THE EU’S SHRINKING SHARE IN GLOBAL MANUFACTURING: A VALUE CHAIN DECOMPOSITION ANALYSIS

2020 ◽  
Vol 252 ◽  
pp. R19-R32
Author(s):  
Robert Marschinski ◽  
David Martínez-Turégano
Keyword(s):  
Value Chain ◽  
Decomposition Analysis ◽  
Value Added ◽  
Value Chains ◽  
High Tech ◽  
Global Manufacturing ◽  
A Value ◽  
Industry Policy ◽  
The Eu

The EU´s falling share in global manufacturing has fuelled concerns about an overall loss of EU competitiveness, in particular vis-à-vis China. We analyse the empirical evidence underlying these concerns by applying a newly developed decomposition technique to global input-output data spanning the years 2000 to 2014. Our results confirm the diminishing role of the EU in manufacturing value chains, but also show that this is mostly, by nearly 75 per cent, a consequence of the geographical and sectoral reallocation of global demand, reflecting the lower economic growth in the EU relative to the rest of the world. Still, the other almost 25 per cent of the EU’s loss of global share is explained by its lower participation in manufacturing value chains, which confirms a downturn in EU competitiveness. By extending the analysis to individual manufacturing activities we show that this general trend is more pronounced for low-tech (e.g. textiles) than high-tech sectors, with pharmaceuticals emerging as the most resilient EU industry. Policy concerns appear to be most warranted for electronics, a key sector for which the EU´s global share fell even more than for overall manufacturing, without evidence that EU value added from upstream service inputs could significantly mitigate this trend.

scholarly journals Socioeconomic Impact of Genome Editing on Agricultural Value Chains: The Case of Fungal-Resistant and Coeliac-Safe Wheat

2019 ◽  
Vol 11 (22) ◽  
pp. 6421 ◽  
Author(s):  
Oliver Maaß ◽  
Nicola Consmüller ◽  
Hella Kehlenbeck
Keyword(s):  
Genome Editing ◽  
Value Chain ◽  
Qualitative Content Analysis ◽  
Value Added ◽  
Socioeconomic Impact ◽  
Value Chains ◽  
Value Chain Analysis ◽  
A Value ◽  
Food Retailers ◽  
Chain Analysis

Genome editing (GE) is gaining increasing importance in plant breeding, since it provides opportunities to develop improved crops with high precision and speed. However, little is known about the socioeconomic impact of genome editing on agricultural value chains. This qualitative study analyzes how genome-edited crops could affect agriculture value chains. Based on the hypothetical case of producing and processing fungal-resistant and coeliac-safe wheat in Germany, we conducted semi-structured, in-depth interviews with associations and companies operating in the value chains of wheat. A value chain analysis and qualitative content analysis were combined to assess the costs and benefits of the crops studied along the value chains of wheat. The results show that the use of fungal-resistant and coeliac-safe wheat can provide benefits at each step of the value chains. Fungal-resistant wheat benefits actors by reducing the problems and costs resulting from fungal-diseases and mycotoxins. Coeliac-safe wheat benefits actors by producing high value-added products, which can be safely consumed by patients suffering from coeliac disease. However, the results also show that low acceptance of GE by society and food retailers poses a significant barrier for the use of genome-edited crops in agricultural value chains.

scholarly journals The Specialties of the Pharmaceutical Value Chains in Hungary

2019 ◽  
Vol 69 (S2) ◽  
pp. 41-72
Author(s):  
Katalin Antalóczy ◽  
Tamás Gáspár ◽  
Magdolna Sass
Keyword(s):  
Pharmaceutical Industry ◽  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Value Chain Analysis ◽  
Economic Sectors ◽  
Output Analysis ◽  
A Value ◽  
Chain Analysis ◽  
Backward And Forward Linkages

