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Begin New Search Topic Industrial Policy Political Geography Europe Content Type Working Paper

1. Industrial policy for electric vehicle supply chains and the US-EU fight over the Inflation Reduction Act

Author:
Chad P. Bown
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
The Inflation Reduction Act (IRA) of 2022 provoked a transatlantic trade spat. After the law was passed, the Biden administration addressed some of the concerns raised by the European Union by writing controversial rules to implement the legislation. These regulations are expected to have complex effects that, in some instances, may offset the intended impact of other provisions in the original legislation. This paper examines how the law, its implementing regulations, policy decisions on leasing, as well as potential critical minerals agreements all have the potential to affect the electric vehicle (EV) supply chain. The EV case study showcases the political-economic complications involved in US and EU attempts to cooperate over clean energy transition policy to address the global externality of carbon dioxide emissions. EVs are but one example of the challenge facing partners with integrated supply chains and similar levels of economic development that share concerns about climate change, rising inequality, workers, other social issues, and democracy itself. The EV conflict laid bare the differing US and EU prioritization of these issues relative to economic efficiency, World Trade Organization rules, the approach to nonmarket economies, and national security vulnerabilities that arise from depending on an authoritarian regime such as China for import sourcing of critical inputs.
Topic:
Industrial Policy, International Trade and Finance, European Union, Supply Chains, and Electric Vehicles
Political Geography:
Europe, North America, and United States of America

2. China’s quest for innovation: progress and bottlenecks

Author:
Alicia Garcia-Herrero and Robin Schindowski
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
As the Chinese economy continues to decelerate, the central government is investing heavily in innovation, doubling down on research and development (R&D) spending and STEM-oriented human capital. In this paper, we assess China’s progress so far, looking at the inputs to innovation (R&D and human capital) as well as intermediate targets, such as scientific research and patents. We then evaluate how China has fared with respect to the ultimate goal of commercialising this progress, by looking at the value-added of Chinese exports and the overall productivity of the economy. We identify three potential bottlenecks that might be hindering the translation of China’s innovation efforts into productivity growth.
Topic:
Industrial Policy, European Union, Economic Growth, Innovation, and COVID-19
Political Geography:
China, Europe, and Asia

3. Rebooting the European Union’s Net Zero Industry Act

Author:
Simone Tagliapietra, Reinhilde Veugelers, and Jeromin Zettelmeyer
Publication Date:
06-2023
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
In March 2023, the European Commission published a legislative proposal for an EU response to the US Inflation Reduction Act: the Net Zero Industry Act (NZIA). It is an unconvincing policy proposal, both for what is in it and for what is not in it. The proposal has five problematic aspects. First, it takes a top-down approach, in which specific technologies are selected for preferential treatment. Preferable would be a technology-neutral approach open to all current and future technologies that help tackle the net-zero challenge. Second, its blanket 40 percent self-sufficiency benchmark for EU domestic cleantech manufacturing by 2030 sends a protectionist signal, is poorly defined and does not reflect the differences in EU capacity in the cleantech sector. Third, it relies on the acceleration of permitting procedures as the main policy instrument, although this is not the main obstacle to cleantech investment in the EU. Fourth, it proposes more strategic use of public procurement. While this is an objective to be supported, the specific proposals are likely to be ineffective because of the way they are designed. Fifth and not least, the NZIA would lack a governance structure that would ensure effective implementation. In addition, the NZIA does not tackle three critical issues. It does not address investment obstacles related to failures of the single market. It does not tackle the coordination problem at the core of developing an EU green industrial policy. Finally, it does not develop an EU-level funding strategy, but rather relies on state aid, with the related risk of fragmentation. The European Parliament and EU countries in the Council of the EU should reboot the proposal and refocus its objectives, sharpening its limited instruments, improving its governance, and adding financial incentives to ensure implementation. In parallel, the EU should develop a broader green industrial policy strategy that leverages the single market in a credible manner, building a solid new governance framework and a new EU-level funding approach.
Topic:
Climate Change, Industrial Policy, Governance, European Union, Trade Policy, and Industry
Political Geography:
Europe

4. Resetting the EU’s business model after the watershed

Author:
Marco Buti and Marcello Messori
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
The EU’s response to the COVID-19 pandemic raised hopes of an acceleration towards deeper economic and political integration. Most optimists saw Next Generation EU as a paradigm shift that would result in the establishment of a permanent central fiscal capacity. Such hopes were reinforced by the Russian aggression against Ukraine; if not now, when? While the EU displayed remarkable unity in sanctioning Russia, the hopes for another leap forward in integration have not yet materialised. This Discussion Paper argues that the current crisis is more existential than the pandemic, as it questions Europe’s business model: an energy-intensive, mercantilist production setup is not sustainable going forward, for domestic and global reasons. It also argues that the EU’s reaction to the US Inflation Reduction Act may be a break: preserving the single market prohibits a go-it-alone policy constituted of exclusively national reactions. Going forward, the authors believe there needs to be an effective centralised strategy based on three overarching considerations: (i) The EU needs a new industrial policy to reinforce value chains, close technology gaps with the US and China, and improve its economic model's competitive advantages; (ii) The implementation of this policy requires the EU's member states to be less risk averse and more open to common solutions; (iii) A necessary, though not sufficient, condition for a cooperative game is an effective implementation of the national Recovery and Resilience Plans that give access to the Recovery and Resilience Facility’s funds. Achieving those goals is key to rebuilding political trust, reviving the ‘Next Generation EU spirit’, and mitigating the impact of the war in Ukraine on the European economy.
Topic:
Industrial Policy, European Union, Business, Regional Integration, and Value Chains
Political Geography:
Europe

5. The Sunshine Problem: Climate Change and Managed Decline in the European Union

Author:
Timur Ergen and Luuk Schmitz
Publication Date:
12-2023
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
Decarbonization requires the winding down of – economically – fully viable, if not highly prosperous, lines of economic activity. Different from past episodes of industrial restructuring revolving around the managed decline of sunset industries, accelerating climate change requires reallocation away from economic activities where the metaphorical sun is still shining. Firms, owners, workers, regions, and polities structurally rely on these sources of prosperity and have interwoven their past and future lives with them. We argue that this problem has created a space for state actors to experiment with vertical industrial policies to manage the reallocation of resources from polluting to non-polluting activities. We illustrate this dynamic by investigating the least-likely case of the European Union, a polity heavily tilted towards market governance. European climate policymakers, we argue, have incrementally moved away from the primacy of regulatory, market-making tools and have introduced a plethora of vertical instruments to shift resources away from climate-harming fields. This experimentation with vertical policies unfolds against the backdrop of a thirtyyear institutional legacy of single market-oriented policy in the energy field.
Topic:
Climate Change, Industrial Policy, European Union, Social Cohesion, and Green Transition
Political Geography:
Europe

6. Risks to job quality from digital technologies: are industrial relations in Europe ready for the challenge?

Author:
Janine Berg, Francis Green, Laura Nurski, and David Spencer
Publication Date:
09-2022
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
We examine the job quality effects of new digital technologies in Europe, using the framework of seven job quality ‘domains’: pay, working time quality, prospects, skills and discretion, work intensity, social environment and physical environment. The theoretical effects from new technology are ambivalent for all domains. Data on robot shocks matched to the European Working Conditions Surveys for 2010 and 2015 is used to generate empirical estimates, which show significant aggregate negative effects in three domains, and a positive effect in one. Some negative effects are enhanced where there is below-median collective bargaining. In light of these analyses, and in order to think through the challenge of regulating the development and implementation of all forms of digital technologies, we review regulations in several European countries. Drawing on the principles of human-centred design, we advance the general hypothesis that worker participation is important for securing good job quality outcomes, at both the innovation and adoption stages. We also consider the application to the regulation of job quality of national and supra-national data protection legislation. In these ways, the paper extends the debate about the future of work beyond employment and pay, to a consideration of job quality more broadly.
Topic:
Industrial Policy, Science and Technology, Employment, and Work
Political Geography:
Europe

