Agglomeration economies in the Finnish manufacturing sector

Regional concentration of population and economic activity is a common phenomenon both in Finland and the other most developed countries, which refers to the existence of agglomeration economies. Two types of economies are usually recognised to be important: specialisation (Marshall externalities) and diversity (Jacobs externalities) economies. The former refer to the geographical concentration of a specific industry and the latter to the industrial diversity of the local system. This paper examines the relationship between agglomeration economies and regional productivity in the manufacturing sector in Finland. A distinction is made between the effects of urbanisation and localisation economies. The production function method is applied to the manufacturing sub-sectors in the 83 NUTS 4-level regions in 1995 and 1999. The results find in favour of regional specialisation more than diversification even if some differences can be seen between the manufacturing sub-sectors. Localisation economies seem to be stronger in the regions where the average size of firms is small, which indicates that regions with smaller firms might profit more from localisation.

Knowledge spillovers – Mobility of highly educated workers within high technology sector in Finland

The economic development and technological progress of a region are highly dependent on the accumulation and diffusion of knowledge. There are numerous channels through which knowledge might be transmitted. In this study, it is assumed that regional mobility of highly educated and innovative intensive workers between firms, organisations or institutions secures the diffusion and circulation of the knowledge. Hence, this analysis will concentrate on the regional job flows of individuals working in the high technology sector. The main topics of interest are: (1) to analyse the personal and household characteristics of the typical highly educated migrants within high technology sector, and (2) to evaluate the rate of labour turnover in different sub-sectors and regions. The empirical analysis of the paper is based on data from the Finnish Longitudinal Census File. Methodologically, the worker flows between regions are modelled by the maximum likelihood estimation which employs cross-sectional binary logit model, based on logistic distribution.

Agglomeration economies in the Finnish manufacturing sector

Regional concentration of population and economic activity is a common phenomenon both in Finland and the other most developed countries, which refers to the existence of agglomeration economies. Two types of economies are usually recognised to be important: specialisation (Marshall externalities) and diversity (Jacobs externalities) economies. The former refer to the geographical concentration of a specific industry and the latter to the industrial diversity of the local system. This paper examines the relationship between agglomeration economies and regional productivity in the manufacturing sector in Finland. A distinction is made between the effects of urbanisation and localisation economies. The production function method is applied to the manufacturing sub-sectors in the 83 NUTS 4-level regions in 1995 and 1999. The results find in favour of regional specialisation more than diversification even if some differences can be seen between the manufacturing sub-sectors. Localisation economies seem to be stronger in the regions where the average size of firms is small, which indicates that regions with smaller firms might profit more from localisation

Role of regional policies in promoting networking and innovation activity of firms

The success of firms and regions is increasingly defined by their innovation and learning capabilities. It has been emphasized in several studies that a local operational environment may have a positive impact on innovation activity of firms. From policy point of view, the relationship between firms and their local environment is an important research topic. The purpose of this paper is to explore whether there is a demand for regional policy makers in promoting innovative and networking activity of firms, and what are the appropriate strategies in this regard. The concept of innovative milieu provides a theoretical base for this study. The data used is based on personal interviews representing 30 high tech firms located in Jyväskylä Science Park in Finland. The results show that the firms appreciate an individual-level approach by policy makers which enables them to take the real needs of firms into consideration. A developed service structure, that is planned to meet the demand of new and established firms as well as possible, is an essential part of the well functioning operational environment. Supporting contacts with service providers and experts from different fields and organizing collective meetings for firms are important targets for the policy makers. In the innovation process, a commercial view of external part is considered very crucial. The small advances which alternate between the development of the innovation process and networks among firms and their interest groups could form a favourable path towards an operational environment with efficient innovative networks.

Role of regional policies in promoting networking and innovation activity of firms

The success of firms and regions is increasingly defined by their innovation and learning capabilities. It has been emphasized in several studies that a local operational environment may have a positive impact on innovation activity of firms. From policy point of view, the relationship between firms and their local environment is an important research topic. The purpose of this paper is to explore whether there is a demand for regional policy makers in promoting innovative and networking activity of firms, and what are the appropriate strategies in this regard. The concept of innovative milieu provides a theoretical base for this study. The data used is based on personal interviews representing 30 high tech firms located in Jyväskylä Science Park in Finland. The results show that the firms appreciate an individual-level approach by policy makers which enables them to take the real needs of firms into consideration. A developed service structure, that is planned to meet the demand of new and established firms as well as possible, is an essential part of the well functioning operational environment. Supporting contacts with service providers and experts from different fields and organizing collective meetings for firms are important targets for the policy makers. In the innovation process, a commercial view of external part is considered very crucial. The small advances which alternate between the development of the innovation process and networks among firms and their interest groups could form a favourable path towards an operational environment with efficient innovative networks

