Value-added Ratio Research Articles

Does Patent Portfolio Drive Global Value Chain Climbing?—Empirical Evidence From China

Under the new era of China’s high-quality development, the innovation driving of enterprises is shifting from single patent competition to patent portfolio competition, which is of great significance for cultivating a more robust domestic market and realizing a higher level of opening-up. This paper puts the firms’ patent portfolio index and domestic value-added ratio into a unified analysis framework. It explores the relationship between them by utilizing the Chinese Industrial Database, Chinese Financial Database and China Customs Database from 2000 to 2014. The empirical results suggest that: (1) Domestic patent portfolio plays a significant role in promoting enterprises’ export domestic value-added ratio, the suitability of domestic invention and utility model patents is not high in China; (2) Based on the heterogeneity analysis, the domestic patent portfolio of public trading enterprises and high productivity enterprises has a more significant promotion effect on domestic value-added ratio. (3) By examining the mechanism, it shows that price-cost markup and the relative price of intermediate goods are significant intermediate variables of domestic patent portfolio promoting domestic value-added ratio, and patenting abroad is an essential channel of domestic invention patent promoting domestic value-added ratio. This paper made an in-depth analysis of the influence of domestic patent portfolio on domestic value-added ratio, which provides a policy reference value for optimizing the Chinese patent system and enhancing competitive export advantage.

Analisis Nilai Tambah dan Strategi Pengembangan Industri Keripi k Kentang Di PT Agro Lestari Merbabu Kecamatan Ngablak, Kabupaten Magelang

Increasing business profits can be done through value added strategies and product development. The business development strategy is a long-term strategy for effective management by considering the strengths, weaknesses, opportunitie, and threats. The purpose of the study was to analyze the added value of potato chips products, to formulate internal and external factors that affect the potato chips business, and to formulate and determine the strategy for developing the potato chips business at PT Agro Lestari Merbabu. The research was conducted in March – April 2021, located in Magelang Regency. The research method used is a case study. Respondents amounted to 10 people consisting of internal parties and company stakeholders. The method of determining respondents using the purposive method. The research data were analyzed using descriptive analysis, added value, and SWOT analysis. Based on the results of the analysis, it can be seen that the Merbabu Potato Chips business produces an added value of IDR 20,533/kg and a value-added ratio of 52.65%. The potato chip business has main strengths in the form of an easy production process, the main weakness is that the company does not do much promotion, and there are 2 main opportunities in the form of regional conditions that support production activities and many tourist attractions as well as the main threat to slow market growth. The company's position in the IE matrix is ​​in cell V and it is better to hold and maintain. The priority strategy suggested for the Merbabu Potato Chips business is to market the product to tourist attractions at a relatively affordable and stable price.

Smile curves in global value chains: Foreign- vs. domestic-owned firms; the U.S. vs. China

This paper uses the “smile curve” mapping tool with a Y-axis for value-added ratio and an X-axis for production stages to identify value-added gains, positions, and interdependencies of foreign- and domestic-owned firms in global value chains (GVCs). Taking the U.S. and China's ICT firms’ exporting activities as a target, we find that China-based domestic-owned ICT firms’ value chain appears as a smile curve differing from the U.S.-based domestic-owned ICT firms’ inverted-U curve, which reflects the considerable difference in their technical specialization in joining GVCs; foreign-owned firms are good at utilizing each country's comparative advantages and can thus arrange value chains as smile curves regardless of whether they are located in the U.S. or China; China-based domestic-owned firms have increasingly plugged into most ICT value chains. All findings reflect how “sticky” the interdependency among countries along GVCs is and can thus help understanding the impact of the U.S.–China trade war.

Industry-University-Research Cooperation and the Solution to the Low-end Dilemma of GVC：From the Perspective of Export DVAR

