As trade costs decrease from very high to very low values, the global economy moves from autarky to two‐way trade, through one‐way trade from the larger to the smaller region. By exploring the intensive and extensive margins of exports, we investigate how the intensity of trade reacts to the degree of competitiveness. Furthermore, when firms are free to change location, they flow from the small to the large country, and the larger country is always a net exported on the manufactured good. Firms located in the big country have a bigger size than those located in the small one. Under one‐way trade, the relocation of firms changes their attitude toward export.     

Export of Services of Servicing Exports?

Information and communications technology has ensured that many producer services, as well as more ‘basic’ services such as transportation or insurance, are now more tradable than ever. All the indications are that this trade will increase. This has raised the international profile of service and altered governments to their potential as sources of export revenue. This is seen as one way of enhancing national (or regional) economic performance. But should this be assumed to be a panacea for improving national economic growth and restructuring? The general pattern and structure of international trade in services is examined to show that, while valuable, the direct contribution of services to national exports is actually growing relatively slowly and the pattern of trade is highly concentrated. It may actually be important to recognize and nurture the indirect contribution of services to overall national export activity. Goods production and distribution is increasingly dependent on service knowledge and skill; its export competitiveness is a function of the expertise and intellectual knowledge (mainly services) incorporated in the products, the ‘value’ of those products to consumers, and the ways in which they reach out to their markets.     

The District and the Global Economy: Exportation Versus Foreign Location

We depict an industrial district as a center of innovation where positive local spillovers sustain the endogenous invention of new goods by profit-seeking firms. After invention, firms face a crucial choice between reaching distant markets by export or plant delocation. Attempts by firms to circumvent trade barriers through delocation slow down the pace of innovation and harm the welfare of the district.     

THE OPTIMAL DISTANCE TO PORT FOR EXPORTING FIRMS*

ABSTRACT Success in international trade depends, among other things, on distance from markets. Most new economic geography models focus on the distance between countries. In contrast, much less theorizing and empirical analysis have focused on how distances within a country—for instance, due to the location behavior of exporting firms—matter to international trade. In this paper, we contribute to the literature on the latter by offering a theoretical model to explain the optimal distance that an export‐oriented firm would locate from a port. We present empirical evidence in support of the model.     

‘A Shop Window Where You Can Choose the Goods You Like’

This article examines the Finnish industrial and trade fairs held in the Soviet Union in the context of Finnish–Soviet trade and scientific–technical cooperation in the 1950s and 1960s. While primarily focused on fairs, it also discusses different activities that accompanied them, such as lectures, visits, and negotiations between Finnish traders and Soviet officials and specialists. This study illustrates how such first-hand contact played an important role in Finnish–Soviet communications. First, they helped Finnish producers showcase their goods and technologies directly to Soviet buyers in various ministries and organizations. Second, these contacts included diverse activities such as face-to-face contacts, lectures, and seminars, being a means of technology transfer from Finland to the USSR . Finally, although they were commercial interactions without explicit ideological purposes – like many international exhibitions of the last century – Finnish fairs demonstrated a technological gap between Finland and the USSR.     

A trans-national machine on the world stage: representing McCormick's reaper through world's fairs, 1851–1902

The McCormick Harvesting Machine Co. displayed its harvesting machinery at world fairs and agricultural fairs, using these events to build respectability for its machines and in support of sales and advertising claims. Records of the company reveal the firm's competitive behaviour at these fairs and their associated field trials for agricultural machinery. Analysis of company advertisements, catalogues, and correspondence on fairs and field trials reveals the way McCormick used these events, the extent and nature of international competition, and the nature of the world stage for industrial competition. Cyrus Hall McCormick, founder of the company, learning from his Crystal Palace success of 1851 and his even earlier experience with fairs in the USA, represented his reaper as a global product, made in America and internationally successful. Indeed, at the fairs McCormick's machines were embroiled in internecine warfare among an international brotherhood of manufacturers in pursuit of common goals and using a common repertoire of tactics, if not identical machines. This is because ‘American harvesting machines’ were a trans-national phenomenon. The paper concludes that globalisation was occurring in harvesting machinery and suggests that problems emerge from considering international competition in this industry as a contest among distinct national economies.     

