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This paper investigates how institutional conditions at national and regional levels shape the decisions of Multinational Enterprises (MNEs) to invest abroad by means of either acquisitions or greenfield investments. The empirical analysis covers all foreign direct investment (FDI) projects in the European Union by the largest MNEs in the world to study alternative choices by the same firm and account for firm‐level characteristics in investment decisions. The empirical results show that—other things being equal—regions with stronger investment eco‐systems are more likely to attract acquisitions, while greenfield investments are more likely in regions with comparatively weaker systemic conditions. Howerver, the regional quality of institutions makes a fundamental difference to the nature of the investment projects attracted by regions: those with high quality of government can attract greenfield investments undertaken by the most productive MNEs. By improving their quality of government, local, and regional policy makers can attract higher quality greenfield investment projects to their constituencies, potentially breaking the vicious circle between low productivity areas and low productivity FDI. [ABSTRACT FROM AUTHOR]

This article investigates how combining global value chain and innovation system approaches can help to foster an understanding of the possible trajectories that learning and innovation may take in developing countries. Based on the wealth of empirical evidence collected in the special issue, we introduce the notion of the co-evolution of global value chains and innovation systems and outline a framework for investigating the interaction between the two in a dynamic perspective with multiple trajectories. We find that, in some cases, there is an improvement in local innovation capabilities with potentially positive effects on overall competitiveness, while in others there is little progress or even a loss of previous innovation capacity. [ABSTRACT FROM AUTHOR]

The literature on gender-based discrimination in credit markets is recently expanding, but the results are not yet definitive and have not been generally agreed upon. This paper exploits a new dataset on Barbados, Jamaica, and Trinidad and Tobago, which provides detailed information about female ownership and management in firms for investigating the existence of a gender gap in access to finance. The evidence presented herein suggests that more precise measures of the gender composition of the firm show that women-led businesses are more likely to be financially constrained than other comparable firms. [ABSTRACT FROM PUBLISHER]

Recent studies have stressed the role played by global pipelines in fostering the growth of clusters and innovativeness. In this article, we develop a formal model to investigate when global pipelines contribute to an increase in local knowledge, depending on various characteristics of clusters such as size, knowledge endowment, and the ease of transmission of internal knowledge. This model is an extension of Cowan and Jonard's () model in which we introduce the concept of cluster and a role for spatial proximity in the diffusion of knowledge. Our results reveal that there is a natural tendency of actors within global pipelines to act as external stars, rather than gatekeepers of knowledge. Global pipelines are beneficial for the accumulation of knowledge only if the cluster is either characterized by a high-quality local buzz or is small and weakly endowed in terms of knowledge. [ABSTRACT FROM AUTHOR]

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. [Copyright &y& Elsevier]

The aim of this article is to analyse the nature and extent of knowledge and information networks in an Italian wine cluster. Moreover, the relation between firms' characteristics and the knowledge network structure is also explored. The empirical findings show that knowledge is unevenly distributed in clusters and that networks of knowledge and information differ a great deal in terms of their structure. In fact, knowledge flows are restricted to a tightly connected community of local producers, differing in terms of knowledge assets, innovation behaviour and overall economic performance with respect to the rest of the firms in the cluster. [ABSTRACT FROM AUTHOR]

Since the second half of the 1990s the Italian economy has experienced a significant slowdown in the rate of economic growth. The “dwarfism” of its manufacturing firms, their specialization in traditional sectors and their organization in industrial districts have been identified by many scholars as major structural weaknesses in the Italian industrial system. Nevertheless, there is a vast and flourishing empirical literature showing that many industrial districts are actually changing in terms of sector specialization, international and innovation strategies and emergence of new forms of enterprise organization. In this paper, we provide a critical survey of the new and different patterns of industrial organization emerging in industrial districts. [ABSTRACT FROM AUTHOR]

This paper examines the impact of globalization of production on the Italian footwear sector and investigates the structural changes taking place in some shoe districts as they join international production networks. The following questions are discussed: Are Italian footwear districts specializing in particular phases of the production cycle? Is there a trend towards the reduction of activities carried out within districts? Or are different patterns emerging according to the districts' main market segment and to the value chains (e.g. luxury fashion market or mass market) they belong to? The study explores these issues using data on outward processing trade (OPT) collected by Associazione Nazionale Calzaturieri Italiani (ANCI) to analyse the fragmentation of production in the footwear sector at “provincia” level. The available disaggregation of data allows an investigation of the different outsourcing strategies and emerging trends within the district. Two case studies are presented; one on Riviera del Brenta in Veneto and the other on Barletta in Puglia. In the footwear districts investigated, evidence of different international delocalization strategies is found. It is argued that these different patterns of specialization are closely related to the clusters' market position and suggest that these patterns influence the clusters' potential for future competitiveness. [ABSTRACT FROM AUTHOR]

Analyzes the impact of trade liberalization on the cooperative behavior of shoe firms located in a cluster in Guadalajara, Mexico. Impact of trade policy reform in clusters; Historical overview of the Guadalajara cluster; Relationships between firm performance and cooperation.

