Analyzing Innovation Drivers in the German Laser Industry: the Role of Positioning in the Social and Geographical Space
Muhamed Kudic, Peter Bönisch, Iciar Dominguez Lacasa
Abstract
Empirical and theoretical contributions provide strong evidence that firm-level performance outcomes in terms of innovativeness can either be determined by the firm’s position in the social space (network effects) or by the firm’s position in the geographical space (co-location effects). Even though we can observe quite recently first attempts in bringing together these traditionally distinct research streams (Whittington et al. 2009), research on interdependent network and geographical co-location effects is still rare. Consequently, we seek to answer the following research question: considering that the effects of social and geographic proximity on firm’s innovativeness can be interdependent, what are the distinct and combined effects of firm’s network and geographic position on firm-level innovation output? We analyze the innovative performance of German laser source manufacturers between 1995 and 2007. We use an official database on publicly funded R&D collaboration projects in order to construct yearly networks and analyze firm’s network positions. Based on information on population entries and exits we calculate various types of geographical proximity measures between private sector and public research organizations (PRO). We use patent grants as dependent variable in order to measure firm-level innovation output. Empirical results provide evidence for distinct effect of network degree centrality. Distinct effect of firm’s geographical co-location to laser-related public research organization promotes patenting activity. Results on combined network and co-location effects confirms partially the existence of in-terdependent proximity effects, even though a closer look at these effects reveals some ambiguous but quite interesting findings.
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Is East Germany Catching Up? A Time Series Perspective
Bernd Aumann, Rolf Scheufele
Post-Communist Economies,
2010
Abstract
This article assesses whether the economy of East Germany is catching up with the West German region in terms of welfare. While the primary measure for convergence and catching up is per capita output, we also look at other macroeconomic indicators such as unemployment rates, wage rates and production levels in the manufacturing sector. In contrast to existing studies of convergence between regions of the reunified Germany, our approach is based purely upon the time series dimension and is thus directly focused on the catching up process in East Germany as a region. Our testing set-up includes standard ADF unit root tests as well as unit root tests that endogenously allow for a break in the deterministic component of the process. We find evidence of catching up for East Germany for most of the indicators. However, the convergence speed is slow, and thus it can be expected that the catching up process will take further decades until the regional gap is closed.
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Specialization, Diversity, Competition and their Impact on Local Economic Growth in Germany
Martin T. W. Rosenfeld, Annette Illy, Michael Schwartz, Christoph Hornych
Abstract
This study systematically examines the impact of fundamental elements of urban economic structure on urban growth in Germany from 2003 to 2007. We test four elements simultaneously, that is sectoral specialization, diversification of economic activities, urban size as well as the impact of local competition. To account for the effect of varying spatial delimitations in the analysis of urban growth, we further differentiate between cities and planning regions as geographical units. The analysis covers manufacturing industries as well as service sectors. Most previous work produces inconsistent results and concentrates on localization economies and/or diversification, while urban size and the effect of local competition are widely ignored. Our regression results show a U-shaped relationship between localization economies and urban growth and positive effects of local competition on urban growth. With respect to diversification, we find positive effects on urban growth on the city-level, but insignificant results on the level of the planning regions. The impact of urban size also differs between free cities and planning regions; in the former a U-shaped relationship is found whereas the effect is inversely U-shaped for the latter.
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May Cities in De-Industrialized Regions Become Hot Spots for Attracting Cultural Businesses? The Case of Media Industry in Halle an der Saale (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
European Planning Studies,
2010
Abstract
Policy-makers from many regions where old industrial structures in the field of manufacturing have collapsed are trying to stimulate entrepreneurial activities of businesses in the cultural industry. The question is whether this strategy could be successful. This article examines the strategy of supporting the sector of media industry (“MI”) by policy-makers in the region of Halle in East Germany, where a strong de-industrialization has taken place after the German reunification. Stimulated by the policy-makers' support measures, there actually was a remarkable development of MI. However, the number of MI firms and their employees did not further increase in recent years, after having reached a certain level. This illustrates the limits of political measures for turning a city's path of industrial development voluntarily.
