Resilience and unemployment: A case study of East German women

This is the author's PDF version of an article published in German politics ©2005. The definitive version is available at http://www.ingentaconnect.com/content/routledg/gpThis article discusses unemployment in the former East Germany and the impact that exceptionally high unemployment in the new German states has had on East German women since reunification. It reflects, in particular, on the potential influence of their experience of life in the GDR in developing coping strategies to deal with the effects of unemployment, an ongoing resistance to unemployment and, most significantly, to a male-breadwinner ethos

Industry Concentration and Regional Innovative Performance – Empirical Evidence for Eastern Germany

Regarding technological innovativeness, the transformed economy of the former German Democratic Republic (GDR) clearly lags behind the Western part of the country. To face this weakness, a broad mixture of policy measures was carried out in recent years. Particular attention is drawn to the development of industry concentrations and economic ‘clusters’. However, little is known about the effectiveness of these policy measures regarding how industry concentrations in fact promote innovative performance in Eastern Germany. The present study tries to fill this gap by analyzing the relationship between industry concentration in Eastern Germany and regional innovative performance. Our empirical analysis is based upon the number of patent applications of 22 manufacturing industries in 22 Eastern German planning regions. The estimated regression models indicate an inverted U-shaped relationship between the degree of industry concentration and innovative performance. An exceedingly high degree of industry concentration in one region hampers regional innovative output. We discuss policy implications of our findings and give recommendations for future refinement of ‘cluster’-supporting policy schemes in Eastern Germany.industry concentration; agglomeration; specialization; cluster; innovation; patents; east germany

What Happened to the East German Housing Market? – A Historical Perspective on the Role of Public Funding –

The paper analyses the development of the East German housing market after the reunification of the former German Democratic Republic and the Federal Republic of Germany in 1990. We analyse the dynamics of the East German housing market within the framework of the well-known stock-flow model, proposed by DiPasquale and Wheaton. We show that the today observable disequilibrium to a large extend is caused by post-unification housing policy and its strong fiscal incentives to invest into the housing stock. Moreover, in line with the stylized empirical facts, we show that ‘hidden reserves’ of the housing market were reactivated since the economy of East Germany became market organized. Since initial undersupply was overcome faster than politicians expected, the implemented fiscal stimuli were too strong. In contrast to the widespread opinion that outward migration caused the observable vacancies, this paper shows that not weakness of demand but supply side policies caused the observable disequilibrium.housing market transition, housing subsidies, housing supply, east germany

Is There a Way for Old Industrial Districts to Become Attractive for Cultural Industry? The Case of Media Businesses in Halle (Saale), Germany

manufacturing have collapsed are trying to stimulate entrepreneurial activities of businesses in the cultural industry. The question is whether this strategy could be successful. This article examines the strategy of supporting the sector of Media Industry (´MI´) by policy makers in the region of Halle in East Germany, where a strong de-industrialization has taken place after the German reunification. Stimulated by the policy makers’ support measures, there actually was a remarkable development of MI. However, the number of MI firms and their employees did not further increase in recent years, after having reached a certain level. This illustrates the limits of political measures for turning a city’s path of industrial development voluntarily.media industry, cultural industry, business development, urban development, location factors

Economic integration in a cross border perspective - An emerging new system of production?

The economic development of regions is today closely determined by the linkages and networks to external partners as well as their own Hinterlands. Main focus in this paper is on issues related to changes in the system of production, in regional as well as international, and a cross border perspective. Empirically the analysis is based on results from a project analyzing regional development in the Baltic Sea Regions. Issues addressed are spatial impacts of alterations in the economic linkages in the BSR since the transition process started in the aftermath of the break down of the iron curtain. Theoretically the concepts applied are based on economic integration and location. An analytical framework is sketched in the first part of the paper. The second section provides a brief introduction to the economic development in the regions considered, including an assessment of cross border flows, i.e. trade and FDI. Part three is devoted to an analysis of changes in the regional production system with regard to manufacture, and the implication for regional economic performance and employment in the out-sourcing regions as well as in in-sourcing regions. In addition, the issue of ‘re-outsourcing’ is addressed. The latter deals with western companies considering moving production facilities out of the BSR region into areas with lower production costs. The final section summarizes the result with regard to relocation i.e. in border-areas, within the BSR or in a global perspective. Impacts on employment is evaluated as well the paper addresses witch branches in particular are at risk to loose economic weight in the BSR as a consequence of changes in the international division of labor.

