a history friendly model of the successive changes in industrial leadership and the catch up by latecomers abstract successive changes in industrial leadership between both firms and countries described here as catch up cycles have been common in several sectors this article develops a history friendly model to explore the role played by technological conditions in the emergence of such leadership changes the model is inspired by two cases where the emergence of disruptively novel technology played an important role mobile phones and semiconductors in the baseline setting the model is able to generate the benchmark case of three cycles with two leadership changes in particular the simulation analysis reveals that a the more disruptive the new technology and the lower the incumbents capabilities the greater the shake up of market shares between incumbents and latecomers b leadership change is more likely to occur when it coincides with certain responses by the actors to the technological disruption such as a high lock in behaviour on the part of incumbents and c a technology driven change of industrial leadership is more likely to occur in the presence of increasing returns to technological investments the counterfactual experiments show that different catch up dynamics can emerge depending on the magnitude of technological disruption the degree of lock ins the shape of technological landscape and incumbents initial capabilities in particular four other types of catch up cycle are generated the aborted cycle persistent leadership return of the old leadership and coexistence in leadership between latecomers and incumbents each of these cycles is identified with a specific historical case of catch up

catch up cycles and changes in industrial leadership windows of opportunity and responses of firms and countries in the evolution of sectoral systems this study proposes a framework that aims to explain why successive changes in industry leadership called also the catch up cycle occur over time in a sector in catch up cycles latecomer firms and countries emerge as international leaders whereas incumbents lose their previous positions new leaders are then dethroned by newcomers to identify factors at the base of catch up cycles this article adopts a sectoral system framework and identifies windows of opportunity that may emerge during the long run evolution of an industry this study proposes three windows related to the specific dimensions of a sectoral system one dimension is related to changes in knowledge and technology the second dimension pertains to changes in demand and the third includes changes in institutions and public policy the combination of the opening of a window technological demand or institutional policy and the responses of firms and other components of the sectoral system of the latecomer and incumbent countries determines changes in industrial leadership and catch up sectors differ according to the type of windows that may open and the responses of firms and other components of systems empirical evidence of catch up cycles is presented from six sectors namely mobile phones cameras semiconductors steel mid sized jets and wines

the intertemporal behavior of economic profits abstract the intertemporal behavior of economic profits is examined tests show that profit rates are not independent of their initial level a set of tests for the nature of the profit adjustment mechanism is proposed and a stock market based profit measure is employed despite intertemporal dependence we find evidence of profit rate adjustment patterns roughly consistent with neoclassical theory for negative profits in some but not all cases the probability of maintaining positive profits appears less than the probability of moving toward zero profits

market based empirical research in accounting a review interpretation and extension a decade and a half of the most concerted and ambitious research effort in accounting history is evaluated here it is the search into the relationship between publicly disclosed accounting information and the consequences of the use of this information by the major group of usersequity investors as such consequences are reflected in characteristics of common stocks traded in major exchanges this research effort known as market based accounting research mbar obtained its impetus from major developments in finance theory during the late 1950s and early 1960s these were the portfolio selection theory and its offspring the capital asset pricing model capm and the concept of informationally efficient capital markets ecm subsequent developments in information economics agency theory and optimal incentive signaling models were quickly incorporated into mbar while the impetus to this line of research came from other disciplines accounting was not only a beneficiary but also to a modest extent a benefactor mbar is relevant to the study of capital market efficiency the capm information economics and regulation this contribution distinguishes mbar from most accounting areas whose contributions to other disciplines are negligible in

installed base and compatibility innovation product preannouncements and predation a good is often more valuable to any user the more others use compatible goods the authors show that this effect may inhibit innovation if an installed base exists and transition to a new standard must be gradual early adopters bear a disproportionate share of transient incompatibility costs this can produce excess inertia the installed base however is stranded if the new standard is adopted this may create excess momentum these dynamic effects have strategic implications temporary price cutting can permanently prevent entry and product preannouncements can be critical in innovation these strategic actions have ambiguous welfare effects

testing a discrete switching disequilibrium model of the uk labour market this paper develops a test procedure for serial correlation for discrete switching disequilibrium models which include both an endogenous price adjustment equation and lagged dependent variables the tests are applied to a model of the u k labor market and the model is respecified in the light of the test results

