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29 pages, 922 KiB

Open AccessArticle

Start Switch for Innovation in “Construction Sequencing”: Research Funding

by Akifumi Kuchiki

Economies 2024, 12(11), 302; https://doi.org/10.3390/economies12110302 - 8 Nov 2024

Viewed by 349

Clusters of knowledge-intensive industries and manufacturing industries form industrial agglomeration in Step I and activate innovation in Step II. Industry clusters are formed by building segments. “Construction sequencing” in the construction industry refers to the process of determining the sequence of segments to [...] Read more.

Clusters of knowledge-intensive industries and manufacturing industries form industrial agglomeration in Step I and activate innovation in Step II. Industry clusters are formed by building segments. “Construction sequencing” in the construction industry refers to the process of determining the sequence of segments to optimize a project’s resources, budget, and scheduled timeline. The process usually begins by dividing a project into segments. Urban segments consist of public spaces, airports, factories, health, housing, etc. A “segment” is a component of a cluster; the organization of a cluster consists of constructing segments. These segments can be divided into four main categories: human resources, physical infrastructure, institutions, and the living environment. Each segment has a specific function in the process of building a cluster. This study focused on innovation in Step II and extended the Fujita–Thisse model of spatial economics to hypothesize that research expenditure per researcher leads to value being added. The Granger causality was tested for the knowledge and manufacturing industries in nine major countries including China and the U.S. The results showed that the hypothesis was significant in identifying the starting segment of innovation in Step II. Accordingly, it can be concluded that research funding is the start switch that triggers innovation. The policy implication is that activating innovation in cluster policies begins with the establishment of a research fund for researchers in its assigned clusters. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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19 pages, 1762 KiB

Open AccessArticle

The Structure and Nature of Social Capital in the Relationship between Spin-Offs and Parent Companies in Information Technology Clusters in Brazil and Spain

by Flávio Manoel Coelho Borges Cardoso, Maria Teresa Martínez-Fernández, Marcos de Moraes Sousa and Valmir Emil Hoffmann

Economies 2024, 12(9), 241; https://doi.org/10.3390/economies12090241 - 10 Sep 2024

Viewed by 1045

Abstract

The objective of this research is to determine how proximity between organizations promotes the intensity of relationships and facilitates the exchange of information and knowledge in the relationship between the parent firm and the spin-off and its influence on organizational performance. Therefore, four [...] Read more.

The objective of this research is to determine how proximity between organizations promotes the intensity of relationships and facilitates the exchange of information and knowledge in the relationship between the parent firm and the spin-off and its influence on organizational performance. Therefore, four constructs related to business competitiveness are integrated: networks, social capital, spin-offs, and innovation. The loci of the research were two clusters of Information and Communication Technology, with a sample of 166 companies in Brazil and 66 in Spain. Structural Equation Modeling was applied. The results indicate that geographical proximity between organizations promotes the intensity of relationships and facilitates the exchange of knowledge between the parent firm and the spin-off, but it cannot be said that geographical proximity impacts innovation for the parent firm. Furthermore, because the parent firm relates to its spin-off, the parent firm did not perform better than the nonparent companies with other companies. This study improves the understanding of companies that are in a business cluster, and its results have both institutional and business implications for the Information and Communication Technology (ICT) sector. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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23 pages, 341 KiB

Open AccessArticle

Enhancing Competitiveness: Driving and Facilitating Factors for Industry 4.0 Adoption in Thai Manufacturing

by Nuchjarin Intalar, Yasushi Ueki and Chawalit Jeenanunta

Economies 2024, 12(8), 210; https://doi.org/10.3390/economies12080210 - 20 Aug 2024

Viewed by 1123

Abstract

Adopting Industry 4.0 (I4.0) is inevitable for Thailand’s manufacturing sector to remain competitive because global markets increasingly demand higher quality, faster delivery, and greater customization. While firms need to enhance productivity and optimize resource utilization, they also need to reduce operation costs, which [...] Read more.

