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Against the backdrop of the current political developments in Central and Eastern European (CEE) countries, such as Ukraine, Poland, and Romania, the question arises as to the role played by economic transformation and the resulting innovation linkages in these countries over the last 20 years. The main purpose of this paper is to explore the impact of economic and institutional dimensions on the development of CEE countries, explicitly distinguishing between European Union (EU) members and non‐members, and thus reflecting the differences in institutions and path dependency. Furthermore, the paper contrasts the performance of CEE countries with that of Western European countries. To achieve these objectives, the impact of factors such as innovation, institutions, and political practices on the economic development of 37 European countries from 2000 until 2020 is followed using fixed effects regression and Ordinary least squares (OLS) regression. The results of the analysis show the importance of institutional factors such as low levels of corruption, political freedoms, and intellectual property. The effect of institutional variables was particularly pronounced in the case of non‐EU countries, which indicates the particular importance of the development of stable institutions for achieving higher levels of economic development for this category of countries. [ABSTRACT FROM AUTHOR]

Mega‐city regions (MCRs) have emerged as the main spatial form of China's new urbanization strategy and become the basic spatial units participating in global and regional competition. However, MCRs are not equally capable of boosting regional economic development due to their different levels of development. Therefore, this paper adopts the concept of competitiveness as both a theoretical framework and an empirical model to evaluate the development status of China's MCRs. Based on a review of the existing literature, this paper proposes a multi‐tier evaluation system to calculate the competitiveness of 13 MCRs. The chosen indicators come from the six perspectives of economic development, human resources, infrastructural accessibility, integration into the global economy, capacity for scientific and technological innovation, and sustainable development. The results show that there are great disparities and regional inequalities in competitiveness across different MCRs. The Yangtze River Delta, Pearl River Delta, and Beijing–Tianjin–Tangshan MCRs are the first‐tier MCRs with the highest levels of development and have significant global influence as well. Chengdu–Chongqing, Shandong Peninsula, South‐central Liaoning, and Wuhan belong to the second‐tier of MCRs that show partial advantages and have significant regional influence. The remaining regions belong to the third‐ or fourth‐tier of MCRs that have relatively weak competitiveness. The competitiveness of MCRs largely depends on the concentration of core elements in core cities. [ABSTRACT FROM AUTHOR]

There is mounting theoretical and empirical research that explains the reasons for the rapid expansion of China's export trade, but they mostly ignore the effects of cultural differences. To fill this gap, this paper provides an empirical investigation of how cultural diversity affects the sustainable development of trade, which is defined as the goal of maintaining certain volume of trade and making trade growth sustainable. The findings are as follows. (1) Cultural diversity can significantly promote the sustainable development of trade. (2) Entrepreneurship is the possible channel wherein cultural diversity affects the sustainable development of trade, including innovation entrepreneurship and business entrepreneurship. (3) Further studies demonstrate that economic openness has a significant moderating effect on the relationship between cultural diversity and the sustainable development of trade. That is, the higher the level of openness of a city, the stronger the promotion of cultural diversity to the sustainable development of trade. This study not only deepens understanding on the relationship between culture and trade but also provides important policy implications for many countries that have high migration rates. [ABSTRACT FROM AUTHOR]

Human agency has become a core topic in economic geography complementing traditional, structural approaches to explain regional development. This paper contributes firstly with a discussion of the theoretical and conceptual relationships between the agency of individuals, organizations, and systems. Secondly, it proposes a novel analytical framework for studying how human agency, combined with external changes affects regional economic development, and how regional structural preconditions and external changes explain the activation of change agency. Thirdly, the relevance of the framework is examined through comparative studies of about 20 years of industrial development in three Norwegian regions. This illuminates the importance of human agency in regional transformation processes, how regional preconditions influence but not determine the activation of change agency, as well as why and how regional policy plays a role in the emergence of change agency. Yet, future research needs to investigate the context conditions, which promote or hinder the activation of change agency, to trace change in economic activities over time and link it to causal mechanisms, and to pay attention to the unintended consequences of change agency in the longer‐term. [ABSTRACT FROM AUTHOR]

This special issue tackles two "trendy" topics much discussed at present by the community of scholars (and practitioners too) interested in regional economic development: systems and ecosystems. These metaphors have proved popular, and enduring, currently experiencing something of a buzz or moment in the sunshine. This special issue pushes them out of their comfort zone to explore contexts, elements, and approaches that have not yet been well explored in the literature to date. Contributions in this special issue cover a wide range of international cases and explore systemic perspectives on economic development placing institutional context and evolutionary dynamics at the core. [ABSTRACT FROM AUTHOR]

This paper examines the effectiveness of state economic development incentive programs in stimulating new business activity. It reviews literature that identifies factors that potentially influence the effectiveness of incentives. Empirical work draws on a 2018 survey of approximately 150 firms that received at least one award for startup, expansion, or relocation purposes during the period SFY2010–SFY2016 from a state economic development incentive program (i.e., grant, tax credit, loan, equity investment) offered by the Commonwealth of Virginia. The paper evaluates the role of program design features (e.g., discretionary vs. automatic, relative size of incentive), firm characteristics (e.g., size of firm, industry), and locational variables (e.g., state boundary location, rurality) on firm assessments of the role of incentives in business growth decisions. It finds that firms that receive up‐front or discretionary program awards and undertake multistate site searches are less likely to report that the incentive was not needed for their project to succeed. These results suggest that automatic, back‐loaded award programs, and programs that fund noncompetitive projects are less likely to affect firm location and expansion decisions. [ABSTRACT FROM AUTHOR]

