contracts as a barrier to entry it is shown that an incumbent seller who faces a threat of entry into his or her market will sign long term contracts that prevent the entry of some lower cost producers even though they do not preclude entry completely moreover when a seller possesses superior information about the likelihood of entry it is shown that the length of the contract may act as a signal of the true probability of entry

trading for the future signaling in permit markets abstract permit markets are celebrated as a policy instrument since they allow i firms to equalize marginal costs through trade and ii the regulator to distribute the burden in a politically desirable way these two concerns however may conflict in a dynamic setting anticipating the regulator s future desire to give more permits to firms that appear to need them firms purchase permits to signal their need this raises the price above marginal costs and the market becomes inefficient if the social cost of pollution is high and the government intervenes frequently in the market the distortions are greater than the gains from trade and non tradable permits are better the analysis helps to understand permit markets and how they should be designed

making sense of the competitiveness debate the debate over national competitiveness is marked by some basic misperceptions with few exceptions those who use the term have a crude essentially mercantilist view of world trade in which competition among nations is just like competition between corporations not only do the authors and readers of reports on national competitiveness usually not understand comparative advantage they are unaware of the most basic adding up constraints economists however find it hard to believe that seemingly well informed people can really be this naive and assume that there must be more sophisticated ideas lying behind what they say the rationales offered by economists in turn offer false comfort to the would be sophisticates who like the term competitiveness they believe that they have transcended conventional economic theory when the fact is that they have failed to comprehend it in short the actual level of discussion is lower than any of the participants imagines copyright 1996 by oxford university press

upgrading in global value chains lessons from latin american clusters it has been shown that clustering helps local enterprises in industrial districts overcome growth constraints and compete in distant markets in advanced and less developed countries nevertheless recent contributions have stressed that more attention needs to be paid to external linkages and to the role played by global buyers to foster upgrading at cluster levels in this study we contribute to this debate focusing on the analysis of the relationships existing between clustering global value chains upgrading and sectoral patterns of innovation in latin america we find that sectoral specificities matter and influence the mode and the extent of upgrading in clusters integrated in global value chains

benchmarking in the european union emissions trading system abatement incentives abstract this paper investigates abatement incentives for allowance allocation based on output and sector specific benchmarks here called output based allocation or benchmarking special attention is given to updated allocation and we assume that allowances can be traded with other sectors open cap we confirm earlier studies that output based allocation based on ex ante data provide the same abatement incentives as auction or grandfathering and also confirm that output based allocation with updated output and ex ante benchmarks provides as high abatement incentives as auction but constitutes a production subsidy however we also find that benchmarking with updated output and updated benchmarks reduces abatement incentives somewhat but less so than updated grandfathering an allocation rule where the sector cap is prescribed ex ante for instance based on historic emissions and distributed to installations in proportion to their updated production preserves full abatement incentives and avoids some of the costs associated with the determination of benchmarks however this rule also constitutes a production subsidy which decreases with industry concentration if a sector is split into smaller groups each with one benchmark per sub sector benchmarking evolves toward grandfathering since benchmarking is conditioned on production this allocation method protects production from leakage i e migrating to areas where firms face no emissions cost this may actually be the most compelling reason for choosing benchmarking

exporting manufactures human resources natural resources and trade policy whether a country s exports consist mainly of manufactures or mainly of primary products depends fundamentally on the skills of its labour force relative to the extent of its natural resources this proposition derived from a modified version of heckscher ohlin theory is supported by a strong cross country correlation between the manufactured primary export ratio and the skill land ratio cross country variation in trade policies is now only a minor cause of variation in the manufactured primary export ratio

moving innovation systems research to the next level towards an integrative agenda the concept of innovation systems has been a guiding paradigm of innovation research and strongly influenced research and innovation policy since the early 1990s in spite of this success criticisms have been raised in recent years about whether it is still a suitable framework for addressing the innovation related challenges of the future in the present paper we claim that systemic explanations of innovation success have still a very important role to play in order to address the rising criticism however we have to reconsider the conceptual core of the family of innovation systems is approaches and sketch out a path for renewal the paper retraces the conceptual roots of is approaches assesses their uptake in different policy circles around the world discusses the conceptual core and explanatory ambition and finally formulates a future oriented research agenda for a more integrative innovation systems framework

the private sector in agricultural research systems will it fill the gap abstract this article examines whether the private sector can fill the gap of declining public research in developing countries economic theory suggests private for profit research will focus on areas where returns to research are appropriable and reasonable profits are generated actual private for profit research activities concentrate on countries and industries with large markets appropriable returns strong science infrastructure and favorable government policies governments and donors can promote private research by easing constraints to private entry and operations but if governments stop funding research on public goods and technologies with limited market potential the private sector is unlikely to fill the gap completely