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The Manufacturing Sector in East Germany on a Path from De-industrialization to Re-industrialization: Are there Economically Sustainable Structures?
Gerhard Heimpold
Wirtschaft im Wandel,
20 Jahre Deutsche Einheit - Teil 1 -
2009
Abstract
Der Beitrag untersucht, welche Entwicklung die ostdeutsche Industrie in der Zeit nach dem Übergang in die Marktwirtschaft genommen hat und ob die hinter den wirtschaftlichen Ergebnissen stehenden Faktoren und Strukturen Merkmale wirtschaftlicher Nachhaltigkeit aufweisen. Gemessen an den wirtschaftlichen Ergebnissen wurde seit Beginn der 90er Jahre viel erreicht: Die Bruttowertschöpfung ist auf das Zweieinhalbfache gestiegen, die industrielle Produktivität liegt bei reichlich vier Fünfteln des westdeutschen Vergleichswertes. Die Produktivitätssteigerung allerdings ging mit einer Halbierung der Industriebeschäftigung im Zeitraum von 1991 bis 2008 einher, trotz eines leichten Zuwachses in den Jahren 2006 bis 2008. Die Lage und Entwicklung der Industrie in den einzelnen Neuen Ländern stellt sich allerdings sehr unterschiedlich dar. Beim industriellen Beschäftigtenbesatz liegt das Bundesland Thüringen vor einigen westdeutschen Bundesländern.
Bei den hinter den Ergebnissen stehenden Faktoren und Strukturen deutet nicht alles auf ökonomische Nachhaltigkeit hin. Zwar wurde im Vergleich zur westdeutschen Industrie überdurchschnittlich viel in die Modernisierung des Sachkapitalstocks investiert, und beim Humankapital verfügt die ostdeutsche Industrie über einen Anteil von Beschäftigten mit Hoch- und Fachschulabschluss, der jenem in Westdeutschland entspricht. Doch bei den Forschungs- und Entwicklungs-(FuE-)Aktivitäten, die für ökonomisch nachhaltige, sprich zukunftsgerichtete, Industrieaktivitäten stehen, offenbaren sich gemessen an wichtigen Inputgrößen Defizite. Letztere resultieren aus den strukturellen Besonderheiten der ostdeutschen Industrie, zu denen nicht zuletzt die Dominanz kleiner und mittlerer Unternehmen und das Fehlen größerer Unternehmen gehören. Mit der inputseitig schwach ausgeprägten FuE im Unternehmenssektor korrespondiert ein vergleichsweise geringer Anteil technologieintensiver Branchen, während der Anteil arbeitsintensiver Branchen höher als in den Alten Bundesländern ausfällt. Ein weiterer Wandel hin zu nachhaltigeren Industriestrukturen wird also nottun. Denn aus wachstumstheoretischer Sicht lässt sich ein dauerhafter Wachstumspfad hauptsächlich mit technologieintensiven Produktionen verwirklichen. Arbeitsintensive Branchen stehen dagegen im internationalen Wettbewerb besonders unter Kostendruck. Auch die funktionalen Strukturen offenbaren in puncto ökonomischer Nachhaltigkeit Defizite. Der Anteil von Beschäftigten in industriellen Fertigungsfunktionen liegt über den westdeutschen Verhältnissen, und jener in hochwertigen -Dienstleistungs- ebenso wie in den übrigen Dienstleistungsfunktionen liegt darunter. Dies weist erneut auf den Mangel an Unternehmen mit Führungsfunktionen in den Neuen Ländern hin. Will die ostdeutsche Industrie auf dauerhaftem Wachstumskurs bleiben, wird demnach ein weiterer Strukturwandel zugunsten technologie- und humankapitalintensiver Produktionen erforderlich sein, den die Wirtschaftspolitik durch günstige Rahmenbedingungen unterstützen sollte.
