The Governance of Global Production Networks and Regional Development: A Case Study of Taiwanese PC Production Networks

This article applies a global production networks (GPN) perspective to the trans‐border investments of Taiwanese personal computer (PC) companies in the Northern Taiwan, Greater Suzhou and Greater Dongguan regions. The findings of extensive field research are used to illustrate two conceptual arguments. First, we show the on‐the‐ground complexity of inter‐firm governance arrangements within the PC industry, thereby casting doubt upon attempts to reduce notions of governance to simplistic, industry‐wide categorisations. Second, by comparing Greater Suzhou and Greater Dongguan, we demonstrate that even within a single production system, there is geographical variation in the nature of the strategic coupling between the GPN and local institutional formations. We argue that conceptualising such geographical and organisational complexity is critical to understanding the regional development potential of GPNs.     

Examining the Global Machine Tool Industry: Transitions or Continuity?

Examining and comparing a country's machine tool industry often can be used to gauge its quality, productivity, and innovation in manufacturing as a whole. It can also indicate wider trends in global manufacturing. This paper, accordingly, examines changes in the global machine tool industry since 1990 in terms of several metrics, including production, industrial concentration, exports, and lastly, firm‐level leadership patterns. A broad framework entailing evolutionary economic geography, specifically, path dependence, and global production networks, informs this research. Several noteworthy patterns emerge from the data, including the sustained dominance of a select number of national machine tool industries; several former manufacturing powers in decline; and the emergence of a few national machine tool producers, notably China. The article concludes with a discussion of these changes, possible implications for manufacturing at large, and avenues for future research.     

Globalization and Regional Change in the U.S. Furniture Industry

ABSTRACT Furniture manufacturing has experienced rapid globalization in recent years. This is mainly the result of global production networks established by large manufacturers and retailers seeking to reduce costs in a highly competitive environment. The industry's globalization has been facilitated by technological innovations and the global reduction of trade and investment barriers. In the U.S., furniture‐producing regions are experiencing tumultuous change. Growing numbers of firms are outsourcing production to China, which is now responsible for about half of all U.S. furniture imports. Employment levels have plummeted. However, an analysis of spatial patterns of employment, output, and capital investment in U.S. furniture manufacturing shows that regional change is not uniform. Southern regions characterized by larger firms specializing in wooden case goods production have been especially vulnerable to job loss.     

Transportation and the Geographical and Functional Integration of Global Production Networks

ABSTRACT The growing interest in the relationships between transportation and globalization has spurred many inquires in the nature of production, consumption and distribution, especially within transport geography. It is widely acknowledged that improvements in transport and distribution have contributed to significant changes in the geographies of production (and vice versa). In a context of intense global competition and diminishing profit margins, logistics and the formation of global production networks offer additional opportunities to improve the efficiency of production through distribution strategies. The spatial and functional fragmentation of manufacturing and attempts at reducing inventories have led to smaller, more frequent and synchronized shipments, transforming the logistics industry, but placing intense pressures on transport systems to support these flows. The benefits derived from global production networks thus cannot be achieved without improvements in logistics and supply chain management. This article seeks to assess the conditions driving the global forms of production, distribution, and transport mainly by looking at the levels of geographical and functional integration of global production networks in view of the high level of fragmentation observed within them. However, there are still many uncertainties and delays in distribution, which can only be compensated by a better organization of freight distribution systems supporting global production networks.     