sources procedures and microeconomic effects of innovation fabio arcangeli paul david frank engelman christopher freeman massimo moggi richard nelson luigi orsenigo nathan rosenberg michele salvati g n von tunzelman two anonymous referees and the participants at the meeting of the committee on distribution growth and technical progress of the italian national research council cnr rome november 16 1985 have helped with various redraftings a particularly grateful acknowledgment is for the insightful and patient help of moses abramovitz this work has been undertaken at the science policy research unit spru university of sussex as part of the research program of the designated research centre sponsored by the economic and social research council esrc earlier support to the research that led to this paper by the italian national research council cnr is also gratefully acknowledged the statistical research has been undertaken with the assistance of stephano brioschi ilaria fornari and giovannu prennushi

technological regimes and schumpeterian patterns of innovation this paper proposes that the specific pattern of innovative activities in an industry can be explained as the outcome of different technological learning regimes a technological regime is defined by the particular combination of technological opportunities appropriability of innovations cumulativeness of technical advances and properties of the knowledge base building upon the distinction between schumpeter mark i and schumpeter mark ii industries this paper provides empirical estimates of the relationships between indicators of the schumpeterian patterns of innovation concentration of innovative activities stability in the hierarchy of innovators and importance of new innovators and indicators of the variables defining technological regimes

collective learning in global diffusion spreading quality standards in a developing country cluster this research analyzes how foreign organizational practices diffuse among indigenous enterprises in a developing economy it highlights the collective knowledge building process as central for understanding diffusion based on a longitudinal case study of a cluster of dairy producers in nicaragua a representative low income country it looks at cross border diffusion in conditions that differ significantly from advanced economies the current literature that highlights institutional pressures driving global spread of practices has limits for capturing a significant dynamic caused by increased integration of markets and production by focusing on production organization and practices in a late developing context this paper explains the intertwined process of spreading new standards and changing existing local practices by elaborating the relationship among building collective capabilities learning and standards diffusion this study enriches current views on institutional effects and adds to the practice based literature as well as to the work on developing economy firms in organizational research

competitiveness indices and developing countries an economic evaluation of the global competitiveness report developing countries policy makers worry about national competitiveness and closely watch indices ranking international competitive performance this paper analyzes from a development economics perspective if competitiveness is a legitimate concern and if the leading indices deserve the attention they get it assesses the best known index the global competitiveness report of the world economic forum and finds deficiencies at several levels its definitions are too broad the approach biased and the methodology flawed many qualitative measures are vague redundant or wrong these weak theoretical and empirical foundations reduce the value of the indices for analytical or policy purposes

adaptation bridging and firm upgrading how non market institutions and mncs facilitate knowledge recombination in emerging markets how do multinational corporation mnc subsidiaries and local institutions help or hinder emerging market suppliers to upgrade their capabilities drawing on insights from economic sociology and comparative capitalism we posit that in these contexts of scarce resources and inferior technologies upgrading depends on the ways in which organizational and institutional networks enable firms to integrate imported advanced knowledge with local applied knowledge using a combination of field work and unique survey data of argentine auto parts suppliers we show that process upgrading improves significantly when suppliers have ties to seemingly resource weak non market institutions that improve access to a variety of experiential knowledge these institutions act as knowledge bridges helping local firms tap into diverse applied knowledge embedded in isolated industrial districts and adapt frontier advanced practices to their local conditions moreover suppliers appear to benefit from ties to mnc subsidiaries only when they simultaneously collaborate with certain non market institutions that help them recombine experiential knowledge with the standards gained from the subsidiaries

which way is up in upgrading trajectories of change in the value chain for south african wine summary global value chain gvc analysis uses the concept of upgrading to highlight paths for developing country firms to move up the value chain usually through the lenses of four categories product process functional and inter sectoral upgrading the implicit normative expectation is that these firms move toward producing higher value added products and or take on more sophisticated functions along a value chain in this article upgrading is approached more broadly as reaching a better deal including a balance between rewards and risk the case study of south african wine shows that better product quality improved processes and some functional upgrading have co existed with processes of downgrading higher risks and limited rewards especially in traditional export markets a reflection on further conceptual development and directions for empirical research is also provided

industrial complexes in mexico implications for regional industrial policy based on related variety and smart specialization abstractindustrial complexes in mexico implications for regional industrial policy based on related variety and smart specialization regional studies the goal of this paper is to identify and analyze the location of industrial complexes in mexico with the purpose of providing an analytical foundation for the construction of regionally based industrial policies based on the principles of related variety and smart specialization that complement current national level policy efforts to promote investment and stabilize the real exchange rate the results of this analysis highlight distinct complexes located in particular portions of the country the location of these complexes points to several regional policy options that will better address regional heterogeneities in the distribution of industry employment as well as regional differences in workforce competencies infrastructure quality and extra regional linkages than have national level industrial policies

