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The purpose of this paper is to introduce cybernetic systems in defence management applications, to meet new challenges of the information society and use of system modelling for decision making.

The paper defines basic terms for understanding the complexity of the defence management applications, which is simplified using input‐output modelling.

The paper illustrates the interdisciplinary nature of cybernetics, systems and management sciences. The defence system is analysed and a general input‐output model for defence system development recommended.

New data technology and data availability provide perspective for applied research using scientific approach.

Cybernetic systems for defence provide analytical modelling for management applications.

The paper presents a concept and empirical evidence for defence system analysis and a new way of thinking that affects defence planning and defence management. A cybernetic, systemic and input‐output methodology provides solutions for defence management applications.

The purpose of this paper is to explore the value added of exports of services, which increasingly involve intermediate inputs to manufacturing and are indirectly embodied in intermediate and finished good exports to the global market earned by Taiwan and South Korea.

This paper uses the World Input-Output Database to examine and compare the competitiveness of service industry between Taiwan and South Korea in China from 1995 to 2011. The author measures the value added of export in two ways: value added in trade (VAiT) and trade in value added (TiVA).

The proportion of domestic (intermediate and final demand) VAiT was created by Taiwanese and South Korean exports to China. The services amount share of value added embodied in Taiwanese electrical and optical equipment (ELE) exports to China increased gradually (38.0–45.7 percent) from 1996 to 2011, that was more than that of South Korea (26.7–23.3 percent). Taiwanese financial and business (F&B) service contributed to Taiwanese ELE production exported to China. In service sectors, the proportion of VAiT of Taiwanese F&B service embodied in ELE exports to China increased annually (9.8–11.5 percent), that was similar to that of South Korea (12.2–11.3 percent). Thus, F&B sector played an increasingly important role in service sectors. Taiwanese F&B promotes the ELE export to China with higher efficiency than South Korea does.

Over the past two decades, the development of information technology and the growth of international specialization and fragmentation of production processes have brought about a global value chains (GVCs) phenomenon in services, which has already been taking place in manufacturing for a long time. Intangible value added of services increasingly involved intermediate inputs from manufacturing and were indirectly embodied in intermediate and finished goods exported to the global market. The focus of this paper is to analyze how the service industry participates in the development of the GVC, with emphasis on the export of ELE production to China in the bilateral trade of Taiwan and Korea with China. In addition to the value-added components, the exports of F&B intermediate products to China have been increasing year by year, and Taiwanese is higher than South Korean. In the bilateral trade between Taiwan or Korea and China, for ELE production exported to China, double counted part of intermediate products is increasing year by year. In terms of the value added of the double counting of F&B exports to China, Taiwan is higher (PDC, 31.23–17.26 percent) than South Korea. (PDC, 8.7–15.12 percent). South Korea and China are not as closely related as Taiwan and China.

The purpose of this paper is to analyze the competition in the UK construction industry and the key sectors that supply it, thereby identifying the degree of industrial concentration affecting the construction product.

The research is based on Official Statistics giving details of the concentration ratios of 127 industrial sectors in the UK. The quantitative information on concentration is backed up by qualitative data from reports by the Competition Commission and its predecessors plus enquiries from the Office of Fair Trading. This is used to grade each industry and weight the key inputs by their relative importance to obtain an overall picture of competition in construction.

The paper concludes that construction is one of the most competitive sectors in the economy and its input structure is also amongst the least concentrated. This is measured by taking the industrial sectors that supply construction and weighting them in terms of their contribution.

The data used are not totally comprehensive as certain information is withheld because of commercial confidentiality. The sectors concerned, including banking and real estate, might warrant further investigation.

The implications are that construction remains a highly competitive sector and there is little to be gained by regulation other than the work currently being undertaken on collusion in bidding, and on mergers and acquisitions. The key point is to ensure that competitive bidding is free from collusion.

The paper goes beyond most of the existing research in challenging the conventional view that construction has a highly concentrated input structure.

The increasing complexity of the present economic system and the strong interdependencies existing between production activities taking place in different world areas make modern societies vulnerable to crisis. The global supply chain is a paradigmatic example of economic structures on which the impacts of unexpected events propagate rapidly through the system. Climate change, which affects societies all over the world, is one of the most important factors influencing the efficiency of the present economic networks. During the last decades a large set of studies have been oriented to investigate the direct impacts generated on specific geographical areas or productions. However, a smaller number of analyses have been oriented to quantify the cascading and indirect economic effects generated all over the world. The paper aims to discuss these issues.

