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.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Small is not Necessarily Beautiful: An Evaluation of Policy Support for Small and Medium-sized Enterprises in Australia

One of the key strategies of the current Commonwealth government in Australia is to promote a dynamic entrepreneurial culture by improving the business environment for small and medium-sized enterprises (SMEs). This paper evaluates the contribution of SMEs to innovation and employment in Australia and reviews the international evidence on the value of SMEs. It concludes that a very small percentage of SMEs are responsible for most of the employment generation and innovation in the small-firm sector. The policy implication is that general deregulatory measures designed to support SMEs as a generic class are likely to create an environment within which low-quality, low-wage employment is generated in SMEs with little future. Instead, the sectoral composition of industrial activity and the social structures and relationships within which firms are embedded require greater policy attention.     

Economic Policy and Women’s Informal Work in South Africa

This article examines the gender dimensions of the growth in informal and flexible work in South Africa and the government’s policy response to this. It outlines the growth in informal and flexible work practices and, as illustrative examples, analyses how trade and industrial policies and labour market policies are impacting on the growth of informal and flexible work. It is argued that the South African government’s trade and industrial policies are shifting the economy onto a path of capital intensification. Allied to this, firms are undergoing a process of extensive restructuring. These developments are further promoting the growth of flexibilization and informalization, and thereby disadvantaging women. The article demonstrates that whilst the government offers a vast package of support measures to big business, its policy is largely irrelevant to the survivalist segment of small business, where most women in the informal economy are to be found. The picture for labour policy is more diverse. Aspects of the labour legislation are promoting the growth of a dual labour market, whilst there seems to be some tightening up of practices aimed at bypassing aspects of the protection provided to workers.     

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.     

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.     

Decentralized Industrial Policy in Germany. Case Study: Bavaria

Bavaria has achieved a dynamic change in its economic structure since the end of World War II, having evolved in the last four decades from an agricultural to a well-performing modern and service state. A wide variety of R&D-, SME- and infrastructure-oriented industrial policy measures have significantly contributed to the establishment of new small firms and job creation, the modernization of industrial structure as well as the economic and technology development in this German state. Bavarian industrial policy also stresses the subsidiarity principle and the working-together-through-dialogue principle of various groups including government, firms, trade unions, interest groups, etc. This type of loosely defined industrial policy has functioned remarkably well in the Bavarian-specific framework, in which a few large leading firms of international renown, in combination with the strong SME-basis, have played a key role for the rapid development. This study examines some major characteristics of regional industrial policy measures in Germany, taking Bavaria as a successful case.     

Film policy in Japan – an isolated species on the verge of extinction?

This article examines changes of the place that film has occupied in the public policy of the Japanese government, including not only cultural policy per se, but also industrial and economic policy. After describing some of the distinctive features of the Japanese film market, this paper discusses the inadequate basis of the government’s cultural policy for film. Film in recent years has received some attention as an industry with export potential, particularly with the rise of ‘Cool Japan’, the policy of promoting Japanese culture abroad as a tool for economic and diplomatic aims. In the chequered history of economic growth strategies and nation branding of recent years, the film industry has had some good news but received no serious attention either as a sector with economic significance or as a form of national culture.     

A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

Industrial Policy in Wallonia: A Rupture with the Past?

