Regional evolution and waves of growth:a knowledge-based perspective

The evolution of a regional economy and its competitiveness capacity may involve multiple independent trajectories, through which different sets of resources and capabilities evolve together. However, there is a dearth of evidence concerning how these trends are occurring across the globe. This paper seeks to present evidence in relation to the recent development of the globe’s most productive regions from the viewpoint of their growth trajectories, and the particular form of growth they are experiencing. The aim is to uncover the underlying structure of the changes in knowledge-based resources, capabilities and outputs across regions, and offer an analysis of these regions according to an uncovered set of key trends. The analysis identifies three key trends by which the economic evolution and growth patterns of these regions are differentiated—namely the Fifth Wave Growth, the Third & Fourth Wave Growth, and Government-led Third Wave Growth. Overall, spectacular knowledge-based growth of leading Chinese regions is evident, highlighting a continued shift of knowledge-based resources to Asia. In addition, a superstructure is observed at the global scale, consisting of two separate continuums that explicitly distinguish Chinese regions from the rest in terms of regional growth trajectories.

Regional evolution and waves of growth:a knowledge-based perspective

The evolution of a regional economy and its competitiveness capacity may involve multiple independent trajectories through which different sets of resources and capabilities evolve together. However, there is a dearth of evidence concerning how these trends are occurring across the globe. Based on the underlying tenets of the streams of research relating to regional competitiveness, knowledge cities/regions, and knowledge-based urban development, this paper seeks to present an empirical approach to establishing such evidence in relation to the recent development of the globe’s most productive regions from the viewpoint of their growth trajectories and the particular form of growth they are experiencing. The aim is to uncover the underlying structure of the changes in knowledge-based resources, capabilities and outputs across regions, and offer an analysis of these regions according to an uncovered set of key trends. The analysis identifies three key trends by which the economic evolution and growth patterns of these regions are differentiated – namely the Fifth Wave Growth, the Third & Fourth Wave Growth, and Government-led Third Wave Growth. Overall, spectacular knowledge-based growth of leading Chinese regions is evident, highlighting a continued shift of knowledge-based resources to Asia. In addition, a superstructure is observed at the global scale, consisting of two separate continuums that explicitly distinguish Chinese regions from the rest in terms of regional growth trajectories. © 2014 Elsevier Ltd. All rights reserved. © 2014 Elsevier Ltd. All rights reserved.

World knowledge competitiveness index 2002:benchmarking the globes high-performing regions

The World Knowledge Competitiveness Index 2002 is the first composite and relative measure of the knowledge economies of the globe's best performing regions. It represents an integrated and overall benchmark of the knowledge capacity, capability and sustainability of each region and the extent to which this knowledge is translated into economic value and transferred into the wealth of the citizens of each region. This publication has over 50 pages and covers the following sections: The Economics of Knowledge Competitiveness The Rankings - World Knowledge Competitiveness Index Human Capital Components Knowledge Capital Components Regional Economy Outputs Knowledge Sustainability Components Driving Knowledge-Based Growth

A tale of two regions:comparative versus competitive approaches to economic restructuring

In April 2004 Mitsubishi announced the closure of its Lonsdale plant in South Australia. Almost a year later, MG Rover went into administration, resulting in the immediate closure of its Longbridge plant just outside Birmingham, England. Both closures were expected to have a considerable impact on their regional economies through the loss of employment and associated economic activity. However, governments in Australia and England responded in significantly different ways: in England the focus was on competitive advantage through the modernisation of the auto cluster and the diversification of the regional economy into new, high-technology industries. In Australia, the national and state governments introduced policy responses based on the pursuit of comparative advantage. This paper compares and contrasts the two sets of government responses and examines the capacity of each to deliver long-term benefits to their affected communities.