Presents a comparison between the ideal-typical industrial district as defined in the literature, footwear clusters in Italy and in Mexico. Description of the model; Italian footwear industry; Mexican footwear industry; Italian districts of Brenta and Marche; Mexican districts of Guadalajara and Leon.

Highlights • GVC involvement of host countries is associated to local sourcing by foreign investors. • The larger the participation in GVCs the higher the levels of local sourcing. • Upstream specialization is positively correlated to more local sourcing and support to local suppliers. • These effects are larger in countries with higher education spending and stronger rule of law. Abstract The local sourcing of intermediate products is one the main channels for foreign direct investment (FDI) spillovers. This paper investigates whether and how participation and positioning in the global value chains (GVCs) of host countries is associated to local sourcing by foreign investors. Matching two firm-level data sets on 19 Sub-Saharan African countries and Vietnam to country-sector level measures of GVC involvement, we find that more intense GVC participation and upstream specialization are associated to a higher share of inputs sourced locally by foreign investors. These effects are larger in countries with stronger rule of law and better education. [ABSTRACT FROM AUTHOR]

The role of emerging economies in the global economy via embeddedness in Global Value Chains (GVCs) is increasing, but their ability to become innovation leaders is less certain. The GVC approach stresses that the inter-firm linkages afforded by being part of a chain are crucial for transferring knowledge. However, their impact on the innovation performance of the developing country firms involved in these GVCs remains controversial and requires more research. The present study provides a systematic review of the literature on developing country GVCs to investigate the learning channels used by local firms, both within (firm level, collective level) and outside of these value chains (i.e. external sources of learning), and the extent to which this activity promotes innovation. We use cluster analysis to classify the cases identified in a literature review to propose a novel typology of local GVC innovators: (a) GVC-led Innovators that achieve high levels of innovation, relying mainly on sources of knowledge within the GVC; (b) Autonomous Innovators whose innovation activity is based on external sources of learning; (c) Marginal Innovators, which constitute the largest group and are characterized by low levels of innovativeness and some use of knowledge available within the GVCs, but scarce use of external sources. [ABSTRACT FROM AUTHOR]

This paper explores the location strategies of multinational enterprises (MNEs) from emerging countries (EMNEs) in search for regional strategic assets. The analysis is based on a systematic comparison between EMNEs and multinationals from advanced countries (AMNEs) in order to unveil similarities and differences between these two major sources of foreign investment into the regions of the European Union. The empirical results suggest that EMNEs follow a distinctive logic in their location strategies. They are attracted by the availability of technological competences only when their subsidiaries pursue more sophisticated and technology-intensive activities. Conversely, EMNEs share some behavioural similarities with AMNEs in their response to the spatial agglomeration of investments. [ABSTRACT FROM AUTHOR]

Summary Firms from emerging countries are going global, and Europe is attracting around one-third of their direct outward investments. Growing internationalization constitutes an opportunity for technological catch up. In this paper we analyze Brazilian, Indian, and Chinese cross-border inventions with European Union (EU-27) inventors, during the period 1990–2012. Our results suggest that these inventions represent an opportunity for emerging country firms to accumulate technological capabilities, access frontier knowledge, and appropriate the property rights of co-inventions. This paper contributes to understanding catching up by emerging country firms. [ABSTRACT FROM AUTHOR]

International collaboration among researchers is a far from linear and straightforward process. Scientometric studies provide a good way of understanding why and how international research collaboration occurs and what are its costs and benefits. Our study investigates patterns of international scientific collaboration in a specific field: wine related research. We test a gravity model that accounts for geographical, cultural, commercial, technological, structural and institutional differences among a group of old world ( OW) and new world ( NW) producers and consumers. Our findings confirm the problems imposed by geographical and technological distance on international research collaboration. Furthermore, they show that similarity in trade patterns has a positive impact on international scientific collaboration. We also find that international research collaboration is more likely among peers; in other words, among wine producing countries that belong to the same group, for example, OW producers or newcomers to the wine industry [ABSTRACT FROM AUTHOR]

In this paper, we study how globalization impacts on the structure and governance patterns of value chains and on the resilience of local clusters. We study the value chains related to two Basque (Spain) companies in the wind energy industry, Iberdrola and Gamesa, and the local cluster to which they belong. We find that firms within the cluster have different types of relationships with lead companies depending on their competences and the complexity of their products. As a consequence, firms also present different potential for growth and/or resilience: some have the capacity to internationalize their operations and/or shift to the offshore wind market, others are vulnerable to competition from providers in the emerging countries. Against this context, we discuss how the cluster responds to these challenges and the role of policy. [ABSTRACT FROM AUTHOR]