In the 1990s, China quickly integrated into the global industrial chain and the global value chain (GVC) by virtue of its demographic dividend, and became the “workshop of the world”. In fact, due to the lack of core technologies, China is still at the low-end of GVC, with low manufacturing added value. At present, getting rid of the low-end dilemma and realizing GVC upgrading are of vital importance to the transformation and upgrading of China’s economy. As an important strategic way for enterprises to enhance their technological innovation capabilities, industry-university-research cooperation (IURC) may be an effective path for China to improve the value-added acquisition capacity of manufacturing industry.To this end, this paper analyzes the impact and mechanism of IURC on the domestic value-added ratio (DVAR) of Chinese manufacturing enterprises’ exports by using the matching data of China’s industrial enterprises, customs trade and patent application from 2000 to 2013, in which export DVAR is used to reflect the position of enterprises in GVC, and the level of IURC is measured by the joint patent applications.The research results show that IURC significantly improves export DVAR. The results of PSM analysis, instrument variable method and other robustness tests all back up the reliability of the empirical results. The mechanism analysis shows that the value-added efficiency of intermediate input and the proportion of processing trade both play an intermediary role in the process of IURC promoting export DVAR. From the perspective of regional division, IURC has a significant impact on export DVAR in eastern China. Based on different ownership, IURC can increase the DVAR of private enterprises, but its impact on the DVAR of state-owned enterprises and foreign enterprises is not obvious. From the angle of industry factor intensity, IURC has a positive impact on skill-intensive enterprises and labor-intensive enterprises. Also, the IURC of both invention patents and utility patents has a positive impact on export DVAR.The possible contribution of this paper may exist in the following aspects: Firstly, based on the analytical framework of Kee and Tang (2016), it introduces IURC into the theoretical model by constructing the incomplete substitution between intermediate inputs. Secondly, it provides new empirical evidence on the impact of IURC on enterprises’ GVC upgrading, and finds that IURC contributes to the increase of export DVAR. Thirdly, this paper suggests that attention should be paid to the impact of IURC on heterogeneous enterprises in the process of promoting the cooperation.

The Agroindustry Development Strategy for Java Ijen-Raung Arabica Coffee, in Bondowoso Regency, East Java

The potential of Java Ijen-Raung Arabica Coffee in the Bondowoso Regency, East Java needs to be increased by developing the downstream agroindustry. This study aims to determine the location of the downstream coffee agroindustry development area and its potential products, determine the added value of downstream coffee products, analyze its financial feasibility, and formulate a development strategy. Research methods used in this study include factor weighting, exponential comparison method, interpretive structural modeling, Hayami method, and financial feasibility analysis. The results showed that the development of the Java Ijen-Raung Arabica Coffee agroindustry was prioritized in Sumberwringin District as a development center. Downstream coffee products that have the potential to be developed are ground coffee. The added value generated from the processing of ground coffee is IDR 9,320/kg, with a value-added ratio of 48.09%. The results of the financial feasibility analysis show that the downstream coffee agroindustry is financially feasible to be developed by business actors. The downstream agroindustry development strategy formulation for Java Ijen-Raung Arabica Coffee refers to the key development sub-elements, i.e. increasing market area, monitoring product quality, and involving stakeholders in its implementation.

ANALISIS NIAI TAMBAH KERIPIK KENTANG DAGING (KRITING) VARIAN PEDAS

The purpose of this research is to know the process of meat potato chips processing (kriting) variant spicy and the value added was obtained on the processing of meat potato chips variant spicy. The research location was chosen purposively, using the case study method. This study uses the Hayami method analysis. The results obtained are the processing of meat potato chips (kriting) using semi-modern techniques that include potato stripping, potato shrinkage, leaching and potato drying, potato frying, the addition of meat as a mixture of potato chips, the production of potato chips with meat flavor, mixing potato chips and meat with seasoning.The value added was obtained from the process of potatoes into meat potato chips (kriting) variant spycy is Rp. 70,000.45 per kilogram. Value-added ratio is 44.16 percent with conversion factor of 0.518 and labor coefficient of 0.35 JKO. The rate of profit earned by employers is 84.48 percent. Output value is Rp. 135,136,00per kilogram.

The Value Chain Analysis and Optimization Strategy of Navel Orange Industry

Based on the interview survey data of the value-added activities, the value-added ratio, cost structure and profit distribution in various industry value chains of navel orange of China are analyzed. In order to increase the income of navel orange farmers and promote the industrial development, the optimization strategies are put forward from the high value-added circulation activities and vertical integration of industrial leading enterprises.

