Industrial Transition New Global-Local Patterns of Production, Work, and Innovation Edited by Martina Fromhold-Eisebith and Martina Fuchs IndustrIal transItIon The Dynamics of Economic Space series Editor: neil reid, university of toledo, usa the IGu Commission on ‘the dynamics of Economic space’ aims to play a leading international role in the development, promulgation and dissemination of new ideas in economic geography. It has as its goal the development of a strong analytical perspective on the processes, problems and policies associated with the dynamics of local and regional economies as they are incorporated into the globalizing world economy. In recognition of the increasing complexity of the world economy, the Commission’s interests include: industrial production; business, professional and financial services, and the broader service economy including e-business; corporations, corporate power, enterprise and entrepreneurship; the changing world of work and intensifying economic interconnectedness. Other books in this series local Food systems in old Industrial regions Edited by Neil Reid, Jay D. Gatrell and Paula S. Ross IsBn 978-1-4094-3221-0 Missing links in labour Geography Edited by Ann Cecilie Bergene, Sylvi B. Endresen and Hege Merete Knutsen IsBn 978-0-7546-7798-7 Globalising Worlds and New Economic Configurations Edited by Christine Tamásy and Mike Taylor IsBn 978-0-7546-7377-4 agri-Food Commodity Chains and Globalising networks Edited by Christina Stringer and Richard Le Heron IsBn 978-0-7546-7336-1 Services and Economic Development in the Asia-Pacific Edited by Peter W. Daniels and James W. Harrington IsBn 978-0-7546-4859-8 Knowledge-Based services, Internationalization and regional development Edited by James W. Harrington and Peter Daniels IsBn 978-0-7546-4897-0 Industrial transition new Global-local Patterns of Production, Work, and Innovation Edited by MartIna FroMhold-EIsEBIth RWTH Aachen University, Germany and MartIna FuChs University of Cologne, Germany © Martina Fromhold-Eisebith and Martina Fuchs 2012 all rights reserved. no part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the prior permission of the publisher. Martina Fromhold-Eisebith and Martina Fuchs have asserted their right under the Copyright, Designs and Patents Act, 1988, to be identified as the editors of this work. Published by ashgate Publishing limited ashgate Publishing Company Wey Court East suite 420 union road 101 Cherry street Farnham Burlington surrey, Gu9 7Pt Vt 05401-4405 England usa www.ashgate.com British Library Cataloguing in Publication Data Industrial transition: new Global-local Patterns of Production, Work, and Innovation. – (the dynamics of Economic space) 1. Industrial organization. 2. International division of labor. 3. Economic geography. 4. space in economics. I. series II. Fromhold-Eisebith, Martina. III. Fuchs, Martina. 338.6–dc23 Library of Congress Cataloging-in-Publication Data Fromhold-Eisebith, Martina. Industrial transition: new Global-local Patterns of Production, Work, and Innovation/ by Martina Fromhold-Eisebith and Martina Fuchs. p. cm. – (the dynamics of Economic space) Includes bibliographical references and index. 1. Industrial organization – Case studies. 2. technological innovations – Case studies. I. Fuchs, Martina. II. title. hd31.F766 2012 338.6–dc23 2012003878 IsBn 9781409431213 (hbk) IsBn 9781409431220 (ebk) IV Contents List of Figures vii List of Tables ix List of Contributors xi Preface xiii 1 Changing Global-Local Dynamics of Economic Development? Coining the New Conceptual Framework of ‘Industrial Transition’ 1 Martina Fromhold-Eisebith and Martina Fuchs 2 Industry, Enterprise, Economic Growth and Recession: Forgotten Issues in Economic Geography 17 Michael Taylor 3 The Transition of the Automotive Industry as a Catalyst for Cross-Border Networking? The Case of the Greater Region SaarLorLux 29 Christoph K. Hahn 4 Industrial Restructuring by Financial Investors? Buy-and-Build Strategies in the German Automotive Supplier Industry from 2000 to 2010 49 Christoph Scheuplein 5 Flexible Specialization – Thirty Years after the ‘Second Industrial Divide’: Lessons from the German Mechanical Engineering Industry in the Crisis 2008 to 2010 65 Martina Fuchs and Hanno Kempermann 6 Organisation and Representation of Temporary Workers 81 Dorit Meyer 7 Industry Transition and Knowledge-Based Sectors: Changing Economic Governance and Institutional Arrangements in the Scottish Life Sciences 99 Kean Birch and Andrew Cumbers vi Industrial Transition 8 Strategic Coupling between Multinational Subsidiaries and KIBS as a Mode of Regional Industrial Transition 117 Leo van Grunsven, Wouter Jacobs, Oedzge Atzema, Ton van Rietbergen 9 Regional Growth Dynamics: Intra-Firm Adjustment vs. Organizational Ecology 135 Harald Bathelt and Andrew M. Munro 10 Transnational Entrepreneurs and the Global Shift of Production: The Example of Diamond Manufacturing 155 Sebastian Henn 11 China as a Western Musical Instrument Producer: Case Study of the Piano Industry 173 Shiuh-Shen Chien, Jici Wang, Yu Ho, Mingbo Ma 12 Spatial and Organisational Transition of an East Asian High-Growth Region: The Electronics Industry in the Greater Pearl River Delta 189 Daniel Schiller 13 Economic Competitiveness, ‘Glurbanisation’ and ‘Soft’ Spatial Interventions: Insights from Four Australasian Cities 213 Steffen Wetzstein 14 Conclusion: Towards a Refined Conceptualization of the Industrial Transition Approach in a Global-Local Context 233 Martina Fuchs and Martina Fromhold-Eisebith Index 243 List of Figures 3.1 Locations of global top ten automotive suppliers within the Greater Region SaarLorLux 41 7.1 The Scottish life sciences 104 8.1 Conceptual relations between MNEs and KIBS in the host environment 129 9.1 Regional ecologies of technological change and growth 141 10.1 Number of Belgian diamond workers versus exports of polished diamond from India in US-Dollars (1966–2006) 168 11.1 China’s piano production in the world since the 1980s 174 12.1 Modes of cross-border production organisation in HK and the PRD 200 13.1 Australasian case study sites 216 This page has been left blank intentionally List of Tables 3.1 Organizational characteristics of the surveyed enterprises and cooperation within the Greater Region SaarLorLux 35 4.1 Ranking of portfolio companies of the automotive supplier industry in the supply pyramid in Germany in the years 2000 to 2010 57 9.1 Local supplier linkages of firms in Canada’s Technology Triangle, 2007–2009 146 9.2 Local and international sales of firms in Canada’s Technology Triangle, 2007–2009 146 11.1 Piano production by selected countries in selected years (unit: thousand pianos) 177 11.2 Foreign-background pianos in China by capital source and by location province 180 11.3 Piano production and sales in China from 2006 to 2010 (unit: thousand) 183 12.1 General characteristics of the surveyed firms in HK and the PRD 195 12.2 Sales profiles of electronics firms in HK and the PRD according to age of the firm 197 12.3 Share of industrial gross value added according to ownership 200 12.4 Spatial sales patterns of firms in the PRD according to ownership 202 12.5 HK connections of electronics firms in the PRD according to age of the firm 203 12.6 Main location of business activities by electronics firms in HK and the PRD 204 12.7 Governance of relation to the main supplier in the PRD by firms in HK and the PRD 206