Growing Global: Foreign Direct Investment and the Internationalization of Local Suppliers in Scotland

The paper examines how the localization of multinationals can be linked to the globalization of local business networks, particularly whether domestic linkages with foreign subsidiaries can facilitate the internationalization of local suppliers. Detailed interviews were held with 16 suppliers and 8 foreign investors in both the Scottish oil-gas and electronics industries. The results highlight the importance to suppliers of 'piggy-backing' multinationals into new markets, but show its greater significance in the oil-gas industry. The paper concludes that piggy-backing is dependent on the strength and value of domestic links between suppliers and subsidiaries. Industry-specific factors determine the intensity of these linkages. The implications for such developments are being absorbed by planning and economic development policy-makers at regional and national levels, as supplier and investor development is increasingly being placed within a wider policy framework of cluster development.     

Does Spatial Clustering of Foreign Direct Investment Foster Global Production Networks? The Case of Qingdao,China

This article examines how spatial clustering of foreign direct investment (FDI) can foster a global production network (GPN). The cluster concept, in general, stressed inter-firm relations between local and regional firms while neglecting global–local linkages in the spatial context. In contrast, GPN focuses on the advantages of international production organization and governance structure but underestimates regional or localized channels of production arrangement. By integrating the conceptual framework of spatial clustering of FDI and GPN, this paper provides empirical evidence of various channels to knowledge and innovation transfer between domestic firms and foreign-invested enterprises. This paper demonstrates that the different types of linkages formation are key determinant factors for establishing cluster through contributing to local economic development.     

Commercializing Science in Europe: The Cambridge Biotechnology Cluster

The article examines the variety of linkages firms have established with university science. These include using universities as a source of ideas for start-ups, scientific collaboration between firms and laboratories, the role of scientists on the scientific advisory boards of firms, and the role of universities in supplying firms with a labour market for talented scientists. These linkages are plentiful across Cambridge area biotechnology firms. However, and perhaps surprisingly, our evidence shows that a key actor, the University of Cambridge does not dominate the scientific linkages of the area's firms. A large percentage of Cambridge's firms do not derive from its university. The majority of scientific collaborations are not with University of Cambridge laboratories, nor do Cambridge scientists dominate the scientific advisory boards of firms. Moreover, the majority of scientists within area biotechnology firms appear not to have left University of Cambridge laboratories to move to industry.     

Sustainable Food Systems Cluster,Vermont Style

Vermont, as one of the most rural and independent states in the U.S., has always relied heavily on agriculture and its natural environment to underpin its economy. This article examines the state's agricultural economy as a sustainable food systems cluster and how it is adapting to the global economy, corporate agriculture, and environmental concerns. It describes the scale and concentration of the cluster, its support structure, and the ways it impact other sectors of the economy, including energy, tourism, and the arts. It also explains how a cluster of largely small-scale and artisan enterprises that often represent lifestyle rather than economic choices can be innovative, collectively create a wealth-producing and branded cluster, and the implications of the new agricultural model for the state's educational system.     

THE IMPORTANCE OF BUSINESS TRAVEL FOR INDUSTRIAL CLUSTERS – MAKING SENSE OF NOMADIC WORKERS

This article uses research on business air travel to study the external linkages of clusters. Using a typology of travellers (from commuters, explorers, and nomads to visiting tradesmen and missionaries) we show how elements of the cluster have more complex external connections than proposed by most of the cluster research literature. Maintaining these linkages involves hyper-mobility of individuals. We explore the implications of such continued physical travel for understandings of the workplace, for work-life balance and for citizenship. We conclude by warning against any one-dimensional understanding of the relationships.     