One of the main issues facing almost all European regional policy-makers is how to ensure a smooth adaptation of their industrial structure in the face of changing societal and technological parameters. In the case of the Belgian region Wallonia, industrial decline has particularly marked the economy during recent decades and the need to promote structural change has been a central preoccupation of national and, subsequently, regional governments. At the same time, the highly complex system of governance in Belgium renders the definition and application of a coherent regional industrial policy difficult. This paper explores the development of industrial policy in the Walloon region with particular attention to the period since 1990 and the pertinence of the instruments and delivery mechanisms with respect to the underlying structural issues facing the regional economy. The paper is divided into four sections: the first offers a historical profile of the industrial development of the Walloon economy and in particular identifies some of the factors which provoked a serious structural crisis. The section reviews the economic impact of the successive phases of rationalization and diversification which have taken place since the 1970s and discusses how the industrial strategies adopted by the business sector and supported by the regional government have influenced the speed of economic regeneration. The second section considers the complex federal system of government in Belgium and how it influences the freedom of action for regional industrial policy. The governance of the economy by the numerous public or semi-public institutions active in the field of industrial policy is a crucial issue. A critical review of the main initiatives, instruments and targets of industrial policy in Wallonia is offered in section three, while the paper concludes by contrasting the Walloon industrial policy with initiatives taken in the neighbouring area of South-West Flanders and ponders the issue of whether in the end the key factor arresting the development of Wallonia is the insufficient level of 'social capital'.     

Industrial policy in the EU: old dilemmas and new options

Industrial policy is highly controversial. Supporters claim it is necessary to address market failures. Critics argue that the danger of government failure is often higher and that such failure may lead to greater welfare loss. The EU justifies its industrial policy by pointing to the existence of transnational problems and to its unique ability to counter them. The EU has the capacity to coordinate national policies, to reduce redundancies, to control and limit national subsidies to industry. It also has a mandate for managing EU foreign trade and competition policy. There are five major industrial policy arenas. Technology policy has been relatively successful in certain fields like telecommunications or traffic‐control systems. In other fields, such as micro‐electronics and computers, the results have been mixed at best. Regional policy has had a limited developmental impact. On foreign‐trade policy, anti‐dumping measures have largely been a failure, though they have stimulated Japanese direct investment. A division of labour between the EU Commission and national, regional and local governments should be advanced with a view to formulating and implementing industrial policy. The regional and local levels should formulate policies aimed at strengthening specialized factors. The EU should concentrate primarily on fostering and shaping new lines of technological development and managing capacity reduction in declining industries.     

中国城镇土地非均衡扩张路径与治理策略研究

用经济学中的资源配置理论解释城镇土地非均衡扩张,根据城镇土地扩张的机理不同,把城镇土地分为工业用地、居住用地、基础设施用地,并分别考察了其非均衡扩张路径,在此基础上,从"制度环境-政绩目标-政策工具"三方面提出了非均衡扩张的治理策略。结果认为:招商引资过程中竞相以低地价供地导致了工业用地非均衡扩张;对土地财政的过分追逐导致了居住用地非均衡扩张;地方政府为攫取政治晋升资本,大兴城市基础设施建设导致了基础设施用地非均衡扩张;为系统控制城镇土地非均衡扩张,应在"制度环境-政绩目标-政策工具"三个层次上制定相关治理策略。     

Depressions and elevations of the southern archipelagoes of chile

The post‐war employment changes on Clydeside: the continued decline of the traditional industries, the slow expansion of the new growth industries, and the relative lack of change in the employment .structure of the conurbation. The effect of the employment changes on the pattern of industrial distribution in the conurbation in the light of a number of factors such as the availability of land, the City of Glasgow's redevelopment and overspill policies, the immigration of new firms, the outward movement of population, ‘and the role of central government policy. The possibility of changing circumstances resulting from more recent increased levels of redevelopment and the availability in the “centre of the conurbation of larger amounts of developable land on privately operated industrial estates.     

上海陆家嘴金融集聚动因的实证研究

本文利用陆家嘴金融创新问卷调查和面对面访谈等实地调研资料,对上海陆家嘴的金融集聚动因进行了较为深入的探讨。研究发现,邻近金融中心市场、共享知名品牌、金融友善型政府、良好的政策法规是促进其金融集聚的主要动因;而我国金融政策环境开放度不高、金融产业水平较低、市场规模不大、中介服务机构不足则正成为影响陆家嘴金融集聚的主要不利因素。     

Cost‐benefit appraisal of the industrial areas programme in Greece: Aims,methodologies and assumptions

The Industrial Areas Programme in Greece aims to promote and propagate industrial activity in targeted regions. The policy mainly provides for the acquisition of industrial land and the development of the public infrastructure and has been operational since 1968. The objectives of this research are to evaluate the cost‐effectiveness of this policy in terms of the stated aims. Cost‐benefit methods are used to compare the likely outcomes of the policy in the light of the resources deployed. The research illustrates the variety in performance levels that individual projects achieve but concludes overall that the programme has been more than worthwhile. This paper deals with the objectives of the study and how they are to be achieved.     

