Who leads regional industrial dynamics? “New industry creators” in Chinese regions

Recent evolutionary economic geography studies have argued that regional diversification emerges as a path‐dependent process, as regions often branch into industries that are related to its industrial structure. However, it is less clear who are creating new industries and under what regional conditions. This research seeks to fill this gap and identify “new industry creators” in regional industrial diversification. We differentiate two types of new industry formation—path‐breaking and path‐dependent—and examine whether some new industry creators are more path‐breaking than others, by incorporating two factors that have been largely overlooked in recent literature on technological relatedness—firm heterogeneity and regional institutions. Based on a firm‐level data set of China’s manufacturing industries, this paper shows that path‐breaking and path‐dependence coexist. Empirical results confirm that firm heterogeneity and regional institutions not only affect the firms’ capabilities in creating new industries, but also encourage/discourage firms to be adventurous and path‐breaking. This research implies that lagging regions can catch up with developed regions by coordinating regional resources and adjusting local institutional arrangements to attract more path‐breaking firms.     

Modelling Local and Regional Economic Development in Turkey: A “Curate's Egg”

This paper explores and unpacks the nature of the processes shaping regional economic growth in Turkey using an econometric modelling strategy. Existing empirical research in this field has focussed on regions in economically advanced and technologically innovative economies. As a consequence, the broader picture of the dynamics of regional development in less developed countries, particularly its social and political origins and the overall changes in regional inequality, has remained elusive and less clear. In this study, a set of econometric models is developed to explore the validity of a range of theoretical propositions in explaining the trajectories of regional economic change in Turkey between 2004 and 2008. Growth is calibrated in terms of employment and changing rates of unemployment in the chosen time period in the 81 provinces of Turkey. The results of the study explain that implications of the current local and regional economic development theories are a “Curate's Egg”—good in parts—because these theories are only partially relevant in the Turkish context.     

Great Recession and club convergence in Europe: A cross-country,cross-region panel analysis (2000–2015)

The paper aims at investigating the impact of the Great Recession on per capita GDP convergence process across European regions and countries. Using the time-varying factor model developed by Phillips and Sul for the period 2000–2015 and two different merging procedures to identify clubs, we provide evidence of the diverging impact of the Great Recession “between” the higher and the lower convergence clubs at both regional and country levels as well as of the strengthening of the convergence process “within” most clubs. In addition, we add further evidence to the common belief of a “multi-speed” Europe by contrasting Eastern European countries' and regions' behavior vis-à-vis original European members' one, and by identifying the factors that affect club membership and resilience to the recent economic downturn. We find that the membership in the higher clubs and resilience to the Great Recession are positively affected by the presence of several local-specific factors and macroeconomic characteristics.     

Cultivating Wilderness: The Place of Land in the Fiction of Ed Abbey and Wendell Berry

ABSTRACT Novelists Wendell Berry and Edward Abbey consider the natural world in a way most or their predecessors did not: the land itself as a complex character which deserves the respect of its human inhabitants. “Cultivating Wilderness” presents an overview or this relationship in Abbey's and Berry's fiction relating not only how the authors contrast characters attuned to the land and its patterns with others who arc “out of sync” with the natural world, but also how both ferry and Abbey deal with the interaction or human and natural communities—especially in a “modern world” which seemingly prefers to control nature and eradicate mystery. While it is not the role of fiction to offer blueprints for economic, environmental, or social policies, the novels and short stories of Wendell Berry and Ed Abbey do address important issues and eloquently call for a new paradigm for human behavior—at individual, community, and national levels—within and toward the natural world. I felt, rather than knew, with a sudden keen taste and appetite, what it was to be a farmer in Islandia. I sensed the absorbing interest of the immediate task that also is integrated with rill the other tasks of one's life into a rounded whole, because one's land und one's farm is larger than oneself, reaching from a past long before one began into a future long after one is dead—but all of it one's own.     

Nothing is in the Air

It has often been argued that “there is something in the air” which makes firms in high‐density environments—such as cities or clusters—more innovative. The co‐location of firms facilitates the emergence of serendipity and casual encounters which promote innovation in firms. We assess this hypothesis using data from a survey of Norwegian firms engaged in innovation partnerships. The results indicate that there may be “much less in the air” than is generally assumed in the literature. The relationships conducive to innovation by Norwegian firms emerged as a consequence of purpose‐built searches and had little to do with chance, serendipity, or “being there.”     

