International Trade,R&D Spillovers and Productivity: Evidence from Indian Manufacturing Industry

This paper examines the effect of trade facilitated R&D spillovers on the productivity of manufacturing firms in India, inter-sectoral variation in the effect on productivity and the importance of firms' investment in R&D, technology imports and plant and machinery in enhancing the productivity effect. Using firm level panel data, the study shows that R&D spillovers have a significant effect on productivity and that this effect is greater in technology-intensive industries. The paper also shows that firms' investment in plant and machinery enhances the productivity effect of R&D spillovers. The paper provides detailed micro-level evidence on the argument that trade openness promotes technological progress in developing countries.     

Political Institutions and Public R&D Expenditures in Democratic Countries

While research and development (R&D) expenditure is crucial in a nation's competitive advantage, factors determining levels of public investment in R&D have yet to be examined. This article seeks to fill this void, focusing on different democratic institutions such as presidential versus parliamentary systems, majoritarian versus proportional electoral systems, federal versus unitary systems, bicameral versus unicameral legislatures, and the effective number of parties. Building upon theories of political institutions and government size and utilizing public R&D appropriations data from 18 Organization for Economic Cooperation and Development (OECD) countries between 1981 and 2007, this article reports that democratic institutions do matter in the levels of public R&D spending. However, the effect is more complicated across the different types and performers of research than expected. Additionally, the effect of one institutional dimension is found to be moderated by the existence of the other dimensions, which makes it clearly more challenging to sort out different degrees and directions of the relationships between R&D expenditures and political institutions.     

Economic development and the administration and regulation of transport

This paper examines the impact on total factor productivity (TFP) growth in the South of North-South and South-South trade-related technology diffusion and of foreign direct investment (FDI). North-South and South-South trade-related research and development (R&D) stocks are constructed based on industry-specific R&D in the North, North-South and South-South trade patterns, and input-output relations in the South. The main findings are: 1. Both North-South and South-South trade-related R&D have a positive impact on TFP growth in the South; 2. FDI has a positive, though smaller, impact on TFP growth; 3. The impact on TFP growth of trade-related technology diffusion increases with the level of education in the case of North-South trade but not in the case of South-South trade.     

Research and Development,Competitiveness and European Integration of South Eastern Europe

This article explores the relationship between research and development (R&D) and competitiveness of South East European (SEE) economies from the perspective of European Union (EU) integration. Specifically, the article addresses the question of whether South East Europe is a potential asset or liability to the enlarged EU. SEE countries are quite diverse in terms of levels of competitiveness, with visible effects on the role of R&D, which is confirmed by analysis of R&D demand and supply factors. Improvements in the national innovation systems of SEE countries have largely taken place through vertical linkages on the supply and demand sides. However, a wider role for R&D will depend increasingly on the strength of horizontal linkages within national systems of innovation and their key agent—the local innovative business enterprise sector. This calls for a rethinking of science and technology policy, traditionally defined as a sectoral activity.     

Energy conservation policy in the united states and Sweden: Comparing research and development responses

This study assesses the comparability of public sector responses to energy conservation research and development (R&D) in the United states and Sweden. Using the evaluative criteria of policy objectives, organizational structure, and funding, the extent to which the institutional context for R&D either constrains or fosters conservation as an element of each nation's energy policies is examined. Sweden, unlike the United States, appears to have been successful in achievement consensus primarily through an open, deliberative process of mutual partisan adjustment regarding where specific allocations should be made in the energy R&D budget for optimal conservation results. To a great extent, it is within these differing institutional contexts of policy uncertainly that the content of specific energy conservation policies and strategies should be evaluated.     

Human Resource Management and Organizational Behavior of Public Research Institutions

The purpose of this article is to analyze the organizational behavior of public research organizations based on their human resources development and management. The study here focuses on the largest Italian public research body. The pyramid of R&D people shows the irregular spatial structure of the research personnel per macro regions and the index of seniority indicates older research personnel in the North and Central Part of Italy than in the South Italy. The analysis of human resources displays organizational weaknesses and threats for public research labs generated by research policy based on shrinking public research lab budgets and downsizing of research personnel. Some critical human resource management implications are discussed in order to improve the strategic change and research performances of public research institutions in turbulent and fast-changing markets.     

Why Are Some States More Generous in Offering R&D Tax Credits than Others? An Empirical Answer

This article examines political cost factors that affect a state's propensity to adopt a corporate income tax credit to encourage research and development (R&D) activities in the United States. Assuming state elected officials are vote-maximizers, this article hypothesizes that politicians' consideration of potential revenue losses and influence from organized interests are critical in a state's decision to provide a R&D tax credit. To test the hypothesis, two statistical models are specified. With a dichotomous dependent variable of whether or not a R&D tax credit is offered, a Logit regression model is utilized. For the interval level dependent variable of effective R&D credit rates, this article specifies a Tobit model. The results show that politicians' concerns about revenue losses loom much larger than private organized interests.     