Promoting Innovative Clusters through the Regional Research Centre (RRC) Policy Programme in Korea

This article deals with government policies to promote innovative clusters in which firms and related supporting institutes closely interact and stimulate the innovation process. It argues that the Korean government has taken various types of policies in the process of developing clusters. The Regional Research Centre (RRC) policy programme and the Semiconductor Equipment Research Centre (SERC) of Hoseo University are case studies. The RRC programme aims to establish a regional research network among research agents having a common interest in regionally specialized technologies, and to strengthen their technological capability. The SERC, established in 1996 as one of the RRCs, has played a successful role as the government intended. The local business environment wherein user firms and suppliers were scattered and fragmented was greatly improved as the result of the active role of the SERC.     

The Role of Personal Factors in the Location Decision of Software Services Start-up Firms

This paper explores the factors which influence the business location decisions of start-ups, focusing in particular on the role of personal factors. Established explanations of industry location emphasize proximity to firms in the same or related industries and proximity to a wider set of business services, though recent research suggests that personal factors may play an important role in explanations of industry location—particularly in technology-enabled sectors. A survey of 97 new firms, founded between 2008 and 2012, in the Irish software services sector, shows that the business location decision is influenced by the personal motivation of entrepreneurs to attain a desired quality of life, and that this outweighs economic factors such as proximity to firms within the same or related industries, proximity to a broader set of supporting business services, infrastructure or the availability of government support schemes. Personal factors are particularly important to firms located outside the Dublin metropolitan area and to home-based businesses. This has important policy implications for national and regional governments seeking to encourage entrepreneurship in technology-enabled service sectors.     

The Search for National Identity and Japanese Industrial Policy, 1950–1969

Abstract. Economic nationalism reflected in Japanese industrial policy experienced two distinctive stages during 1950–69. It was fragmented in the 1950s as political actors held competing perceptions of national interest and consequently asserted contesting strategies for industrial policy. The tensions between the conservative and the progressive eventually led to a clash in 1960 on the issue of the renewal of the Japan–US security treaty. Economic nationalism began to unify the country in the 1960s as political actors were able to build a consensus on national interest based on economic growth and united around a grand strategy of high growth and liberalisation of trade. During this transition, the perceived external threat to the nation was a major force in generating the momentum for economic nationalism in policy-making, while a fair distribution of economic welfare among social classes through industrial policy was indispensable for economic nationalism to obtain public support.     

Understanding Technology Development

There are wide variations between the developing countries in the capabilities of their enterprises to import, utilize and improve upon industrial technologies. It is important for the purposes of industrial policy to understand why these differences exist and how industrial capabilities may be improved. This article presents the findings of recent research into the nature of capability development and the role of government policies in promoting such development. The process of becoming efficient in industry is very different from the usual textbook portrayal, in which firms costlessly access and absorb new technologies. In reality, there is a long and uncertain learning process involved, differing with the nature of the technology, the efficiency of factor and product markets, and the provision of various technological information and services from the infrastructure institutions. There is a widespread risk in developing countries that all these markets suffer from failures: the scope for technology development policies rests on the need to remedy these failures. The experience of the most successful newly industrializing economies (NIEs) suggests that well-designed interventions, both selective and functional, are needed to promote technology development. Experience clearly shows the dangers of government failure, but it is necessary to retain a large role for the government if industry is to succeed. The pattern and implementation of interventions have to be very different. This article points out the outlines of economically desirable interventions.