{"title":"The three ages of the European policy for productive investments","authors":"Pierre Alayrac, Antonin Thyrard","doi":"10.1177/10245294241232163","DOIUrl":"https://doi.org/10.1177/10245294241232163","url":null,"abstract":"Across the EU sectoral policies, a variety of instruments are used to foster investments and to transform Europe’s productive capacities. Reading beyond the traditional bureaucratic and policy silos, this paper shows how such a composite repertoire of instruments crystalised, taking advantage of two complementary historical fieldworks. Using the sociological concept of ‘age’, we show how a European policy for productive investments emerged, supported by specific rationales and staff, to address episodes of budgetary constraints over investment policies. We first distinguish an ‘age of infrastructure’ (from the 1950s), where the first EEC bureaucrats in charge of these policies – mainly lawyers and engineers – designed loans strategies to continue reconstruction efforts, targeting heavy infrastructural investments in energy or transportation. Then, we show how in the 1970s context of rising budgetary tensions, economists urged their colleagues to take advantage of the Common Market to create European champions, through grants and co-financing, and by promoting SMEs as growth drivers: this marks the ‘integrative age’. Finally, from the 1990s, bureaucrats with a background in finance reoriented PI policies to overcome so-called ‘markets failures’ through loans, guarantees and equity, initiating an ‘age of leverage’ in EU public action. Here, the global access to (publicly subsidized) finance and the rise of derisking activities became a new standard. By capturing the way these successive policy ages concatenated and gave the EU Investor State its current shape, our approach accounts for both stability and change in EU policies.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"14 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139857972","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Planning progress: Incorporating innovation and structural change into models of economic planning","authors":"Nils Rochowicz","doi":"10.1177/10245294231220690","DOIUrl":"https://doi.org/10.1177/10245294231220690","url":null,"abstract":"This paper addresses the challenge of incorporating innovation and structural change in models of economic planning. Previous approaches to economic planning have mostly considered the static problem of the allocation of goods and services, leaving a secondary role (if at all) for the dynamic problem of innovation and change. However, Morozov (2021) argues that the key challenge for any alternative economic system, including planning, is to incorporate a model for progress that can rival the perceived innovative and dynamic nature of capitalism. Finding previous approaches to change in planned economies to be insufficient as central elements of planning technological progress, this paper introduces two new and complementary approaches to planning innovation: Democratic accelerated missions and screening and scaling technologies. Democratic accelerated missions act on the demand side of innovation, translating democratically formulated needs for new capabilities into research and development projects to fulfill these needs. Screening and scaling technologies act on the supply side, selecting promising new technologies based on democratically decided priorities and developing them towards finished products. Both approaches draw extensively on quantitative and qualitative evidence from different strands of literature on innovation to build an empirically grounded model, with a particular focus on (1) democratic decision-making in planning innovation, and (2) incorporating insights from technology prediction and the economics of innovation to steer technological progress. The proposed model demonstrates the feasibility of planning and directing technological progress, and is a first step towards designing institutional and algorithmic structures to this end.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"7 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139807110","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Planning progress: Incorporating innovation and structural change into models of economic planning","authors":"Nils Rochowicz","doi":"10.1177/10245294231220690","DOIUrl":"https://doi.org/10.1177/10245294231220690","url":null,"abstract":"This paper addresses the challenge of incorporating innovation and structural change in models of economic planning. Previous approaches to economic planning have mostly considered the static problem of the allocation of goods and services, leaving a secondary role (if at all) for the dynamic problem of innovation and change. However, Morozov (2021) argues that the key challenge for any alternative economic system, including planning, is to incorporate a model for progress that can rival the perceived innovative and dynamic nature of capitalism. Finding previous approaches to change in planned economies to be insufficient as central elements of planning technological progress, this paper introduces two new and complementary approaches to planning innovation: Democratic accelerated missions and screening and scaling technologies. Democratic accelerated missions act on the demand side of innovation, translating democratically formulated needs for new capabilities into research and development projects to fulfill these needs. Screening and scaling technologies act on the supply side, selecting promising new technologies based on democratically decided priorities and developing them towards finished products. Both approaches draw extensively on quantitative and qualitative evidence from different strands of literature on innovation to build an empirically grounded model, with a particular focus on (1) democratic decision-making in planning innovation, and (2) incorporating insights from technology prediction and the economics of innovation to steer technological progress. The proposed model demonstrates the feasibility of planning and directing technological progress, and is a first step towards designing institutional and algorithmic structures to this end.