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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]

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]

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]

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]

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]

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]

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 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]

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]

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]

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 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 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]

Economic development strategies centered on the presence of industry clusters have become quite popular with local policy makers. With this in mind, we test whether or not the degree of cluster complementarity in a given urban area does in fact lead to it having a persistent economic advantage over its peers. Using a spatial factor model built on growth accounting principles, we show that this is indeed the case by identifying key agglomeration factors influencing urban growth. However, our results suggest substantial heterogeneity exists in the types of policies that are likely to best support local economies based on their cluster complementarity. [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]

The establishment of a solid understanding of regional economic development has proved to be highly elusive. Research efforts within this area have focused largely on major urban areas, yet this somewhat narrow focus means that economic development activities in smaller urban centers have not received the attention that they deserve. This article investigates regional economic development within a small city context through a survey‐based study of the entrepreneurial ecosystems operating in two small cities in the province of Manitoba. The results indicate that many currently accepted bases of regional business community expansion, such as government support and development of local suppliers, have limited utility within these cities. Concurrently, business leader survey responses from the two cities reveal a unique set of factors that drive economic development success in this nonmetropolitan case study, keyed by the pivotal role of a unique mix of nonlocal linkages, local cultural resources, and social connections in catalyzing local business expansion. These findings indicate that business community growth in the study cities proceeds from a distinctive template relative to larger centers, and suggest that increased research attention is necessary to elucidate the bases of business success in a more diverse selection of successful small cities. [ABSTRACT FROM AUTHOR]

Improving green development efficiency is urgently required, yet challenging, since it comprehensively reflects the bidirectional evolutionary relationship between regional development and resource and environmental consumption. The issue of regional green development efficiency has become a key topic; however, where the increase in efficiency originates and its spatial spillover effect remains unclear to date. Therefore, the spatial spillover effect of the green development efficiency of Shandong Province was quantified through the slack variable (SBM)‐Undesirable and Spatial Durbin model. The green development efficiency showed clear spatial differentiation in Shandong Province. This was more obvious than the polarized development trend of the provincial capital circle that has Jinan at its core and the eastern coastal region with Qingdao at its core. Green development efficiency has a significant spatial spillover effect. The regression coefficient of the direct effect of the economic development level is positive. The regression coefficient of the indirect effect of the marketization level and government financial support level is negative. Science and technology played a positive role in the promotion of the green development efficiency of local and neighboring cities. This study contributes empirical evidence to the green development efficiency associated with regional development and resource and environment consumption of Shandong Province. [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]

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]

This research examines tax increment financing (TIF), a widely used economic development tool, and property values to determine whether TIFs capture activity that would have occurred anyway. Using 2003–2012 data from Indiana counties, we test a two‐stage model focusing on TIF adoption (stage 1) and impact on assessed value within the TIF district and outside the TIF district (stage 2). Model results show that TIF adoption is positively related to TIF use in surrounding counties, median household income and employment growth, which suggests that TIF is used to capture existing growth. The results of the impact model show that as the share of county assessed value in TIF increases, assessed value in non‐TIF areas decreases and assessed value within TIF districts does not increase, which raises concerns about the efficacy of TIF. [ABSTRACT FROM AUTHOR]

Recent literature and public discourse emphasize the role of craft breweries in the revitalization process of economically distressed neighborhoods across the U.S. With this, many are reporting rising property values in areas surrounding craft breweries. This research examines the impacts of craft breweries on both residential and commercial property values in a case study of Charlotte, North Carolina. Estimating a series of hedonic models which incorporate a difference‐in‐difference estimator, we find that craft breweries have a positive impact on residential property values. While many areas in close proximity to a craft brewery appear to have been associated with relatively higher price premiums even before the opening of the brewery, breweries tend to add to this premium, especially in center‐city neighborhoods. We find no significant impacts on commercial property values. These results are informative to policy makers considering revising zoning laws and other regulations in efforts to promote the growth of craft breweries and spur economic development in their local economies. [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]

Desmet, Gumpert, and Ortίn have analyzed regional development using the Ricardian model or the Heckscher–Ohlin theorem. However, aspects such as consideration of combined wages, substitution elasticities, marginal costs, fixed costs, and number of companies were completely ignored. This study investigates the underdevelopment of regions in light of Krugman's core–peripheral model. The extension of the model is intended to analyze the aspects that have so far been ignored and their influence on the benefits of the two regions. The following aspects characterize the model. Two regions with two sectors are considered for the model. The regions are characterized by different technological equipment. The first region is industrial. The second region has an agricultural character. When a new technology is available, both regions can benefit under certain conditions. The financial transfers lead to a convergence of wages. [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]

