Downstream/upstream

[Alejandxa]

Hola quiero traducir este párrafo pero no entiendo su significado, ni el uso de las palabras downstream y upstream en el proceso, al final no sé que quiere decir el texto.
The present paper offers a rationale of spin-offs based on strategic considerations. Consider the incentive of a self-sufficient producer in a two-tier industry to enter backward into the input market. While generating new revenues in the input market, such entry by the firm benefits its downstream rivals by increasing input supply (a ‘‘helping the rivals effect’’), thus hurting its downstream business. This negative externality prevents the newly-created upstream unit from expanding.

 

[tula1012]

Hola, ¿El texto está relacionado con las empresas de energía? Si es así, upstream y downstream se utilizan para designar las operaciones de extracción y las de suministro, transporte, comercialización… respectivamente.

 

[javamonkey]

It means that there's a production chain from raw materials to a final product. There may be many processes involved in that chain.
The "top" of the chain is the raw material extraction, the "bottom" of the chain is final manufacture for a consumer end-product (like packaging etc.).
So various companies can only do various parts of this chain. This might be referred to as "tiers" and a certain industry might be "two tier" for some reason.
A certain company may be able to do a larger spectrum than others and they can expand "downstream" towards the final end-product or "upstream" towards raw material extraction. So, stream = production chain.