This thesis is concerned with analysing the extent that technology transfer contributes to the improvement and development of technological capabilities through learning at the firm level in a developing country context, and the impact of this process on the emergence and changes of key characteristics of innovation systems. Therefore, it investigates how innovation systems change over time and how they were influenced by technology transfer activities in the materials industry in Turkey between 1967 and 2001. As a contribution to the theory, the concept of technological capability is used as a bridge from the notion of technology transfer to that of the innovation system. Innovation system studies tend to rely on R&D statistics via innovation surveys for empirical analyses, whereas these could well be defined by qualitative data collected on technological capabilities through interviews. This thesis follows the latter route within an analytical framework that is designed for a firm-centred analysis. The qualitative data obtained from the interviews were transformed into categorical quantitative data to be used in multinomial logistic regression and linear regression analyses. This thesis shows firstly that firm-level capabilities were increasing over time during the period from 1967 to 2001 in the materials industry in Turkey. They were also increasing over time with the rising level of technological capabilities in the firms and the firms' involvement in both collaborative relationships and in-house activities. Secondly, firmlevel capabilities shape the way the interactions in the innovation system change. As their level of technological capabilities deepen, firm interactions increase and shift to a moderate degree in plausible directions towards domestic agents, which are predominantly universities and research institutes. These findings support the firmdriven nature of the innovation systems.

This thesis analyses EU energy policy from a comparative agenda-setting perspective providing new theoretical and empirical insights into EU energy policy-making. Although two of the founding treaties of the European Communities covered the coal and nuclear sectors, the European Union has struggled ever since to establish itself in the field of energy policy. In particular, it failed to include an explicit Community competence on energy in Community primary law in subsequent treaty revisions – with the exception of the new Title XX on Energy introduced with the Lisbon Treaty. Nonetheless the European Union has established itself as an important player in European energy policy, as reflected in EU directives on energy market liberalisation, energy efficiency standards and targets for renewable energy sources. At the same time, policymakers at various levels, business, NGOs and experts agree that more EU energy policy is needed to face current and future transnational policy challenges, notably, climate change and energy security. This has led to numerous studies with policy recommendations on EU level action in the field of energy policy. By contrast, very few studies have analysed the drivers and barriers of EU energy policy-making and factors that can explain policy change and stability. Yet a better understanding of EU energy policy-making is a necessary precondition for the development of appropriate policy recommendations. This thesis provides an analysis of EU energy policy-making by identifying factors that can explain change and stability from an agenda-setting perspective. Drawing upon EU studies and agenda-setting literature the analysis distinguishes between two different agenda-setting routes, high and low politics, along the key stages of an issue career: initiation, specification, expansion and entrance. It accounts for the following key variables in EU agenda-setting: contextual factors, policy entrepreneurs, issue definition, and institutional venues. These are applied to two contrasting case studies of EU energy policy: nuclear energy and renewable energy. The study shows how and why Community initiatives failed in an institutionally ‘strong' EU energy policy arena under Euratom, but succeeded in the field of renewable energy under the EC Treaty.

Electricity production and consumption are at the heart of modern life and are therefore of great interest to public policy. Threats such as security of supply concerns, the volatility of fuel and electricity prices, and especially environmental concerns like climate change, are putting increasing pressure on current electricity systems. One key response by governments has been support for innovation. It is widely acknowledged that electricity systems will have to change fundamentally in order to deliver on political goals. This will require deep cuts in greenhouse gas emissions. Incremental change along established technological trajectories is unlikely to be sufficient. Instead ‘system innovations' have been suggested as a solution by scholars and policy makers. What are the politics of such an endeavour? To answer this question this thesis looks at two distinct policy initiatives to promote more sustainable electricity systems: the ‘Energy Transition' project in the Netherlands and the ‘Carbon Trust' in the UK. While the aim of the two policy initiatives is similar, they try to tackle the challenge in very different ways. The analysis is based on semi-structured interviews as well as a review of documents and secondary literature and follows a process tracing method, combining within-case and cross-case analysis. By utilising a framework based on ‘discursive institutionalism' (as per Hajer and Schmidt) the study aims to shed light on the importance of both discourses and institutional contexts in shaping policy initiatives to promote ‘system innovations'. It demonstrates the mechanisms by which particular framings of the problem, expressed through new storylines, come to legitimate particular government policies. It emerges that existing institutions not only shape which storylines are politically acceptable but also constitute tangible features of the organisational and technical environment which those initiatives must change. In conclusion, the thesis argues that the politics of governing ‘system innovations' can usefully be conceptualised and explained by struggles about meaning. These are shaped in turn through discursive interactions between actors as well as existing institutions. By highlighting the interplay between discourses, interests and institutions, the results provide an input to scholarly debate and policy making alike, in ways that offer to help inform the rethinking of strategies for fostering socio-technical ‘system innovations'.

