Arriving at the Dawn of the New Economy: Is Knowledge-Based Industrial Renewal Possible in a Peripheral Region?

In the contemporary knowledge economy, characterized by both globalization and localization of economic activities, the ability of both firms and their respective regions to adapt to changes in their external environment and to retain their competitiveness is closely related to their capacity to innovate and to continually upgrade existing structures, practices and knowledge bases. In this respect, co-location of firms operating in the new knowledge-intensive sectors is typically considered to be beneficial for both the firms themselves and for their respective regional economies. In this study, we considered whether knowledge-based industrial renewal is possible in peripheral regions. The empirical study was designed to identify tendencies towards and potential concentrations of new knowledge-intensive industries in the relatively peripheral region of Pohjois-Savo in Finland. The strength of such tendencies was determined by employing the Herfindahl index and location-quotient methods. The analysis indicates that while the more traditional industries still appear to be dominating the region's economic landscape, the new knowledge-intensive industries have gained at least a foothold in the region, indicating a potential target for local policymakers' further development efforts. Pohjois-Savo can be considered to be a typical Finnish region, characterized by a large central city with a university, a few smaller sub-regional centres and the surrounding large rural periphery. However, earlier literature with the same focus is lacking and regional strategies and entrepreneurial structures differ in different regions; thus, we cannot establish whether these conclusions hold in other regions in Finland or how applicable these results are in an international context.     

MIGRATION OF THE HIGHLY EDUCATED: EVIDENCE FROM RESIDENCE SPELLS OF UNIVERSITY GRADUATES*

ABSTRACT We examine the inter‐regional migration of university graduates from 1991 to 2003 in Finland. The results show that time matters: two‐years before and during the graduation year the hazard rates of migration increase, and then decrease thereafter. Although university graduates are particularly mobile, we find that most of them do not move from their region of studies within 10 years after graduation. The out‐migration, i.e., brain drain, is much higher among graduates in the more peripheral universities than in the growth centers (Helsinki in particular). Migration is also substantially more likely for those studying away from the home region than for those studying at home.     

Reviews

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Poul Thestrup, Nærbutik og Næringslov‐omgåelse. En unders?gelse of brugsforeningerne og deres placering i innovationsprocessen i Danmark mellem 1850 og 1919 (The Consumer Co‐operatives in the Innovation Process in Denmark 1850–1919), Odense University Studies in History and Social Sciences, vol. 95 (Odense Universitetsforlag), 549 pp., ISBN 87 7492 595 4, DKK 240+moms.

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Kalle Bäck, Harald Gustafsson, Jon Herstad, Jens Holmgaard, Markku Kuisma, Maud Molander, Illka Mäntylä, Øjstein Rian and Gustav Grunde Sætra. Skog och Brännvin. Studier i näringspolitiskt beslutsfattande i Norden på 1700‐talet (Wood and Spirits. Studies in Economic Policy‐Making in the Nordic Countries in the Eighteenth Century), Nordic Research Project on Central Power and Local Communities ‐ Decision‐making in the 1700s (Det nordiska forskningsprojektet Centralmakt och lokal‐samhalle ‐ beslutsprocess på 1700‐talet), publication 3 (Oslo University Press, 1984), ISBN 82 00 07053 0 (English summary).

Karl‐Gustaf Anderson, Inger Diibeck, Birgitta Ericsson, Gfsli Agust Gunnlaugsson, Per‐Arne Karlsson, Markku Kuisma, Anne‐Hilde Nagel, Oscar Nilula and Gustav Grunde Sa;tra, Industri og Bjergvarksdrift. Privilegering i Norden i det 18. arhundrede (Industry and Mining. Studies in the Granting of “Privilegia” to Industrial Enterprises in the Nordic Countries in the Eighteenth Century). Nordic Research Project on Central Power and Local Communities ‐ Decision‐making in the 1700s, publication 5 (Oslo University Press, 1985), ISBN 82 00 07694 6 (English summary).

Christian Wichmann Matthiesen, Danske Byers Vaekst (Urban Growth in Denmark). Det Kgl. Geografiske Selskab, Atlas over Denmark, Serie II, vol. 3 (C. A. Reitzels Forlag, K?benhavn, 1985), 142 pp., 245 Dkr. (English summary).

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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.     

Reviews

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Saari, Heikki: Re‐enactment: A Study in R. G. Collingwood's Philosophy of History. (Acta Academia Aboensis. Ser. A, vol. 63,2. 1984). 141 pp.

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Paasivirta, Juhani, Suomi ja Eurooppa 1914–1939 (Finland and Europe 1914–1939). Helsinki, (1984). ISBN 951–26–2588–1. 548 pp.