Neoliberalism in a Small Canadian City? Windsor City Council and the Reform of the Detroit River Border Crossing

This article examines the idea of the neoliberal city. Using the reform of the Detroit River international border crossing between Canada and the United States as a case study, the article explores the extent to which a small- to medium-sized Canadian municipality is capable of developing policy positions that challenge neoliberalism. The conclusion is mixed. Windsor City Council is not advancing policies that present a fundamental challenge to the economic status quo. It does not, for example, challenge the rationale that a new border crossing will facilitate freer trade. Nevertheless, neither are the municipal council's positions completely in line with arguments that municipal governments have no room to advance positions in opposition to major economic interests. The council is advancing policy positions opposed by major local, regional and international business interests. There is, therefore, some evidence of the possibility of local agency within the geography of neoliberalism.     

Leaves in the wind? Local policies of small and medium-sized towns in metropolitan regions

Small and medium-sized towns (SMSTs) contribute to the economic performance of whole metropolitan regions. However, the variety of factors that influence the economic development of SMSTs is understudied and the impact and relevance of their local policies are especially unclear. This article studies local policies of SMSTs within the metropolitan region of Zurich (Switzerland) and the impact of local policies on the economic specialization of these towns. Switzerland serves as an interesting context in which to study SMSTs, particularly those in metropolitan regions, due to their constant growth and the high local autonomy enjoyed by Swiss local governments. Using a multiple case study design that relies on a pair-wise comparison, we find that the economic specialization of SMSTs can mainly be explained by factors that are exogenous to local policy-making such as the town’s location and its connectivity. Land-use strategies are the only local policies that can influence the economic specialization of SMSTs. Therefore, SMSTs are well advised to invest in professionalized land-use departments and to coordinate their land-use strategies with neighbouring jurisdictions.     

Medium-Sized Firms and the Limits to Growth: A Case Study in the Evolution of a Spin-Off Firm

This paper explores potential barriers to growth in key areas which can become increasingly problematic for some smaller to medium-sized firms (SMEs) as they grow and evolve from their early status as small scale spin-offs. These potential growth barriers can occur in: finance, competition from new firms or products and organizational integration of resources. Firms that fail to properly plan, manage and allocate resources will encounter difficulties in each area. Such firms are said to have poor 'governance systems'. While not proposing a universal theory about small firm behaviour, we argue that firms can encounter the same problems associated with poor communication, bureaucracy and loss of entrepreneurial spirit that plague large firms. We also show that the routines used to promote growth based on collaboration can sometimes create problems for firms as they ignore new challenges. We elaborate various theories on the limits to growth by examining the case of IV, a university spin-off.     

Global Metropolitan-Regional Scale in Evolution: Metropolitan Intermediary Cities and Metropolitan Cities

The case of Madrid is used as empirical focus to propose a new classification of the metropolitan region urban medium-sized or secondary city system. Based on a methodology that integrates the morphological (size, location and socioeconomic history) and the functional dimensions (centrality index, advanced producer services (APS) concentration and commuting), the article compares new employment centres—cities with metropolitan origin—and historical cities—previously free standing cities, progressively integrated in metropolitan processes. The results show a distinction between (1) metropolitan cities, with a traditional intermediation role, and (2) metropolitan intermediary cities, that include an additional quality to their traditional intermediation role, that of concentrating APS. The article confirms that some medium-sized cities—metropolitan intermediary cities—linked to different origins and up to 100?km away from the metropolis are more visible in the global scene and are establishing an emerging global multicore-network at a metropolitan-regional scale.     

The Geography of Knowledge Spillovers Between High-Technology Firms in Europe: Evidence from a Spatial Interaction Modeling Perspective

The focus in this article is on knowledge spillovers between high-technology firms in Europe, as captured by patent citations. The European coverage is given by patent applications at the European Patent Office that are assigned to high-technology firms located in the EU-25 member states (except Cyprus and Malta), the two accession countries Bulgaria and Romania, and Norway and Switzerland. By following the paper trail left by citations between these high-technology patents we adopt a Poisson spatial interaction modeling perspective to identify and measure spatial separation effects to interregional knowledge spillovers. In doing so we control for technological proximity between the regions, as geographical distance could be just proxying for technological proximity. The study produces prima facie evidence that geography matters. First, geographical distance has a significant impact on knowledge spillovers, and this effect is substantial. Second, national border effects are important and dominate geographical distance effects. Knowledge flows within European countries more easily than across. Not only geography, but also technological proximity matters. Interregional knowledge flows are industry specific and occur most often between regions located close to each other in technological space.     

