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This paper provides new evidence on barriers that hamper small and medium‐sized enterprises (SME) in the Baltic Sea Region (BSR) to establish international collaboration. Our analysis makes use of collected data concerning internationalization of SMEs in seven BSR countries. Our logistic multivariate regression model, which we applied after selecting relevant variables using the LASSO method, indicates a significant positive effect for the entities´ demand in support to acquire clients as well as the absence of foreign markets operations. A significant adverse effect is found for cooperation agreements as a support tool for internationalization as well as the interest to participate in an innovation and internationalization system. SMEs rather desire their internationalization capacity building than direct support in acquiring clients. Overall, our results support the hypothesis that strengthening cross‐national collaborations and establishing appropriate support programs are important toward innovativeness and competitiveness among SMEs in the BSR. Smart Specialization Strategies (S3) could provide a framework for building cross‐national collaborations. [ABSTRACT FROM AUTHOR]

Government support plays a crucial role in enhancing regional innovation capabilities and creating distinctive innovation clusters. Using the innovation competitiveness indicators of the 31 provinces in China, this paper examines the provincial government collaboration and innovation competitiveness values through Super‐SBM data envelopment analysis and analytic hierarchy process. Then, the particle swarm optimization (PSO) algorithm is employed to relate government collaboration to innovation competition and cooperation among provinces in hope of exploring the developmental trends of innovation cluster optimization. Research findings show that only 25.8% of the provincial government support proves effective for regional innovation, and the competitiveness values of the provinces are generally low and need to be improved. By incorporating the role of government support into the innovation competition and cooperation among provinces, there has been a tendency of innovation activities clustering in innovative regions and three major clusters have formed. The trend of clustering will continue to evolve outwards so that the overall innovation level of China would be enhanced. [ABSTRACT FROM AUTHOR]

There has been increasing concern about the roles of industrial variety, particularly related and unrelated variety, in adaptive response of regional economies to recessionary shock. Using South Korean regional manufacturing data around the 1997 Asian financial crisis, this paper investigates how differently related and unrelated variety affect intrasectoral and intersectoral structural change in regional economy. The empirical findings reveal that regions with higher related variety adapt to recessionary shock mainly through intrasectoral structural change, but that related variety diminishes the opportunity for regional economies to pursue intersectoral reorganization. However, unrelated variety makes up for this negative effect as it increases intersectoral structural change. This study sheds light on the complementary roles of related and unrelated variety in regional adaptability and path creation or diversion. [ABSTRACT FROM AUTHOR]

Transport infrastructure is conceived as an important determinant of regional economic development. While this prediction especially holds from a theoretical perspective on the premises of endogenous growth theories, from an empirical perspective it is not that easy to verify this causal link, though. Measuring whether transport infrastructure indeed fosters regional development or if it is merely an endogenous reflection of the higher transportation demand in prospering regions is a challenging task. This paper analyzes the long-run effects of port facilities on regional income levels in Germany. Since it is very likely that results from standard least square estimations suffer from endogeneity problems, we base the identification on exogenous long-run instruments. In particular, port facilities built before the industrial revolution provide an adequate instrument for current port infrastructure since they are exogenous to recent economic development but the natural requirements of a port site form an experimental character of their locations. Results from German district-level data for 1991-2008 hint at a positive correlation between port locations and gross domestic product per capita, but do not provide evidence for a causal relationship regarding the instrumental variable approach. Further robustness checks with population distribution as outcome hint at positive long-run persistence effects of port infrastructure. [ABSTRACT FROM AUTHOR]

Much theoretical writing on regional clusters is based on a functionalist and normative view of trust-based social exchange underlying innovativeness and competitiveness. Empirical research, however, reports many cases of clusters that are best characterized as loosely connected agglomerations of firms, driven by intense distrust and rivalry, rather than trust and cooperation, and with outcomes that may or may not be advantageous. The aim of this paper is to offer a microlevel Darwinian explanation for the persistence of distrust in clusters. From the “meme's eye view,” a cluster may be understood as a cultural phenomenon that is created and reproduced by human agents as they selectively perceive and enact the ideas that draw their attention. The outcome is not necessarily a distribution of ideas that benefits the individual members of the cluster or enhances the performance of the cluster as a whole. This paper outlines the general evolutionary principles involved in this process and applies them in a discussion of some of the conditions under which ideas related to distrust may be selected and reproduced. [ABSTRACT FROM AUTHOR]

In this paper, a formal model for the relationship between innovation and growth in European Union regions is developed drawing upon the theoretical contribution of the systems of innovation approach. The model combines the analytical approach of the regional growth models with the insights of the systemic approach. The cross-sectional analysis, covering all the Enlarged Europe (EU-25) regions (for which data are available), shows that regional innovative activities (for which a specific measure is developed) play a significant role in determining differential regional growth patterns. Furthermore, the model sheds light on how geographical accessibility and human capital accumulation, by shaping the regional system of innovation, interact (in a statistically significant way) with local innovative activities, thus allowing them to be more (or less) effectively translated into economic growth. The paper shows that an increase in innovative effort is not necessarily likely to produce the same effect in all EU-25 regions. Indeed, the empirical analysis suggests that in order to allow innovative efforts in peripheral regions to be as productive as in core areas, they need to be complemented by huge investments in human capital. [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]