The length, the composition, the quality and the characteristics of value chains essentially determine the corporate as well as the macroeconomic performance of the economic sectors and industries. Hungary has a strong tradition in the pharmaceutical industry but its dynamising impact seems to be limited on the economy. The aim of this paper is to detect and reveal the specialties of the Hungarian pharmaceutical industry both in space and time by a value chain analysis. Our method is partly quantitative, we use an input-output analysis; and partly qualitative, relying on interviews with the representatives of pharmaceutical companies. We found that the Hungarian pharma value chain is really special, having relatively short backward and forward linkages with mainly indirect value-added contribution as well as high import content of exports. However, our company interviews revealed the fundamental differences between original and generic value chains – i.e. again a pharma industry-specific distinction. Having relatively little original and more substantial generic production in Hungary explains much of the value chain specialties, which leaves its mark on the limited impact of the industry on the national economy.

Innovation and Competitiveness in Mining Value Chains in Latin America

2021 ◽  
Author(s):  
Silvia Nenci ◽  
Francesco Quatraro
Keyword(s):  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Global Value Chain ◽  
Mining Sector ◽  
Scientific Publications ◽  
Related Services ◽  
The Past ◽  
Trade In Value Added

This paper provides an international overview of the mining global value chain (GVC) and its most recent transformations and trends, focusing on Argentina, Brazil, and Peru. The study uses international trade data and patent and scientific publications data. By using trade in value added, we first investigate the role of those countries in the international mining trade, and their specialization, participation, and position in the mining GVC for the period 2005-15. The analysis is carried out for both mining products and mining-related services, and also looks at the contribution of services to mining exports. Second, we analyze the evolution of innovative activity and the direction of technological change in the mining sector over the past 40 years by looking at patent applications, both internationally and with attention to the three target countries. We also provide an overview of, and some insights on, knowledge flow in the mining sector based on scientific production.

scholarly journals Value chain system in agriculture: role of SPA

2020 ◽  
pp. 8
Author(s):  
Eugenia Karamouzi ◽  
Eleni Tsironi ◽  
Panopoulos Panagiotis
Keyword(s):  
Sustainable Development ◽  
Developing Countries ◽  
Economic Development ◽  
Value Chain ◽  
Precision Agriculture ◽  
Service Providers ◽  
Value Chains ◽  
A Value ◽  
Private And Public

A value chain consists of the actors (private and public, including service providers) and the sequence of value-adding activities involved in bringing a product from production to the end-consumer. In agriculture they can be thought of as a “farm-to-fork” set of inputs, processes and flows. Agricultural businesses in developing countries offer an opportunity for market based economic development that creates benefits throughout value chains. Sustainable development in agricultural value chains of emerging economies could be of high relevance of Sustainable Precision Agriculture.

scholarly journals European Union Building Strategic Value Chains: the Case of Battery Industry

2021 ◽  
Vol 65 (12) ◽  
pp. 109-117
Author(s):  
A. Nevskaya
Keyword(s):  
Diffusion Of Innovation ◽  
Industrial Policy ◽  
Value Chain ◽  
Value Added ◽  
Value Chains ◽  
Extensive Experience ◽  
Industrial Sectors ◽  
Strategic Value ◽  
Battery Industry ◽  
The Eu

The article analyzes the EU’s experience in transformation of its industrial policy, which is designed to help the EU to overcome the gap with competitors in technology and innovation, as well as to set new standards for the functioning of industrial sectors in the conditions of greening and digitalization. The basic principles of building the strategic value chains are considered. The method of lifecycle analysis is used, as well as the theoretical basis of research on economic policy in new industries. Among the main principles on which support measures for new industries are based, we highlight the desire to ensure the legal and regulatory dominance of the EU, the desire for maximum transparency of business processes, the emphasis on the complex systemic effect for the entire European economy. The analysis of new projects implemented in the EU is conducted using the empirical base from the battery industry. The analysis includes the new instruments of industrial policy – Important Projects of the Common European Interest and others. An attempt has been made to assess the effectiveness of these mechanisms. It has been shown that the value-added chain of automotive batteries currently being built in the EU is not fully European, and dependence on suppliers of raw materials and services from third countries persists. The EU production spots are concentrated mostly in the middle parts of the value chain – like cell production and battery assembly. This configuration allows for regulatory opportunities in the industry, giving an advantage to European companies with extensive experience in measuring and reducing the climate footprint of their products. There are prerequisites for the involvement of a large number of small business players in the new chains and an increased diffusion of innovation. In addition, the EU is successfully addressing the challenge of demonstrating the potential of its Green Deal and increasing consumer confidence in new products.