The role of exogenous and endogenous factors in the growth of regions in Central and Eastern Europe: the metropolitan/non-metropolitan divide in the pre- and post-crisis era

ABSTRACT

The aim of the paper is to analyse regional growth factors in Central and Eastern European Countries in the pre- and post-crisis era. The comparison is focused on core (metropolitan) and non-core (non-metropolitan) regions. The study found that the development processes of the analysed groups of regions were in many respects similar. Achieving a high level of development in the context of post-socialist transformation was possible mainly owing to exogenous factors such as the influx of foreign direct investment (FDI) and multimodal transport accessibility. In the case of endogenous factors, the number of small- and medium-sized enterprises per capita was of cardinal importance for a high level of development, but it was no guarantee of fast growth dynamics in non-core regions. The main differences between the core and non-core regions included the role of human capital and migrations as metropolitan regions represented growth poles which trained qualified specialists and served as destinations for migrants from non-core regions. However, the share of people with tertiary education played an important role in the development process of non-core regions. The crisis strengthened the role of exogenous growth factors, that is, the role of FDI inflow as well as the role of EU funds.     

SMEs and Their Peripheral Innovation Environment: Reflections from a Finnish Case

As it has now been widely argued, innovation is ever more seldom the product of isolated firms but usually requires a combination of multiple technologies, skills and competences, part of which have to be acquired from outside the boundaries of the innovating firm. As the literature on regional systems of innovation and other territorial innovation models suggests, the region is the most appropriate spatial level for investigating and understanding the nature of firms’ external knowledge acquisition in their innovation processes, as well as for identifying the critical actors and factors contributing to them. Unlike the majority of studies focusing on the innovation activities of firms at the regional level, this paper focuses not on the actual importance of different location factors, but on the perceptions of small- and medium-sized firms entrepreneurs of the quality of different factors in their regional innovation environment. By identifying differences between the perceptions of innovative and less-innovative firms, this study contributes to the literature on innovation as a regional-level phenomenon, and also tentatively puts forward some managerial and policy implications, as well as suggestions for further research.     

Technological Innovation in China's High-Tech Sector: Insights from a 2008 Survey of the Integrated Circuit Design Industry in Shanghai

An intensive investigation of China's high-tech sector led by a noted Hong Kong—based geographer examines the patterns of cooperation between firms and local governments (so-called "state-firm strategic resonance") as an alternative to knowledge spillover in an effort to explain why certain firms are more likely to innovate than others within an economic cluster. As a case study, they select the integrated circuit design industry (a key in the development of more efficient computing and thus a critical element of the digital revolution) in Shanghai, one of the most advanced metropolitan regions in China. A systematic analysis of firm-level data obtained inter alia from the authors' 2008 survey and interviews revealed a significant pattern of variation in innovation that could not be explained by inter-firm interactions in the process of industrial clustering. The authors argue that the uneven pattern of technological innovation is contingent on a state-built institutional and market environment designed to stimulate firms' innovative activities, and demonstrate how firms respond to that environment in a Chinese metropolis. Journal of Economic Literature, Classification Numbers: H700, L630, O310, P230, R280. 5 figures, 7 tables, 57 references.     

Anchoring of Firms in the Neighbourhood: Does Local Social and Physical Order Affect Local Firms' Investment Strategies?

An increasing number of small- and medium-sized firms, whose low relocation propensity seems to point to strong local anchors, have moved to residential neighbourhoods. On the one hand, the neighbourhood context, an attractive production milieu with rich social network potential, may enable entrepreneurs to increase investments in either human capital (personnel) or physical capital (premises, production goods). These investments further anchor firms in a neighbourhood, where they contribute to a thriving local economy. On the other hand, high crime rates, a deteriorated physical environment and a lack of social capital can discourage entrepreneurs from investing locally. In this study, we conducted a multilevel analysis on the relative contribution of neighbourhood characteristics to entrepreneurial investment strategies and controlled for firm and entrepreneur characteristics. We found that neighbourhood cohesiveness and liveability—but not local market characteristics—make a small but significant contribution to explaining local entrepreneurs' investments. This contribution is even stronger for the smallest firms. Therefore, a spatially targeted policy aimed at improving social cohesion and safety is likely to benefit both residents and small local firms.     