In the international business literature location behavior has traditionally been analyzed using) OLI framework, which focuses on the nature, role, and behavior of multinational enterprise (MNE). In this paper it is argued that this approach is now no longer appropriate for discussing the spatial behavior of MNEs, because of the fundamental changes which have taken place either in MNE organization or in the global and institutional environment for foreign direct investment (FDI). At the same time, the paper argues that current location theory from regional economics and economic geography is also largely unsuitable for discussing these issues, such that the spatial behavior of the MNE provides a set of difficult challenges to location analysts. There appears to have been some response to these issues from the international business and management literature, most notably the Porter literature on clusters. However, it is also argued here that this literature provides few, if any, real answers to the problems set by the geographical behavior of the MNE. It is concluded that a fusion of traditional economic geography approaches with a focus on the information and organizational aspects of the firm and the region under consideration may be a way forward for both theory and empirical analysis. [ABSTRACT FROM AUTHOR]

ABSTRACT This paper examines the relationships between ethnicity and regional economic transformation in Slovakia. It takes as its focus the position of the Hungarian minority in Slovakia in the uneven process of regional change. The paper places these issues within the context of struggles over ethnicity and 'nation' in post-independence Slovakia. The paper argues that ethnicity has been a thoroughly contested issue since the collapse of 'communism' in Slovakia and a variety of struggles have been waged over enhancing the rights and position of the Hungarian minority population. The concentration of the Hungarian minority in the southern Slovak border regions with Hungary is examined within the context of the uneven economic impacts of the 'transition to capitalism'. It is argued that, while the economic decline seen in many of these 'Hungarian' regions has impacted negatively on the local populations, the roots of these changes lie within the ways in which such regions were integrated into the state socialist regional division of labor. In particular, the role of peripheral industrialization in such regions prior to 1989, in attempting to reduce economic differences among various ethnic groups, resulted in the establishment of branch plant economies which have had difficulty in surviving since 1989. It is therefore the interweaving of the economics of regional decline and the politics of ethnicity that help us to understand the complex place of the Hungarian minority in Slovakia. [ABSTRACT FROM AUTHOR]

ABSTRACT State socialist nationalization policies in the 1980s severely impacted the ethnic Turkish and Muslim regions of Bulgaria, while neo-liberal economic strategies have subsequently further deepened their economic crisis. This paper focuses on the ways in which policies of regional economic marginalization, cultural assimilation, and population expulsion have deeply marked the people and places of the Kurdajli region of southeastern Bulgaria. The paper shows how mass unemployment arose quickly after 1989 as a result of the closure of branch-plants, and assesses the role of social networks and non-capitalist economic practices in the Muslim communities during this period of economic immiseration. The paper shows how these legacies of state policy and social practice have provided flexible opportunities for the resurgence of apparel assembly for export, referred to locally as 'Klondike capitalism'. The paper concludes with a discussion of the extent to which the history of violence has influenced the processes of internationalization in the region, and how we are to think about the relationship between regional mass unemployment and sectorally specific industrial revitalization. [ABSTRACT FROM AUTHOR]

Regional development theories have experienced a transition from Keynesian state-led economic development models to development based on public-private partnerships, innovation, industrial districts, etc. With the increasing concern for innovative milieu, products, process, organizational, and institutional innovations have assumed an important place in regional development policies. All these regional development paradigms have formed the basis of the initiation of a new process in regional development called the new regionalism, which includes cumulative efforts to revitalize local economic growth. In this paper, we identify technological levels of 26 NUTS 2-level regions according to the Organisation for Economic Co-operation and Development ( OECD)'s classification. Then, we develop an innovation and competitiveness index for Turkey by employing principal component analysis. In conclusion, we formulate some workable policy solutions and suggestions for regional economies in Turkey. According to the results, Istanbul is the most innovative and competitive region in Turkey. Ankara is becoming a regional knowledge cluster, thanks to its strong R& D infrastructure and highly qualified researchers. [ABSTRACT FROM AUTHOR]

Regional economies are continually undergoing adjustment as their firm populations react to changing tastes, technologies, and the challenges of outside competition. Adjustment typically takes place as the stock of jobs is renewed in each industry. This micro-dynamic process of renewal has a substantial impact on the structure of national and regional economies. The primary objective of this paper is to measure the degree of renewal within the Canadian manufacturing economy as whole and within individual provinces. Using a longitudinal micro-data set—which covers the population of manufacturing plants in Canada from 1973 to 1996—the study shows that the manufacturing sector experienced considerable job renewal. Two-thirds of jobs in 1996 were newly created since 1973. There was considerable variation in provincial renewal rates. A decomposition analysis suggests this variation is not purely an artifact of the types of industries found in provinces, but reflects other characteristics of provincial economies. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to point out some shortcomings of traditional approaches to the study of ‘knowledge spillovers’ and to suggest an alternative based on how knowledge is actually created and exchanged by individuals. Which regional setting is the best incubator of technological change and economic growth? Is this promoted by regional diversity or specialization of economic activity? This study will include economic analyses of geographically localized ‘dynamic knowledge externalities, Jacob's externalities, or adding new work to old, industrial classification and technology combination, human creativity, and technology combination through human action and imaginative use of resources. Employees add to, or switch their product line; individuals move from one type of production to another; individuals observe a product/process in another setting and incorporate it; individuals possessing different skills and working for different firms collaborate; and urban diversity and resource collaboration are utilized. It is concluded that problems are solved through the combination of previously unrelated things and that promoting regional specialization at the expense of spontaneously evolved local diversity might be a counter-productive policy. [ABSTRACT FROM AUTHOR]