The persistence of inter‐regional hierarchy in technology transfer networks: An analysis of Chinese patent licensing data

This paper asks whether the technological development of a nation reduces the inter‐regional hierarchy in knowledge flow. We examine two scenarios that are the alternative to each other. The first is what we call the globalization of regional innovation system/weakening of inter‐regional hierarchy scenario: As many regions develop their niches in the global economy, the national “anchor” region loses its relative importance as the importer and distributor of new knowledge, rendering the domestic inter‐regional hierarchy less significant as a result. The second scenario is the globalization of national innovation system/persistence of inter‐regional hierarchy. The nation’s traditional anchor region becomes even more active in importing technology and distributing it to other regions of the country. To test which scenario is closer to reality, we employ social network metrics to analyse inter‐regional technology diffusion networks using Chinese patent licensing data for the 1998–2013 period. Our findings support the second scenario, showing that the influence of the traditional anchor region persists in the hierarchical network structure as new cities enter the network. We found five anchor regions: the three usual suspects—Beijing, Shanghai and Shenzhen—plus two that were slightly less expected—Dongguan and Suzhou.     

The Successful Transition to a Knowledge‐Based Development Path of a Less‐Developed Region

This paper presents the case of a less‐developed EU region—the Pomeranian region of Poland—that is, an example of the successful transformation from a command to market economy and the creation of a new knowledge‐based development path thanks to the upgrading of its innovation model. This successful transformation was based, in part, on the region's specific innovation policy and the activities of pro‐innovative institutions; however, other factors were also important such as the diversified structure of the region's economy. New knowledge‐based industries have developed in the region, while the potential of traditional industries that have gone through a restructuring, has been maintained. The factors that existed prior to the innovation model's transformation included such aspects as the high quality of human and social capital, a strong academic center, a high quality of life, and an open economy and society. Supply factors in the form of qualified personnel were crucial for the growth of employment in new industries and R&D that determined the improvement of the regional GDP per capita. Moreover, the transition to a knowledge‐based economy stimulated an increase in the concentration of population in the metropolitan area of Tri‐City.     

Economic Valuation of Varieties and Breeding Objectives

Breeding planning and variety valuation can be supported only if weighting factors for the economically relevant performance traits are available. In plant breeding they are necessary for the calculation of selection indices as well as for the comparison of varieties and for quantifying the monetary impact of breeding progress. In this article the economic weights for the most important performance traits of sugar beet are calculated from the farmer's, the sugar factory's, and the national economy's point of view. Based upon economic weights for beet yield, sugar content, potassium, sodium, and ammo nitrogen content, a total of 19 varieties was compared with regard to physical and economic performance. The investigation shows that “best” and “worst” varieties differ in gross margin per ha by 270.— to 330.— DM. Indications were given for possibilities and limitations of the application of economic weights in breeding planning.     

Neither core nor periphery: The search for competitive advantage in the automotive semi-periphery

This article examines a heretofore underexplored category of automotive-producing nation known as the semi-periphery. These nations are neither “core” automotive nations whose power derives from hosting headquarters of major automakers, nor are they low-cost members of the automotive “integrated periphery” like Mexico or countries in Central and Eastern Europe or North Africa. Through a case study of one semi-periphery country, Canada, the paper assesses automotive semi-periphery countries' capacity to transition to knowledge-based activities more typically associated with “core” automotive nations. In so doing, it raises implications for other “semi-periphery” automotive-producing nations as well as those currently categorized as “core” or “integrated periphery.”     

Household valuation of energy development in amenity‐rich regions

The juxtaposition of oil and gas wells against the Rocky Mountains on Colorado's Front Range provides a picture of the complicated interaction between Colorado's natural resources above and below ground. As hydraulic fracturing has increased oil and gas development—bringing jobs and money to an already highly sought after amenity‐rich area—it has also increased concerns about the impact on natural amenities, such as water quality and mountain views. Using data on housing sales between 2006 and 2014, we estimate how shale development is capitalized into housing prices in a booming market when households are in close proximity to other natural amenities. We find that shale development negatively impacts house prices, more so for houses with private water and houses that are closer to the mountains, but that competition for land along the Front Range has driven up house prices overall in the region. Our results also suggest the policy responses to shale development may differ for growing, amenity‐rich regions.     

