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Given the scarcity of resources, an economic approach is necessary in order to determine an optimal strategy of adaptation to climate change. In this paper we develop an economic framework for the study of adaptation which allows distinguishing between decentralized adaptation by private agents, on the one hand, and centralized adaptation measures by the government, on the other hand. The paper is in two parts: in the first we present the neoclassical view of adaptation policy, which is based on the paradigm of market failure. In the second part we deal with challenges and complements of the neoclassical view arising from the introduction of equity principles, security of supply concerns, and a polycentric approach to the provision of public goods. The analysis is illustrated with examples of adaptation measures in Germany. [ABSTRACT FROM AUTHOR]

During the past twenty years, the emphasis of policy towards high-technology industry has shifted from national innovation systems to take account of globalisation and the formation of regional clusters. Support for high-technology sectors now takes place at a number of levels— regional, national, and international. However, the extent to which firms operate in these three arenas, and how relevant government action is for the needs and behaviour of firms in respect of these is open to question. The paper reports on a study into innovation in Germany and the United Kingdom, in a particular industry—opto-electronics—which has a highly global character, but is also characterised by concentrations of firms in clusters. The contrasting experiences of firms in two regions—Wales and Thuringia—and the different policy emphasis of the regional government provide a test for the relevance, appropriateness, and impact of government policies towards high-technology industry. By focusing on the experiences of innovating firms, the authors provide a conceptually rich understanding of innovation in terms of two processes, which are often conflated in public policy stimulating knowledge and technology transfer, and providing resource support. The paper concludes with a suggestion that support for innovation needs to be based around the twin concepts of redundancy and systems thinking, and a series of questions policymakers need to keep in mind are proposed. [ABSTRACT FROM AUTHOR]

Spatial innovation models focus on the region and highlight the social and economic interactions of the actors as a main factor in regional innovative output. This paper examines the role of German chambers of commerce and industry (CCIs), which could be relevant for the innovation process through: (1) moderating or founding regional and local (innovative) initiatives; (2) creating and maintaining formal and informal networks; (3) building reputations and providing references; (4) providing information and advisory services; (5) conducting final examinations in vocational training; and (6) founding educational institutions. The empirical analyses show a positive impact of CCI expenditures on the number of start-ups and the number of patents, as well as a positive impact of seminar and information day participation on the number of start-ups. The results lead to the assumption that the network effect (functions 2 and 3) plays a more important role than providing pure information and advice (function 4). [ABSTRACT FROM AUTHOR]

I investigate the mechanisms through which a cluster policy can enhance entrepreneurship defi ned as new venture creation. The paper is based on the study of a cluster policy ('BioRegio') that strongly simulated new fi rm creation in biotechnology in Germany after 1996. The process induced by BioRegio at the territory level is analyzed over a ten-year period (1995-2004). I identify a three-step social mechanism through which a cluster policy can enhance entrepreneurship. The presented results strengthen the literature on cluster policies and clusters on the specifi c issue of entrepreneurship: four main contributions are suggested. [ABSTRACT FROM AUTHOR]

In this paper we offer both a broad survey of the literature on fiscal federalism and long-run economic performance, and a detailed report of some of our own recent studies in this field. We look at the difference between study types (cross-country versus single-country studies), and at the relevance of the broader institutional framework into which fiscal decentralization is embedded. We also look into structural change and intergovernmental transfers as a detailed mechanism through which federalism may have an impact on aggregate economic performance. It turns out that fiscal decentralization has no robust effect on growth, but the evidence hints at a positive effect on overall productivity, conditional on the broader institutional framework. [ABSTRACT FROM AUTHOR]

This paper develops and applies neural network (NN) models to forecast regional employment patterns in Germany. Computer-aided optimization tools that imitate natural biological evolution to find the solution that best fits the given case (namely, genetic algorithms, GAs) are also used to detect the best NN structure. GA techniques are compared with more `traditional' techniques which require the supervision of experienced analysts. We test the performance of these techniques on a panel of 439 districts in West and East Germany. Since the West and East datasets have different time spans, the models are estimated separately for West and East Germany. The results show that the West and East NN models perform with different degrees of precision, mainly because of the different time spans of the two datasets. Automatic techniques for the choice of the NN architecture do not seem to outperform selection procedures based on the supervision of expert analysts. [ABSTRACT FROM AUTHOR]

The author addresses the recent proliferation of cross-border regions, or 'Euroregions', in Europe. It is argued that EU multilevel governance patterns generate opportunities for entrepreneurial policy organisations to attract policy tasks and resources. This is conceptualised as policy entrepreneurship and applied to a comparative case-study analysis of three Euroregions: EUREGIO (Germany - Netherlands), Viadrina (Poland - Germany), and Tyrol Euroregion (Austria - Italy). The analysis focuses on the ability of these initiatives to establish themselves as autonomous organisations. It finds considerable variation across the cases in this respect. Following on from this, the paper shows how administrative and institutional environments in different EU member states affect the ability of Euroregions to engage in policy entrepreneurship. It is concluded that it is premature to perceive Euroregions as new types of regional territorial entities; rather, they are part of the policy-innovation scenario enabled by EU multilevel governance. [ABSTRACT FROM AUTHOR]

This paper examines the relationship between foreign direct investment inflows and employment using international business strategy literature to identify the factors influencing the development of subsidiaries that might affect employment growth in host regions. A survey of German subsidiaries in North West England is used to test the significance of the variables that are identified as likely to affect employment. The results of logit regression indicate that entry mode, technology transfer, and firm age affect the growth of employment. The study also highlights that other factors, such as sector, organisational structure, the level of diversification of operations by subsidiaries in the local economy, and range of markets supplied may have important affects on employment. The research indicates that further conceptual and empirical work is required to clarify our understanding of how the organisational, operational, and diversification characteristics of subsidiaries affect employment. [ABSTRACT FROM AUTHOR]