Adopting Industry 4.0 (I4.0) is inevitable for Thailand’s manufacturing sector to remain competitive because global markets increasingly demand higher quality, faster delivery, and greater customization. While firms need to enhance productivity and optimize resource utilization, they also need to reduce operation costs, which require advanced technologies and data-driven operations. However, successful adoption requires skilled human resources, which is challenging for small and medium-sized enterprises (SMEs). This research explores factors driving and facilitating the implementation of Industry 4.0 (I4.0) in Thai manufacturing firms among SMEs and large firms. We employed qualitative analysis using semi-structured interviews with SMEs and large manufacturing firms in Thailand. Five key factors emerged as crucial for I4.0 adoption: awareness of I4.0, strong and proactive support from top management, self-funding capabilities, and effective human resource development strategies. While large multinational enterprises (MNEs) possess more significant resources and capabilities to adopt I4.0 technologies, SMEs face considerable challenges. They require a strategic approach tailored to their unique needs and resources to develop a feasible I4.0 roadmap. Additionally, governments and industry associations can play a significant role by providing training, funding, and other resources to empower SMEs to embrace I4.0. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

25 pages, 2281 KiB

Open AccessArticle

Resident Evaluation of Reconstruction Challenges and Lessons Learned from the Great East Japan Earthquake: Recommendations for Reconstruction and Industrial Policies 12 Years after the Disaster

by Tetsuya Nakamura, Steven Lloyd and Satoru Masuda

Economies 2024, 12(7), 186; https://doi.org/10.3390/economies12070186 - 17 Jul 2024

Viewed by 1289

Abstract

The year 2023 marks the 12th anniversary of the Great East Japan Earthquake (GEJE). Immediately after the disaster, the number of evacuees reached approximately 470,000, but by November 2022, the number had decreased to approximately 31,000. The reconstruction of housing, disposal of debris, [...] Read more.

The year 2023 marks the 12th anniversary of the Great East Japan Earthquake (GEJE). Immediately after the disaster, the number of evacuees reached approximately 470,000, but by November 2022, the number had decreased to approximately 31,000. The reconstruction of housing, disposal of debris, public infrastructure development, and overall restoration and reconstruction has progressed steadily. However, a re-examination of the status of industrial restoration and reconstruction reveals that restoration and reconstruction have not progressed in some areas. This research statistically analyzes how the Japanese public perceives the issues around the recovery process and what memories and records they would like to learn from regarding the GEJE. The purpose of this study is to ask about reconstruction issues and lessons learned from the GEJE by conducting a web-based survey with 2000 respondents in Japan. The method of estimation is the use of ordinal logistic regression analysis to statistically estimate whether there are differences in recovery issues and lessons learned depending on individual attributes. The results suggest that those who are interested in, remember, and express anxiety about the recovery issues and lessons learned tend to be men, do not have children, are highly educated, and have a higher income. In sum, many of Japan’s citizens are highly interested in the reconstruction of agriculture, forestry, fisheries, housing, urban development, living environment, industry, and livelihood in the affected areas. In the future, they will play a central role in modernizing, scaling up, and integrating the agriculture, forestry, and fisheries industries, as well as in rebuilding towns and livelihoods. In the affected areas, it will be necessary to draw on the lessons learned from the GEJE and create reconstruction plans for the future, and then, policymakers will need to formulate reconstruction policies that reflect the concerns of the Japanese people. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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28 pages, 2772 KiB

Open AccessArticle

Brake Segment for Agglomeration Policy: Engineers as Human Capital

by Akifumi Kuchiki

Economies 2024, 12(7), 163; https://doi.org/10.3390/economies12070163 - 27 Jun 2024

Viewed by 1032

Abstract

A “segment” is a component of the organization of an agglomeration. The organization of agglomeration is formed by the construction of segments. Manufacturing agglomeration segments can be divided into four main categories: human resources including engineers, physical infrastructure, institutions, and living environment. Each [...] Read more.

A “segment” is a component of the organization of an agglomeration. The organization of agglomeration is formed by the construction of segments. Manufacturing agglomeration segments can be divided into four main categories: human resources including engineers, physical infrastructure, institutions, and living environment. Each segment then has a specific function in the process of building industrial agglomeration. We focus on the process of building segments in agglomeration formation. We define a “brake segment” as a segment that has a “function” to decelerate the speed of the process. The purpose of this paper is to identify the existence of this brake segment in the process of constructing the segments of the manufacturing agglomeration. We obtained the following three results. First, a modified version of the spatial economic model yields that the number of agglomerated firms is inversely related to the wages of skilled workers. Second, a factor analysis of the data on investment environment costs indicates that in the case of the manufacturing industry, the number of agglomerated firms are inversely related to the wages of engineers. Third, the factor analysis of the six countries in the JBIC survey reveals that the segment that poses the investment issue in foreign direct investment in India is engineers as human capital. We conclude that engineers as human capital are a brake segment. The implication is that the sustained development of “engineers” as human capital is essential for the success of manufacturing industry agglomeration. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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15 pages, 3315 KiB

Open AccessArticle

Spatial Aspect of Global Value Chain in East Asia: How Ports and Airports Shape Industrial Clusters in East Asia

by Satoru Kumagai

Economies 2024, 12(6), 151; https://doi.org/10.3390/economies12060151 - 14 Jun 2024

Viewed by 953

Abstract

This paper examines how geography matters for the location of industries in East Asia, employing regression analyses on a novel and comprehensive regional GDP dataset. This study examines how geography affects industrial location patterns, particularly the role of infrastructure, such as ports and [...] Read more.