market valuation and deregulation of electric utilities abstract this study examines the effect of ongoing deregulation in the electric utility industry on the relation between market value book value and earnings we predict that deregulation decreases increases the relative importance of book value earnings in explaining price we test this prediction by examining changes in the value relevance of book value and earnings during the 1988 1996 time period for a sample of large investor owned electric utilities we find that the regression coefficients and incremental explanatory power related to book value earnings have decreased increased over this time period these results are generally robust in sensitivity analysis

cultural industries in international business research progress and prospect cultural industries systems of organizations that produce and distribute cultural goods with substantive symbolic aesthetic or artistic value represent an important exciting and complex context that receives growing scholarly attention as the first review of management research on cultural industries this paper aims to provide a systematic synthesis of current research summarizing distinctive characteristics of cultural industries and highlighting research gaps we also illustrate how the unique nature dynamics and evolution of cultural industries provide opportunities to broaden international business theories in four research themes i e internationalization strategy cross border innovation social inclusion in the global economy and emerging market research

book tax conformity earnings persistence and the association between earnings and future cash flows abstract calls for eliminating differences between accounting earnings and taxable income in the us have been debated extensively proponents of increased book tax conformity argue that tax compliance will increase and earnings quality will improve opponents argue that earnings quality will decline we examine whether the level of required book tax conformity affects earnings persistence and the association between earnings and future cash flows we develop a comprehensive book tax conformity measure and find that earnings have lower persistence and a lower association with future cash flows when conformity is higher our evidence suggests that increased book tax conformity may reduce earnings quality

technological regimes catching up and leapfrogging findings from the korean industries abstract this paper examines the experiences of selected industries in korea to identify the stylized facts in the process of technological capability building and thereby to sort out the conditions for the catching up to occur to explain the process we have built a model of technological and market catching up a special attention has been given to the question of whether there has been a case of leapfrogging in any industry in korea and if so what are the conditions for its incidence in our framework we first measure the degree of catching up in terms of market shares in the world then we focus on catching up in technological capabilities in explaining the different record and prospects of korean industries in market catching up in the model technological capability is determined as a function of both technological effort and the existing knowledge base as determinants of technological effort we look at the technological regimes of the industries such as cumulativeness of technical advances fluidity predictability of technological trajectory and the properties of knowledge base using this model we explain the different technological evolution of the selected industries in korea including the d ram automobile mobile phone consumer electronics personal computer and machine tool industries we find three different patterns of catching ups path creating catching up cdma mobile phone path skipping catching up d ram and automobile and path following catching up consumer electronics personal computers and machine tools we interpret the first two case of catching up as leapfrogging unlike the argument by perez and soete perez c soete l 1988 catching up in technology entry barriers and windows of opportunity in dosi et al eds technical change and economic theory pinter publishers london we find that important r d projects except automobiles where only private r d was involved involved both private and public capacities and that entry was not driven by endogenous generation of knowledge and skills but by collaboration with foreign companies

human capital bankruptcy and capital structure we derive a firm s optimal capital structure and managerial compensation contract when employees are averse to bearing their own human capital risk while equity holders can diversify this risk away in the presence of corporate taxes our model delivers optimal debt levels consistent with those observed in practice it also makes a number of predictions for the cross sectional distribution of firm leverage consistent with existing empirical evidence it implies persistent idiosyncratic dierences in leverage across firms an important new empirical prediction of the model is that ceteris paribus firms with more leverage should pay higher wages

gradual catch up and enduring leadership in the global wine industry the wine industry is an extremely interesting sector from a catch up point of view because the latecomers in the international market have changed how wine is produced sold and consumed and in doing so they have challenged the positions of incumbents until the end of the 1980s the european countries and particularly france and italy dominated the international market for wine subsequently significant changes in the market namely decreases in consumption by traditional consuming countries the entry of new inexperienced consumers and the increasing importance of large distribution have threatened this supremacy initially the usa and australia and later emerging countries such as chile and south africa gained increasing market shares in both exported volumes and value at the expense of incumbents however some of these newcomers e g australia have shown slower growth opening opportunities for newer entrants such as argentina and new zealand at the same time some of the incumbents especially italy have innovated challenging the leadership of france in key markets such as the usa in this article we investigate the different catch up cycles in the global wine sector that occurred between the 1960s and 2010 through a detailed analysis of export volumes values and unit prices we address issues related to the increasing share in the global market of latecomer countries and the relative decline of the incumbents as well as possible changes in the market leadership within these two groups

