Beyond the German Model of Capitalism: Unorthodox Local Business Development in the Cologne Media Industry

On the basis of a media firm-survey and the measurement of in-town enterprise concentration, this paper explains the extraordinary sub-sectoral specialization and the spatial concentration towards radio and television in a German city: Cologne. A peculiar mix of institutional support, typical of German capitalism and unorthodox deviance from such arrangements is discovered in all matters of collective goods provision, including vocational training, enterprise financing, etc. Using a case study-approach, this article shows how the German model of capitalism can be rearranged for new markets on the local level, successfully overcoming institutional constraints by informal cooperation and institutional entrepreneurship.