Global competition in mature industries. Upgrading through manufacturing
AbstractManufacturing industries in developed countries have been experiencing profound changes over the last decade. Production of inputs and commodity goods has been increasingly outsourced to emerging countries’ low-wage suppliers, thus nurturing an unprecedented process of ‘global shifts’. Departing from the acknowledgment of this fast-changing scenario, we raised the question of whether operation can still play a role in the economic development of Western industries. While industrial statistics confirmed that the production of standardized products has been largely relocated overseas, the development of a number of case studies in the North Carolina’s and Northeast Italy’s furniture industry outlined that the manufacture of sophisticated, customized goods keeps its roots locally. By using the global value chains (GVCs) approach, we found that in-house or in-cluster control over sourcing and operations represent a strategic activity in the process of product upgrading. Accordingly, we claim that manufacturing can still play a central role in mature industries and pave the path for a next pattern of sustainable development in Western economies.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione in its series Working Papers with number 1214.
Length: 36 pages
Date of creation: Dec 2012
Date of revision:
global value chains (GVCs); upgrading; Western industries; manufacturing;
Find related papers by JEL classification:
- F14 - International Economics - - Trade - - - Empirical Studies of Trade
- L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
- L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Other Consumer Durables
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-12-15 (All new papers)
- NEP-CSE-2012-12-15 (Economics of Strategic Management)
- NEP-HME-2012-12-15 (Heterodox Microeconomics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jason Dedrick & Kenneth L. Kraemer & Greg Linden, 2010. "Who profits from innovation in global value chains? A study of the iPod and notebook PCs," Industrial and Corporate Change, Oxford University Press, vol. 19(1), pages 81-116, February.
- Brusco, Sebastiano, 1982. "The Emilian Model: Productive Decentralisation and Social Integration," Cambridge Journal of Economics, Oxford University Press, vol. 6(2), pages 167-84, June.
- Robert C. Feenstra, .
"Integration Of Trade And Disintegration Of Production In The Global Economy,"
Department of Economics
98-06, California Davis - Department of Economics.
- Robert C. Feenstra, 1998. "Integration of Trade and Disintegration of Production in the Global Economy," Journal of Economic Perspectives, American Economic Association, vol. 12(4), pages 31-50, Fall.
- Robert Feenstra, 2003. "Integration Of Trade And Disintegration Of Production In The Global Economy," Working Papers 986, University of California, Davis, Department of Economics.
- Gibbon, Peter, 2001. "Upgrading Primary Production: A Global Commodity Chain Approach," World Development, Elsevier, vol. 29(2), pages 345-363, February.
- Nicole E Coviello, 2006. "The network dynamics of international new ventures," Journal of International Business Studies, Palgrave Macmillan, vol. 37(5), pages 713-731, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Donato Iacobucci).
If references are entirely missing, you can add them using this form.