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It is a daunting task to build institution and infrastructure over a short time period in developing countries. But in the absence of sound institutions and adequate infrastructure, it is difficult for economic transformation to take place. An alternative is to facilitate existing industrial clusters or build industrial parks by creating an enabling environment in a limited place. This paper reviews the commonly used strategies to build effective clusters and industrial parks. Clusters and industrial parks are location specific. Because they have an informational advantage, local governments are in a better position than the central government to identify and solve the bottlenecks that affect clusters and industrial parks. As clusters and industrial parks evolve, new bottlenecks emerge, thereby requiring new solutions. This in turns calls for continuous tinkering by local governments. It is important to place local governments and business communities in the driver’s seat of local economic growth so that they can watch out for and adjust to the bumps in the road ahead.
America's position as the source of much of the world's global innovation has been the foundation of its economic vitality and military power in the post-war. No longer is U.S. pre-eminence assured as a place to turn laboratory discoveries into new commercial products, companies, industries, and high-paying jobs. As the pillars of the U.S. innovation system erode through wavering financial and policy support, the rest of the world is racing to improve its capacity to generate new technologies and products, attract and grow existing industries, and build positions in the high technology industries of tomorrow. Rising to the Challenge: U.S. Innovation Policy for Global Economy emphasizes the importance of sustaining global leadership in the commercialization of innovation which is vital to America's security, its role as a world power, and the welfare of its people. The second decade of the 21st century is witnessing the rise of a global competition that is based on innovative advantage. To this end, both advanced as well as emerging nations are developing and pursuing policies and programs that are in many cases less constrained by ideological limitations on the role of government and the concept of free market economics. The rapid transformation of the global innovation landscape presents tremendous challenges as well as important opportunities for the United States. This report argues that far more vigorous attention be paid to capturing the outputs of innovation - the commercial products, the industries, and particularly high-quality jobs to restore full employment. America's economic and national security future depends on our succeeding in this endeavor.
How logistics clusters can create jobs while providing companies with competitive advantage. Why is Memphis home to hundreds of motor carrier terminals and distribution centers? Why does the tiny island-nation of Singapore handle a fifth of the world's maritime containers and half the world's annual supply of crude oil? Which jobs can replace lost manufacturing jobs in advanced economies? Some of the answers to these questions are rooted in the phenomenon of logistics clusters—geographically concentrated sets of logistics-related business activities. In this book, supply chain management expert Yossi Sheffi explains why Memphis, Singapore, Chicago, Rotterdam, Los Angeles, and scores of other locations have been successful in developing such clusters while others have not. Sheffi outlines the characteristic “positive feedback loop” of logistics clusters development and what differentiates them from other industrial clusters; how logistics clusters “add value” by generating other industrial activities; why firms should locate their distribution and value-added activities in logistics clusters; and the proper role of government support, in the form of investment, regulation, and trade policy. Sheffi also argues for the most important advantage offered by logistics clusters in today's recession-plagued economy: jobs, many of them open to low-skilled workers, that are concentrated locally and not “offshorable.” These logistics clusters offer what is rare in today's economy: authentic success stories. For this reason, numerous regional and central governments as well as scores of real estate developers are investing in the development of such clusters. View a trailer for the book at: http://techtv.mit.edu/videos/22284-logistics-clusters-yossi-sheffi
This Oxford Handbook provides a critical assessment of the history, patterns, and strategies of economic transformation. It deals with major themes including policy issues, illuminating country experiences, and important debates on the respective roles of the market and the state.
This book provides a comprehensive overview of what Asian industrial clusters might teach us. At a time when the dynamics of the world''s economy are increasingly being influenced by developments in Asia, the question takes on particular relevance because of the explosion of clusters and cluster policies throughout the region; and because of the great variety of models which can be seen developing in the various countries. Based on robust empirical surveys and interviews conducted in China, Vietnam, Thailand, Malaysia and Japan, the studies collected in this book were first debated at an international workshop in Lyon. From industrial districts to poles of competitiveness, these studies explored the transformation of traditional systems of activities or industrial districts to new networks ready for global competition or innovation, and also the development of new agglomerations or scientific knowledge clusters. The wide range of case studies in this collection offers a rich store of theoretical and practical lessons for analysts, policy-makers and economists. The book will also be a useful guide for graduate students as well as researchers in economics, sociology and political studies.