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]

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. [ABSTRACT FROM AUTHOR]

Regional inequality has attracted considerable interest among academics and policy makers. However, few studies have focused on regional inequality in comprehensive development. This study quantitatively estimated the regional inequalities and imbalances in China at multiple scales using gross domestic product (GDP), population, and the inter‐calibrated Defense Meteorological Satellite Program's Operational Line‐Scan System (DMSP/OLS) nighttime stable light (NSL) data for 1992–2013. The results are as follows. First, the GDP‐derived inequalities exhibited an inverted U‐shaped pattern, while the NSL‐derived continued to decline. Second, for both GDP and NSL data, the inequality within the western region contributed most to the within‐region inequalities, while the eastern region contributed least. Third, the highest inter‐provincial inequality was observed in the developed area, while disparity within the underdeveloped area was the lowest. Finally, at the provincial level, the imbalances in comprehensive development generally decreased from 1992 to 2013. Moreover, a correlation analysis between the GDP‐ and NSL‐derived inequalities showed that there were some similarities in inequalities during 1992–2013, especially in the eastern region. These findings highlight that the regional inequalities in economic development and comprehensive development exhibit different tendencies, and hence it is crucial for both scholars and government to focus on this issue. [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: 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]

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: 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]

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]

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]

Policy makers who wish to spur economic development in rural forests face challenges that include population decline and poverty. Protected land and natural amenities enhance the quality of life and prospects for economic development, but there is limited research on how different types of protected land or natural amenities affect the rural forest economy. We use county level variables for protected areas differentiated by access and extractive use, and natural amenities differentiated by climate, water area, and topography to explain spatial variation in labor and built space markets. Results show that temperate summers and water area increase wages and housing prices and explain more than 30 percent of the spatial differences in wages, housing price, employment density, built space percent, human capital, and local road density. Protected area decreases wages, but, if open access, increase housing prices and human capital and explain more than 20 percent of the spatial differences in human capital, built space percent, and local road density. [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]

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 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]

There is a general understanding that university plays a crucial role in regional development under the current age of knowledge economy. At the same time, we have observed a fair number of counter-evidentiary studies, demonstrating several regions that do not thrive despite strong research universities or other patterns of development in the absence of research universities. However, they are based on case studies of individual universities or regions, and the findings currently cannot be generalized. Another set of studies that have challenged the effect of universities at the nationwide scale and demonstrated its disproportionately small impact of universities, but their scope is limited to spin-offs, patents, and license activities. In this article, we propose to investigate this subject more systematically by triangulating three methods: 1) national-scale regression models with Business Dynamics Statistics and National Establishment Time Series data, 2) a regional survey of IT and life science firms in four so-called 'second tier regions,' and 3) a microeconomic firm-level analysis based on interviews with founders of technology intensive firms. Furthermore, we test the roles of university beyond those explicit, direct measures of spin-offs and patents by analyzing the firm formation rate and firm growth rate at the regional level, as well as the sources of growth at the company level. All results point in the same direction: The research function of the university has been overstated, and the teaching function of the university has been underappreciated. These findings provide profound implications for the policy of regional development. [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]

With the exception of Austin, metropolitan regions in Texas are not commonly included in research and analysis concerning creative economies-attention is largely focused on either the traditional capitals of creative production, New York and Los Angeles, or emerging, secondary regions such as Austin and Seattle, Washington. This article utilizes an industrial approach to examine the creative economies of the four most populous metropolitan regions of Texas-Austin, Dallas-Ft. Worth, Houston, and San Antonio-and detail their scale, scope, and change between 2005 and 2015. Results help establish the creative economies of the Dallas-Ft. Worth, Houston, and San Antonio metropolitan regions in the existing stream of creative research and discussion, offer further perspective on the dynamics and strength of the Austin region's creative economy, and provide insight into how regional creative economies emerge in rapidly urbanizing regions during the digital era. Additionally, special attention is paid to how these four creative economies transformed during the recessionary period from 2007 to 2009. Results of that attention build on prior research which points to the recession having a varied influence on creative economies depending on trends in the broader regional economies that house them. [ABSTRACT FROM AUTHOR]

