Knowledge Networks as a Regional Development Resource: A Network Analysis of the Interlinks between Scientific Institutions and Regional Firms in the Metropolitan region of Hanover,Germany

The debate on regional innovation potentials has concentrated in recent times upon the topic of regional knowledge networking. This article presents the findings of the first phase of a detailed network analysis of the cooperation relations between scientific institutions and firms in the “metropolitan region Hanover-Brunswick-Göttingen”. The research concentrated on the regional and supra-regional cooperation relations of approximately 500 science establishments of the region, including their interlinks with private sector firms. This analysis of a polycentric metropolitan region's knowledge networks in different fields of competence produced detailed information on the density of knowledge interlinking within the region, on the degree of connectivity between the region's scientific institutions and private sector firms, and on central network nodes within the regional innovation networks. The case study exemplifies the methodical approach of a regional network analysis and emphasizes the role of knowledge networks as a development resource which is of particular relevance to the region's innovation capacities.     

KNOWLEDGE SPILLOVERS,ABSORPTIVE CAPACITY,AND SKILL INTENSITY OF CHILEAN MANUFACTURING PLANTS*

ABSTRACT Knowledge spillovers are an important source of economic growth. In this study, we identify a mechanism through which knowledge spillovers occur among plants in the Chilean manufacturing industry. A plant‐level production function is estimated with the absorptive‐capacity hypothesis, that is, employment of skilled workers is a key channel through which knowledge is transmitted across plants. Results show that a plant's productivity from spillovers increases with its skill intensity, which is measured by the share of skilled workers in total employment. We also find that plants in a region with a large knowledge stock increase their skill intensity to benefit more from spillovers. Our results suggest that an increase in regional knowledge stock is the most effective policy to improve a plant's productivity. However, policies that encourage a plant to employ high skill‐intensive production also enhance its productivity.     

External Knowledge,Territorial Inertia and Local Development: An Exploratory Case Study

This study examines the relationship between an entrepreneur's absorptive capacity, the spiral of knowledge and local development. Although a great number of theoretical and empirical studies have pointed out the importance of local networking and informal contacts when spreading knowledge locally, very few of them have provided robust evidence on the role of the entrepreneur's absorptive capacity and external knowledge in local development. This paper tries to explain the reasons why this problem can no longer be ignored and provides a preliminary examination, through an exploratory case study, of the role that the entrepreneur's absorptive capacity and external knowledge play in overcoming territorial inertia and enhancing local development.     

On the Informational Basis of Regional Innovation Policy: From Growth to Capabilities

The shift from the linear to the innovation system-based approach has resulted in the emergence of differentiated regional innovation policy. However, certain common presumptions bind these location-specific policies together. The set of information that is used to design these policies and the set of information excluded are fairly similar. The theoretical sections of this paper provide a critical review on the informational basis of regional innovation policy by contrasting the interpretations of the welfare effects of technological change in the utilitarian tradition and in Sen's capability approach. The empirical sections analyse the correspondence of the innovation capacity and welfare (well-being) situation in a Hungarian micro-regional data set. We conclude that the conventional informational basis of innovation policy is too narrow from a welfare perspective. Not only should the differences in the innovation systems, but also the peculiarities of the region's welfare situation be considered during the design of innovation policy.     

Innovation,knowledge and relations – on the role of clusters for firms’ innovativeness

ABSTRACT

For more than two decades, theories on regional clusters have inspired economic and structural policies at the European, national and regional levels. Based on the assumption that clusters generate innovation, policy-makers at all levels of governance have adopted instruments and mechanisms to stimulate, resource and sustain clusters. Despite the considerable attention paid to the clustering phenomenon, empirical evidence on to what extent firms’ innovation activities benefit from operating in clusters is scarce and inconclusive. This paper contributes to the micro-foundation of clustering effects by examining the characteristics and activities of cluster firms in relation to their innovativeness. Bridging innovation, management and cluster theories, it is argued that structural and relational embeddedness, relational capital and absorptive capacity influence clustered firms' innovativeness. Partial least-squares structural equation modelling of data from 104 firms in two software and information technology service sector clusters reveals that firms’ structural embeddedness (i.e. frequency of interactions) in clusters and external networks facilitates innovation cooperation. Firms’ absorptive capacity reinforces this positive effect of cluster-internal interactions on innovation cooperation. Results also suggest a substitution effect of trust as relational control mechanisms for formal control mechanisms within the cluster. However, the study finds no significant impact of firms’ innovation cooperation within the cluster (i.e. relational embeddedness) on their innovation success.     

