Do Keiretsu really hinder FDI into Japanese manufacturing?

This paper examines an issue that has received considerable comment but little analysis. It has often been argued that the presence of the keiretsu in Japan has been instrumental in deterring multinational firms from entering Japan, though evidence for this is patchy. We present some new analysis of this issue, thereby evaluating the effects of keiretsu on inward investment penetration in Japan. In contrast to previous work in this area, our results suggest that there is little relationship between inward FDI and keiretsu networks, once one controls for endogeneity and unobservable heterogeneity. The results illustrate some important interaction effects between keiretsu and other explanatory variables that explain differences in inward investment penetration. © 2012 Copyright International Journal of the Economics of Business.

Cost-effective upgrade of WDM all-optical networks using overlay fibres and hop reduction links

Fibre overlay is a cost-effective technique to alleviate wavelength blocking in some links of a wavelength-routed optical network by increasing the number of wavelengths in those links. In this letter, we investigate the effects of overlaying fibre in an all-optical network (AON) based on GÉANT2 topology. The constraint-based routing and wavelength assignment (CB-RWA) algorithm locates where cost-efficient upgrades should be implemented. Through numerical examples, we demonstrate that the network capacity improves by 25 per cent by overlaying fibre on 10 per cent of the links, and by 12 per cent by providing hop reduction links comprising 2 per cent of the links. For the upgraded network, we also show the impact of dynamic traffic allocation on the blocking probability. Copyright © 2010 John Wiley & Sons, Ltd.

Dynamic causal modeling of load-dependent modulation of effective connectivity within the verbal working memory network

Neuroimaging studies have consistently shown that working memory (WM) tasks engage a distributed neural network that primarily includes the dorsolateral prefrontal cortex, the parietal cortex, and the anterior cingulate cortex. The current challenge is to provide a mechanistic account of the changes observed in regional activity. To achieve this, we characterized neuroplastic responses in effective connectivity between these regions at increasing WM loads using dynamic causal modeling of functional magnetic resonance imaging data obtained from healthy individuals during a verbal n-back task. Our data demonstrate that increasing memory load was associated with (a) right-hemisphere dominance, (b) increasing forward (i.e., posterior to anterior) effective connectivity within the WM network, and (c) reduction in individual variability in WM network architecture resulting in the right-hemisphere forward model reaching an exceedance probability of 99% in the most demanding condition. Our results provide direct empirical support that task difficulty, in our case WM load, is a significant moderator of short-term plasticity, complementing existing theories of task-related reduction in variability in neural networks. Hum Brain Mapp, 2013. © 2013 Wiley Periodicals, Inc.

Information systems, inter-functional collaboration and innovation in Taiwanese high-tech manufacturing firms

This article investigates whether (1) cross-functional integration within a firm and the use of information systems (IS) that support information sharing with external parties can enhance integration across the supply chain and wider networks and (2) whether collaboration with customers, suppliers and other external parties leads to increased supply chain performance in terms of new product development and introduction of new processes. Data from a high-quality survey carried out in Taiwan in 2009 were used, and appropriate econometric models were applied. Results show that the adoption of IS that enhance information sharing is vital not only for the effective communication with suppliers and with wider network members, but their adoption also has a direct effect across a firm's innovative effort. Cross-functional integration appears to matter only for the introduction of an innovative process. Collaboration with customers and suppliers affected a product's design and its overall features and functionality, respectively. © 2013 Copyright Taylor and Francis Group, LLC.

The evolution of logistics service providers and the role of Internet-based applications in facilitating global operations

The need for global logistics services has increased dramatically and become extremely complex and dynamic as a result of a number of changes in manufacturing and in industrial production. In response, the logistics industry is changing in a variety of ways, including mergers to form integrated transportation service providers, outsourcing and increased use of information technology. The aim of this chapter is to provide an overview of the evolution and the most important trends in the logistics services provider (LSP) industry. Specific emphasis will be given to the role of Internet-based applications. Within this context, the chapter will also present the role of logistics e-marketplaces. In particular, based on the secondary research of currently existing logistics on-line marketplaces, an analysis and classification of them is provided with the aim of identifying service gaps. The analysis reveals that logistics electronic marketplaces, despite the increased range of services currently offered, still face limitations with reference to integrated customs links or translation services, which both reduce the efficiency of global operations.

