Industrial Policy in Wallonia: A Rupture with the Past?

One of the main issues facing almost all European regional policy-makers is how to ensure a smooth adaptation of their industrial structure in the face of changing societal and technological parameters. In the case of the Belgian region Wallonia, industrial decline has particularly marked the economy during recent decades and the need to promote structural change has been a central preoccupation of national and, subsequently, regional governments. At the same time, the highly complex system of governance in Belgium renders the definition and application of a coherent regional industrial policy difficult. This paper explores the development of industrial policy in the Walloon region with particular attention to the period since 1990 and the pertinence of the instruments and delivery mechanisms with respect to the underlying structural issues facing the regional economy. The paper is divided into four sections: the first offers a historical profile of the industrial development of the Walloon economy and in particular identifies some of the factors which provoked a serious structural crisis. The section reviews the economic impact of the successive phases of rationalization and diversification which have taken place since the 1970s and discusses how the industrial strategies adopted by the business sector and supported by the regional government have influenced the speed of economic regeneration. The second section considers the complex federal system of government in Belgium and how it influences the freedom of action for regional industrial policy. The governance of the economy by the numerous public or semi-public institutions active in the field of industrial policy is a crucial issue. A critical review of the main initiatives, instruments and targets of industrial policy in Wallonia is offered in section three, while the paper concludes by contrasting the Walloon industrial policy with initiatives taken in the neighbouring area of South-West Flanders and ponders the issue of whether in the end the key factor arresting the development of Wallonia is the insufficient level of 'social capital'.     

Smart specialization and institutional context: the role of institutional discovery,change and leapfrogging

ABSTRACT

Recent years have witnessed much experimentation with smart specialization strategies (RIS3) and entrepreneurial discovery processes (EDPs) in European regions. The EDP can be seen as an opportunity to address institutional questions. Because institutional patterns can explain why some policies are eventually successful while others are not, looking at the institutional context of regional economies can increase the effectiveness of regional policy. This article argues that the EDP functions as a framework to discover institutional patterns specific to a regional economy, and to define policies either consistent with existing institutions or aiming at institutional change. The article proposes a conceptual framework to understand and analyze the two institution-related roles of the EDP, first as an institutional discovery process and second as an institutional change process. The article builds on empirical case studies in two regions (Lower Austria, Austria and South Tyrol, Italy) and two small countries (Slovenia and Croatia). The case studies focus on how these regions or countries organized the EDP that eventually led to the formulation of their RIS3, and on the institutional dynamics of the EDP in discovering and changing institutions. The article concludes with policy implications that contribute to the debate on post-2020 EU Cohesion Policy.     

Twenty‐first Century Industrial Policy in a Small Developing Country: The Challenges of Reviving Manufacturing in Rwanda

The Rwandan government — widely lauded for its political commitment to development — has refocused its efforts on reviving growth in the manufacturing sector. This article examines how pressures from different levels — international, regional and domestic — have shaped the evolving political economy of two priority sectors (apparel and cement). To achieve its goals of manufacturing sector growth, the Rwandan government aims to access foreign markets (on preferential terms) and larger regional markets while developing effective state–business relationships with locally based firms. Despite the government's political commitment to reviving its manufacturing sector, its strategy has been both shaped and impeded by shifting pressures at the international level (through Rwanda's recent suspension from the African Growth and Opportunity Act), the regional level (through competition from regional firms) and the domestic level (through over‐reliance on single firms). Within the current industrial policy literature, there is limited reflection on how developing countries are dealing with the multi‐scalar challenges of enacting industrial policy in a much‐changed global trading environment. This article contributes to the industrial policy literature by addressing this lacuna.     

Knowledge Production in European Regions: The Impact of Regional Strategies and Regionalization on Innovation

In the last 15 years, the regional scale was used to implement innovation strategies in European Union. Departing from the discussion of the relevance of innovation policy at the regional level, the article benefits from the knowledge production function framework to estimate patterns considering 175 European regions. It is intended to understand whether regional innovation strategies developed and applied between 1994 and 2001 were successful at an aggregated level in contributing for knowledge creation measured in terms of patents and high technology patents. The results underline the relevance of private R&D expenditure and medium and high technology employment to increase patent numbers. The models suggest also that administrative regionalization may be important to regional innovation and that the creation and implementation of a regional strategy have a positive contribution for high tech innovation.     