Innovating in Cluster/Cluster as Innovation: The Case of the Biotechvalley Cluster Initiative

It has been noted that innovation seems to take place to a higher degree in clusters than elsewhere and we have lately seen a worldwide wave of emerging cluster initiatives and similar innovation policy projects. Some of these are realistic efforts based on existing regional strengths and partly existing cluster structures. Most, however, are grasping at straws. The latter is especially true when it comes to technologies such as IT and biotech. We could subsequently add a new label—“pathetic clusters”—to the already existing list of embryonic, emerging, world-class or stagnating clusters. But what do we make of such “pathetic clusters” (are they really pathetic)? Although economic geographers often tend to explain innovation (competitiveness) by looking at cluster dynamics, in such accounts, the cluster concept itself can actually function as an innovation, imposing similar effects on the economy as more familiar types of innovation would, i.e. by creating a local competitive edge. It is reasonable to believe that if “pathetic clusters” play important roles in regional economies, then they do so in the form of social and organizational innovations rather than as Porterian drivers of innovation and industrial dynamics on a large scale. This function of the cluster concept—as a local innovation—is the focus of the paper at hand.     

Assessing the Cluster Correspondence between Paired Point Locations

Some complex geographic events are associated with multiple point locations. Such events include, but are not limited to, those describing linkages between and among places. The term multi‐location event is used in the paper to refer to these geographical phenomena. Through formalization of the multi‐location event problem, this paper situates the analysis of multi‐location events within the broad context of point pattern analysis techniques. Two alternative approaches (Vector autocorrelation analysis and cluster correspondence analysis) to the spatial dependence of paired‐location events (i.e., two‐location events) are explored, with a discussion of their appropriateness to general multi‐location event problems. The research proposes a framework of cluster correspondence analysis for the detection of local non‐stationarities in the spatial process generating multi‐location events. A new algorithm for local analysis of cluster correspondence is proposed. It is implemented on a large‐scale dataset of vehicle theft and recovery location pairs in Buffalo, New York.     

A LONG-RUN INTERPRETATION OF REGIONAL INPUT-OUTPUT ANALYSIS*

ABSTRACT. Regional input-output (I-O) analysis is traditionally motivated by a short-run, extreme Keynesian vision of markets. In this paper we argue that an appropriately formulated, investment-endogenous, I-O system replicates the long-run equilibria of a wide range of regional models, many of which do not operate as I-O systems in the short run. In particular, we use a computable general equilibrium (CGE) framework to illustrate the impact of an aggregate demand disturbance on an I-O and standard neoclassical model. When run forward over a number of periods, the results from the capacity-constrained neoclassical model asymptotically approach the I-O outcome. We use sensitivity analysis to examine the speed of adjustment of the neo-classical system and investigate barriers to the attainment of the I-O result.     

‘If ah’ve goat’i choose between putting shoes on ma bairn’s feet and payin’ this bill,ah’m puttin’ shoes on ma bairn’s feet’ – poverty and the poll tax

ABSTRACT

The poll tax was a key episode in British politics. The widespread opposition campaign has been described as an important expression of Scottish political and national opposition to Thatcherism. The historiographical focus on Glasgow has been influential in this interpretation. By broadening the focus to other Scottish geographies, this article challenges this portrayal and highlights the lived experience of poverty that underpinned resistance and gave political discourses their power. By reframing the argument through the lens of poverty it develops an alternative understanding of the causes of the tax, inverting the narrative that suggests political discourses drove resistance.     

David Evans & Co. The Last of the Old London Textile Printers

Abstract

The Glasgow 'Tobacco Lords' were the subject of a classic study, but there has been no overall survey of their successors, the Scottish cotton masters. This article draws on a rich and surprisingly underused source, the wills and probate inventories of Scottish cotton merchants and manufacturers, to give a fuller picture of a group, which played a key role in Scotland's early industrialisation. It also casts light on the early decline of the cotton industry in Scotland by demonstrating how, as profits declined, the cotton masters, who had always had diverse business interests, began to move into more lucrative areas of investment, such as coal mining, iron manufacturing, railways, shipping and overseas trade.     