The Role of International Standards in the Development of Global Value Chains

Upravlenie ◽  
10.12737/8792 ◽  
2015 ◽  
Vol 3 (1) ◽  
pp. 80-87
Author(s):  
Зуев ◽  
V. Zuev ◽  
Островская ◽  
Yelyena Ostrovskaya ◽  
Мануйлов ◽  
...  
Keyword(s):  
Value Chain ◽  
Small Businesses ◽  
Small Firms ◽  
Value Added ◽  
Global Value Chains ◽  
International Standards ◽  
Value Chains ◽  
Positive Effects ◽  
International Standardization

This paper is devoted to the influence of standardization on emergence and development of global value chains (GVC). Nowadays trade in value added is the subject for heated debates. However, the role of standardization (in particular, international standardization) is highly underestimated. The study examines the history of the development of different types of standards, comparing different approaches to modeling the processes of standardization and develops recommendations for the economic policy of Russia on the basis of its present position in the GVC. At the moment, we can say unambiguously that standardization leads to the shift of firms from upstream stages of production to the field of design and marketing, where a greater chance to realize competitive advantages exists (downstream stages). For Russia, it means continuous improvement in the following areas: the development of large and small businesses in sectors that are not related to the energy, encouraging companies to establish supply chains and value chains, customer orientated businesses. In addition to the positive effects of standardization, the article also reviews some negative shocks. They occur when the standards are being introduced to small firms, or when accepted standards are not harmonized in accordance with international standards, or when there are no resources for modernization within the global value chain, or when there are no opportunities to move into new markets where standardization is lower, or when different standards are set to reach controversial objectives. Nevertheless, in all these cases, there are certain conditions which implementation will make standardization the most effective. These include, for example, a balance between the amount of the factor used in the production and the complexity of the technology. This condition is explained here both mathematically and by the example of the Chinese national program for certification of organic products. Thus, the importance of international standardization for the development of global value chains cannot be overstated, despite possible negative effects. That is why Russia should be actively involved in all of these processes in order to stimulate economic growth.

scholarly journals Global Value Chains of COVID-19 Materials: A Weighted Directed Network Analysis

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3202
Author(s):  
Georgios Angelidis ◽  
Charalambos Bratsas ◽  
Georgios Makris ◽  
Evangelos Ioannidis ◽  
Nikos C. Varsakelis ◽  
...  
Keyword(s):  
Value Chain ◽  
Trade Flow ◽  
Value Added ◽  
Value Chains ◽  
Directed Network ◽  
Protective Equipment ◽  
Global Value Chain ◽  
A Value ◽  
The World ◽  
The Usa

The COVID-19 pandemic caused a boom in demand for personal protective equipment, or so-called “COVID-19 goods”, around the world. We investigate three key sectoral global value chain networks, namely, “chemicals”, “rubber and plastics”, and “textiles”, involved in the production of these goods. First, we identify the countries that export a higher value added share than import, resulting in a “value added surplus”. Then, we assess their value added flow diversification using entropy. Finally, we analyze their egonets in order to identify their key affiliates. The relevant networks were constructed from the World Input-Output Database. The empirical results reveal that the USA had the highest surplus in “chemicals”, Japan in “rubber and plastics”, and China in “textiles”. Concerning value added flows, the USA was highly diversified in “chemicals”, Germany in “rubber and plastics”, and Italy in “textiles”. From the analysis of egonets, we found that the USA was the key supplier in all sectoral networks under consideration. Our work provides meaningful conclusions about trade outperformance due to the fact of surplus, trade flow robustness due to the fact of diversification, and trade partnerships due to the egonets analysis.