Patterns of Regional Inequality in Transition Economies

This paper provides a comparative account of important aspects of regional development in transition economies, on the basis of regional statistics available for Poland, Hungary, Romania and Bulgaria. More specifically it examines the geographical pattern of disparities, the convergence/divergence trends that have taken place at the regional level and the relation of regional disparities to the process of transition. It is found that spatial adjustments under transition favour metropolitan and western regions, especially in countries sharing common borders with the European Union (EU) and being a short distance from the European core. In addition, disparities have increased at various rates and degrees in transition countries to levels that are higher than most of the EU countries. Given that the catch-up process, which favours more often efficiency than equity policies, has a long way to go, the regional problems in these countries may take alarming, by EU standards, dimensions.     

Regional Policy in Transition - A Multi-level Governance Perspective on the Case of Denmark

Denmark would appear to be a radical, but overlooked, example of the general Western European trend away from national top-down schemes towards a situation where regional policy is a multi-level activity in which European and regional actors are heavily involved. In order to analyse such transformations the article first proposes a conceptual framework capable of accounting for different forms of regional policy and their interaction, and then applies it to the Danish case. The analysis of inter-organizational relations, strategies and resource dependencies show that in Denmark the new paradigm in regional policy resembles a decentralized form of industrial policy in which regionally-based actors play a major role via their organizational and informational resources, but that central government still plays a major role as a regulator of the activities of other actors within a multi-level institutional setting.     

'Institutional thickness', political sub-culture and the resurgence of (the 'new') regionalism in Italy – a case study of the Northern League in the province of Varese

In recent years, the 'regional scale' within the European Union (EU) has become more central within academic and policy debates. In particular, there has been an increased focus upon the importance of so-called 'institutional thickness' for regional development within the EU. Furthermore, the fact that in several European countries, regionalist political parties have made significant electoral gains has ensured that the 'regional question' in Europe has become even more prevalent. This paper explores the linkages between institutions and regionalist political parties by focusing upon the situation in Italy where the resurgence of political regionalism, centred on the Lega Nord (LN) or Northern League political party, has been particularly strong. In particular, the paper focuses upon the development of the LN in a particular province of Northern Italy, Varese. This section explores the ways in which the LN has developed institutionally and electorally and indeed whether the party has been able to develop a specific political sub-culture to replace the previous one associated with the Christian Democrat (DC) party, which was the main party in Varese before the landmark changes that took place in Italian politics in the early 1990s.     

Smart specialization as a strategy to develop early-stage regional innovation systems

ABSTRACT

This paper discusses the role of smart specialization in catalyzing the development of early-stage regional innovation systems in less advanced regions, either by facilitating the emergence of some defining elements that were lacking or accelerating the development of others, such as: a regional knowledge base and a dynamic learning process, institutional structures, network integration mechanisms among key innovation actors, regional industrial specializations, and collective identities. The paper exemplifies this process with the case of Romania, a country where the research and innovation system is centralized at national level and regional innovation systems are in the early days. The transformations taking place in the Romanian regions within the process of implementing smart specialization, assisted by the European Commission's Joint Research Centre in the project “Targeted Support to Smart Specialization in Romania”, suggest a dynamic coagulation of institutional, financial, policy, and human factors that catalyzed the development of regional innovation systems in the country and introduced a novel approach to innovation policy.     

Mapping cultural policy in Portugal: From incentives to crisis

Abstract

Taking into account the course of cultural policy in democratic Portugal, and against the backdrop of the international crisis of 2008 and the sovereign debt crisis of 2011, this article seeks to interpret recent changes in the cultural sector in Portugal. Using both qualitative and quantitative methods it focuses on three main aspects: institutionalisation of democratic cultural policy; government funding; cultural organizations and facilities. The 2008 crisis put an end to a period in which investment tended to grow. We place Portugal in the broader European context, concluding that the Portuguese cultural scene may once again diverge from that of other European countries.     

Regional Innovation Systems and European Research Policy: Convergence or Misunderstanding?

In this article the question of interfacing, innovation policy and regional policy at the European level is addressed. Under which conditions will the new European research policy, relying on networks of centres of excellence, be compatible with 'cohesion' objectives? Since there will be no unique regional development scheme based on science and technology, how can policy-makers take into consideration the variety of local contexts? The analysis focuses on the fact that the concept of regional innovation system can be misleading for describing the territorial context. However, a cognitive approach seems possible, based on the notion of regional competence to innovate. The analyses are illustrated with empirical results concerning the French regions, and especially Alsace.     