Agricultural production, rural areas, and farmers are three key aspects of agriculture related to sustainable economic and social development in China. Rural development is a process of multi-participation, which involves actors from governments, village committees, villagers, rural economic cooperatives, enterprises, financing institutions, and non-government organizations (NGOs). Based on social network analysis (SNA), this article analyzes the social network structures and characteristics of various actors in different stages of rural development in Yanhe village, Hubei Province, China. The results show that both the village committee and villagers have great influence on rural development; NGOs are the leaders of rural environmental improvement; village cooperatives are the promoters of rural economic development; enterprises are the accelerators of rural construction and development. The study outlines the rural development model in Yanhe village where the village committee is the leader and multiple forms of participation and cooperation are present; there are excellent partnerships and communication mechanisms among the participants. The endogenous and sustainable development model identified from Yanhe village is valuable for other villages in China to adopt. [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]

This study examines the relationship between casinos and economic growth in the U.S. Using county-level data on the 48 contiguous states from 2003 to 2012, we estimate the effect of casinos on per capita income growth and job creation. Our research procedures include examining the relationship using level-to-level panel data, and 3-year and 10-year differenced data. An instrumental variable approach is also considered to account for potential endogeneity of the casino variable. Although, the instruments are both relevant and exogenous, test results found insufficient evidence of endogeneity in our panel data models. In addition, we estimate a spatial error model (SEM) to account for the unobserved spatial characteristics that may affect economic growth in the counties but are not captured by our conventional econometric models. Our results show that casinos had a positive effect on per capita income; casino expansions exerted a small, positive effect on both per capita income growth and job growth. However, the effect of casino expansions on 10-year per capita income growth dissipated when we controlled for the spatial autocorrelation in our model. Nevertheless, the SEMs results also suggest that casino expansions continued to have a positive effect on the 2003-2012 job growth. [ABSTRACT FROM AUTHOR]

Sharp regional differences in income and consumption patterns have characterized the Chinese development process. Focusing on the years 2007 and 2012, this work employs the Oaxaca-Blinder decomposition to assess the extent and the determinants of the urban/non-urban and coastal/inland disparity in consumption patterns. The analysis shows that the average gaps across the Chinese prefectures tend to be mainly explained, along both divides, by the mean differences in local endowments of the covariates that explain consumption over GDP ratio. In particular, at the basis of the observed regional disparity, there is an uneven allocation of FDI and foreign enterprises, as well as of domestic investments in fixed assets and welfare state provisions. [ABSTRACT FROM AUTHOR]

Progress in analysing the instrumental view of governance as an engine for growth, poverty reduction, and inclusive development has been held back by the difficulty in framing governance. This essay seeks to address this problem by 1) reframing urban governance 2) evaluating its aims, processes, and outcomes, and 3) explaining those outcomes on the basis of which some lessons are teased out. Using examples from Africa and an institutional political economy approach (based on institutional economics, Marxist political economics, Georgist political economics, and Polanyian political economy), I show that, overall, while urban economies are growing; both urban poverty and inequality levels have risen substantially. Urban governance has paved the way for new forms of urban development that only benefit the few. Not only are there differences in how urban services and resources are experienced, accessed, and controlled but the varieties are also socially differentiated. I argue that the underlying reasons for this disjuncture between 'urban governance' in theory and 'actually existing urban governance' are 1) difficulties in implementing urban governance theory consistently in practice, 2) problems arising because urban governance theory has been implemented in practice, 3) tensions that would entangle most policies which do not address historical and structural economic issues, 4) restrictive assumptions, and 5) incoherence among the different dimensions of urban governance. To resolve these contradictions, I put the case for major structural and institutional change involving: 1) the re-ordering of the roles of the state, market, and society as institutions of change; 2) re-working the relationships that bind together land, labour, capital, and the state, and 3) re-organising the channels for keeping the attainment of the ends of urban governance in check. [ABSTRACT FROM AUTHOR]

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.' [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 article investigates the role of universities in the economic development of American metropolitan regions during the Great Recession (2007-2009) and the growth period prior to it (2001-2007). It develops a supply-side conceptual framework on the role of universities in technology-led regional economic development. Specifically, this framework highlights three 'university products' that can be explicitly defined and measured: educational services, business services, and new knowledge or technology. The empirical test of this conceptual framework finds that the presence of universities is positively associated with regional economic performance during the Great Recession, mainly via the educational services product. Findings indicate that regions with a higher level of university science, technology, engineering, and mathematics graduates are more resilient to the economic recession. [ABSTRACT FROM AUTHOR]