the impact of china s carbon allowance allocation rules on the product prices and emission reduction behaviors of ets covered enterprises abstract it is an important task for china to allocate carbon emission allowance to realize its carbon reduction target and establish carbon trading market china has designed several allocation rules within seven pilot regions what influence those rules may cause is closely related with the enthusiasm of emission trading scheme ets covered enterprises participation in carbon market and more importantly with the mechanism design and sustainable development of carbon market for this purpose the multi stage profit model is developed to analyze the ets covered enterprises product prices and emission reduction behaviors under different allocation rules the results show that first under the rules of grandfathering self declaration and auctioning when deciding the optimal product price and optimal carbon emission reduction those enterprises may focus on maximizing current stage profit however under the rule of benchmarking those enterprises may care more about the impact of current decisions on the profit in next stage second the optimal product price policy is positively correlated with the price of the same kind products consumers low carbon awareness and government subsidy finally along with the increase of carbon price consumers low carbon awareness and government subsidy and the decrease of carbon emission cap those enterprises tend to reduce carbon emissions

comparisons of initial carbon allowance allocation rules in an o2o retail supply chain with the cap and trade regulation abstract this paper focuses on an o2o retail supply chain in the context of low carbon environment the decision models are constructed under three cases without cap and trade regulation cap and trade regulation based on grandfathering mechanism and cap and trade regulation based on benchmarking mechanism the emission reduction strategies of the supply chain members in the three cases are then discussed the paper compares the effects of the grandfathering and benchmarking mechanisms on the firm s decisions profits and social welfare firstly the results show that the unit carbon quota plays a decisive role in firm s decisions compared with the grandfathering methodology the benchmarking one can more effectively push manufacturers to produce low carbon products and motivate retailers to promote low carbon products secondly it is profitable for the retailer to cooperate with a manufacturer who has lower emission reduction cost simultaneously the retailer will prefer the benchmarking mechanism to the grandfathering mechanism thirdly for the government it is beneficial to use grandfathering mechanism for low carbon emission firms and use benchmarking mechanism for high carbon emission firms also the paper provides government and firms with conditions where the benchmarking allocation method is more suitable for sustainable development the government s decision on benchmarks is a critical factor in maximizing the social welfare

enforcing higher labor standards within developing country value chains consequences for mnes and informal actors in a dual economy the 2013 collapse of the rana plaza building in dhaka bangladesh led external stakeholders to insist on higher labor standards in apparel global value chains gvcs stakeholders now expect mnes to take full chain responsibility however the increased monitoring and enforcement costs of a large network of suppliers have been non trivial mnes instead implement a cascading compliance approach coupled with a partial re internalization elevated costs are further exacerbated in developing countries where the informal and formal sectors are linked and cost competitiveness greatly depends on this duality monitoring actors in the informal sector is difficult and few informal actors can achieve compliance gvcs have therefore reduced informal sector engagement by excluding non compliant actors and investing in greater automation by seeking to strictly enforce compliance mnes are attenuating some of the positive effects of mne investment particularly the prospects for employment creation especially among women and enterprise growth in the informal sector i discuss how these observations might inform other cross disciplinary work in development ethics and sociology finally i note implications for ib theory from the disparities between the ownership control and responsibility boundaries of the firm

carbon emissions trading scheme exploration in china a multi agent based model abstract to develop a low carbon economy china launched seven pilot programs for carbon emissions trading cet in 2011 and plans to establish a nationwide cet mechanism in 2015 this paper formulated a multi agent based model to investigate the impacts of different cet designs in order to find the most appropriate one for china the proposed bottom up model includes all main economic agents in a general equilibrium framework the simulation results indicate that 1 cet would effectively reduce carbon emissions with a certain negative impact on the economy 2 as for allowance allocation the grandfathering rule is relatively moderate while the benchmarking rule is more aggressive 3 as for the carbon price when the price level in the secondary cet market is regulated to be around rmb 40 per metric ton a satisfactory emission mitigation effect can be obtained 4 the penalty rate is suggested to be carefully designed to balance the economy development and mitigation effect and 5 subsidy policy for energy technology improvement can effectively reduce carbon emissions without an additional negative impact on the economy the results also indicate that the proposed novel model is a promising tool for cet policy making and analyses