1976～1978年间的中国对外贸易

十一届三中全会前夕,在中共中央、国务院"对外贸易要有一个大的发展"的号召下,中国的对外贸易开始启动,中外贸易团体往来频繁,中国政府在完善原有对外贸易机构的同时,通过召开专题研讨会、派出国小组国外调研、定期举办商品交易会等方式,为发展对外贸易创造良好的条件。由此,1976～1978年间中国的进出口贸易发展迅速,并同世界上许多国家签订了一系列贸易协定。这是十一届三中全会上确定进一步发展对外贸易的基础,为后来中国对外贸易的发展创造了条件。     

Combining Knowledge from Different Sources,Channels and Geographical Scales

The aim of this article is to examine conceptually and empirically how innovative firms combine knowledge (1) provided by different sources, (2) accessed at different spatial scales and (3) acquired through different channels. We add to the conceptual debate by contrasting and synthesising the perspectives offered on these issues by four key concepts, namely the local buzz and global pipelines argument, the knowledge-base approach, the notions of Science–Technology–Innovation and Doing–Using–Interacting modes of innovation as well as the regional innovation systems concept. The empirical part of the article contains an analysis of knowledge-sourcing activities employed by 181 firms belonging to the Austrian automotive supplier industry. Our findings reveal that it is, indeed, combinations of knowledge sourced from different partners located at different spatial scales and acquired through different channels that are relevant. However, it is particular combinations that dominate while others are negligible. Austrian automotive supplier firms combine knowledge provided by customers with knowledge inputs from a variety of other sources. Most of the combinations involve the European or global levels combined with the regional and/or national level. Finally, firms combine spillovers with a variety of other channels to acquire innovation-relevant knowledge.     

Towards Free Trade in the Pacific? The Genesis of the ‘Kava‐Biscuit War’ between Fiji and Vanuatu

Contemporary movements towards trade liberalisation have influenced economic development in Pacific island states, where opportunities for growth have always been restricted. The new free trade, centred on comparative advantage, is especially challenging for countries producing sugar, where diversification is difficult, and for the smallest states where trade options have always been limited. New regional trade agreements have been introduced in the Pacific as a step towards global free trade, but have emphasised trade rivalry and conflict, characterised by the ‘kava‐biscuit war’ between Fiji and Vanuatu, rather than complementary trade and cooperation. Movement towards free trade poses acute problems for island states, yet international agreements have not recognised their particular disadvantages, and continue to stress benefits that are nowhere apparent in the Pacific.     

对华贸易摩擦与我国对外贸易地理方向调整——基于收入需求偏好相似理论的分析

近来对华贸易摩擦数量更是呈现上升趋势。我国应该从贸易摩擦的国内原因着手,提升本国的国际竞争力。当前对华贸易摩擦与我国偏向性的对外贸易地理方向表现出重合性。要从根本上解决当前困境,就应该利用需求偏好相似理论逐步调整对外贸易方向,把原有的欧、美、日为主要导向出口贸易调整到各大洲并重的全球贸易战略。我国应特别注重拓展非洲、拉美市场,在缓解贸易摩擦危害的同时使中国走向贸易强国。     

International Trade Fairs and Global Buzz. Part II: Practices of Global Buzz

International trade fairs bring together agents from all over the world for a limited time period. They create a dense ecology of communication and information flows, referred to as “global buzz”. Global buzz associated with face-to-face (F2F) communication is extremely important for agents participating in these events as it generates access to developments occurring in different parts of the world. It helps to maintain and intensify existing networks, establish new networks or “trans-local pipelines” and support the development of shared attitudes and understandings. This paper aims to provide empirical evidence about the significance of global buzz in its manifold forms. Our research emphasizes the benefits that result from four sets of closely interrelated practices: (i) global knowledge exchange based on F2F interaction, (ii) exploration of market trends, (iii) problem solving and idea generation and (iv) network generation and pipeline-building in interpretative communities. The paper argues that practices of acquiring information, networking and dealing with competition differ substantially according to industry, firm and product characteristics. Our analysis of global buzz practices draws from more than 460 semi-structured interviews, which were conducted between 2004 and 2006 at seven national and international trade fairs in Frankfurt/Main, Hannover and Nürnberg, Germany.     

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.     

Internet Domains and the Innovativeness of Cities/Regions--Evidence from Germany and Munich

