The industrial rise of the Third Italy: Open windows of locational opportunity?

The article aims to test a theoretical concept (the Window of Locational Opportunity concept) which provides a particular perspective with respect to the key problem in economic geography of how to explain the ability of regions to generate or apply new technology. In short, this WLO-concept holds the view that windows of locational opportunity tend to open up in the event of new techno-industrial development: these are likely to provide opportunities of industrial development for both leading and backward regions. This is because the impact of space may be unpredictable and rather weak for several reasons: there is likely to be a poor match with the new requirements of new techno-industrial activities, their creative ability may safeguard their development in unfavourable places, while local conditions favourable to their development are likely to be of a generic nature. Following the principles behind this theoretical concept, we present a long-term spatial analysis of Italy, which aims to explain the industrial rise of the Third Italy region in the post-war period. It attempts to assess empirically the impact of spatial conditions (including culture) on the industrial rise of the so-called Third Italy region during its initial stage of development in the 1950s and 1960s. A regression technique has been used to determine which of many potential factors (for instance, culture, industrial specialization, infrastructure and low-cost, flexible labour) in the 1950s could be held responsible for the particular type of industrial development in the Third Italy area, which was based on dense networks of flexible, strongly related, small and medium-sized firms in craft-based industries (clothing, ceramics) in a number of specialized industrial districts. By doing so, we focus attention on the extent to which the industrial rise of the Third Italy region was a rather accidental event that could also have occurred in other regions such as the First Italy (the industrial heartland of the North) and the Second Italy (the backward South). The preliminary results at this stage of the analysis tend to point out that the cultural dimension makes the difference: this particular type of industrial development took place in the Third Italy region because of a local culture of entrepreneurship and cooperation which seems to be lacking to some degree in the other regions in Italy.

Evolutionary economic geography and its implications for regional innovation policy

Related variety is important to regional growth because it induces knowledge transfer between complementary sectors at the regional level. This is accomplished through three mechanisms: spinoff dynamics, labor mobility and network formation. They transfer knowledge across related sectors, which contributes to industrial renewal and economic branching in regions. Since these mechanisms of knowledge transfer are basically taking place at the regional level, and because they make regions move into new growth paths while building on their existing assets, regional innovation policy should encourage spinoff activity, labor mobility and network formation. Doing so, policy builds on region-specific assets that provides opportunities but also sets limits to what can be achieved by policy. Public intervention should neither apply Îone-size-fits-allÌ approaches nor adopt Îpicking-the- winnerÌ strategies, but should aim to connect complementary sectors and exploit related variety as a source of regional diversification.related variety, evolutionary economic geography, regional innovation systems, regional growth

The Spatial Evolution of Innovation Networks: A Proximity Perspective

We propose an evolutionary perspective on the geography of network formation that is grounded in a dynamic proximity framework. In doing so, we root the proximity concept in an evolutionary approach to the geography of innovation networks. We discuss three topics. The first topic focuses on explaining the structure of networks. The second topic concentrates on explaining the effects of networks on the performance of actors. The third topic deals with the changing role of proximity dimensions in the formation and performance of innovation networks in the longer run.evolutionary economic geography, knowledge networks, innovation networks, dynamic proximity

The cognitive and geographical composition of ego-networks of firms – and how they impact on their innovation performance

Firms’ embeddedness into knowledge networks has received much attention in the literature. However, little is known about the composition of firms’ ego-networks with respect to different types of proximities. Based on survey data of 295 firms in eight European regions, we show that the ego-networks of firms systematically differ in their geographical and cognitive embeddedness. We find that firms’ innovation performance is stimulated if the firm primarily links to technologically related firms as well as technologically similar organizations. Connecting with organizations at different geographical levels yields positive effects as well.ego-networks, geographical proximity, innovation performance, knowledge networks, technological relatedness

The emerging empirics of evolutionary economic geography

Following last decadeÕs programmatic papers on Evolutionary Economic Geography, we report on recent empirical advances and how this empirical work can be positioned vis-ˆ-vis other strands of research in economic geography. First, we review studies on the path dependent nature of clustering, and how the evolutionary perspective relates to that of New Economic Geography. Second, we discuss research on agglomeration externalities in Regional Science, and how Evolutionary Economic Geography contributed to this literature with the concepts of cognitive proximity and related variety. Third, we go into the role of institutions in Evolutionary Economic Geography, and we relate this to the way Institutional Economic Geography tends to view institutions. From this discussion, a number of new research challenges are derived.evolutionary economic geography, clusters, related variety, institutions, regional branching

Dynamics of Industrial Districts and Business Groups: the Case of the Marche Region

Italian industrial districts are undergoing fundamental changes due to globalization. Taking a firm perspective, we argue that the analysis of firm strategies, in particular the rise of business groups, is key to understand the organizational adjustments industrial districts have recently gone through. Due to the typical family structure of industrial district firms in the Marche region, as in other fragmented Italian districts, the organizational form adopted by firms to manage growth is that of the business group. We evaluate the empirical relevance of business groups in the Marche region, and we describe different transition strategies that turned firms into business groups.Industrial Districts, Business Groups, Globalization, Marche Region

Some Notes on Institutions in Evolutionary Economic Geography

Within the evolutionary economic geography framework the role of institutions deserves more explicit attention. We argue that territorial institutions are to be viewed as orthogonal to organisational routines in that each territory is characterised by a variety of routines, and in that a single firm can apply its routines in different territorial contexts. It is therefore meaningful to distinguish between institutional economic geography and evolutionary economic geography as their explanans is different. Yet, the two approaches can be combined in a dynamic framework in which institutions co-evolve with organisational routines, particularly in emerging industries. Furthermore, integrating the evolutionary and institutional approach allows one to analyse the spatial diffusion of organisational routines that mediate conflicts between social groups, in particular, those between capitalists and labourers. An evolutionary economic geography advocates an empirical research program, both qualitative and quantitative, in which the relative importance of organisational routines and territorial institutions for regional development can be addressed.evolutionary economic geography, routines, institutions

Knowledge networks in the Dutch aviation industry: the proximity paradox

The importance of geographical proximity for interaction and knowledge sharing has been discussed extensively in economic geography in recent years. There is increasing consensus that it is just one out of many types of proximities that might be relevant. We argue that proximity may be a crucial driver for agents to connect and exchange knowledge, but too much proximity between these agents on any of the dimensions might harm their innovative performance at the same time. In a study on knowledge networks in the Dutch aviation industry, we test this so-called proximity paradox empirically. We find evidence that the proximity paradox holds to some degree. Our study clearly shows that cognitive, social and geographical proximity are crucial for explaining the knowledge network of the Dutch aviation industry. But while it takes cognitive, social and geographical proximity to exchange knowledge, we found evidence that proximity lowers firms's innovative performance, but only in the cognitive dimension.proximity, paradox, social network analysis, knowledge networks, aviation