stock splits and stock dividends why who and when this study investigates empirically why firms split their stock or distribute stock dividends and why the market reacts favorably to these distributions the findings suggest that stock splits are mainly aimed at restoring stock prices to a normal range some support can also be found for the oft mentioned signalling motive of stock splits stock dividends are altogether different from stock splits and they appear to be a decreasing phenomenon the clue to stock dividend distributions may lie in their perceived substitution for relatively low cash dividends neither stock splits nor stock dividends are recent phenomena the latter dates back to the elizabethan age among the first to declare such dividends was the east india company which while enjoying great prosperity declared in 1682 a stock dividend of one hundred percent during the eighteenth and nineteenth centuries stock dividends were quite frequently distributed by british companies in the united states an early and frequently discussed stock dividend distribution was that of the new york central railroad just prior to its union with the hudson river railroad in 1869 surprisingly stock dividends were quite popular in the u s despite their being subject to federal income tax thus for example during the seven years prior to 1922 the year in which the supreme court exempted the recipients of stock dividends from taxes the ratio of stock dividends to all dividend distributions was 14 5 percent this ratio increased to a staggering forty seven percent during the seven years succeeding the supreme court decision during 1936 to 1937 some american companies distributed stock dividends to avoid the undistributed profit tax

public policy and catching up by developing countries in global industries a simulation model this paper examines the effects of different public policies strengthening capability building favouring firms learning protectionism and support of entry of new domestic firms on the catch up of a latecomer with respect to an incumbent country in changing and uncertain technological environments the effects of these policies are analysed with a simulation model first separately and then jointly to assess possible complementarities we reach several results first we confirm that capability building and firms learning are important drivers of catch up second we find that when a large technological discontinuity takes place entry support favours catch up while protectionism has the opposite effect protectionism favours catch up only when no technological discontinuity opens up third we find that depending on the technological conditions different policy complementarities exist therefore different policy mixes should be at the base of a country catch up strategy these results add to the previous literature on public policy and catching up by developing countries in an industry by distinguishing the different effects of various types of public policy and relating them to the technological conditions that are present in an industry

perpetual leapfrogging in bertrand duopoly we consider different patterns of infinite technological adoption choices by firms in a bertrand duopoly every period technological progress provides a sequence of cost reducing innovations the equilibrium concept is markov perfect equilibrium we analyze conditions for which equilibrium adoption leads to persistent leadership and those where firms alternate in adoption inducing leapfrogging only leapfrogging leads to technological improvement in the long run demand conditions play a crucial role in determining whether leapfrogging can be perpetual in bertrand duopoly

sectoral patterns of technical change towards a taxonomy and a theory abstract the purpose of the paper is to describe and explain sectoral patterns of technical change as revealed by data on about 2000 significant innovations in britain since 1945 most technological knowledge turns out not to be information that is generally applicable and easily reproducible but specific to firms and applications cumulative in development and varied amongst sectors in source and direction innovating firms principally in electronics and chemicals are relatively big and they develop innovations over a wide range of specific product groups within their principal sector but relatively few outside firms principally in mechanical and instrument engineering are relatively small and specialised and they exist in symbiosis with large firms in scale intensive sectors like metal manufacture and vehicles who make a significant contribution to their own process technology in textile firms on the other hand most process innovations come from suppliers these characteristics and variations can be classified in a three part taxonomy based on firms 1 supplier dominated 2 production intensive 3 science based they can be explained by sources of technology requirements of users and possibilities for appropriation this explanation has implications for our understanding of the sources and directions of technical change firms diversification behaviour the dynamic relationship between technology and industrial structure and the formation of technological skills and advantages at the level of the firm the region and the country

the made in effect and leapfrogging a model of leadership change for products with country of origin bias abstract change in industrial leadership is often explained in terms of technological and costs advantages however firms in emerging economies not only have to produce high quality cost competitive goods but also win the resistance of consumers in the world market who are often adverse to purchasing products from countries that yet have to build a reputation we argue that this country of origin bias significantly influences the chances of leadership change a model that aims at capturing the endogenous dynamics of demand building and leapfrogging is proposed we show that in sectors with high monopoly power acquiring a superior technology is not sufficient for a latecomer country to become leader unless a significant share of consumers is aware of the quality of its products an extension of the model to multiple sectors shows that a latecomer country remains specialized into low value undifferentiated goods even after overtaking the technology of the leading country

the effect of the set of comparable firms on the accuracy of the price earnings valuation method the price earnings pie valuation method estimates a firm s stock price as the product of its earnings and the pie multiple determined from a set of comparable firms this paper studies empirically the accuracy of the pie valuation method when comparable firms are selected on the basis of industry risk and earnings growth the effect of adjusting earnings for cross sectional differences in leverage is also examined