Temporal Elements in the Spatial Extension of Production Networks

ABSTRACT The spatial extension of production networks presents a significant challenge to managers accustomed to reducing lead times by geographically contracting supply chains. This paper extends the theory on time in transportation by defining the elements of transport time, order time, timing, punctuality, and frequency and elaborating on their characteristics. Structured along these elements, it analyses the consequences of extending production networks from within a mature economic region, mainly the EU‐15, U.S., and Japan, first to adjacent and then to nearby and finally distant low‐cost regions. Distance obviously affects the transport quality in all time dimensions. Except for air parcel services that globally match what road transport offers within an economic region, the longer the distance, the lower the time‐related performance. Distant, low‐cost regions, meaning China and India, also imply a polarisation between air and sea transport at opposite ends of the time, cost, and capacity scales. This supply gap restricts the types of products traded. The conceptual framework is illustrated in the setting of a global vehicle manufacturer spatially extending its sourcing. It demands that sequenced sub‐assemblies and small, cheap, and generic components are delivered from the vicinity of each assembly plant. Batched components can be sourced from adjacent regions, but deliveries from longer distances imply storage at pick‐up points to fulfil their time requirements. Hence, the suppliers must offer the manufacturing firm deliveries as if they produce relatively close to the assembly plants.     

From “obligated embeddedness” to “obligated Chineseness”? Bargaining processes and evolution of international automotive firms in China's New Energy Vehicle sector

Over the past decades, the automotive sector in China has been characterized by the obligation of foreign manufacturers to enter joint ventures, transfer technologies, and localize production. Still, the Chinese automotive industry has remained dependent on foreign brands, capital, and technology. The advent of markets and supply chains for electric vehicles, however, changes the framework conditions for established foreign automotive firms in terms of competitive landscape and access to core technology components. This is mainly the result of political initiatives: Established automotive manufacturers are exposed to direct and indirect restrictions that influence their production of electric vehicles, their choice of suppliers, and their potential market shares in the future. This paper outlines multilevel bargaining processes of Chinese and foreign actors as they aim to maximize value capture in a fundamentally transitioning automotive sector. In contrast to the lead firm-centric focus of recent global production networks (GPN)-discussions, this paper argues that the determinants of how production networks evolve is first and foremost a question of the institutional environment. Focusing on power balances between state and firm actors in multilevel bargaining processes offers a way of explaining GPN-evolution in institutional contexts in which power concentrates in executive bodies and decision-making processes are often informal.     

Towards the Spatial Patterns of Sectoral Adjustments to Trade Liberalisation: The Case of NAFTA in Mexico

ABSTRACT A recent string of “new economic geography” (NEG) models has set focus on the impacts of trade liberalisation on the intra‐national distribution of economic activity. What the existing contributions have in common is a basic two‐sector assumption (agriculture/manufacturing) and a resulting focus on the question of whether liberalisation leads to a greater concentration of aggregate manufacturing activity. Reconsidering these models from a multi‐sectoral perspective, the aim is to allow for sectoral differences in the spatial adjustments to liberalisation. This introduces a conceptual nexus between comparative advantage (CA)‐type sectoral recomposition effects of trade and NEG‐type spatial adjustments. In the analysis of Mexican manufacturing location 1993–2003, incipient empirical evidence is found in favour of the hypothesis that sectors characterised by a revealed comparative advantage and/or cross‐border intermediate supplies grow faster in regions with good foreign market access, whereas import competing ones gain in relative terms in regions with higher “natural protection” from poor market access. The relevancy of the proposed NEG/CA framework concerns both efficiency and equity objectives of trade adjustment policies, and opens a new perspective on the long‐run effects of trade on spatial inequality.     

Transnational Corporations,Global Production Networks,and Urban and Regional Development: A Geographer's Perspective on Multinational Enterprises and the Global Economy

This paper offers an economic‐geographical interpretation of the role of transnational corporations (TNCs) in urban and regional development that is grounded in Dunning and Lundan's (2008 ) Multinational Enterprises and the Global Economy. I argue that TNCs and their activity are indisputably one of the keys to understanding urban and regional development in today's globalizing world economy. To support this perspective, I will deploy the recently developed analytical framework of global production networks (GPNs) to unpack the complex and mutually dependent relationships between TNCs and urban and regional development. The paper first provides a critique of several recent influential theories of urban and regional growth and identifies the omitted components in such important actors as TNCs. It then offers an analysis of TNCs as key agents of urban and regional development on the basis of ideas on TNC strategies, networks, and regional institutions expressed in Multinational Enterprises. Finally, I draw upon a relational view of TNCs in GPNs to illustrate how urban and regional development is increasingly a “globalizing” phenomenon. Situated in recent work in economic geography, I elaborate on the concept of strategic coupling as an interfacing mechanism bringing together TNCs and development at the urban and regional scales.     

