By Ijaz Nabi, Manjula Luthria
'Building aggressive businesses: Incentives and features' explains how agencies turn into aggressive in language appropriate for either technical and non-technical readers. an easy analytical framework integrates components similar to pageant coverage, company governance, international direct funding, innovation readiness, highbrow estate rights, e-commerce and provide chain administration. those 'behind-the-border' components are pivotal to shaping the funding weather in any nation and embellishing the advantages of exchange liberalization. every one of those topics is mentioned intimately with a spotlight on coverage layout and foreign most sensible perform in implementation.
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Extra resources for Building competitive firms: incentives and capabilities
Sample text
In the Netherlands four firms account for nearly 70 percent. Access to new technologies thus involves access to the knowledge and skills possessed by these technological leaders. These leaders are increasingly unwilling to part with their newest and most valuable technologies without a substantial equity stake. Thus, FDI becomes the most important-often the only available-mode of obtaining leading-edge technologies. This is significant for the industrializing economies of East Asia, which cannot now sustain competitiveness on the basis of low wages and simple technologies.
Export processing zones and industrial estates have to meet increasingly stringent demands of facilities and services. Some developing countries have been able to develop such infrastructure and services, but many have not. In many activities competitiveness depends on the proximity of supplier networks and clusters-efficient suppliers and service firms able to meet the needs of just-in-time production. Multinational corporations often draw follow-on investments by their established supplier and service firms (if other conditions are favorable), but countries with dynamic local firms (including small firms) have an advantage in attracting more FDI and greater local linkages.
Because skills are highly correlated with R&D, the results are not shown in the same regression; however, skills are statistically insignificant. Per capita income has a positive relationship with exports but is not shown because it is correlated with the other independent variables. In general, the regressions have greater explanatory power for developmg than for industrial countries. FDI plays a more important role in developing than industrial countries, while R&D shows higher significance in industrial than developing countries.