Structural funds and the knowledge-based economy:a regional case-study (1999-2009)

The research presented in this thesis investigates the nature of the relationship between the development of the Knowledge-Based Economy (KBE) and Structural Funds (SF) in European regions. A particular focus is placed on the West Midlands (UK) and Silesia (Poland). The time-frame taken into account in this research is the years 1999 to 2009. This is methodologically addressed by firstly establishing a new way of calculating the General Index of the KBE for all of the EU regions; secondly, applying a number of statistical methods to measure the influence of the Funds on the changes in the regional KBE over time; and finally, by conducting a series of semi-structured stakeholder interviews in the two key case study regions: the West Midlands and Silesia. The three main findings of the thesis are: first, over the examined time-frame, the values of the KBE General Index increased in over 66% of the EU regions; furthermore, the number of the “new” EU regions in which the KBE increased over time is far higher than in the “old” EU. Second, any impact of Structural Funds on the regional KBE occurs only in the minority of the European regions and any form of functional dependency between the two can be observed only in 30% of the regions. Third, although the pattern of development of the regional KBE and the correlation coefficients differ in the cases of Silesia and the West Midlands, the analysis of variance carried out yields identical results for both regions. Furthermore, the qualitative analysis’ results show similarities in the approach towards the Structural Funds in the two key case-study regions.

Regional foreign direct investment and wage spillovers:plant level evidence from the UK electronics industry

This paper examines the extent to which foreign investment in the UK generates wage spillovers in the domestic sector of the economy using a simultaneous dynamic panel data model and focusing on the electronics sector, possibly the most ‘globalized’ sector of UK manufacturing. It finds evidence that the higher wages paid by foreign firms cause wages in the domestic sector to be bid up. This phenomenon is, however, largely confined to the region where foreign direct investment takes place.

Hymer and uneven development revisited:Foreign Direct Investment and regional inequalities

Picking up on one of Hymer's key contributions, this paper examines the impact that inward foreign direct investment (FDI) into the UK has on the patterns of development, both within and across regions. Using a panel of data for the manufacturing sector, the paper illustrates that even where one isolates the effect on the domestic sector alone, inward investment acts to increase the demand for skilled, relative to unskilled labour, and also generates the expected agglomeration effects in terms of the demand for capital investment. The paper then goes on to draw certain policy comparisons between these findings and the desired aim of attracting FDI, notably to increase demand for labour in those regions suffering structural unemployment, and secondly to reduce the disparities between regions.

‘O convergence, where art thou?’ Regional growth and industrialization in Italy

This paper shows that the Italian economy has two long-run equilibria, which are due to the different level of industrialization between the centre-north and the south of the country. These equilibria converge until 1971 but diverge afterwards; the end of the convergence process coincides with the slowing down of Italy's industrialization policy in the South. In this paper we argue that to address this problem effectively, an economic policy completely different from that in place in needed. However, such a policy is unlikely to be implemented given the scarcity of resources and the short run nature of the political cycle.

The relationships between a developing regional airport and local commerce and industry

This thesis describes an investigation into a Local Authority's desire to use its airport to aid regional economic growth. Short studies on air freight. the impact of an airport on the local economy, incoming tourism. and the factors influencing airlines in their use of airports, show that this desire is valid. but only in so far as the airport enables air services to be provided. A survey of airlines. conducted to remedy some deficiencies in the documented knowledge on airline decision-making criteria. indicates that there is cause for concern about the methods used to develop air services. A comparison with the West German network suggests that Birmingham is underprovided with international scheduled flights, and reinforces the survey conclusion that an airport authority must become actively involved in the development of air services. Participation in the licence applications of two airlines to use Birmingham Airport confirms the need for involvement but without showing the extent of the influence which an airport authority may exert. The conclusion is reached that in order to fulfill its development potential, an airport must be marketed to both the general public and the air transport industry. There is also a need for a national air services plan.

Innovation, networking and globalisation:the role of regional innovation systems in the global innovation process