Failing to live up to the promise: the politics of equal pay in ‘new’ workplace and industrial relations institutions

Workplace and industrial relations regulations are key sites for policy intervention to address Australia's gender pay gap, which, at 15.3 per cent, is almost as large as it was in 1997. In both the Fair Work Act 2009 (Cth) and the Workplace Gender Equality Act 2012 (Cth) the goal of equal pay has a more central place than it did in predecessor legislation. In particular, the Fair Work Act has the potential to deliver more gender-equitable wage structures through addressing systemic gender-based undervaluation at the industry level. Adopting a feminist institutional approach this article examines equal pay policy in the operations of workplace and industrial relations regulation to ask why, despite some recent successes, this potential appears unlikely to be realised.     

The single European market: Institutions and economic policies

The article analyzes the need for clarification of the competencies to be attributed to national or local authorities in Italy in the face of new protagonists for economic development. Analyzing the structural problems and the regional disparities between European countries, the territorial dimension of the economic development policy, the example of the German political and administrative system and the principles of the new community approach, it points out the importance of recognizing the regional level of industrial policy. In particular, the article underlines the fact that the present variation between the north and the south of the European Community is certainly the result of a plurality of conditions, whose presence presupposes a stable social and institutional reality, motivated towards development which cannot be guaranteed by the lack of an efficient local public system, endowed with adequate resources and competence to deal with new processes of development.     

Moving Towards An American Industrial Technology Policy

While the term "industrial policy" has come to be associated by many Americans with too much government involvement in private markets, the United States is nevertheless moving rapidly towards a more active and explicit industrial technology policy. The American policy is certainly different from those of Japan and Western Europe; but the recent emphasis on civilian technology and targeted manufacturing sectors, along with the continuing efforts of state-level technology programs, add up to a much more coherent industrial technology policy than in the past. Although this trend comes at the end of the Cold War and is related to defense conversion efforts, it is part of a larger trend tied to increasing pressure in the area of international competitiveness of American industry. A more pragmatic, less ideological approach emerged, first in numerous state capitals, and is emerging gradually in Washington, DC.     

Linking polycentricity concepts to periphery: implications for an integrative Austrian strategic spatial planning practice

This contribution searches for a regional planning conception that allows for a mutual recognition and practical translation between strategies for urban regions and peripheries beyond separate urban and rural categories; taking the Austrian strategic spatial planning context as the example. For this, various notions of polycentricity are discussed and assessed with regard to periphery. The Austrian strategic spatial development concept ÖREK sets out a focused work programme with changing responsibilities and participation of actors. The objectives are targeted and the processes are implementation oriented. Amongst other topics, urban regional issues and peripheral, declining regions are worked on separately. A conceptually integrative, plan-like strategic instrument across the topics and for the whole of Austria is lacking. The ESPON notion of ‘inner peripheries’ is proposed as a complementary concept to the ESDP notion of polycentricity, helping to create a bridge between urban regional and periphery strategies. This has the potential to guide strategic planning practice efforts in Austria towards a yet missing strategic spatial plan for the whole of the country beyond urban and rural categories. Practice relevant conclusions related to the case of Austrian strategic spatial planning are drawn and a need for further, comparative research in a European context is identified.     

European Corridors as Carriers of Dynamic Agglomeration Externalities?

Transport corridors are viewed as a promising way forward in European Union (EU) transport policy, assumed to contribute positively to regional economic development. However, the validity of this assumption is not evident. The aim of this paper is to empirically test whether agglomeration economies in European transport corridor regions are positively related to indicators of regional economic development compared to regions outside the scope of corridors. The results build on the notion that the type of agglomeration economy in combination with the structure of the economy matters for prospects of structural economic growth in different regions. In this way, the analysis not only contributes to enhancing the empirical scrutiny of the corridor concept in EU transport policy, but also provides new insights into how corridors contribute to regional economic growth. We find only limited evidence for a corridor effect across European regions on productivity and employment growth externalities. Instead, we find a large degree of spatial heterogeneity interacting with corridors—a heterogeneity that has been little recognized in EU policies. We suggest that recent attention to place-based development strategies may accord well with the kinds of agglomeration effects related to corridor development observed in this study.     

Sport in the “city of culture”

This article examines the emerging intrusion of sport into the realm of cultural policy in tandem with an increased emphasis on culture in civic planning programs. The empirical focus of the article is on the location of sport within recent campaigns by British regional cities to win the title of European City of Culture, to be conferred in 2008. The particular case study considered is the unsuccessful joint bid put forward by Newcastle‐upon‐Tyne and Gateshead. The article looks at how the economic revival of Newcastle has been driven by cultural regeneration, and at how sport has assumed a prominent place within the cultural symbolism and iconography of the city. Consideration is given to the policy background and implications; in particular, the developing links between sport policy and cultural policy and sport considered in relation to the “creative industries” and the arts as more traditionally perceived. The article offers critical reflection upon the role of sport within the desired cultural democracy of the planners and promoters of the “city of culture”.     