Analisis Nilai Tambah Edamame Melalui Penanganan Pasca Panen menggunakan Air Berozon

The value-added analysis is one of the most important investors instruments in determining the type and level of technology that will be used in the production process. The Food products added-value analysis of food products calculate the product added value due to the addition of technology types and or levels in the food processing process. The value-added analysis method used to analyze fresh edamame in this research was Hayami and Kawagoe. Edamame post-harvest processing is an important critical point in the production of fresh edamame. Abiotic contamination, presence of pesticide residues, vitamin C oxidation, food fiber ingredients, sensory value, and color stability in post-harvest handling are some of the quality criteria that are important to be met. This research aim was to compare the fresh edamame value-added products handling using ozonated water technology with chlorine disinfection that has previously been used. Based on the research results, the added value of edamame minimal processing with ozone was 145 IDR/kg higher than chlorine processing. The addition of 45 IDR/kg as ozone technology effort investment in the edamame minimal processing has increased the edamame value-added ratio by 0.19%.

Ecological relationships of global construction industries in sustainable economic and energy development

Value-added trade has increased rapidly in recent decades in the context of globalisation. This paper aims to measure the energy embodied in the value-added trade and the ecological relationships in the networks of the international construction industries. A hybrid method which combines ecological network analysis and the input–output method has been adopted. The direct energy intensities in most countries ranged from 0 to 3.0 trillion joules per million US$ and the dominant relationships were control and exploitation in the selected 15 years. For the construction sector, the negative relationships were dominant at 63.9% in Australia and 79.19% in China. The ratio of positive relationships increased from 24.3% to 31.5%, while the ratio of negative relationships declined from 75.7% to 68.5% over the 15 years. The mutualism index ranged from 0.72 to 0.98 over the 15 years, maintaining a value less than 1. In contrast, the synergism index had an increase of 12.2 over the 15 years. The results indicate that both direct energy intensity and the value-added ratio are important factors in relation to the energy embodied in value-added trade. Sectoral influence on the national industrial system has been interpreted in this paper to stimulate further research.

How air pollution lowers the domestic value-added ratio in exports: an empirical study of China.

This paper analyzes the theoretical mechanism and transmission channel for the impact of air pollution on firms' domestic value-added ratio (DVAR) in exports. Based on the matched Chinese Industrial Enterprises Database and China Customs Enterprise Database, the DVAR in exports is measured, and this mechanism is empirically tested with standard measurement methods. The study concludes that air pollution is not conducive to raising the DVAR during the sample period. This conclusion remains robust to many issues, such as endogeneity, measurement error, extension of the sample interval, substitution of the air pollution index, and policy changes. The impact of air pollution on the DVAR varies by the type of firm ownership, size, and age, as well as the size and location of the city. In addition, the negative impact of air pollution on the DVAR grows with increases in the PM2.5 concentration. The growing factor prices of domestic intermediate goods and the falling productivity due to air pollution are important transmission channels for the negative impact of air pollution on the DVAR. In order for firms to open up on all fronts through quality trade development, we recommend the prevention and control of air pollution, fueling internal driving forces for firms' independent innovation, and encouraging firms to target the medium- and high-end markets.

Value Added Analysis in Small Rice Milling Industry in Kabangka District, Muna Regency

The purpose of this study was to determine the added value obtained by the owner of a small rice milling industry in Kabangka District, Muna Regency. The data is processed using quantitative data to assess the added value in the rice milling industry. Data was collected by the following methods: (a) interviews, (b) library methods, and (c) documentation. This study uses the Hayami Method analysis. The number of respondents in this study was four people. The results showed that the owner of the rice milling business in one day made two productions. The number of raw materials in the two production processes was 1,150 kg per day. Hence, the total raw materials used by the rice milling business in one month was 34,500. by producing rice in one production of 750 kg per day. The whole rice produced by the rice mill in one month is 22,500 kg. The results showed that the milling business owner got an added value of Rp. 1,415 per Kg of raw materials, with a value-added ratio of 23%.

Analysis of Added Value of Various Rendang Products in Strengthening Regional Innovation System in the City of Payakumbuh, West Sumatera

This research aims to determine the regional core competencies to strengthen the city of Payahkumbuh’s Regional Innovation System by developing processed livestock products such as Rendang, a traditional dish popular in the Province of West Sumatra. Rendang is processed meat obtained from a long low-temperature cooking process using chilies and coconut milk. The city of Payakumbuh, located in West Sumatra, is one of the centers for the rendang processing industry that produces different types of rendang products including beef rendang, chicken rendang, egg rendang, lung rendang, sweet potato rendang, etc. This research discusses the added value of rendang products as an effort to increase the food industry to increase competitiveness and food production within the framework of a regional innovation and development through livestock product processing industry. Primary data were obtained through interviews with actors within the rendang industry. While secondary data derive from rendang industry literature. The data analysis used is the value-added analysis drawing on the Hayami method. The results show that the highest ratio of added value is egg rendang product (16.19%), followed by lung rendang with a value-added ratio of 8.44%.

