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"Bathelt, Harald"
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Global cluster networks—foreign direct investment flows from Canada to China
2014
Using a network perspective of multinational firms, this article develops conceptions of global cluster networks and global city-region networks that are based on foreign direct investment (FDI) activities. The article first formulates a global cluster-network hypothesis suggesting that multinational cluster firms are more likely to set up new foreign affiliates in other, similarly specialized clusters to keep up with global industry dynamics. Conversely, it is suggested that non-cluster firms are more likely to avoid cluster destinations in their FDIs. Second, it is hypothesized that cluster networks generate connections between city-regions in different countries that are horizontal and vertical in character and thus shape global city-region networks. To test these hypotheses, the spatial patterns of 299 FDI cases from Canada to China between 2006 and 2010 are investigated, generally supporting the hypotheses developed.
Journal Article
The Elgar companion to innovation and knowledge creation
This Companion provides a comprehensive, state-of-the-art overview and critical evaluation of existing conceptualizations and new developments in innovation research. Arguing that innovation research requires inter- and trans-disciplinary explanations and methodological pluralism at various levels, it draws on multiple perspectives of innovation, knowledge and creativity from economics, geography, history, management, political science and sociology. The Companion provides the definitive guide to the field and introduces new approaches, perspectives and developments. The Companion systematically analyzes the challenges, problems and gaps in innovation research. Leading scholars reflect upon and critically assess the fundamental topics of the field, including: innovation as a concept; innovation and institutions; innovation and creativity; innovation, networking and communities; innovation in permanent spatial settings; innovation in temporary and virtual settings; innovation, entrepreneurship and market making; innovation governance and management. Innovation researchers and students in economics, economic geography, industrial sociology, innovation studies, international business, management and political science will find the Companion to be an essential resource. It will also appeal to practitioners in innovation and policy makers in economic development, public policy and innovation policy.
Clusters and knowledge: local buzz, global pipelines and the process of knowledge creation
by
Maskell, Peter
,
Malmberg, Anders
,
Bathelt, Harald
in
Bgi / Prodig
,
Channels of communication
,
Cluster analysis
2004
The paper is concerned with spatial clustering of economic activity and its relation to the spatiality of knowledge creation in interactive learning processes. It questions the view that tacit knowledge transfer is confined to local milieus whereas codified knowledge may roam the globe almost frictionlessly. The paper highlights the conditions under which both tacit and codified knowledge can be exchanged locally and globally. A distinction is made between, on the one hand, the learning processes taking place among actors embedded in a community by just being there dubbed buzz and, on the other, the knowledge attained by investing in building channels of communication called pipelines to selected providers located outside the local milieu. It is argued that the co-existence of high levels of buzz and many pipelines may provide firms located in outward-looking and lively clusters with a string of particular advantages not available to outsiders. Finally, some policy implications, stemming from this argument, are identified.
Journal Article
Geographies of production: growth regimes in spatial perspective 3 - toward a relational view of economic action and policy
2006
Since the 1990s, the basic foundations and core ideas of economic geography have been under intensive scrutiny. A microperspective of human action should be applied to economic geography which emphasizes its contextual, path-dependent and contingent nature. This also implies that general spatial laws of economic action do not exist.
Journal Article
Toward a relational economic geography
by
Glückler, Johannes
,
Bathelt, Harald
in
Conceptualization
,
Economic analysis
,
Economic development
2003
In this paper, we argue that a paradigmatic shift is occurring in economic geography toward a relational economic geography. This rests on three propositions. First, from a structural perspective economic actors are situated in contexts of social and institutional relations. Second, in dynamic perspective economic processes are path-dependent, constrained by history. Third, economic processes are contingent in that the agents' strategies and actions are open-ended. Drawing on Storper's holy trinity, we define four ions as the basis for analysis in economic geography: organization, evolution, innovation, and interaction. Therein, we employ a particular spatial perspective of economic processes using a geographical lens.