Climate Change: An Important Foreign Policy Issue

International climate policy is one of the most fascinating issues in foreign policy, yet in recent years it has become one of the most contentious. The failure of the conference in The Hague revealed, among other things, strongunderlying rifts in the transatlantic relationship. As the self-acclaimed worldleader, the United States is not in a position to exert leadership in this vital area owing to a mixture of constitutional constraints and an ever-growing cultural dependence on fossil fuels such as oil and gas. It therefore falls to the European Union to take up this challenge. This will require careful coalition building with the rest of the world as well as confidence in the ability of Europe to develop a united position, to stick to that position and to translate the rules of the Kyoto Protocol into stringent domestic climate policy. The climate change regime is at a crossroads. At the resumed COP-6 con-ference, the Parties must decide whether to continue the process under theassumption 'that global problems require global solutions' or whether to turn to the more regional concept of 'think globally, act locally'. In either case, steering climate policy in this century on to a successful path will require the skills and dedication not only of natural scientists and technology developers, but also of those in the foreign policy community.     

The ripple effects of large-scale transport infrastructure investment

We analyze the general equilibrium effects of an asymmetric decrease in transport costs, combining a large-scale spatial dynamic general equilibrium model for 267 European NUTS-2 regions with a detailed transport model at the level of individual road segments. As a case study, we consider the impact of the road infrastructure investments in Central and Eastern Europe of the European Cohesion Policy. Our analysis suggests that the decrease in transportation costs benefits the targeted regions via substantial increases in gross domestic product (GDP) and welfare compared to the baseline, and a small increase in population. The geographic information embedded in the transport model leads to relatively large predicted benefits in peripheral countries such as Greece and Finland, which hardly receive funds, but whose trade links cross Central and Eastern Europe, generating profit from the investments there. The richer, Western European nontargeted regions also enjoy a higher GDP after the investment in the East, but these effects are smaller. Thus, the policy reduces interregional disparities. There are rippled patterns in the predicted policy spillovers. In nontargeted countries, regions trading more intensely with regions where the investment is taking place on average benefit more compared to other regions within the same country, but also compared to neighboring regions across an international border. We uncover that regions importing goods from Central and Eastern Europe enjoy the largest spillovers. These regions become more competitive and expand exports, to the detriment of other regions in the same country.     

Towards a network of regions: The United States of Europe

Starting from the changing role of governments in planning (physical, environmental, economic, etc.), this paper calls attention to the drastic structural changes taking place in the regional scene after the transition towards market orientation and global competitiveness. The main focus is on European developments. In addition to économie forces, two phenomena will be highlighted, namely, the transition towards a network economy and the profound technological changes taking place at the regional and urban level Particular attention will be devoted to European spatial dynamics in a networked society. Various new geographical configurations and maps of Europe will be shown, followed by some exploratory remarks on future trends. The main message of the paper is that transport planning in Europe needs to be integrated with the emerging new economic networks. The paper ends with some policy conclusions.     

THE EUROPEANIZATION OF REGIONAL DEVELOPMENT: LOCAL STRATEGIES AND EUROPEAN SPATIAL VISIONS IN NORTHERN FINLAND

By exploring the Europeanization of current practices of regional spatial planning, this article sets out to demonstrate the evolution of the European integration project. Specifically, by creating spaces of engagement to which the local and regional actors are “forced” to adapt, the emergence of European spatial planning has made planning practices at the regional level more complex and complicated. As such, the present study contributes to the current understandings of Europeanization by exploring the European integration process through the geographical conceptualizations of space and scale. These conceptualizations are used to illustrate the multidimensionality, complexity and subtlety of the geographies of Europeanization. The empirical investigations show that regional and local spatial policies are strongly engaged – both explicitly through the “technicalities” and implicitly through the “mentalities”– to the spaces of Europeanization. The engagement affects the effectiveness of sub‐regional spatial planning by promoting mismatches between the strategic frameworks and the material practices of the policy. Overall, the article illustrates that the geographies of Europeanization are continuous processes, which take place – often unrecognizably – in manifold discursive and material practices in various geographical contexts.