Multinational Knowledge Strategies,Policy and the Upgrading Process of Regions: Revisiting the Automotive Industry in Ostrava and Shanghai

This paper revisits how and why new multinational knowledge-based strategies and multi-level governmental policies influence the upgrading process of regions in developing economies. Automotive multinationals traditionally exploited local asset conditions, but it is shown that they have also been contributing to knowledge-generation systems via investments in R&D centres and cooperation with regional knowledge producers. We discern three elements of the upgrading process of regions—upgrading of domestic firms, subsidiary evolution and establishment of strategic relations with local knowledge institutes—to analyse two case studies: Ostrava (Czech Republic) and Shanghai (China). The cases show that all types of upgrading—product, process, chain and functional—have taken place in the last years, and that follow sourcing may have a positive impact on regional upgrading. These observations provide lessons for governments in developing economies which aim to strengthen innovation-based regional development.     

Kin state non‐interventionism: Albania and regional stability in the Western Balkans

This article provides a comprehensive analysis of Albanian regional policy from 1992 to 2013. Situated in a conflict‐ridden region and surrounded by co‐ethnics living in Kosovo, Macedonia, Montenegro and Serbia, Albania has successfully resisted pressure to undertake interventionist regional policies. However, there are no structured accounts as to how Albania fashioned its non‐interventionist regional policy. This article fills this gap and retraces the development of Albanian regional policy as a function of its inter‐mingled domestic politics and regional and international dynamics. The article concludes that the Albanian regional approach has been shaped by its legacy of communist isolation, pro‐Western predisposition and recognition that accommodation of Western interests would overcome its constraints and advance the rights of Albanians living in the Western Balkans. The analysis is important not just for understanding Albania's actions but also for disentangling the relationship between regional policy, nationalism and a kin state's domestic and international constraints.     

Learning About Regionalism from Europe: ‘Economic Normalisation’ and Beyond

This paper critically analyses the European Union's regional policy framework and considers its implications for Australia's multi‐level governance system. The analysis is made with reference to the ‘new regionalist’ debates in Europe and North America that have asserted the importance of regional economic development in the context of globalisation. New regionalism's advocacy of ‘economic normalisation’ as a leading regional policy aim is critically evaluated against the EU policy experience. Conclusions about the adequacy of new regionalist claims are drawn for Australian policy debates.     

Noril'sk Nickel: A Global Company?

Two specialists on Russia's minerals industries examine the evidence supporting the argument that the Russian mining conglomerate Noril'sk Nickel can be viewed as a global company. Included among the criteria they assess are the geographic dispersion of the company's markets and operations, the diversified and multinational character of its ownership, whether it has matched the performance standards set by its major international competitors, and the effect of the company's ownership presence on the management style of its foreign operations. A particular focus is on how an ongoing conflict between two major Russian oligarch shareholders (Vladimir Potanin and Oleg Deripaska) has shaped Noril'sk Nickel's ownership and management structure, which is characterized by the continued (background) presence of the state, the lack of any organized policy for training a multinational management cohort, and the absence of a major block of foreign shareholders. In the end, they conclude that Noril'sk Nickel is not a genuinely global but rather a Tier-1 Russian company, albeit one with a global scale of operations.     

Canada's Ocean Supercluster initiative: A national policy in regional clothing?

Since the late 1980s, there has been no explicit regional policy in Canada. Indirectly, though, equalization payments, industrial policies, as well as regional agencies encouraging the adoption of federal industrial and innovation policies, impact regional economies. In 2017, the federal government appeared to alter its approach: the Supercluster initiative was announced, drawing upon the idea that localized networks of interrelated firms can generate innovation and local development. In this paper, we discuss the mechanisms through which spatially focused industrial innovation policy can lead to regional development. We then focus on Canada's Ocean Supercluster initiative. The question we address is as follows: to what extent can this initiative (and, more widely, Canada's Supercluster policy) be understood as a regional development strategy driven by a coherent rationale for regional intervention? Apart from the fact that each Supercluster focuses on a pre-existing core of firms located within a region, there is little evidence that the Supercluster initiative has regional development objectives or impacts.     