This paper studies entrepreneurship ecosystem development in a context little discussed in the extant literature to date: Oman. Specifically, it focuses on business incubation (BI) initiatives as a policy tool for developing the local, regional, and national systems of supporting entrepreneurship and SME growth. Although BI's are a popular policy measure for ecosystem development, spreading globally from their original conception in the United States around 60 years ago, their universal effectiveness is questioned. We analyse the tenability of BI as an economic development strategy by entrepreneurship ecosystems as a conceptual framework to help us understand the multitudinous cultural, institutional, and governance structures required for success. Specifically, we consider these ecosystem dynamics and their influence on the incubation of SMEs in the novel context of an oil-rich yet transitioning economy such as Oman. Conducting interviews with 22 key informants within a range of ecosystem actors (policy-makers, incubator managers, academics, and entrepreneurs) we find that existing capabilities within the Omani BI programme are not yet fully fit for purpose, highlighting the need to establish developmental priorities for the wider entrepreneurial ecosystem, bottom-up. Finally, we reflect on the wider cultural and institutional constraints highlighted, and suggest potentially fruitful avenues for further research. [ABSTRACT FROM AUTHOR]

The slow growth of the permanently settled migrants in host cities poses new challenges for the sustainability of China's future urbanization. Given the growing importance of homeownership, this paper clarifies migrants' settlement intentions into three mutually exclusive patterns, including de facto permanent settlement intention through homeownership, long‐term temporary settlement intention and short‐term temporary settlement intention. Based on matched micro‐ and macro‐level data, this paper examines the influence of city economic development and housing prices on these three patterns. The results suggest that economic development exhibits an attractive effect on migrants' settlement intentions for both earning money and for making a life while housing price weakens rural migrants' de facto permanent settlement intention. We also highlight the effect of the Housing Provident Fund (HPF), the most important housing financial policy in China, on settlement intention, and the results suggest that the HPF serves as an option to help migrants achieve permanent settlement through housing availability. The findings can explain the mixed results of previous research and provide policy references for sustainable urbanization in China. [ABSTRACT FROM AUTHOR]

The British Government's economic strategy for post‐Brexit Britain of achieving balanced regional growth by "driving growth across the whole country" echoes the objectives set by the Barlow Report of 1940. The regional policies that followed the Barlow Report were heavily influenced by papers written for the Commission by G D A (later Sir Donald) MacDougall. The first of these papers was included as an appendix to the report itself and introduced the shift‐share methodology to the analysis of regional employment growth, and subsequently shown to be flawed. The second paper considered the urban hierarchy and growth but was never fully developed. Consequently post‐war regional policy focussed on the contribution of industrial structure to employment growth without fully taking into account the urban hierarchy or regional locations of that employment. This article replaces the flawed shift‐share methodology with multifactor partitioning (MFP) and applies it to regional employment growth for the period 1971‐2012, a span of special interest because it largely coincides with British membership of the European Union (EU). The deficiencies in the second paper are addressed by introducing allometry to measure the employment growth of each region relative to that of Great Britain and then regression analysis to relate the allometries to distance from London. The results of the two sets of analyses highlight the need for a multiple‐factor, comprehensive, and integrated approach to regional policy and provide a benchmark against which to gauge the success of Britain's post‐Brexit policy of driving future growth across the whole country. [ABSTRACT FROM AUTHOR]

Through panel data for every province in China from 2006 to 2016, this paper studies the impact of the efficiency of science and technological services and the level of economic development on environmental governance, with the efficiency of science and technological services as the threshold variables. The results of the research indicate that the efficiency of science and technological services in China's provinces is low, while the regional gap is expanding. When the efficiency of science and technological services is the threshold variable, single threshold results are significant. When the efficiency of science and technological services is the threshold variable and when the efficiency of science and technological services is lower than the threshold value, there is a significant impact on environmental governance. If the efficiency of science and technological services crosses the threshold value, the impact of science and technological service efficiency on environmental governance becomes insignificant. For the level of economic development, it is a core explanatory variable and has a significant impact on environmental governance only when the efficiency of science and technological services is below the threshold value. According to the empirical results, this paper proposes corresponding countermeasures and suggestions. [ABSTRACT FROM AUTHOR]

Although existing studies questioned the simple positive correlation between the technology transfer speed and the benefits, they have been widely condemned for lacking empirical evidence. Using the patent transfer data at the city scale in China, and distinguishing fast from slow by dividing technology transfer speed into four levels, this paper attempts to answer the question in terms of city economic growth, which is whether the faster is the better. Panel regression results show that for economic growth of city, the speed of technology transfer does not mean that faster is better. In other words, technology transfer maintaining a relatively rapid speed (more than 1 year and less than 2 years) can promote city economic growth, although the evidence is weak. [ABSTRACT FROM AUTHOR]

