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on Economic Geography |
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Issue of 2023‒09‒11
four papers chosen by Andreas Koch, Institut für Angewandte Wirtschaftsforschung |
| By: | Koen Frenken; Frank Neffke; Alje van Dam |
| Abstract: | The capability framework in evolutionary economic geography views regional economic development as a process of related diversification through the acquisition of capabilities that render a regional economy more complex. Using this framework, we synthesize seven theoretical notions that hitherto remained rather disconnected: relatedness, complementarity, variety, complexity, diversification, agents of structural change, and related variety. We formulate a constructive critique of the capability framework, relaxing the overly restrictive assumption that the presence of capabilities in a region is both necessary and sufficient for complex products to be produced in a region. Instead, we argue that the complexity of a regional economy depends primarily on the institutions that support firms to coordinate production in complex value chains within and across regions. The augmented framework allows for closer integration of evolutionary and relational approaches in economic geography, providing new links between the literatures on clusters, innovation systems and global production networks. |
| Keywords: | diversification, relatedness, complexity, institution, value chain |
| JEL: | B52 O1 O43 R1 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2318&r=geo |
| By: | Jorge Guzman; Fiona Murray; Scott Stern; Heidi L. Williams |
| Abstract: | Motivated by the establishment of major U.S. Federal programs seeking to harness the potential of regional innovation ecosystems, we assess the promise and challenges of place-based innovation policy interventions. Relative to traditional research grants, place-based innovation policy interventions are not directed toward a specific research project but rather aim to reshape interactions among researchers and other stakeholders within a given geographic location. The most recent such policy - the NSF “Engines” program - is designed to enhance the productivity and impact of the investments made within a given regional innovation ecosystem. The impact of such an intervention depends on whether, in its implementation, it induces change in the behavior of individuals and the ways in which knowledge is distributed and translated within that ecosystem. While this logic is straightforward, from it follows an important insight: innovation ecosystem interventions – Engines -- are more likely to succeed when they account for the current state of a given regional ecosystem (latent capacities, current bottlenecks, and economic and institutional constraints) and when they involve extended commitments by multiple stakeholders within that ecosystem. We synthesize the logic, key dependencies, and opportunities for real-time assessment and course correction for these place-based innovation policy interventions. |
| JEL: | D78 L2 O3 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31541&r=geo |
| By: | Alex Coad (Waseda University); Clemens Domnick (European Commission - JRC); Pietro Santoleri (European Commission - JRC); Stjepan Srhoj (University of Split) |
| Abstract: | Policy-makers and scholars often assume that a higher incidence of high-growth firms (HGFs) is synonymous with vibrant regional economic dynamics, and that HGF shares are persistent over time as Entrepreneurial Ecosystems (EEs) have slowly-changing features. In this paper we test these hypotheses, which are deeply rooted in the EE literature. We draw upon Eurostat data for up to 20 countries over the period 2008-2020 and study HGF shares in NUTS-3 regions in Europe. Analysis of regional rankings yields the puzzling finding that the leading EEs in Europe, apparently, are in places such as southern Spain and southern Italy. These places would not normally be considered Europe’s foremost entrepreneurial hotspots. Additional results do not provide strong support for the hypothesis that more developed regions feature higher HGF shares. We do find evidence consistent with HGF shares displaying persistency over time. However, we show that more developed regions do not have higher persistence in their HGF shares, and that the strength in persistence does not increase across the HGFs distribution, which does not support path-dependency as the main mechanism behind the observed persistence. Overall, we call for a more nuanced interpretation of both regional HGF shares and the EEs literature. |
| Keywords: | Entrepreneurial Ecosystems, High-Growth Firms, Persistence, Firm Growth, Entrepreneurship Policy, Regional Policy |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:wpaper:202302&r=geo |
| By: | Suss, Joel; Kemeny, Thomas; Connor, Dylan Shane |
| Abstract: | Wealth inequality has been sharply rising in the United States and across many other high-income countries. Due to a lack of data, we know little about how this trend has unfolded across locations within countries. Investigating this subnational geography of wealth is crucial, as from one generation to the next, wealth powerfully shapes opportunity and disadvantage across individuals and communities. Using machine-learning-based imputation to link newly assembled national historical surveys conducted by the U.S. Federal Reserve to population survey microdata, the data presented in this paper addresses this gap. The Geographic Wealth Inequality Database (“GEOWEALTH”) provides the first estimates of the level and distribution of wealth at various geographical scales within the United States from 1960 to 2020. The GEOWEALTH database enables new lines of investigation into the contribution of spatial wealth disparities to major societal challenges including wealth concentration, spatial income inequality, social mobility, housing unaffordability, and political polarization. |
| JEL: | J1 N0 |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:119980&r=geo |