Philip R. Tomlinson

Economic Governance and the Evolution of Industrial Districts Under Globalization: The Case of Two Mature European Industrial Districts

For many mature European industrial districts, the present decade has been one of trying (and often failing) to meet the difficult challenges posed by the rising tide of globalization. The future of these districts in the new global economy has become a key issue for regional and local development policy, and, in this respect, it has sparked a renewed interest in economic governance. Economic governance is important in that it underpins a regions long-term economic development path. This article is a contribution to the study of the economic governance of industrial districts and the related policy debate. The article does so by specifically exploring the economic governance issue by considering the experiences and challenges currently facing two mature European industrial districts in the global economy.

‘May the ovens never grow cold’: regional resilience and industrial policy in the North Staffordshire ceramics industrial district – with lessons from Sassoulo and Castellon

In the aftermath of the recent global recession, the concept of regional resilience is becoming increasingly important in regional policy circles. This paper seeks to add to the debate by exploring resilience and recent policy initiatives in the context of the North Staffordshire ceramics district. A key issue here has been the economic governance of the district, which has had a significant impact upon its current trajectory. Drawing upon a series of interviews with local actors, we examine the districts ‘adaptive capacity’ to move onto a new trajectory. In particular, we note the importance of district firms developing wider networking opportunities, particularly external ties; insights here are garnered from the relatively successful links between Castellon and Sassoulo ceramics districts.

Advertising and labour supply: why do Americans work such long hours?

This paper advances the view that the intensity of creation of wants through advertising and marketing might be an influence on decisions made by Americans about how much time they should devote to paid work and how much time to leisure. In exploring this argument, we employ vector auto‐regression analysis to estimate long‐run supply schedules for US workers in the twentieth century. We find that advertising expenditure is significant in determining US hours of work, thus providing support for the hypothesis that preferences over work–leisure choices are malleable and are manipulated by the marketing effort.

The Real Effects of Transnational Activity upon Investment and Labour Demand within Japan's Machinery Industries

This paper attempts to estimate the real effects of transnational activity upon both investment and labour demand, within each of the five industries that comprise Japans domestic machinery sector. The study uses a standard model of investment and labour demand, which is augmented to include foreign wages. It is argued that this approach is the most suitable for capturing the real effects of transnational activity, since foreign wages indicate the attractiveness of alternative sites for investment, production and employment. A simultaneous equations estimator is employed and, for each industry, there is evidence that both the behaviour of investment and labour demand are sensitive to foreign wage conditions. The results indicate the extent to which transnational activity has had a real effect upon Japans domestic machinery sector.

The demand for UK beer: Estimates of the long-run on- and off-trade beer price elasticities

Over the last 30 years, UK beer sales have been falling while the market itself has experienced a dynamic shift from on-trade to off-trade sales. This article provides estimates of the long-run price, cross price and income elasticities, for both on- and off-trade beer consumption. The results shed light on the changing UK beer market, while also having different implications for imposing beer excise duties and the debate on a minimum price per unit for alcohol.

“Strategic Failure” in the Financial Sector: A Policy View

Abstract Analysis of the recent financial crisis has tended to focus upon “market” and corresponding “regulatory” failures. While this provides important insights, it may neglect deeper issues at the root of recent problems. In this paper, we take a broader perspective, drawing upon the stategic choice approach to the theory of the firm (Cowling and Sugden, 1998, 1999). We present a governance-based analysis which emphasises the process of engaging interested “publics” in corporate decision-making processes. We illustrate our arguments with respect to three UK cases – Northern Rock, Bradford and Bingley, and HBOS banks – which each required major interventions by the UK Government and whose recent history reveals significant changes in ownership, governance and corporate strategy. We argue that the current period of reform for these former building societies represents an ideal opportunity to address serious concerns over governance within the financial sector, and we propose a revised mutual solution as one appropriate way forward.

The Japanese model in retrospective : industrial strategies, corporate Japan and the 'hollowing out' of Japanese industry

This article provides a retrospective look at the Japanese model of industrial development. This model combined an institutional approach to production based around the Japanese Firm (Aokis, J-mode) and strategic state intervention in industry by the Japanese Ministry of International Trade and Industry (MITI). For a long period, the alignment of state and corporate interests appeared to match the wider public interest as the Japanese economy prospered. However, since the early 1990s, the global ambitions of the corporate sector have contributed to a significant ‘hollowing out’ of Japans industrial base. As the world today looks for a new direction in economic management, we suggest the Japanese model provides policy-makers with a salutary lesson in tying the wider public interest with those of the corporate sector.

Global imbalances and modern capitalism: a structural approach to understanding the present economic crisis

The world economy is riven by very large imbalances, with the U.S. economy exhibiting high levels of consumption but low savings ratios and a high current account deficit while China provides the mirror opposite. In this paper, we explore the structural causes of these imbalances that underpin the current global economic crisis. A key focus here is on the corporate sector in the United States, which has been instrumental in creating unsustainable consumptionist tendencies through the use of excessive advertising strategies. In China, changing demographics and market reforms have led to a significant rise in precautionary saving. Correcting the current imbalances requires recognizing the underlying characteristics of both modern and nonmodern capitalist economies, with appropriate responses being structural in nature in addition to any macroeconomic adjustments.

Multiple Facilities, Strategic Splitting and Vertical Structures: Stability, Growth and Distribution Reconsidered

This paper explores comparative cost structures when large firms split operations between separate production facilities in a way that puts pressure on wage rates and worker effort levels: one example of a divide and rule strategy. It differentiates horizontal structures of this kind based on requirements for stability in a context of growing aggregate production vis-a-vis wages and effort. The analysis is formulated within a more general perspective that also considers vertical structures. It considers the implications for contemporary policy debates on desirable industrial forms, and concludes with a discussion of factors that might limit the scope for policies intended to promote industrial stability and redistribution via existing production networks.

The role of cooperation in a creative industry: the case of UK studio pottery

In this paper, we explore the role that cooperation plays in a small‐scale creative sector, namely that of UK studio pottery. Drawing upon data from a survey of studio potters, we examine the extent to which these artists cooperate with others in their production activities and then assess the impact of this cooperation on their sales performance. While our results suggest that studio potters can and do benefit from establishing stronger cooperative ties, the nurturing of such ties is not always easy and significant barriers to cooperation exist. Overcoming such barriers depends very much upon the nature of dyadic relations between actors, which is something we suggest reflects the governance structure of the network.