Saxony's capital Dresden: On the way to become Eastern Germany's first Innovative Milieu?

In this paper, the chances of Saxonys capital city Dresden to become Eastern Germanys first high-tech-region is discussed. A presentation of the theoretical background of innovative milieux is followed by an overview of the regions universities, R&D institutes and other facilities relevant for milieu formation. Afterwards, the establishment of high-tech enterprises in the Dresden area is analyzed. The paper concludes giving a view of the regions further development potential. --

Can medium-sized cities become Creative Cities? Discussing the cases of three Central and Western European cities

This paper aims to explore the concept of Creative City from the points of view of three medium-sized cities in Central and Western Europe: Birmingham (UK), Leipzig (Germany) and Poznań (Poland). The concept of Creative City has risen in popularity in the last 15 years but its meanings and its policy application display important variations. In an attempt to clarify conceptual issues and policy approaches around the term of Creative City, Scott (2006) states that policy makers should focus on specific key variables when attempting to build viable Creative Cities: the presence of inter-firm networks of producers combined with a flexible local labour market. Infrastructural facilities and social capital are also crucial in this process. Even though these variables may be mostly found in largescale metropolitan areas such as New York, Los Angeles etc., Scott (2006, p. 9) argues that “there are also many small and specialised creative agglomerations all over the world” due to the process of increased differentiation. In addition, Hall (2004) argues that building a truly Creative City is possible but is a long-term process, and historical favourable preconditions are important

Emerging East-West corporate networks in Central European border regions: Some theoretical arguments and stylized facts

Economic re-integration after a long period of separation among countries with different levels of development is expected to start in border regions. Enterprises along the borderline can gain a rent due to low transport and transaction costs. They benefit from the fortunate opportunity of tapping the international division of labour on the shortest distance. Therefore, border regions should be predestined to become an economic powerhouse. Despite their great potential, border regions in Central Eastern Europe are far from being an economic entity. The enormous development differences are obviously a source of constraint rather than an impetus to integration. This paper examines the potential for cross-border activities on the German- Polish border. It - first, sketches the theoretical background, - second, presents some facts and figures, and - third, discusses the key policy question of how to overcome the obstacles to closer co-operation. The paper comes to the conclusion that close cross-border co-operation, which can be labelled as a network, is still the exception rather than the rule in the region under consideration. Most of the activities can be ranged in the category of simple subcontracting arrangements in which the German partners exploit the low wage, energy and pollution control costs beyond the border.

Economic and Political Perspectives on Integration in the Baltic Sea Region

The purpose of this paper is to address the influence of the changes in the European economic landscape in the aftermath of the break up of the iron curtain and the new dynamics of the process of European integration in the since 1989. The main focus is on the interaction between political and economic aspects of transition and reintegration in the Baltic Sea Region (BSR). In the first section a concept of spatial integration is sketched based on political and economic concepts of integration. The second part provides a brief record of political and economic integration and reintegration in the Baltic Sea Region. The central hypothesis is that the region has embarked on a path toward a coherent economic and political region with regard to political and economic affiliation. We have seen a consolidation of the old market economies within one trading block, and the former state trade economies will join the EU within two years. The old division of the Nordic countries into two different blocks concerning security policy seems also to diminish. In the same period, the cleavages between East and West with regard to security policy and economic system have disappeared. The paper aims to provide a comprehensive assessment of this process at the end of the first phase of transition at the threshold of the creation of a unified economic space in the Baltic Sea Region. The empirical section will contain information on economic flows as well as an assessment of the institutional changes within the BSR and the emerging new system of production and division of labor in the area. The final section will, based on the concept of spatial integration discuss, whether or not the BSR constitutes a functional region within the European regional system. Keywords: European economic integration - Transition and transformation in the BSR - The BSR in the European regional system ? Trade and Production in the BSR