The main objective of this paper is to provide an overview of the main studies, methodologies and databases used to investigate the climate vulnerability of the global supply chain.

The great complexity of the global economic system, coupled with methodological and data gaps, makes it difficult to estimate the domino effects of unexpected events. A clear understanding of the possible consequences generated all over the world is, however, a fundamental step to build socio-economic resilience and to plan effective adaptation strategies.

The information provided in this paper can be useful to support further studies, to build consistent quantification methodologies and to fill the possible data gap.

The purpose of this paper is to investigate the internationalisation of enterprises by specific forms of foreign direct investments (FDI) and international technical cooperation in the defence sector.

The effects of defence FDI and international technical cooperation activities on the Slovenian economy are investigated using the input‐output modelling approach.

The author finds important direct and indirect effects on the Slovenian economy from the FDI and international technical cooperation inflows into enterprises. These positive effects are directly and indirectly linked to enterprises in different statistically classified industrial activities by predominance of the civil sector, which is important for the development of defence and civilian high‐technological base products in different regional parts of Slovenia.

The presented findings can be used to arrange industrial and regional development strategy and policy measures aimed at accelerating the internationalisation of enterprises and different industrial activities.

This paper aims to investigate the issue of performance measurement of social enterprises with main particular focus on economic performance approach reflecting local aspect, since the local aspect plays a significant role in social entrepreneurship concept. Thus, comparison of two instruments that consider local aspects: local multiplier 3 (LM3) and Input-Output analysis is examined. Input-Output analysis is empirically used to calculate social enterprises’ impact on the Czech economy and to confirm the assumption to be more suitable instrument for economic performance measurement of social enterprises in comparison to local multiplier 3 method.

The research adopted two-phase approach. At first a qualitative approach was used to compare the two selected instruments (LM3 and Input-Output analysis). Consequently, a quantitative research was applied to determine the impact of social enterprises’ activities on the economies of individual regions. The research was carried out on a sample of social enterprises (143 subjects) in the Czech Republic covering the year 2015. For this approach, Symmetric Input-Output tables and multipliers were calculated and revenue data from each observed social enterprise were used.

The findings of the research indicate effects of social enterprises’ activities on the economy in individual regions of the Czech Republic. The results clearly show that the impact of social enterprises on the Czech economy is not negligible. Calculated impacts differ in sectors as well as in regions. Besides, of these findings, the assumption that the Input-Output analysis is more appropriate instrument for economic performance measurement of social enterprises, especially in situation of a larger sample of social enterprises in different regions, in comparison to LM3 method, was confirmed.

The limitations of this study is the dependence on the Symmetric Input-Output tables, which are usually published by local statistical offices and it takes some time to construct them. A more significant limitation and future research direction relates to the lack of generally accepted measurement framework in the sector of social enterprises and lack of the data, especially quantitative, in the Czech Republic.

The findings of the research represent a significant contribution to the process chain of understanding the role of social enterprises in (local) economy. The lack of proven impact of social enterprises to economy is considered as important limit of this sector development, not only from the perspective of investors and donors but also from the perspective of policymakers and even social enterprises themselves. The Input-Output analysis can be applied for any region of any country and can contribute to reduce scepticism about economic performance of social enterprises, thus to support putting social and environmental goals of social enterprises into practice.

This research has been carried out on the so far largest identified sample of social enterprises in the Czech Republic and provides data for discourse among stakeholders about social enterprises’ impact; thus, it enables to understand their impact and make capable to enlarge their support network and development.

This research is a pioneering attempt to provide data about economic impact of social enterprises using Input-Output analysis in the Czech Republic. No previous research identifies such a large sample of Czech social enterprises and collects quantitative data about them, as well as considers Input-Output analysis as an option instead of LM3 method. The effort of this research has been to react on a research gap in studies related to the impact of social enterprises (reflecting local aspect). This paper could be understood as beneficial not only from the perspective of the Czech Republic but also worldwide.

The purpose of this paper is to study reducing the variation of environmental footprint estimates based on multiregional input–output (MRIO) databases. Footprint estimates from various MRIO databases sometimes vary significantly. As a result, conclusions about the absolute levels or trends of a footprint may be inconsistent. The sources of these variations are attributable to three phases in the footprint calculations: differences in data preparation, MRIO database construction and footprint calculation.

This paper provides a literature overview and a breakdown of the computation of footprints based on MRIO database. Based on these insights, strategies that lead to lower variation in footprint estimates are formulated.