As economic growth centres, the Southeast Asian cities feature high population pressure, unsustainable land use, environmental degradation, and large ecological footprints. It is difficult to manage environmental health and basic services for urban dwellers, and ensure optimum flow of ecosystem services in the context of rapid, unplanned, and haphazard urbanization. These challenges are particularly multifaceted in the developing countries of Southeast Asian region. This study, based on secondary sources, adopted multidisciplinary lenses, such as geographical information systems, socio‐economic perspective, and sustainability science to examine the population situation, land use change pattern, and drivers of environmental degradation in the Southeast Asian cities as well as the Dhaka megacity, and brought forth a fresh perspective to look into contemporary urban ecosystems, population dynamics, environmental health, and sustainability. It also focused on identifying the commonalities among the cities under study to create a common understanding towards promoting collaborative urban development. This study shows that the urbanization process in the Southeast Asia region is taking place mostly in an unplanned and haphazard manner. With little concern for nature, life‐supporting ecological systems, and the environment, urban spatial growth continues unabated. The data surveyed and discussed in this paper shows that the current style of urbanization in Southeast Asia can best be called unsustainable. The findings also suggest that the general wellbeing and welfare of the current and future generations in Southeast Asian cities as well as in Dhaka is at risk. The paper recommends concerted efforts towards making the urbanization process sustainable, including better urban planning, policymaking, and international and regional cooperation. [ABSTRACT FROM AUTHOR]

Regional technology characters (TCs) are studied in this paper to find whether innovation in Chinese cities leads to technology converging, or technology divergence, in both the intra‐city and inter‐city scales, with which regional economic development strength may be better explained. Based on a literature review on the subject, a two‐dimensional research framework and relevant technical lens are designed to clarify TC in cities composed of parameters on Technology Strength (TS) versus Technology Angle (TA). By applying Principle Component Analysis, a technical lens is made possible based on extracted parameters on three integrated technology dimensions for measuring TSs and TAs over 117 Chinese sample cities with invention patent data covering 21 technology field between 2005/2006 and 2015/2016. Technology convergence versus divergence are examined for 28/24 sample cities beyond average score, and the research findings indicate that technology divergence in Chinese cities can be confirmed at the inter‐city level, even partially at the intra‐city level. This finding holds for most sample cities with fairly large and modest TSs, while intra‐city technology converging is significant, especially for larger sized TS samples, however they also differ on different dimensions. This may imply that urban economic development in China is technical based and differentiated. [ABSTRACT FROM AUTHOR]

From the perspective of the institutional environment, this study explores the reasons and mechanisms behind the widening of the economic disparity between China's North and South during the economic development transformation from a factor expansion model to an innovation‐driven model. By defining the institutional environment in terms of the government–market relationship and the non‐state‐owned economy development, the theoretical analysis shows that compared with the South, the government intervenes more in the market and the proportion of state‐owned economy is higher in the North. The differences in the institutional environment are an important reason for the widening of the North–South economic disparity in China during the transformation of China's development model. Taking this transformation after the 2008 international financial crisis as a quasi‐natural experiment, this study constructs a difference‐in‐difference model for empirical testing based on the differences in the regional impact of the economic development model transformation on different institutional environments. It was found that after the economic development model entered the innovation‐driven stage, those regions with a better institutional environment significantly promoted their economic growth. Further mechanism tests have found that innovation capability is an important mechanism for the institutional environment that affects the North–South economic disparity. [ABSTRACT FROM AUTHOR]

This study analyzes the spatiotemporal evolution and effects of regional functions in rural China and summarizes the spatiotemporal characteristics of rural Chinese regional functions from 2005 to 2015. The results of this study are as follows. (a) The values of the regional functions of rural China generally exhibit a "V‐shaped" distribution such that these values are high in eastern and western China and low in central China, and are high in northern China and low in southern China. (b) The overall functions of rural Chinese regions vary distinctly by region across northeastern China, eastern China, central China, and western China. (c) The spatial variation of regional production function values in rural China also exhibits a gradually declining trend, with the highest values in eastern China, followed by northeastern, central, and western China. This pattern exhibits a relatively strong coupling relationship with the spatial variation principles governing China's natural environment, resource carrying capacity, and economic development level. Overall, regional ecological function values do not exhibit any significant variation, but they do exhibit a gradually declining trend, starting from western and northern China and moving to eastern and southern China. (d) The degree of spatial spillover received by a given region from a neighboring region's production, living, or ecological function is stronger than the effect of the error shock from the corresponding function of the neighboring region. The effects of influencing factors on different regions exhibit significant variation. [ABSTRACT FROM AUTHOR]

The study of the mechanism of rural economic restructuring is the basis for promoting the optimal restructuring of the rural economy and society as well as for reviving the countryside. We conducted a case study of Gongyi, a typical region experiencing rapid industrialization in inland China and systematically reviewed its economic restructuring process over the past 40 years after China's reform and opening‐up. On the basis of identifying spatial interfaces in Gongyi, we analyzed the influence of these spatial interfaces on the rural economic restructuring in Gongyi using geodetectors. The study showed that the influence of different types of interfaces has had a temporal evolutionary effect, the influence of a single human interface was higher than that of a natural interface. With the different stages of economic development, the influence of the interface is also differentiated. The influence of multiple interfaces increased after superposition, and the superposition of different types of interfaces constituted different patterns of rural economic restructuring in Gongyi. Overall, the influence of physical spatial interfaces on rural economic restructuring has decreased. Therefore, greater attention should be paid to the influence of abstract spatial interfaces in the future. [ABSTRACT FROM AUTHOR]

