Foreign Investors and Domestic Suppliers: What Feeds Positive External Effects?
Jutta Günther, Björn Jindra, Daniel Sischka
Wirtschaft im Wandel,
No. 9,
2009
Abstract
The empirical study analyses the potential for positive external effects from foreign investors in favor of domestic firms using the IWH-FDI micro database and taking into account firm-specific characteristics of foreign investors in selected Central and East European countries as well as in Eastern Germany. The analysis shows that only half of the foreign investors believe that they are important for technological activities in domestic supplier firms. Thereby, the potential for external positive effects is higher in Central and Eastern Europe than in Eastern Germany. A reason for this might be that supplier firms in Eastern Germany already operate on a clearly higher technological level than their counterparts in Central and Eastern Europe. Taking into account the share of domestic supplies of foreign investors, it shows that the potential for positive external effects increases only to a certain point from which on the spillover potential stagnates or even declines. Furthermore, there is clear evidence for the following characteristics of foreign investors to increase the potential for positive external effects: innovativeness of the foreign investor, internal and external technological cooperation of foreign investors, independence from the headquarters in research and development issues and market entry through acquisition (instead of greenfield investment). The share of foreign participation as well as the duration of presence in the host economy does not show any statistically significant effect on the potential for external effects. Policy makers should therefore not only aim at the settlement of employment intensive foreign investors, but also and particularly support investors that are characterized by technological activity and regional integration.
Read article
European Commission, Leibniz Association and IWH Discuss Innovation Related Policy in Transitions Regions
Björn Jindra, Katja Wilde
Wirtschaft im Wandel,
No. 7,
2009
Abstract
On February 17, 2009, the Halle Institute for Economic Research (IWH) and the Leibniz Association (WGL) held the final conference of the EU-project “Understanding the Relationship between Knowledge and Competitiveness in the Enlarging European Union” (U-know) in Brussels. The research dealt with systemic aspects of innovation and knowledge transfer as well as the development of R&D (research and development) and innovation related policy. Thereby, a particular emphasis was put on the challenges facing the new EU member states and East Germany. The research project proved to be very productive with 54 research papers in refereed journals as well as 33 articles in edited volumes.
The aim of the conference was to present and discuss the main results of the U-know project with experts from the industry as well as the political and scientific community. Within four parallel sessions (Enterprises and markets, Public science and industry links, Systems and governance, Role of institutions), research output was presented. Representatives of the EU Commission commented directly on the presentations with a view on policy implications. In a final panel, all participants underlined the increasing importance of education, R&D, and innovation related policy to support the competitiveness of the EU-15 countries as well as the catching-up process of the new EU member states. The conference has raised significant interest both within the scientific community and the EU Commission.
Read article
Knowledge City Berlin? Potenziale und Risiken einer Stadtentwicklungsstrategie mit dem Fokus Wissenschaft
Peter Franz
Das Wissen der Städte. Neue stadtregionale Wissensdynamiken im Kontext von Wissen, Milieus und Governance,
2009
Abstract
In this chapter the author applies his own „knowledge city“ approach (Franz 2007) to the German capital city of Berlin. After examining the quality profile of the universities located at Berlin the author analyses diverse strategic steps in support of a sharpened scientific profile having already been put into action by managers being responsible for science policy in Berlin.
Read article
Globalisierung von Forschung und Entwicklung – der Technologiestandort Deutschland
Jutta Günther, Björn Jindra, Johannes Stephan
Wirtschaft im Wandel,
No. 2,
2009
Abstract
Am 11. November 2008 fand am Institut für Wirtschaftsforschung Halle (IWH) zum zweiten Mal ein innovationspolitischer Workshop statt, diesmal zum Thema „Globalisierung von Forschung und Entwicklung – der Technologiestandort Deutschland“. Die Veranstaltung bildete zugleich einen Bestandteil des vom IWH koordinierten EU-Projekts U-Know („Understanding the Relationship between Knowledge and Competitiveness in the Enlarging EU“), das sich mit einer Reihe innovationsökonomischer Forschungsthemen beschäftigt. Der Workshop hatte zum Ziel, das Thema Globalisierung von Forschung und Entwicklung aus wissenschaftlicher, unternehmerischer und innovationspolitischer Perspektive zu beleuchten und die Position Deutschlands im internationalen Technologiewettbewerb zu diskutieren.
Read article
The Role of the Intellectual Property Rights Regime for Foreign Investors in Post-Socialist Economies
Benedikt Schnellbächer, Johannes Stephan
IWH Discussion Papers,
No. 4,
2009
Abstract
We integrate international business theory on foreign direct investment (FDI) with institutional theory on intellectual property rights (IPR) to explain characteristics and behaviour of foreign investment subsidiaries in Central East Europe, a region with an IPR regime-gap vis-à-vis West European countries. We start from the premise that FDI may play a crucial role for technological catch-up development in Central East Europe via technology and knowledge transfer. By use of a unique dataset generated at the IWH in collaboration with a European consortium in the framework of an EU-project, we assess the role played by the IPR regimes in a selection of CEE countries as a factor for corporate governance and control of foreign invested subsidiaries, for their own technological activity, their trade relationships, and networking partners for technological activity. As a specific novelty to the literature, we assess the in influence of the strength of IPR regimes on corporate control of subsidiaries and conclude that IPR-sensitive foreign investments tend to have lower functional autonomy, tend to cooperate more intensively within their transnational network and yet are still technologically more active than less IPR-sensitive subsidiaries. In terms of economic policy, this leads to the conclusion that the FDI will have a larger developmental impact if the IPR regime in the host economy is sufficiently strict.
