Concentrated versus diffused growth assets: agglomeration economies and regional cohesion

The interest toward the supposed trade-off between efficiency and equity has strongly come back to the fore within the European Union (EU) after the 2008 economic crisis. The worsening of spatial economic imbalances, in fact, opened again the debate whether the European institutions should focus their budget allocations on core areas or on peripheral areas of less developed countries, following concentrated or spatially distributed normative actions. This paper addresses the question by applying an original method to assess the relative importance of urban efficiency with respect to spatially distributed resource endowments in affecting regional inequality. An innovative two-step procedure is applied: that first estimates a regional production function and then makes use of its output through a simulation to assess efficiency versus spatially even distribution of resources on the improvement of regional cohesion. The results show that urban efficiency gains play a relatively minor role in affecting regional disparities if compared with a spatially even distribution of production factors.     

Emerging geography of technological innovation in China's ICT industry: Region,inter‐firm linkages and innovative performance in a transitional economy

This study critically evaluates the relevance of the existing theory of technological innovation to the case of China's information and communications technology industry. Based on a large‐scale questionnaire survey conducted in China's three most important city‐regions, namely, Beijing, Shanghai and Shenzhen, where the core of China's information and communications technology industry is located, this study reveals a significant regional variation in technological innovation in a political economy undergoing marketisation and globalisation. This research has found no significant relationship between the innovative performance of firms and the extent of production linkages; nor was there a significant knowledge exchange among firms. A further analysis has identified the significant role played by government purchases, research and development capital input and export propensity in the process of technological innovation. The findings of this research cast doubts over the prevailing theory of ‘new economic geography’ in which soft and unbounded relational assets have been overemphasised at the expense of some solid and bounded actors and agents that are pivotal to technological innovation in a developing economy.