Cost-effective upgrade of WDM all-optical networks using overlay fibres and hop reduction links

Fibre overlay is a cost-effective technique to alleviate wavelength blocking in some links of a wavelength-routed optical network by increasing the number of wavelengths in those links. In this letter, we investigate the effects of overlaying fibre in an all-optical network (AON) based on GÉANT2 topology. The constraint-based routing and wavelength assignment (CB-RWA) algorithm locates where cost-efficient upgrades should be implemented. Through numerical examples, we demonstrate that the network capacity improves by 25 per cent by overlaying fibre on 10 per cent of the links, and by 12 per cent by providing hop reduction links comprising 2 per cent of the links. For the upgraded network, we also show the impact of dynamic traffic allocation on the blocking probability. Copyright © 2010 John Wiley & Sons, Ltd.

Dynamic complementarities in innovation strategies

Using a panel of Irish manufacturing plants over the period 1991-2008 we test for dynamic complementarities in the joint use of internal R&D and external knowledge sources. We find little evidence, either from considering successive cross-sectional waves of comparable surveys, or in terms of the strategy switch choices of specific plants, that there has been a systematic move towards the joint use of internal and external knowledge in innovation. We then test formally for the presence of complementarities in the joint use of internal R&D and external innovation linkages. In static terms we find no evidence of complementarity, but in dynamic terms find evidence that strategy switches by individual plants towards a more 'open' strategy are accompanied by increased innovation outputs.

Networks, firm size and innovation

Using survey data on Australian firms this paper investigates the determinants of innovation. Various possible determinants are investigated, including market structure, export status, the use of networks, and training. Regression analysis is conducted separately for manufacturing and non-manufacturing firms and, within each sector, by firm size categories. The results include evidence of persistence in innovative activities and that the use of networks is associated with innovation in some sector-firm size categories. Specifically, small manufacturing firms exhibit a positive association between networking and innovation. In contrast, for non-manufacturing firms this association is present for medium and large sized firms.

Improved adaptivity and robustness in decentralised multi-camera networks

In this paper we present increased adaptivity and robustness in distributed object tracking by multi-camera networks using a socio-economic mechanism for learning the vision graph. To build-up the vision graph autonomously within a distributed smart-camera network, we use an ant-colony inspired mechanism, which exchanges responsibility for tracking objects using Vickrey auctions. Employing the learnt vision graph allows the system to optimise its communication continuously. Since distributed smart camera networks are prone to uncertainties in individual cameras, such as failures or changes in extrinsic parameters, the vision graph should be sufficiently robust and adaptable during runtime to enable seamless tracking and optimised communication. To better reflect real smart-camera platforms and networks, we consider that communication and handover are not instantaneous, and that cameras may be added, removed or their properties changed during runtime. Using our dynamic socio-economic approach, the network is able to continue tracking objects well, despite all these uncertainties, and in some cases even with improved performance. This demonstrates the adaptivity and robustness of our approach.

Learning to be different:heterogeneity and efficiency in distributed smart camera networks

In this paper we study the self-organising behaviour of smart camera networks which use market-based handover of object tracking responsibilities to achieve an efficient allocation of objects to cameras. Specifically, we compare previously known homogeneous configurations, when all cameras use the same marketing strategy, with heterogeneous configurations, when each camera makes use of its own, possibly different marketing strategy. Our first contribution is to establish that such heterogeneity of marketing strategies can lead to system wide outcomes which are Pareto superior when compared to those possible in homogeneous configurations. However, since the particular configuration required to lead to Pareto efficiency in a given scenario will not be known in advance, our second contribution is to show how online learning of marketing strategies at the individual camera level can lead to high performing heterogeneous configurations from the system point of view, extending the Pareto front when compared to the homogeneous case. Our third contribution is to show that in many cases, the dynamic behaviour resulting from online learning leads to global outcomes which extend the Pareto front even when compared to static heterogeneous configurations. Our evaluation considers results obtained from an open source simulation package as well as data from a network of real cameras. © 2013 IEEE.

Meshing radial networks at 11kV

This project evaluates the benefits of meshing existing 11kV radial networks in order to reduce losses and maximise the connection of low carbon distributed generation. These networks are often arranged as radial feeders with normally-open links between two of the feeders; the link is closed only to enable continuity of supply to an isolated portion of a feeder following a fault on the network. However, this link could also be closed permanently thus operating the network as a meshed topology under non-faulted conditions. The study will look at loss savings and the addition of distributed generation on a typical network under three different scenarios; traditional radial feeders, fixed meshed network and a dynamic meshed network. The networks are compared in terms of feeder losses, capacity, voltage regulation and fault levels.