the intertemporal substitution model of labour market fluctuations an empirical analysis the paper uses two approaches to study whether aggregate fluctuations in employment and unemployment may be explained within a market clearing framework as intertemporal substitution in labour supply first log linear equations for labour supply and unemployment are estimated using a forecasting model to measure wage and price expectations second a utility function is used to derive and estimate an equation for labour supply as a function of the current real wage and consumption the influence of expected future real wages and interest rates is captured by the consumption variable the empirical results do not support the intertemporal substitution model

permanent versus transitory components of annual earnings and estimation error in earnings response coefficients abstract previous research has generally estimated unexpected earnings as the change relative to the previous year assuming that shocks to annual earnings are purely permanent in the presence of transitory components of annual earnings we predict that using earnings changes as a proxy for unexpected earnings causes earnings response coefficients to be understated and the estimation error to be negatively cross sectionally correlated with persistence the negative correlation causes the association between earnings response coefficients and persistence to be overstated we use the ima 1 1 model to capture transitory components of annual earnings and obtain results that are consistent with our predictions

accounting earnings and future economic rents an empirical analysis abstract this study reexamines competition cost structure and growth opportunities effects on earnings response coefficients and extends this literature in several ways first it presents a more refined theoretical motivation for investigating competition and cost structure effects second it introduces new economic factor proxies that confirm prior findings with respect to competition but differ from prior findings with respect to cost structure and growth opportunities overall the evidence suggests that accounting earnings reflect information about future economic rents generated by firms assets in place the evidence also suggests contrary to prior studies that accounting earnings are not very informative about firms growth opportunities

human capital information and the early adoption of new technology when producers are uncertain or have imperfect information about the profitability of adopting new technology their adoption behavior depends on the endowment of human capital and the investment in adoption information this study analyzes the role of education experience and information acquisition in the decision to be an early adopter the findings support the hypothesis that adoption decision making is a human capital intensive activity the econometric evidence presented suggests that education and information reduce adoption costs and uncertainty and thereby raise the probability of early adoption adoption behavior is also shown to vary significantly across firm size

a measure of competition based on 10 k filings in this paper we develop a measure of competition based on management s disclosures in their 10 k filing and find that firms rates of diminishing marginal returns on new and existing investment vary significantly with our measure we show that these firm level disclosures are related to existing industry level measures of disclosure e g herfindahl index but capture something distinctly new in particular we show that the measure has both across industry variation and within industry variation and each is related to the firm s future rates of diminishing marginal returns as such our measure is a useful complement to existing measures of competition we present a battery of specification tests designed to explore the boundaries of our measure and how it varies with the definition of industry and the presence of other measures of competition

forecasting volatility using long memory and comovements an application to option valuation under sfas 123r horizon matched historical volatility is commonly used to forecast future volatility for op tion valuation under the statement of financial accounting standards sfas 123r in this paper we empirically investigate the performance of using historical volatility to forecast long term stock return volatility in comparison with a number of alternative forecasting methods in analyzing forecasting errors and their impact on reported income due to option expensing we find that historical volatility is a poor forecast for long term volatility and that shrinkage adjustment toward comparable firm volatility only slightly improves its per formance forecasting performance can be improved substantially by incorporating both long memory and comovements with common market factors we also experiment with a simple mixed horizon realized volatility model and find its long term forecasting perfor mance to be more accurate than historical forecasts but less accurate than long memory forecasts

rise of latecomers and catch up cycles in the world steel industry abstract this study analyzes the sources of changes in industrial leadership and catch up by latecomers in the world steel industry since world war ii the shift of leadership from the united states to japan in 1980 and the subsequent rise of korea with posco s output surpassing that of nippon steel in 1998 is explained on the basis of a single theoretical framework we rely on the neo schumpeterian concepts of sectoral innovation systems and windows of opportunity for latecomers in catching up with leading countries these windows include changing generations of technologies business cycles and demand shifts and government regulations and other interventions japan realized a path creating catch up by taking advantage of the opportunity window associated with the emergence of new technologies entering as a state owned enterprise posco engaged in stage skipping catch up by utilizing the downturn as a window of opportunity to pay low prices for expanding its facilities and updating its technologies

stages of diversification this paper studies the evolution of sectoral concentration in relation to the level of per capita income we show that various measures of sectoral concentration follow a u shaped pattern across a wide variety of data sources countries first diversify in the sense that economic activity is spread more equally across sectors but there exists relatively late in the development process a point at which they start specializing again we discuss this finding in light of existing theories of trade and growth which generally predict a monotonic relationship between income and diversification