Työvoiman siirtyminen korkeakouluista yksityiselle ja julkiselle sektorille

Tiedon ja osaamisen merkitys kansallisen ja alueellisen talouskasvun ja kehityksen edistäjänä korostuu yhä enemmän. Tämä on asettanut kasvavia vaatimuksia korkeakoulujen ja muun yhteiskunnan tiivistyvälle yhteistyölle ja tehokkaalle tiedon siirrolle. Korkeakoulujen, muun julkisen sektorin ja yksityisen sektorin väliset raja-aidat ovat madaltuneet. Työvoiman liikkuvuus voidaan nähdä yhtenä olennaisena kanavana tiedon ja osaamisen siirrossa. Tässä tutkimuksessa keskitymme tarkastelemaan työntekijöiden liikkuvuutta korkeakouluista yrityksiin ja julkiselle sektorille. Kuvailevassa tarkastelussa hyödynnämme laajaa yksilötason aineistoa vuosilta 2004-2006. Tulokset osoittavat yksilön iällä ja koulutusalalla olevan olennainen vaikutus siirtymiseen korkeakoulusta julkiselle tai yksityiselle sektorille. Julkiselle sektorille siirtyvät työntekijät hajaantuvat tasaisemmin eri alueille, kun taas erityisesti pääkaupunkiseudun yritykset houkuttelevat suurimman osan yksityiselle sektorille vaihtajista. Toimialavirtojen tarkastelu osoittaa, että osaamisintensiiviset liike-elämän palvelut ja korkean teknologian teollisuus tarjoavat paljon työmahdollisuuksia korkeakoulujen asiantuntijuudelle

OECD/IMHE - Supporting the contribution of higher education institution to regional development : Self-evaluation report of the Jyväskylä region in Finland

Together with 13 other regions from different OECD countries the Jyväskylä region is participating in the project that aims to boost regional contribution of higher education institutions (HEIs). The overall project Supporting the contribution of HEIs to regional development is coordinated by the OECD programme on Institutional Management of Higher Education (IMHE). As a part of the regional development process a cooperative self-evaluation, which gathers together the HEIs and their stakeholders, has been launched in each region. This is followed by the review visit of an international review team which aims to further support the regional learning process. In the Jyväskylä region all central actors were participating in the self-evaluation process and content of this report is based on their viewpoints on prevailing situation and potential focal points for development. The regional steering committee consists of representatives from the University of Jyväskylä, Jyväskylä Polytechnic, Regional Council of Central Finland, City of Jyväskylä, Jyväskylä Regional Development Organization (JYKES), Jyväskylä Science Park, Federation of Central Finland’s Enterprises, Central Finland Chamber of Commerce and the Ministry of Education. The member organizations of the steering committee participated also in the funding of the project. In addition, the expertise of the State Provincial Office of Western Finland and Employment and Economic Development Centre of Central Finland was used in the process. The self-evaluation process of the Jyväskylä region was coordinated by the Expert Division of the University of Jyväskylä. The main objective of the self-evaluation was to produce a versatile description about the contribution of HEIs to the development of the Jyväskylä region, and ­practical information on possible bottlenecks of the process and potential development fields. The self-evaluation is basically intended for the support of learning and development process. Interaction between the HEIs and their regional stakeholders was analyzed and processed through interviews, questionnaires, workshops and work of the regional steering committee. Within the HEIs the evaluation data was gathered from the central management, management of different units (faculties, schools, separate units), experts of different themes and from the development personnel. In regard to stakeholders the interviews were mainly directed to the leadership of organizations and thematic experts. The self-evaluation revealed that the starting-points of regional interplay differ markedly between the two institutions and between the faculties and schools within them. In the Jyväskylä Polytechnic the regional interaction is one of the most important vertical aspects guiding its operation, whereas at the University of Jyväskylä the regional contribution is rather seen as a horizontal theme which maps the applicable channels for regional exploitation. Part of the faculties / departments / schools have integrated the regional contribution as a key field in their operation, whereas in the others the need for regional interaction is only recognized but not real measures have been taken so far. However, when analyzing the regional contribution of HEIs the ability of regional actors to use the know-how produced by the HEIs should also be taken account. Despite the different starting-points the HEIs cooperate actively and interact with their stakeholders to contribute regional development. Several important regional development processes are in progress in HEIs in which the regional intermediary organizations and firms have a significant role as well. On the other hand, a lot of potential for strengthening the regional contribution is still unused. However, the exploitation of that reserve requires a new kind of approach in which the HEIs collaborate closely with each others as well as with their stakeholders. Both the HEIs and their stakeholders have recognized a need for a common forum that supports the strategic planning. Moreover, it is considered essential that the cooperation between the HEIs will be further deepened to rationalize and strengthen the regional development work

Knowledge spillovers – Mobility of highly educated workers within high technology sector in Finland

The economic development and technological progress of a region are highly dependent on the accumulation and diffusion of knowledge. There are numerous channels through which knowledge might be transmitted. In this study, it is assumed that regional mobility of highly educated and innovative intensive workers between firms, organisations or institutions secures the diffusion and circulation of the knowledge. Hence, this analysis will concentrate on the regional job flows of individuals working in the high technology sector. The main topics of interest are: (1) to analyse the personal and household characteristics of the typical highly educated migrants within high technology sector, and (2) to evaluate the rate of labour turnover in different sub-sectors and regions. The empirical analysis of the paper is based on data from the Finnish Longitudinal Census File. Methodologically, the worker flows between regions are modelled by the maximum likelihood estimation which employs cross-sectional binary logit model, based on logistic distribution