KNOWLEDGE SPILLOVERS,ABSORPTIVE CAPACITY,AND SKILL INTENSITY OF CHILEAN MANUFACTURING PLANTS*

ABSTRACT Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant‐level production function is estimated with the absorptive‐capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill‐intensive production also enhance its productivity.     

From forward defence to self‐reliance: Changes and continuities in Australian defence policy 1965–90

This paper shows that the focus of Australia's ‘declared’ defence policy has oscillated between local and regional defence, whereas its ‘operational’ policy—the views contained in internal planning and guidance documents—has taken a mid‐course, focusing on defending Australia's northern approaches. Australia's two policy domains coincided briefly in the mid‐1980s but have since diverged as we have again begun to emphasise regional defence. This shift could signal the end of ‘defence self‐reliance’. While representing a setback for the Hawke government, such a result is necessary as Australia's ‘operational’ policy is flawed and in need of replacement The danger is that, as in the past, Australian governments and their advisers will continue to adjust their rhetoric rather than their real policies to our changing circumstances.     

基于嵌入理论的中国跨国企业的企业社会责任研究——以华为公司为案例

新发展格局背景下,中国跨国企业“走出去”面临的“社会文化”融入问题日益引起关注。传统的企业社会责任理论不能有效指导当前中国跨国企业的海外投资发展,而嵌入理论与企业社会责任理论相衔接,有助于丰富企业社会责任理论。本文构建了嵌入理论与企业社会责任理论衔接的理论框架,并以国际化程度较高的华为公司为案例进行实证。嵌入理论涉及全球生产网络和地方的经济、社会、文化、环境、劳动力、制度等各维度,与企业社会责任理论中经济、法律、伦理、慈善责任等方面契合度高,提出中国跨国企业海外履行企业社会责任需在全球与国家、地方与社区、企业等不同空间尺度下有所侧重。     

Putting Porter into Practice? Practices of Regional Cluster Building: Evidence from Sweden

In the last decade there has been an increased interest in the cluster approach as a tool for boosting regional competitiveness. In this article practices and processes of regional cluster building in Sweden are examined in order to better understand the key traits that seem to be common to successful regional cluster initiatives. It is argued that regional cluster building may be formed through long running policy processes that are crucially constituted by public and private actors' collective vision of what cluster policy involves and what a cluster can look like. Results from a study of 13 cluster initiatives in Sweden are presented. Out of these, four key examples are presented in detail to illustrate four distinct 'models' of cluster approaches that emerged: (a) industry-led initiatives to build competitiveness and competence within an existing base; (b) top-down public policy exercises in brand-building; (c) visionary projects to produce an industry cluster from 'thin air'; (d) small scale, geographically dispersed, natural resource based, temporal clusters that link or dip into global rather than national systems, sources of innovation and competitive advantage. The article closes with the presentation of a checklist of some common elements that successful cluster initiatives in Sweden have shared. It is hoped that they may trigger further research or be useful to policy-makers working in the area. It is concluded that though many questions and problems persist over the use of the cluster-approach it can be a useful tool for regional development.     

The dynamics of global visual effects and games development industries: lessons for Australia’s creative industries development policy

The paper critiques the focus of creative industries policy on capability development of small and medium sized firms and the provision of regional incentives. It analyses factors affecting the competitiveness and sustainability of the games development industry and visual effects suppliers to feature films. Interviews with participants in these industries highlight the need for policy instruments to take into consideration the structure and organization of global markets and the power of lead multinational corporations. We show that although forms of economic governance in these industries may allow sustainable value capture, they are interrupted by bottlenecks in which ferocious competition among suppliers is confronted by comparatively little competition among the lead firms. We argue that current approaches to creative industries policy aimed at building self-sustaining creative industries are unlikely to be sufficient because of the globalized nature of the industries. Rather, we argue that a more profitable approach is likely to require supporting diversification of the industries as ‘feeders’ into other areas of the economy.     