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

emissions trading with updated allocation effects on entry exit and distribution allocation of emissions allowances may have significant distributional and efficiency effects it is well known that cost efficiency may be achieved if allowances are auctioned or distributed in a lump sum manner e g based on emissions levels before the start of the system grandfathering bohringer and lange eur econ rev 49 2041 2055 2005 show that a cost effective outcome can also be achieved if the base year for allocation is continually updated updating given that banking and borrowing are prohibited in this paper we examine whether updating alters the entry and exit conditions for firms compared to grandfathering and how it affects profits for new and existing firms we find that the two schemes function surprisingly similar first the incentives to entry and exit are identical second the total value of free quotas to existing firms based on emissions before the system starts is also identical without any auctioning with updating initial claims for free allowances have a shorter lifetime compared to grandfathering but quota prices are higher as firms anticipate the effect of current emissions on future claims to free allowances the two effects exactly cancel each other out if there is some combination of auction and free allocation the total value of free quotas will always be highest under grandfathering if the auction rate is the same entry and exit incentives are still equal

cooperation between rivals informal know how trading it has long been recognized that it is difficult for an innovating firm to fully appropriate the benefits arising from its innovations and that desired research might therefore not be performed nelson 1959 pp 297 306 one sometimes possible solution to this dilemma is cooperative r d conducted by firms who share the costs and benefits of particular r d projects johnson 1973

subcontracting in italian industry labour division firm growth and the north south divide giunta a nifo a et scalera d subcontracting in italian industry labour division firm growth and the north south divide regional studies the aim of this paper is to investigate the impact of subcontracting on italian manufacturing firms growth in the second half of the 1990s the main results are 1 producing as subcontractors does not penalize firms but can be a positive determinant of growth especially when coupled with the propensity to innovate 2 since a non linear relationship between growth and subcontracting emerges an organizational mode not fully specialized in either subcontracting activity or direct sales may be optimal and 3 the deep dualism of the italian industrial structure is confirmed as southern subcontractors show poorer performances and slower growth giunta a nifo a and scalera d 90 1 2 3

global value chains meet innovation systems are there learning opportunities for developing countries summary the innovation systems is literature tends not to emphasize the crucial impact of international knowledge and innovation exchange and collaboration through for example inter firm and intra firm networks and global value chains gvc in developing countries this aspect is crucial with integration in gvc playing a growing and very important role in accessing knowledge and enhancing learning and innovation however there is no agreement in the literature about how innovation systems and gvc interact and how this interaction is likely to affect enterprise learning three main conclusions emerge from the theoretical analysis and evidence presented in this paper first learning mechanisms can vary widely within the various forms of governance of gvc they can be the result of the pressure to achieve international standards or be facilitated by direct involvement of the value chain leaders when the suppliers competence is low and the risk of failure to comply is high when the competences of the actors in the value chain are complementary learning is mutual and is based on intense face to face interactions second as we open is to foreign sources of knowledge the relationship between gvcs and is is nonlinear and endogenous and mutually affecting on the basis of our model we would expect a well structured and efficient innovation system would help to reduce transaction complexity and enable transactions based on relational forms of gvc governance third the internal governance of gvc is a dynamic phenomenon that is subject to continuous adjustments and changes and the nature of the is affects this co evolution 2011 elsevier ltd all rights reserved

does emission permit allocation affect co2 cost pass through a theoretical analysis abstract carbon emissions trading may result in co 2 cost pass through and its rate is influenced by a number of factors this paper theoretically investigates how emission permit allocation affects co 2 cost pass through rate by developing a nash cournot oligopolistic market equilibrium model we find that the derived co 2 cost pass through rates are consistent when grandfathering and auctioning rules are used for permit allocation which are higher than that for benchmarking rule it has also been found that the magnitude of co 2 cost pass through rate is relevant to the type of definition product market structure and average carbon intensity of the industry we suggest that policy makers first use benchmarking rule to attract firms to participate at the early stage of emissions trading system ets and then take auctioning rule when ets is well developed

a comparison of clustered and dispersed firms in the small scale clothing industry of lima abstract this study provides empirical evidence on the strength and type of clustering advantages contrasting the performance of small clustered firms with several control groups of dispersed producers in the garment industry of lima peru repeated measurement facilitates an evaluation of the ability of clustered firms to respond to pressures arising from the swift trade liberalization carried out in peru after 1990 the evidence suggests that clustering advantages have been significant particularly for the smallest firms cost reductions and information spillovers are the dominant type of advantages these are however passive advantages of clustering they largely arise at the level of transactions in goods and services and to a lesser extent in the transformation of inputs into output while significant these advantages are insufficient for sustaining competitiveness in the liberalized markets the garment cluster runs the risk of entropic death if information spillovers remain limited in origin and diversity and if interfirm cooperation does not cross local borders