on the persistence of leadership or leapfrogging in international trade when two countries starting from different quality levels reflecting different conditions on domestic market demands open to trade two possible equilibria arise in the first the quality leader maintains its position in the second leapfrogging occurs however the latter is possible only if the initial quality gap is not too wide further when the risk dominance criterion is used only the former equilibrium is selected these results suggest that initial conditions such as domestic market size or home demand preferences are important factors in determining relative competitiveness of firms in international markets

the ability of earnings to predict future earnings and cash flow this paper examines the value relevance of earnings by testing their ability to predict two future benefits of equity investment earnings and cash flow from operations previous research discussed below has given an incomplete view of earnings predictive ability as it has typically focused on short horizons while ignoring the longer term benefits that are also valued as in ohlson 1990 i test earnings ability to predict future earnings and future cash flow from operations1 one through eight years ahead using annual data from

technology adoption learning spillovers and the optimal duration of patent based monopolies abstract the paper analyses an often overlooked aspect of the patent system namely that a monopoly franchise for production of a new good could lead to a second best welfare optimum event when there was no future prospect of inventions being induced by the patent it is shown that a paten may improve economic welfare relative to a regime of competitive supply when there are learning externalities or spillovers from experience in the process of production comparative statics show that stronger learning effects at low levels of experience tend to strengthen the case for ex post grant of a monopoly franchise

economic development as self discovery in the presence of uncertainty about what a country can be good at producing there can be great social value to discovering costs of domestic activities because such discoveries can be easily imitated we develop a general equilibrium framework for a small open economy to clarify the analytical and normative issues we highlight two failures of the laissez faire outcome there is too little investment and entrepreneurship ex ante and too much production diversification ex post optimal policy consists of counteracting these distortions to encourage investments in the modern sector ex ante but to rationalize production ex post we provide some informal evidence on the building blocks of our model

some economic determinants of time series properties of earnings abstract the earnings time series literature in accounting focuses on the statistical characteristics of the processes which generate corporate earnings in order to further our understanding of earnings behavior this study investigates the question whether inter firm differences in these statistical characteristics autocorrelations and variances of earnings changes can be explained by economic factors various relationships between economic factors and earnings behavior are derived from the economic literature and examined empirically in this study findings indicate that autocorrelations and variability of annual earnings and earnings over equity changes are systematically associated with the following factors the type of product the height of industry barriers to entry a surrogate for degree of competition the degree of capital intensity operating leverage and the firm size

public policies and the art of catching up matching the historical evidence with a multicountry agent based model in this paper we study the effects of industrial policies on international convergence using a multi country agent based model which builds upon dosi et al 2019b the model features a group of microfounded economies with evolving industries populated by heterogeneous firms that compete in international markets in each country technological change is driven by firms activities of search and innovation while aggregate demand formation and distribution follows keynesian dynamics interactions among countries take place via trade flows and international technological imitation we employ the model to assess the different strategies that laggard countries can adopt to catch up with leaders market friendly policies industrial policies targeting the development of firms capabilities and rd protectionist policies focusing on tariffs only we find that markets cannot do the magic in absence of government interventions laggards will continue to fall behind on the contrary industrial policies can successfully drive international convergence among leaders and laggards while protectionism alone is not necessary to support catching up and countries get stuck in a sort of middle income trap finally in a global trade war where developed economies impose retaliatory tariffs both laggards and leaders are worse off and world productivity growth slows down

a reexamination of the persistence of accruals and cash flows we reexamine prior studies conclusion that accruals are less persistent than cash focusing on two aspects of persistence that are crucial to determining its properties the first time specificity refers to the fact that persistence describes how current period shocks to income translate into next period income traditional measures of accruals are however functions of current and non current period transactions we show that the inclusion of non current period transactions leads to a downward upward bias on the persistence of accruals cash flows we develop alternative measures of accruals and cash flows that are not misaligned and show that the differential persistence of cash flows over accruals is more than 70 smaller using these measures the second aspect of persistence is firm specificity specifically we evaluate persistence using firm specific estimations and find that more than 85 of firms show no evidence that accruals are less persistent than cash flows