The rise of the Indo-Pacific: understanding ideational change and continuity in India's foreign policy

In 2011, the concept of the Indo-Pacific began to appear in India's foreign policy discourse. This article argues that rather than signalling a dramatic shift in India's foreign policy, however, the way in which the Indo-Pacific has been interpreted by the Indian leadership suggests significant continuity as well as change, which is contrary to the goals of the concept's most fervent proponents in India. The article seeks to develop a framework for understanding ideational change and continuity in foreign policy by theorising the interplay between ideas, political and economic flux, and social expectations related to effective and legitimate state-building. It is argued that the Indo-Pacific concept has instigated a new emphasis on regional architecture-building to manage the ongoing regionalisation in the area between the Indian and Pacific Oceans as a result of heightened trade flows and production and investment linkages. Yet, the Indo-Pacific concept, like the new policy ideas on regional engagement that preceded it—the Look East policy and the ‘extended neighbourhood’—has been articulated in ways that are also compatible with long-standing ideas—such as non-alignment—about what constitutes appropriate international behaviour. This reflects the nature of the broader state project that has emerged since 1990, which, while encompassing a new focus on economic growth and competitiveness as being essential to effective state-building, continues to prioritise older ideas about what constitutes effective and legitimate state-building.     

Information Age Ireland: The Attraction,the Reality and Never Ending Geography

This paper is an attempt to probe deeper behind the well-documented success story of the Irish economy over the 1990s. Over the decade, the country experienced unparalleled levels of economic growth that saw unemployment levels plummet, inflation levels stabilize and inward investment rise at a substantial rate. Growth rates of gross national product (GNP) best surmise the Irish case, the tigerish performance brought the country from one with a per capita GNP two-thirds of the European Union (EU) average in 1987, to one which exceeded the average 10 years later. An exposition of Ireland's pursuit of a foreign direct investment (FDI) development model forms a major part of this work. Recognizing the importance of FDI in Ireland, and FDI in the software sector in particular, this paper shows how and why investors flocked into the country over the golden era of the 1990s. Exogenously, Ireland's place on the outskirts of one of the world's biggest markets made it an alluring option for outside investors. Endogenously, the rationale behind the pursuit of high-tech FDI policy, beyond employment creation was the expected spill-over effects of multinational companies (MNCs) on the local economy. Questions are asked about the nature of positive externalities both in terms of the growth of an indigenous sector alongside a foreign-owned one as well as the sustainability of this type of investment. Changes in the organizational structures of MNCs over the 1990s, through decentralization of activities and outsourcing are integral to the Irish success story. Organizational transformation resulting in networks of global production have helped Ireland, as a peripheral region, to reposition itself as an access point to the lucrative European market. The geographic alteration on the national level however, has not been recreated on the sub-national scale. Contrary to the writings of many technology determinists, Ireland's pursuit of an information economy has had a very real impact in terms of regional economic divergence within the country. The lack of coherent regional or spatial planning is to blame along with a telecommunications infrastructure that has exacerbated the regional woes of an economy with an explicit focus on high-technology industries.     

'New Programming' and the Influence of Transnational Discourses in the Reform of Regional Policy in Italy

Recent developments in regional policy in Italy may be interpreted as outcomes of a mutual fertilization between two distinct policy discourses, concerning the reframing of regional programming in the framework of a reform of the State, and the promotion of local initiatives in a perspective of endogenous development. This paper presents a critical itinerary of the mutual evolution of these lines of discourse during the 1990s. Their provisional merging in the framework of the strategy of 'new programming' adopted in connection with the reform of the Structural Funds and with the new community support framework (CSF) for the period 2000-2006 is interpreted in light of the 'Europeanization' of Italian public policy and of the influence of its progressive embedding into transnational policy discourses.     