THE POPULATION DYNAMICS OF EAST SIBERIA AND PROBLEMS OF PREDICTION

A review of population trends in the USSR and in East Siberia suggests that net in-migration will become a negligible source of labor over the next 25 years until the year 2000 because past labor surpluses no longer exist in the western regions of the Soviet Union and because living conditions in the eastern regions are inferior to conditions in the west. East Siberia will therefore have to depend increasingly on the regional rate of natural increase. The region's population is expected to grow from 8 million in 1970 to 10–12 million by the year 2000. The slow predicted growth of population is not expected to become a constraint on the region's economic development because of rising labor productivity and a regional emphasis on energy-intensive and raw-material-oriented industries rather than labor-intensive activities.     

International relations and the Himalaya: connecting ecologies,cultures and geopolitics

ABSTRACT

This article examines international relations (IR)'s approach to the Himalaya. We argue that the possibility of violent conflict over contested international borders is not the region's primary international challenge. Rather, slow violence inflicted by state-building and militarisation, intimately connected to geopolitical tensions, threaten the region's ecologies, cultures and languages. The Himalaya is home to three biodiversity hotspots and a mosaic of ethnic groups, many of whom speak threatened languages. Its ice-deposits feed most of Asia's large rivers. In recent years, India and China have pursued large-scale infrastructure development in the region, enabling greater militarisation and extraction, and a tourist rush. These threats are amplified by climate change, which is occurring in the Himalaya at twice global averages, contributing to landslides, flooding, and droughts. However, the region's complexity is not matched by IR's theorisations, which overwhelmingly focus on the possibility of violent conflict between state actors. We argue that IR's analysis of the region must go beyond a states-and-security, Delhi-Beijing-Islamabad centred approach, to look at the numerous interconnections between its geopolitics, cultures and ecologies. We suggest this can be accomplished through incorporating more interdisciplinary analysis, and through focusing on the interaction between the organisation of political authority and the region's environment.     

Combined Innovation Policy: Linking Scientific and Practical Knowledge in Innovation Systems

New research indicates that firms combining the science-based STI (Science, Technology, Innovation) and the experience-based DUI (Doing, Using, Interacting) modes of innovation are more efficient when it comes to improving innovation capacity and competitiveness. With regard to innovation policy, the STI mode calls for a supply-driven policy, typically aimed to commercialize research results. The DUI mode suggests a demand-driven policy approach, such as supporting the development of new products or services to specific markets. This article analyses how the two types of innovation policies and the two innovation modes can be combined in regional innovation systems (RISs). The analysis builds on studies of the food industry and related knowledge organizations in two counties, Rogaland County (Norway) and Skåne County (Sweden), and two policy initiatives (NCE Culinology and Skåne Food Innovation Network) aimed at strengthening the innovative capability of the RISs. The analysis indicates that policies aimed to link science- and user-driven innovation activity should focus on building absorptive capacity of DUI firms (e.g. through increased scientific competence) and implementation capacity of STI firms (e.g. through increased market and process competence).     

From regional innovation systems to local innovation systems: Evidence from Italian industrial districts

The theoretical concepts of industrial district and regional innovation system though closely related, capture different aspects of regional economic development. Given the “nestedness” of a system in other systems, one regional innovation system can support several districts. However, in some cases, districts may be considered as local innovation systems with independent innovation patterns. In fact, the socio-economic characters of industrial districts can be so specific that the region's size and institutional framework may be inadequate in fully describing their innovation processes. In the case of the Italian region of Lombardy, this “autonomous” local innovation system model proliferates.     

The Role of Regional Policies in Promoting Networking and Innovative Activity: Evidence from Small Finnish High-tech Firms

The success of high-technology firms is strongly dependent on their innovation capacity and network relationships. There is a growing recognition that few firms are able to innovate in isolation. Cooperation can provide access to a complementary knowledge base and resources, and speed up the innovation process of firms. Regional developers are criticized for their inadequate ability to integrate themselves into the regional networks and innovation processes of firms and their ability to determine firms' needs for innovation and networking. The research topic of this study concentrates on the possibilities of regional developers of influencing the operational environment of high-tech firms through the development of networks and innovation activity of firms. Of particular interest are the micro-level policies and concrete actions by regional developers for meeting the needs of firms. The data used are based on interviews addressed to high-tech firms located in Jyväskylä Science Park in Finland.     

