The Territorial Agglomerations of Firms: A Social Capital Perspective from the Spanish Tile Industry

ABSTRACT Using the Social Capital theoretical framework, territorial agglomerations of firms, such as in the industrial district, can be identified as dense strong‐tie networks and are thus suitable for exploiting activities. This paper addresses the possible exploring limitations of these clustered firms. Following alternative explanations, such as the structural holes and weak tie approaches, it is proposed that local institutions may play a role as intermediary agents between external disperse networks and internal dense networks, therefore enabling these firms to deal with the requirements of an ever‐changing environment. The paper also develops an empirical section where the Spanish ceramic tile industrial district is described in order to illustrate theoretical arguments. Findings suggested a number of ways in which local institutions may facilitate the creation of value for firms. Particularly, local institutions interact with many external firms and institutions and undertake research projects with local firms. In addition, some quantification of the participation of firms in the activities carried out by institutions is offered, suggesting explanations for the barriers that prevent firms from gaining direct access to external networks.     

Remoteness and rural development: economic impacts of rural roads on upland farmers in Sarawak,Malaysia

>Although Sarawak has a rapidly growing economy, the benefits of growth have been focused largely in the urban centres. However, the majority of the population lives in rural areas, where poverty, although on the decline, prevails. Attention is given to the role of rural roads in countering remoteness and, hence, promoting more equitable development. To assess the impact of rural roads, two roads were used for comparison. One provided Iban communities with access to Betong, a small district town. The other provided Bidayuh communities with access to Kuching, the capital city. This paper focuses on three economic impacts of roads – agricultural production, employment, and household income. Findings show that the impact of roads varied within an area (a function of remoteness) and between areas (also a function of remoteness). Impacts were considerably greater when roads provided communities with access to a major urban centre compared with a small town. The implications of these findings are discussed in relation to the government's strategy of rural development.     

How States Augment the Capabilities of Technology–Pioneering Firms

State governments offer a variety of programs to assist technology intensive entrepreneurial firms yet there is a limited understanding of how firms use these programs. This paper provides a framework for categorizing state technology programs and uses detailed case studies to examine how these programs augment firms’ capabilities. It is concluded that firms made extensive use of state programs that provide access to university intellectual property and research facilities. In addition, firms participated in programs that provided incentives for faculty to conduct joint research with industry. Finally, state venture capital programs, though small relative to federal R&D grants or venture capital, appear to nurture firms’ development.     

Incubating an Illusion? Long‐Term Incubator Firm Performance after Graduation

Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organisations. However, knowledge regarding the performance of incubated ventures after they have (successfully) completed their incubation is almost non‐existent. This article investigates the long‐term development of 324 graduate firms from five German business incubators (incubated between 1990 and 2006). The present study does not suffer from a survivor bias, meaning that performance data of non‐surviving firms is also included. Using employment and sales measures as performance indicators, this study contradicts existing results with regard to long‐term graduate performance. Findings of this paper do not support the presumption of sustainable and strong firm growth beyond incubation.     

Empirical Analysis of Corporate Intellectual Capital and Corporate Performance

The principal purpose of this study is to investigate the association between the efficiency of value-added by a major components of a firm's resource (human capital,physical capital and structural capital) and corporate performance (profitability).Data consists of 30 firms are drown from computer area.Empirical analysis is conducted with correlation and linear multiple regression analysis.Findings from empirical analysis indicate that association between physical capital and profitability is statistically significant,there is a positive relation between human capital and firm performance,but not statistically significant.Accordingly, we analyse the factors that probably affect the findings.     

Business networks,social capital and the economic performance of creative and cultural industries: The case of Indonesia

This study examines the ways in which networking characteristics and practices influence the economic performance of creative and cultural industries. The notion of social capital is used to conceptualise the complex nature of networks, including both professional and social relationships that occur on multiple levels. This qualitative study is set in the context of Indonesia, in which two cases are examined: creative apparel entrepreneurs in Bandung and batik producers in Surakarta. The results show that regional environments provide opportunities for creative industries to find specialist suppliers, to gather market information and, importantly, to find and cross‐fertilise new ideas. Although regions provide these opportunities, the firms’ internal social capital is crucial in being able to internalise and transform the knowledge from the environment into innovative values embodied in their products.     

Sense of belonging to an industrial district and knowledge acquisition: The role of strong and trusting interorganizational relations

Studying the level of sense of belonging in industrial districts is a key factor in understanding how firms acquire knowledge. This paper focuses on how the strength of ties and trust developed in interorganizational relationships drives the sense of belonging to the industrial district and leads firms to acquire knowledge. The proposed model was applied to a sample of 166 companies located in the industrial districts of the Spanish footwear industry. The findings suggest that the level of sense of belonging alone does not allow firms in industrial districts to directly acquire external knowledge. Only companies that are able to utilize their greater level of sense of belonging to industrial districts to generate strong and trusting relationships with other agents will acquire relevant knowledge. The study provides important empirical and theoretical contributions and several implications for managers.     