The End of the Beginning?: Welsh Regional Policy and Objective One

'West Wales and the Valleys' now qualify for EU Objective One status, entitled to draw down up to 1.3 billion in EU funds, matched from public and private sources between 2000 and 2006. However, there are many issues raised by the process of organizing the subsequent programme. There are questions over policy focus in the economically diverse Objective One areas, how governance of these policies will work, and the wider implications of Objective One in financial and political terms. There is also debate over previous regional policy initiatives in a Wales that for many years had access to a relatively large share of the UK's regional policy budget and EU funds, yet still faced falling GDP per head as a proportion of the UK average, west Wales and the Valleys' very Objective One status relying on GDP per capita under 75% of the EU average.     

Changing partnerships: Firms and the French state

Lindblom's hypothesis that in market‐oriented systems businessmen predominate over statesmen is tested in relation to the way French firms have switched partners since the 1980s. Instead of a dirigiste—style special relationship with government, they have formed multinational partnerships. The implications of the new competitive context, under the pressure of delocalisation panic, are considered, prior to the examination of the effects of nationalisation and privatisation on the national identity of firms. The virtual bankruptcy of Crédit Lyonnais is examined as an example of state‐dependent capitalism, and the impact of EC competition policy is considered. The partial industrial disengagement by the French government in favour of market competition reinforces the applicability of Lindblom's hypothesis to the relations between firms and state in France.     

Best Practice in Australia's Foreign Policy: 'Konfrontasi' (1963-66)

Australia's handling of Indonesia's confrontation of Malaysia ('Konfrontasi') constitutes a case-study of best practice in crisis management. A strong minister of External Affairs, working closely with an effective department, persuaded Cabinet to set policy guidelines which would serve Australia's long-term regional interests. Bureaucratic skill and diplomatic flair helped to ensure the success-and so the continuance-of the policy, despite private and public criticism. An independent foreign policy, such as had also served Australia well in the late 1940s in facilitating the decolonisation of Indonesia, not only assisted Britain to decolonise successfully in Southeast Asia in the 1960s, but had lasting results in establishing Australia as a credible regional player and in defining the enduring importance of good working relations with its neighbour, Indonesia.     

Regional knowledge capabilities,embeddedness of firms and industry organisation: Bioscience megacentres and economic geography

Changes in epistemology in biosciences are generating important spatial effects. The most notable of these is the emergence of a few 'Bioscience Megacentres' for basic and applied bioscience medical and clinical research (molecular, post-genomic, proteomics, etc.), biotechnology research, training in these and related fields, academic entrepreneurship and commercial exploitation by clusters of 'drug discovery' start-up and spin-off companies, along with specialist venture capital and other innovation system support services. Large pharmaceutical firms that used to lead such knowledge generation and exploitation processes are becoming increasingly dependent upon innovative drug solutions produced in such clusters, and megacentres are now the predominant source of such commercial knowledge. 'Big pharma' is seldom at the heart of megacentres such as those the paper will argue are found in about four locations each in the USA and Europe, but remains important for some risk capital ('milestone payments'), marketing, and distribution of drugs discovered. The embedding of these processes also creates major new regional disparities, which some regional governances have recognised, causing them to develop responsibilities for regional science policy and funding to offset spatial biases intrinsic in traditional national (and in the EU, supranational) research funding regimes. Responses follow a variety of models ranging from market-following to both regionalised (decentralising by the centre) and 'regionalist' (ground-up); in each case, the role of megacentres is justified in health terms. But their role in assisting fulfilment of regional economic growth visions is also clearly perceived and pronounced in policy terms.     

Western Australia's Royalties for Regions program: a policy response to growth,regional neglect,and perceived disempowerment

Under the right conditions, compounding socio‐political and economic change can dramatically alter government policy. From 2000, Western Australia, a resource‐rich jurisdiction, experienced significant change owing to a once‐in‐a‐generation resources boom, which forced a break with earlier development approaches. In 2008, regional interventionism returned to the State via the State Government's Royalties for Regions program. Departing from the neo‐liberal tradition, the program allocated 25 per cent of the State's royalty income to non‐metropolitan regions, over and above existing regional allocations, and its success remains disputed. While it is easy to question the program retrospectively, the socio‐economic and political circumstances from 2000 to 2008 reveal a “perfect storm” of conditions enabling the transition from neo‐liberalism to interventionism in regional development. This paper sets out to understand the multi‐faceted conditions that enabled the dramatic paradigm shift embodied by the program. To this end, it examines the State's rural–urban settlement dichotomy, its staples economy, and the policy context leading up to the program. Following that, the paper proposes a causal framework mapping out the factors driving and rationalising the program. These factors are then examined in detail and include perceived rural voter disenchantment, ineffectual regional development policy, the State's mining boom, inadequate regional development funding, the contrasting fortunes of two regions (illustrative of the impact of growth, and the lack thereof), and the political manoeuvring during the 2008 election. Finally, the paper concludes by considering how the conversion of these conditions resulted in the State's most significant regional policy redirection in decades.     