7. Automotive Global Value Chains in Europe

Author:
Matteo Gaddi and Nadia Garbellini
Publication Date:
08-2021
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
In this paper we examine the main transformations that are affecting European automotive industry and which challenges, in particular due to the transition to new forms of propulsion, the industry is going to face. The automotive industry is central to the European economy and the nature of the Global Value Chains are rapidly shifting. While individual countries have developed economic plans to address this, a broader EU wide plan is critically important to addressing the employment and environmental effects of these shifts.
Topic:
Economics, Industrial Policy, European Union, Manufacturing, and Global Value Chains
Political Geography:
Europe

8. Understanding the European Union’s regional potential in low-carbon technologies

Author:
Enrico Bergamini and Georg Zachmann
Publication Date:
11-2020
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
This research identifies existing and potential specialisation in green technologies in European Union regions, and proposes an approach to identify policies that can help to realise this potential. Using the Organisation for Economic Cooperation and Development’s REGPAT database for regionalised patent data, we estimate the potential advantage European NUTS2 regions could have in 14 green technologies. We use network proximity between technologies and between regions to understand technological/regional clusters, and build the regressors for estimating potential regional advantage in specific technologies via zero-inflated beta regressions. We construct a dataset of lagged potentials and labour market, economic and demographic variables, and perform an elastic net regularisation to understand the association with current revealed advantages. Our approach indicates an association between technological advantage in green technologies in EU regions and participation rates in labour markets, sectoral employment in science and technology, general higher education, duration of employment, percentage of GDP spent on research and development (public and private), and other expenditure on R&D. If confirmed by causality tests, the established associations could help in designing horizontal economic policies to enable specific regions to realise their specialisation potential in specific green technologies.
Topic:
Climate Change, Energy Policy, Industrial Policy, European Union, Green Technology, and Decarbonization
Political Geography:
Europe

9. The Political Economy of Industrial Policy in the European Union

Author:
Fabio Bulfone
Publication Date:
10-2020
Content Type:
Working Paper
Institution:
Max Planck Sciences Po Center on Coping with Instability in Market Societies (MaxPo)
Abstract:
The Great Recession renewed calls for a return of state activism in support of the European economy. The widespread nationalization of ailing companies and the growing activism of national development banks led many to celebrate the reappearance of industrial policy. By reviewing the evolution of the goals, protagonists, and policy instruments of industrial policy since the postwar period, this paper shows how state intervention never ceased to be a crucial engine of growth across the EU. It argues that the decline of the Fordist wage-led production regime marked a turning point in the political economy of industrial policy with the transition from inward-looking to open-market forms of state intervention. The main features of open-market industrial policy are then discussed referring to the cases of the internationalization of national champions in public service sectors and the proliferation across the EU of industrial clusters. Finally, the paper reviews postcrisis instances of state intervention and highlights how, rather than breaking with past tendencies, the Great Recession further accelerated the shift towards open-market industrial policy.
Topic:
Development, Industrial Policy, European Union, Capitalism, Regional Integration, and Banks
Political Geography:
Europe and Germany

10. Industrial Policy: The Holy Grail of the French Cybersecurity

Author:
Danilo D'Elia
Publication Date:
09-2018
Content Type:
Working Paper
Institution:
Berkeley APEC Study Center
Abstract:
The 2008 ‘White Paper on Defense and National Security’ was the first major document to focus directly on national cyber threats as a key risk to France’s sovereignty. It defined new priorities – such as cyberattack prevention and response – and established, in July 2009, the National Agency for the Security of Information System (ANSSI) as an inter-ministerial agency with national authority for the defense of information systems. In 2013, a new version of the White Paper reiterated that the capacity to detect and protect against cyberattacks was ‘an essential component of [French’s] national sovereignty and economic well-being’. The same year, the French government launched an ambitious program and invested considerable efforts and expenditure on cybersecurity industrial policy. This article captures structural characteristics of public-private partnerships and stylizes the different conflicts behind the industrial movements in the 2009-2015 period: representation of digital sovereignty versus corporate interest in global market, national defense champions versus start-up ecosystem.
Topic:
Industrial Policy, Cybersecurity, Geopolitics, Risk, and Territory
Political Geography:
Europe and France

11. The Future Development of EU Exports in a Global Context

Author:
Robert Stehrer, Roman Stöllinger, and Sandra Leitner
Publication Date:
11-2017
Content Type:
Working Paper
Institution:
Center for Social and Economic Research - CASE
Abstract:
Global trade patterns are changing rapidly. Emerging economies are increasing their share of exports overall and intensifying competition in nearly all sectors. Using a gravity-based approach, this report examines the future profile of European Union (EU) world market shares at the aggregate and sectoral level. It further points towards the changing patterns of trade within the EU. Based on the results, some conclusions on EU industrial policy are drawn.
Topic:
Industrial Policy, International Trade and Finance, Global Markets, Economic Growth, and Trade
Political Geography:
Europe, Global Focus, and European Union

12. On the Road to Paris: How Can the EU Avoid Failure at the UN Climate Change Conference (COP 21)?

Author:
Lisanne Groen
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
Istituto Affari Internazionali
Abstract:
At the 15th UN Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP) meeting in Copenhagen in 2009, the European Union (EU) failed to achieve most of its objectives. In 2011, at the 17th COP meeting in Durban, the EU was crucial in bringing about a deal on a roadmap towards a new global climate change agreement, to be adopted in December 2015 at the 21st COP meeting in Paris. This paper examines the lessons the EU has learned and can learn from its experience in Copenhagen in the run-up to Paris. It considers, first, the EU’s relative bargaining power; second, the relative position of its objectives/interests mapped against those of other negotiating parties; and third, how the EU can leverage its relative power through strategic action in pursuit of its objectives. The paper recommends that the EU focus on building a broad alliance with other progressive negotiating parties on mitigation in order to avoid a lowest common denominator outcome.
Topic:
Climate Change, Diplomacy, Industrial Policy, Treaties and Agreements, and European Union
Political Geography:
Europe
Publication Identifier:
978-88-98650-57-6
Publication Identifier Type:
ISBN

13. Estimating Illicit Flows of Capital via Trade Mispricing: A Forensic Analysis of Data on Switzerland

Author:
Alex Cobham, Petr Janský, and Alex Prats
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
This paper assesses the role of Switzerland as the leading hub for global commodities trading, in terms of the patterns of prices received by original exporting countries and subsequently by Switzerland and other jurisdictions. We find support for the hypotheses that (i) the average prices for commodity exports from developing countries to Switzerland are lower than those to other jurisdictions; and that (ii) Switzerland declares higher (re-)export prices for those commodities than do other jurisdictions. This pattern implies a potential capital loss for commodity exporting developing countries and we provide a range of estimates of that loss - each of which suggests the scale is substantial (the most conservative is around $8 billion a year) and that the issue merits greater research and policy attention. An important first step would be a Swiss commitment to meet international norms of trade transparency.
Topic:
Economics, Industrial Policy, International Trade and Finance, Markets, and Developing World
Political Geography:
Europe and Switzerland

14. Industrial policy in the EU: A guide to an elusive concept

Author:
Xavier Vanden Bosch
Publication Date:
09-2014
Content Type:
Working Paper
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Despite renewed interest in an EU industrial policy, the concept remains particularly elusive because it has no universal definition. This paper relies on a broad and inclusive definition of industrial policy proposed by Warwick (in an OECD working paper) to provide a clearer picture of what the concept encompasses when applied to the EU. It therefore includes an original visual taxonomy of the EU policies that constitute industrial policy. It can serve as a guiding framework for reflecting on industrial policy in the EU.
Topic:
Economics, Industrial Policy, Political Economy, and Governance
Political Geography:
Europe