This paper examines how geography matters for the location of industries in East Asia, employing regression analyses on a novel and comprehensive regional GDP dataset. This study examines how geography affects industrial location patterns, particularly the role of infrastructure, such as ports and airports. This paper analyzes the current economic geography of East Asia using the novel dataset. The regression analyses utilize location quotients as the dependent variable and incorporate explanatory variables, such as domestic/foreign market access, per capita income, population density, and distance-based dummies for ports and airports. The findings reveal that the determinants of industrial location differ significantly across industries. The relative importance of domestic versus foreign market access and proximity to ports and airports varies across sectors. The results imply that countries/regions cannot easily host industries of their choice, as different industries require distinct locational characteristics. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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28 pages, 1156 KiB

Open AccessArticle

Industrial Synergy Agglomeration, Urban Innovation Capacity, and Advanced Manufacturing Development

by Hua Yin and Wen Su

Economies 2024, 12(5), 117; https://doi.org/10.3390/economies12050117 - 14 May 2024

Viewed by 1261

Abstract

This paper endeavors to construct an evaluative framework to assess the level of development in advanced manufacturing across the 31 provinces in China from 2003 to 2021. Additionally, it aims to investigate the impact of industrial synergy agglomeration on the development of advanced [...] Read more.

This paper endeavors to construct an evaluative framework to assess the level of development in advanced manufacturing across the 31 provinces in China from 2003 to 2021. Additionally, it aims to investigate the impact of industrial synergy agglomeration on the development of advanced manufacturing by employing a moderated mediation model and the Spatial Durbin Model (SDM). The research results demonstrate that industrial synergy agglomeration facilitates the development of advanced manufacturing, with particularly pronounced effects in the eastern region of China and the 18 provinces that already possess national advanced manufacturing clusters. Urban innovation capacity plays an intermediary role, and both manufacturing intelligence and international capacity cooperation exhibit positive moderating effects in the direct and indirect pathways through which industrial synergy agglomeration influences the development of advanced manufacturing. Furthermore, industrial synergy agglomeration exhibits strong spillover effects on the development of advanced manufacturing. To boost the development of the advanced manufacturing industry, it is imperative to expedite the establishment of an industrial synergy spatial layout, foster a culture of enterprise innovation and intelligent transformation, emphasize inter-provincial communication and cooperation, and facilitate cross-border resource integration. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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16 pages, 1771 KiB

Open AccessArticle

Sectoral Performance Trends and Differences in the Balkan and Eastern European Region

by Tamás Kristóf, Attila Virág and Miklós Virág

Economies 2024, 12(4), 87; https://doi.org/10.3390/economies12040087 - 11 Apr 2024

Viewed by 1848

Abstract

This article provides an empirical analysis aimed at evaluating the financial trends and disparities at the sector level within the Balkan and Eastern European region. The dataset encompasses a period of nine years and comprises more than 20 million firm-year observations from 24 [...] Read more.

This article provides an empirical analysis aimed at evaluating the financial trends and disparities at the sector level within the Balkan and Eastern European region. The dataset encompasses a period of nine years and comprises more than 20 million firm-year observations from 24 industries in 21 countries. It uses 19 financial ratios to assess sectoral performance. In the empirical investigation, trend analysis and the two-step cluster analysis methods were used. Following the global financial crisis, a significant proportion of financial ratios exhibited favorable trends, indicating robust business and economic circumstances. Nevertheless, this trajectory was temporarily disrupted in 2020 due to the onset of the COVID-19 pandemic. By 2021, the financial ratios had reverted back to their historical patterns. Country membership, margin, liquidity, trade turnover, profitability, and leverage ratios are the most effective variables for explaining differences in sectoral performance. Sector membership is a comparatively less influential factor. Although this study effectively identified significant disparities in financial ratio profiles, it does not suggest that companies in the most developed countries in the region attain the most favorable financial performance. Stakeholders who have a vested interest in this region should carefully contemplate the ramifications of the findings from this study. Full article

(This article belongs to the Special Issue Industrial Clusters, Agglomeration and Economic Development)

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