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"40 9-10","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139866884","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fashion designers as lead firms from below: Creative economy, state capitalism and internationalization in Lagos and Nairobi","authors":"Eka Ikpe, Lauren England, R. Comunian","doi":"10.1177/10245294231222658","DOIUrl":"https://doi.org/10.1177/10245294231222658","url":null,"abstract":"African fashion reveals intersections between upgrading, manufacturing and internationalization alongside expanding cultural, political and social influence. Yet global value chain analyses of the industry reinforce a core-periphery dynamic with the location of lead firms in the Global North (GN) and actors lower down the value chain in the Global South (GS). This disappears GS actors in the creative economy, including fashion designers, who innovate, design and cultivate the brand followership associated with lead firms. This paper analyzes fashion designers in Lagos and Nairobi as economic, cultural and social value creators and therein lead firms from below (LFfB). It conceptualizes this dynamic, with a focus on lead firms within the global value chain framework that combines elements of conceptual interventions on state capitalism to offer the LFfB framework. The framework is deployed to analyse primary data from fashion design firms in two key hubs, Lagos and Nairobi. Findings demonstrate the significance of synergies between key areas of LFfB operation (research and development, inputs, distribution, sales and product design) and state capitalism’s support for production, trade and finance, as well as positive returns through international cultural recognition and national profile building. Nevertheless, the paper contends that challenges of state (in)action can undermine sustainable practices, competitiveness as well as multi-scalar internationalization.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"60 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139870711","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Fashion designers as lead firms from below: Creative economy, state capitalism and internationalization in Lagos and Nairobi","authors":"Eka Ikpe, Lauren England, R. Comunian","doi":"10.1177/10245294231222658","DOIUrl":"https://doi.org/10.1177/10245294231222658","url":null,"abstract":"African fashion reveals intersections between upgrading, manufacturing and internationalization alongside expanding cultural, political and social influence. Yet global value chain analyses of the industry reinforce a core-periphery dynamic with the location of lead firms in the Global North (GN) and actors lower down the value chain in the Global South (GS). This disappears GS actors in the creative economy, including fashion designers, who innovate, design and cultivate the brand followership associated with lead firms. This paper analyzes fashion designers in Lagos and Nairobi as economic, cultural and social value creators and therein lead firms from below (LFfB). It conceptualizes this dynamic, with a focus on lead firms within the global value chain framework that combines elements of conceptual interventions on state capitalism to offer the LFfB framework. The framework is deployed to analyse primary data from fashion design firms in two key hubs, Lagos and Nairobi. Findings demonstrate the significance of synergies between key areas of LFfB operation (research and development, inputs, distribution, sales and product design) and state capitalism’s support for production, trade and finance, as well as positive returns through international cultural recognition and national profile building. Nevertheless, the paper contends that challenges of state (in)action can undermine sustainable practices, competitiveness as well as multi-scalar internationalization.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"67 11","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-02-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139810958","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The role of the state in shaping the internationalization of firms in the twenty-first century","authors":"J. Ricz, Dorottya Sallai, Magdolna Sass","doi":"10.1177/10245294241229359","DOIUrl":"https://doi.org/10.1177/10245294241229359","url":null,"abstract":"The year 2020, with the outbreak of the COVID-19 pandemic and the subsequent crises, highlighted the significance of state intervention in shaping firm competitiveness. However, unprecedented government support for businesses has left us puzzled about the state’s role in firm internationalization, especially in emerging markets and the Global South, where government involvement has been accompanied by democratic backsliding and rising authoritarianism. Our Special Issue moves the current debate forward by exploring how the state’s changing role affects firm internationalization. The objective of this editorial is twofold: stimulating theory development by scrutinizing state intervention in emerging markets in recent decades and introducing the Special Issue articles. Contributions investigate how governments support the internationalization of their domestic businesses by focusing on firms’ institutional embeddedness and the impact of institutions as both resources and constraints to their internationalization. By linking the discourse on state capitalism with business internationalization, our empirical studies advance research on political economy and the state’s role in innovative ways, reflecting on recent geopolitical developments. Our introductory article situates the Special Issue papers in the state capitalism and firm internationalization literatures and discusses their implications for future research.