Advanced Public Procurement As Industrial Policy

This study is about the macroeconomic effects of positive externalities or industrial spillovers around advanced production. The case explored is the “technology di- dend” around Swedish aircraft industry, and in particular around the aircraft ma- facturer Saab, and the major industrial project of the JAS 39 Gripen multirole combat aircraft. The project is partly an updating of my book (in Swedish) Technology 1 Generator or a National Presige Project from 1995, but extends the analysis in s- eral directions. The study includes a chapter on spillovers from advanced production in an industrially developing economy, South Africa, that has acquired the JAS 39 Gripen for its Air Force. There is also a chapter in which the results for Sweden are discussed in the wider context of advanced public procurement in Europe. The text has been organized such that the main chapters have been written for academic readers. Two supplements include the technical details of data collection, mathematical models, and calculation methods. The first chapter is brief and focused on the results. It has the character of an extended executive summary. The second chapter summarizes the entire story; problems, results, and methods. This project would not have been possible without the generous support of a number of people. First of all great thanks go to all those people with crowded calendars in Swedish industrial firms that have set aside time to respond to my questions. Most of them have been listed at the end of the book.

This book examines the historic role of professional and demanding military customers in industrial development. Particular emphasis is paid to public procurement of military equipment as a catalyst for innovation; and the civilian commercialization of military technologies (from gunpowder and cannons to submarines, missiles and aircraft) is documented by many case illustrations that show how macro-level productivity advance has been generated. A complementary volume to Advancing Public Procurement as Industrial Policy (2010), which focused on the spillover effects of the Swedish combat aircraft, Gripen, in this book Gunnar Eliasson widens the perspective to cover product development across the Swedish defense industry, with an emphasis on regional economic development and macro-economics, inter alia through the involvement of Saab (aircraft) and Kockums (submarines) in partnership ventures in Australia, Norway and Brazil. The volume is organized into four parts. Part one examines the historical transformation of the Swedish economy over the past three centuries from agriculture and raw materials to an advanced industrial economy. Part two presents detailed case studies to illustrate the spillover effects of procurement projects and military-industrial partnerships. Part three explains the spillover phenomenon theoretically within a dynamic micro- to macro-economic perspective. Particular emphasis is placed on the empirical credibility of model-based economy-wide and dynamic cost-benefit calculations. The book concludes with a section on fostering industrial development through public procurement. The result is a book that will appeal to economists in the industrial economics and management fields; to technical, marketing and purchasing executives in business; and to policy makers in public procurement concerned with innovation and long-run industrial development.

This book presents effective strategies for developing countries to leverage their public sector demand for manufactured imports to promote industrialization, trade, and technology transfer. Technology transfer and its absorption is considered one of the most crucial and complicated challenges for developing countries, which are characterized by insufficient infrastructure, low technological intensity of the domestic capital stock, and high levels of manufactured imports. Which strategies and policy tools can governments employ to link demand with technology transfer, thereby enhancing absorption capacity and development in emerging economies? This book is part of a broader project launched by PGlobal Global Advisory and Training Services Ltd., in cooperation with Istanbul Commerce University (İTUCU) and the Scientific and Technological Research Council of Turkey (TÜBİTAK). The contributors to this book are policymakers, academicians, and experts who are working together to identify problems and develop policy recommendations for public procurement with respect to economic development. The book includes theoretical, empirical, and case study analyses of technology transfer mechanisms, public procurement policies, and countertrade and offset strategies. The lessons learned from these chapters will be of interest to both academics and policymakers concerned with technology transfer, industrial policy, and economic development.

This book presents effective strategies for developing countries to leverage their public sector demand for manufactured imports to promote industrialization, trade, and technology transfer. Technology transfer and its absorption is considered one of the most crucial and complicated challenges for developing countries, which are characterized by insufficient infrastructure, low technological intensity of the domestic capital stock, and high levels of manufactured imports. Which strategies and policy tools can governments employ to link demand with technology transfer, thereby enhancing absorption capacity and development in emerging economies? This book is part of a broader project launched by PGlobal Global Advisory and Training Services Ltd., in cooperation with Istanbul Commerce University (İTUCU) and the Scientific and Technological Research Council of Turkey (TÜBİTAK). The contributors to this book are policymakers, academicians, and experts who are working together to identify problems and develop policy recommendations for public procurement with respect to economic development. The book includes theoretical, empirical, and case study analyses of technology transfer mechanisms, public procurement policies, and countertrade and offset strategies. The lessons learned from these chapters will be of interest to both academics and policymakers concerned with technology transfer, industrial policy, and economic development.

As governments are major buyers of goods and services, foreign companies are keen to be able to participate in procurement opportunities on an equal footing with national firms. This has given rise to the inclusion of procurement disciplines in trade agreements and to internationally-agreed good regulatory practices in this important policy area. The contributions to this book examine how the dynamic mix of bilateral, regional, plurilateral and international norms on government procurement is reflected in purchasing practices at the national level and whether these are leading to convergence in policies and approaches. The countries studied span both advanced, high-income economies and emerging economies. Some are members of the WTO procurement agreement, others are not. Most WTO members have decided not to commit to binding international disciplines on procurement in trade agreements. This book explores whether there has been nonetheless internationalization of good procurement practices, and what current public purchasing processes suggest as regards the value added of signing on to binding rules of the game in this area. The approach taken in the volume is interdisciplinary. Contributors include economists, political scientists, legal scholars, and practitioners with a solid understanding of both the extant international disciplines and national government procurement policies. Each chapter assesses the current state of play as regards legislation and procurement practices; the degree to which industrial policy considerations feature in the relevant regulatory frameworks; the existence and use of domestic dispute resolution and review procedures that allow firms to contest the behavior of procuring entities; and the availability of data on procurement processes and outcomes.

This book maps the latest developments in public procurement of innovation policy in various contexts and analyzes the evolution and development of the various policy solutions in broader institutional contexts. In doing so, it addresses significant theoretical and practical gaps: On the one hand, there is an emerging interest in public procurement as a policy tool for spurring innovation; yet on the other hand, the current theory, with some notable exceptions, is guided and often constrained by historical applications, above all in the defence industries. By carefully examining the cases of eleven countries, the book points to the existence of much more nuanced public procurement on the innovation policy landscape than has been acknowledged in the academic and policy debates to date.

This book assesses developmental experience in different countries as well as British expansion following the industrial revolution from a developmental perspective. It explains why some nations are rich and others are poor, and discusses how manufacturing made economies flourish and spur economic development. It explains how today’s governments can design and implement industrial policy, and how they can determine economically strategic sectors to break out of Low and Middle Income Traps. Closely linked to global trade and (im)balances, industrialization was never an accident. Industrialization explains how some countries experience export-led growth and others import-led slowdowns. Many confuse industrialization with the construction of factory buildings rather than a capacity and skill building process through certain stages. Industrial policy helps countries advance through those stages. Explaining technical concepts in understandable terms, the book discusses the capacity and limits of the developmental state in industrialization and in general in economic development, demonstrating how picking-the-winner type focused industrial policy has worked in different countries. It also discusses how industrial policy and science, technology and innovation policies should be sequenced for best results.