Abstract: Economic base (or export‐base) theory (EBT) is often presented as a Keynesian‐inspired theory that only accounts for demand‐side factors. However, the recent integration of supply‐side factors into economic base models (EBMs) can contribute to renewing applications of this type of model in regional economics. This paper proposes a literature review focused on new EBMs that explicitly take into account supply effects and includes both North American and European studies. It first explains why integrating supply‐side factors is relevant for EBMs. Second, the paper shows how to integrate these supply‐side factors into the various types of models, focusing on two production factors: land and its amenities and labor. Third, the paper discusses the conditions for integrating such supply‐side factors into EBMs. [ABSTRACT FROM AUTHOR]

This paper uses China's provincial border counties as samples to explore the role played by administrative boundaries in uneven regional economic development. The results indicate that the gap between provincial border counties and other regions is increasing and that economic diffusion to provincial border counties from developed regions is extremely weak. Moreover, provincial border counties have become economically backward. A regression analysis model that includes certain novel factors that are likely to influence economic growth confirms the significant effects of government intervention and administrative boundaries on economic growth in provincial border counties. This paper concludes that administrative boundaries' effects should be nullified by limiting preferential development policies and implementing policies that instead help provincial border counties engage in sustainable development. [ABSTRACT FROM AUTHOR]

Despite economic growth since the recession, the gap between the richest and the poorest segments of the population remains one of the most pressing concerns of contemporary America. This paper uses IR-95/20, IR-80/20, and IR-65/35 ratios to measure the income divides between the richest and the poorest segments in the mid-to-large-sized metropolises of the U.S. Southeast, their variation across ethnicities, and their association with metropolitan level attributes such as diversity, segregation, socio-economic, and other built-environment, and labor characteristics. The income divide ratios serve as the dependent variables whereas principal components along with state-dummy variables serve as the explanatory variables in regressions analyses. The metropolises that are large, diverse, and better educated are the most income-divided whereas those with lower educated people are less divided. Metropolises with larger shares of their labor engaged in primary sectors of economy have higher income divides; this observation also holds true for African Americans and Hispanics. Metropolises that gained in intermixing during 2000-2014 are associated with a lower income divide and vice versa. [ABSTRACT FROM AUTHOR]

Between 1957 and 1990, nearly 100 nuclear reactors were constructed throughout the U.S., and nuclear power currently accounts for 20 percent of electricity production nationwide. Nuclear plants are often constructed in small communities for which they constitute a large source of employment and income. To date, 24 nuclear reactors have undergone decommissioning, and more are expected in the future, particularly as nuclear reactors age and face increasingly strict regulations. This paper examines the effects of nuclear decommissioning over time at the county-level on measures of employment, income, and population using difference-in-differences regression and propensity score matching. Panel data are obtained from the U.S. Census Bureau, and cover the years 1975-2014. The analysis finds that nuclear decommissioning is associated with positive and statistically significant increases in employment and per capita income over time. Results suggest that nuclear decommissioning may actually be a positive force in regional economic development, and concludes with limitations of the approach and implications for future research. As an emerging area of research, this paper is meant to build on previous work, as well as to provide a basis for further discussion and debate on the economic future of nuclear host communities and regional economies. [ABSTRACT FROM AUTHOR]

This paper uses the lens of institutional theory to explain the launch and evolution of Austin, Texas's technology‐based economy. The case underscores the importance of context, contingency, and the evolution of key local development organizations in explaining how regional economic development trajectories can change and evolve. The case history provides insights into how economic development networks form and operate to "set off" processes of industrial specialization and agglomeration and how they can promote successful adaptation to change in technology and industrial structure. The Austin story further suggests a "stage" process of regional technology‐based evolution where the development of industrial agglomerations linked to a substantial local research base is seen as a necessary precursor to increasing endogenous innovation and start‐up activity. Successfully navigating these stages is bolstered by the formation of institutions and networks that are durable, strategic, and adaptive, and which, at the right time, recognize and support entrepreneurial firm development to help sustain technology‐based growth. [ABSTRACT FROM AUTHOR]

In the last year, a central issue in regional economic growth debate has been represented by the empirical analysis of Verdoorn's law related to the long-term dynamic relationship between the rate of growth in output and the productivity growth due to increasing returns. Several papers have tested Verdoorn's law on European countries as well as many other world economies. Recently, attempts have been made to provide foundations for a spatial version of the original law specification. The main contributions were dedicated to the inclusion of spatial dependence in the economic model. Surprisingly, in the literature on Verdoom's law the analysis of the spatial heterogeneity is not often considered. The aim of this paper is the regional analysis of the spatial dependence and heterogeneity in Verdoorn's law, identifying spatial regimes that can be interpreted as clusters of productivity growth in European regions at NUTS 2 level. To pursue this objective, an optimization algorithm for the identification of groups is used. This constitutes a modified version of Simulated Annealing. [ABSTRACT FROM AUTHOR]