Developing a typology of daily travelers based on transportation attitudes: Application of latent class analysis using a survey of millennials and older adults in Hamilton,Ontario

Using survey data of millennials and older adults in Hamilton, Ontario, this exploratory study sought to identify daily travelers based on their attitudes and perceptions toward transportation modes using latent class analysis. Four daily traveler types are identified—“walk and transit-oriented travelers,” “car-oriented commuters,” “multimodal travelers,” and “car-oriented travelers.” The study also examined the association of different sociodemographic characteristics and trip attributes with the four traveler types. Findings suggest that heterogeneity exists within travel-related attitudes among different traveler types. Further, heterogeneous traveler types exist among individuals belonging to the same generation, with the same living arrangements and possession of a driver's license.     

Institutional context and place-based policy: The case of Coventry & Warwickshire

A key problem of downscaling or transferring policies across regions is embedding these policies into a place for them to unleash the full potential of regional economies. This paper elaborates on the analytical framework of “institutional context” to bridge the gap between rich theorizations and poor empirical capture of institutions in studies of regional development. The institutional context is constituted by three pillars—regulations, organizations, and institutions—as well as by the interrelations between these pillars. Applied to the British region of Coventry and Warwickshire, a qualitative analysis of expert interviews finds institutional patterns of short-termism, moderate levels of social capital and an embryonic relational infrastructure to constrain the place-based strategy for industrial diversification. This regional case illustrates the more general challenge for regional policy in the UK of devising place-based strategies under conditions of continuous rescaling of regional governance and the implementation of a new National Industrial Strategy. In conclusion, the analysis suggests a shift from “nodal” to “linking” policies that support cross-network connections and help grow a regional field for collective action to cross-fertilize knowledge and foster innovation and entrepreneurship in emerging industries.     

Mixed Signals in the Job Training Partnership Act

The Job Training Partnership Act of 1982 was developed to train the disadvantaged for work or better jobs. The Act that passed targeted the economically disadvantaged but stressed efficiency in the operation of the program. Program performance standards were established, and local Private Industry Councils (PICs) were developed to operate the program and to involve local business in JTPA training. Critics argued that this structure resulted in “creaming” of participants to the exclusion of the most disadvantaged workers. We test the “creaming” hypothesis using data on JTPA participants in Tennessee in 1987 and a sample of disadvantaged workers in Tennessee extracted from the Current Population Surveys. We find that racial and welfare targets are met but that the most able among those groups are chosen for help. We also find some evidence of “channeling.” The most disadvantaged groups are less likely to receive the most successful type of training — on-the-job training. Finally, we present alternative strategies to encourage PICs to do less “creaming,” and we make predictions about their likely success.     

Employment volatility in lagging and advanced regions: The Italian case

The presence of cycles characterizes all economic systems, but economic cycles have differentiated spatial impacts. Some regions have broader cycles with respect to the country, while others tend to be less responsive to shocks and hence have narrower cycles. Being exposed to broader cycles, that is, greater volatility, may increase the strain on a regional economic system. This paper investigates the different responsiveness to cyclical forces and volatility of regions in the long run. It does so by using quarterly employment data for the Nuts2 Italian regions over almost 40 years before and during the period 1978–2016. Explored in particular are the cross-regional variations in employment volatility and the reasons for the patterns observed, as well as whether they have changed the following different macroeconomic policy regimes. The paper identifies the break dates of different regimes, and these regime changes will be related to policy modifications, such as the implementation of the European Monetary Union. The determinants of this regional volatility appear to be quite stable, so that the changes in volatility are explained by how these determinants have changed overtime and how they are unevenly distributed in space. In particular, the lagging regions of the country suffer, in addition to lower production and income, from higher volatility due to a structure which is weaker and more unstable. Volatility can hence be an additional issue for lagging regions.     

Determinants of Local Highway Spending in North Carolina

Public spending, because it is influenced by elected officials, can be swayed by political considerations as well as socio‐economic factors. Previous studies have confirmed the importance of political measures in the allocation of general public spending as well as in spending for infrastructure and highway projects at the state level. This study examines the determinants of the allocation of state highway funds within one state—in North Carolina to counties during the period 1990–2005—and assesses the relative importance of socio‐economic and political factors in these decisions. Determinants were derived from three conceptual approaches to public spending: the median voter model, the special interest model, and the political model. Persistence was found in both highway construction spending and highway maintenance spending. In addition, employment market conditions were a strong determinant of highway construction spending, as was one political factor—the county's relative vote in the most recent election for the state's dominant political party. Highway maintenance spending was found to be dominated by median voter factors with no finding of political influence.     

