The Location and Concentration of Businesses in Britain: Business Clusters, Business Services, Market Coverage and Local Economic Development

An important debate has recently developed around the significance of business clusters for the development of the economy. This paper assesses the extent to which concentrated clusters of businesses exist in Britain, using the fine spatial mesh of postcode districts. It identifies the major clusters using a development of the methodology to define local labour market areas. The paper demonstrates the high degree of localization and uneven development of businesses in Britain. It also shows that business service firms are even more highly localized and clustered than other businesses. Moreover, the larger the business centre, the more localized and clustered the firms. The pattern suggests that there is a strong influence of increasing returns of scale, and that, as well as local clusters, much of the British economy is covered by one metacluster. Implications from these results are drawn for the likely future development of the economy, the location of business service suppliers in order to develop their market coverage, and local economic development policy.     

Business,Politics and Money in Australia: Testing Economic,Political and Ideological Explanations

The flow of business money to political parties is a vital issue for Australian democracy. Nonetheless, there has been no systematic study of why Australian businesses contribute to political parties and why they contribute more to one party than to others. I exploit Australian Electoral Commission data on payments to parties by 450 large businesses over 7 years at the Commonwealth and State levels. Economic characteristics (income and sector) are important to understanding which businesses make political contributions. However, they are little help in understanding how businesses distribute their cash. This is best interpreted as an interaction of ideological bias and political pragmatism. If Labor has the political advantage businesses tend to split contributions evenly between the ALP and the Coalition. If the Coalition has the political advantage businesses overwhelmingly target their contributions on the Liberal and National parties.     

Local Politics,Economic Structure,and Performance: The Case of Sakhalin

Two geographers assess the results of the State Duma elections in Sakhalin Oblast and relate the regional pattern of voting to varying socio-economic conditions of the region. The research is structured to test a working hypothesis that voting patterns in large part can be explained by regional variations in economic structure and performance. More specifically, it explores whether, at the rayon level, there is any relationship between: (1) economic specialization and election results; (2) economic trends and election results; and (3) long-term socioeconomic indicators and election results. The case study is presented as a caveat against the uncritical use of national party preferences as a measure of the political climate in Russia's regions. Journal of Economic Literature Classification Numbers: J60, O18, R12. 2 figures, 7 tables, 36 references.     

Economic Policies and Local Development: Some Reflections

Every national system is also a sum of all its regional economies. Then, there are economically differentiated regions within nations. If the foregoing is true, a crucial problem for economic policy is determining which policies should be pursued at the national level (national policies), and on what grounds, and which should instead be developed at the local, regional level (local policies). What policies influence the development and competitiveness of regional economies? This article tries to discuss these issues.The first causal relation to examine is that between national economic policies and the competitiveness of a country's regions. The picture grows even more complex if we consider that there are national policies which have explicitly geographical objectives. Then, why not count on national policies, even locally differentiated ones? Having answered this question this paper addresses the opposite issue: why should we not view the entirety, or at least the largest part, of national economic policy--and development policies in particular--as simply the sum of local economic policies? How can one distinguish between the local effects of national economic policies and those of local development policies? A further problem is providing a satisfactory definition of regions (i.e. the areas in which policies are to be implemented) and of their boundaries.     

Externalities,Learning and Governance: New Perspectives on Local Economic Development

In spite of growing mobility of production and production factors, economic development is increasingly localized in economic agglomerations. This article reviews three partially overlapping perspectives on local economic development, which derive from three factors intensifying the localized nature of economic development: externalities, learning and governance. Externalities play a central role in the new geographical economics of Krugman and in new economic geography of clusters and industrial districts. The dynamics of local economic development are increasingly associated with evolutionary economic thinking in general and with collective learning in particular. Inter‐firm and extra‐firm organization has experienced considerable innovation in the last few decades. New institutional devices are based on the notions of commodity chain, cluster and milieu. These innovations introduce new issues of economic governance both at the level of industry and of territory.     

Governance,Policy Innovation,and Local Economic Development in North Carolina

This article examines the extent to which local governments in North Carolina embrace innovation in their economic development activities. The study makes a distinctive theoretical contribution by examining the relationship between innovation in how economic development policies are administered and implemented (using concepts associated with governance and NPM), and innovation in what is substantively done (policy innovation). An analysis of the results from a statewide survey of local governments in North Carolina finds that certain governance/management variables are significant determinants of economic development policy innovation. An implication of this finding is that new ways of doing economic development may go hand‐in‐hand with new ways of governing and managing. Many of the governance/management variables are also positively associated with the use of a greater number of traditional economic development strategies and tools. This suggests that local governments may find it helpful to be innovative in how they implement economic development irrespective of the substantive policy orientation of particular strategies and tools.     

Politics and Economic Development: Why Governments Adopt Different Strategies to Induce Economic Growth

This article assesses the forces that drive governments to engage in economic development activity and attempts to explain why communities adopt different strategies to bring about the common goal of economic well-being. I address this issue at the state policy level by assessing the relationship between economic development strategy and theories of policy adoption in a pooled times series analysis using indicators of interstate competition, fiscal stress, and state ideology collected between 1983 and 1994. I find that economic development strategy choices are largely a function of interjurisdictional competition. The implications of my findings are discussed.     

Success Conditions for Urban Networks: Eurocities and Sister Cities

The present paper investigates the role of urban networks in interaction and integration of cities by means of the “sister city” movement. The paper addresses the relationships of “Eurocities” with their “sister cities” to highlight the main factors behind the successful relationships. The data and information used for evaluation are based on the extensive survey questionnaires filled out by relevant departments or experts of municipalities in Eurocities. A logistic regression method is deployed to identify the most important factors in the success of sister city relationships. The results of our study show that the existence of any former relation with the sister cities affects the success of the relationship positively. This former relation makes it easier to have a future relation with an economic partnership while shortening the process and accelerating the economic partnership. The results also show that two factors, viz. similarities in urban problems and contributions of Eurocities to their sister cities stimulate the willingness of Eurocities to improve the relationship. The contributions as well as economic benefits provided from the sister city relationship and new business and investment opportunities have emerged as the most important factors in sister city relationship.     