HIGH-TECHNOLOGY JOBS AND WORKER MOBILITY*

ABSTRACT. The premise of this paper is that one can discover much about the location determinants of high-technology industry by examining the location (migration) decision of workers with high-technology occupations. A model of the high-technology worker migration decision is developed that permits estimation of worker response to both personal and area characteristics, the latter chosen to mirror location factors often cited by high-technology firms as important for both the attraction and retention of their specialized work force. Logit estimates of this model between 1975 and 1980 are presented. The paper is concluded with a discussion of policy implications.     

Changes in Land-Use Preferences of Small-, Medium- and Large-Scale Industries Located in Metropolitan Areas (Case Study in Istanbul)

In metropolitan areas, the changing spatial land-use preferences of the industrial sector are the most important determinants in the forming of the macro-form. Metropolitan areas, especially in developing European and Asian countries, become troubled cities with agglomerations of population and investment as a result of failures to apply satisfactory macro-policies and plans throughout the country. Industrial investments on various scales and the land-use preferences of investors have changed over time. The land preferences of production and headquarters of the manufacturing sectors have become basic determinants in the formation of settlement systems due to the transformations that occur alongside technological, economic and social development. This article examines whether or not the basic land-use criterion of the manufacturing sector changes in small-, medium- and large-scale businesses according to their labour structure, defined through an examination of the sectoral structure and relations of scale. Taking the increasing rate of the Gross National Product of the industrial sector in metropolitan areas in every country into account, and examining the land-use preferences of various industrial sub-sectors and scales will serve as an important input when making new planning decisions. The industrial land-use criterion will be effective in the transformation, reorganization or directing of new focuses for the agglomerated industrial structure, especially in Istanbul, which features both Asian and European metropolitan area characteristics. This article will define the existing industrial structure of the Istanbul metropolitan area; and differences between the various scales of land-use preferences within industrial investments will be presented, based on the findings of two investigations carried out over a 5-year period. Several important criteria for industrial investors seeking to establish themselves in metropolitan areas will be determined in the article.     

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.     

The Toulouse Cluster of On-board Systems: A Process of Collective Innovation and Learning

Analysis by product or by type of activity is becoming less and less pertinent when characterizing the production organization of industrial clusters and local productive systems. In numerous regions and metropolitan areas, the way that economic activities are based geographically reveals relationships which go across different sectors of activity, on the basis of the similarity of skills required. At Toulouse, on-board systems, mainly sets of equipment composed of electronic and computer components integrated into an aircraft, a satellite or an automobile, were first developed on a sectorial basis before becoming progressively the subject of transverse skills and knowledge between the different industrial sectors (aeronautics, space, automobile electronics). Today this system is tending to consolidate on the basis of positive externalities such as the sharing of common subcontracting of information technology services, the collaboration of industrial firms with engineering science institutions, the circulation of personnel within the local labour market. To this must be added a strong institutional input which is manifested by the addition of an “on-board systems” section to the Competitive Cluster “Aeronautics and Space” common to the Midi-Pyrenees and Aquitaine regions. In the case of Toulouse, the “on-board systems” activities form the basis of a local organization of these high-technology activities into a local skills system.     

High-Tech Firms’ Location Considerations within the Metropolitan Regions and the Impact of Their Development Stages

The determinants of firms' location choice have changed over time, in particular in the high-tech industry. Few studies that investigate the factors that influence firms' location decision distinguish between firms in their early stages of life cycle and more established high-tech firms. This study identifies the considerations prioritized by high-tech firms in both categories in the process of choosing a location within a metropolitan region for establishing or relocating their business. The intra-metropolitan competition for high-tech plants was examined using data gathered through field surveys of managers of such firms in the Tel-Aviv metropolitan region. The findings shed light on the importance ascribed to internal and external factors in the decision on location made by the firms' managers.     

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.     

