Influence of subcontracting on innovation and economic performance of SMEs in Indian automobile industry

Trans-national corporations (TNCs) expanding their production bases to developing countries having better conditions of manufacturing and domestic markets provide increasing opportunities for local small and medium enterprises (SMEs) to have subcontracting relationships with these TNCs Even though some theoretical and a few empirical studies throw light on the nature of assistance provided by TNCs to local SMEs through subcontracting relationships none of the studies so far quantitatively analysed the role of this assistance on the innovative performance of SMEs leading to better economic performance This paper probes the extent and diversity of assistance received by SMEs from a TNC through subcontracting and its influence on technological innovations and economic performance of SMEs in the Indian automobile industry Indian SMEs were able to receive mainly product related and purchase process assistance thereby implying that subcontracting is largely confined to purchase-supply relationships However assistance received through subcontracting is beneficial as It promoted technological innovations of SMEs the higher the degree of assistance the higher the level of innovations carried out by these SMEs which in turn facilitated their economic performance Thus this paper substantiates in the Indian context that subcontracting relationship with a TNC can be an important source of technological innovations and enhanced economic performance for SMEs (C) 2010 Elsevier Ltd All rights reserved

Co-benefits, trade-offs, barriers and policies for greenhouse gas mitigation in the agriculture, forestry and other land use (AFOLU) sector

The agriculture, forestry and other land use (AFOLU) sector is responsible for approximately 25% of anthropogenic GHG emissions mainly from deforestation and agricultural emissions from livestock, soil and nutrient management. Mitigation from the sector is thus extremely important in meeting emission reduction targets. The sector offers a variety of cost-competitive mitigation options with most analyses indicating a decline in emissions largely due to decreasing deforestation rates. Sustainability criteria are needed to guide development and implementation of AFOLU mitigation measures with particular focus on multifunctional systems that allow the delivery of multiple services from land. It is striking that almost all of the positive and negative impacts, opportunities and barriers are context specific, precluding generic statements about which AFOLU mitigation measures have the greatest promise at a global scale. This finding underlines the importance of considering each mitigation strategy on a case-by-case basis, systemic effects when implementing mitigation options on the national scale, and suggests that policies need to be flexible enough to allow such assessments. National and international agricultural and forest (climate) policies have the potential to alter the opportunity costs of specific land uses in ways that increase opportunities or barriers for attaining climate change mitigation goals. Policies governing practices in agriculture and in forest conservation and management need to account for both effective mitigation and adaptation and can help to orient practices in agriculture and in forestry towards global sharing of innovative technologies for the efficient use of land resources. Different policy instruments, especially economic incentives and regulatory approaches, are currently being applied however, for its successful implementation it is critical to understand how land-use decisions are made and how new social, political and economic forces in the future will influence this process.