This thesis is concerned with the organisation of innovation in the interaction between multinational companies and host-country innovation systems. It proposes a framework for characterising the decentralised governance of innovation projects in sectors and identifying emerging organisational configurations in this specific context. The general characteristics of the project-based knowledge networks are examined in terms of (i) the shifting boundaries between subsidiaries and technological partners, (ii) the specialisation of actors in types of activities and (iii) the speed of change in the collaborations between multinational companies and technological institutes. The emerging configurations are classified in terms of (i) the knowledge and resources flows in different innovation projects and (ii) the common aims of the different groups of stakeholders. This framework is applied on the decentralised networks of innovation projects in the Brazilian ICT sector promoted by tax incentives to innovation activities (―Brazilian ICT Law‖). The empirical analysis combines the data of more than 10,000 innovation projects and in-depth case studies on the organisation of innovative activities in 11 R&D laboratories in subsidiaries of multinational companies and 11 of their main technological partners. The analysis of the project-based knowledge networks and emerging configurations is recognised as a useful tool for examining the dynamics promoted by the sectoral policy. This research provides insights on how the institutional framework such as the Brazilian ICT Law provided the space for the decentralised interaction between different organisations with very different interests. The analysis also shows that the regulation may support higher investments in R&D, but it does not necessarily enforce a project portfolio that promotes a sustainable knowledge flow between multinational companies and the sectoral innovation system. Finally, the thesis includes specific recommendations for addressing key challenges such as the organisational development of the subsidiaries, the emergence of private research institutes and the coordination of sectoral policies. Keywords: sectoral innovation systems, knowledge network, organisation of innovation, economic sociology, R&D policy, innovation projects, project-based learning, interorganisational networks.

This dissertation applies the theory of technology accumulation to explain the internationalisation of foreign and West German multinational enterprises (MNEs) into East Germany. This theory shifts the focus from technology transfer to the international diffusion of innovation within the MNE. It rejects the position that all MNEs offer the same technological opportunities to host economies. Yet, most of the existing empirical research on postcommunist transition economies including East Germany applies the traditional technology transfer perspective. Therefore, this dissertation provides a complementary and novel approach. We assume a dynamic interaction between existing location specific technological capabilities within the host country, MNEs' location choice, their internationalisation of R&D and innovation, and the potential for technological spillover effects from MNEs to the host economy. The dissertation exploits information from the IWH FDI micro database on the full population of MNEs that entered East German manufacturing until 2005 and corresponding survey data. Micro econometric estimation results generate a number of novel findings: We can show that existing location specific technological capabilities affect MNEs' general location choice within East Germany. They are not powerful enough to attract MNEs' technological activities. Instead, the location of MNEs' innovation requires the joint presence of technological and industry specialisation within regions, whereas foreign R&D benefits from technological specialisation in combination with a diversified industry structure. Moreover, the location of technological activity differs depending upon the underlying motive for internationalisation. Our findings suggest that the potential for technological externalities from affiliates to local firms is subject to centrally and locally driven technological heterogeneity of MNEs. Existing location specific technological capabilities do not affect the spillover potential. This hints a limited dynamic interaction of ownership and locational advantages in firms' internationalisation. We derive implications for the technology accumulation theory as well as for various fields of science and technology policy.

The structure of this thesis is as follows: In the context of the study area of the Slovenský Raj National Park, section 2 looks into the process of institutional change in the CEE from the ex-post analysis. The ex-post institutional analysis helps to understand how the present came about and how the future might develop. In order to understand the process of the institutional change, this section highlights the importance and necessity of assuming the existence of previous institutions and the influence of this interaction on the durability and stability of new institutional forms. In search for driving forces behind and 15 barriers to sustainable development, Section 3 focuses on the current capacity of the study area to deal with slow and imperceptible changes in the circumstances of the transition countries. Special attention is paid to the concept of robustness, which plays an important role in the context of CEE, more precisely in the area of the SRNAP, where the economic and political transition process has been followed by an increased tourist inflow to the National Park and consequent slow environmental changes, without adequate strategies and considerable societal response. Analysing current situation of the study area helps to identify potential problems and understand what changes and innovation in the current conditions are needed to ensure sustainable development. By applying multi-criteria evaluation, section 4 explores different options with regard to tourism development in the study area and the necessary changes in the institutional arrangements in relation to these options. By analysing the process of institutional building from different time perspectives section 5 (conclusions) illustrates the driving forces behind and barriers of the study area towards robust and sustainable rural development and describes some policy implications.