Following America into the second industrial revolution: new rules of competition and Ontario's farm machinery industry, 1850–1930

Despite the hiatus in farm expansion from 1880 to 1900, Canadian‐owned Massey‐Harris became a competitive multinational corporation as American branch plants arrived in Ontario. This equivocal performance in Canada's agricultural implements industry poses problems for explanations of Canada's branch plant economy. Most commentators blame an ill‐conceived National Policy for promoting and protecting inefficient industry and frustrating industrial development. In reviewing their explanations, I use systematic comparisons among plants as well as between the Ontario, New York, Ohio, and Illinois industries. I argue that Canada's National Policy was an effective industrial policy that promoted competitive implement manufacture under the constraints of Victorian era technology. Problems emerged in the 1880s, however, as Chicago firms developed mass production in harvesting machinery, and these became entrenched as gasoline tractor development swept the industry after 1900. Ontario firms struggled, but they outperformed competitors in New York and Ohio, who had been industry leaders in] 880. Canada's branch plant economy in the farm machinery industry was made in Chicago and by mechanical engineers, not in Ottawa and by politicians. En dépit de l'hiatus dans l'expansion du pare agricole entre 1880 et 1900, la société canadienne Massey‐Harris est devenue une grande société multinational compétitive lorsque des usines‐succursales américaines ont fait leur arrivée en l'Ontario. Cette baisse de performance de I'Industrie canadienne de fabrication d'outils et d'engins agricoles pose des problèmes sur le plan de l'explication de l'économie des usines‐succursales canadiennes. Pour la plupart des analystes, cette situation serait due à une politique nationals mal‐conçue. Celle‐ci aurait favorisé et protégé une Industrie inefficace, et ainsi frustré le développement industriel. En passant en revue ces analyses, je procède à une série de comparisons systématiques, d'une part des usines entre elles et, d'autre part, entre les industries de New York, de l'Ohio et de l'lllinois. J'avance que la Politique nationale canadienne etait une politique industrielle efficace qui a su promouvoir une Industrie de fabrication d'outils et d'engins agricoles compétitive dans le cadre de la technologie de l'époque victorienne et de ses contraintes. Des problèmes, qui ont fait leur apparition au cours des années 1880, suite à l'adoption par les sociétés de Chicago de la production de masse des moissonneuses, ont perduré suite à l'arrivée en masse des tracteurs à essence après 1900. Ce fut un moment très difficile pour les sociétés de l'Ontario mais elles réussirent à battre leurs concurrents de New York et de l'Ohio qui étaient leaders de l'industrie en 1880. Dans l'industrie des engins agricoles, le sort de l'économie des usines‐succursales était décidéà Chicago, par des ingénieurs en mécanique agricole, non à Ottawa, par des hommes politiques.     

Regional Innovation Systems and European Research Policy: Convergence or Misunderstanding?

In this article the question of interfacing, innovation policy and regional policy at the European level is addressed. Under which conditions will the new European research policy, relying on networks of centres of excellence, be compatible with 'cohesion' objectives? Since there will be no unique regional development scheme based on science and technology, how can policy-makers take into consideration the variety of local contexts? The analysis focuses on the fact that the concept of regional innovation system can be misleading for describing the territorial context. However, a cognitive approach seems possible, based on the notion of regional competence to innovate. The analyses are illustrated with empirical results concerning the French regions, and especially Alsace.