Employment Dynamics on Business Estates

The central question of this paper is: “What is the magnitude of different forms of employment dynamics on business estates in the Netherlands between 2000 and 2005 and to what extent are the employment dynamics on business estates different from employment dynamics in general?” In order to answer this question, we examine three kinds of local employment dynamics: (1) entries and exits, (2) inter-municipal relocation and (3) the growth/decline of existing firms. We find that new firm formation and inter-municipal relocation do not lead to employment growth on business estates. However, the in situ employment growth on business estates is higher than the general employment growth in the Netherlands. Therefore, it can be concluded that business estates play an important role in local employment dynamics by facilitating the growth of incumbent firms.     

A THEORETICAL FRAMEWORK FOR SMALL BUSINESS POLICY

A number of public policy issues have been discussed in this article, the most important of which are: 1. Small business would not need special consideration if our economy were basically a competitive one. 2. A large and growing segment of our economy has sufficient market and political power to make our economy basically non-competitive. 3. Small firms tend to provide price competition, to lead in the development of new products and processes, and to generate new innovations and new employment. 4. Government policy tends to create artificial economies of scale, giving an unwarranted advantage to the very large firm. As a first approximation, a policy of government neutrality on firms of varying size is needed. But, because of discriminations which already exist which favor large firms over small firms, special small business programs may be necessary to provide an equitable policy base. Unfortunately, programs designed to benefit all business, like the investment tax credit, tend to primarily benefit larger firms (Berney, 1979). This is the case for two reasons. First, there is a basic difference in production relationships: large firms tend to be more capital intensive and small firms more labor intensive. Second, the more complex a rule or regulation, the more costly it is for small business to use it. Consequently, even the employment tax credit, which should benefit the small firm is not used by them. Instead, it tends more to benefit the larger firm. Neutrality, as a governmental policy, would appear to demand different treatment for firms of varying size. As an example, the “regulatory flexibility” concept applies different standards to different sized firms so that the burden of regulation is more equitably distributed. The concept of encouraging or requiring financial institutions and other lenders to establish “dual prime rates” is a further example. Since small firms appear to have much higher debt to equity ratios and rely more heavily on shorter-term bank credit, they are more heavily burdened by a tight money policy which forces increases of interest rates. Thus, dual prime rates help to spread the burden of rising interest costs more equally. As many people prefer to work for themselves, equalizing the burden of government policy could only serve to increase the basic growth rate for small business, thus providing an easier start for entrepreneurs and would encourage a more rapid rate of economic growth. None of these discussions, however, argues that small business should be protected from failure. The more efficient firms will succeed and prosper, and the least efficient will not. Many currently successful entrepreneurs learn how to improve their production processes or managerial skills from their failures. What is being recommended as a first step is that government should concentrate on equalizing burdens and benefits in order to achieve true neutrality. If private economies of scale do indeed exist, new firms must grow to survive; what the government should not create are artificial economies of scale with public policy. A strong argument for further action can also be made: it appears that significant external benefits are produced by an economic system with a dynamic small business sector. Since these benefits go to society as a whole rather than entrepreneurs alone in the form of increased profits, a freely operating market without government assistance does not generate as many new small businesses as would be optimal for our society. To internalize the benefits that come from small business, governmental programs need to be devised to increase the rate of return on new, innovative small businesses. Should this happen, we could then anticipate increased rapid rates of innovation and technological change, more rapid rates of employment growth, expanded price competition in all sectors of the economy, and improved export capabilities, in short, true flexibility in our capitalistic system.     

CREATIVE INDUSTRIES IN THE NETHERLANDS: STRUCTURE, DEVELOPMENT, INNOVATIVENESS AND EFFECTS ON URBAN GROWTH

Creativity is central in stimulating economic growth in cities, regions and advanced capitalist economies in general. There is, of course, no one-to-one relation of the number of firms in creative industries to economic growth. Innovation is a key mechanism explaining the relationship of creative industries with economic performance. Based on an empirical study in the Netherlands we explore the effect of creative industries on innovation, and ultimately on employment growth in cities. In the Netherlands the three specific domains of creative industries - arts, media and publishing, and creative business services - make up 9 per cent of the business population. Drawing on survey data we find that firms in creative industries are indeed relatively innovative. Yet substantial differences are found across the three domains: firms in the arts domain are clearly less innovative, most likely due to a different (less market-oriented) dominant ideology. In addition, firms in creative industries located in urban areas are more innovative than their rural counterparts. We go on to analyse how the concentration of creative industries across cities is connected with employment growth. With the exception of the metropolitan city of Amsterdam, we find no measurable spill-over effect from creative industries. The presence of the creative class (in all kinds of industries other than creative ones) appears to be a much stronger driver of employment growth than creative industries.     