15. Versailles Redux? Eurozone Competitiveness in a Dynamic Balassa-Samuelson-Penn Framework

Author:
Arvind Subramanian and Kevin Stahler
Publication Date:
11-2014
Content Type:
Working Paper
Institution:
Peterson Institute for International Economics
Abstract:
Prima facie, competitiveness adjustments in the eurozone, based on unit labor cost developments, appear sensible and in line with what the economic analyst might have predicted and the economic doctor might have ordered. But a broader and arguably better—Balassa-Samuelson-Penn (BSP)—framework for analyzing these adjustments paints a very different picture. Taking advantage of the newly released PPP-based estimates of the International Comparison Program (2011), we identify a causal BSP relationship. We apply this framework to computing more appropriate measures of real competitiveness changes in Europe and other advanced economies in the aftermath of the recent global crises. There has been a deterioration, not improvement, in competitiveness in the periphery countries between 2007 and 2013. Second, the pattern of adjustment within the eurozone has been dramatically perverse, with Germany having improved competitiveness by 9 percent and with Greece's having deteriorated by 9 percent. Third, real competitiveness changes are strongly correlated with nominal exchange rate changes, which suggests the importance of having a flexible (and preferably independent) currency for effecting external adjustments. Fourth, internal devaluation—defined as real competitiveness improvements in excess of nominal exchange rate changes—is possible but seems limited in scope and magnitude. Our results are robust to adjusting the BSP framework to take account of the special circumstances of countries experiencing unemployment. Even if we ignore the BSP effect, the broad pattern of limited and lopsided adjustment in the eurozone remains.
Topic:
Economics, Industrial Policy, International Trade and Finance, Monetary Policy, and Financial Crisis
Political Geography:
Europe

16. Can Negotiating a Uniform Carbon Price Help to Internalize the Global Warming Externality?

Author:
Martin L. Weitzman
Publication Date:
01-2014
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
It is difficult to resolve the global warming free-rider externality problem by negotiating quantity targets. By contrast, negotiating a single binding minimum carbon price (the proceeds from which are domestically retained) counters self interest by incentivizing agents to internalize the externality. The model of this paper indicates an exact sense in which each agent's extra cost from a higher emissions price is counterbalanced by that agent's extra benefit from inducing all other agents to simultaneously lower their emissions. Some implications are discussed.
Topic:
Climate Change, Economics, Energy Policy, Industrial Policy, and International Cooperation
Political Geography:
Europe

17. The EU's and China's institutional diplomacy in the field of climate change

Author:
Pietro De Matteis
Publication Date:
06-2012
Content Type:
Working Paper
Institution:
European Union Institute for Security Studies
Abstract:
This Occasional Paper aims at providing a new perspective on the relevance of climate change for the EU's external action. Considering its linkages with various areas such as energy security, economic growth and diplomacy, and indeed its importance in terms of future political stability, climate change is a major 'game-changer' in international relations. The issue of climate change, and how to deal with it, therefore presents governments with a significant opportunity to reshape the international order in the light of the major global transformations currently underway. The development of the climate change regime presents the EU with both an opportunity and a threat, in as much as it may either accelerate Europe's decline as a foreign policy actor or, on the contrary, reinvigorate its diplomatic ambitions.
Topic:
Climate Change, Development, Diplomacy, Environment, and Industrial Policy
Political Geography:
China, Europe, and Asia

18. The political economy of the fisheries sector in Uganda: ruling elites, implementation costs and industry interests

Author:
Fred Muhumuza, Anne Mette Kjær, Mesharch Katusiimeh, and Tom Mwebaze
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
This paper sets out to explain policies, implementation arrangements and results (PIRs) in Uganda's fisheries sector. Industry actors wanted to be able to keep up with European standards in order to survive in the chilled and frozen fillet export industry. They put pressure on ruling elites to support the establishment of effective hygiene and testing procedures. This helped the fishing industry succeed to an extent that helped create interests in the status quo. Fishermen, their dependents, and the fish processors all wanted to maintain a high level of fish catches. It was politically costly for ruling elites to enforce fisheries management because strict enforcement was unpopular with fishermen, as well as with many fishermen and security agents who benefitted from illegal fishing. Therefore, the success was not maintained: a pocket of efficiency was established with regard to hygiene and testing, but not with regard to enforcing fisheries management. Overfishing and the near collapse of the fishing sector were the results.
Topic:
Development, Economics, Government, Industrial Policy, International Trade and Finance, Poverty, and Social Stratification
Political Geography:
Uganda, Africa, and Europe

19. America's Voluntary Standards System--A "Best Practice" Model for Innovation Policy?

Author:
Dieter Ernst
Publication Date:
02-2012
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
For its proponents, America's voluntary standards system is a "best practice" model for innovation policy. Foreign observers however are concerned about possible drawbacks of a standards system that is largely driven by the private sector. There are doubts, especially in Europe and China, whether the American system can balance public and private interests in times of extraordinary national and global challenges to innovation.
Topic:
Development, Globalization, Industrial Policy, International Trade and Finance, Science and Technology, Intellectual Property/Copyright, and Governance
Political Geography:
China, America, and Europe

20. Industries in 2012: A report from the Economist Intelligence Unit

Author:
Steven Leslie
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Economist Intelligence Unit
Abstract:
Business executives are sour about 2012. However, they are much more negative about the prospects for the global economy than for their own industries, and especially for their own companies. These are the headline findings from a global survey of more than 900 corporate decisionmakers about their expectations for 2012.
Topic:
Economics, Emerging Markets, Industrial Policy, International Trade and Finance, Global Recession, and Financial Crisis
Political Geography:
Europe

21. Inward FDI in Finland and its policy context

Author:
Dan Steinbock
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Columbia Center on Sustainable Investment
Abstract:
From independence to the collapse of the Soviet Union, inward foreign direct investment (IFDI) in Finland was either marginal (1917-1939) or insignificant (1945-early 1990s). Throughout this period, the success of Finland's core production clusters in forestry, metal engineering, chemicals, and plastics was based on exports, not IFDI (or outward FDI). However, with the end of the Cold War and the globalization of Finnish industries (especially the mobile communications cluster) in a period of strong export-led economic growth, IFDI in Finland took off rapidly from the mid-1990s. This period of growth came to an end with the global crisis of 2008-2009. In 2009, the Finnish economy shrank roughly by 8%, the sharpest plunge since the country's civil war in 1918. The recovery since 2010 has been relatively strong in comparison to that in most European Union (EU) economies, but Finland remains vulnerable to the Eurozone crisis. Today, IFDI is seen as an untapped resource, and the Finnish Government hopes to develop an IFDI promotion strategy in cooperation with the private sector and integrated with the national innovation system.
Topic:
Industrial Policy, Foreign Direct Investment, and Financial Crisis
Political Geography:
Europe and Finland

22. Who Captures Value in Global Supply Chains?

Author:
Jyrki Ali-Yrkkö, Petri Rouvinen, Timo Seppälä, and Pekka Ylä-Anttila
Publication Date:
02-2011
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Available statistics tell us little about the economic consequences of increasing global dispersion of production processes. In order to shed light on the issue, we perform grass roots detective work to uncover the geography of value added in the case of a Nokia N95 smartphone circa 2007. The phone was assembled in Finland and China. In the case when the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even in the case when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it had rather little role in supplying the physical components. Our analysis illustrates that international trade statistics can be misleading; the capture of value added is largely detached from the physical goods flows. It is rather services and other intangible aspects of the supply chain that dominate. While final assembly – commanding 2% of the value added in our case – has increasingly moved offshore, the developed countries continue to capture most of the value added generated by global supply chains.
Topic:
Economics, Globalization, Industrial Policy, International Trade and Finance, and Markets
Political Geography:
China, Europe, and Finland