This paper focuses on the factors determining a region's ability to produce Internet content and tries to identify relationships with the role of the same region in the national and global economy. The number of .de-domains is used to measure Internet content production, which serves as an indicator for the innovativeness of the regions in an emerging part of the service economy. Data used for the spatial distribution of .de-domains (1.2 million names at the end of 1999) is original and has not been published before. In the first part of the paper the development of the number of Internet domain names in German regions is described and independent variables to explain the spatial structure are analysed. Results show that those variables that are associated with potentials to create and commercialize new knowledge are especially suited to explain the regions' relative frequencies in domain name counts. However, no single hypothesis alone is able to explain the spatial structure of .de-domains, rather a mixture of factors indicating external economies, creation of knowledge and highly qualified labour is best. The knowledge and attitude of these individuals is crucial for the adaptation and diffusion of an innovation like the Internet. Thus, the Internet does not create new regions but it replicates, at least in Germany, the well-known ranking of regions in terms of high-tech. Concerning high-tech industries and knowledge-intensive services, Munich has stood at the top of German regions for about 15 years; this region will be analysed in the second part of the paper. Munich's national and global competitiveness depends mainly, as for other regions, on the innovativeness of its firms, research institutions, and people. The capability of Internet domain names as an indicator for regional innovativeness is the better the younger this innovation is. Despite the rather decentralized spatial structure of Germany (see the very low primacy index), compared, e.g. with the UK and France, Munich stands out in terms of the number of domain names. Munich's role in the national and global economy is supported by the early adoption of the Internet by the local firms and private users - and vice versa! If one considers the Internet as a basic innovation in the sense of Schumpeter's long wave approach then new combinations of resources in new or old regions can lead to strong national growth, but attended by increasing disparities between regions within the respective nation. We may distinguish two driving forces: the Internet as the basic innovation and the export of the respective content production to other parts of the global economy. Munich serves as a proof for the hypothesis that regions with a large potential of Internet production are also able to export these contents into other parts of the world. Zook's work on regional economic impacts of the Internet on US regions shows that regions with above-average Internet content production and marketing activities do profit significantly from the multiplicator and spin-off-effects of the related exports. Thus, although information can be distributed by the Internet in very short time to all places in the world, it nevertheless produces uneven economic landscapes (and in part manifest the old landscape) that sees the regions with strong Internet content production in a much better position than regions where the Internet consumption prevails, although this still has to be analysed for German regions.     

The UN Arms Trade Treaty: arms export controls,the human security agenda and the lessons of history

The UN conference to negotiate an Arms Trade Treaty (ATT) concluded on 27 July 2012 without reaching consensus on the text of a draft treaty and saw both the US and Russia calling for more time to negotiate. The ATT process marks the latest in a series of attempts to insert human security concerns into arms export controls. The setback in July raises questions about the current level of international support for the human security agenda, as well as the relative power of different actors to shape global governance structures. This article locates the ATT negotiations in the broader history of multilateral efforts to regulate the international arms trade, from the 1890 Brussels Act to post‐Cold War initiatives. The historical record shows that such efforts are more likely to succeed if they are negotiated or imposed by major arms exporters. The introduction of human security concerns, as well as the merging of export control and arms control agendas, went some way towards reversing this trend. In particular, it created a broad international coalition of supportive states and NGOs from the global North and South. Yet disagreements over the purpose of an ATT remained. The draft ATT included human security provisions, but China, Russia, the US and a number of emerging powers ensured that state security considerations remained paramount in decision‐making on arms exports. The US was the first major actor to announce its unwillingness to sign the draft ATT in July 2012 and two alternative interpretations of US actions are considered. The article concludes by considering the options available to supporters of the ATT process following the 2012 conference and examines the notion that the ATT campaign has become an initiative ‘out of its time’, one that might have had success in the 1990s but not in current circumstances.     

The spatial economy of North American trade fairs

Through a study of trade fairs, this article illustrates that relational approaches to economic geography are not limited to the sphere of economic and social relationships. These relationships are influenced by and, in turn, shape material realities, such as specific infrastructure and the labour market, in a reflexive manner. Trade fairs are “relational events” that bring together regional, national, and often international producers, users, suppliers, and other agents of a value chain or technology field for the purpose of exchanging knowledge about technological and market developments, building partnerships, and maintaining existing networks through learning by interaction and observation. However, these events are also situated in space and time, grounded in the contexts of particular industries, trade patterns, public and private investments, as well as the economic geographies of places. Focusing on North America, this article presents and analyzes data on the economic geography of trade fairs and their regional economic impact (number of events, exhibitors, attendees, exhibition space). It explores regional trade fair patterns and dynamic changes in major trade fair cities by emphasizing the role of history and industry context.     

Australian approaches to countertrade: State and firm responses

Countertrade (or barter trade) has become an important element of the international political economy in the past 15 years, and is said to typify the emergence of neo‐mercantilist tendencies in the international system. The implications for Australia arising from this alteration in the ‘rules of the game’ with respect to the international system are profound. This article explores how the Australian government, and Australian‐based firms, have responded to the emergence of countertrade. We demonstrate that in the absence of government leadership on the issue, firms have developed their own coping mechanisms of dealing with countertrade.