Summary: From a development perspective an investigation of the changes that have occurred in the wine industry is of particular interest because it provides evidence on how emerging economies have been able to acquire significant shares of the international market in a dynamic sector. Based on novel empirical evidence, this paper shows that emerging countries with diverse institutional models and innovation strategies have actively participated in the process of technological modernization and product standardization. These newcomers in the wine sector have responded particularly effectively to changes in demand, aligning emerging scientific approaches with institutional building efforts and successful marketing strategies. [ABSTRACT FROM AUTHOR]

This paper presents a critical review of the global value chain (GVC) literature in light of the "technological capabilities" approach to innovation in less-developed countries (LDCs). Participation in GVC is beneficial for firms in LDCs, which are bound to source technology internationally. However, the issues of learning and technological efforts at the firm level remain largely hidden in the GVC literature. We propose a shift in the empirical and theoretical agenda, arguing that research should integrate the analysis of the endogenous process of technological capability development, including specific firm-level efforts, and of the mechanisms allowing knowledge to flow within and between different global value chains into the GVC literature. [ABSTRACT FROM AUTHOR]

Comparing the Korean labour productivity growth in the last two decades with the Japanese and US labour productivity growth, data confirm a process of catching up in several important manufacturing sectors. The paper investigates its determinants using a non-neoclassical model. Investments in skills and capabilities are found to be crucial in explaining this trend. Important policy implications for developing countries are then discussed. In the long run, a targeted education policy with government intervention and a strong emphasis on technical education can give high pay-offs. This conclusion holds in particular when the aim of the country is to compete in the international markets, not along the low road to competitiveness, based on squeezing wages and profit margins, but along the high road (i.e. improving productivity, wages and profits). [ABSTRACT FROM AUTHOR]

It has been shown that clustering helps local enterprises in industrial districts over-come 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. [ABSTRACT FROM AUTHOR]

There is mounting agreement that the global economy is at the nascent stage of a green transformation. In response, multinational enterprises (MNEs) are seeking to enhance their capabilities for sustainable innovation and many have started to globalise their green efforts. But to what extent and how (if at all) do green Foreign Direct Investments (FDIs) contribute to the deepening of sustainability capabilities? To address this question, we employ a novel dataset of 1217 green FDI in renewable energy sectors worldwide, during the period 1997 to 2015. A propensity score matching and difference-in-difference econometric strategy provides three main results. First, green FDIs enhance the overall orientation to sustainability of MNEs. They have both a greening effect on the firms' overall technology bases and increases specialization in specific green technologies. Second, green FDIs have a significant positive impact on the degree and quality of MNEs innovative capacity in sustainable technologies. In other words, the MNEs extend their innovative capabilities towards more sustainability-oriented direction and strengthen their innovation activities related to green technologies. Third, we find that the globalisation process mode matters: in the long run, green FDIs result in newly-established subsidiaries contributing more to innovativeness and greening than acquisition of foreign firms. These findings have important implications for policies designed to increase the sustainability transition. • GFDI enhances the overall sustainability-orientation of MNEs. • GFDI enhances the quantity and quality of green innovative capacity in MNEs. • GFDI enhances MNEs' specialization in specific green technologies. • Effects hold true for both green pure-players and multi-technology MNEs. • Effects from newly established subsidiary last longer than those from overseas acquisitions. [ABSTRACT FROM AUTHOR]

• Foreign ownership positively impacts on subsidiaries' green innovative capabilities. • MNE subsidiaries vis-à- vis domestic companies have green innovative advantage when they are in less developed but more innovative countries. • Green FDI is more effective when technologies are characterized by more taict knowledge, such as in wind when compared with Solar PV industry. • Cross-border acquisitions are more efficient at establishing green innovative capabilities than greenfield subsidiaries. • Countries with weaker green innovative capabilities can attract green FDI to enhance their contribution to the green transition. Technologies to mitigate climate change may diffuse from lead markets to the rest of the world through several mechanisms and make important contributions to the global green transformation. In this paper, we explore the role played by multinational enterprises (MNEs) in transferring knowledge and innovative capabilities in green technologies to their global subsidiaries. We posit that the degree of green knowledge transfer and innovative capability development in subsidiaries depend on: (i) the host country characteristics, (ii) the specific technology in question, and (iii) the mode of entry. The empirical analysis combines data on foreign direct investments with patent analysis. The results suggest that being a subsidiary of a green MNE has a positive impact on the number and quality of green patents produced locally. This green innovative advantage vis-à-vis domestic companies is larger in less developed countries and in those that are less reliant on oil rents, in particular if they already possess higher levels of relevant domestic innovative capacity. Furthermore, firm and sectoral characteristics also matter. The analysis suggests that green FDIs are more effective when technologies are characterized by low tradability and tacit knowledge. Finally, cross-border acquisitions are more efficient at strengthening green innovative capabilities than subsidiaries established with greenfield investments. [ABSTRACT FROM AUTHOR]