global connectedness and local innovation in industrial clusters in today s knowledge economy clusters are a key driver of a country s competitiveness yet a cluster s technological base is now more than ever influenced by constituent firms actions to tap into distant knowledge sources drawing on a social network perspective and distinguishing between horizontal versus vertical organization based linkages we explore the effects of a cluster s connectedness to foreign locations on its innovation performance we show that improvements in horizontal and vertical connectedness both stimulate a cluster s innovation performance but that their relative effects vary across cluster types innovation in knowledge intensive clusters disproportionately benefits from enhancements in their constituent firms horizontal connectedness to foreign knowledge hotspots innovation in labor intensive clusters mostly gains from stronger vertical connections by their firms to central value chain players abroad we discuss the implications of our findings for research on global knowledge sourcing and cluster upgrading

business perspective to the national greenhouse gases emissions trading scheme a survey of cement companies in china abstract applying data gathered from 105 cement companies this paper gives an analysis of how business views the upcoming national greenhouse gases emissions trading scheme in china despite a good overall understanding the surveyed companies have not been able to prepare properly for the implementation of this policy they still need training to enhance their related capacity probably due to strict competition it is difficult for cement companies to pass the policy cost on to their clients the sampled companies intend to make self mitigation efforts for compliance it is highly likely that cement companies would mitigate emissions themselves if the carbon price is higher than 108 of the self abatement cost the surveyed cement companies anticipate an increase in the carbon price in china from about 35 yuan t co2 in 2020 to 60 yuan t co2 in 2025 and 90 yuan t co2 by 2030 the analysis provides reference for the smooth introduction and effective implementation of national carbon market in china from the business viewpoint

collective efficiency growth path for small scale industry this study is concerned with the growth of small local industry in developing countries and explores one particular route for understanding and fostering such growth it focuses on the clustering of firms and the competitive advantage which they derive from local external economies and joint action captured in the concept of collective efficiency following a conceptual discussion the article explores the economic and institutional conditions which enhance or hinder collective efficiency this includes a case study which suggests that responding to opportunity and crisis requires shifting from mere reliance on external economies to joint action and from ascribed to earned trust

incentives and prices in an emissions trading scheme with updating abstract emissions trading schemes where allocations are based on updated baseline emissions give firms less incentive to reduce emissions for a given quota or allowance price nevertheless according to bohringer and lange on the design of optimal grandfathering schemes for emission allowances europ econ rev 49 2005 2041 2055 such allocation schemes are cost effective if the system is closed and allocation rules are identical across firms in this paper we show that the cost effective solution may be infeasible if marginal abatement costs grow too fast moreover if a price cap or banking borrowing is introduced the abatement profile is no longer the same as in the case with an auction or lump sum allocation in addition we show that with allocation based on updated emissions the quota price will always exceed marginal abatement costs possibly misguiding policy makers and investors about abatement costs numerical simulations indicate that the quota price most likely will be several times higher than marginal abatement costs unless a significant share of allowances is auctioned

designing an emissions trading scheme for china with a dynamic computable general equilibrium model abstract to fulfill its copenhagen pledges to control carbon emissions and mitigate climate change china plans to establish a nationwide emissions trading scheme ets in 2016 this paper develops a multi sector dynamic computable general equilibrium model with an ets module to study the appropriate ets policy design including a carbon cap permit allocation and supplementary policies e g penalty policies and subsidy policies the main results are as follows 1 to achieve china s copenhagen pledge the equilibrium nationwide carbon price is observed to be between 36 and 40 rmb yuan per metric ton 2 the ets policy has a cost effective mitigation effect by improving china s production and energy structures with relatively little economic harm 3 various ets sub policies should be carefully designed to balance economic growth and carbon mitigation in particular the carbon cap should be set according to china s copenhagen pledge a relatively large distribution ratio of free permits the output based grandfathering rule for free permits a penalty price on illegitimate emissions slightly above the carbon price and a sufficient subsidy from ets revenue are strongly recommended in the early stages to avoid significant economic loss these designs can be adjusted in later stages to enhance the mitigation effect

universities in emerging economies bridging local industry with international science evidence from chile and south africa emerging economies are now becoming more central in global competition to achieve this many countries have invested to develop into knowledge economies universities have a role to play in this transformation both as generators of new knowledge as well as actors that can interact with the local industry and contribute to its innovativeness this paper explores using two case studies in the chilean and south african wine industry how universities connect international science to domestic industry it finds that this connection occurs through a few bridging researchers who display particular characteristics compared with their colleagues bridging researchers are more talented than average researchers both because they publish more in international journals and or because they have received awards for their academic work this finding may have significant policy implications as policies aimed at strengthening the skills of these researchers should be welcomed in catching up industries copyright the author 2012 published by oxford university press on behalf of the cambridge political economy society all rights reserved oxford university press

structural reforms and technological behaviour abstract the opening up to foreign competition the deregulation of a vast array of markets and the privatization of public sector firms have been inducing major changes in the structure and behaviour of the latin american economies the aim of this paper is to describe some of these changes and to identify the new patterns of firm behavior the new institutional environment and the new policy agenda gradually emerging in the region in the field of science and technology as a result of recent trade liberalization and market deregulation efforts

