Regional Sub-contract Suppliers to Prime Defence Contractors: Evidence of their Performance in Response to Recent Changes in Demand

Abstract

OAKEY R. P., JAMES A. and WATTS T. (1998) Regional sub-contract suppliers to prime defence contractors: evidence of their performance in response to recent changes in demand, Reg. Studies 32 , 17-29. There is considerable evidence that technological change occurs unevenly over geographical space, and that change is faster in core areas of national economies than at their peripheries. The principal result of this paper is a confirmation that South East firms similarly initiate diversification technology strategies more readily than their regional counterparts. It is noted that defence spending is a disguised form of regional aid when contracts are awarded in peripheral parts of the United Kingdom. Thus, it is concluded that, given the laggard behaviour of peripheral firms regarding diversification, recent defence spending cut backs in these areas are likely to have a strong negative impact on industrial activity. OAKEY R. P., JAMES A. et WATTS T.(1998)Les soutraitants regionaux aux premiers fournisseurs militaires: des preuves de leur performance face a l'evolution recente de la demande, Reg. Studies 32 , 17-29. Il y a de tres bonnes raisons de penser que la mutation technologique se produit de facon irregulieer sur l'espace geographique et que cette mutation se fait plus rapidement dans les zones centrales des economies nationales par rapport a leur peripherie. La principale conclusion a tirer de cet article c'est la suivante: de la meme facon, les entreprises situees dans le Sud-Est mettent en oeuvre plus facilement des strategies technologiques relatives a la diversification que ne le font leurs homologues regionaux. Il est a noter que les depenses pour la defense constituent une aide regionale deguisee lors de l'octroi des contrats aux zones peripheriques au Royaume-Uni. On conclut que, etant donne le retard des entreprises situees aux zones peri pheriques pour ce qui est de la diversification, les amputations recentes des depenses pour la defense dans de telles zones risquent d'avoir d'importants effets nefastes sur l'activite industrielle. OAKEY R. P., JAMES A. und WATTS T. (1998) Regionale Subunternehmerlieferanten fur Hauptauftragnehmer der Verteidigungsindustrie: Anzeichen ihrer Leistung als Reaktion auf kurzlich eingetretene Veranderungen in der Nachfrage, Reg. Studies 32 , 17-29. Es liegen nicht unerhebliche Anzeichen vor, dass technologischer Wandel ungleichmassig verteilt im geographischen Raum auftritt, und dass Wandel in Kerngebieten der Wirtschaft eines Landes schneller vonstatten geht als in Randgebieten. Das Hauptergebnis dieser Untersuchung ist die Bestatigung, dass Firmen im Sudosten dementsprechend technologische Diversifikationsstrategien bereitwiiliger initieren als ihre regionalen Gegenstucke. Es wird festgestellt, dass, wenn Vertrage in Randgebieten des Vereinigten Konigreichs vergeben werden, die Ausgaben fur Verteidigung eine verhullte Form regionaler Forderung darstellen. Es wird somit gefolgert, dass in Anbetracht des nachhinkenden Verhaltens von Firmen untergeordneter Bedeutung in Bez...

Melting the Cold War Permafrost: Restructuring Military Industry in Scotland

“…Diversification strategies attend to the symptoms of morbidity by accepting the accumulation imperative of capitalist defense firms, adopting what Herod (1991) calls "the politics of concession." Recent academic research suggests that firms in Scotland have become increasingly ensnared in military work, blocking diversification, and are less able to generate new investment funds independently of the parent company than are firms elsewhere in the UK (Oakey et al, 1998). By the late 1990s "a picture of product innovation in Scotland continues to emerge in which, although Scottish firms are less dependent [than the UK as whole] on defence industry patronage for their productive activities, the defence work that is performed tends to be rather constraining and not easily transferable to civil applications" (Oakey et al, 1998:23).…”

Cluster Dynamics: Corporate Strategy, Industry Evolution and Technology Trajectories - A Case Study of the East Midlands Aerospace Cluster

“…Taken along with direct aerospace employment, this suggests the total size of the cluster is about 25,000-30,000 employees. Both Mair (2002) and Oakey et al (1998) found that a substantial proportion of these firms were engaged in precision and high technology sub-contract engineering for Rolls-Royce. Oakey et al (1998) observed that metal fabrication was particularly important amongst East Midlands' aerospace firms, a view endorsed by Mair (2002) who identified their main competencies as the manufacture of metal components, and the provision of machining, finishing and testing services.…”