23. Future Impacts of Climate Change across Europe

Author:
Arno Behrens, Anton Georgiev, and Maelis Carraro
Publication Date:
02-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This CEPS Working Document reviews the potential impacts of climate change on 11 key indicator categories and 3 large regions covering the entire European Union. Although there remains a considerable degree of uncertainty about local and regional effects, the paper highlights strong distributional patterns. Northern Europe might even experience some positive effects, while the Mediterranean will mostly be negatively affected. Still, the cumulative impacts of climate change on poorer countries will also affect northern European countries, as growing water scarcity and other repercussions in Mediterranean countries could pose social and security challenges through increasing risks of conflicts and migration pressures.
Topic:
Climate Change, Energy Policy, and Industrial Policy
Political Geography:
Europe

24. CO2 Highways for Europe: Modelling a Carbon Capture, Transport and Storage Infrastructure for Europe

Author:
Johannes Herold, Roman Mendelevitch, Pao-Yu Oei, and Andreas Tissen
Publication Date:
11-2010
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
We present a mixed integer, multi-period, cost-minimising model for a carbon capture, transport and storage (CCTS) network in Europe. The model incorpor ates endogenous decisions about carbon capture, pipeline and storage investments. The capture, flow and injection quantities are based on given costs, certificate prices, storage capacities and point source emissions. The results indicate that CCTS can theoretically contribute to the decarbonisation of Europe's energy and industrial sectors. This requires a CO2 certificate price rising to €55 per tCO2 in 2050, and sufficient CO2 storage capacity available for both on- and offshore sites. Yet CCTS deployment is highest in CO2-intensive industries where emissions cannot be avoided by fuel switching or alternative production processes. In all scenarios, the importance of the industrial sector as a first-mover to induce the deployment of CCTS is highlighted. By contrast, a decrease in available storage capacity or a more moderate increase in CO2 prices will significantly reduce the role of CCTS as a CO2 mitigation technology, especially in the energy sector. Furthermore, continued public resistance to onshore CO2 storage can only be overcome by constructing expensive offshore storage. Under this restriction, reaching the same levels of CCTS penetration would require a doubling of CO2 certificate prices.
Topic:
Climate Change, Energy Policy, Industrial Policy, and Science and Technology
Political Geography:
Europe

25. Labor Regulations and European Industrial Specialization: Evidence from Private Equity Investments

Author:
Ant Bozkaya and William R. Kerr
Publication Date:
05-2008
Content Type:
Working Paper
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
European nations empirically substitute between employment protection regulations and labor market expenditures like unemployment insurance benefits in the provision of labor market insurance to workers. While perhaps substitutes from a worker's perspective, employment regulations more directly tax .firms making frequent labor force adjustments. These labor adjustments are especially important for the portfolio companies of both venture capital and buy-out investors. European nations providing worker insurance through labor market expenditures developed stronger domestic private equity markets over the 1990-2004 period than those nations favoring employment protection. These patterns are further evident in US-sourced private equity investments into Europe. Moreover, tests for industry specialization suggest that countries with more flexible labor markets tend to specialize in sectors characterized by high labor volatility. These results are relevant to the literatures examining the impact of labor market regulations on entrepreneurship and productivity growth due to reallocations across .firms and sectors.
Topic:
Economics, Industrial Policy, and Markets
Political Geography:
United States and Europe

26. How Do the BRICs Stack Up? Adding Brazil, Russia, India, and China to the Environment Component of the Commitment to Development Index

Author:
David Roodman
Publication Date:
10-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
The Commitment to Development Index (CDI) ranks 21 of the world's richest countries on their dedication to policies that benefit the five billion people living in poorer nations. Moving beyond simple comparisons of foreign aid, the CDI ranks countries on seven themes: quantity and quality of foreign aid, openness to developing-country exports, policies that influence investment, migration policies, stewardship of the global environment, security policies and support for creation and dissemination of new technologies.
Topic:
Environment and Industrial Policy
Political Geography:
Russia, China, Europe, India, Asia, and Brazil

27. Moving Toward A Consensus on Climate Policy: The Essential Role of Global Public Disclosure

Author:
David Wheeler
Publication Date:
11-2007
Content Type:
Working Paper
Institution:
Center for Global Development
Abstract:
Among climate scientists, there is no longer any serious debate about whether greenhouse gas emissions from human activity are altering the earth' s climate. There is also a broad consensus on two issues related to reducing emissions. First, developing countries must be full participants in global emissions control, because they will be most heavily impacted by global warming, and because they are rapidly approaching parity with developed countries in the scale of their emissions. Second, efficient emissions control will require carbon pricing via market-based instruments (charges or cap-and-trade). These points of consensus are sufficient to establish a clear way forward, despite continued disagreements over the choice of specific instrument and the appropriate carbon charge level. Since all market-based systems that regulate emissions sources require the same emissions information, the international community should immediately establish an institution mandated to collect, verify and publicly disclose information about emissions from all significant global carbon sources. Its mandate should extend to best-practice estimation and disclosure of emissions sources in countries that initially refuse to participate. This institution will serve four purposes. First, it will lay the necessary foundation for implementing any market-based system of emissions source regulation. Second, it will provide an excellent credibility test, since a country's acceptance of full disclosure will signal its true willingness to participate in globally-efficient emissions reduction. Third, global public disclosure will itself reduce carbon emissions, by focusing stakeholder pressure on major emitters and providing reputational reward s for clean producers. Fourth, disclosure will make it very hard to cheat once market-based instruments are implemented. This will be essential for preserving the credibility of an international agreement to reduce emissions.
Topic:
Environment, Industrial Policy, International Cooperation, and Markets
Political Geography:
Europe

28. European Chemical Policy and the United States: The Impacts of REACH

Author:
Rachel Massey, Frank Ackerman, and Liz Stanton
Publication Date:
09-2006
Content Type:
Working Paper
Institution:
Global Development and Environment Institute at Tufts University
Abstract:
The European Union is moving toward adoption of its new Registration, Evaluation and Authorization of Chemicals (REACH) policy, an innovative system of chemicals regulation that will provide crucial information on the safety profile of chemicals used in industry. Chemicals produced elsewhere, such as in the United States, and exported to Europe will have to meet the same standards as chemicals produced within the European Union. What is at stake for the U.S. is substantial: we estimate that chemical exports to Europe that are subject to REACH amount to about $14 billion per year, and are directly and indirectly responsible for 54,000 jobs. Revenues and employment of this magnitude dwarf the costs of compliance with REACH, which will amount to no more than $14 million per year. Even if, as the U.S. chemicals industry has argued, REACH is a needless mistake, it will be far more profitable to pay the modest compliance costs than to lose access to the enormous European market.
Topic:
Government, Industrial Policy, and International Trade and Finance
Political Geography:
United States and Europe

29. The German ICT industry: Spatial Employment and Innovation Patterns

Author:
Björn Frank and Per Botolf Maurseth
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
This paper documents recent developments in German ICT industries. In particular we report results on spatial patterns in innovation and employment in these industries. The paper is motivated by previous studies that have found that ICT industries seem to cluster geographically and having spatially clustered growth rates. In this study, we discriminate between production of ICT devices and production of ICT services. In Germany, production of ICT devices is concentrated in clusters of innovating regions (in terms of patents). ICT service production, on the other hand, is concentrated in larger urban areas. Growth rates in ICT-related employment show different spatial patterns. The data show that negative spatial effects are present for several sectors, which might give support for the so-called backwash effect described by Gunnar Myrdal (1957). For other sectors, positive spatial spillover effects may be present. For overall economic development (in terms of gross regional product per habitant) we find weak positive growth effects ICT, but these growth effects stem more from innovation than from production or use of ICT.
Topic:
Economics, Human Welfare, and Industrial Policy
Political Geography:
Europe and Germany