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"14 11","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139595621","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The European Investor State: Its characteristics, genesis, and effects","authors":"Ulrike Lepont, Matthias Thiemann","doi":"10.1177/10245294231215481","DOIUrl":"https://doi.org/10.1177/10245294231215481","url":null,"abstract":"In the wake of financial, sovereign debt and health crises, public interventions in the European economy have taken on a new level of breadth, marking a reentry in force of the state in economic life that goes beyond the regulatory state. Yet, these interventions do not follow the old Keynesian interventions neither, being shaped through a particular logic of investment that link public and private actors in a particular configuration. The introduction to this special issue lays out this configuration for the case of the EU and its Member States through the concept of “European Investor state.” By this concept, we refer to the redefinition of the role of European states in the economy as an “investor,” in reference to private investment funds, which the state seeks both to imitate and to enroll. The paper embeds this redefinition of state intervention in the context of the 2010s in Europe, characterized by worries about “secular stagnation” and growing concern about an “investment gap,” interpreted as the failure of financial markets to invest in productive sectors, especially when risky. The budgetary constraints and the ideological outlook then shaped the specific financial and off-balanced sheet tools of the investor state. Finally, the paper explores the implications of the Covid-crisis on this intervention model. It concludes that despite major changes in fiscal policy at the EU level, this approach is likely to persist, because of the lasting interpretation in terms of “investment gap,” which only public-private collaborations are seen to be able to fill.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"48 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139602142","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Insurance and the contradictions of the climate-development-finance nexus: The case of the African Risk Capacity","authors":"James Chamberlain, Nick Bernards","doi":"10.1177/10245294241226985","DOIUrl":"https://doi.org/10.1177/10245294241226985","url":null,"abstract":"This article considers recent efforts at extending the scope of green finance into insurance schemes to manage the losses associated with the climate crisis in vulnerable countries. Focusing on the case of the African Risk Capacity (ARC), the article argues that these efforts are particularly revealing of the contradictions of what we term the ‘climate-development-finance nexus’ – growing efforts to bridge climate and development activities, with an emphasis on mobilizing green finance in order to do so. In particular, the case of ARC shows how the promotion of insurance should be read as a set of ultimately failed efforts to navigate relations of international financial subordination. Approaching the ARC in this way helps us to understand why the latter has fallen into a shape at odds with the intentions of either member states or the donors who have supported it, the latter illustrated primarily by considering the role of the British Department for International Development. This case, then, is revealing of how green finance more generally is strongly shaped by statecraft within the constraints of existing patterns of financial subordination.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"57 23","pages":""},"PeriodicalIF":0.0,"publicationDate":"2024-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139533684","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The limits of derisking. (Un)conditionality in the European green transformation","authors":"Franziska Cooiman","doi":"10.1177/10245294231224137","DOIUrl":"https://doi.org/10.1177/10245294231224137","url":null,"abstract":"The ecological transformation of the economy is frequently approached politically with market-based policy, in particular derisking, which attempts to steer private financial actors into ecological and climate sustainability by taking on risks. To understand the effects of such approaches, I point to the relational and concrete dynamics that unfold between states and finance. Conceptually, I propose analyzing the investment chains that surround these programs, and the conditionalities that constitute its relations, which I read as manifestations of infrastructural power. I argue that conditionalities are the qualifier of the transformative potential of market-based policy programs. The proposed “micro-financial” analysis allows to unpack the inherent limitations of derisking-based governance approaches. These approaches come with a dependence on financial intermediaries, which results in weak conditionality and enforcement. Concretely, I analyze how under BlueInvest, a pilot within the European Green Deal (EGD), the European Commission (EC) mandates the European Investment Fund (EIF) to harness venture capital (VC) funds in order to foster the blue economy. I show how, as a consequence of investors’ intermediary position in derisking-based operations and the EIF’s profitability orientation, policymakers come to depend on venture capitalists, hindering strong and effective conditionality and hardwiring limited sustainability effects into the investment chain.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"26 4","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139155791","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Temporary agency employment: A supplement to regular jobs – under certain circumstances","authors":"Uwe Neumann","doi":"10.1177/10245294231221884","DOIUrl":"https://doi.org/10.1177/10245294231221884","url":null,"abstract":"In countries with strict employment protection legislation, firms may seek to replace regular by atypical jobs in order to cut wages or to become more flexible. In Germany, the number of unprotected temporary jobs is comparatively low. During the past decades, temporary agency employment, however, has increased considerably and the share of agency workers is now above the EU average. Using German establishment data, the analysis draws on longitudinal (generalized method of moments) and cross-sectional (matching and difference in differences) methods to evaluate whether agency workers replaced or supplemented regular workers during and after the Great Recession of 2008/2009. The study finds that hiring (more) agency workers made it possible for user firms among Germany’s core manufacturing industries to employ a larger number of regular workers at the same time. In specific sectors and regions, temp agencies therefore provided an alternative to government-sponsored instruments such as short-time work schemes. Obviously, from the view of workers, many disadvantages remain, even more so as it is rare for temp spells to offer a stepping stone into regular employment.","PeriodicalId":207354,"journal":{"name":"Competition & Change","volume":"13 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2023-12-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138970741","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}