Clusters versus Cluster Initiatives,with Focus on the ICT Sector in Poland

The article focuses on the topic of clustering, which has become a popular concept, both from the academic and political perspective, and as an efficient business model. The distinction between clusters, understood as geographical concentrations of specific industries, and cluster initiatives, understood as more formalized actions undertaken by regional actors, is proposed. The primary objective of this study is to verify if these two types of structures are overlapping each other. This problem arises because the motivation for forming some cluster initiatives may be different economic policy instruments rather than existing market potential of a specific regional economy. The study finds that not all of Information and Communication Technologies (ICT) cluster initiatives in Poland represent real concentration of ICT-related divisions included in statistical classification of economic activities in the European community Rev. 2 classification, as measured by location quotients (LQs) for indicators on employment, firms' incomes and number of enterprises. However, there is a visible pattern that the LQs are higher in smaller geographic areas (NUTS 4 (Nomenclature of units for territorial statistics)), which usually represent big cities, being the cores of cluster initiatives. The study also discusses the phenomenon of the internationalization of clusters and the value added to that process from forming formalized cluster initiatives, which create favourable institutional framework for transborder cooperation.     

Cluster Facilitation from a Cluster Life Cycle Perspective

Clusters influence the way firms cooperate, organize and compete, but clusters and their related benefits rarely come spontaneously in a straight line of expansion. It is argued that clusters typically develop in accordance with a life cycle, which includes an evolutionary sequence of steps where actors from the private and public sectors are engaged and where one or more cluster facilitators are coordinating and promoting the process. In the literature, the role of cluster facilitators has almost exclusively been described as static, leaving a research gap about how this particular role changes during the life cycle of clusters. Inspired by that research gap, this paper contributes to the understanding of the relationship between cluster development and cluster facilitation. It brings forward a framework for describing and discussing the exact changes taking place in the role of cluster facilitators, including the facilitation focus, competencies and tasks that they make use of along the cluster life cycle. This investigation is based on a multiple case study consisting of nine different clusters located in Denmark.     

Planning the new industrial nation: Scotland 1931 to 1979

Despite the continuing strength of Unionist politics in Scotland, from the inter-war economic crisis onwards, there slowly emerged distinctive understanding of a Scottish industrial economy. Aided by administrative devolution, and from the 1940s by a UK-wide turn towards economic planning, a project aimed at a planned modernisation of Scottish industry gained increasing traction. This article focuses on the activities of the technocratic elements of the Scottish elite, the civil servants and academic economists who played a key role in conceptualising and quantifying the Scottish economy, and making and applying policy to develop the Scottish industrial nation between the 1930s and 1970s.     

Local Firms and Global Reach: Business Air Travel and the Irish Software Cluster

We study the external linkages of clusters through a typology of forms of temporary proximity (from foreign business meetings to co-located projects). We suggest that here business air travel and information and communication technologies have given significant advantages to small firms. We investigate these arguments through a case study of the Irish software industry in Dublin. Comparing indigenous and multinational corporation (MNC) firms confirms that indigenous firms are as travel intensive as MNCs but are linked to fewer destinations. We conclude that air travel enables small firms to go global without the support of collective cluster institutions.     

INSTITUTIONAL EMBEDDEDNESS AND REGIONAL ADAPTABILITY AND RIGIDITY IN A CHINESE APPAREL CLUSTER

In recent years, the flexibilities industrial clusters may offer to firms within them have been questioned as inter‐firm linkages have, in some cases, locked‐in path‐dependent practices and increased economic rigidities. In this sense, the canonical path dependence model has tended to overlook such trajectories of cluster evolution and has not paid as much attention to the ways in which actors can affect path‐dependent processes. In this article, we build on this critique which has largely been developed in evolutionary economic geography to explore how a cluster becomes progressively locked‐in and how the knowledge base of an industry becomes homogenized, resulting in a loss of innovative dynamism and a slowdown in the growth, or even stasis, of the cluster. By focusing on a case study from China, the article investigates some of the ways in which different kinds of actors respond to external shocks, and the ways in which the resulting processes are fraught with tensions and divergences. In doing so, the article emphasizes that the association between trans‐local pipelines and innovation is not predetermined. The second theoretical contribution of this article lies in its attempt to reveal that all actors can be both path dependent and path breaking, and the process of co‐evolution can be driven by the heterogeneity and divergence of particular actors. Finally, we seek to contribute to existing literature by showing the potential advantages of working at the interface between evolutionary economic geography and other theoretical approaches.     