This paper analyses the structural change in small-island economies-sometimes labeled offshore financial centers ( OFCs)-that have seen wealth-generating activities through offshore financial services decrease in value since 2008. At the same time, OFCs have come under increasing scrutiny from supranational organizations such Organization for Economic Co-operation and Development and European Union for perceived unfair tax practices and money laundering activities. Some OFCs have proactively adjusted to this sea change by broadening the economic base through development of new offshore business activities such as e-gaming, film industry, and niche manufacturing. Most have increased co-operation with onshore regulatory bodies to promote service and product legitimacy. Econometric analysis explores the assertion that OFCs that do not have a political link to the onshore may be exposed to greater capital inflows volatility than OFCs that have such a link. Case study analysis using the theoretical lens of evolutionary economic geography illustrates that a small OFC is creating spatialities of economic novelty by adapting economic development strategies deployed during the successful development of the center prior to the recent recession. Our findings reveal the importance of political links to the onshore to reduce capital inflow volatility and the importance of local public-private interaction to legitimize post-recession development. [ABSTRACT FROM AUTHOR]

Policymakers across the Southern U.S. have directed considerable attention to regional economic development plans, with mixed results. Questions remain over what types of industries, firms, and/or policies can drive long-range growth. Over the past two decades, researchers have started to focus on high-growth firms (HGFs) due to their potential innovation spillovers and job creation prospects, both of which drive further economic development. Employing databases from the Inc. 500, this study explores the dynamics of HGFs within Southern and comparative contexts. The first goal of this paper is to explore Southern HGF activity in comparison with the U.S. at-large. The second is to examine the geographical characteristics of HGFs within the South, which will include an exploration of locations, industrial mix, and the factors that could encourage HGF development and agglomeration. This paper will also analyze the longer-term ownership and acquisition patterns of HGFs across the South. Are such firms remaining embedded in the South or moving elsewhere through mergers or acquisitions? The paper concludes with a discussion of the impacts of HGFs on regional economic development and moreover, whether existing policies are conducive to these firms. [ABSTRACT FROM AUTHOR]

Not all economically disadvantaged—"less developed" or "lagging"—regions are the same. They are, however, often bundled together for the purposes of innovation policy design and implementation. This paper attempts to determine whether such bundling is warranted by conducting a regional level investigation for Canada, the United States, on the one hand, and Europe, on the other, to (a) identify the structural and socioeconomic factors that drive patenting in the less developed regions of North America and Europe, respectively; and (b) explore how these factors differ between the two contexts. The empirical analysis, estimated using a mixed‐model approach, reveals that, while there are similarities between the drivers of innovation in North America's and Europe's lagging regions, a number of important differences between the two continents prevail. The analysis also indicates that the territorial processes of innovation in North America's and Europe's less developed regions are more similar to those of their more developed counterparts than to one another. [ABSTRACT FROM AUTHOR]

One of the fundamental aspects of the economic and social viability of the local and regional areas of Turkey is the degree to which they have access to the wider national economic and social system. Accessibility is, therefore, of major social, economic and political significance in Turkey and it directly affects Turkey's regional growth and the quality of life in local communities. However, the importance of the economic and social viability of the communities is increasingly complicated in the face of rapid global economic recession. It is argued that countries need to develop knowledge economies to compete successfully as knowledge is a critical factor for growth. This paper integrates accessibility and the importance of knowledge creation in understanding local and regional economic development. This empirical study has shown that although there is a high correlation between the accessibility index and the population figures of Turkey, accessibility to knowledge differs across Turkish provinces. [ABSTRACT FROM AUTHOR]

Abstract: Policy makers and academics frequently emphasize a positive link between city size and economic growth. The empirical literature on the relationship, however, is scarce and uses rough indicators for the size of a country's cities, while ignoring factors that are increasingly considered to shape this relationship. In this paper, we employ a panel of 113 countries between 1980 and 2010 to explore whether 1) there are certain city sizes that are growth enhancing and 2) how additional factors highlighted in the literature impact the city size/growth relationship. The results suggest a nonlinear relationship which is dependent on the country's size. In contrast to the prevailing view that large cities are growth‐inducing, for a majority of countries relatively small cities of up to 3 million inhabitants are more conducive to economic growth. A large share of the urban population in cities of more than 10 million inhabitants is only growth promoting in countries with an urban population of 28.5 million and more. In addition, the relationship is highly context‐dependent: a high share of industries that benefit from agglomeration economies, a well‐developed urban infrastructure, and an adequate level of governance effectiveness allow countries to take advantage of agglomeration benefits from larger cities. [ABSTRACT FROM AUTHOR]

Abstract: Using data on 48 contiguous U.S. states and a spatial econometric approach, this paper examines short‐ and long‐run effects of productive higher education and highway infrastructure spending financed by different revenue sources on state economic growth. Following the Lagrange Multiplier, Wald, and Likelihood Ratio tests, the data are found to be characterized by both spatial lag and spatial error processes, leading to the estimation of a dynamic spatial Durbin model. By decomposing results of the dynamic spatial Durbin model into short‐ and long‐run direct as well as indirect (spillover) effects, we show that accounting for spillover effects provides a more comprehensive approach to uncovering the effects of productive government spending on growth. We find that, regardless of the financing source, productive higher education and highway spending have statistically significant short‐ and long‐run direct as well as spillover effects on state income growth. [ABSTRACT FROM AUTHOR]