Logistic Service Efficiency Using Value Stream Mapping Approach in the Pharmacy of Class-I Prison Clinic, Malang

A clinic is a healthcare facility providing basic services for individual health, a pharmacy is one of the installations of a clinic. The task of a pharmacy as a unit of a clinic is to organize, coordinate, manage and supervise all pharmacy-related services. The logistics management activities at the Class-I Prison Clinic of Malang include planning, requesting, receiving, storing, distributing, controlling, recording and reporting, as well as monitoring and evaluation. The current research was conducted on the four activities of requesting, receiving, storing and distributing. This study utilized the Value Stream Mapping (VSM) theory as an effort to reduce waste. The study used a quantitative descriptive method with a cross-sectional design. A total of 97 samples including workers involved in logistics management activities and patients seeking treatment were chosen using an accidental sampling method with the Taro Yamene formula. Data were collected through documents, interviews and observations. The results obtained in the distribution process considered all four activities, however, there was still some waste during the process. The calculated value added ratio (VAR) was 61.46%, which means that the clinic implements a lean management.
 Keywords: logistic management, distribution, value stream mapping, drugs

Added value of robusta coffee products of “dwi tunggal” farmer group in bromo mountain slope

Indonesia is among the four largest of coffee beans producing country in the world with production reaching more than half a million tons per year. Pasuruan Regency, located on the slopes of Mount Bromo, has a coffee plantation area of 4,458.20 hectares with a coffee production yield of 1,283.13 tons which has a very high potential of producing good quality Robusta coffee. This potential is used by farmer groups, mainly those under “Dwi Tunggal” farmer group association (Gapoktan) to produce Robusta roasted coffee beans and ground coffee (powder). This study aims to determine the added value of the process of Robusta coffee grinding and roasting and provide recommendations to the farmer groups to face global competition. The research area selection is done purposively considering the potential of the. This study uses value added analysis with the Hayami method. The results showed that the added value of Robusta coffee products in both the milling and roasting process was high and had a positive impact on the welfare of farmer group members. Added value for roasted coffee was Rp. 33,871.08 with a value-added ratio of 48.11%. Added value for ground coffee was Rp. 67,341.15 with the value-added ratio of 64.7%

Measurement of National Innovation Driving Force and Its Promotion of High-Quality Development of Service Industry

This paper mainly verifies whether the national innovation driving force (NIDF) can effectively promote the high-quality development (HQD) of the service industry. Specifically, the authors calculated the NIDF index, and tested the influence of NIDF and its internal indices on the domestic value-added ratio (DVAR) of export in the service industry. Besides, the innovation intensity of the service industry was measured to analyzed the heterogeneity of the industry. The empirical results show that: Stronger NIDF can significantly elevate the export DVAR of the service industry, promoting the HQD of that industry. Among the dimensions of NIDF, institutional innovation has relatively great positive impact on the HQD of the service industry. Moreover, the influence of NIDF on a sector of the service industry varies with the innovation intensity of the sector. The research results provide new evidence for the promoting effect of innovation on the HQD of the service industry.

Analisis Nilai Tambah (Value Added) serta Pengendalian Stok Bahan Baku Kopi pada Agroindustri “Mahkota” di Kabupaten Ogan Komering Ulu