30. Vladimir Putin and Russia's Oil Policy

Author:
Martha Brill Olcott
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Carnegie Endowment for International Peace
Abstract:
The honeymoon between the Western oil industry and Russian President Vladimir Putin ended in mid-2003 when the Russian procurator's office began arresting Yukos executives. The Kremlin's seemingly sudden attack on private industry surprised the international business community that was expecting investment-friendly behavior from the Russian leadership. After assuming power in late 1999, Putin quickly signaled interest in developing a strong energy partnership with the United States, including increased opportunities for Western firms to invest in Russia's oil and gas industry.
Topic:
Development, Energy Policy, and Industrial Policy
Political Geography:
Russia, United States, Europe, and Asia

31. Strategic Unionism in Eastern Europe: The Case of Romania

Author:
Aurora Trif and Karl Koch
Publication Date:
07-2005
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The shift from centrally planned economies to market-oriented economic models presented trade unions in Eastern European countries with crucial choices in relation to their roles as industrial relations actors. This paper investigates whether (and why) unions have chosen adversarial and/or co-operative relationships with the employers, based on a strategic choice conceptual framework. It focuses on trade union relations with employers at national, sectoral and company levels in Romania. It is argued that adversarial and co-operative relations between unions and employers developed simultaneously after 1989, but co-operation was the prevalent approach. Evidence suggests that ideological legacies, former institutions and the initial decision to participate in the macroeconomic transformation played a key role in shaping unions' choices towards co-operation with employers. Although this paper confirms the widespread view that labour is rather weak in Eastern Europe, it indicates that unions can be proactive and shape their own future if they have the capacity to mobilise their members and union leaders have the skills and willingness to use both conflict and co-operation in their relationships with employers. The comparison of evidence from Romania with other Eastern European countries reflects on the stage of Romanian transformation and also illustrates a wider possible applicability of the theoretical framework employed for the study.
Topic:
Economics, Industrial Policy, and Political Economy
Political Geography:
Europe, Eastern Europe, and Romania

32. Economic Reform and the Political Economy of the German Welfare State

Author:
Wolfgang Streeck and Christine Trampusch
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Max Planck Institute for the Study of Societies
Abstract:
The key to economic reform in Germany is a significant reduction in the high costs of labour.The main factor driving up German labour costs is the funding of the extensive German welfare state through social insurance contributions that in effect operate like payroll taxes on employment. The paper discusses the political causes of the rise in non-wage labour costs since the 1970s. It then proceeds to show how a variety of opportunities for political blockade in the German political economy dim the prospect for effective reform in the foreseeable future.
Topic:
Economics, Industrial Policy, and Political Economy
Political Geography:
Europe and Germany

33. Impact of Public R Financing on Private R Does Financial Constraint Matter?

Author:
Jyrki Ali-Yrkkö
Publication Date:
02-2005
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
This study analyses how public R financing impacts companies. Our main goal is to study whether public and private R financing are substitutes or complements, and whether this impact differs between financially constrained and unconstrained companies. Our company-level panel data cover the period from 1996 to 2002. The statistical method employed in the research takes into account the possibility that receiving public support may be an endogenous factor. Our results suggest that public R financing does not crowd out privately financed R Instead, receiving a positive decision to obtain public R funds increases privately financed R Furthermore, our results suggest that this additionality effect is bigger in large firms than in small firms.
Topic:
Emerging Markets and Industrial Policy
Political Geography:
Europe

34. Industrialization and Urbanization: Did the Steam Engine Contribute to the Growth of Cities in the United States?

Author:
Sukkoo Kim
Publication Date:
09-2004
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Industrialization and urbanization are seen as twin processes of economic development. However, the exact nature of their causal relationship is still open to considerable debate. This paper uses firm-level data from the manuscripts of the decennial censuses between 1850 and 1880 to examine whether the adoption of the steam engine as the primary power source by manufacturers during industrialization contributed to urbanization. While the data indicate that steam-powered firms were more likely to locate in urban areas than water-powered firms, the adoption of the steam engine did not contribute substantially to urbanization.
Topic:
Development, Economics, and Industrial Policy
Political Geography:
United States and Europe

35. Spoken-About Knowledge: Why It Takes Much More than 'Knowledge management' to Manage Knowledge

Author:
Niels Christian Nielsen and Maj Cecilie Nielsen
Publication Date:
06-2004
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Unimerco a/s is a company depending on knowledge for its success. For CEO Kenneth Iversen - and for all of his colleagues in Unimerco - leading, managing, and developing knowledge processes internally and with suppliers and customers is a dominant aspect of every single workday.
Topic:
Industrial Policy, International Trade and Finance, and Science and Technology
Political Geography:
Europe

36. Learning and Change in Twentieth-Century British Economic Policy

Author:
Michael J. Oliver and Hugh Pemberton
Publication Date:
05-2004
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Despite considerable interest in the means by which policy learning occurs, and in how it is that the framework of policy may be subject to radical change, the “black box” of economic policymaking remains surprisingly murky. This article utilizes Peter Hall's concept of “social learning” to develop a more sophisticated model of policy learning; one in which paradigm failure does not necessarily lead to wholesale paradigm replacement, and in which an administrative battle of ideas may be just as important a determinant of paradigm change as a political struggle. It then applies this model in a survey of UK economic policymaking since the 1930s: examining the shift to “Keynesianism” during the 1930s and 1940s; the substantial revision of this framework in the 1960s; the collapse of the “Keynesian-plus” framework in the 1970s; and the major revisions to the new “neo-liberal” policy framework in the 1980s and 1990s.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
United Kingdom and Europe

37. Study of selected Fredskorpset exchange projects

Author:
Axel Borchgrevink
Publication Date:
06-2003
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
The present study examines nine Fredskorpset exchange projects, in order to assess the degree to which the goals specified have been reached. The basis for the exchanges is the partnerships established between institutions in Norway and counterpart entities in the South. The projects studied encompass a wide variety of such partnerships, illustrating the flexible and innovative attitude that Fredskorpset has shown during its first two years of operation. By basing its work on such partnerships, Fredskorpset has avoided some of the weaknesses of traditional volunteer programs. In terms of achievements, there are variations among the projects. While individual learning of participants was strong in all cases, the degree to which institutional benefits were achieved varied. Well-matched partners with sufficiently strong institutional structures; thorough planning of exchanges; and participants selected in accordance with well-defined needs for professional skills were seen to be important factors for successful projects.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Europe and Norway

38. Security of European Natural Gas Supplies

Author:
Jonathan Stern
Publication Date:
07-2002
Content Type:
Working Paper
Institution:
Chatham House
Abstract:
Security of natural gas supplies has resurfaced on the European energy agenda because of concerns about an anticipated rapid increase in dependence on imports from non-European suppliers – from one-third to two-thirds of demand – over the next 20 years. On a national basis, European import dependence is already an established fact: nine out of 33 European countries are more than 95% dependent on imports; only five are self-sufficient or net exporters.
Topic:
Energy Policy, Industrial Policy, and Markets
Political Geography:
Europe

39. Substitutability Cross-Stream Between Oriented Markets: Conventions in the Wine Sector of France

Author:
Harrison C. White
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
I explicitly model the social mechanism that constructs markets. Producers array along a market profile along which buyers trade off quality for volume. Outcome features can be predicted from two ratios of parameters, yielding a MAP. Five distinct families of market cultures correspond to its regions. As previous work showed, Supply equaling Demand is transmuted into matchings across local variabilities of valuation with volume and with quality. Such matching is vulnerable to unraveling, but it can be achieved with market oriented either upstream or downstream.
Topic:
Economics and Industrial Policy
Political Geography:
Europe and France

40. Precocious British Industrialization: A General Equilibrium Perspective

Author:
N.F.R. Crafts and C. Knick Harley
Publication Date:
01-2002
Content Type:
Working Paper
Abstract:
The British industrial revolution created an industrial economy. While casual discourse conflates industrialization and economic growth, Britain was remarkable primarily for the pronounced structural change that occurred rather than for rapid economic growth. Uniquely the British labour force became highly industrialized even prior to the move to free trade in the 1840s. On the eve of the abolition of the Corn Laws the share of agriculture in employment had already declined to levels that were not reached in France and Germany until the 1950s.
Topic:
Economics and Industrial Policy
Political Geography:
Britain, Europe, France, and Germany