Developing cross-industry innovation capability: regional drivers and indicators within firms

ABSTRACT

The role of firms in the process of regional renewal and path development is a somewhat neglected area in the existing literature. With few exceptions, the literature is mainly concerned with aggregated development paths. To cover this gap, the current study turns its attention to cross-industry innovation capability (CIIC) building in firms and discusses how conditions for innovation and learning in a region drive this process. We introduce a new concept of CIIC – that is, the firm’s ability to transform knowledge and ideas from different industries into new products, processes and systems and/or its ability to adapt existing products, processes and systems to new industries – and identify its drivers and indicators. The discussion is supported by empirical studies of firms in three Norwegian case regions that undergo the restructuring process due to the recent severe decrease in oil prices. Our empirical data demonstrate that organizationally thick and diversified regions are more favourable for firms’ abilities to develop CIIC and cross-industry innovation activity. As a result, we emphasize that future regional policies should have a stronger focus on the linkages between internal firm characteristics and regional innovation systems to contribute to the firms’ absorptive capacity for developing cross-industry innovation.     

Questions of the Integrated Utilization of the Natural Resources of the Komi ASSR

The author views British Columbia as a typical newly developed industrial region of the advanced capitalist countries, in which stress is placed on the development of raw materials and semi-finished goods for the export market. The region's transportation, electric power, metallurgical and forest industries are reviewed in detail. High labor productivity and advanced technology are found to be typical of the development of British Columbia, whose experience is found applicable to parts of Siberia.     

FACTOR ACCUMULATION,EXTERNALITIES, AND ABSORPTIVE CAPACITY IN REGIONAL GROWTH: EVIDENCE FROM EUROPE

This paper proposes a model that incorporates capital accumulation and spatial spillovers across economies, while allowing for regional differences in absorptive capacity. This model is estimated using a sample of EU regions, over a period including the enlargement of the single‐market area in the middle of the first decade of the 21st century. Results confirm the relevance of local absorptive capacity that is directly linked with the process of making the most of externalities. Capital deepening reduced the role of capital in explaining the regional productivity gap, but was not enough to help lagging regions to equal the return to human capital investments reached by most advanced regions.     

权力集中化、生产片断化与全球价值链下本土产业的升级

全球领先企业的权力集中化和生产的片断化导致价值分配的非均衡,并进一步加剧了全球生产网络中权力结构的不对称。本文提出全球价值链上的权力是一种建立在战略资源基础上的不对称的话语权,并归纳了八种基本的市场权力形式。通过对全球十大工业制成品及服务业的市场份额分析,发现技术能力和品牌能力是全球领先企业市场权力集中的主要根源,也是决定全球价值链上价值分配的决定性因素。嵌入全球价值链有利于发展中国家的本土企业迅速提高生产能力、接近全球市场和技术通道,但是从生产能力到创新能力的升级过程并非自动发生;全球价值链生产片断化带来创新过程的垂直分离和重新整合,发展中国家产业升级的关键在于本土企业的吸收能力和学习速度。     

Internet Domains and the Innovativeness of Cities/Regions--Evidence from Germany and Munich

This paper focuses on the factors determining a region's ability to produce Internet content and tries to identify relationships with the role of the same region in the national and global economy. The number of .de-domains is used to measure Internet content production, which serves as an indicator for the innovativeness of the regions in an emerging part of the service economy. Data used for the spatial distribution of .de-domains (1.2 million names at the end of 1999) is original and has not been published before. In the first part of the paper the development of the number of Internet domain names in German regions is described and independent variables to explain the spatial structure are analysed. Results show that those variables that are associated with potentials to create and commercialize new knowledge are especially suited to explain the regions' relative frequencies in domain name counts. However, no single hypothesis alone is able to explain the spatial structure of .de-domains, rather a mixture of factors indicating external economies, creation of knowledge and highly qualified labour is best. The knowledge and attitude of these individuals is crucial for the adaptation and diffusion of an innovation like the Internet. Thus, the Internet does not create new regions but it replicates, at least in Germany, the well-known ranking of regions in terms of high-tech. Concerning high-tech industries and knowledge-intensive services, Munich has stood at the top of German regions for about 15 years; this region will be analysed in the second part of the paper. Munich's national and global competitiveness depends mainly, as for other regions, on the innovativeness of its firms, research institutions, and people. The capability of Internet domain names as an indicator for regional innovativeness is the better the younger this innovation is. Despite the rather decentralized spatial structure of Germany (see the very low primacy index), compared, e.g. with the UK and France, Munich stands out in terms of the number of domain names. Munich's role in the national and global economy is supported by the early adoption of the Internet by the local firms and private users - and vice versa! If one considers the Internet as a basic innovation in the sense of Schumpeter's long wave approach then new combinations of resources in new or old regions can lead to strong national growth, but attended by increasing disparities between regions within the respective nation. We may distinguish two driving forces: the Internet as the basic innovation and the export of the respective content production to other parts of the global economy. Munich serves as a proof for the hypothesis that regions with a large potential of Internet production are also able to export these contents into other parts of the world. Zook's work on regional economic impacts of the Internet on US regions shows that regions with above-average Internet content production and marketing activities do profit significantly from the multiplicator and spin-off-effects of the related exports. Thus, although information can be distributed by the Internet in very short time to all places in the world, it nevertheless produces uneven economic landscapes (and in part manifest the old landscape) that sees the regions with strong Internet content production in a much better position than regions where the Internet consumption prevails, although this still has to be analysed for German regions.     

