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Public-Private Networks as Sources of Knowledge and Upgrading Capabilities: A Parametric Stroll through Argentine Vineyards

43 Pages Posted: 27 Nov 2007  

Gerald A. McDermott

University of South Carolina - Moore School

Rafael A. Corredoira

Fisher College of Business - The Ohio State University

Gregory Kruse

University of Pennsylvania - The Wharton School

Date Written: June 2007

Abstract

This article uses a unique research design to statistically analyze how a firm's public-private network can shape its upgrading capabilities. Such a network includes a firm's ties to other firms as well as to associations, cooperatives, schools, and publicly supported institutions that aim to help firms innovate. We develop our argument through an examination of the transformation of the Argentine wine industry in two provinces that uses data from a unique field survey we designed and implemented in 2004-05 to statistically analyze the relative impact of firm level factors, inter-firm networks, and ties to non-firm organizations and institutions. While inter-firm networks are vital to upgrading, institutions bring value to firms in helping reconfigure socio-economic relationships. First, they can help firms improve process and product upgrading capabilities and graduate them to more sophisticated inter-firm networks. Second, linkages to institutions appear especially helpful to the extent they help the firm gain access to a variety of knowledge in different communities of producers. Governments can aid upgrading and competitiveness, especially in emerging markets, by building public-private institutions that not only offer supply-side resources to firms but also act as bridges across regions.

Keywords: Upgrading, networks, institutions, South America, agriculture

JEL Classification: O17, L52, O30, O54, P52, Q16

Suggested Citation

McDermott, Gerald A. and Corredoira, Rafael A. and Kruse, Gregory, Public-Private Networks as Sources of Knowledge and Upgrading Capabilities: A Parametric Stroll through Argentine Vineyards (June 2007). Available at SSRN: https://ssrn.com/abstract=1032784 or http://dx.doi.org/10.2139/ssrn.1032784

Gerald A. McDermott (Contact Author)

University of South Carolina - Moore School ( email )

1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States
803-777-1035 (Phone)

HOME PAGE: http://mooreschool.sc.edu/moore/ib/profiles/McDermott_Gerald.html

Rafael A. Corredoira

Fisher College of Business - The Ohio State University ( email )

2100 Neil Avenue
Columbus, OH 43210-1144
United States

Gregory Kruse

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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