41. Restructuring "Germany Inc." The Politics of Company and Takeover Law Reform in Germany and the European Union

Author:
John W. Cioffi
Publication Date:
04-2002
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
The reform of German company law by the Control and Transparency Law ("KonTraG") of 1998 reveals politics of corporate governance liberalization. The reforms strengthened the supervisory board, shareholder rights, and shareholder equality, but left intra-corporate power relations largely intact. Major German financial institutions supported the reform's contribution to the modernization of German finance, but blocked mandatory divestment of equity stakes and cross-shareholding. Conversely, organized labor prevented any erosion of supervisory board codetermination. Paradoxically, by eliminating traditional takeover defenses, the KonTraG's liberalization of company law mobilized German political opposition to the EU's draft Takeover Directive and limited further legal liberalization.
Topic:
Government and Industrial Policy
Political Geography:
Europe and Germany

42. Kyoto Flexible Mechanisms: Opportunities and Barriers for Industry and Financial Institutions

Author:
Josef Janssen
Publication Date:
03-2002
Content Type:
Working Paper
Institution:
Centre for European Policy Studies (CEPS)
Abstract:
The Kyoto Protocol established global markets for greenhouse gas emissions reductions and permits. Such emerging markets will offer challenging opportunities to a wide variety of different players in industry and commerce. By means of the market-based Flexible Mechanisms Joint Implementation, Clean Development Mechanism and International Emissions Trading it will be possible to trade emissions permits globally. This chapter explores opportunities of the Flexible Mechanisms for industry, including the financial sector. Moreover, it identifies possible barriers to their realisation. This analysis is preceded by a discussion of the possible seize of global markets for emissions permits. In addition, this chapter examines key features of the Flexible Mechanisms that are relevant from an industry perspective.
Topic:
Environment and Industrial Policy
Political Geography:
Europe

43. Three Worlds of Working Time: Policy and Politics in Work-time Patterns of Industrialized Countries

Author:
Brian Burgoon and Phineas Baxandall
Publication Date:
09-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Given the underdeveloped attention to political and policy origins of aggregate work time patterns in the work-time literature, and the lack of any significant attention to work-time in the broader comparative political economy literature, this paper has pursues a broad mandate: to bring more politics into the study of work-time, and work-time into the study of politics. Using data allowing better comparison among OECD countries, we argue that study of working time needs to consider annual hours per employee and per working-age person, shaped by a range of social as well as direct work-time policies. We also argue that union interest in work-time reduction is more ambiguous than customarily supposed, with union interests likely mediated by a range of other conditions, especially female labor market participation and female union membership. Finally, we argue that attention to party systems and policy clusters should begin with consideration of Social Democratic, Liberal and Christian Democratic worlds of work time. We support these arguments with cross-section time-series study of 18 OECD countries, and brief qualitative studies of work-time in Finland, the United States, and the Netherlands.
Topic:
Economics and Industrial Policy
Political Geography:
United States, Europe, and Netherlands

44. The Spanish Experiment: A Social Democratic Party-Union Relationship in a Competitive Union Context

Author:
Javier Astudillo Ruiz
Publication Date:
05-2002
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
A close relationship with a Social Democratic party has traditionally been regarded as one of the best strategies unions have to defend workers' interests. This conclusion still seems valid today, since the changes in the economic and social structure in the advanced capitalist societies alter the traditional content of their relationship, not the reason for cooperation. However, this belief assumes among a unitary labor movement. The experience of Southern Europe shows, on the contrary, that, when the union movement is divided according to different partisan preferences, union leaders are forced to choose between their relationship with their parties, or cooperating among themselves and being effective in the labor market. In addition, the divorce between the Spanish Socialist party and the Socialist Union reveals that, no matter how strong these organizations are, and despite their history of close ties, inter-union competition and a growing economy make their relationship even more damaging for the union's interests.
Topic:
Government, Human Welfare, and Industrial Policy
Political Geography:
Europe

45. Constitutional Causes for Technological Leadership: Why Europe?

Author:
Jurgen G. Backhaus
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Independent Institute
Abstract:
In a paper circulated towards the end of 1997 under the title Why Europe?, Gordon Tullock poses a simple question and provides a tentative, yet provocative answer. The question is why the technological take off took place in Europe and in the 19th century when well into the 18th century other areas of the world, and notably China, looked much better poised for technological and scholarly leadership than Europe. His tentative answer turns on the constitutional composition of the landscape of political entities in Europe. This essay tries to provide some further underpinnings to aspects of Gordon Tullock's preliminary answer.
Topic:
Industrial Policy and Science and Technology
Political Geography:
China and Europe

46. Alternative Models of Dynamics in Binary Time-Series-Cross-Section Models: The Example of State Failure

Author:
Nathaniel Beck, David Epstein, Simon Jackman, and Sharyn O'Halloran
Publication Date:
08-2001
Content Type:
Working Paper
Institution:
Institute for Social and Economic Research and Policy at Columbia University
Abstract:
This paper investigates a variety of dynamic probit models for time-series–cross-section data in the context of explaining state failure. It shows that ordinary probit, which ignores dynamics, is misleading. Alternatives that seem to produce sensible results are the transition model and a model which includes a lagged latent dependent variable. It is argued that the use of a lagged latent variable is often superior to the use of a lagged realized dependent variable. It is also shown that the latter is a special case of the transition model. The relationship between the transition model and event history methods is also considered: the transition model estimates an event history model for both values of the dependent variable, yielding estimates that are identical to those produced by the two event history models. Furthermore, one can incorporate the insights gleaned from the event history models into the transition analysis, so that researchers do not have to assume duration independence. The conclusion notes that investigations of the various models have been limited to data sets which contain long sequences of zeros; models may perform differently in data sets with shorter bursts of zeros and ones.
Topic:
Economics and Industrial Policy
Political Geography:
Europe and France

47. Meet Me Halfway but don't Rush—Absorptive capacity and strategic R investment revisited

Author:
Leo A. Grünfeld
Publication Date:
12-2001
Content Type:
Working Paper
Institution:
Norwegian Institute of International Affairs
Abstract:
In this paper, we analyse how R investment decisions are affected by R spillovers between firms, taking into consideration that more R investment improves the ability to learn from competing firms - the so-called absorptive capacity effect of R The model in this paper is an extension of d'Aspremont and Jacquemin (1988), where they show that exogenous R spillovers reduce the incentive to invest in R when firms compete in a Cournot duopoly. Our model treats R spillovers as endogenous, being a function of absorptive capacity effects. Contrary to earlier studies, we show that absorptive capacity effects do not necessarily drive up the incentive to invest in R This only happens when the market size is small or the absorptive capacity effect is weak. Otherwise firms will actually chose to cut down on R Furthermore, absorptive capacity effects also increase the critical rate of spillovers that determines whether participating in research joint ventures leads to lower or higher R investment. Finally, we show that strong learning effects of own R are not necessarily goodfor welfare. Moreover, if the market size is large, welfare will be at its highest when the learning effect is small.
Topic:
Economics, Industrial Policy, and International Trade and Finance
Political Geography:
Europe

48. Sustaining Media Pluralism in Democratizing Societies

Author:
Craig L. LaMay
Publication Date:
03-2001
Content Type:
Working Paper
Institution:
Aspen Institute
Abstract:
In 1974 a global "third wave" of democratization began when a military coup in Portugal ended the dictatorship of Antonio Salazar, who himself had come to power in a military coup in 1926. Over the course of the succeeding 15 years, about 30 countries changed from various forms of nondemocratic regimes to nominally democratic ones, most dramatically in South America and Central and Eastern Europe. During this period, notable transitions from nondemocratic rule also occurred in Africa and Asia.
Topic:
Industrial Policy and Science and Technology
Political Geography:
Africa, United States, Europe, Eastern Europe, Asia, South America, and Portugal