Molecular markers: actual and potential contributions to wheat genome characterization and breeding

The demands for increasing global crop production have prompted the development of new approaches relying on molecular marker technologies to investigate and improve the plant genome. The merits of molecular markers make them valuable tools in a range of research areas. This review describes novel approaches based on modern molecular marker technologies for characterization and utilization of genetic variation for wheat improvement. Large-scale genome characterization by DNA-fingerprinting has revealed no declining trends in the molecular genetic diversity in wheat as a consequence of modern intensive breeding thus opposing the genetic ‘erosion’ hypothesis. A great number of important major genes and quantitative trait loci have been mapped with molecular markers. Marker-assisted selection based on a tight linkage between a marker allele and a gene(s) governing a qualitative or quantitative trait is gaining considerable importance as it facilitates and accelerates cultivar improvement through precise transfer of chromosome regions carrying the gene of interest. The implementations of molecular markers in wheat genotyping, mapping and breeding complemented by specific approaches associated with the complex polyploid nature of common wheat are analyzed and presented.     

Trade Reorientation and Its Effects on Regional Port Systems: The Korea‐China Link along the Yellow Sea Rim

ABSTRACT Owing to its competitive labor costs, its open‐market policy, and a substantial amount of capital investments, China has become a global manufacturing pole and an export‐based economy replicating the conventional Asian model but on a much wider scale. This is creating acute competition on other Asian export‐based economies such as Korea that have to adapt to the “China effect.” Consequently, many Korean manufacturing companies have repositioned their capital and equipment in China to enlarge their market potential as well as to reduce their production costs. Because Korea is adjacent to China—both are sharing the Yellow Sea Rim—this shift is creating a unique geographical dimension with a high level of functional integration of Sino‐Korean manufacturing supply chains. This transition has also brought substantial changes in the regional logistic network by organizing new flows of raw materials, parts, and final products, most of them along the Yellow Sea Rim. New logistic flows have given substantial influences on regional port competition by creating diverse links. These changes are bringing a reorientation of the regional maritime industry and of the port system.     

Evolutionary Economic Geography for OFCs: Do Political Ties to the Onshore Reduce Capital Inflow Volatility?

This paper analyses the structural change in small‐island economies—sometimes labeled offshore financial centers (OFCs)—that have seen wealth‐generating activities through offshore financial services decrease in value since 2008. At the same time, OFCs have come under increasing scrutiny from supranational organizations such Organization for Economic Co‐operation and Development and European Union for perceived unfair tax practices and money laundering activities. Some OFCs have proactively adjusted to this sea change by broadening the economic base through development of new offshore business activities such as e‐gaming, film industry, and niche manufacturing. Most have increased co‐operation with onshore regulatory bodies to promote service and product legitimacy. Econometric analysis explores the assertion that OFCs that do not have a political link to the onshore may be exposed to greater capital inflows volatility than OFCs that have such a link. Case study analysis using the theoretical lens of evolutionary economic geography illustrates that a small OFC is creating spatialities of economic novelty by adapting economic development strategies deployed during the successful development of the center prior to the recent recession. Our findings reveal the importance of political links to the onshore to reduce capital inflow volatility and the importance of local public–private interaction to legitimize post‐recession development.     