network composition collaborative ties and upgrading in emerging market firms lessons from the argentine autoparts sector what types of relational and institutional mechanisms shape knowledge flows and the upgrading capabilities of emerging market firms in the face of economic liberalization we analyze the argentine autoparts sector to distinguish the relative impact of different types of network relationships on a firm s process and product upgrading a few social ties to international assemblers appear to be most beneficial for local suppliers although they may be insufficient to compensate fully for the negative effect of being located in a lower tier supplier customer relationships that are part of regular disciplined discussions for product and process improvements appear to be especially beneficial for upgrading

a ten year rule to guide the allocation of eu emission allowances abstract member states in the european union eu are responsible for national allocation plans governing the initial distribution of emission allowances in the co2 emission trading system including rules governing allocations to installations that close and to new entrants the european commission has provided guidelines to discourage the use of allocation methodologies that provide incentives affecting firms compliance behavior for example by rewarding one type of compliance investment over another we find that the treatment of closures and new entrants by member states is inconsistent with the general guidelines provided by the eu we propose stronger eu guidance regarding closures and new entrants a more precise compensation criterion on which to justify free allocations and a ten year rule as a component of future eu policy that can guide a transition from current practice to an approach that places greater weight on efficiency

economic implications of alternative allocation schemes for emission allowances political feasibility of emission trading systems may crucially depend on the free initial allocation of emission allowances to energy intensive industries in order to ameliorate adverse production and employment effects we investigate the potential trade off between such compensation and economic efficiency for alternative allocation rules where emission allowances are based on either emissions or output based on analytical partial equilibrium and numerical general equilibrium analysis we show that in open trading systems the trade off becomes the more severe the higher the international permit price is whenever the permit price can be considered exogenous to firms or industries the output based allocation rule is distinctly less costly than the emission based rule to preserve output and employment in energy intensive sectors the reason is that emission based allocation of allowances not only provides an implicit output subsidy but also lowers the effective price of emission inputs to regulated firms emissionbased allocation is particularly expensive towards higher international permit prices where the implicit subsidies to emission use in energy intensive sectors produce drastic efficiency losses since they imply high expenditures for carbon permit imports rather than high net revenues from efficient carbon permit exports

gatekeepers in regional networks of innovators the internal density of a local network is said to increase the regionspecific knowledge stock and might lead to a comparative advantage however it might also lead to a lock in situation if local trajectories are directed towards inferior solutions accordingly it is argued that successful clusters are characterised by the existence of gatekeepers i e actors that generate novelty by drawing on local and external knowledge we attempt to answer questions related to the role and characteristics of gatekeepers within regional innovation systems by applying social network analysis based on patent data for four east german regions the regional networks appear to be significantly dierent with respect to the overall degree of interaction and with respect to their relative outward orientation concerning the characteristics of gatekeepers we find that size does not play the major role for being a gatekeeper it is rather absorptive capacity that matters for gatekeepers it also shows that public research organisations serve the functions of a gatekeeper to a higher degree than private actors

comparison of private incentive mechanisms for improving sustainability of filipino tuna fisheries this paper analyzes the influence of three private incentive mechanisms over decision making related to improved sustainability of fishing practices in filipino tuna fisheries the three mechanisms compared are the world wildlife fund for nature s fishery improvement project model marine stewardship council certification and the international seafood sustainability foundation pro active vessel register the main question addressed in this paper is how and to what extent the private incentive mechanisms support the development of fisher capabilities to respond to the requirements set out by these mechanisms applying a global value chain approach to analyze results collected from key actors involved in philippine tuna fishers contributing to both domestic and regional economic development in the western pacific we explore the structure and function of these private incentive mechanisms in achieving both environmental and economic development outcomes our results show that these private incentive mechanisms deliver different direct and indirect incentives for changing to more sustainable fishing practices and that the success of these mechanisms is dependent on the extent to which the mechanisms support the development of target fisher capabilities to comply with their sustainability requirements we conclude that the future success of these incentive mechanisms depends for a large part on stricter sustainability requirements but also on the capacity of the mechanisms to incentivize the inclusion of more developing country fishers these findings contribute to a wider understanding of how the capabilities of developing country producers are influenced by their relationship with chain and non chain actors and with the wide institutional arrangements that the producers operate in