49. Decentralized Cooperation and the Future of Regulatory Reform

Author:
Pepper D. Culpepper
Publication Date:
01-2001
Content Type:
Working Paper
Institution:
Minda de Gunzburg Center for European Studies, Harvard University
Abstract:
Faced with the fact of sweeping regulatory reform, how do companies decide how to respond to a new set of policies? This paper argues that this problem requires a new conception of policymaking: a conception that recognizes the analytical primacy of achieving coordination under uncertainty. I call this challenge the problem of securing decentralized cooperation. Negotiated reforms are a common leitmotif of the current wave of reforms taking place in various European countries, whereas American attempts to reinvent government opt to replace the state with the market. There are general lessons in this approach for both strategies. Unlike the earlier attempts to establish neo-corporatist bargains at the national level in European countries, the success of bargained pacts in Europe will depend increasingly on allowing private actors to design the best solutions to centrally identified problems. The challenges of bringing private information to bear on public policy will increase in the future, and not only in supply-side economic policy reforms. One such area is environmental regulation, which is typically viewed as an area of pure state regulation. This is also an area where market-based solutions are frequently proposed as the most efficient solution to problems of pollution. As I demonstrate through the initiative of the Chesapeake Bay Program in the United States, the challenges identified above for areas of economic policymaking are now relevant to environmental initiatives, even in liberal market economies such as the US and the UK. The extent of government success in such initiatives will be determined by the ability of governments to understand the importance of private information and their capacity to develop private sector institutions that can help procure it. Attempts to replace a malfunctioning state with a market solution, currently very much in vogue in certain quarters in the United States, will fail, as long as they do not recognize the distinctive problems inherent in securing decentralized cooperation.
Topic:
Economics and Industrial Policy
Political Geography:
United States, United Kingdom, and Europe

50. Behind the Myth of the Mittelstand Economy. The Institutional Environment Supporting Small and Medium-Sized Enterprises in Germany

Author:
Jorg Meyer-Stamer and Frank Waltring
Publication Date:
08-2000
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
The existence of highly dynamic and successful small and medium-sized enterprises (SME) is one of the characteristic features of the German economy. They have been, and continue to be, a growth and a job machine. Their strong performance has raised interest in other countries, with less dynamic SME, which are keen to strengthen their SME sector. Learning from the German experience appears as a promising exercise.
Topic:
Economics and Industrial Policy
Political Geography:
Europe and Germany

51. Key Factors of Structural Change in North Rhine-Westphalia

Author:
Claudio Maggi
Publication Date:
06-2000
Content Type:
Working Paper
Institution:
Institute for Development and Peace
Abstract:
Recent years have seen the re-emergence of industrial policies and policies for the promotion of economic activity in both industrialised and developing countries, flanked by regional and national strategies for enhanced integration into increasingly globalised international markets, improved competitiveness and sustainably dynamic economic growth. The growing popularity of these policies is also a reflection of recent currents in international economic debate, notably the argument that the recipes for stability staunchly championed by neo-liberals, which gave rise to the Washington Consensus in the early eighties, need to be complemented by more committed policies designed to strengthen international competitiveness.
Topic:
Development, Economics, Globalization, Government, and Industrial Policy
Political Geography:
Europe, Washington, and Westphalia

52. International Cooperation and the Logic of Networks: Europe and the Global System for Mobile Communications (GSM)

Author:
David Bach
Publication Date:
06-2000
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Contrary to the United States, the European Union (EU) has established a single technical standard for second generation wireless telecommunications. The successful creation of the pan-European digital standard GSM is of utmost industrial significance. It has provided Europe's equipment manufacturing industry with a market large enough to exploit economies of scale and has thus enabled European manufacturers to become world leaders in the mobile communications industry. Given the centrality and crucial importance of wireless technology for the emerging information society and digital economy, the story of the establishment of GSM is of interest to anybody studying the growth and trajectory of digital technology and its commercial applications. After all, the nature of digital economies implies that control over network evolution translates into control over the architecture of the digital marketplace, as François Bar has argued. Hence, control of and influence over network evolution has global economic ramifications. In addition, however, the political process that enabled GSM featured pivotal supranational leadership in the form of European Commission initiatives in a domain that has traditionally been dominated by national players. Grasping standard setting in the case of GSM thus also contributes to an understanding of the changing governance patterns of the European economy and consequently is of interest to anybody concerned with issues of European integration as a whole.
Topic:
Industrial Policy, International Cooperation, and Science and Technology
Political Geography:
United States and Europe

53. Commercialization of Russian Technology in Cooperation with American Companies

Author:
David Bernstein
Publication Date:
06-1999
Content Type:
Working Paper
Institution:
Center for International Security and Cooperation (CISAC), Stanford University
Abstract:
The Soviet Union placed a high priority on science and technology and built a huge assembly of research institutes, educational programs, design bureaus, and production enterprises embodying some measure of science and/or technology. This assembly concentrated over—whelmingly on military applications. Approximately three—quarters of this complex was located in Russia, but essential elements of many programs were located in other republics. The nature, structure, size, and operation of this military—industrial complex (MIC) as well as its decline and change during the Gorbachev and post—Soviet periods of economic transition have been documented in the literature.
Topic:
Industrial Policy, International Cooperation, and Science and Technology
Political Geography:
Russia, United States, Europe, Asia, and Soviet Union

54. The Competitive Advantage of Hollywood Industry

Author:
Luc Veron
Publication Date:
03-1999
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
The author is very grateful for the support, both material and intellectual, which he received during his stay at the University of Southern California. He is particularly appreciative of the many conversations he had with colleagues at the School of International Relations, the Center for International Studies, the Marshall School of Business and the Department of Economics of USC as well as at UCLA's School of Public Policy and Social Research which greatly helped him to formulate the ideas presented here. Although the author is currently employed by the European Commission, the ideas expressed in this paper are purely personal and do not reflect the views of any institution.
Topic:
Globalization, Industrial Policy, and Political Economy
Political Geography:
United States, Europe, and California

55. Hollywood and Europe: A Case of Trade in Cultural Industries, the 1993 GATT Dispute

Author:
Luc Veron
Publication Date:
03-1999
Content Type:
Working Paper
Institution:
Center for International Studies, University of Southern California
Abstract:
The heated dispute that erupted at the end of the GATT (General Agreement on Tariffs and Trade) negotiations between the United States (US) and the European Union (EU) on audio-visual services is fairly representative of the cultural argument in trade. Culture is often proclaimed to oppose full liberalisation of international exchanges of goods and services. In 1989, after the liberalisation of US film import in Korea, angry Koreans directors in some Seoul theatres showing US movies released poisonous snakes Japan traditionally opposed rice imports on the basis that it would endanger Japanese culture. The United States claimed that the "potato-potato-potato rhythm at idle and the staccato beat at cruising speeds" of a Harley-Davidson was part of the American culture with the obvious aim to ridicule any notion of culture, or more precisely of national culture. German director Wim Wenders replied to the latter by provocatively reminding that the essence of US national culture being trade the Americans have no sense of any possible contradiction between trade and culture. When, to justify the remarkable work of the Australian Film Commission, experts came up with a tentative definition of Australian culture, the simple evocation of Crocodile Dundee generated outrage, especially among the feminists. It is uneasy to find an acceptable and workable definition of national culture to analyse its impact on trade.
Topic:
Globalization, Industrial Policy, and International Trade and Finance
Political Geography:
United States, Japan, Europe, Germany, Australia, and Korea