The thesis appraises certain key processes – albeit rather limited in number and scope – widely assumed to be associated with assessing the role of technological capability building in developing country (DC) firms. The latter are affected by their DC status on both the demand side (e.g. by rapid growth of the economy via consumption and trade) and the supply side (of technological catch-up etc.). Such broad considerations set the scene for our specific study. In this thesis, the component of technological capabilities that we highlight by studying local integrated product providers is the capability for systemic product development. We argue that the organisational system of industrial firms in DCs plays a fundamental role in their technological learning performance. Here, the developmental context is stressed because we suggest that the knowledge about how to organise effective learning, termed 'social technology', is at least as scarce as the 'physical technology' in such contexts, compared with those prevailing in the developed countries. Therefore, when DC firms shift into a new domain, the organisational systems that they rely on often have to be created rather than simply selected. This may be because, as first-movers in their circumstances, even when they are informed by external sources, they have very little practical experience of carrying out similar actions successfully within their own contexts. Therefore, studying organisational building in their early phase could prove critical for understanding their capability building processes. Empirical studies of China‘s car-making and telecom-equipment sectors over the past three decades are taken to support theoretical exploration in this thesis. Some scholars (e.g. Bell and Pavitt, 1992) point out that, in DCs, the growth of production capacity does not automatically lead to the building of technological capability. The experiences of China‘s car-making and telecomequipment sectors are exactly in line with this point of view. From the mid 1980s, the Chinese government implemented a 'trading market for technology (TMFT)' policy, encouraging its backbone SOEs (State Owned Enterprises) to establish productive joint ventures (JVs) with MNCs (Multinational Corporations). By doing so, policy-makers expected backbone SOEs to undergo a bottom-up capability building trajectory via learning closely from their JV partners. We term these SOEs and their JVs the 'Group-A firms' in our research. Contrary to the expectations of policy-makers, Group-A firms were locked into the manufacturing segment even after twenty years of TMFT practices, and seldom had new systemic products developed indigenously, prior to 2005 at least. On the contrary, the indigenous advance of technological capability building has actually been led by some new entrants. Their development has been independent of the advocacy of TMFT. They relied on in-house developed products from the very beginning after entering the corresponding industries, and succeeded in building sustainable competitiveness. We term them the 'Group-B firms'. By comparing these Group-A and Group-B firms, we argue that there are distinctive differences in organisational learning systems between them. Four components are developed of the concept of organisational learning systems, i.e. the strategic intent, the authority over strategic resource allocation, the pattern of organisational mobilisation and learning integration, and the facilities and institutions for knowledge accumulation. For the latter three components, we succeed in generating a clear contrast between these two groups of firms. We undertake a thorough comparison of authority over strategic resource allocation by studying the constitution of their top committees. As for the patterns of learning mobilisation and organisational integration, we find distinct differences in the scope of knowledge communication of front-line engineers, and relevant institutional arrangements to mobilise, integrate and direct the content of communication. Regarding the facilities for knowledge accumulation and application, the study of their knowledge database building engenders a clear contrast, as well as the institutional arrangements to regulate and promote relevant activities within their organisations. We also discover significant connections between the organisational systems of Group-B firms and their processes of knowledge search, generation and accumulation. Three important mechanisms of new knowledge creation in Group-B firms are examined, namely learning through recruitment, learning through cooperative projects and learning through interaction with customers. Our empirical study reveals that the authority stressing the investment in new product and technology development, the cross-boundary inter-departmental platform of knowledge conversion, the comprehensive knowledge-accumulating facilities, and the institutions backing these components play fundamental roles in shaping these learning mechanisms. Therefore, the organisational differences of these two groups of firms are connected with the differences of these two subsets of firms‘ technological learning performances. Besides, we discuss the social roots of their organisational systems by historically revisiting China‘s industrial system. By doing so, for the research community that focuses on technological learning in DCs, this thesis advocates a shift of research from stressing assimilative processes of firms to giving more emphasis to organisational changes as a centrepiece of studies.