Who leads regional industrial dynamics? “New industry creators” in Chinese regions

Recent evolutionary economic geography studies have argued that regional diversification emerges as a path‐dependent process, as regions often branch into industries that are related to its industrial structure. However, it is less clear who are creating new industries and under what regional conditions. This research seeks to fill this gap and identify “new industry creators” in regional industrial diversification. We differentiate two types of new industry formation—path‐breaking and path‐dependent—and examine whether some new industry creators are more path‐breaking than others, by incorporating two factors that have been largely overlooked in recent literature on technological relatedness—firm heterogeneity and regional institutions. Based on a firm‐level data set of China’s manufacturing industries, this paper shows that path‐breaking and path‐dependence coexist. Empirical results confirm that firm heterogeneity and regional institutions not only affect the firms’ capabilities in creating new industries, but also encourage/discourage firms to be adventurous and path‐breaking. This research implies that lagging regions can catch up with developed regions by coordinating regional resources and adjusting local institutional arrangements to attract more path‐breaking firms.     

Space of Flows,Uneven Regional Development,and the Geography of Financial Services in Ireland

ABSTRACT This paper is concerned with the geography of finance in the globalising knowledge‐based economy, characterised by the proliferation of information and communication technology. More specifically, the paper aims to examine the “locational structure” of financial services in such an economy and its implications for uneven regional development in Europe. In doing so, the paper engages with the concept of “space of flows” and several other theoretical approaches concerned with the geography of advanced producer services and finance. It argues that while such approaches provide a useful starting point, they need be developed further in order to inform an understanding of both the nature and the dynamics of the “locational structure” of financial services and its implications for regional economic development. This point is illustrated in the case of Ireland, focusing on “domestic” banking institutions and “international” financial services operating there. The paper concludes that while “space of flows” provides a useful metaphor for approaching the geography of financial services and other knowledge intensive business services, the conceptual and analytical emphasis should shift towards the “flows of value” that ultimately impinge upon the fortunes of cities and regions.     

Industrial Structure and the Sources of Agglomeration Economies: Evidence from Manufacturing Plant Production

The impacts of agglomeration and local industrial structure are examined through an analysis of establishment‐level productivity. Using micro‐level data, measures of regional industrial specialization, economic diversity, and industrial competitive structure are incorporated together into a production function system estimated cross‐sectionally for three years and three manufacturing industries in the U.S. The findings demonstrate the importance of the influences of regional industrial competitive structure and diversity on performance.     

Technology and the Convergence of U.S. Urban Migration Patterns: 1970–2000

ABSTRACT The theoretical premise of this study is twofold. First, that industrial and occupational restructuring within three industries in the U.S.—manufacturing, finance, and high technology—occurred because of technological developments and these, in turn, influenced the settlement patterns of working‐age individuals. Second, that quality‐of‐life factors are increasingly important for the migration decisions of workers as the importance of proximity to ports and raw materials declines. As expected, the results show that high concentrations of high‐technology and finance occupations generally have a positive pull for migrants, with younger migrants most attracted to technology jobs. High concentrations of manufacturing jobs have a negative effect. Most surprisingly, the explanatory power of the model declines substantially across the three decades. Both employment variables and proxies for quality‐of‐life variables lost explanatory power for modeling age‐specific in‐migration to metropolitan statistical areas (MSAs). Overall, the results support the industrial restructuring hypothesis, but do not find support for the idea that quality‐of‐life factors have grown in importance.     

Phenotypic evaluation of floral and flowering traits with relevance for hybrid breeding in wheat (Triticum aestivum L.)

Hybrid breeding is a promising approach to increase the yield potential in wheat (Triticum aestivum L.). The profitability of wheat hybrids highly depends on a cost‐efficient system for hybrid seed production for which an adequate outcrossing in the male pool is of utmost importance. Employing a set of 51 elite winter wheat lines, we developed and evaluated phenotyping methods for floral and flowering traits with relevance for improved cross‐pollination. We observed significant genotypic variances and high heritabilities for most traits, including important traits like pollen mass and anther extrusion. Our results suggest the utility of the developed phenotyping approaches for applied plant breeding and the potential of the traits to assist in the design of the male ideotype for increased cross‐fertilization.     