New venture high growth in high-tech environments

The aim of this article is to understand the triggering factors of new firm growth in high-tech environments (life science, knowledge-intensive business services [KIBS] and engineering) by studying a representative sample of high-growth Italian start-ups. Our empirical research uses the information gathered during direct interviews with managers through a semi-structured questionnaire, which was presented to 382 new Italian firms. Considering the characteristics of new firms, this article summarizes the key growth factors. Investment in acquiring new competencies both in technology and marketing, development of dynamic capabilities (investment in human resources and new routines) and access to external knowledge and information sources emerged as significant.     

Promoting Innovative Clusters through the Regional Research Centre (RRC) Policy Programme in Korea

This article deals with government policies to promote innovative clusters in which firms and related supporting institutes closely interact and stimulate the innovation process. It argues that the Korean government has taken various types of policies in the process of developing clusters. The Regional Research Centre (RRC) policy programme and the Semiconductor Equipment Research Centre (SERC) of Hoseo University are case studies. The RRC programme aims to establish a regional research network among research agents having a common interest in regionally specialized technologies, and to strengthen their technological capability. The SERC, established in 1996 as one of the RRCs, has played a successful role as the government intended. The local business environment wherein user firms and suppliers were scattered and fragmented was greatly improved as the result of the active role of the SERC.     

One Size Fits All? Applying the Creative Class Thesis onto a Nordic Context

The creative class thesis put forward by Florida [(2002a) The Rise of the Creative Class and How it's transforming Work, Leisure, Community and Everyday Life (New York: Basic Books)] has in recent years been subject to vivid debate and criticism. This article applies the creative class thesis onto a Nordic context in order to examine whether Florida's theory proves fruitful in a context different from the US. Based on qualitative data, the paper analyses the role of people climate and business climate for the location of the creative class and firms in three different kinds of regions in four Nordic countries. The analyses demonstrate that the people climate tends to be of secondary importance to the business climate in explaining the location of the Nordic creative class. This should be seen as a result of the urban hierarchy within the Nordic countries as well as a strong welfare policy, which ensures an equal distribution of public provision and supports dual career households. Together, these factors diminish the role of people climate for location choices. The study also finds that the notion of people climate has different meanings in various places, and what attracts or repels the creative class depends on the life phases of the members of the creative class. The study raises concerns about the potential for applying the creative class approach beyond large city regions, which limits its usability in regional planning.     

Supplier linkages of foreign-owned manufacturing firms in the UK: the influence of entry mode,subsidiary autonomy and nationality

This article tests the hypothesis that the supplier linkages which subsidiaries of foreign-owned companies make with indigenous firms in the UK are influenced by entry mode, the amount of autonomy which is granted to the subsidiary which is established and the nationality of the parent company. Data were collected from foreign-owned firms in the UK and an ordered probit model with the change in supplier linkages as the dependent variable was devised and tested. The results provide support for the hypothesis in terms of entry mode and subsidiary autonomy, but not in terms of parent nationality. This study represents a new approach to the study of supplier linkages and integrates concepts and studies from both regional science and international business. Foreign-owned firms which entered the UK by means of a greenfield entry tend to have a relatively positive effect on the creation and growth of supplier linkages, whereas those which entered by way of a merger or acquisition tended to have a relatively negative effect on the growth of such linkages. This finding has important implications for academics and policy-makers alike. Although the potential impact which the creation of supplier linkages can make upon the host country's economy has long been recognised, little research has been undertaken to identify the key factors which affect such growth. With increased levels of globalisation it is important that governments are able to maximise the impact which foreign direct investment makes upon the economy of their countries.     

THE ALTERNATIVE

Information agencies set up for business-friendly opinion moulding in Sweden worked actively with similar organizations in the Nordic countries to formulate a pro-business ideological programme after the Second World War. The intent of this so called ‘Alternative’ was to counteract social democratic ideas of a more state-planned economy. This article contributes to earlier research on how business interest associations in corporatist countries responded to the development of the welfare state in the Keynesian era. Over time, the programme became less about taking an ideological stance in defence of free enterprise and more about dealing with the economic consequences of record growth. Business involvement in cartelization proved difficult to combine with arguments for free competition, free markets, and non-regulated prices. Collaboration as well as new institutions for both formal and informal discussions between labour and capital during the 1950s and 1960s, at least in Sweden, seems to have reduced the sense of urgency for an ideological programme for business. In the end, no Nordic business programme was ever realized.     

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.     

