Cynthia A. Kroll

The New Wave of Outsourcing

This paper assesses the potential impact of the ongoing phenomenon of services offshoring (frequently referred to as outsourcing, in the media) by analyzing the occupational structure of the US labor market. It develops a list of occupational attributes of offshoreability, points out the institutional characteristics, wage-differences and other features of the recipient economies, such as India, and compares and contrasts manufacturing and services offshoring. The paper suggests that 14 million jobs or 11% of the employed labor force is vulnerable and at-risk to offshoring. The authors also look at the potential impact of offshoring on real estate and on regional/metropolitan areas in the US, and speculate about future economic-adjustment scenarios.

Innovation in the Green Economy: An Extension of the Regional Innovation System Model?:

Policy makers increasingly look to green innovation as a source of job creation. Using the case of California, we argue that green innovation complicates traditional models of innovation and its role in economic development. This study uses secondary source data and a survey of 650 green and traditional businesses to define the green economy, identify innovation of products and services, and link innovation to sectoral and regional growth. The authors find that the type of innovation and its role varies widely by sector. The most environmentally challenged firms are among the most likely to innovate new processes, whereas new green innovative companies are more likely to respond to local and regional markets. Innovation does not necessarily foster growth. It is a boost to traditional firms, but emerging green firms may need additional tools and the support of local networks to transform new ideas and products to new markets.

Competitiveness and an Emerging Sector: The Russian Software Industry and its Global Linkages

This paper analyzes the Russian software industry in the context of trade in information technology services. We assess Russias underlying sources of competitive edge in software, such as its scientific establishments, education system, diaspora and low costs, and identify the institutional impediments to growth. A survey reveals that foreign outsourcing contracts, a high value‐added niche and high education levels characterize Russias small, privately held software firms. A comparison with the Indian software industry underscores the structural differences in outsourcing relationships developed by the two countries and emphasizes that national advantages are complex amalgamations of many factors and need to be overtly marketed. Beyond the resources that give comparative and competitive advantage to a transitioning economy, a critical role is played by powerful industry organizations and by non‐market state institutions that can level the economic field and inject credibility into market structures.

The Dot-Com Boom and Bust in the Context of Regional and Sectoral Changes

This paper examines the effects of the dot-com boom and bust on firm survival, migration and growth in other sectors. Dot-com expansion revived a slowing central city economy but also raised issues regarding displacement of manufacturing, distribution, social services and other non-profits from San Franciscos “South of Market”. This study uses the National Establishment Time Series (NETS) database to examine how the growth of dot-com businesses affected San Francisco and surrounding counties. We find that start-ups were central to San Franciscos job growth. Relocations also were a significant aspect of job change. Dot-com growth was positively associated with propensity for pre-boom information and professional services establishments and for non-high-tech manufacturing or distribution establishments to move, while arts, social services and non-profits remained in the city.