IDEAS home Printed from https://ideas.repec.org/a/taf/ecinnt/v11y2002i6p497-523.html
   My bibliography  Save this article

Global production networks and the changing geography of innovation systems. Implications for developing countries

Author

Listed:
  • Dieter Ernst

Abstract

The paper addresses disruptive changes that globalization imposes on the geography of innovation systems, and identifies potential benefits that developing countries could reap from international linkages. The analysis is centered on three propositions. First, developing countries need to blend diverse international and domestic sources of knowledge to compensate for initially weak national production and innovation systems. Second, a greater variety of international knowledge linkages is possible, as globalization reduces the spatial stickiness of innovation. Third, globalization has culminated in an important organizational innovation: the spread of global production networks (GPN) combines concentrated dispersion with systemic integration, creating new opportunities for international knowledge diffusion. We argue that GPN provide firms and industrial districts in developing countries with new opportunities for reverse knowledge outsourcing. We explore resultant challenges that define the need for public policy response, define the new agenda for industrial upgrading, and discuss what types of policies and support institutions may help to reap the benefits from network participation.

Suggested Citation

  • Dieter Ernst, 2002. "Global production networks and the changing geography of innovation systems. Implications for developing countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 497-523.
  • Handle: RePEc:taf:ecinnt:v:11:y:2002:i:6:p:497-523
    DOI: 10.1080/10438590214341
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/10438590214341
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Dieter Ernst, 1998. "High-Tech competition puzzles - How globalization affects firm behavior and market structure in the electronics industry," Revue d'Économie Industrielle, Programme National Persée, vol. 85(1), pages 9-30.
    2. David J. TEECE, 2008. "Profiting from technological innovation: Implications for integration, collaboration, licensing and public policy," World Scientific Book Chapters, in: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World, chapter 5, pages 67-87, World Scientific Publishing Co. Pte. Ltd..
    3. Best, Michael H, 1999. "Regional Growth Dynamics: A Capabilities Perspective," Contributions to Political Economy, Oxford University Press, vol. 18(0), pages 105-119.
    4. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    5. Anthony Bartzokas & Morris Teubal, 2002. "The Political Economy Of Innovation Policy Implementation In Developing Countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(4-5), pages 271-274.
    6. Ernst, Dieter, 1997. "Partners For The China Circle? The Asian Production Networks Of Japanese Electronics Firms," UCAIS Berkeley Roundtable on the International Economy, Working Paper Series qt5215p84k, UCAIS Berkeley Roundtable on the International Economy, UC Berkeley.
    7. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    8. Romer, Paul M, 1990. "Endogenous Technological Change," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 71-102, October.
    9. Teece, David J. & Rumelt, Richard & Dosi, Giovanni & Winter, Sidney, 1994. "Understanding corporate coherence : Theory and evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 23(1), pages 1-30, January.
    10. Pari Patel & Keith Pavitt, 1991. "Large Firms in the Production of the World’s Technology: An Important Case of “Non-Globalisation”," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 22(1), pages 1-21, March.
    11. Dieter Ernst, 2000. "Inter-Organizational Knowledge Outsourcing: What Permits Small Taiwanese Firms to Compete in the Computer Industry?," Economics Study Area Working Papers 01, East-West Center, Economics Study Area.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Benjamin Montmartin & Nadine Massard, 2015. "Is Financial Support For Private R&D Always Justified? A Discussion Based On The Literature On Growth," Journal of Economic Surveys, Wiley Blackwell, vol. 29(3), pages 479-505, July.
