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Many studies in economics and regional science claim a positive link between interpersonal trust and innovation by demonstrating a positive effect of trust on patenting. This contrasts many findings from organization level studies on trust and innovation, who report a variety of findings including inverted‐U type relations. A possible explanation is that trust exhibits different roles in invention and innovation, as the former relies on knowledge commons while the latter directly embeds commercialization and the market context. This study attempts to reconcile the two set of findings by studying indicators of invention and innovation in relation to trust at the same unit of observation, by using the regional variation in Europe. I study the relationship between interpersonal trust and patent applications (a measure of invention), trademark applications (a composite indicator) and the share of innovative sales in turnover by SMEs (a direct indicator of commercialization), across European regions. I show that trust positively affects trademark applications with an effect that is comparable to that on patent applications. However, trust exhibits an inverted‐U type relationship with innovative sales. Results collectively point to a strong role of trust in all three creative activities, including a negative effect at the higher end when the indicator is directly contingent on commercialization and sales. I also estimate the extent of spatial spillovers in the effect of trust on all three creative outcomes. [ABSTRACT FROM AUTHOR]

Does regionalism negatively impact non-members? To answer this question, we examine the effect of regional trade agreements (RTAs) on imports from non-members and the tariffs that they face. Using data from six RTAs in Latin America and Europe, we do not find evidence that implementation of the regional agreements is associated with trade diversion from third countries to regional members. Using detailed industry data on preference margins and most-favoured nation (MFN) tariffs for three trade agreements in Latin America over 12 years, we find that greater preference margins do not significantly reduce imports from third countries. We also look at the effect of preferences on external tariffs. We find evidence that preferential tariff reduction tends to precede the reduction of external MFN tariffs in a given sector, offering evidence of tariff complementarity. Overall, the results suggest that regionalism does not significantly harm non-members. [ABSTRACT FROM AUTHOR]

The purpose of this paper is to shed light on the controversial issue of regional development incentives. Although extensive research has been conducted, a review of the literature gives an inconclusive answer to whether economic incentives are effective. Why do researchers arrive at different conclusions, even after analysing the same programmes? Among the problems that we find, for example, is the fact that for some researchers ‘effective’ means the significant location of new firms in targeted areas, while for others the creation of jobs regardless of whether new firms are arriving in a significant fashion. Furthermore, as we elaborate, the selection of an econometric model will have a significant impact on expected results. Different models, with different limitations, will lead researchers to evaluate the same incentive programme but arrive at different conclusions regarding its effectiveness. The contribution of the paper is to inform policymakers about the potential opportunities and pitfalls when designing incentive strategies. This is particularly relevant, given that both the US and Europe have been promoting incentives as a tool for regional economic development. [ABSTRACT FROM AUTHOR]

This article explores the role of regional integration as a system of conflict resolution. It identifies key referents that integration and conflict resolution have in common such as functionalist foundations, the integrative capacity of conflict, actors and a causal mechanism of outcome creation based on compromise. The peace-building effects of European integration are examined.

This paper models externalities of production across regional economies. Under the assumption that knowledge diffuses without political or administrative barriers, we derive externalities that affect the steady state and the process of growth of each economy. The empirical counterpart of the reduced form equation summarizing the process of growth allows us to test for the presence of regional spillovers and to measure their magnitude. Our results for a sample of European regions show that spillovers are far from negligible, are robust to the consideration of variables within each region, and may cause nondecreasing returns at the spatial aggregate level. The paper also relates previous empirical evidence on spatial dependence in growth studies to the externalities modeled here. [ABSTRACT FROM AUTHOR]

The trade liberalization associated with NAFTA has affected the pattern of state exports by altering the origin as well as the destination of merchandise exports. We find that NAFTA has increased US merchandise exports to Mexico and Canada by just over 15%, and has increased total US merchandise exports by nearly 8%. We also find that although many states have seen large increases in exports to both Mexico and Canada, others have seen large decreases. NAFTA has also affected states’ exports to non-NAFTA regions of the world, tending to decrease exports to Europe and Latin America and increase exports to Asia. States in the northeast regions of the United States have seen the smallest increases in exports in the wake of NAFTA. [ABSTRACT FROM AUTHOR]

Reflects on the innovation turn in regional policy in Europe. Changes in the context and rationale for regional policy-making; Emergence of the concept of clusters and learning regions; Role of knowledge and organizational change in the domain of regional policy.

Focuses on tourism as an instrument of regional economic growth in Europe. Overview on regional tourism development for the period 1961 to 1974; Enactment of various government decrees intended to facilitate economic development through the promotion of the tourism industry; Identification of ways in which tourism can contribute to the process of economic growth.

The article comments on author A.J. Scott's analysis of the rise of new industrial spaces in North America and western Europe. His account, bringing together a number of ideas and empirical claims which are rapidly gaining influence in urban and regional research and beyond is a particularly helpful contribution to the debate concerning flexibility. First, he summarizes the argument that the current restructuring entails a transition from a fordist mode of economic organization towards a postfordist mode characterized by flexible accumulation. Secondly, he provides an original and lucid construction of the logic whereby economic restructuring might lead to spatial restructuring. His essay adds a new dimension to the argument for the renaissance of regional economies around new marshallian industrial districts. Scott integrates these ideas in a unified framework for thinking about these changes. This offers a unique opportunity to examine the theoretical and empirical issues involved.

Examines the proposed changes for the European regional economic policy. Reasons behind the proposed changes; Implications of the proposal on the economic status of the region; Provisions of the proposal.

Investigates the status of the European Economic Community (EEC) monetary policy. Criticisms against the lack of move by the EEC to enact a regional unit of currency and capital market; Provisions of the Community's Barbe Plan.