56. Europarliament and Environmental Leglislation: The Case of Chemicals

Author:
George Tsebelis and Anastassios Kalandrakis
Publication Date:
07-1998
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
The paper studies the impact of the EP on legislation on chemical pollutants introduced under the Cooperation procedure. A series of formal and informal analyses have predicted from significant impact of the EP, to limited impact (only in the second round) to no impact at all. Through the analysis of Parliamentary debates as well as Commission and Parliamentary committee documents, we are able to assess the significance of different amendments, as well as the degree to which they were introduced in the final decision of the Council. Our analysis indicates first that less than 30% of EP amendments are insignificant, while 15% are important or very important; second, that the probability of acceptance of an amendment is the same regardless of its significance. Further analysis indicates two sources of bias of aggregate EP statistics: several amendments are complementary (deal with the same issue in different places of the legal document), and a series of amendments that are rejected as inadmissible because they violate the legal basis of the document or the germainess requirement) are included in subsequent pieces of legislation. We calculate the effect of these biases in our sample, and find that official statistics underestimate Parliamentary influence by more that 6 percentage points (49% instead of 56% in our sample). Finally, we compare a series of observed strategic behaviors of different actors (rapporteurs, committees, floor, Commission) to different expectations generated by the literature.
Topic:
Environment, Industrial Policy, and Political Economy
Political Geography:
Europe

57. The Academic-Industrial Symbiosis in German Chemical Research, 1905-1939

Author:
Jeffrey Johnson
Publication Date:
05-1997
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This paper discusses academic-industrial relations in German chemical research from 1905 to the eve of World War II, considering four periods: the decade before World War I, the years of total war and postwar crisis (1916-1923), the renewed crisis (1929-1933), and finally the Nazi years. These periods saw, respectively, the creation of academic-style research laboratories with substantial industrial support; the emergence of industrially-funded organizations to subsidize chemical literature and educational institutions (as well as research); reductions in support for these organizations and in subsidies for contracted academic collaborators, but the expansion of postdoctoral fellowships funded by I.G. Farben; and finally the politicization and militarization of the academic-industrial symbiosis under National Socialism.
Topic:
Industrial Policy, International Political Economy, and Science and Technology
Political Geography:
Europe and Germany

58. Capacity Losses, Reconstruction and Unfinished Modernization: The Chemical Industry in the Soviet Zone of Occupation (SBZ)/GDR 1945-1965

Author:
Rainer Karlsch
Publication Date:
03-1997
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
Between the two World Wars, central Germany (the later GDR) was a preferred region for the foundation of new chemical plants. But after World War II, Soviet occupying troops dismantled 116 chemical plants in the Soviet Zone of Occupation. After the division of Germany became apparent, the Soviet Zone began a policy of self-sufficiency, but the chemical industry of the GDR dropped behind the West German chemical industry in the first postwar decade. After the "Sputnik shock" in 1957 and Khruschev's proclamation of an "economic race," the chemical industry in the Eastern Bloc moved into the center of the economic policy. In November 1958, the GDR enacted, as did the Soviet Union, a special chemical program. The main points of the program were the doubling of the chemical production within seven years, and an even greater increase in production of synthetic fibers and plastic. But the program failed. Decisive for the backsliding of the GDR's chemical industry was the uncoupling from the international division of labor and the integration into the East European economic zone. The GDR's Chemical Industry could find no real equivalent partner in Eastern Europe, and cooperation with the West was restricted for political reasons. The "opting for oil" of the Ulbricht-era became in the Honecker-era a policy of moving "back to coal." The maintaining of carbide chemistry finally ended in an energy crisis and an ecological fiasco.
Topic:
Cold War, Industrial Policy, and International Political Economy
Political Geography:
Europe and Germany

59. Dominance through Cooperation - The Japan Strategy of I.G. Farben

Author:
Akira Kudo
Publication Date:
03-1997
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This paper analyzes the Japan strategy of I.G. Farben in the inter-war period. It deals with export strategy as well as the licensing of technologies. It concludes that I.G. Farben suffered from a variety of difficulties in its Japan business, especially in the area of direct investment, and that, in spite of this, it succeeded in developing active business operations in Japan, especially in its exports of dyestuffs and nitrogenous fertilizer and in its licensing of the Haber-Bosch process for synthetic ammonia.
Topic:
Industrial Policy and International Political Economy
Political Geography:
Japan, Europe, Israel, and East Asia

60. The Dynamics of Industry Structure: The Chemical Industry in the US, Western Europe, and Japan in the 1980s

Author:
Ashish Arora and Alfonso Gambardella
Publication Date:
03-1997
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
This paper analyzes the evolution of the structure of the chemical industry in the US, Europe, and Japan. Differences in institutions, historical conditions, and resource endowments across the three regions reinforce differences in initial conditions. However, technological innovation, the internationalization of the industry, and the development and operation of markets, especially markets for technology, capital, raw materials, and corporate control, are powerful forces encouraging convergence. Convergence is less marked at the level of the firm than at the level of the industry, and is more marked between the industries of Western Europe and the United States.
Topic:
Globalization and Industrial Policy
Political Geography:
United States, Japan, and Europe

61. From Partial to Systemic Globalization

Author:
Dieter Ernst
Publication Date:
04-1997
Content Type:
Working Paper
Institution:
Berkeley Roundtable on the International Economy
Abstract:
Far-reaching changes are currently occurring in the organization and location of the production of industrial goods and services, changes which are bound to have important implications for the welfare, the development potential, and the competitive position of different countries and regions. As competition cuts across national and sectoral boundaries and becomes increasingly global, firms everywhere are forced to shift from exports to international production. Today, dominance in a domestic market—even one as large as the U.S.—is no longer enough. Mutual raiding of established customer and supply bases has become an established business practice, with the result that firms are now forced to compete simultaneously in all major markets, notably in Europe, North America and Asia.
Topic:
Globalization and Industrial Policy
Political Geography:
Europe, Asia, and North America

62. International Conferences: Considerations on the Evolution of the French and American Industrial Societies

Author:
Monique Borrel, Stephen Bornstein, Pierre-Eric Tixier, Chris Benner, Julia E. Kopich, and W. Norton Grubb
Publication Date:
02-1996
Content Type:
Working Paper
Institution:
Institute of European Studies (IES), UC Berkeley
Abstract:
From the beginning of the industrial era to the present time, French social history has been characterized by recurrent strikes of great magnitude. Contrary to most postwar industrialized countries where large strikes ceased to play a key role in sociopolitical changes, the French case presents an important anomaly. This research demonstrates that strikes have been instrumental in reshaping French society since the early 1950s. First, strike waves and generalized disputes supported the rapid expansion of the Welfare State throughout the postwar period. They also prompted leftist parties and unions to achieve coordination in their strategies and to orchestrate national demonstration strikes, which resulted in the emergence of a leftist electoral majority. Besides, the 1968 strike waves and the leftist strategy to achieve political power supported the upward trend in unionization in the 1970s. Beginning in the early 1980s, this French pattern of strikes has resulted in a number of perverse effects that account for the crisis of the mid1990s. In that respect, the French experience supports the idea that advanced industrial societies cannot afford recurrent general strikes without damaging the very fabric of democracy and without jeopardizing their economic future.
Topic:
Education and Industrial Policy
Political Geography:
America, Europe, and France

63. Political Identities

Author:
Charles Tilly
Publication Date:
05-1995
Content Type:
Working Paper
Institution:
Center for Studies of Social Change
Abstract:
Observation of state-military relations in Israel reveals an apparent paradox: Within a period of about seventy years, the more the militarization of Israeli society and politics gradually increased, the more politicians were successful in institutionalizing effective control over the Israel Defence Forces (IDF, and the pre-state organizations). Militarization passed through three main stages: (1) accepting the use of force as a legitimate political instrument during the pre-state period (1920-1948), subsequent to confrontation between pacifism and activism; (2) giving this instrument priority over political-diplomatic means in the state's first years up to the point in which (3) military discursive patterns gradually dominated political discourse after the 1967 War. At the same time, political control over the IDF was tightened, going from the inculcation of the principle of the armed forces' subordination to the political level during the pre-state period to the construction of arrangements working to restrain the military leverage for autonomous action.
Topic:
Education, Industrial Policy, and Politics
Political Geography:
United Kingdom, Europe, and Israel