Not only is there an increase in the use of contract workers in some of today's workplaces, but a qualitative shift has also taken place in the nature of labour contracting, as the operation of labour intermediaries has expanded from peripheral services to the main production activities of companies. This new phenomenon implies the greater integration of labour contracting into the production process, together with changes in employment practices and the rights of workers. This thesis aims to better understand how the changing nature of labour contracting affects employment relationships by undertaking an empirical investigation of in-house contracting arrangements in the South Korean automobile industry. In so doing, it examines roles and relationships between workplace actors involved in labour contracting; namely, user firm management, contractors, labour organisations, user firm employees, contract workers and the state. This analysis sheds light on the process of change in labour contracting and the consequences of increased labour contracting in the workplace. The thesis argues that the coordination of workplace changes brought about by increased flexibility attained through the use of contract workers is fraught with tension, which influences the ways in which employment relationships are shaped in the context of any particular firm. The essence of such tension lies in the pursuit of organisational flexibility and quality control in the production process, both of which are considered to be necessary to ensuring the performance of firms. Contradictions arise from the attempts of user firms to avoid employment-related responsibility for the labour force, while at the same time exerting managerial control over contract workers. Such tensions and paradoxes are associated with conflicts of interest, and compromise between and within workplace actors. A case study of the Korean automobile industry is provided that explores the contradictory nature of the labour contracting system, as contract workers with fewer employment entitlements are brought into core production processes; and investigates the manner in which inherent tensions play out in shaping employment relationships and the orientation of labour contracting practices. The findings of this thesis could help in the further understanding of the implications of change in labour contracting practices, and contribute to overcoming the current limits of thinking with regard to labour flexibility and employment relationships in the context of in-house contracting.

Production of staples occupies an important part in Sub-Saharan Africa‘s crop production, and maize is its single most important food staple. This thesis mainly examines the role of maize in farmers‘ livelihoods and wellbeing in Tanzania, in the context of a long period of reforms that have affected both the maize market, agriculture more widely. It does so by exploring the role of maize in household‘s on and off-farm diversification, the determinants of crop productivity, and the relationship between diversification, commercialisation and‘ well-being. A number of specific issues are explored including the importance of factors such as farm size and education, access to key inputs such as seeds, fertilizers and agricultural extension services. The thesis uses data collected from three districts of Rukwa, one of Tanzania‘s major maize producing regions, and some secondary agricultural data from official sources. The research found that households with more land were generally more diversified (both on-farm and off-farm) than those with less land, and they experienced higher levels of well-being as measured by a range of concepts of well-being, but that maize continues to play an important role households‘ livelihoods and well-being. The research also revealed low levels of use of important agricultural inputs such as modern fertilizers and extension services, which may explain the low yields observed in the region. Education emerged as an important factor in raising yields, increasing commercialisation and also well-being, suggesting that nonagriculture policies may also be important for improving productivity and welfare of farmers. Despite the importance of crop production to their‘ well-being, households face several constraints; these include access to fertilizers, improved seeds and other chemical inputs necessary for higher production, and extension services. These findings have important policy implications as many rural households continue to rely on agriculture, especially production of staples. Therefore, these results could help the central and local governments to formulate strategies geared towards improving rural well-being.

This thesis examines the effects of a collection of policies that determine the mandatory distribution of mining, gas and oil revenues between national and subnational governments, and the greater involvement of mining companies in local development. I have labelled this set of policies, which aims to reduce social conflict and promote local development, the New Extractive Industry Strategy (NEIS). Chapter 1 describes the implementation of these policies in Peru and highlights their significance to the mining industry worldwide. Chapter 2 describes the methodology of the thesis and introduces the three field research regions. Chapter 3 outlines the national socio-political context for the implementation of the NEIS. Chapters 4–6 deal with the effects of the NEIS on social conflict. I argue that the implementation of the NEIS has not only failed to reduce conflict but has actually exacerbated it. After reviewing the debates linking extraction and conflict (Chapter 4), Chapter 5 demonstrates that conflict is strongly associated with the volume of mining revenue received by sub-national governments. Chapter 6 presents a typology of conflicts that helps to explain the correlation between mining revenue and unrest. In addition to well-known conflicts that are related to the adverse impact of mining on livelihoods and the environment, the study identifies two other types. In the first, peasant communities employ social conflict to increase their bargaining power with the mining companies for material compensation. In the second, the large volume of mining revenue generates disputes over access to or use of these financial transfers. Chapters 7–8 show that the NEIS has not delivered its development promises. Chapter 7 illustrates how regional and municipal governments in receipt of high per capita volumes of mining revenue transfers did not improve their economic and welfare indicators any more than the rest of the country. Chapter 8 proposes that a combination of obstructive political factors trapped regional and municipal authorities and local populations in a myopic political game that prioritised quick short-term spending over any long-term benefits to be gained from better planned expenditure. Finally, Chapter 9 draws some conclusions and makes some suggestions.