Journal Article
Location strategy in cluster networks
by
Li, Pengfei
,
Bathelt, Harald
in
Business
,
Business and Management
,
Business Strategy/Leadership
2018
This article investigates the location strategies of Canadian and Chinese multisite firms in international and domestic investment decisions at the metropolitan level. By integrating research from international business studies and economic geography, we combine knowledge-based understandings of multinational corporations and industrial clusters to develop propositions regarding the location strategies of multisite firms in cluster networks. It is argued that firms from clusters are more likely to adopt knowledge strategies than firms from other areas and that they tend to choose cluster locations that are specialized in the same or similar industries to achieve their knowledge goals – both in domestic and international investment decisions. We establish and analyze a database of 3500 investment cases within and between Canada and China to test our propositions. The results show that firms in knowledge-intensive industrial environments with substantial business experience are especially inclined to direct their investments to clusters. Consistent with our emphasis of the subnational as opposed to the national scale, we find that cluster-of-origin effects are more important than country-of-origin effects in explaining firms’ investment choices in clusters. These findings support the idea that multisite firms, particularly MNEs, leverage local knowledge pools by strategically locating affiliates across clusters.
Journal Article
Income divergence and global connectivity of U.S. urban regions
by
Buchholz, Maximilian
,
Cantwell, John A.
,
Bathelt, Harald
in
Business and Management
,
Business Strategy/Leadership
,
Cities
2020
After a century of inter-regional income convergence, average incomes have been diverging between U.S. cities since the 1980s, calling for new policy agendas. We argue that policy research should move beyond its current focus on the effects of inter-city divergence from technological change, migration, and trade, to include the effect of outward foreign-direct investments (OFDIs). This paper suggests that OFDIs have contributed to income divergence across U.S. cities. We argue that OFDIs can positively contribute to average income levels in investing (home) cities through labor, knowledge, multiplier and trade effects – a relationship that has not been systematically investigated in prior research. It is suggested that regional income levels and OFDIs are subject to a virtuous co-evolutionary process for high-income cities while having weaker effects for lower-income cities. This is tested with a combination of fixed-effects panel regressions and quantile regressions, before and after the 2008/2009 financial crisis. Our key finding is that, while OFDIs have a positive effect on regional income levels in the post-crisis period, their effect is largest for cities with incomes around the 60th to 80th percentiles of the income distribution. This suggests that the benefits of OFDIs primarily accrue to already successful city-regions, allowing them to further their pre-existing lead.
Journal Article
The creation of knowledge
2014
This article argues that local knowledge building and global (nonlocal) knowledge-accessing practices in economic development are intrinsically interwoven. They generate fundamental feedback loops, which are channeled through and lead to ongoing knowledge circulation. To better understand the nature of the specific mechanisms and conditions underlying these processes, three key areas of research are identified for current and future research. These are related to (i) creative agents and the nature of local creative processes, (ii) community formation and local creativity from ideas to market penetration and (iii) temporary gatherings as translocal knowledge platforms.
Journal Article
Outward Foreign Direct Investments as a Catalyst of Urban-Regional Income Development? Evidence from the United States
2019
Challenging populist views of outward foreign direct investments (OFDIs) that suggest they move prosperity abroad, this article builds a model suggesting that OFDIs support urban-regional income levels due to (1) labor; (2) knowledge; and (3) multiplier, spillover, and intermediate input effects. In a panel study of median incomes in US urban regions between 2005 and 2013, we first establish a base model that measures income as a function of local factor endowments (high skill levels, fast-growing and technologically sophisticated industries, and urban scale effects). This base model is highly significant. In the next step, we extend this model by adding our main variables of greenfield inward and outward investment intensity, and finally we integrate other indicators that measure the geographic, industrial, and functional composition of OFDIs. While the results for other investment-related indicators are mixed, the main investment variables are highly significant, thus providing strong support that greenfield OFDIs act as a catalyst of urban-regional income development.
Journal Article