The Service Sector in the Economy in Poland and European Union Countries

2015 ◽  
Vol 10 (3) ◽  
pp. 191-207
Author(s):  
Walentyna Kwiatkowska
Keyword(s):  
Service Sector ◽  
Value Added ◽  
Total Employment ◽  
Eu Countries ◽  
Gross Value Added ◽  
European Union Countries ◽  
Service Sectors ◽  
Sector Theory ◽  
The Eu

The role of the service sector in the economy is increasing in the process of socio-economic development. This tendency has been confirmed and explained by the three-sector theory formulated by A.G.B. Fisher, C. Clark, and J. Fourastie. The main goal of the paper is to show development tendencies in service sectors in Poland and the EU countries and assess them in view of the three-sector theory. The share of the service sector in the total employment and in the total gross value added in the years 2005-2013/2014 will be analysed together with two sub-sectors including market and non-market services. The research shows that the share of the service sector in total employment and total gross value added has been recently increasing in Poland as well as in other EU countries, but there is a gap in this process between Poland and the most developed EU countries. Moreover, in Poland, the role of market services has been recently increasing much faster than the role of non-market services. 

scholarly journals Circular Agreements—Exploring the Role of Agreements and Deals as a Political Tool for a Circular Economy

2021 ◽  
Author(s):  
Nils Johansson
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Policy Instruments ◽  
Alternative Form ◽  
Advantages And Disadvantages ◽  
Free Rider Problem ◽  
Political Governance ◽  
The Eu

AbstractA problem for a circular economy, embedded in its policies, tools, technologies and models, is that it is driven by the interests and needs of producers, rather than customers and users. This opinion paper focuses on an alternative form of governance—agreements, which thanks to their bargaining approach brings actors from across the value chain into the policy process. The purpose of this opinion paper is to uncover and analyse the potential of such agreements for a circular economy. Circular agreements aim at increasing the circulation of materials and are an emerging form of political governance within the EU. These agreements have different names, involve different actors and govern in different ways. However, circular agreements seem to work when other types of regulations fail to establish circulation. These agreements bring actors together and offer a platform for negotiating how advantages and disadvantages can be redistributed between actors in a way that is more suitable for a circular economy. However, circular agreements are dependent on other policy instruments to work and can generate a free-rider problem with uninvolved actors. The agreements may also become too detailed and long term, which leads to problem shifting and lock-ins, respectively.

INNOVATIVE TRANSFORMATIONS OF THE VALUE CHAIN OF PHARMACEUTICAL ENTERPRISES

2021 ◽  
Author(s):  
Катерина Копішинська ◽  
Катерина Зінченко
Keyword(s):  
Correlation Analysis ◽  
Linear Relationship ◽  
Value Creation ◽  
Value Chain ◽  
Value Chains ◽  
High Tech ◽  
Pharmaceutical Companies ◽  
Development Scenarios ◽  
Current State ◽  
Pharmaceutical Enterprises

The research is devoted to the substantiation of the necessity of innovative transformations of the value chain of pharmaceutical enterprises. The current state of the international pharmaceutical market and its development scenarios developed by the WTO were analyzed, taking into account the changes caused by the COVID-19 coronavirus pandemic. The typology of value chains is considered and their element-by-element characteristics are given. A new, modern model of interaction in the chain of value creation of products is proposed. The substantiation of efficiency of creation of such chains is given. Based on the correlation analysis, the presence of a linear relationship between the indicators of Pharmaceutical R&D Spend and Revenue was established. To maximize the effect of R&D costs, pharmaceutical companies are recommended to carry out innovative transformations of the value chain, involving external manufacturers of high-tech devices, applications, etc.

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