Read article
Evaluierung der FuE-Projektförderung des Sächsischen Staatsministeriums für Wirtschaft und Arbeit – Endbericht
Jutta Günther, Claus Michelsen, François Peglow, Mirko Titze, Michael Fritsch, F. Noseleit, A. Schröter
IWH-Sonderhefte,
No. 3,
2008
Abstract
Mit der Globalisierung ist über den Wettbewerb auf den Gütermärkten hinaus vor allem der Wettbewerb der Ordnungen deutlich fühlbarer geworden. In dieser „flachen Welt“ sind Staaten oder Staatenbünde aufgefordert, Rahmenbedingungen zu schaffen, die es den einzelnen Unternehmen ermöglichen, wirtschaftlich erfolgreich auf den Weltmärkten aufzutreten und damit Wachstum zu erzielen sowie Beschäftigung zu sichern. Dieser Sachverhalt wird auf unterer, regionaler Ebene als Wettbewerb der Standorte besonders fühlbar. In föderalen Systemen wie dem der Bundesrepublik Deutschland besitzen einzelne Bundesländer wirtschaftspolitische Gestaltungsfreiheiten, diesen wirtschaftlichen und letztlich auch politischen Wettbewerb zu nutzen. Das gemeinsame regulatorische Dach beschränkt die Handlungsmöglichkeiten, damit Grundprinzipien einer freiheitlichen Wirtschaftsordnung nicht verletzt werden.
Read article
Foreign Subsidiaries in the East German Innovation System – Evidence from manufacturing industries
Jutta Günther, Johannes Stephan, Björn Jindra
Applied Economics Quarterly Supplement,
No. 59,
2008
Abstract
This paper analyses the extent of technological capability of foreign subsidiaries located in East Germany, and looks at the determinants of foreign subsidiaries’ technological sourcing behaviour. The theory of international production underlines the importance of strategic and regional level variables. However, existing empirical approaches omit by and large regional level factors. We employ survey evidence from the “FDI micro database” of the IWH, that was only recently made available, to conduct our analyses. We find that foreign subsidiaries are above average technologically active in comparison to the whole East German manufacturing. This can be partially explained by the industrial structure of foreign direct investment. However, only a limited share of foreign subsidiaries with R&D and/or innovation activity source technological knowledge from the East German innovation system. If a subsidiary follows a competence augmenting strategy or does local trade, it is more likely to source technological knowledge locally. The endowment of a region with human capital and a scientific infrastructure has a positive effect too. The findings suggest that foreign subsidiaries in East Germany are only partially linked with the regional innovation system. Policy implications are discussed.
Read article
Foreign Subsidiaries in the East German Innovation System – Evidence from Manufacturing Industries
Jutta Günther, Björn Jindra, Johannes Stephan
IWH Discussion Papers,
No. 4,
2008
Abstract
This paper analyses the extent of technological capability of foreign subsidiaries located in East Germany, and looks at the determinants of foreign subsidiaries’ technological sourcing behaviour. The theory of international production underlines the importance of strategic and regional level variables. However, existing empirical approaches omit by and large regional level factors. We employ survey evidence from the “FDI micro data- base” of the IWH, that was only recently made available, to conduct our analyses. We find that foreign subsidiaries are above average technologically active in comparison to the whole East German manufacturing. This can be partially explained by the industrial structure of foreign direct investment. However, only a limited share of foreign subsidiaries with R&D and/or innovation activity source technological knowledge from the East German innovation system. If a subsidiary follows a competence augmenting strategy or does local trade, it is more likely to source technological knowledge locally. The endowment of a region with human capital and a scientific infrastructure has a positive effect too. The findings suggest that foreign subsidiaries in East Germany are only partially linked with the regional innovation system. Policy implications are discussed.
Read article
Spatial Distribution of East German Innovative Competencies: Significant Increase in the Southwestern Hinterland of Berlin and in the Centres of Saxony and Thuringia
Peter Franz
Wirtschaft im Wandel,
No. 9,
2007
Abstract
Patent applications constitute an essential indicator for the extent of innovative activities in an economy or region. Due to the fact that innovative activities are in general spatially concentrated, policy makers perceive in this information starting points for a growth-oriented regional policy. Against this background, the Halle Institute for Economic Research (IWH) in 2004 had examined the spatial distribution of industries, firm networks and innovative competencies in the context of an area-wide study for East Germany. Newly available data for the patent statistics allow for an updating of these results regarding the innovative competencies for the time period from 2000 to 2005. In comparison to the time period between 1995 and 2000, an increase in innovative competencies becomes evident. This growth takes place almost exclusively in regions where innovative competencies are already domiciled. All in all, the growth dynamics of East Germany with regard to patent applications is slightly behind the West German one. The distribution of technological fields, to which the applied patents refer to, remained largely constant during the two observation periods. In the area of bio-technology, electrical engineering and of health care the standing of East Germany has further improved. With regard to political implications, the data should not be used for imposing technology specific support programs. Instead a tax relief for R&D independent of the used technologies seems to be more adequate.
Read article
Der Einfluß von Führungsfunktionen auf das Regionaleinkommen: eine ökonometrische Analyse deutscher Regionen
Ulrich Blum
Wirtschaft im Wandel,
No. 6,
2007
Abstract
We analyze the income position of German regions based on the concept of input potentials by estimating regional production functions. The concept, developed in the late 1970s, suggests that the regional production frontier depends on input capacities that can be over- or underutilized, once a benchmark, i.e. a national yardstick, is defined.
In this paper, this concept is taken up and applied to united Germany. Including variables that capture headquarter and R&D effects of firms on regional income to account for the entrepreneurial competence in regions extends a recent paper. It is shown that headquarter functions play a decisive role in describing the east-west income divide. In total, 85% of the East’s average income lag is explained by three factors: technology, headquarter functions, and transport accessibility.
Read article