Regional Growth Dynamics in the Service Sector: The Determinants of Employment Change in UK Regions, 1971–2005

There is a need to better understand the dynamics relating to the evolving economic structure of regions, in particular factors concerning deindustrialisation and the growth of services. In order to unpick the dynamics relating to contemporary regional evolution, this paper examines regional employment in the UK's services sectors from 1971 to 2005. The analysis utilises the statistical technique of multi‐factor partitioning to examine the evolutionary dynamics of employment change in the UK service sector. Overall, differing growth trajectories in services employment across regions appear to be the result of the different underlying industrial structures observed within the regions themselves. The findings indicate that the industrial structure of a region has a significant influence on employment change in services, with related variety being of greater consequence than specialisation. This suggests that diversity, or urbanisation, effects have a greater influence than specialisation effects on “lighter” industries than “heavier” industries. Spatio‐temporal variations within the development of services are evident in the analysis, and there is evidence of convergence across the regions for all sub‐sectors examined. It concludes that in an increasingly services‐dominated economy, diversity and related variety have some weight in explaining regional development paths.     

Institutional varieties,governance quality,and firm-level innovation in emerging economies: Case of India

This study examines how institutional varieties at the subnational (state) level influence firm-level innovation in an emerging economy—India. Knowledge of how institutional varieties influence firm-level innovation is derived principally from country-level studies involving multiple developed countries. Research on emerging economies is sparse and tends to follow country-level approaches involving multiple countries. Research involving a single emerging economy where there are substantial institutional varieties between regions is thin. The institutional varieties of some emerging countries are so striking that they can be viewed as several countries within a country, for example, India, China. This study contributes to the innovation literature on the role of institutional varieties on firm-level innovation by focusing on a different level of analysis—a single, emerging economy with substantial institutional varieties across the different states of India. Innovation in emerging economies is a topic of increasing academic interest. A multilevel study involving regional- and firm-level factors is employed. Firm-level data are from the World Bank Enterprise Survey and regional-level data are from statistical agencies in India. The results confirm that institutional varieties have major impacts on firm-level innovation. The research, policy, and managerial implications are discussed.     

The Impact of Migration on Social Capital: Do Migrants Take Their Bowling Balls with Them?

Questions surrounding the impact of population migration on social capital is the focus of this study. Putnam observed that “for people as for plants, frequent repotting disrupts root systems. It takes time for a mobile individual to put down new roots.” However, because of a trending decrease in mobility over time, Putnam rules out migration as an explanation for the long‐term decline in social capital that was the subject of his widely read 1995 book Bowling Alone: America's Declining Social Capital. This study undertakes an empirical examination of the impact of migration on county‐level social capital, which in tribute to Putnam one might view as an attempt to answer the question—do migrants take their bowling balls with them when they move? The potential for county‐level migration of population to impact social capital levels at particular locations in space arises from the conventional argument that social capital promotes trust and cooperation among agents. This trust increases socially efficient collective action but requires investment in relationships and commitment of scarce resources to build social capital. It seems plausible that migration of population might have a negative impact on the stock of social capital by interfering with trust and cooperation among agents. However, it is also possible that migrants may take their social capital with them to new places of residence. In other words, the propensity to join social and civic organizations might reflect inherent traits of individuals who are willing to make commitments of their resources to building social capital in any community where they reside.     

The impact of R&D and knowledge spillovers on the economic growth of Russian regions

Russia presents an interesting case of a country which has strived to implement innovation policies since the transition period but so far has achieved mixed results. This study aims to analyze the impact of knowledge production and knowledge spillovers on regional growth in Russia within a framework of endogenous growth models. Applying GMM and spatial error panel modeling techniques to Rosstat data for 80 Russian regions from 2005 to 2013, the authors test the hypothesis about the relevance of R&D and expenditure on technological innovations (H1) and the hypothesis about the relevance of knowledge spillovers (H2) on the growth rates of GRP per capita. Hypothesis 1 was confirmed while Hypothesis 2 was rejected, indicating the absorptive capacities of innovatively lagging regions were not high enough for effective adaptation of new technologies from technologically innovative regions. Inclusion of indicators related to additional channels of knowledge diffusion in regressions resulted in the relevance of FDI and imports of goods and services for regional growth. Results of the study could form the basis for developing innovation policies for the Russian regions.