what will china s carbon emission trading market affect with only electricity sector involvement a cge based study abstract on december 29 2017 china s carbon trading scheme ets was officially launched and it may be the largest emission trading platform in the world this paper establishes 5 counter measured scenarios based on the recently launched china s national ets market and constructs a dynamic recursive computable general equilibrium model to study the impact of national ets on the economy energy and environment we find that the national ets will have a negative impact on gdp by 0 19 1 44 the national ets can significantly increase the price of electricity however the increase in the prices of other commodities will be much lower than that of electricity as long as the mechanism of the ets market remains unchanged emission reduction per year will increase linearly economic output and co2 emission are sensitive to annual decline factor adf this paper argues that china s national ets market is an effective tool to reduce co2 emission and we suggest that adf could be 0 5 when allocating carbon allowance for the electricity sector this could balance economic output and co2 reduction also it is easy to achieve the goal of double control total amount and intensity in china

aligning renewable energy targets with carbon emissions trading to achieve china s indcs a general equilibrium assessment abstract this study evaluates the economic impact of achieving china s intended nationally determined contributions indcs through emissions trading scheme ets and renewable energy policy using a computable general equilibrium cge model we explored the behavior of different sectors in the carbon market carbon trade amount carbon price and the economic impact of an emissions cap and trade on the employment and gdp the results demonstrate that the electricity and aviation sectors have relatively higher mitigation costs and tend to be the main buyers of the carbon credits whereas chemicals nonmetal production iron and steel paper and other manufacturing sectors have relatively lower mitigation costs and tend to be the main sellers carbon trading price and market scale are closely related to various factors such as the emissions quota allocation scheme among sectors coverage of participating sectors and the level of renewable energy development emission trading is also confirmed to be an economically efficient approach that contributes to the achievement of emission reduction targets with less economic cost in order to make full use of this approach policy maker should assign an appropriate emissions quota allocation scheme extend coverage of various sectors and promote the expansion of low carbon technologies such as renewable energy

the blue revolution in asia upgrading and governance in aquaculture value chains summary in this article we examine the upgrading trajectories of selected aquaculture value chains in four asian countries and the links between upgrading and three factors of value chain governance coordination mechanisms types of drivers and domestic regulation we find instances of improving products processes and value chain coordination while moving up the value chain is rare we also find that the type of value chain driver and the quality of the domestic regulatory framework are main facilitators of upgrading we conclude by highlighting lessons on the potential limits and risks of upgrading the blue revolution in asia

the effect of allocation above emissions and price uncertainty on abatement investments under the eu ets abstract the european union emission trading scheme eu ets by far the largest in its kind has inspired several other carbon markets in the world based on interviews with plant managers from almost all belgian ceramics lime and cement producers this study describes how manager s perceptions on emission trading affected investment decisions in line with behavioural economics reference dependence is found to explain why free allocation below emissions creates a greater incentive to abatement investment compared to allocation above emissions in the ceramics sector allocation above emissions refrained managers from including carbon gains in payback times this contradicts the famous coase theorem which predicts that free allocation has no effect on abatement incentives the results indicate that auctioning part of the emission rights will reduce barriers to abatement investment carbon price uncertainty is seen as a disincentive for abatement investment by some managers and as an incentive by others intermediate levels of uncertainty add option value to abatement investments because the associated gradual learning adds flexibility in an uncertain carbon constrained future however high levels of uncertainty creating a risk of offshoring even when companies innovate creates an option value to postpone abatement investments narrow framing misperceiving the risk hedging counter cyclicality of carbon costs reinforces the option value to wait therefore policy should aim to reduce price uncertainty for very low and very high carbon prices not for an intermediary price range

local means in value chain ends dynamics of product and social upgrading in apparel manufacturing in guatemala and colombia summary this paper contributes to existing discussions of global value chains gvc and industrial upgrading by examining observations from eight months of field research in guatemala and colombia where upgrading firms have their own nationally distinct form of labor relations despite producing the same products for the same overseas buyers analysis of these observations leads to the conclusion that labor relations show significant leeway in relation to upgrading outcomes and that local history merits more attention as a driver of management strategy the paper concludes with a discussion of relevant theory and implications for future research

coping with the upheavals of globalization in the shea value chain the maintenance and relevance of upstream shea nut supply chain organization in western burkina faso summary market globalization has had only a weak impact on the regional shea nut supply chain in western burkina faso despite the boom in the shea trade and the arrival of leading foreign firms we show that despite the fact that wholesalers have kept the shea chain locked in an oligarchic organization for the last 50 years they still play an important role in the smooth functioning of the chain and in profit sharing down the chain to the rural poor we suggest that development actors should consider shea traders and their role in the coordination of the chain more carefully 2014 the authors published by elsevier ltd this is an open access article under the cc by nc sa license http creativecommons org licenses by nc sa 3 0

the impact of operating in multiple value chains for upgrading the case of the brazilian furniture and footwear industries summary exporting has been upheld as the golden standard for industrial upgrading however research using the value chain approach shows that upgrading for developing country firms is often limited to the lowest value added activities based on comparative research carried out in two brazilian clusters furniture and footwear industries this paper shows that domestic and regional value chains can offer greater upgrading opportunities providing space for activities of higher value added better remunerated and difficult to replicate notably design marketing and branding moreover this study highlights that many firms simultaneously serve multiple value chains multichain and that multichain firms have better upgrading prospects than those primarily exporting via global value chains