Spillovers from FDI and local networks:the importance of transactional linkages and vertical keiretsu in Japan

Purpose – The purpose of this paper is to explore the importance of host country networks and organisation of production in the context of international technology transfer that accompanies foreign direct investment (FDI). Design/methodology/approach – The empirical analysis is based on unbalanced panel data covering Japanese firms active in two-digit manufacturing sectors over a seven-year period. Given the self-selection problem affecting past sectoral-level studies, using firm-level panel data is a prerequisite to provide robust empirical evidence. Findings – While Japan is thought of as being a technologically advanced country, the results show that vertical productivity spillovers from FDI occur in Japan, but they are sensitive to technological differences between domestic firms and the idiosyncratic Japanese institutional network. FDI in vertically organised keiretsu sectors generates inter-industry spillovers through backward and forward linkages, while FDI within sectors linked to vertical keiretsu activities adversely affects domestic productivity. Overall, our results suggest that the role of vertical keiretsu is more prevalent than that of horizontal keiretsu. Originality/value – Japan’s industrial landscape has been dominated by institutional clusters or networks of inter-firm organisations through reciprocated, direct and indirect ties. However, interactions between inward investors and such institutionalised networks in the host economy are seldom explored. The role and characteristics of local business groups, in the form of keiretsu networks, have been investigated to determine the scale and scope of spillovers from inward FDI to Japanese establishments. This conceptualisation depends on the institutional mechanism and the market structure through which host economies absorb and exploit FDI.

Reshoring:opportunities and limits for manufacturing in the UK - the case of the auto sector

In recent years, offshoring and outsourcing have transformed fundamentally nationally based auto sectors into global networks of design, production and distribution across the global value chains coordinated by the major automotive Original Equipment Manufacturers (OEMs). As manufacturing activities tended to be shifted to low-labour cost locations in Asia, Africa and Latin America, high-end design, R&D, product development have stayed anchored mostly to high-cost and high knowledge-intensive home economy locations (perhaps with the except of some design and styling activities which are often located in major end markets around the world. However, very recently the weaknesses of and risks inherent in such global value chains (GVCs) have been exposed, triggering attempts to rethink their nature and also raising possibilities to reshore some manufacturing activities to home countries. A combination of a more competitive exchange rate (despite the very recent appreciation of sterling), increased transport costs, rising wages in key areas of China, and a greater awareness of supply chain resilience have all contributed to a perceived change in some business fundamentals. The potential for some supply chain relocalisation also links in with the servitisation of manufacturing including the auto sector and shift to a hybrid model where manufacturing and services are increasingly intertwined. However, there are limits as to how far this can go and these raise some important questions and issues over the possible role for industrial policy.

Self-aware and self-expressive camera networks

Smart cameras perform on-board image analysis, adapt their algorithms to changes in their environment, and collaborate with other networked cameras to analyze the dynamic behavior of objects. A proposed computational framework adopts the concepts of self-awareness and self-expression to more efficiently manage the complex tradeoffs among performance, flexibility, resources, and reliability. The Web extra at http://youtu.be/NKe31-OKLz4 is a video demonstrating CamSim, a smart camera simulation tool, enables users to test self-adaptive and self-organizing smart-camera techniques without deploying a smart-camera network.

Experimental comparison of dynamic tracking performance of iGPS and laser tracker

External metrology systems are increasingly being integrated with traditional industrial articulated robots, especially in the aerospace industries, to improve their absolute accuracy for precision operations such as drilling, machining and jigless assembly. While currently most of the metrology assisted robotics control systems are limited in their position update rate, such that the robot has to be stopped in order to receive a metrology coordinate update, some recent efforts are addressed toward controlling robots using real-time metrology data. The indoor GPS is one of the metrology systems that may be used to provide real-time 6DOF data to a robot controller. Even if there is a noteworthy literature dealing with the evaluation of iGPS performance, there is, however, a lack of literature on how well the iGPS performs under dynamic conditions. This paper presents an experimental evaluation of the dynamic measurement performance of the iGPS, tracking the trajectories of an industrial robot. The same experiment is also repeated using a laser tracker. Besides the experiment results presented, this paper also proposes a novel method for dynamic repeatability comparisons of tracking instruments. © 2011 Springer-Verlag London Limited.