Impact of networks, globalisation and their interaction with EU strategies (INGINEUS project): research papers on "fragmentation of GINs and capacity building in the automotive, ICT and agro-processing industries"

OUTPUT TYPE: Research report- client
PUBLICATION YEAR: 2011
TITLE AUTHOR(S): M.Gastrow, G.Kruss, L.Muller, J.Roodt
KEYWORDS: AGRICULTURE, AUTOMOTIVE INDUSTRY, GLOBALISATION, HUMAN CAPITAL DEVELOPMENT STRATEGY, INFORMATION AND COMMUNICATION TECHNOLOGY
DEPARTMENT: Inclusive Economic Development (IED)
Print: HSRC Library: shelf number 6449

If you would like to obtain a copy of this Research Output, please contact Hanlie Baudin at researchoutputs@hsrc.ac.za.

Abstract

The methodological framework of this work package consisted of empirical inputs from the INGINEUS survey, desk research, and in-depth firm-level case studies. Desk research included background reports on foreign direct investment and education and training systems from each of the developing country partners (see D6.2). The primary source of data is the case studies. Of these, five were 'matched' cases of large globalised firms, in which interviews were conducted in both the home country of the firm in Europe and at subsidiaries in host countries. Interviews were semistructured and focused on upgrading and location strategies, human capital, and the management of technological change. These instances of technological change were analysed within Lall's conceptual framework. The rich case studies provide concrete illustrations of the array of factors that shape the emergence and evolution of GINs, both from North to South and from South to North. The sectoral context of each firm influences the drivers and characteristics of innovation. Different sectors operate at different levels of technological intensity, have different levels of dependence on tacit and codified knowledge, and have differing demand for incremental development, adaptive development, new product development, and basic research. The key difference to emerge from analysis of the case studies is the role of tacit knowledge, which is more significant in the automotive sector, and less significant in the ICT sector.