Local Enterprises in the Global Economy Issues of Governance and Upgrading 1st Edition by Hubert Schmitz ISBN 1843769743 9781843769743

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ISBN 10: 1843769743 
ISBN 13: 9781843769743
Author: Hubert Schmitz

This book opens a fresh chapter in the debate on local enterprise clusters and their strategies for upgrading in the global economy. The authors employ a novel conceptual framework in their research on industrial clusters in Europe, Latin America and Asia and provide new perspectives and insights for researchers and policymakers alike.

The debate on local upgrading capacity is torn between two lines of thinking: those who believe that local relationships between enterprises and institutions are key to upgrading, and those who argue that the spaces for upgrading are defined by the sourcing strategies of global buyers. From this debate a number of important questions arise: how feasible is it to develop local upgrading strategies? Can local policy networks make a difference, or do global forces undermine them? Do global quality and labour standards marginalise developing country producers or do they help them to upgrade? To answer these questions, the book brings together theoretical and empirical research on local and regional clusters, global value chains and global standards, using case studies from developed and developing countries. The authors provide a new understanding of how global and local governance interact, highlighting power and inequality in global chains but also identifying scope for local action.

Local Enterprises in the Global Economy Issues of Governance and Upgrading 1st Table of contents:

1. Introduction: The Challenge of Upgrading in the Global Economy
* Globalisation and its Impact on Local Economies
* The Rise of Global Value Chains (GVCs)
* The Concept of “Upgrading”: Why and How Firms and Industries Develop
* The Importance of Governance in GVCs
* Overview of the Book’s Structure and Key Arguments

2. Global Value Chains: A Framework for Analysis
* Defining Global Value Chains
* Different Types of GVCs and Their Characteristics
* The Role of Lead Firms
* The Linkages Between Local and Global Actors
* Beyond the Value Chain: The Role of Local Context

3. Governance in Global Value Chains
* Defining Governance in the Context of GVCs
* Typologies of Governance (e.g., Market, Modular, Relational, Captive, Hierarchy)
* The Power Dynamics within Chains
* How Governance Structures Influence Upgrading Opportunities
* The Role of Institutions and Trust

4. Upgrading in Global Value Chains: Concepts and Dimensions
* Process Upgrading (e.g., efficiency, quality improvements)
* Product Upgrading (e.g., new products, better design)
* Functional Upgrading (e.g., taking on new activities like design or marketing)
* Chain Upgrading (e.g., moving to more sophisticated chains)
* The Interplay between Different Types of Upgrading

5. Collective Efficiency and Local Clusters
* The Concept of Industrial Clusters and Districts
* Benefits of Agglomeration and Local Specialization
* Internal and External Collective Efficiency
* The Role of Trust and Cooperation in Clusters
* Clusters in the Context of Global Value Chains

6. The Role of Local Institutions and Public Policy
* Supporting Institutions for Local Enterprise Development
* Government Policies for Upgrading (e.g., industrial policy, technology policy)
* Role of Business Associations and Local Support Organizations
* Creating an Enabling Environment for Upgrading

7. Case Studies of Upgrading in Specific Sectors (Illustrative Examples)
* (Example 1: Apparel/Garment Industry): From Cut-Make-Trim to Full-Package Manufacturing
* (Example 2: Software/IT Services): Moving up the Value Chain in Services
* (Example 3: Horticulture/Agri-business): Quality Standards and Export Markets
* (Example 4: Furniture/Footwear): Design and Brand Development

8. Challenges and Constraints to Upgrading
* Barriers to Entry in Higher Value-Added Segments
* The “Low-Road” Trap and Race to the Bottom
* Power Imbalances with Lead Firms
* Insufficient Local Capabilities and Innovation
* Lack of Access to Information and Markets

9. The Future of Local Enterprises in the Global Economy
* Adapting to Changing Global Demand and Technologies
* The Rise of New Lead Firms and GVC Structures
* The Importance of Innovation and Learning
* Policy Implications for Sustainable Local Development

10. Conclusion: Governance and Upgrading in the New Global Landscape
* Reaffirming the Centrality of Governance for Upgrading
* Lessons Learned from Diverse Experiences
* A Research Agenda for Future Studies
* Policy Recommendations for Fostering Local Upgrading

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Tags: Hubert Schmitz, Enterprises, Economy