Abstract: Maritime industrial development areas (MIDAs) are spatial tools designed to accelerate economic growth in backwards coastal areas and thus alleviate regional disparities, and they have widely expanded in both developed and developing countries over the past sixty years. This paper reviews the global development of MIDAs in different historical periods and compares them with cases on China's Liaoning coast in terms of their structure, location, administration, national political‐economic climate and theoretical justification. The results indicate that although those countries have different institutional environments they seemingly once took the same path in their specific stages of development. However, the experiences of developed countries and other developing ones and the current dilemma of MIDAs in coastal Liaoning together demonstrate that MIDAs cannot achieve the policy targets anticipated by decision makers, especially during the economic transitions of China. This finding cautions backwards countries and their lagging areas, such as northeastern China, that the traditional pattern tried by the first developed countries may not be appropriate when the development tool (e.g., MIDAs) is examined in both the framework of international comparison and the socioeconomic setting of a specific country. [ABSTRACT FROM AUTHOR]

Abstract: Public sector activities are often neglected in the economic approaches used to analyze the driving forces behind urban growth. The institutional status of a regional capital is a crucial aspect of public sector activities. This paper reports on a quasi‐natural experiment on county towns in East Germany. Since 1990, East German cities have demonstrated remarkable differences in population development. During this same period, many towns have lost their status as a county seat due to several administrative reforms. Using a difference‐in‐differences approach, we compare the annual population development of former county capitals to population change in towns that have successfully held on to their capital status throughout the observed period. The estimations show that losing county capital status has a statistically significant negative effect on annual changes in population. This effect continues to increase over time after the respective reforms have been implemented. [ABSTRACT FROM AUTHOR]

In this paper, we investigate how the innovation expectations of public financiers are related to realized patents. The analysis is based on a novel data set of collaborative R&D projects subsidized by the Finnish Agency of Technology and Innovation (Tekes) and the European Regional Development Fund (ERDF) during the period 2000-2004. Innovation expectations are measured using reports submitted by Tekes experts during ex ante assessments of projects. Our probit model results reveal that Tekes' patent expectations are positively related to realized patents for projects led by private firms (but not by public organizations). For large organizations, Tekes' innovation expectations are better at predicting patenting. [ABSTRACT FROM AUTHOR]

This paper examines the degree to which creative industries stimulate regional productivity growth in a developing country, Indonesia. The Indonesian government promotes long-established 'traditional' craft businesses as creative industries, but they pay less attention to new knowledge creation and focus on highlighting heritage values as selling points. Our findings show that the 'real' creative industries are still scarce and found mostly in fairly advanced urban regions. These industries are more likely to be an indicator than a driver of regional economic development. Meanwhile, those traditional businesses are much larger than creative industries and potentially contribute to regional productivity through consumption activities, thereby requiring different policy strategies. [ABSTRACT FROM AUTHOR]

This paper investigates how spinoffs in peripheral regions can profit from the work experience of their founders. More specifically, it discusses which firm routines and business contacts entrepreneurs gather through their prior work experience, and how this experience influences the organizational structure and orientation of the newly founded firm. The transfer of capabilities from parent firm to spinoff has been identified as important aspect of industrial clustering, but empirical evidence from peripheral areas is still sparse. It compares 22 semi-structured interviews with founders of manufacturing firms from different peripheral regions in Switzerland to investigate whether routine and network transfer differs in varying peripheral contexts. The results show that not only inherited routines are important, but also inherited business contacts. Further, instead of simply reproducing acquired routines and networks, founders employ a mixture of continuity and change to find a good trade-off between relying on well-proven practices and introducing novelty. Finally, the geographical proximity of inherited business contacts seems to have an influence on the implementation strategy founders choose. Entrepreneurs with strong inherited local business contacts do not have to invest as much in building up new business contacts as those entrepreneurs in more isolated locations. [ABSTRACT FROM AUTHOR]

Entrepreneurship is considered to be one of the most important engines of growth, and its determinants are widely investigated. Several theories of entrepreneurship have been proposed and tested in the literature, most of them focusing on 'hard factors,' i.e., determinants related to the quality/quantity of inputs and to the size of the market. In this paper, I investigate how the interaction between hard and soft factors may shape the entrepreneurial behavior of individuals. In particular, the aim of the paper is to explore the links among the structure of the family, land inequality at the beginning of the twentieth century, and subsequent entrepreneurship in Italian provinces. Using a novel data set on the Gini coefficient of land inequality in 1931, sharecropping in 1911, and the classification of family structures in 1950, I test their relevance to explaining entrepreneurship. I find that high land concentration with strong family ties reduces the probability of becoming an entrepreneur. Furthermore, the diffusion of sharecropping contracts is associated with higher entrepreneurship rates. Taken together, these results point to a central role played by the organization of agriculture in promoting entrepreneurship. [ABSTRACT FROM AUTHOR]

The goal of this paper is twofold. The first goal is to incorporate spatial structure within shift-share analysis, to take into account interregional interaction in the decomposition analysis. Secondly, this paper develops a taxonomy of regional growth rate decompositions. A taxonomy of the spatial structure is presented; it comprises twenty alternative decomposition structures, including the original standard shift-share analysis as well as six alternative structures outlined in the taxonomy for non-spatial structures. [ABSTRACT FROM AUTHOR]