Ruhr Firms between Dynamic Change and Structural Persistence – Globalization, the 'German Model' and Regional Place-Dependence

This paper¹ investigates recent restructuring strategies of medium-sized firms in the Ruhr area, and assesses the role of institutional, organizational and socio-economic factors in shaping their strategic responses to economic change. By pointing out the extent to which embeddedness in different political-economic contexts constrains the expansion of organizational space, it is argued that medium-sized firms respond by falling back on routinized, predominantly regional, interaction structures. 'Embedding' and cooperation are, however, constrained by market forces and competitive pressures, which manifest themselves in various governance dilemmas. Solving these dilemmas between institutional persistence and 'economic imperatives' constitutes a major organizational challenge for the sample firms.     

Commercializing Science in Europe: The Cambridge Biotechnology Cluster

The article examines the variety of linkages firms have established with university science. These include using universities as a source of ideas for start-ups, scientific collaboration between firms and laboratories, the role of scientists on the scientific advisory boards of firms, and the role of universities in supplying firms with a labour market for talented scientists. These linkages are plentiful across Cambridge area biotechnology firms. However, and perhaps surprisingly, our evidence shows that a key actor, the University of Cambridge does not dominate the scientific linkages of the area's firms. A large percentage of Cambridge's firms do not derive from its university. The majority of scientific collaborations are not with University of Cambridge laboratories, nor do Cambridge scientists dominate the scientific advisory boards of firms. Moreover, the majority of scientists within area biotechnology firms appear not to have left University of Cambridge laboratories to move to industry.     

Benefitting from Learning Networks in “Open Innovation”: Spin-off Firms in Contrasting City Regions

R&D and innovation increasingly take place in networks that extend beyond the boundaries of a single firm, with customers in an important role in the learning processes involved. This phenomenon is captured by the term “open innovation”. Advantages of open innovation encompass cost reduction and an increased competitiveness. Spatial innovation theory however indicates that the potential of open innovation is not the same for all urban regions, there may be differences between large metropolitan areas and small cities. In this context, the authors compare university spin-off firms in two contrasting urban regions in Europe, Delft in the Netherlands and Trondheim in Norway (a metropolitan area versus an isolated city) with regard to the profile of their learning networks and the contribution of these networks to growth. Learning networks appear to differ in structure and strength, in spatial configuration and also in the influence on job growth. Thus, networks in Delft (in a large metropolitan area) tend to be stronger compared to those in Trondheim (isolated city), whereas the influence of network strength on growth tends to be negative in Delft but positive in Trondheim. Overall, firms in Trondheim tend to rely more on own resources and capabilities and less on learning networks in open innovation.     

Balancing London? A Preliminary Investigation of the “Core Cities” and “Northern Way” Spatial Policy Initiatives Using Multi-City Corporate and Commercial Law Firms

This paper reports a preliminary investigation into the economic efficacy of two spatial frameworks—English Core Cities and the Northern Way—recently promoted by national policy makers. We ask whether they are consistent with contemporary economic process in the UK space economy through analyses of commercial multi-city law firms. The latter are treated as an “indicator sector” to define the contemporary UK space economy as practised by law firms. Within this new space of flows, the location strategies of the law firms do confirm the salience of the Northern Way (as trans-Pennine corridor) and Core Cities as part of a larger UK metropolitan space of flows. Conflating the two spatial frameworks leads us to identify hints of a rebalancing of London within a metropolitan UK space. A Manchester polycentric mega-city region is found to be the likely candidate for this role. This finding in no way impinges on London's dominant global role, and we conclude that perhaps mutuality between London and provincial cities is beginning to replace past negative dependency relations.     

The Economic Performance of European Cities and City Regions: Myths and Realities

The ever-increasing concentration of people and economic growth in the largest cities relative to the rest of the country has slowed down or even reversed in many of the developed European countries over the last decade. This trend contradicts what the global cities, urban economics and new economic geography literature would predict. This trend can be interpreted from two points of view: (1) the trend is due to large obstacles to further large city urbanization and thus is inefficient or (2) this trend highlights alternative pathways to growth than the mega-city approach and may be as, if not more, efficient. This trend may be linked to Europe's uniquely polycentric urban structure with high number of small- and medium-sized cities. In addition, improvements in the access to services, including broadband, outside large cities may have facilitated the higher growth rates of smaller centres and rural regions and increased their appeal for residents and firms. Last but not least, negative externalities in the large cities, such as congestion costs, pollution, labour crowding and high cost of living, may increase the appeal of smaller centres and rural regions.