SPATIAL DISPERSION OF TECHNOLOGICAL INNOVATION: A CASE STUDY FOR THE NETHERLANDS BY MEANS OF PARTIAL LEAST SQUARES*

ABSTRACT. In this paper the impact of spatial and nonspatial variables on the innovation potential and innovativeness of (small) industrial firms in The Netherlands will be analyzed. Innovation potential and innovativeness will be conceived as latent variables which will be measured by a partial least squares approach. The variables reflecting innovation potential are notably input variables such as internal and external R&D, while innovativeness will be based on output indicators such as the number of product and process innovations. The regional dimension enters our analysis essentially at two levels. First, we will investigate whether more innovative firms are to some extent spatially biased (i.e., on the basis of intrafirm characteristics). Secondly, we will analyze the relevance of an indigenous regional impact, per se. In other words, we will examine whether firms with an equal innovation capacity will differ in actual (i.e., realized) innovativeness as a consequence of different regional conditions. For the first issue, our results indicate that not all regions are equally well-endowed with potentially innovative (small) firms. Our analysis even demonstrates that these firms are underrepresented in regions which are generally considered to offer the most favorable production environment. After compensating for these differences in the composition of the regional set of firms, we demonstrate that an indigenous regional impact per se cannot be identified in The Netherlands.     

Geographies of relational coordination in venture capital firms

ABSTRACT

Venture capital (VC) firms are crucial actors in entrepreneurial ecosystems. Through the development towards a digital economy, they have gained further relevance, which caused the VC industry to diversify in terms of business models. This article offers a new heuristic to study the VC industry by developing a classification of VC firms. By drawing on a framework of different dimensions of relational distance in investment relations, different types of relational coordination are identified by comparing VC firms in Germany. The types of VC business models are found to produce relational geographies of investing as they relate with their portfolio startups in different ways. A relational perspective on VC thus provides the opportunity to step beyond pure territorial approaches on VC.     

Economic Policy and Women’s Informal Work in South Africa

This article examines the gender dimensions of the growth in informal and flexible work in South Africa and the government’s policy response to this. It outlines the growth in informal and flexible work practices and, as illustrative examples, analyses how trade and industrial policies and labour market policies are impacting on the growth of informal and flexible work. It is argued that the South African government’s trade and industrial policies are shifting the economy onto a path of capital intensification. Allied to this, firms are undergoing a process of extensive restructuring. These developments are further promoting the growth of flexibilization and informalization, and thereby disadvantaging women. The article demonstrates that whilst the government offers a vast package of support measures to big business, its policy is largely irrelevant to the survivalist segment of small business, where most women in the informal economy are to be found. The picture for labour policy is more diverse. Aspects of the labour legislation are promoting the growth of a dual labour market, whilst there seems to be some tightening up of practices aimed at bypassing aspects of the protection provided to workers.     

Climate change perceptions and responses in Scotland's ski industry

The negative impacts of climate change for the ski industry have been well documented. However, research has largely focused on key ski markets in North America and Continental Europe. The study presented in this paper addresses climate change perceptions and responses in the more marginal ski destination of Scotland. Using a qualitative, interpretivist methodology, this paper contributes through a local-scale, single-site study of a ski area where technical adaptations are not utilised and which therefore relies on business responses to climate change. Findings suggest that while local weather is perceived to be a large and unmanageable risk to the industry, and a downward trend is identified in terms of snow reliability, these risks are not perceived to be connected to the wider anthropogenic climate change discourse. Waiting for knowledge to increase before taking adaptive action appears to be the most popular business strategy; however, autonomous adaptation is taking place in the form of business diversification, which mitigates against risks including, but not limited to, climate change. This paper concludes that experiences and perceptions of climate change will be highly localised and as a result so too will adaptive behaviours. Marginal ski destinations such as Scotland will be facing a range of non-climatic impacts which will contribute to their contextual vulnerability to climate change and capacity to adapt.     

The widespread occurrence of Celtic field systems in the central part of the Netherlands

The detailed elevation model based on airborne laser altimetry (AHN) proved to be a reliable tool to detect well-developed Celtic field systems, characteristic arable plots of the Iron Age. They were detected in the central part of the Netherlands, where only a limited number of Celtic field systems have been recognized in the past. Most of these previously detected systems were identified in the northern part of the Netherlands or in the southern part, but not in this zone. About 1200 ha of well-developed systems could be identified by AHN in the central part of the Netherlands, of which only 136 ha were registered as an archaeological monument. Another 335 ha of archaeologically identified Celtic field systems were not accepted or recognized by AHN, because they were morphologically less well-developed. Most of the around 1050 ha new discoveries occur in rough vegetations and forested areas, and can hardly be identified with previously used geodetic methods and aerial photography. Less well-developed or preserved systems were even more extensive and remnants were traced as fossil arable layers below plaggen soils or on lower slopes incorporated in mediaeval reclamations. The newly identified Celtic field systems, therefore, can be considered as remnants of much larger areas once covered with these arable plots. In the central part of the Netherlands, the estimated area once covered was at least around 4500 ha, more than enough to supply 10,000 people with cereals. Well-developed Celtic field systems started to develop in the late Iron Age with formation intensifying during the early Roman Period. The central part of the Netherlands is situated just north of the river Rhine, the former boundary of the Roman Empire, the Limes. The newly discovered extent of Celtic field systems will have influenced the interaction between different cultures on the border of the Roman Empire in the early Roman Period, about which very little is known. This perspective underscores the need for an integrated conservation policy and in-depth research through excavations in the near future.     