Research with the title: "Control Analysis of Raw Material Availability and Value Added Coffee in Agroindustry" Mahkota "in Ogan Komering Ulu District". This research has the aim of knowing the optimal control of dry bean coffee raw material supplies in the "crown" agro-industry in Ogan Komering Ulu District, and to find out how much value-added from dry bean coffee to ground coffee in "crown" agro-industry in Ogan Komering Ulu District. This study uses a simple random sampling method. The sample used 1 agroindustry of MSME Ground coffee with a total sample of 17 people, 2 main respondents were business owners and 15 workers. With the data analysis method using the added value of the Hayami Method. Research yields were the order level of dry bean coffee raw materials in the Mahkota Coffee Powder Agroindustry is not economical. The raw material requirement for dry bean coffee is 100 kgs per order, while the number of economic orders using the EOQ method is 90.3 kgs and the reorder rate of dry bean coffee raw materials in the Mahkota Coffee Powder Agroindustry is efficient because the ROP value is smaller than the EOQ value Ground coffee products in the crown powder Agroindustry provide positive added value. Processing of dry coffee beans into ground coffee provides an added value of Rp20,900 with a value-added ratio of 45.04%

The response of small firms to VAT thresholds: evidence from China

ABSTRACT This paper explores the response of small-scale value-added tax (VAT) taxpayers to the changes of VAT thresholds and VAT tax rates. Using firm-level tax administrative data for the period between 2005 and 2012, we find that firms tend to bunch around the VAT thresholds. We also find that commercial firms and firms with higher value-added ratios are less likely to register as general taxpayers. We provide an estimate of the elasticity of the VAT tax base in the range of 0.027 and 0.05.

ANALISIS NILAI TAMBAH PRODUK OLAHAN KENTANG (Solanum tuberosum) DI KECAMATAN CIKAJANG KABUPATEN GARUT

The number of potato processors in Cikajang Sub-district Garut District is still relatively small, while Cikajang Sub-district Garut District is one of the production centers of potato commodities, which means the availability of abundant raw materials and has potential to be processed into other products to create added value. This problem can be caused by lack of information regarding the amount of added value that can be obtained from the processing. Therefore, the purpose of this study is to analyze the business efficiency and added value of potato processing. This study uses a quantitative research design with a questionnaire as a research instrument to 11 potato processors in Cikajang Sub-district, Garut District using the census method in September – November 2019. Data sources used are primary and secondary data. The data collected was processed using the business efficiency analysis method (RC ratio) and Hayami method. The results showed that the efficiency of processing potatoes into potato chips in Cikajang Sub-district was 1.8 and the added value obtained was Rp 10,647.4 / kg of potato raw material with a value-added ratio of 48.04%.

The drivers of export value-added in China’s provinces: a multi-regional input–output model

ABSTRACT It is vital to calculate Chinese provinces’ exports in domestic and global value chains from the perspective of value-added to address the problem of double counting. In this study, we calculated the direct and indirect domestic value-added in exports of 30 Chinese provinces using cross-border and cross-regional input–output tables in 2007 and 2012. We analysed the drivers of export value-added based on structural decomposition analysis. The results show that there is a value-added spatial imbalance in trade development. The export value-added of eastern provinces is significantly higher than that of central and western provinces, but this imbalance is gradually improving. The domestic value chain is the main channel for each province to realize export value-added, and the province production channels account for the highest proportion in this chain. The export value-added through international production channels is relatively small but growing in importance. The structural analysis shows that the increase of Chinese provinces’ export value-added is mainly caused by an increase of export scale and the provincial multiplier effect, while the value-added ratio of Chinese provinces has the main restraining effect. The spillover effect from industrial cooperation between provinces and other economies also increases the domestic value-added of exports.

NILAI TAMBAH PENGOLAHAN UBI KAYU (Manihot esculenta Crantz) MENJADI KELANTING SEBAGAI SNACK LOKAL

Processing cassava into various food products is an effort to produce the economic added value of cassava. The processing also needed to reduce the damage of fresh cassava. This study was aimed to asses the performance of ‘kelanting’ as an indigenous snack and its added value. Data were collected at the Plamboyan Farmer Women's Small Group (KWT) in Rejomulyo Village, Palas Subdistrict, South Lampung Regency from August 2019 to November 2019 using questionnaire. The descriptive analysis used to describe the industry performance, while the added value calculated quantitatively using Hayami Table. The results showed that the performance of the processing of cassava by the Plamboyan Small Women Farmers Group (KWT) was affected by the high availability of raw materials, i.e. ‘mentega’ cassava as local variety and how to process ‘kelanting’. The added value of processing cassava become ‘kelanting’ was Rp 5,493.00/kg with a value-added ratio of 64.55% which was classified as high value-added (>40%). The profit was Rp. 3,743.00/kg with profit rate of 68.14%.
 Keywords: added value, cassava, processed cassava product