Business Networks in the Leipzig, Dresden, Chemnitz and Halle Regions: Do Member Firms Locate in Spatial Proximity?
Gerhard Heimpold
Wirtschaft im Wandel,
No. 4,
2010
Abstract
The business landscape in East Germany mainly consists of small and medium-sized firms. This in mind, business networks may contribute to an improvement of the economic performance of firms which collaborate in business networks. For successful networking a mix of network members being locally concentrated on the one side and of partners from distant regions, especially from abroad, on the other side, is important. In regional economics, this duality is highlighted for two reasons: personal contacts of partners which are located in spatial proximity to each other may ease the transfer of tacit knowledge. The flow of tacit knowledge can be regarded as a factor which enhances innovation processes. However, the inclusion of partners from abroad is important, too. It facilitates access to the most advanced knowledge and technologies worldwide. The academic debate on networking regards a one-sided orientation on the local dimension of networking as risky due to possible lock-in effects. The empirical findings for 93 business networks existing in the regions of Leipzig, Dresden, Chemnitz and Halle, which are located in the southern part of East Germany, reveal a great proportion of network members concentrated locally: On average, this is the case with more than 50% of the network members. 10% of members are located in the other three city regions mentioned. More than one third of firms are located outside, in other German regions, of which around the half in the states of Saxony and Saxony-Anhalt. A minority of 2% is located abroad. However, for the transfer of externally existing knowledge other network members may be relevant, too. To illustrate: More than four fifths of the networks under investigation include public research units (universities etc.) which usually play an important role when it comes to an inter-regional and international knowledge transfer.
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Market Concentration and Innovation in Transnational Corporations: Evidence from Foreign Affiliates in Central and Eastern Europe
Liviu Voinea, Johannes Stephan
Research on Knowledge, Innovation and Internationalization (Progress in International Business Research, Volume 4),
2009
Abstract
Purpose – The main research question of this contribution is whether local market concentration influences R&D and innovation activities of foreign affiliates of transnational companies.
Methodology/approach – We focus on transition economies and use discriminant function analysis to investigate differences in the innovation activity of foreign affiliates operating in concentrated markets, compared to firms operating in nonconcentrated markets. The database consists of the results of a questionnaire administered to a representative sample of foreign affiliates in a selection of five transition economies.
Findings – We find that foreign affiliates in more concentrated markets, when compared to foreign affiliates in less concentrated markets, export more to their own foreign investor's network, do more basic and applied research, use more of the existing technology already incorporated in the products of their own foreign investor's network, do less process innovation, and acquire less knowledge from abroad.
Research limitations/implications – The results may be specific to transition economies only.
Practical implications – The main implications of these results are that host country market concentration stimulates intranetwork knowledge diffusion (with a risk of transfer pricing), while more intense competition stimulates knowledge creation (at least as far as process innovation is concerned) and knowledge absorption from outside the affiliates' own network. Policy makers should focus their support policies on companies in more competitive sectors, as they are more likely to transfer new technologies.
Originality/value – It contributes to the literature on the relationship between market concentration and innovation, based on a unique survey database of foreign affiliates of transnational corporations operating in Eastern Europe.
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Deutsche Einheit – ein wirtschaftlicher Gewinn
Ulrich Blum
MUT – Zeitschrift für Kultur,
2009
Abstract
20 years after the fall of the wall the interest in the evaluation of the economic development of Germany after unification has increased. The article shows that from a Western German perspective, unification generated large gains because in an expending fail of economic development highly qualified personal from East Germany could be attracted and triggered growth in the West. This also generated a modernization of industry. The perspective on the Eastern side is more mixed. After a first transitory face, an ultra-modern industry has emerged, but gaps in the headquarter functions still exist. They can only be closed within a context of a new technology cycle. From the perspective of unified Germany, the high transfers of 1.3 trillion Euros in the last 20 years, dominantly used for stabilizing social security systems in the East, could mostly be faced out of unification-related additional economic performance in West Germany.
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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.