Canada, the U.S., and Australia have recently experienced an increased regional dispersion of entering immigrants. American research suggests that a mixture of economic push factors (away from states like California) and pull factors (toward states with growth of low-wage jobs) and changing government policies and regulations contributed to the development of the New Gateways. Very few studies have been conducted to determine why the regional dispersion of entering immigrants occurred in Canada. This paper assesses the extent to which changes in immigration selection programs, notably, the Provincial Nominee Programs, contributed to the regional dispersion of entering immigrants. Using data from immigrant landing records, this study shows that different factors accounted for changes in the share of immigrants settling in different destinations. Changes in immigration selection programs played the primary role in the increasing numbers going to Saskatchewan and Manitoba, although improving economic conditions may have played an indirect role. Shifts in immigrant source regions were an important factor in the decrease in immigration to Toronto and in the increase to Montréal. Economic conditions likely played a significant role in the changes in the shares of new immigrants going to Toronto, Montréal, Calgary, and Edmonton. [ABSTRACT FROM AUTHOR]

This paper examines the roles of physical capital, human capital, and social capital in China's economic growth during the reform period 1981-2010. Empirical estimation confirms that physical capital and human capital contribute to the economic growth, probably due to the capital accumulation and the improvement of labor productivity. The impact of social capital turns from being insignificant in the 1980s and the 1990s to be positive in the 2000s, suggesting its rising importance in recent decades. A declining role of physical capital in the economic growth in China from 1990s to 2000s is also found. The findings hold for several additional robustness checks, including focusing on longer term determinants of the economic growth, subregional analysis, and endogeneity. Furthermore, the foreign direct investment inflows and adjustment of economic ownership structure are also important for economic growth in China. [ABSTRACT FROM AUTHOR]

This paper is concerned with the geography of finance in the globalising knowledge-based economy, characterised by the proliferation of information and communication technology. More specifically, the paper aims to examine the “locational structure” of financial services in such an economy and its implications for uneven regional development in Europe. In doing so, the paper engages with the concept of “space of flows” and several other theoretical approaches concerned with the geography of advanced producer services and finance. It argues that while such approaches provide a useful starting point, they need be developed further in order to inform an understanding of both the nature and the dynamics of the “locational structure” of financial services and its implications for regional economic development. This point is illustrated in the case of Ireland, focusing on “domestic” banking institutions and “international” financial services operating there. The paper concludes that while “space of flows” provides a useful metaphor for approaching the geography of financial services and other knowledge intensive business services, the conceptual and analytical emphasis should shift towards the “flows of value” that ultimately impinge upon the fortunes of cities and regions. [ABSTRACT FROM AUTHOR]

The rapid economic ascent of China and the increasing integration of the world economy in the past two decades have made metropolises in China such as Shanghai and Beijing emerging global cities. Foreign investment is a central force underlying the emergence and transformation of the Chinese metropolises into global cities. This is especially true in Shanghai, which has experienced massive infusion of foreign investment. Varied forms of foreign investment or development zones have been created to promote foreign investment inflows, yet remain under-studied. This paper analyzes structure, performance, and underlying factors of development zones in Shanghai, and discusses the implications for global city-formation; it unfolds the variations among development zones, and illustrates the significant role of the state and local conditions. As the literature on global cities dwells primarily on the experiences of advanced economies, this paper further contributes to a better understanding of the dynamics of emerging global cities in the developing world. [ABSTRACT FROM AUTHOR]

Using the Social Capital theoretical framework, territorial agglomerations of firms, such as in the industrial district, can be identified as dense strong-tie networks and are thus suitable for exploiting activities. This paper addresses the possible exploring limitations of these clustered firms. Following alternative explanations, such as the structural holes and weak tie approaches, it is proposed that local institutions may play a role as intermediary agents between external disperse networks and internal dense networks, therefore enabling these firms to deal with the requirements of an ever-changing environment. The paper also develops an empirical section where the Spanish ceramic tile industrial district is described in order to illustrate theoretical arguments. Findings suggested a number of ways in which local institutions may facilitate the creation of value for firms. Particularly, local institutions interact with many external firms and institutions and undertake research projects with local firms. In addition, some quantification of the participation of firms in the activities carried out by institutions is offered, suggesting explanations for the barriers that prevent firms from gaining direct access to external networks. [ABSTRACT FROM AUTHOR]

This paper attempts to reflect critically on the role which telephone call centers might play in the economic development of rural places in the ‘information age’, drawing mainly on a case study of the Highlands and Islands of Scotland. It argues that although call center employment tends mainly to be urban-based, the growth of this form of work does present opportunities for some rural areas. The paper considers the locational factors rural areas would have to possess or develop in order to attract such work. It suggests call centers can make a valuable, though limited, contribution towards rural economic development, principally through the creation of additional employment opportunities and the stimulation of new skills and competencies. It also suggests that call centers do not represent a panacea for rural areas and that, indeed, it would be dangerous for rural areas to become over-reliant on employment in this sector. [ABSTRACT FROM AUTHOR]