No Man's Brand—Brands,Institutions, and Fashion

ABSTRACT Branding has become so intertwined with consumption that today's consumers have often deeply personal relationships to brands and brand histories. Branding is an attempt to strategically “personify” products and to encapsulate a balance between different economic values: quality, utility, symbolic, and cultural worth. In this paper we argue that the relationship between the contemporary consumer and producer is mediated by and governed by a reflexive construction of brands. As such brands are best understood from an institutional perspective. The paper illustrates the institutional role of brands by using the example of the fashion industry. It is argued that in the fashion industry, a focus on consumer‐producer brand‐building and brand loyalty is central to the commodity and value chains built around products. We conclude by suggesting that economic geography has consistently undervalued brands as an area of study. By taking brands as a core product in industrial production rather than as an interesting aside for sociologists, historians, and cultural theorists, economic geography can better understand the institutions governing the economy. In particular, better understanding the institution of brands helps us better appreciate the dynamics systems within which commodities and commodity chains are formed.     

Coffee frontiers in the Central Highlands of Vietnam: networks of connectivity

The objective of this paper is to provide an understanding of how the gap between the ‘global’ and the ‘local‐peripheral’ is bridged in the everyday life of the peasantry at a coffee pioneer front. The networks of connectivity between the spontaneous migrant‐peasants at the coffee pioneer front in the province of Dak Lak in the Central Highlands of Vietnam, and the global coffee market are explored. This set of linkages helps the peasantry to settle, despite the harsh conditions of life on the frontier. This is illustrated through a brief ethnographic account of the ‘peripheral’ characteristics of life on a coffee pioneer front. By borrowing analytical tools from actor‐network theory, the paper also illuminates the (actor) networks through which coffee finally reaches the export gate. This account suggests that global commodity production processes are often embedded in local dynamics, in this case, the political‐economy of the frontier. Further, it implies the need to transcend scales when inquiring about peasant‐market relationships in export agro‐commodity production.     

棉花产量与品质改进新对策

世界经济形势对棉花作为主导的纺织纤维来源提出了挑战.过去10年中,世界棉花的丰产性育种进展不大,棉农种植棉花的收益较低,棉花生产效益不稳.从目前单产水平的这种停滞状态可看出在多年的育种进程中,棉花从种植到成熟过程中产量组分所受到的生理限制.就改进产量的育种对策而言,注重产量组分比之注重衣分或铃数更为重要,此外应注重的是棉株的生理特性,如种子的含油量.而在产量处于徘徊的这段时期,经济的竞争使世界纺纱与纺织技术加速改进,以满足棉纤维品质的需求.在棉纤维加工过程中,短绒(12.7mm及以下绒长)的问题往往是造成棉纱拉力降低,尤其是对气流纺织技术.随着乌斯特公司"高级纤维信息系统"R的问世,已可以在对棉纤维长度分类时直接对棉短绒含量进行测定.本文的目的是讨论如何在保持现有纤维品质的前提下,采用新的技术与对策进一步提高产量.     

Multifunctionality and agrarian transition in alternative agro‐food production in the global South: The case of organic shrimp certification in the Mekong Delta,Vietnam

Processes of globalisation in the conventional food provision system have had widespread negative impacts on small‐scale farmers. Yet, alternative food networks, which are characterised by more sustainable production/consumption practices and fairer trade relations, have increasingly been ‘going global’ and, in the process, have been integrating small‐scale farms in the South. One such high‐value export‐led commodity is certified organic shrimp. International third‐party certification schemes are becoming popular as a tool to verify the intangible attributes of such commodities. Using concepts of multifunctionality and agrarian change, this paper examines the implications of introducing an international environmental certification programme to a site where the ‘peasantry’ has been preserved and has limited integration in the global agro‐food system. Drawing on a case study that examines the first certified organic shrimp production project in Vietnam, this paper concludes that the current movement towards post‐productivism in the global North has potential to keep local farming practices in the global South by justifying the value of peasant‐like production methods through international certification. As a result, the development path of agrarian transition might be reshaped into a form not necessarily pursuing industrialisation. This leads to the new interpretation of pre‐ and post‐productivism beyond the North and South divide.