International Pressure and Domestic Precedent: Japan's Resettlement of Indochinese Refugees

Abstract

Why did Japan decide to admit more than 11,000 refugees from Vietnam, Laos, and Cambodia between 1975 and 2005? The conventional explanation is that Japan admitted these refugees because of pressure from foreign countries, and particularly from the United States. In this article, I argue that, in addition to foreign pressure, there was another factor that was important in causing Japan to admit these refugee populations. Japanese leaders agreed to admit Indochinese refugees because they came to believe that this would not set a precedent that would make Japan into a major destination for refugee resettlement.     

Income Convergence, Capability Divergence, and the Middle Income Trap: An Analysis of the Case of Chile

The adoption of a free market model in the early 1970s reinforced Chile??s specialization in natural resources, particularly in mining. At the same time, it set the stage for successful diversification within natural resources creating pockets of excellence. This resulted from a combination of foreign direct investment (FDI) spillovers, technology and knowledge transfer, adequate firm capabilities, and strategic government intervention. During the 1990s, the country witnessed solid growth and income convergence with the developed world, followed thereafter by a deteriorating performance. This reflected a growth-reducing structural change visible in the limited capacity of the natural resource industries to generate broad-based upgrading. Recent government initiatives have placed the focus on vertical industrial policy fostering innovation and knowledge. These efforts are limited by low levels of research and development (R&D) expenditure, a lack of an innovation culture in the private sector and overall low social capabilities. The stagnation of Chile at middle income levels remains a distinct possibility unless concerted efforts are undertaken to promote broad-based upgrading.     

Deficiencies in education and poor prospects for economic growth in the Gulf countries: The case of the UAE

Abstract

Our paper shows that the deficient educational system and the large share of unskilled foreign workers in the Gulf countries are serious impediments to a successful implementation of the strategies of these countries to reduce their dependence on foreign technologies and to restructure their economies in order to make them less dependent on oil exports. A novel element in our analysis is that we emphasise the role of the deficient educational system as an important problem, next to the well-documented quandary of a high incidence of unskilled foreign workers in the workforce. We use new survey data, both at an establishment level and economy-wide, to provide evidence on how the poor educational facilities lead to a poor provision of training, low skill levels, serious skills mismatch and deficient transfer of knowledge. These inadequate facilities and the lack of incentives to improve them also lead to low R&D efforts to promote local technologies and hamper a restructuring of the economy.     

The ownership advantage in Latin American FDI: A sectoral study of us direct investment in Mexico

This article develops a model which tests the hypothesis that sectoral FDI flows from the United States to Mexico over a four‐year period can be explained by the ownership advantages of US multinationals. Theoretical developments in the concept of ‘ownership advantage’ are used to guide the formulation of the research. The findings suggest that direct investment into US MNEs’ affiliates in Mexico is driven by benefits derived from embedded human knowledge, technology‐embodied advantages, and possibly from scale advantages. Local R&D is negatively associated with FDI.     

Development cooperation and post-colonial critique: an investigation into the South Korean model

Abstract

With the rise of the South–South Development Cooperation (SSDC), the international development community has entered into a new paradigm of development cooperation. The Organisation for Economic Co-operation and Development – Development Assistance Committee (OECD-DAC) has had to consider what recently added members might have to offer, particularly South Korea given its dramatic transformation from official development assistance (ODA) recipient to donor. Post-colonial theory sees ODA as a system that reinforces the traditional hierarchy of North–South relations and reaffirms the hegemony of dominant countries; the SSDC has faced similar neo-colonial allegations. By employing post-colonial theory this paper investigates some neo-­colonial criticisms of the ODA activities of major OECD-DAC and SSDC providers, before turning its focus on those of South Korea to determine whether it does indeed offer an alternative strategy to development. The African region was chosen as the focus in light of the increased amount of aid South Korea has allocated to the region. This paper concludes by offering a different role South Korea might play engaging within the OECD-DAC/SSDC context.     

Inclusive partners? Internationalising South Korea’s chaebol through corporate social responsibility-linked development cooperation

Abstract

In recent years, non-traditional or ‘emerging’ donors such as South Korea have organised their development cooperation models in a manner that seeks to complement the capacities of the private sector by extending the overseas activities of domestic businesses. To better understand this process, this article examines the role of South Korea’s large, family-led conglomerates (chaebol) in its growing international development sector. In particular, we focus on how the concept of corporate social responsibility (CSR) has been used to link the role of its large, and frequently scandal-ridden, private companies to international development, and, by extension, how it has helped to internationalise state–business networks long associated with the Korean developmental state. We examine two strategies through which this has been carried out. The first is by extending the logic of creating shared value (CSV, a derivative of CSR) to aid and infrastructure projects in which chaebol and other state-linked businesses have participated. The second is by directly embedding CSR-based aid initiatives in the value chains of the specific chaebol themselves.     

