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Foreign Manufacturing Investment in the United Kingdom and the Upgrading of Supplier Practices

Author

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  • Jonathan Potter
  • Barry Moore
  • Rod Spires

Abstract

POTTER J., MOORE B. und SPIRES R. (2003) Foreign manufacturing investment in the United Kingdom and the upgrading of supplier practices, Reg. Studies 37 , 41-60. This paper shows that the practices and competitiveness of UK suppliers have been improved by inward foreign manufacturing investment. Greenfield, large and North American or European investors were the most likely to have such impacts, particularly on their manufacturing suppliers. Benefits were transmitted through a mix of passive mechanisms, such as contractual arrangements, and active mechanisms, such as supplier visits. Regional policymakers should recognize the impacts on supplier upgrading when justifying foreign investment attraction and embedding initiatives. However, they should also recognize that there are some barriers to direct intervention in spillover processes. POTTER J., MOORE B. et SPIRES R. (2003) L'investissement direct e tranger au Royaume-Uni et l'amelioration des pratiques des fournisseurs, Reg. Studies 37 , 41-60. Cet article cherche a demontrer que l'investissement industriel direct etranger a contribue a l'amelioration des pratiques et de la competitivite des fournisseurs britanniques. Les importants investisseurs les usines nouvelles, et les investissements americains ou europeens ont ete les plus susceptibles d'avoir de telles retombees, notamment sur leurs fournisseurs industriels. Les avantages ont ete transmis par voie d'un melange de mecanismes passifs, tels des accords contractuels, et de mecanismes actifs, tels les visites des fournisseurs. En justifiant l'attrait de l'investissement direct etranger et en ancrant les initiatives, les decideurs regionaux devraient reconnaitre les retombees de l'amelioration des pratiques des fournisseurs. Cependant, ils devraient reconnaitre aussi qu'il existe quelques obstacles a l'intervention directe dans les retombees. POTTER J., MOORE B. und SPIRES R. (2003) Auslandsinvestierungen in die Produktion des Vereinigten Konigreichs und Ausbau der Verfahrensweisen von Lieferanten, Reg. Studies 37 , 41-60. Dieser Aufsatz zeigt, dass Verfahrensweisen und Wettbewerbsfahigkeit von Lieferanten im Vereinigten Konigreich von Grossbritannien durch Auslands- investitionen in die Produktion verbessert worden sind. Unternehmen auf dem Grungurtel, nordamerikanische oder europaische, sowie Grossinvestitionen waren am Erfolg versprechendsten, besonders in Hinsicht auf ihre Auswirkung auf Produktionslieferanten. Vorteile ergaben sich durch verschiedene passive Mechanismen, wie z.B. vertragliche Abmachungen, und durch aktive, wie Lieferantenbesuche. Fuhrungskrafte der Regionalpolitik sollten sich bei der Rechtfertigung der Anziehungskraft von Auslandsinvestierungen und Einbettungsinitiativen der Auswirkungen auf den Ausbau der Verfahren von Liferanten bewusst sein. Sie sollten jedoch auch zugeben, dass bei U berschwappvorgangen direktem Eingreifen Grenzen gesetzt sind.

Suggested Citation

  • Jonathan Potter & Barry Moore & Rod Spires, 2003. "Foreign Manufacturing Investment in the United Kingdom and the Upgrading of Supplier Practices," Regional Studies, Taylor & Francis Journals, vol. 37(1), pages 41-60.
    • Handle: RePEc:taf:regstd:v:37:y:2003:i:1:p:41-60
    DOI: 10.1080/0034340022000033394
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    Cited by:

    1. Abdelrasaq Na Allah & David Adebisi Samuel, 2023. "Linkage Behaviour of Manufacturing Firms in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 537-545, September.
    2. Jacob A Jordaan, 2017. "Producer firms, technology diffusion and spillovers to local suppliers: Examining the effects of Foreign Direct Investment and the technology gap," Environment and Planning A, , vol. 49(12), pages 2718-2738, December.
    3. Erol Taymaz & Yilmaz Kilicaslan, 2005. "Determinants of subcontracting and regional development: An empirical study on Turkish textile and engineering industries," Regional Studies, Taylor & Francis Journals, vol. 39(5), pages 633-645.
    4. Amendolagine, Vito & Presbitero, Andrea F. & Rabellotti, Roberta & Sanfilippo, Marco, 2019. "Local sourcing in developing countries: The role of foreign direct investments and global value chains," World Development, Elsevier, vol. 113(C), pages 73-88.
    5. Saliola, Federica & Zanfei, Antonello, 2009. "Multinational firms, global value chains and the organization of knowledge transfer," Research Policy, Elsevier, vol. 38(2), pages 369-381, March.
    6. José Antonio Belso-Martínez & F. Xavier Molina-Morales, 2011. "The drivers of the open district development: a social capital approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 3(2), pages 49-70, June.
    7. Fernando Anjos & Cesare Fracassi, 2015. "Shopping for Information? Diversification and the Network of Industries," Management Science, INFORMS, vol. 61(1), pages 161-183, January.
    8. Geoffrey G. Gachino, 2010. "Technological spillovers from multinational presence," Progress in Development Studies, , vol. 10(3), pages 193-210, July.

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