In the global economy, innovation is one of the most important competitive assets for companies willing to compete in international markets. As competition moves from standardised products to customised ones, depending on each specific market needs, economies of scale are not anymore the only winning strategy. Innovation requires firms to establish processes to acquire and absorb new knowledge, leading to the recent theory of Open Innovation. Knowledge sharing and acquisition happens when firms are embedded in networks with other firms, university, institutions and many other economic actors. Several typologies of innovation and firm networks have been identified, with various geographical spans. One of the first being modelled was the Industrial Cluster (or in Italian Distretto Industriale) which was for long considered the benchmark for innovation and economic development. Other kind of networks have been modelled since the late 1970s; Regional Innovation Systems represent one of the latest and more diffuse model of innovation networks, specifically introduced to combine local networks and the global economy. This model was qualitatively exploited since its introduction, but, together with National Innovation Systems, is among the most inspiring for policy makers and is often cited by them, not always properly. The aim of this research is to setup an econometric model describing Regional Innovation Systems, becoming one the first attempts to test and enhance this theory with a quantitative approach. A dataset of 104 secondary and primary data from European regions was built in order to run a multiple linear regression, testing if Regional Innovation Systems are really correlated to regional innovation and regional innovation in cooperation with foreign partners. Furthermore, an exploratory multiple linear regression was performed to verify which variables, among those describing a Regional Innovation Systems, are the most significant for innovating, alone or with foreign partners. Furthermore, the effectiveness of present innovation policies has been tested based on the findings of the econometric model. The developed model confirmed the role of Regional Innovation Systems for creating innovation even in cooperation with international partners: this represents one of the firsts quantitative confirmation of a theory previously based on qualitative models only. Furthermore the results of this model confirmed a minor influence of National Innovation Systems: comparing the analysis of existing innovation policies, both at regional and national level, to our findings, emerged the need for potential a pivotal change in the direction currently followed by policy makers. Last, while confirming the role of the presence a learning environment in a region and the catalyst role of regional administration, this research offers a potential new perspective for the whole private sector in creating a Regional Innovation System.

Intermediation for technology diffusion and user innovation in a developing rural economy:a social learning perspective

Technology intermediaries are seen as potent vehicles for addressing perennial problems in transferring technology from university to industry in developed and developing countries. This paper examines what constitutes effective user-end intermediation in a low-technology, developing economy context, which is an under-researched topic. The social learning in technological innovation framework is extended using situated learning theory in a longitudinal instrumental case study of an exemplar technology intermediation programme. The paper documents the role that academic-related research and advisory centres can play as intermediaries in brokering, facilitating and configuring technology, against the backdrop of a group of small-scale pisciculture businesses in a rural area of Colombia. In doing so, it demonstrates how technology intermediation activities can be optimized in the domestication and innofusion of technology amongst end-users. The design components featured in this instrumental case of intermediation can inform policy making and practice relating to technology transfer from university to rural industry. Future research on this subject should consider the intermediation components put forward, as well as the impact of such interventions, in different countries and industrial sectors. Such research would allow for theoretical replication and help improve technology domestication and innofusion in different contexts, especially in less-developed countries.

An examination of the determinants of entrepreneurship at the regional level:the case of East Midlands region

Despite the importance of new firms to the economy, determinants of start-ups have mainly been examined at a country level and discussion of regional entrepreneurial activity has received less attention. Since there are significant variations in entrepreneurship rates across and within countries, such an investigation at a regional level would help in gaining an in depth understanding of the impact of the individual level resource endowments and neighbourhood characteristics on an individual’s decision to engage in entrepreneurial activity. The main aim of the thesis is to explore various theories of entrepreneurship and develop integrated frameworks for examining the determinants of entrepreneurial activity at a neighbourhood level in the East Midlands region in England. The specific objectives of the thesis are to examine how the individual level resources and the neighbourhood characteristics: (i) combine to influence an individual to engage in the different stages of the entrepreneurial process, (ii) influence natives and migrants to engage in start up activity and (iii) influence women and men to become self-employed and ambitious entrepreneurs. In terms of the methodology, the empirical analysis is based on two databases combined: 2006 to 2009 GEM East Midlands region and the English Index of Multiple Deprivation dataset. Based on the critical review of the literature on entrepreneurship the thesis develop theoretical frameworks which led to formulate hypotheses related to the differentiated impact of both individual and neighbourhood level factors on the propensity of an individual to be involved in entrepreneurial activity. The findings indicate that the determinants of entrepreneurial activity vary with human, financial and the local environment factors affecting the entrepreneurial process. Finally, the thesis calls for caution when developing and applying generic and specific policy measures aimed at promoting entry into entrepreneurship.