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Maria Estela Ferreira

This chapter aims to illustrate the main outcomes and the characteristics and factors of the resilience of the footwear industry in the northern region of Portugal as performed in the last 30 years. This industry acts in a cluster located in a number of towns around Porto, within a maximum distance of 50 km from this city. Such cluster is responsible for more than 90 per cent of Portuguese footwear exports. Along the analyzed period, and among other difficulties, two main shocks are identified which the industry had to face: the full membership of China in the WTO, in 2001, which carried the delocalization of most foreign footwear companies, mainly to the Far East, and the sub-prime world crisis in 2008. The industry survived and surpassed these shocks thanks to a thorough preparedness sustained by the action of entrepreneurs, together with a strong and active association and a technological center, which provided management and technical support and strengthened links between them, stimulating coordinated actions. This chapter suggests, through a non-linear approach, that Portuguese footwear exports are about to reach the level they would have attained if China hadn’t joined the WTO.

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Patrizio Bianchi and Sandrine Labory

Chapter 6 concludes the book by summarising the main ideas and pointing to the main issues that should be further examined in this era of digital globalisation spurred by the fourth industrial revolution. One issue is the generalisation of the specific case of comprehensive industrial policy as that implemented in the Emilia-Romagna region. Another issue regards privacy and monopoly power in the new industrial system.

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Patrizio Bianchi and Sandrine Labory

Chapter 5 puts together the analysis carried out in previous chapters to discuss the industrial policy implications of the fourth industrial revolution. The main idea is that manufacturing revolutions call for comprehensive industrial policy. A focus is made on industrial policy at the regional level, and it is shown, through the experience of the Emilia-Romagna region in Italy, that regions have a role to play in designing and implementing comprehensive industrial policies effective in preparing their industries and population for the industrial revolution. It is argued that in times of important change the objective of industrial policy should be resilience, namely the capacity of the economy and the society to adapt.

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Tüzin Baycan and Berna Sezen Özen

This chapter focuses on to what extend the innovation performance of EU countries has been affected by the global economic crisis and aims to investigate the relationship between the crisis and innovation performance while addressing the changes in the indicators of the Innovation Union Scoreboard Index after 2008. Focusing on these changes over the last ten years, the chapter compares and evaluates the innovation performance of EU countries and highlights which countries were more resilient in dealing with the recession.

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Yannis Psycharis, Dimitris Kallioras and Panagiotis Pantazis

This chapter sets out to provide empirical evidence regarding the impact of economic crisis on the employment changes in the NUTS III Greek regions, during the period 2008_2012. With the application of trade-adjusted shift-share analysis, the chapter provides additional explanatory evidence on whether openness and trade have affected the resilience of regions. Results indicate that economic crisis has impacted asymmetrically on regional employment losses, leading to a widening of regional employment disparities. Construction and manufacturing have been hit severely by the crisis. Agriculture constitutes a resilient sector, while knowledge- and technology-intensive sectors are also more resilient to crisis. The less well-off regions dependent on more traditional sectors proved to be more resilient. However, trade relations and openness are offering as stabilizers to economic downturn.

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A. Suut Doğruel, Fatma Doğruel and Yasemin Özerkek

Permanent duality across regions characterizes the regional disparities in Turkey. This duality exists in all dimensions of development, including the persistent unemployment problem. Throughout the last decade high unemployment rates were observed in all regions of the country. Focusing on unemployment in Turkey, the aim of the chapter is twofold. First, the chapter intends to capture the main determinants of the regional unemployment. To this end we define an excess supply function to estimate the determinants of regional unemployment combining the supply of and demand for labor. Second, the chapter scrutinizes the effects of external shocks on the regional variations in economic performance in Turkey. Regional unemployment and regional growth are defined as the basic economic performance indicators. For the first aim, migration is taken as the main source of the variations in the regional labor supply. On the demand side, we focus on the structural changes. The study defines two types of changes in the structure at the regional level: (1) The changes in the sectoral composition á la Kuznets; and (2) The Lilien index, which represents the dispersion in (or reallocation within) the sectors. For the second aim, we define two exogenous shocks: the 2008 crisis and the migration issue at the regional level. The 2008 crisis has a global character without any local dimension. Hence, its effects could be defined as completely exogenous. Migration can be affected partly by the regional factors. Therefore, we may assume that this shock is partially exogenous. In this part, the chapter will define the regions as flexible or rigid against these shocks. The results reveal that the adjustment potential to external shocks may be higher in the regions which have relatively simple economic structure.

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Patrizio Bianchi and Sandrine Labory

Chapter 2 examines the previous industrial revolutions, showing not only the important technological innovations introduced in each of them but also the deep impact they have on the society and culture. The main reason is that industrial revolutions are primarily transitions in prevailing production processes, or manufacturing regimes. Industrial revolutions are very complex phenomena and this has to be taken into account in the analysis of the fourth industrial revolution and its policy implications. Particular attention is paid to the deep changes in educational systems associated with industrial revolutions, as this might be a lesson in policy for the current – fourth – industrial revolution.

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Patrizio Bianchi and Sandrine Labory

Chapter 3 analyses the fourth industrial revolution: what technological innovations are involved, to what extent the speed of change in this revolution is faster than in previous revolutions, the impact on manufacturing systems and the position and efforts of different countries in this deep transformation. An important characteristic of this revolution is that data seems to be the raw material of this new development phase. Digitalisation and hyperconnection are thus key transforming strategic elements of socio-economic systems, and industry in particular. A new manufacturing regime seems to be emerging, after mass production and flexible production of the second and third revolutions respectively, namely mass customisation.

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Edited by Urban Gråsjö, Charlie Karlsson and Iréne Bernhard

Developed countries must be incredibly innovative to secure incomes and welfare so that they may successfully compete against international rivals. This book focuses on two specific but interrelated aspects of innovation by incumbent firms and entrepreneurs, the role of geography and of open innovation.
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Industrial Policy for the Manufacturing Revolution

Perspectives on Digital Globalisation

Patrizio Bianchi and Sandrine Labory

This book offers a critical reflection on the meaning and expected impact of the fourth industrial revolution, and its implications for industrial policy. Industrial revolutions are considered not only in terms of technological progress, but also in the context of the changing relationship between market and production dynamics, and the social and political conditions enabling the development of new technologies. Industrial Policy for the Manufacturing Revolution aims to increase our capacity to anticipate and adapt to the forthcoming structural changes. A concrete illustration of this industrial policy is provided through an experience of its implementation at regional level.