IDEAS home Printed from https://ideas.repec.org/a/rnp/ecopol/ep1763.html
   My bibliography  Save this article

Dispersed Model of Production and Smart Agenda of National Economic Strategies

Author

Listed:
  • SMORODINSKAYA, Nataliya V.

    (Institute of Economics, Russian Academy of Sciences)

  • KATUKOV, Daniel D.

    (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. & KATUKOV, Daniel D., 2017. "Dispersed Model of Production and Smart Agenda of National Economic Strategies," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 6, pages 72-101, December.
  • Handle: RePEc:rnp:ecopol:ep1763
    as

    Download full text from publisher

    File URL: ftp://w82.ranepa.ru/rnp/ecopol/ep1763.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Daria Taglioni & Deborah Winkler, 2016. "Making Global Value Chains Work for Development," World Bank Publications, The World Bank, number 24426.
    2. Timothy J. Sturgeon, 2002. "Modular production networks: a new American model of industrial organization," Industrial and Corporate Change, Oxford University Press, vol. 11(3), pages 451-496, June.
    3. Jones, Ronald & Kierzkowski, Henryk & Lurong, Chen, 2005. "What does evidence tell us about fragmentation and outsourcing?," International Review of Economics & Finance, Elsevier, vol. 14(3), pages 305-316.
    4. Berger, Suzanne with the MIT Task Force on Production in the Innovation Economy, 2013. "Making in America: From Innovation to Market," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262019914, January.
    5. Christian H.M. Ketels & Olga Memedovic, 2008. "From clusters to cluster-based economic development," International Journal of Technological Learning, Innovation and Development, Inderscience Enterprises Ltd, vol. 1(3), pages 375-392.
    6. Phillips, Fred & Linstone, Hal, 2016. "Key ideas from a 25-year collaboration at technological forecasting & social change," Technological Forecasting and Social Change, Elsevier, vol. 105(C), pages 158-166.
    7. Marek Tiits & Tarmo Kalvet, 2012. "Nordic small countries in the global high-tech value chains: the case of telecommunications systems production in Estonia," The Other Canon Foundation and Tallinn University of Technology Working Papers in Technology Governance and Economic Dynamics 38, TUT Ragnar Nurkse Department of Innovation and Governance.
    8. John Humphrey & Hubert Schmitz, 2002. "How does insertion in global value chains affect upgrading in industrial clusters?," Regional Studies, Taylor & Francis Journals, vol. 36(9), pages 1017-1027.
    9. Marcel P. Timmer & Erik Dietzenbacher & Bart Los & Robert Stehrer & Gaaitzen J. Vries, 2015. "An Illustrated User Guide to the World Input–Output Database: the Case of Global Automotive Production," Review of International Economics, Wiley Blackwell, vol. 23(3), pages 575-605, August.
    10. De Backer, Koen & Miroudot, Sébastien, 2014. "Mapping global value chains," Libros de la CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), number 37176, June.
    11. …rjan Sölvell, 2012. "The Multi-home-based Corporation: Solving an Insider–Outsider Dilemma," Chapters,in: Innovation and Institutional Embeddedness of Multinational Companies, chapter 3 Edward Elgar Publishing.
    12. Kevin C Cheng & Sidra Rehman & Dulani Seneviratne & Shiny Zhang, 2015. "Reaping the Benefits from Global Value Chains," IMF Working Papers 15/204, International Monetary Fund.
    13. Andrew B. Bernard & Teresa C. Fort, 2015. "Factoryless Goods Producing Firms," American Economic Review, American Economic Association, vol. 105(5), pages 518-523, May.
    14. Neil M. Coe & Peter Dicken & Martin Hess, 2008. "Global production networks: realizing the potential," Journal of Economic Geography, Oxford University Press, vol. 8(3), pages 271-295, May.
    15. Ju Liu & Cristina Chaminade & Bjorn Asheim, 2013. "The Geography and Structure of Global Innovation Networks: A Knowledge Base Perspective," European Planning Studies, Taylor & Francis Journals, vol. 21(9), pages 1456-1473, September.
    16. Johnson, Robert C. & Noguera, Guillermo, 2012. "Accounting for intermediates: Production sharing and trade in value added," Journal of International Economics, Elsevier, vol. 86(2), pages 224-236.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

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

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnp:ecopol:ep1763. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (RANEPA maintainer). General contact details of provider: http://edirc.repec.org/data/aneeeru.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.