Scottish Rights and ‘Centralisation’ in the Mid-Nineteenth Century

Abstract. This article will address the assumption that the essential definition of nationalism is parliamentary political. By highlighting the solitary Scottish nationalist movement in the mid-nineteenth century, the National Association for the Vindication of Scottish Rights, this article asks whether a ‘centralised’ state for the Scottish nation should be the model against which nationalism is interpreted. By developing the concept of ‘civil society’ as both ‘container’ and ‘director’ of nationalism, this article will show the influence of a ‘decentralised’ state to conceptions of ‘best-governing’. By stressing the contradictions in the legitimacy of the British state mid-century, it will be argued that Scottish nationalism can not be regarded as merely romantic, nor, as its outcome, can Scottish culture be presented as somehow weak. This article will argue that intellectual thought regarding the state meant that the only form of nationalism at this time was ‘Unionist-nationalism’, more union with England, not less.     

What's Next in Researching Cluster Policy: Place-Based Governance for Effective Cluster Policy

Despite their immense popularity and rapid proliferation and development, local cluster policies have met mixed results, and often suffer from limited effectiveness. In this paper, we argue that an important reason for the limited success can be found in the way policies have been grafted onto a particular policy rationale, namely of “cluster building”. Responding to this critique, we propose an alternative rationale, that of “policy leverage”, and a governance model which, in the pursuit of “policy leverage”, presents a new approach to intelligence gathering and to collective strategy-making. The model assigns a key role to “civic entrepreneurs” who operate at the interfaces of public and private spheres, and, of endogenous and exogenous drives, in line with “place-based” approaches.     

Fortresses and fashion statements: gentry castles in fourteenth-century Northumberland

The fourteenth century saw a dramatic upsurge of new castle building in northern England. Not unreasonably, historians have associated this with the Scottish wars, seeing this proliferation as a direct response to Scottish raiding, and assuming that these castles were designed and built solely to perform a defensive military function. However, recent work on castles has questioned such purely functionalist interpretations. This article examines the castles built in the fourteenth century by the ‘gentry’ of Northumberland, the most exposed of all the border counties to Scottish attack, and sets them in their local and national contexts. Were these castles just built as defensive fortresses, or did they also serve a more symbolic role, in a society which had rapidly become militarised with the onset of war in 1296? Were they in fact intended as much to keep up with the neighbours as to keep out the Scots?     

Fortresses and fashion statements: gentry castles in fourteenth-century Northumberland

The fourteenth century saw a dramatic upsurge of new castle building in northern England. Not unreasonably, historians have associated this with the Scottish wars, seeing this proliferation as a direct response to Scottish raiding, and assuming that these castles were designed and built solely to perform a defensive military function. However, recent work on castles has questioned such purely functionalist interpretations. This article examines the castles built in the fourteenth century by the ‘gentry’ of Northumberland, the most exposed of all the border counties to Scottish attack, and sets them in their local and national contexts. Were these castles just built as defensive fortresses, or did they also serve a more symbolic role, in a society which had rapidly become militarised with the onset of war in 1296? Were they in fact intended as much to keep up with the neighbours as to keep out the Scots?     

Supplier linkages of foreign-owned manufacturing firms in the UK: the influence of entry mode,subsidiary autonomy and nationality

This article tests the hypothesis that the supplier linkages which subsidiaries of foreign-owned companies make with indigenous firms in the UK are influenced by entry mode, the amount of autonomy which is granted to the subsidiary which is established and the nationality of the parent company. Data were collected from foreign-owned firms in the UK and an ordered probit model with the change in supplier linkages as the dependent variable was devised and tested. The results provide support for the hypothesis in terms of entry mode and subsidiary autonomy, but not in terms of parent nationality. This study represents a new approach to the study of supplier linkages and integrates concepts and studies from both regional science and international business. Foreign-owned firms which entered the UK by means of a greenfield entry tend to have a relatively positive effect on the creation and growth of supplier linkages, whereas those which entered by way of a merger or acquisition tended to have a relatively negative effect on the growth of such linkages. This finding has important implications for academics and policy-makers alike. Although the potential impact which the creation of supplier linkages can make upon the host country's economy has long been recognised, little research has been undertaken to identify the key factors which affect such growth. With increased levels of globalisation it is important that governments are able to maximise the impact which foreign direct investment makes upon the economy of their countries.