The Role of Location and Regional Networks for Biotechnology Firms in Israel

This article presents results of a study of the Israeli biotechnology sector. The findings of the study show that despite the small geographical size of the country, the Israeli biotechnology industry tends to a great extent to cluster around leading research institutes. Based on a survey of 109 high-tech projects, the study suggests that the relatively weak business background of the entrepreneurs, the fact that most of them have worked at research institutes and that most new biotechnology firms were originated from ideas that came out of universities or research institutes, can provide possible explanations for this geographical concentration. The research emphasizes the relative importance biotechnology entrepreneurs ascribe to networking, both in very early stages as well as in advanced stages of the firm development process. It is argued that although the focus of the network changes over time, both geographically and in content, its links to local research partners are maintained. It is suggested that earmarked regional support policies are crucial to the development of networks required by new biotechnology firms.     

THE DYNAMICS OF SUBCENTER FORMATION: MIDTOWN MANHATTAN, 1861–1906

Midtown Manhattan is the largest business district in the country. Yet only a few miles to the south is another district centered at Wall Street. This paper aims to investigate when and why midtown emerged as a separate business district. We have created a new data set from historical New York City directories that provide the employment location, residence, and job type for several thousand residents in the late‐19th and early‐20th centuries. We supplement this data with additional records from historical business directories. The evidence suggests that early midtown firms appeared there in order to be closer to local residential customers who had been moving north on the island throughout the 19th century. Once several industries appeared in midtown, it triggered a spatial equilibrium readjustment in the 1880s, which then promoted the rise of skyscrapers in midtown around the turn of the 20th century. This process occurred several years before the opening of Grand Central Station in 1913.     

Economic statecraft in China's new overseas special economic zones: soft power,business or resource security?

China's rapidly growing economic engagement with other developing countries has aroused intense debates, but these debates have often generated more heat than light. The Chinese government is clearly pushing its companies to move offshore in greater numbers, and state‐owned firms figure prominently in many of the major investments abroad. Yet relatively little research exists on when, how and why the Chinese government intervenes in the overseas economic activities of its firms. China's state‐sponsored economic diplomacy in other developing countries could play three major strategic roles: strengthening resource security, enhancing political relationships and soft power, and boosting commercial opportunities for national firms. This article examines China's programme to establish overseas special economic zones as one tool of Beijing's economic statecraft. It traces the process by which they were established and implemented, and investigates the characteristics of the 19 zones initially selected in a competitive tender process. The article concludes that even in countries rich in natural resources, the overseas zones were overwhelmingly positioned as commercial projects. Particularly in the Asian zones, China is following in the footsteps of Japan. The zone programme, and the Chinese foreign investment it hoped to foster, represents a clear case of the international projection of China's developmental state. However, in Africa (but not generally elsewhere) discourse surrounding the zones publicly positions them as a transfer of China's own development success, thus potentially enhancing China's political relationships and soft power on the continent.     

FIRM SIZES AND ECONOMIC DEVELOPMENT: ESTIMATING LONG‐TERM EFFECTS ON U.S. COUNTY GROWTH, 1990–2000

This paper investigates the role of the business size distribution on income and employment growth in U.S. counties from 1990 to 2000. We measure the business size distribution as the share of employees across nine establishment size categories that range from microfirms (one to four employees) to large firms (1,000+ employees) and using three indices similar to a Gini coefficient. Results show that the business size distribution has a significant impact on county‐level growth patterns. Employment shares in small firms increase employment growth, but decrease income growth. One possible conclusion suggests policies emphasizing small firms and entrepreneurship during times of high unemployment.     

THEORIZING GLOBAL BUSINESS SPACES

Over the last decade, geographers have paid a great deal of attention to transnational firms (TNCs) and global production networks (GPNs) in the global economy, to the emergence of a mobile transnational business class and also to the development of global or globalizing cities. All three literatures have made important contributions to understanding the spatiality of global economic activity, but each adopts a fairly discreet theoretical and empirical focus. This article aims to outline a number of theoretical dimensions for thinking about how these key strands to the globalization debate can be brought together through the concept of global business spaces. It will propose a framework for understanding the spatialities of global economic activity that seeks to capture the complex interaction of material, social, organizational and virtual spaces that form the context through which it is constituted. With reference to business travel as a key form of economic practice which plays a central role in (re)producing these spaces, it assesses how these emerging spaces of global economic activity present problems for the conceptual categories commonly used by both urban and economic geographers. In so doing, it proposes a series of ways in which a different research agenda can produce new insight into the complex forms of social practice at the centre of global economic activity.