models of technology diffusion abstract the literature on new technology diffusion is vast and it spills over many conventional disciplinary boundaries this paper surveys the literature by focusing on alternative explanations of the dominant stylized fact that the usage of new technologies over time typically follows an s curve the most commonly found model which is used to account for this model is the so called epidemic model which builds on the premise that what limits the speed of usage is the lack of information available about the new technology how to use it and what it does the leading alternate model is often called the probit model which follows from the premise that different firms with different goals and abilities are likely to want to adopt the new technology at different times in this model diffusion occurs as firms of different types gradually adopt it there are actually many ways to generate an s curve and the third class of models which we examine are models of density dependence popularized by population ecologists in these models the twin forces of legitimation and competition help to establish new technologies and then ultimately limit their take up finally we look at models in which the initial choice between different variants of the new technology affect the subsequent diffusion speed of the chosen technology such models often rely on information cascades which drive herd like adoption behaviour when a particular variant is finally selected

sectoral systems of innovation and production the concept sectoral system of innovation and production provides a multidimensional integrated and dynamic view of sectors it is proposed that a sectoral system is a set of products and the set of agents carrying out market and non market interactions for the creation production and sale of those products a sectoral systems has a specific knowledge base technologies inputs and demand agents are individuals and organizations at various levels of aggregation they interact through processes of communication exchange co operation competition and command and these interactions are shaped by institutions a sectoral system undergoes change and transformation through the co evolution of its various elements 2002 elsevier science b v all rights reserved

entry exit and diffusion with learning by doing early entry has the advantage of higher revenues per unit of output early on late entry has the benefit of learning from the experience of earlier entrants and hence lower production costs the advantages are balanced off in a continuous time perfect foresight equilibrium competition generates s shaped diffusion and staggered entry and exit a monopolist will innovate less than a competitive industry but the innovation that he does do he will do sooner copyright 1989 by american economic association

efficiency wage models of unemployment keynesian economists hold it to be self evident that business cycles are characterized by involuntary unemployment but construction of a model of the cycle with involuntary unemployment faces the obvious difficulty of explaining why the labor market does not clear involuntarily unemployed people by definition want to work at less than the going wage rate why don t firms cut wages thereby increasing profits

the collapse of the fixed exchange rate regime with sticky wages and imperfect substitutability between domestic and foreign bonds abstract the paper extends the recent literature on balance of payments crises by allowing real effects to be connected with them the collapse of the fixed exchange rate regime and the dynamics associated with this regime shift are studied in addition the effects of a fiscal expansion under the fixed exchange rate regime are studied taking into account the fact that the viability of the regime is policy dependent

on the persistence and pricing of industry wide and firm specific earnings cash flows and accruals economic theory suggests that the industry wide component of firm performance is more persistent than the firm specific component this paper tests whether investors fail to fully appreciate the relatively higher lower persistence of industry wide firm specific earnings consistent with predictions we find that the industry wide component of earnings is a significant predictor of future stock returns we show that this form of mispricing is distinct from the accrual anomaly sloan 1996 a hedge portfolio trading strategy that exploits signals from both industry fundamentals and accounting accruals generates abnormal returns in excess of either strategy alone additional evidence suggests that the market underreacts overreacts to industry wide cash flows firm specific accruals but correctly prices both industry wide accruals and firm specific cash flows

a simple dynamic model of uneven development and overtaking this paper extends the brezis et al 1993 ricardian leapfrogging model by introducing geographically mobile capital and allowing for a wider variety of development patterns in a two region economy localised learning by doing causes specialisation and uneven development technological change reverses the existing development pattern if the new technology locates in the low wage region however the development pattern may also be reinforced if spillovers between the old and the new technology make the leading region a more attractive location capital flows are explicitly analysed and it is furthermore shown that inter regional transfers may reduce the chance of take off

learning and catching up in different sectoral systems evidence from six industries this article claims that catching up is a learning process that requires a long time and often differs significantly across economic sectors in the factors leading to success or failure we support these claims by examining the major factors affecting catching up by several countries in six industries india and brazil for pharmaceuticals korea china and brazil for autos india ireland israel china brazil and other countries for software korea and india for telecommunication equipment korea taiwan china and malaysia for semiconductors and china brazil costa rica and nigeria for some agricultural crops the article uses the framework of sectoral systems and argues that there are significant differences across these sectors in the variables and mechanisms involved in catching up the article identifies the common factors affecting catching up and the main differences across sectoral systems it then discusses the interplay between national systems and sectoral systems copyright 2011 the author 2011 published by oxford university press on behalf of associazione icc all rights reserved oxford university press

globalisation of the world s wine markets the research on which the paper draws was funded by the grape and wine research and development corporation the rural industries research and development corporation and the australian research council