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Dispersed Model of Production and Smart Agenda of National Economic Strategies
[Распределенное Производство И «Умная» Повестка Национальных Экономических Стратегий]

Author

Listed:
  • Smorodinskaya, Nataliya V. (Смородинская, Наталья В.)

    (Institute of Economics, Russian Academy of Sciences)

  • Katukov, Daniel D. (Катуков, Даниил)

    (Institute of Economics, Russian Academy of Sciences)

Abstract

The article deals with organizational complexity of production process in the era of digitalization and interactive innovation. In the 21st century, this process ultimately goes beyond national borders. It becomes fragmented into specialized tasks, which are geographically dispersed across the nodes of global value chains (GVCs). GVCs are a phenomenon where countries’ intermediary exports are utilized by other countries for further processing and re-export to third countries. We describe GVCs as dispersed business networks that are organized and coordinated by global firms as a common project of independent suppliers, which has its certain time frame and sequence of actions. Organizers of GVCs allocate their nodes in a configuration that allows them to create new products with reduced costs and largest portion of value added. For achieving this goal, global firms reshuffle the geographical arrangement of GVC nodes, aiming to find for each task a specialized contractor from a local cluster where this task can be performed with maximum efficiency. We provide data on proliferation of GVCs across world regions, while examining the extent and quality of a country’s participation in GVCs, including Russia. We consider business strategies (offshoring, re-shoring, smart-sourcing) that generate growing complexity of GVCs in terms of their geography and configuration, and describe the resulting formation of global production and innovation networks, as well as macro-regional networkbased “factories” in the world economy. We highlight the importance of building up economic openness, increasing export value through broad liberalization of imports, and leveraging competitive advantages of foreign partners for the benefit of national competitiveness.

Suggested Citation

  • Smorodinskaya, Nataliya V. (Смородинская, Наталья В.) & Katukov, Daniel D. (Катуков, Даниил), 2017. "Dispersed Model of Production and Smart Agenda of National Economic Strategies [Распределенное Производство И «Умная» Повестка Национальных Экономических Стратегий]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 72-101, December.
  • Handle: RePEc:rnp:ecopol:ep1763
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    References listed on IDEAS

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    Cited by:

    1. A. V. Frolov, 2018. "Public-Private Partnership as Timely Innovation Factor of the USA," Outlines of global transformations: politics, economics, law, Center for Crisis Society Studies, vol. 11(2).
    2. Ding Nan & Pomi Shahbaz & Shamsheer ul Haq & Muhammad Nadeem & Muhammad Imran, 2023. "The Economies’ Ability to Produce Diversified and Complex Goods to Meet the Global Competition: Role of Gross Value Chain, Institutional Quality, and Human Capital," Sustainability, MDPI, vol. 15(8), pages 1-17, April.
    3. Smorodinskaya, N. & Katukov, D., 2022. "Russia's opportunities for entering Industry 4.0 markets by improving its position in distributed production," Journal of the New Economic Association, New Economic Association, vol. 53(1), pages 223-231.

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    More about this item

    Keywords

    fragmentation of production; global value chains; innovation clusters; network interactions; national economic policy; offshoring; smart specialization.;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F60 - International Economics - - Economic Impacts of Globalization - - - General
    • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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