Learning to Innovate: Building Regional Technology Development Learning Networks in Midsized Cities

There has been increased attention to the importance of knowledge in economic success. The ability of a region to develop learning capabilities has been linked to knowledge-based success. However, conflicting perspectives exist about whether and how it is possible for policies and institutions in a lagging location to foster a learning region. This article examines this debate in the context of an effort to develop a second region of innovation (outside of Atlanta) in the US state of Georgia through a learning network called the Midsize Cities Technology Development Initiative. This initiative partnered four midsized cities in Georgia with four European midsized cities to stimulate benchmarking and learning. While traditional perspectives on economic development persist, some learning and reorientation of strategy was evident in the participating US cities. In stimulating these changes, significant roles were played by outsiders in brokering interaction and imparting fresh ideas, in strengthening ties to research and innovation capabilities in the core Atlanta metropolis, and in building new local institutions. A major new state-sponsored programme (the Centers of Innovation) with local presence in each of the four cities resulted from the effort. Still, it remains to be seen how learning will continue and whether a fully fledged second region of innovation will emerge in Georgia.     

Gender,Technology and Local Culture: Tradition and transition in a Swedish municipality

The article is concerned with the gendering of technology, place and time and the interaction between them. The Swedish community of Lindesberg which changed its local policy towards industry and commerce in the 1980s is presented as a case-study. Before the changes, the local policy was restricted to traditionally male jobs; afterwards, it included jobs for women such as 'distance-working' or telecommuting opportunities. The expansion of the local policy is explained by the population's request for work opportunities for women also, although the local image is still very masculine. The old jobs were considered to be traditional but technically qualified jobs. The new jobs were described by the local authorities as new but technically qualified jobs. The first judgement was supported 'by everyone' while the latter was opposed 'by everyone'. The failure to keep the image of technically qualified work connected to the new opportunities for distance-working is explained by the gender labelling of the new work tasks. As they were given to women, and traditionally women are by definition lacking in technical competence, it was not possible to give the work tasks a label of technology and qualification.     

Categories of Local Economic Development: An Empirical Analysis

In examining local economic development incentives, scholars have found it useful to employ typologies of development practices. Such typologies have been based on assumptions that techniques reflect functional categories, such as marketing and financial incentives, or can be organized by the nature of costs and benefits, or by the nature of incentive goals. While useful heuristic devices, little effort has been made to test these typologies empirically. This research note provides an empirically based typology of local economic development incentives, using data from 967 cities collected by the International City Management Association.     

The Role of Russian Big Business in Local Development

The paper, based in part on field surveys in 2006, examines the role played by large Russian companies in local development, focusing on the operations of SUAL and Severstal' in Northwest Russia. The two companies provide examples of different models of corporate behavior (transnational and paternalist) in the current Russian business environment, reflecting a choice more broadly between neoliberal and corporate-nationalistic versions of Russia's participation in globalization. The author investigates the implications of the different models for the local jurisdictions in which these companies operate. Journal of Economic Literature, Classification Numbers: D21, L20, O18, P20. 2 figures, 1 table, 48 references.     

Regional Development Agencies and Local Economic Development: Scale and Competitiveness in High-technology Oxfordshire and Cambridgeshire

Regional Development Agencies have been given the fundamental aim of improving their regions' economic performance and competitiveness. Supporting innovation is a cornerstone of this policy. This paper explores the limitations of region-based strategies arguing that this neglects the importance of policy intervention at the local level, using case studies of Oxfordshire and Cambridgeshire.     

Building Localized Interactions Between Universities and Cities Through University Spatial Development

Universities are important players in the global development of knowledge economy, alongside being significant contributors to the economic development of their host cities. They are both significant knowledge enterprises and the suppliers of the human and intellectual capital on which the knowledge-based economy depends. What seems under-explored is how deliberative partnerships between universities and city authorities can develop around projects of mutual benefit, especially based on campus development. In this paper, with the help of five case studies (QUT, MIT, Harvard, Twente and Newcastle universities), we investigate how the spatial development of universities can be one of the main meeting points between the city and university and how it can be used for stimulating economic development and managing growth. These cases show that university—city collaborative initiatives focused on the university properties represent a desire to produce creative and competitive new urban spaces, which reinforce the position of the university and the city in global economy. They also show that these developments need to be jointly managed to avoid undesirable impacts on either side.     

FDI and Local Economic Development: The Case of Taiwanese Investment in Kunshan

The extent to which foreign direct investment (FDI) can foster the long-term economic development of lagging regions remains a highly debated issue in the literature, even in the current era of intense territorial competition for mobile investment and resources. The emergence of new industrial spaces in China that have flourished through FDI offers a good opportunity to revisit the topic. Kunshan in Suzhou, China has evolved from an impoverished area into a world-class information technology (IT) centre within 25 years. FDI, mainly from Taiwan, has enabled Kunshan to gradually upgrade its economy, following a development path that has been largely based on the transplant of entire production chains from Taiwan. Local innovative strategies for attracting and increasing the embeddedness of Taiwanese FDI are also an important element of Kunshan's success. This paper discusses the positive aspects, as well as the potential costs and negative facets, of FDI in Kunshan, with the view to draw some policy lessons regarding the impact of FDI on the economic development of lagging regions.