Shenzhen in China's Financial Center Networks

Shenzhen, China, aspires to be an international financial center; however, its financial sector occupies an anomalous position in China's networks. The sector is tightly integrated into mainland networks, and Shenzhen's local banks provide access to Hong Kong's networks. Nonetheless, the city's proximity to Hong Kong, the Asia‐Pacific center of financial networks, confers few incremental benefits compared to those received by other mainland centers. The proposed Qianhai financial district, which is to be a laboratory for opening China's capital accounts, does not differentially boost Shenzhen because other financial centers will be allowed to experiment. A network theory of financial centers provides the explanatory framework for interpreting Shenzhen in China's financial center networks. Empirical analyses focus on Shenzhen's network ties with the Mainland and with Hong Kong. Shenzhen's future rests on the capacity of its financial firms to participate in the networks of South China, as well as to operate across the Mainland.     

Specialization in a Declining Industrial District

Although flexible specialization is regarded as one of the hallmarks of industrial districts, its consequences for firm performance have not attracted much empirical attention. Using event-history data on a complete population of textile-clothing firms in Baden-Württemberg in the Reutlingen (Germany) district from 1946 to 1993, this paper tests the proposition that specialized firms have a survival advantage over more integrated firms. Logistic regression models of failure probabilities show that, contrary to predictions derived from the district model, horizontally and vertically integrated firms have outlived more specialized firms. This study demonstrates the importance of dynamic research designs that incorporate information on strategic differences in a complete population of district firms, observed over an extended time frame.     

State Policies,Enterprise Dynamism,and Innovation System in Shanghai,China

ABSTRACT Today rapidly growing economies depend more on the creation, acquisition, distribution, and use of knowledge. As such, strategies for enhancing research and innovation capabilities have come to occupy a more important position in many developing nations, including China. Already the leading production center, and often seen as China's economic locomotive, Shanghai is striving aggressively to retain its national preeminence and has launched concerted efforts to increase local innovative output. The primary purpose of this paper is to understand how state‐led efforts have fared in promoting technology innovation. By situating the city in the national and global context, the paper shows that Shanghai has gained a substantial lead in developing an innovation environment with extensive global linkages and leading research institutions. Recent efforts in building up the research and innovation capacity of the enterprise sector have begun to show progress. Although firms are enthusiastic about its future as an innovation center, Shanghai continues to face challenges of inadequate protection of intellectual property, lack of venture capital investment, and the tightening supply of highly qualified knowledge workers.     

Increasing Returns to Scale in Affluent Knowledge‐Rich Economies

This paper departs from the existing growth literature in not assuming a priori a specific production technology and offering instead a theory of production technology that captures the effects of changes in the level, composition, and forces of accumulation of capital on the productivity of an economy. The theory of production technology shows that an affluent knowledge‐rich economy violates the Inada second condition because of its high level of knowledge, human, and social capital. Substitution of knowledge capital for physical capital and the self‐reinforcing nature of the process of accumulation of knowledge, human, and social capital are the engines of growth in such economies. Poor economies, on the other hand, may exhibit neoclassical production technology of diminishing returns to capital and get trapped into a low‐level steady state owing to their ever‐growing need for physical capital and also to unfavorable supply conditions for knowledge capital, lower levels of knowledge, human, and social capital in these economies being inadequate to trigger the self‐reinforcing dynamics. The mechanics of endogenous growth are essentially different in rich and poor economies because the production possibility surface is non‐convex in the former, and this difference explains the sustained divergence of their growth rates.     

Building innovative capacity in regional entrepreneurship and innovation (eco)systems: Startups versus incumbent firms

This article studies how three sets of regional factors—knowledge, agglomeration, and openness—impact and interact differently with startups and incumbent firms in their innovative capacity building. Based on a large dataset of Chinese high-tech firms, regression analysis shows that the speed of growing startup innovative capacity relies positively on regional knowledge stock and localization economies. In addition to regional knowledge stock, incumbent innovative capacity building benefits from urbanization economies and regional openness. Favorable regional factors, including the presence of universities and the clustering of knowledge-intensive peers, also enable startups (but not incumbents) to leverage internal knowledge assets into their innovative capacity. The results suggest that it is not only the access to the external knowledge environment but also proactive endeavors to cross-fertilize between internal and external knowledge that underlie the eco-systemic nature of startup innovative capacity building.     

The Innovativeness and Heterogeneity of Foreign‐Invested High‐Tech Companies in Shanghai

China has taken a foreign direct investment‐based approach toward increasing its capital and knowledge base, and developing into an innovative economy. However, little quantitative evidence exists about the factors that drive innovations of foreign‐invested enterprises (FIEs) there. This paper uses survey data from high‐technology firms in Shanghai to discuss factors affecting their innovativeness. It takes the concepts of absorptive capacity, export orientation, and innovation‐related cooperation as a starting point. It highlights how the interplay of strategies and resources affects innovativeness and heterogeneity of FIEs. The most innovative FIEs are endowed with a strong human capital base and R&D activities, which at the same time target export markets and whose cooperative partners involve firms other than their parent company. The results underline the necessity to differentiate between the different types of FIEs when examining their innovativeness.     