Industrialization supported by industrial hubs has been widely associated with structural transformation and catch-up. But while the direct economic benefits of industrial hubs are significant, their value lies first and foremost in their contribution as incubators of industrialization, production and technological capability, and innovation. The Oxford Handbook of Industrial Hubs and Economic Development adopts an interdisciplinary approach to examine the conceptual underpinnings, review empirical evidence of regions and economies, and extract pertinent lessons for policy reasearchers and practitioners on the key drivers of success and failure for industrial hubs. This Handbook illustrates the diverse and complex nature of industrial hubs and shows how they promote industrialization, economic structural transformation, and technological catch-up. It explores the implications of emerging issues and trends such as environmental protection and sustainability, technological advancement, shifts in the global economy, and urbanization.
This paper assesses the Subramanian and Deaton (S–D) approach for imputing the caloric intake of households from food prepared away from home (FAFH) and composite foods (CF) by juxtaposing it with the imputations of alternative approaches, and extends these approaches to four additional nutrients—vitamin A, iron, zinc, and calcium. The apparent relative nutritional insignificance of FAFH and CF in Bangladesh obfuscates our efforts to assess alternatives to the S–D approach to imputation, and we remain uncertain about the relative value of the alternative imputation approaches examined. FAFH and CF—although widely consumed in Bangladesh—constitute a relatively unimportant source of nutrients, regardless of how the nutrient content of FAFH and CF is imputed.
We conduct an ex ante evaluation of the impacts of a potential global recession within the next years and the possible policy responses to support economic activity and improve social indicators in five Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, and Nicaragua. We review the economic and social evolution of the past decades in those countries, and we consider a global scenario that includes further deceleration of world growth, lower commodity prices, and a decline in remittances and capital flows to those countries. We simulate those scenarios and related policy issues using recursive dynamic CGE models for the countries considered. The global shock is run under fixed exchange rates and flexible exchange rates (in the case of El Salvador, which has adopted the US dollar as the domestic currency, the simulation of a flexible exchange rate is just indicative). In all cases, a flexible exchange rate delivers better results in terms of GDP per capita, by softening the overall economic impact of the external shocks. Two possible interventions to deal with the recession are simulated: one focuses on policies to strengthen the safety net for the poor; the other applies a more general macroeconomic stimulus (a tax cut plus a modest increase in public investments, financed by un-conventional monetary policy) to try to cushion the shock. For all countries except El Salvador, these two simulations are run with a flexible exchange rate. In the first policy simulation GDP per capita in those countries does not change much, but the poor groups targeted clearly improve their incomes and consumption, helping them the most during the years of the negative shocks. In the second simulation, the macroeconomic stimulus improves the performance of the economies, allowing GDP per capita to be higher than in the case of the shock alone. In summary, facing a potential global downturn as the one simulated here, those countries that have flexible exchange rates and the use of domestic monetary policies can use a mix of adjustment in exchange rates combined with targeted poverty transfers and macroeconomic stimulus to alleviate the shock. El Salvador, which does not have the exchange rate and monetary instruments, will require further support from multilateral and bilateral sources to soften the shock
Much empirical research has shown that individuals’ decisions to adopt a new technology are the result of learning–both through personal experimentation through observing the experimentation of others. Yet even casual observation would suggest significant heterogeneity of learning processes, manifesting itself in widely varying patterns of adoption over space and time. This paper explores this heterogeneity in the context of early adoption of hybrid rice in rural India. Using specially designed experiments conducted as part of a primary survey in the field, we identify which of four broad learning heuristics most accurately reflects individuals’ information processing strategies. Linking these learning heuristics with observed use of rice hybrids, we demonstrate that pure Bayesian learning is well suited for the tinkering and marginal adjustments that are required to learn about a technology like hybrid rice, but it is also more cognitively taxing than other learning styles requiring a longer memory and more complex updating processes. Consequently, only about 25 percent of the farmers in our sample can be characterized as pure Bayesian learners. Present-biased learning and relying on first impressions will likely hinder adoption of a technology like hybrid rice, even after controlling for access to credit and a rudimentary proxy for intelligence.
This book provides a comprehensive overview of what Asian industrial clusters might teach us. At a time when the dynamics of the world's economy are increasingly being influenced by developments in Asia, the question takes on particular relevance because of the explosion of clusters and cluster policies throughout the region; and because of the great variety of models which can be seen developing in the various countries.Based on robust empirical surveys and interviews conducted in China, Vietnam, Thailand, Malaysia and Japan, the studies collected in this book were first debated at an international workshop in Lyon. From industrial districts to poles of competitiveness, these studies explored the transformation of traditional systems of activities or industrial districts to new networks ready for global competition or innovation, and also the development of new agglomerations or scientific knowledge clusters.The wide range of case studies in this collection offers a rich store of theoretical and practical lessons for analysts, policy-makers and economists. The book will also be a useful guide for graduate students as well as researchers in economics, sociology and political studies.