african enterprise clusters and industrialization theory and reality abstract using six case studies from africa this paper examines the theoretical argument that geographic and sectoral clustering enables enterprises to overcome constraints to growth and development findings were both theoretical and practical theoretically the study underscored the strength of the collective efficiency framework but found that certain anomalies could only be explained by other contextual variables grouping the six case studies revealed important differences among them and showed that each group plays its own part in the industrialization process groundwork clusters prepare the way industrializing clusters begin the process of specialization differentiation and technological development and complex industrial clusters produce competitively for wider markets the paper concludes with practical implications for african governments donors and the business community

quantifying value chain analysis in the context of livestock systems in developing countries the analysis of value chains has augmented our knowledge on the complexities inter linkages distributional benefits and institutional arrangements of production and marketing channels in developing countries however the analysis remains relatively qualitative and case specific with limited ability to rank or assess the impact of alternative interventions or to analyze sufficiently the complex market dynamics and feedbacks present in livestock systems this paper offers theoretical and applied insights on ways to improve the analytical rigor of the value chain methodology that combines both qualitative and quantitative approaches

recovery of a mexican cluster devaluation bonanza or collective efficiency abstract mexico as many other developing countries in latin america and elsewhere has been moving in the 1980s toward a liberalized trade regime after a long period of import substitution this paper analyzes the impact of trade liberalization on the cooperative behavior of shoe firms located in a cluster in guadalajara the empirical evidence shows that cooperation has increased it also suggests that cooperation positively influences firms performance and together with a favorable market environment contributes to the cluster s recovery the study is based on fieldwork carried out in guadalajara in 1996 qualitative information was collected through in depth interviews and quantified responses came from a questionnaire survey covering a sample of 63 shoe manufacturing enterprises

strategic ex ante contracts rent extraction and opportunity costs this article cosiders the possibility that a seller can contract with one uninformed buyer prior to an auction involving two potential buyers the seller s optimal strategic ex ante contract more accurately reflects joint opportunity costs of the seller and the contracted buyer and therefore extracts more rent from the entrant moreover this ex ante contract mitigates the seller s ex post rent seeking vis a vis the contracted buyer accordingly it may create more social welfare than the absence of ex ante contracts depending upon the contracted buyer s financial constraint and the distributions of trade surplus implementation of the optimal strategic ex ante contract and policy implications are discussed

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

regional worlds from related variety in regional diversification to strategic coupling in global production networks this annual lecture paper bridges two influential but parallel literature strands on evolutionary economic geography eeg and global production networks gpn it argues that both strands are prem

output based allocation of emissions permits for mitigating tax and trade interactions the allocation of tradable emissions permits has important efficiency as well as distributional effects when tax and trade distortions are taken into account we compare different rules for allocating carbon allowances within sectors lumpsum grandfathering output based allocation oba auctioning and among sectors historical emissions or value added shares the output subsidies implicit in oba mitigate tax interactions unlike grand fathering oba with sectoral distributions based on value added is similar to revenue recycling with auctioning oba based on historical emissions supports heavier polluters more effectively counter acting carbon leakage but at higher welfare costs less energy intensive sectors are also sensitive to allocation rules

the economics of technical change this paper reviews the recent rapidly growing literature on technical change in the economy it concentrates on innovations and their diffusion at firm and industry level since this was the area designated as relatively weak in earlier literature surveys the review argues that the extensive empirical evidence and theoretical analysis now available presents a basic challenge to neoclassical theory after indicating some weaknesses in the neo schumpeterian literature the paper concludes by advocating an experiment with a new form of assessment by neighboring disciplines to economics itself which would take full account of the fundamental issues at stake in this modern methodenstreit c 1994 academic press inc copyright 1994 by oxford university press

shifting proximities the maritime ports sector in an era of global supply chains hall p v and jacobs w shifting proximities the maritime ports sector in an era of global supply chains regional studies economic geographers argue that spatial and non spatial dimensions of proximity are central to innovation and collective action the various dimensions of proximity in relation to maritime ports are examined global supply chains represent a shift in organizational and cognitive proximities between seaports and among port users in the process extra local relationships have become even more influential in maritime port development as organizational proximity between dominant port users has increased through vertical and horizontal integration territorially based institutional and social proximities especially as regards stable and shared regulatory systems are increasingly important as a counterbalance to ensure openness to innovation and upgrading hall p v et jacobs w des proximites en pleine evolution les ports maritimes en periode de chaines d approvisionnement mondial