    2. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. T. Gries & R. Grundmann & I. Palnau & M. Redlin, 2017. "Innovations, growth and participation in advanced economies - a review of major concepts and findings," International Economics and Economic Policy, Springer, vol. 14(2), pages 293-351, April.
    4. Zheng, Mingbo & Feng, Gen-Fu & Feng, Suling & Yuan, Xuemei, 2019. "The road to innovation vs. the role of globalization: A dynamic quantile investigation," Economic Modelling, Elsevier, vol. 83(C), pages 65-83.
    5. Jan Fagerberg & Maryann Feldman & Martin Srholec, 2011. "Technological Dynamics and Social Capability: Comparing U.S. States and European Nations," Working Papers on Innovation Studies 20111114, Centre for Technology, Innovation and Culture, University of Oslo.
    6. Tavassoli, Sam & Karlsson, Charlie, 2015. "Persistence of various types of innovation analyzed and explained," Research Policy, Elsevier, vol. 44(10), pages 1887-1901.
    7. Ernest Miguélez & Rosina Moreno, 2016. "“Relatedness, external linkages and innovation”," IREA Working Papers 201603, University of Barcelona, Research Institute of Applied Economics, revised Apr 2016.
    8. Pedro de Faria & Francisco Lima, 2012. "Interdependence and spillovers: is firm performance affected by others’ innovation activities?," Applied Economics, Taylor & Francis Journals, vol. 44(36), pages 4765-4775, December.
    9. Gehringer, Agnieszka, 2016. "Knowledge externalities and sectoral interdependences: Evidence from an open economy perspective," Technological Forecasting and Social Change, Elsevier, vol. 102(C), pages 240-249.
    10. Castillo, Victoria & Figal-Garone, Lucas & Maffioli, Alessandro & Rojo, Sofia & Stucchi, Rodolfo, 2016. "The Effects of Knowledge Spillovers through Labor Mobility," MPRA Paper 69141, University Library of Munich, Germany.
    11. Rafael Boix & José Luis Hervás-Oliver & Blanca De Miguel-Molina, 2013. "“I want creative neighbours”. Do creative service industries spillovers cross regional boundaries?," Working Papers 1315, Department of Applied Economics II, Universidad de Valencia.
    12. Gabriele Tondl, 2002. "Trade, Human Capital and Innovation: The Engines of European Regional Growth in the 1990s," Computing in Economics and Finance 2002 237, Society for Computational Economics.
    13. Marta Aloi & Joanna Poyago-Theotoky & Frederic Tournemaine, 2018. "Growth and the geography of knowledge," Discussion Papers 2018-04, University of Nottingham, GEP.
    14. Aghion, Philippe & Akcigit, Ufuk & Cagé, Julia & Kerr, William R., 2016. "Taxation, corruption, and growth," European Economic Review, Elsevier, vol. 86(C), pages 24-51.
    15. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, December.
    16. Pierre-Alexandre Balland & David L. Rigby, 2015. "The geography and evolution of complex knowledge," Papers in Evolutionary Economic Geography (PEEG) 1502, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2015.
    17. A. Ashwin & Rishikesha Krishnan & Rejie George, 2015. "Family firms in India: family involvement, innovation and agency and stewardship behaviors," Asia Pacific Journal of Management, Springer, vol. 32(4), pages 869-900, December.
    18. Pedro Faria, 2007. "Santarelli, E. (Ed.): Entrepreneurship, Growth, and Innovation. The Dynamics of Firms and Industries," Journal of Economics, Springer, vol. 91(3), pages 304-309, July.
    19. Vincent Van Roy & Daniel Nepelski, 2016. "Assessment of Framework Conditions for the Creation and Growth of Firms in Europe," JRC Working Papers JRC103350, Joint Research Centre (Seville site).
    20. Iritié, B. G. Jean-Jacques, 2014. "Enjeux des politiques industrielles basées sur les clusters d'innovation: cas des pôles de compétitivité [Issues of Innovative Clusters-based Industrial Policy: Case of Pole of Competitiveness]," MPRA Paper 54429, University Library of Munich, Germany.

    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:taf:ecinnt:v:11:y:2002:i:6:p:497-523. 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: (Chris Longhurst). General contact details of provider: http://www.tandfonline.com/GEIN20 .

    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.