This paper proposes the notion of territorial patterns of innovation as a new conceptualization to understand the relationship among knowledge, innovation, and economic growth at the regional level. The territorial patterns of innovation approach reject the simplistic view of an invention-innovation equivalence and advance alternative patterns, alternative ways in which knowledge and innovation can take place and mix in space. Each of them represents a different way of innovating, one not necessarily more efficient than the other. On the empirical ground, the paper demonstrates this statement for all NUTS2 regions of the 27 European Union states by showing that the efficiency in taking advantage of innovation does not only link to the strength of the local knowledge base; rather, territorial patterns of innovation characterized by relatively low knowledge intensity can be relatively more efficient in grasping and exploiting innovation returns for growing. Interesting policy implications can be drawn from the empirical analysis presented. If the results do not deny the importance of research and development ( R&D) activities for regional growth, and therefore the right focus put forward by the Europe 2020 on a 'smart growth' based on knowledge and innovation, they call for particular attention when the Europe 2020 goal is translated into a regional setting. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper looks at the linkages between three recent developments in spatial economics that in combination have changed the way that economic growth is viewed. These new approaches are that of the New Growth Theory, the measurement of geographical economic convergence, and the role of infrastructure in stimulating economic growth. In combination these developments may combine to provide a different perspective on why regions often grow at differential rates, ways of measuring these differences, and possible policy interventions to manipulate geographical variations in the growth process. The paper argues, however, that these concepts, while they may offer new insights, are nevertheless unlikely to provide a complete picture of why spatial economic divergence is widespread nor a set of policy instruments that can be simply deployed to ameliorate such discrepancies. [ABSTRACT FROM AUTHOR]

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth-enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the D istrito F ederal) during the period 2000-2010. The results indicate that regional economic growth across Mexican states stems from direct investment in research and development ( R& D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives. [ABSTRACT FROM AUTHOR]

High income inequality has become a barrier to economic development for emerging economies. Education is commonly seen as a way to decrease income inequality; however, the empirical evidence is not convincing. By focusing on school performance, we take advantage of spatial econometrics to estimate a long‐run relationship showing that income inequality can be reduced by increases in school performance. In particular, our results show that increases in school performance at early stages of educational levels and using mathematics as the subject goal can decrease income inequality in the long run. We use the case of Chile, which presents high income inequality and low school performance compared to similar nations. [ABSTRACT FROM AUTHOR]

The past decade has witnessed a blossoming of megaregional plans throughout China. However, it is still unclear whether megaregions delineated in these plans are based on a functionally integrated foundation or imagined by the government. This study takes the Central Yangtze River Megaregion (CYRM)—a cross‐jurisdictional megaregion planned as a leading regional integration platform in Central China—as a case to examine the mismatch between the governmentally designated regions and functionally integrated regions. Specifically, this research employs the community detection algorithm to identify functionally integrated regions within the CYRM based on producer services networks, then associate the formation of these network‐based regions with territorial factors. The results show that the integration of identified first‐tier functional regions is subject to the provincial administrative divisions; whereas, the locally planned regions comply with the second‐tier functionally integrated regions spatially. Besides, the regression results indicate that the territorial factors are significantly associated with the above spatial patterns. Hence, the region‐making practices initiated by the local governments rather than the central government, are more consistent with the conditions of regional economic development. [ABSTRACT FROM AUTHOR]

In recent years, the endogenous development ( ED) approach has gained influence within the rhetoric of European rural development policies ( RP). This paper provides a fundamental critique of the approach and shows that neither the economic elements of RP in general nor ED in particular are targeted towards the specific economic needs and capabilities of rural areas. The second part of this paper consists of the search for possible alternative concepts for a more targeted and effective RP. Based on a synopsis of existing theories, an integrated approach is proposed that builds upon the different coordination mechanisms for economic activity suggested by different theories. The new, integrated perspective enables an economic characterisation of rural areas and indicates that the successful support of local coordination of economic activity is determined by specific local conditions. It also makes evident that localised approaches usually cannot compensate rural areas for the lack of agglomeration advantages. Therefore, programmes for the economic development of rural areas which support the local coordination of economic activity remain a second-best policy. As such, they do not free the state from policies of spatial redistribution if the political aim is the creation of comparable living conditions. [ABSTRACT FROM AUTHOR]

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. [ABSTRACT FROM AUTHOR]

ABSTRACT Local economic development policies worldwide perceive business incubation as an effective measure to promote regional growth through the support of young and innovative ventures. The common assumption is that incubation promotes firm growth, in particular after these firms graduated from their incubator organisations. However, knowledge regarding the performance of incubated ventures after they have (successfully) completed their incubation is almost non-existent. This article investigates the long-term development of 324 graduate firms from five German business incubators (incubated between 1990 and 2006). The present study does not suffer from a survivor bias, meaning that performance data of non-surviving firms is also included. Using employment and sales measures as performance indicators, this study contradicts existing results with regard to long-term graduate performance. Findings of this paper do not support the presumption of sustainable and strong firm growth beyond incubation. [ABSTRACT FROM AUTHOR]

ABSTRACT Policy makers and scholars often regard the life science industry in general, and bio-technology in particular, as an engine of future economic growth. The expectation is that growth in the industry will ultimately provide a major boost to national employment numbers. However, in this paper, I find that the Swedish life science industry (encompassing pharmaceutical, bio-technology, and medical technology firms) accounts for only a small proportion of total employment in Sweden. Given the recent discussion on jobless growth (i.e., economic growth without employment growth), it is here argued that focusing on employment is not necessarily the best policy approach to assessing the impacts of the life science industry on the overall economy. This paper maps and analyses the scope, structure, and geography of the life science industry and its workforce in Sweden using a unique set of data covering approximately 1,200 firms and 53,000 employees. The industry's workforce has education and income levels significantly higher than national averages, and is heavily concentrated in larger metropolitan areas and major university cities. Despite employing relatively few people and being more or less dependent on the existence and success of a few major pharmaceutical firms, the industry may still have a significant impact on the national economy by engendering high levels of education, income, and export revenues, particularly in specific regions. [ABSTRACT FROM AUTHOR]