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Investment (FDI) Policy for Azerbaijan, Final report
Jutta Günther, Björn Jindra
Einzelveröffentlichungen,
No. 4,
2009
Abstract
The report has been prepared on behalf of the Association for Technical Cooperation (GTZ) as integral part of the “Private Sector Development Program” run by the GTZ in Azerbaijan. A comprehensive investment policy is outlined with particular focus on the possibilities to attract foreign direct investment (FDI) in Azerbaijan’s manufacturing industry (non-oil sector). The report makes particular reference to the experiences with investment policy development in Central and East European transition economies. It touches legal and institutional framework conditions in Azerbaijan as well as possible investment incentives schemes including investment promotion. Major recommendations refer to trade integration within the region, introduction of tax incentives as well as further improvements in business climate. Furthermore, the importance of complementary policies, such as competition and education policy, is stressed.
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Is There a Way for Old Industrial Districts to Become Attractive for Cultural Industry? The Case of Media Businesses in Halle (Saale), Germany
Martin T. W. Rosenfeld, Christoph Hornych
IWH Discussion Papers,
No. 15,
2008
Abstract
manufacturing have collapsed are trying to stimulate entrepreneurial activities of businesses in the cultural industry. The question is whether this strategy could be successful. This article examines the strategy of supporting the sector of Media Industry (´MI´) by policy makers in the region of Halle in East Germany, where a strong de-industrialization has taken place after the German reunification. Stimulated by the policy makers’ support measures, there actually was a remarkable development of MI. However, the number of MI firms and their employees did not further increase in recent years, after having reached a certain level. This illustrates the limits of political measures for turning a city’s path of industrial development voluntarily.
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Does Qualification Drive Innovation? A Microeconometric Analysis Using Linked-employer-employee Data
Bianca Brandenburg, Jutta Günther, Lutz Schneider
IWH Discussion Papers,
No. 10,
2007
Abstract
Degree-level science and engineering skills as well as management and leadership skills are often referred to as a source of innovative activities within companies. Broken down by sectoral innovation patterns, this article examines the role of formal education and actual occupation for product innovation performance in manufacturing firms within a probit model. It uses unique micro data for Germany (LIAB) that contain detailed information about innovative activities and the qualification of employees. We find significant differences of the human capital endowment between sectors differentiated according to the Pavitt classification. Sectors with a high share of highly skilled employees engage in product innovation above average (specialized suppliers and science based industries). According to our hitherto estimation results, within these sectors the share of highly skilled employees does not, however, substantially increase the probability to be an innovative firm.
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Firm-Specific Determinants of Productivity Gaps between East and West German Industrial Branches
Johannes Stephan
East-West Journal of Economics and Business,
2006
Abstract
This research assesses the firm-specific reasons for lower producitivity levels between West and East German firms. The study is based on a unique data-base generated by field-work in the two particularly important sectors of machinery manufacturers and furniture manufacturers. Our results suggest that the quality of human capital plays an important role in explaining lower productivity levels, as well as particularly networking activities, and the use of modern technologies for communication. Classifying those as management-functions beyond the organisation of the production process itself, we identify management deficits as the main specific determinants of productivity gaps between West and East German firms.
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Can Export Activities of Firms Contribute to the Catching-Up Process of Transitional Economies?
Brigitte Loose, Udo Ludwig
Can the transitional and development economies ever catch up? The Materials from The International Scientific Conference Cracow,
2006
Abstract
In contrast to the majority of the former centrally planned economies, the East German economy has suffered from enormous losses in the transformation process. In the study the question is analyzed whether exports can contribute to the catching-up process in transitional economies. Here it must be explained why the firms emerging out of the privatization process in economies in transition are successful if the export sector consists of small and medium sized enterprises. That is the case with East German manufacturing industry. The study is based on individual company data from the surveys of the East Germany's and North Rhine Westphalia's manufacturing industry between 1995 and 2001 stemming from official statistics.
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