Periodic Reporting for period 1 - RETHINK-GSC (Rethinking Global Supply Chains: measurement, impact and policy)
Okres sprawozdawczy: 2022-10-01 do 2023-12-31
Global supply chains (GSCs) have become a defining feature of the world economy, and they are generally seen as a way of sharing the production of intermediate and final goods between countries.
However, this view is limited, as the content of GSCs in Europe and the world has changed dramatically over the past decades. While goods (that is, tangible products) continue to be traded across borders as inputs, services trade and knowledge flows are now a characterizing feature of Europe’s internal market and the global economy. Furthermore, recent disruptions in GSCs arising from the COVID-19 pandemic, geopolitical tensions and climate-triggered holdups have exposed the vulnerability of such global production networks.
Against this backdrop, the aim of RETHINK-GSC is to capture the increasing importance of intangibles and in particular knowledge in global production, and to provide new insights into the implications of ongoing and expected changes in global production processes. To do so, RETHINK-GSC uses innovative methods to analyze the effects of global supply chains and develops new methodologies to quantify the role of knowledge flows and service inputs.
The research, both theoretical and empirical, is conducted mainly at the level of the firm – the unit that ultimately decides on the organization of international production. Using the RETHINK-GSC innovative measures allows the projects’ researchers and future scholars to:
- investigate the interaction between tangible and intangible GSCs to evaluate the changing nature of global supply chains,
- provide novel ways of analyzing the impact of GSCs on social, economic and environmental outcomes in European countries, and
- evaluate the resilience of GSCs to exogenous shocks.
Based on the research findings, RETHINK-GSC elaborates policy implications and develops policy scenarios for expected future changes in GSC. This new evidence contributes to enhancing policy developments related to ensuring level playing fields in trade relations and ensuring security of strategic supplies.
However, this view is limited, as the content of GSCs in Europe and the world has changed dramatically over the past decades. While goods (that is, tangible products) continue to be traded across borders as inputs, services trade and knowledge flows are now a characterizing feature of Europe’s internal market and the global economy. Furthermore, recent disruptions in GSCs arising from the COVID-19 pandemic, geopolitical tensions and climate-triggered holdups have exposed the vulnerability of such global production networks.
Against this backdrop, the aim of RETHINK-GSC is to capture the increasing importance of intangibles and in particular knowledge in global production, and to provide new insights into the implications of ongoing and expected changes in global production processes. To do so, RETHINK-GSC uses innovative methods to analyze the effects of global supply chains and develops new methodologies to quantify the role of knowledge flows and service inputs.
The research, both theoretical and empirical, is conducted mainly at the level of the firm – the unit that ultimately decides on the organization of international production. Using the RETHINK-GSC innovative measures allows the projects’ researchers and future scholars to:
- investigate the interaction between tangible and intangible GSCs to evaluate the changing nature of global supply chains,
- provide novel ways of analyzing the impact of GSCs on social, economic and environmental outcomes in European countries, and
- evaluate the resilience of GSCs to exogenous shocks.
Based on the research findings, RETHINK-GSC elaborates policy implications and develops policy scenarios for expected future changes in GSC. This new evidence contributes to enhancing policy developments related to ensuring level playing fields in trade relations and ensuring security of strategic supplies.
In the project's first phase, new data on knowledge flows in global supply chains were generated. In WP1, patent data created a Knowledge-Input-Output table (KIO), alongside analysis of open-source software scripts for knowledge flows in software development. We also developed measures for trade in intermediate goods adjusted for price changes. These datasets underpin further analyses in subsequent work packages.
In WP2, we gather survey data on knowledge transfers across firms and disruptions in global supply chains from companies in Austria, Denmark, Germany, and Hungary. A questionnaire was crafted based on pilot interviews and discussions with experts, administered via Qualtrics, with GDPR-compliant survey invitations sent out. Although ongoing, preliminary descriptive statistics are available, and this data will be further analyzed in the project's remainder.
Work on WP3-7 has progressed as planned, with WP3 and WP4 focusing on theoretical models concerning relationships between GSCs in services and goods and firms' adjustments to increased risk post-negative shocks like the Covid-19 pandemic. Empirical work, using datasets from WP1 and WP2 alongside administrative register data from various European countries, is underway to investigate identified relationships and the implications of GSCs on labor markets, technology, and environmental outcomes such as green innovation.
In WP2, we gather survey data on knowledge transfers across firms and disruptions in global supply chains from companies in Austria, Denmark, Germany, and Hungary. A questionnaire was crafted based on pilot interviews and discussions with experts, administered via Qualtrics, with GDPR-compliant survey invitations sent out. Although ongoing, preliminary descriptive statistics are available, and this data will be further analyzed in the project's remainder.
Work on WP3-7 has progressed as planned, with WP3 and WP4 focusing on theoretical models concerning relationships between GSCs in services and goods and firms' adjustments to increased risk post-negative shocks like the Covid-19 pandemic. Empirical work, using datasets from WP1 and WP2 alongside administrative register data from various European countries, is underway to investigate identified relationships and the implications of GSCs on labor markets, technology, and environmental outcomes such as green innovation.
In recent decades, extensive research has focused on global supply chains (GSCs) in goods and their advantages. RETHINK-GSC surpasses current standards in several ways. Firstly, it offers fresh and consistent data to assess GSCs in services, particularly in knowledge exchanges, through innovative knowledge-input-output tables (KIO) derived from patent data. These tables reveal the intricate links in innovation across different locations and patent categories. Initial econometric analysis of KIO data linked to firm-level data demonstrates the significant impact of innovation and knowledge flows on employment growth in both firms and regions.
Secondly, similar input-output tables are generated based on open-source software development, illustrating collaboration trends across different locations. While collaboration tends to gravitate towards certain areas, the decision on sourcing code for further program development shows no such concentration.
Another key innovation involves conducting company surveys in Austria, Denmark, Germany, and Hungary. These surveys yield detailed insights into firms' sourcing decisions, perceived disruptions, adjustments, and supplier relationships, particularly regarding knowledge transfer and innovation cooperation. Respondents' data will be securely linked to ORBIS data to protect privacy, creating a valuable and accessible database for RETHINK-GSC researchers. Although the survey is ongoing, initial responses highlight the data's uniqueness and its utility in understanding the risks firms face in GSCs and their adaptive strategies.
Secondly, similar input-output tables are generated based on open-source software development, illustrating collaboration trends across different locations. While collaboration tends to gravitate towards certain areas, the decision on sourcing code for further program development shows no such concentration.
Another key innovation involves conducting company surveys in Austria, Denmark, Germany, and Hungary. These surveys yield detailed insights into firms' sourcing decisions, perceived disruptions, adjustments, and supplier relationships, particularly regarding knowledge transfer and innovation cooperation. Respondents' data will be securely linked to ORBIS data to protect privacy, creating a valuable and accessible database for RETHINK-GSC researchers. Although the survey is ongoing, initial responses highlight the data's uniqueness and its utility in understanding the risks firms face in GSCs and their adaptive strategies.