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Determinants of Academic-Industry Linkages and Incubator-internal Cooperation Patterns of Incubator Firms: Empirical Evidence from Germany
Michael Schwartz, Christoph Hornych
IWH Discussion Papers,
No. 2,
2009
Abstract
The article examines cooperation patterns of firms located in German business incubators (BIs) and technology centers. Based on cross-sectional data, the study explores the network activities within the tenant portfolio and the academic-industry linkages of the tenant firms. In this respect, we contribute to the literature on the impact of business incubation by explicitly considering differences regarding cooperation patterns between diversified and specialized incubator facilities. Contrary to common assumptions, we do not find a higher propensitiy for incubator-internal cooperation activities for firms located in specialized BIs. However, firms located in specialized BIs show significantly higher propensity to engage in academic-industry linkages compared to firms located in diversified incubators.
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In which Ways do Universities React to New Technologies? The Case of Photovoltaics
Peter Franz
Wirtschaft im Wandel,
No. 12,
2008
Abstract
Universities can be conceived as actors in regional innovative systems with the functions to make available new knowledge for a region, to contribute to the human capital formation by teaching, and to the extension of the knowledge by research. These functions are in particular important concerning the adaptation of new technologies, e.g. photovoltaics. 89 German universities – amongst them 65 universities of applied sciences – meanwhile offer 171 full-time study courses with a degree oriented to photovoltaics. Each federal state has at least one university location offering such degrees. A certain spatial concentration of courses can be shown for Saxony, for the Ruhr Area and for the Rhine Main Region. Almost 90% of the degrees are offered by faculties of engineering. 43% of the universities with degrees in photovoltaics have successfully applied for research grants from the photovoltaics research programs of the federal government. These numbers show a spatial concentration of research in the South whereas the photovoltaics industry is concentrated in the East of Germany. This distribution indicates that the research opportunities tied to the photovoltaics industry are not in the Eastern part of Germany. Further research will have to pay more attention to the role of research institutes.
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Getting out of the ivory tower – New perspectives on the entrepreneurial university
Jutta Günther, Kerstin Wagner
European Journal of International Management,
2008
Abstract
Based on theoretical considerations about the ‘third mission’ of
universities and the discussion of different types of university-industry relations, we conclude that the entrepreneurial university is a manifold institution with direct
mechanisms to support the transfer of technology from academia to industry
as well as indirect mechanisms in support of new business activities via
entrepreneurship education. While existing literature usually deals with one or
another linking mechanism separately, our central hypothesis is that direct and
indirect mechanisms should be interrelated and mutually complementary. We
emphasise the importance of a more holistic view of the entrepreneurial university
and empirically investigate the scope and interrelatedness of direct technology
transfer mechanisms and indirect mechanisms, such as entrepreneurship education
at German universities. We find a variety of activities in both fields and most
universities’ technology transfer facilities and the providers of entrepreneurship
education co-operate in support of innovative start-ups.
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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.
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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.
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The Relationship between Knowledge Intensity and Market Concentration in European Industries: An inverted U-Shape
Niels Krap, Johannes Stephan
IWH Discussion Papers,
No. 3,
2008
Abstract
This paper is motivated by the European Union strategy to secure competitiveness for Europe in the globalising world by focussing on technological supremacy (the Lisbon - agenda). Parallel to that, the EU Commission is trying to take a more economic approach to competition policy in general and anti-trust policy in particular. Our analysis tries to establish the relationship between increasing knowledge intensity and the resulting market concentration: if the European Union economy is gradually shifting to a pattern of sectoral specialisation that features a bias on knowledge intensive sectors, then this may well have some influence on market concentration and competition policy would have to adjust not to counterfeit the Lisbon-agenda. Following a review of the available theoretical and empirical literature on the relationship between knowledge intensity and market structure, we use a larger Eurostat database to test the shape of this relationship. Assuming a causality that runs from knowledge to concentration, we show that the relationship between knowledge intensity and market structures is in fact different for knowledge intensive industries and we establish a non-linear, inverted U-curve shape.
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