Technological change and the challenges for regional development: building social capital in less-favoured regions

The relevance of regional policy for less favoured regions (LFRs) reveals itself when policy-makers must reconcile competitiveness with social cohesion through the adaptation of competition or innovation policies. The vast literature in this area generally builds on an overarching concept of ‘social capital’ as the necessary relational infrastructure for collective action diversification and policy integration, in a context much influenced by a dynamic of industrial change and a necessary balance between the creation and diffusion of ‘knowledge’ through learning. This relational infrastructure or ‘social capital’ is centred on people’s willingness to cooperate and ‘envision’ futures as a result of “social organization, such as networks, norms and trust that facilitate action and cooperation for mutual benefit” (Putnam, 1993: 35). Advocates of this interpretation of ‘social capital’ have adopted the ‘new growth’ thinking behind ‘systems of innovation’ and ‘competence building’, arguing that networks have the potential to make both public administration and markets more effective as well as ‘learning’ trajectories more inclusive of the development of society as a whole. This essay aims to better understand the role of ‘social capital’ in the production and reproduction of uneven regional development patterns, and to critically assess the limits of a ‘systems concept’ and an institution-centred approach to comparative studies of regional innovation. These aims are discussed in light of the following two assertions: i) learning behaviour, from an economic point of view, has its determinants, and ii) the positive economic outcomes of ‘social capital’ cannot be taken as a given. It is suggested that an agent-centred approach to comparative research best addresses the ‘learning’ determinants and the consequences of social networks on regional development patterns. A brief discussion of the current debate on innovation surveys has been provided to illustrate this point.

The importance of Sino-Australian sister city type relationships in regional development

Using the Jiangsu-Victoria and Greater Green Triangle-Yangzhou relationships as case studies this paper provides an initial analysis of the origins, objectives, achievements, and limitations of SinoAustralian Sister City Type Relationships. Based on research to date, we suggest that certain factors, including the development of inappropriate SCTRs have seriously limited the capacity of these relationships to achieve their stated and unstated regional development objectives. After reviewing the recent history and perceived effectiveness of Sino Australian SCTRs. the paper concludes by commenting on the potential of such relationships to contribute to economic and cultural development in regional Australia.

Can knowledge management save regional development?

Australia needs to create innovative regions to sustain economic prosperity and regional development. In order to do this, regions will need to systematically address their knowledge needs and identify tools that are appropriate in maximising their effectiveness. Many initiatives have focused on information and communication technology (ICT) to enable knowledge exchange and stimulate knowledge generation, but active knowledge management (KM) strategies are required if ICTs are to be used effectively. These strategies must respond to the regional economic and social environments which incorporate small and medium enterprises (SMEs). This paper outlines the importance of KM for supporting regional cluster development and the key ways in which communities of practice (CoPs), a KM technique, have been used to add value in similar contexts. How CoPs and their online counterpart, virtual communities of practice (VCoPs), can be used and developed in regional areas of Australia is considered along with a program for further research.

Communities of enterprise: SMEs, ICT and regional development

Many regional economies have pursued a strategy of stimulating the development of regional clusters. Such clusters typically include small and medium enterprises (SMEs) as a core component of those economies. Effective cluster development in that context depends on SMEs sharing knowledge and generating innovation. ICT networks can be an important resource for this sharing and innovation. This paper proposes the concept of ‘Communities of Enterprise’ to conceptualise the relationships and communication patterns used in cluster development. This concept builds on theoretical understandings of information systems, clustering and regional development. The value creation potential of Communities of Enterprise, supported by ICTs is substantial, but only when the socioeconomic elements of regional clusters are understood. The Community of Enterprise approach addresses the fact that without an industry focus it can be difficult to engage and link SMEs from different industries, although this is where the greatest potential for value creation in regional clusters is to be found. This paper concludes by considering the relevance of Communities of Enterprise for understanding and researching eCluster development in the Australian regional context.