The threat to the U.S.

The Vietnam War had a major impact on the civil rights movement of the 1960s. The war helped to split the struggle for social justice at the very time that it was achieving its greatest successes. The factionalism over whether or not to support the war decimated the crusade for human equality.     

FDI Liberalisation,Firm Heterogeneity and Foreign Ownership: German Firm Decisions in Reforming India

The paper investigates the role of firm-level productivity and industry-level R&D for multinational enterprises' (MNEs') choice of undertaking foreign direct investment (FDI), and the share of ownership in foreign affiliates. Two firm-specific datasets on German MNEs with varying equity stakes in Indian affiliates are used to account for the two-step decision process. The paper also analyses how German firm decisions were affected by the liberalisation of FDI regulations in India. Results show remarkable differences between the selection and the ownership share equation, and also between the pre-reform and post-reform periods. The evidence clearly reveals the trade-offs involved in selective FDI approvals and foreign ownership restrictions.     

Accumulating Technology and Location Spillovers Among Firms in Taiwan's Electronics Industry

Using firm-level panel data from the Taiwanese Census of Manufactures for 1986 and 1991 in the context of a modified selection model, we focus on three activities that contribute to the productivity growth of firms in the electronics industry: research and development, direct foreign investment and exports. In particular we address the issue of whether, in addition to the direct benefits of these activities, there are spillovers to other firms within the same four-digit industry or within the same geographical county. Our empirical results indicate that while the survival and direct productivity growth effects of R&D, exports and DFI are positive and statistically significant, intra-industry and geographical spillover effects are consistently present only for the export activity. That is, a firm's expected future TFP is positively and significantly affected by being located in a county and industry with more export activity. In addition, there is some evidence that the indirect effects generated by DFI firms, in the form of location spillover benefits to other firms, are also positive and significant. Finally, the empirical results indicate that the above direct and indirect benefits of the technological activities under study accrue principally to Taiwan's small and medium enterprises, rather than its large firms.     

The Role of Non -Economic Drivers in Development Planning: The Case of South Korea and Turkey

ABSTRACT

The relationships between economic growth and planning strategies have been debated in different disciplines of social science. However, the emphasis has been more on structural and theoretical assumptions of planning and economics at the expense of other important non-economic and institutional factors that include social, cultural, political, and administrative dimensions. To explain the different approaches and outcomes of development planning, one needs to examine other factors that influence the nature of these plans and why they have been adopted. Using rigorous systematic and thematic review of government reports, academic publications and data from international organizations, this comparative study reveal the unique role non-economic factors play in countries’ development. It has been revealed that these factors not only influence the nature of planning strategies adopted by governments but also affect how these plans are implemented. Since South Korea and Turkey have achieved impressive economic growth over the last half a century, they have been selected as a case study to examine the role non-economic factors in their respective developments.     

Southeast Asian industrialisation and the changing global production system

The diversion of foreign direct investment ( fdi ) flows into developing Asia, from Southeast Asia to China, has renewed doubts about whether Southeast Asia's traditional reliance on fdi has left the region without the local capabilities required to sustain the region's long-term competitiveness. Southeast Asia's industrialisation has involved deepening integration into international production networks, comprising internal exchanges between multinational corporations ( mnc s) and their subsidiaries, affiliates and subcontractors. While indigenous industry has been secondary to Southeast Asian industrialisation, this paper highlights three elements of local technological accumulation and clustering within foreign-dominated export industries: production deepening, co-location of design, engineering and R&D with off-shore manufacturing, and the spatial clustering of mnc s in particular industry segments. Southeast Asian governments have responded to these trends by broadening investment promotion from manufacturing to business services and regional headquarters operations, by targeting incentives and infrastructure development to foster industrial clusters, and by invigorating technical support programmes for local small and medium-sized enterprises ( sme s) in supporting industries. Taken together, these trends suggest that Southeast Asia will remain an important site within multinationals' international production networks.     

Do Economic Linkages through FDI Lead to Institutional Change? Assessing Outcomes in Kazakhstan,Azerbaijan and Kyrgyzstan

Abstract

Foreign direct investment (FDI) can deliver benefits beyond the provision of capital, such as efficiency gains. We argue that the theorised positive effects of economic linkage are reduced when linkages are based on natural resources. Domestic elite coalitions supporting reform are also weaker in countries with extensive natural resources. Kazakhstan and Azerbaijan have high-value natural resources and significant FDI, making them most likely cases for reform. Kyrgyzstan is a contrasting case as it has few natural resources. We find that the institutional reforms we would anticipate because of linkages have not occurred and those that exist are often cosmetic.