Convergence of footprint estimates require enhanced cooperation amongst academics, among statisticians and between academics and statisticians.

Reducing the variation in footprint estimates is a major challenge. This paper aims to contribute to this convergence in three ways. First, this paper provides the first overview of footprint work at statistical offices, government agencies and international organisations. These are the front-runners that may play a role in cooperating with academics (and other statistical offices) to resolve some of the issues. Second, a detailed analysis of the sources of the variation in estimates is provided. These problems are illustrated using examples from the various MRIO databases and the data of Statistics Netherlands. Third, strategies are discussed that might help reduce variation between footprint estimates.

The recent COVID-19 is forcing governments to implement policies on a large scale to counter its spread. A central issue in the economic debate is the effective quantification of the impact that the policies may implicitly have on the economy. This study quantifies the effects of lockdown in the United States.

The study uses a dynamic computable general equilibrium (DCGE) model calibrated on a social accounting matrix (SAM). The lockdown policy is applied on the supply side, by using a reduction in the production according to the closing time of each industry. The reduction in the demand is also applied, throughout the contraction of the household consumption that is diversified by the commodities. In order to analyse the pure effect of the lockdown policy, the interventions by the policy makers are not considered in this study.

The results show an important contraction of productivity in the food industry, the real estate activities, the constructions and the general services.

The contraction produces a fall of the GDP for the whole period analysed, traced by the investments, which includes repercussions on the whole productive system, employment and income of the institutional sectors.

The purpose of this paper is to offer an insight into the fundamental changes taking place in Port wine production value chains. Specifically, the authors examine two distinct production regimes: when Port is aged and sold in the Greater Oporto and, alternatively, when it is produced, aged and sold in Douro.

The authors apply a tri-regional input–output model (Douro, Greater Oporto and rest of the country) for Portugal’s economy. This framework comprises a significant level of detail, with 431 products and 136 industries, the corresponding supply and demand for the products, by industry (for intermediate consumption) and final demand.

This study shows that the two regimes generate noteworthy, but quite heterogeneous, regional impacts. In both cases, the distribution of value added generates international and interregional trade flows. Moreover, the study reveals a greater capacity to capture national value added by getting the supply chain more intensive in localised services and by using state-of-the-art production techniques.

Using detailed regional data, the authors use disaggregated information, both for industries as well for territories, overcoming a common limitation in similar works that are grounded in international databases. Additionally, the approach integrates the trade interactions among industries and regions, which proves essential to uncovering spillovers resulting from the (direct and indirect) use of inputs from other regions and other countries.

The study attempts to estimate farm subsidies the governments can save by transitioning to a millet-based production system, replacing GHG emission-intensive crops.

It updates a 131 × 131 commodity input–output (IO) table of the year 2015–16 into 2021–22 using the RAS procedure and simulates the economy-wide impacts of replacing rice and wheat with pearl millet and sorghum using consumption and production approaches. It then quantifies fertilizer, electricity and credit subsidy expenses the government can save through this intervention. It also estimates the potential reduction in GHG emissions that the transition could bring about. India is taken as a case.

Results show pearl millet expansion brings greater benefits to the government. It is estimated that when households return to their pearl millet consumption rates that prevailed in the early-reform period, this could save the Indian government Rs. 622 crores (USD 75 m). The savings shall be reinvested in agriculture to finance climate adaptation/mitigation efforts, contributing to a sustainable food system. Net GHG emissions also decline by 3.3–3.6 MMT CO2e.

Indian government has been actively aiming to bring down paddy areas since 2013–14 through the Crop Diversification Program and promoting millets (and pulses and oilseeds) on these farms. The prime reason is to check rapidly declining groundwater irrigation in Green Revolution states. Regulations in the past in these states have not brought the intended results. Meanwhile, electricity and fertilizers are heavily subsidized for agriculture. A slight shift in the cropping system can help conserve these resources. Meanwhile, GHG emissions could also be brought down and subsidies could well be saved. The results of the study indicate the same.

A less warm society is what governments and nongovernment organizations across the world are aiming for at present. Financial implications affect actions against climate change to a greater extent, apart from technological innovations. The effects of policy strategies discussed in the study, taking a large country as a case, when implemented appropriately around the regions, could help move a step closer to action against climate change.

The paper addresses a key but rarely explored research issue – that how a climate-sensitive crop choice will help reduce the government’s fiscal burden to finance climate adaption/mitigation. It also offers a mechanism to estimate the benefits within an economy-wide framework.