Cafaggi, Fabrizio; Clavel, Sandrine --- "Interfirm Networks Across Europe: A Private International Law Perspective" [2011] ELECD 284; in Cafaggi, Fabrizio (ed), "Contractual Networks, Inter-Firm Cooperation and Economic Growth" (Edward Elgar Publishing, 2011)

Book Title: Contractual Networks, Inter-Firm Cooperation and Economic Growth

Editor(s): Cafaggi, Fabrizio

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781848448896

Section: Chapter 8

Section Title: Interfirm Networks Across Europe: A Private International Law Perspective

Author(s): Cafaggi, Fabrizio; Clavel, Sandrine

Number of pages: 46

Extract:

8. Interfirm networks across Europe:
a private international law
perspective
Fabrizio Cafaggi and Sandrine Clavel

1. INTRODUCTION

European firms are predominantly small and family owned. While many
of them are export oriented, their ownership structure is domestic.
Competition drives profound transformations of the European industrial
system. Inter-firm collaboration constitutes a powerful growth device
that can generate more effective supply chains. The formation of transeu-
ropean networks composed of enterprises located in different Member
States can promote higher European market integration and contribute to
the development of a more competitive European industry. Historically,
these forms of collaboration took place even in the pre-capitalistic era and
contributed to the creation of an integrated payment system to enhance
trade and exchanges. They were the outcome of private orderings devel-
oped with the approval of local governments. Today more powerful States
require a different and more interventionist approach at the European
level. The provision of rules concerning choice of law and general models
of inter-firm collaboration can support this process, together with new
policies on technological transfer and innovation.
Within contractual networks, we distinguish between two models: net-
works of bilateral linked contracts and multilateral contracts. The former
are characterized by bilateral contracts among different parties linked by
a common objective. A typical illustration is that of a supply chain where
the main contractor concludes contracts with first-tier subcontractors
which in turn sign contracts with a second tier. Another illustration is that
of a distribution contract where a producer creates ...