Innovation and Regional Growth in Mexico: 2000–2010

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth‐enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000–2010. The results indicate that regional economic growth across Mexican states stems from direct investment in research and development (R&D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.     

Spatial (Im)mobility and Accessibility in Ireland: Implications for Transport Policy

Recent social research that links people's position in society to their ability to access employment has shown the centrality of spatial mobility in the (re)production of patterns of inequality. This is particularly evident in regions where economic activity is unevenly distributed and concentrated in an urban centre and where daily travel patterns reflect a spatial segregation between places of work and residential areas. This paper presents a spatial analysis of accessibility to employment for Galway City and its environs, a predominantly rural region in the West of Ireland dominated by its urban centre. Travel‐to‐work data from the 2006 Census of Population of Ireland were used to present a comparison of district‐specific accessibility levels across three socio‐economic groups. Network analysis and Geographic Information System visualisation tools are used to map existing socio‐spatial topographies of (in)accessibility. This is done to test two contrasting sets of theoretical proposals in the social science literature regarding the relationship between spatial mobility and social status. Advocates of the first position conceptualise spatial mobility as a form of capital that helps to maintain many existing social hierarchies. This contrasts with the views of those who anticipate the dissolution of established social boundaries (“fluidification”) as a result of increased spatial mobility of people, goods, and ideas. It is argued that these contrasting positions are highly relevant to current transport policy debates, including discussions around the impacts of recession‐related cuts in transport infrastructure investment on patterns of accessibility. In addition, they encourage reflection on the impacts of sustainable transport initiatives on different social groups that are more or less mobility disadvantaged, a fact that has hitherto received little attention in policy research and practice.     

How do university-industry collaborations benefit innovation? Direct and indirect outcomes of different collaboration types

This paper explores the extent to which firms perceive to benefit from university-industry collaborations in their innovation processes, building on survey data from 232 Norwegian firms. We find that firms experience not only direct innovation benefits from collaborations, but also indirect benefits in the form of closer proximity to universities, which can in turn improve future collaboration. We compare the reported outputs from various types of collaboration, finding that firms engaging mainly in research-oriented interactions more often report that collaborations result in innovation than those engaging in education-oriented or more informal collaborations. However, education-oriented and informal collaborations are equally important for building cognitive, organizational, institutional and social proximities between firms and universities.     

Spatial Agglomeration,Technological Innovations,and Firm Productivity: Evidence from Italian Industrial Districts

ABSTRACT The aim of this paper is to analyse the impact on firms' productivity of innovative activities and agglomeration effects among firms belonging to Marshallian industrial districts and the possible joint effect of these two forces. We study a sample of 2,821 firms active in the Italian manufacturing industry in the period 1992–1995. Our analysis uses an original data set based on three different Istituto Nazionale di Statistica statistical sources—Community Innovation Survey, Archivio Statistico delle Imprese Attive (Italian Business Register), and Sistema dei Conti delle Imprese (Italian Structural Business Statistics)—to estimate an “augmented” Cobb‐Douglas production function to account for the impact of technological innovations and district‐specific agglomeration effects on a firm's productivity growth. Our data set allows us to distinguish between product and process innovations, thus, through econometric analysis, we hope to achieve a better understanding of which of these two types of innovative activities benefits most from participation in an industrial district. Our empirical results show that belonging to an industrial district and making product innovations are key factors in the productivity growth of firms and that product innovations appear to have a greater effect on the economic performance of district rather than non‐district firms.     

Technology Search and Firm Bounds in Biotechnology: New Firms as Agents of Change

Schumpeterian perspectives on industrial change suggest a relationship between new firms and the regionally specific technological bases for innovation. However, the links between such firms and the knowledge bases for innovation are more implicit than explicit. The innovation process in new firms reflects both the capabilities found within the firm as well as information sourcing from without. This paper seeks to articulate the nature of change in relationships between firms in science-based industries and the technological infrastructure accessed to support innovation, as such industries mature out of the birth phase. Innovation is treated as decision making, identifying the firm as innovator and agent of change. Survey research suggests that a shift in the sourcing of information, and an associated shift in the character of information accessed, occurred with maturation in the study industry, comprised of biotechnology firms in the U.S. “Early” and “later” forming firms show somewhat different technology sourcing patterns. Interviews were conducted to help interpret these findings. Implications for industry development are suggested.     

The Capital Structure Choice of Financial Distressed Firms: Evidence from China

To study on how to choose the optimal capital structure for financial distressed listed firms,the difference of the factors influencing the capital structure and the adjusting procedure between non-distressed firms and distressed firms is analyzed.It shows that the high debt ratio of the distressed firms is significantly related with the proportion of the largest shareholder and the concentration of the share structure.However,the proportion of largest shareholder has little effect on the adjustment of capital structure.Therefore,to solve the problem of distressed firms,it will depend not only on the improvement of corporate governance,but also on the optimization of financial channels.