Nationalism,civil society,and the revolution of 1989

Relying heavily on the work of Edward Shils, this paper argues that a robust sense of national identity among the peoples of East Central Europe played a crucial role in the revolutions of 1989 and the subsequent emergence of civil society in the region's countries.     

The Political Economy of Class Compromise: Trade Unions,Capital–Labour Relations and Development in North East Brazil1

Abstract: This article investigates how capital–labour relations (encompassing processes of class formation, representation, struggle and compromise) impact on emerging regions’ developmental trajectories. It does so because much of development studies portray labour simply as an input (human capital) subordinate to more fundamental processes such as capital investment and accumulation. The paper draws on and extends insights gained from the “new working class studies” and global commodity chains literatures in order to examine evolving capital–labour relations—from relatively militant struggles to class compromise—in an emerging sector of North East Brazilian export horticulture. It identifies sources of workers’ structural and associational power and uses these to explain significant gains achieved by the region's rural trade union during the formation of the export horticulture sector. It then asks, why, despite continuing structural power, the region's trade union has entered into a class compromise with the leading employers via (a) reducing its militancy and its strategy of striking against employers to win concessions, and (b) shifting its objectives in terms of concessions sought. It speculates on the impacts of these changing class relations on the region's developmental trajectory.     

LOCATIONAL FACTORS IN THE DECLINING INDUSTRIAL COMPETITIVE ADVANTAGE OF THE NEW YORK URBAN REGION*

This paper investigates the locational factors that contributed to the decline of the New York urban region's industries during 1972-1975. Based on the static concept of a specialization index, a dynamic comparative advantage index is constructed. A model is then formulated to test the hypothesis that regional competitive advantage (vis-à-vis the nation) is a function of relative disparities in the change of these locational factors. Regression results show that the region's competitive advantage is influenced positively by the differential rate of change in market size, by the differential profit rate before tax, and negatively by the differential rate of change in unit labor cost and in unit energy cost. The differential tax rate does not seem to affect the region's competitive advantage. Nevertheless, a progressive corporate income tax structure tends to neutralize the beneficial effects of the economies of agglomeration and the urban attraction of the region.     

New Perspectives for Modernization in Central America

ABSTRACT Ostensibly, the Central American Left has been defeated both politically, in the Nicaraguan elections, and economically, with the triumph of orthodox economic adjustment policy. In reality, the end of the Cold War promises to alter the economic and political climate in a way that will encourage the region's long-delayed modernization. Although the political arena remains turbulent, moderate forces are emerging which Washington will find easier to support. Equally promising is the region's favourable record of economic adjustment in the second half of the 1980s. A more favourable world climate for world trade in the 1990s would ease the region's foreign exchange constraint and enable a further round of industrialization to take place, while further eroding the economic basis of ‘oligarchic despotism’.     

Delocalization Patterns in University–Industry Interaction: Evidence from the Sixth R&D Framework Programme

Increasing university–industry interaction (UII) and university contribution to the local economy are compatible—conventional wisdom would say. However, similar to other university activities, interaction with industry may be limited due to a lack of absorptive capacity in local firms. The data of those participating in the European Union's (EU's) Sixth R&D Framework Programme (FP6) were used to obtain values for the number and, notably, the budgets of UII projects at the regional level for the EU27. Two types of interactions were considered: inside and outside the region. Our analysis indicates that universities from regions whose firms have low absorptive capacity participate more often in FP6 projects with firms outside the region. Our results highlight the value of policies that facilitate firm R&D to enhance collaboration with regional universities.