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Producer Services, Division of Labor, and Innovation in Semi-Industrialized Countries: A Study of Argentine Naval Workshops
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Author(s): José A. Borello (Universidad Nacional de General Sarmiento, Argentina)and Hernán Morhorlang (Ministry of the Economy and Public Finance, Argentina)
Copyright: 2014
Pages: 20
Source title:
Quality Innovation: Knowledge, Theory, and Practices
Source Author(s)/Editor(s): Latif Al-Hakim (University of Southern Queensland, Australia)and Chen Jin (Zhejiang University, China)
DOI: 10.4018/978-1-4666-4769-5.ch021
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Abstract
The chapter contributes to the literature on innovation and producer services by suggesting that the division of labor and the forces that shape it in semi-industrialized countries may limit innovation and the acquisition of new firms’ capabilities. This chapter argues that a better understanding of production systems in semi-industrialized countries can by gained from an examination of producer services. The focus of the chapter is placed on the degree of vertical integration and the linkages that connect producer services with other agents. The chapter has two specific intentions: (1) to characterize the linkages that connect naval workshops with other agents and (2) to describe the characteristics of a group of suppliers of specialized industrial services. The chapter is grounded on a rich empirical base that makes possible a detailed analysis of producer services firms (naval workshops) but also of their main demand (shipyards). One central contribution of the chapter is to show that in semi-industrialized countries a significant proportion of producer services are still integrated in the demanding agents, and this is an obstacle to specialization and the achievement of economies of scale. The chapter is based on interviews and visits to 20 workshops, 26 shipyards, and 14 naval design studios.
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