Local economic development between system transformation and locational competition- the example of the city of Leipzig
Martin T. W. Rosenfeld, S. Kohler
Forschungs- und Sitzungsberichte der ARL, Bd. 238,
2012
Abstract
The example of Leipzig is used to investigate the effects ofstructural changes and increasin¬gly intense locational competition. Leipzig is particularly interesting because the city was traditionally a location for knowledge and trade, factors and/or activities that are being assigned particular significance under present day conditions of locational competition. Leipzig is currently well equipped with important potential factors. However, in terms of economic results the city has not yet been able to regain the position it occupied before the Second World War. In this context the consequences of the command economy and system transformation have played just as important a role as the changes in locational competition. The influence of these changes in Leipzig is made particularly clear by, among otherthings, L. the way in which the city - in common with other cities too - applies “modern“ economic policy strategies (cluster promotion, amenity strategy, metropolitan region strategy).
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Regional Entrepreneurial Opportunities in the Biotech Industry: Exploring the Transition from Award-winning Nascent Entrepreneurs to Real Start-ups
Claus Michelsen, H. Wolf, Michael Schwartz
European Planning Studies,
2013
Abstract
Knowledge of factors that determine the transition from nascent entrepreneurship into real entrepreneurship is of major importance for policies aiming to effectively stimulate start-ups. Whereas scholars concentrated on person-specific factors to explain transition probabilities, environmental characteristics have been fairly neglected. Given that entrepreneurship is a strongly localized phenomenon, this paper argues that regional entrepreneurial opportunities are a driving force behind the transition from nascent entrepreneurship to new venture creation. Based on unique data on 103 nascent entrepreneurs in the German biotechnology industry, we empirically assess the importance of regional entrepreneurial opportunities on transition probabilities. Further, we introduce a new approach to measure nascent entrepreneurship by capturing individuals that actively participate in start-up competitions and have won at least one competition. Controlling for technology and individual characteristics, we find strong support for our hypotheses relating to the significant impact of general regional opportunities, specific regional opportunities and the entrepreneurial environment for the probability of transition from award-winning nascent entrepreneurs to real start-ups.
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Competitive Distortions of Bank Bailouts
Michael Koetter, Felix Noth
Abstract
This study investigates if the Troubled Asset Relief Program (TARP) distorted price competition in U.S. banking. Political indicators reveal bailout expectations after 2009, manifested as beliefs about the predicted probability of receiving equity support relative to failing during the TARP disbursement period. In addition, the TARP affected the competitive conduct of unsupported banks after the program stopped in the fourth quarter of 2009. Loan rates were higher, and the risk premium required by depositors was lower for banks with higher bailout expectations. The interest margins of unsupported banks increased in the immediate aftermath of the TARP disbursement but not after 2010. No effects emerged for loan or deposit growth, which suggests that protected banks did not increase their market shares at the expense of less protected banks.
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State Aid in the Enlarged European Union: Taking Stock
Jens Hölscher, Nicole Nulsch, Johannes Stephan
From Global Crisis to Economic Growth. Which Way to Take?, Vol. 1,
2012
Abstract
In the early phase of transition that started with the 1990s, Central and Eastern European Countries (CEECs) pursued economic restructuring that involved massive injections of state support. With reference to the history of state aids in centrally planned economies we display state aid practices of CEECs since full EU membership and analyse whether their industrial policies during and after transition challenged the European state aid legislation and whether these fit into the EUs strategy of ‘less but better targeted aid’. Therefore, qualitative analysis in case studies is used to supplement a quantitative description of state aid levels in East and West. Findings suggest that in recent years a level playing field across the EU has indeed emerged. In fact, the most pronounced differences in this respect are not observed between CEECs and the EU-15 but rather between Northern and Southern member states.
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Foreword: Competing: Important Stimuli for Knowledge Cities to Become Prosperous
Peter Franz
T. Yigitcanlar, K. Metaxiotis, J. Carrillo (eds), Building Prosperous Knowledge Cities. Policies, Plans and Metrics,
2012
Abstract
The author discusses the role of competitions in urban development strategies based on the cooperation of higher education institutions. The experience with similar strategies in regional policy and in innovation policy is reflected upon. After the presentation of some cases, the advantages and disadvantages of development strategies based on competitions are compared.
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Intellectual Property Rights Policy, Competition and Innovation
Daron Acemoglu, Ufuk Akcigit
Journal of the European Economic Association,
No. 1,
2012
Abstract
To what extent and in what form should the intellectual property rights (IPR) of innovators be protected? Should a company with a large technology lead over its rivals receive the same IPR protection as a company with a more limited advantage? In this paper, we develop a dynamic framework for the study of the interactions between IPR and competition, in particular to understand the impact of such policies on future incentives. The economy consists of many industries and firms engaged in cumulative (step-by-step) innovation. IPR policy regulates whether followers in an industry can copy the technology of the leader. We prove the existence of a steady-state equilibrium and characterize some of its properties. We then quantitatively investigate the implications of different types of IPR policy on the equilibrium growth rate and welfare. The most important result from this exercise is that full patent protection is not optimal; instead, optimal policy involves state-dependent IPR protection, providing greater protection to technology leaders that are further ahead than those that are close to their followers. This is because of a trickle-down effect: providing greater protection to firms that are further ahead of their followers than a certain threshold increases the R&D incentives also for all technology leaders that are less advanced than this threshold.
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Political Institutionalisation and Governance of the German Metropolitan Regions: A Comparative Study
Peter Franz
Wirtschaft im Wandel,
No. 11,
2011
Abstract
In Germany, some cities and districts try to react to the challenges of global location competition by the constitution of metropolitan regions. Thus new forms of intermunicipal co-operation on a regional scale emerge. Within the context of a national policy for spatial development eleven such metropolitan regions have been defined in Germany, and local activities supporting their constitution were encouraged. In spite of differing results and success in the eleven regions this process of political institutionalisation has led to partially similar institutional forms. This study compares the institutionalisaton process in the German metropolitan regions with the help of an idealtype model of institutionalisation steps. In addition, the design of the comparative study also allows testing potential effects of intervening factors as the regions’ monocentricity / polycentricity and the existence of Laender borders in a region on cooperative success. The study comes to the result that so far only few metropolitan regions have reached the stage of advanced institutionalisation and co-operation. The diversity of the institutionalisation paths prevents a „best practice“ recommendation at the present state of knowledge. As the constitution process in the regions still proceeds in a highly dynamic way, this study should be repeated within a five years’ period.
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Cluster Policies in the Federal States of Bavaria and Thuringia: Discrepancies between Practice and Theory
Gerhard Heimpold
Wirtschaft im Wandel,
No. 10,
2011
Abstract
The contribution analyzes cluster policies pursued in the Federal States of Bavaria and Thuringia. The investigation is based on the exploration of government documents. In both countries cluster policy is target at strengthening competitiveness. The documents explored do not reveal an economic justification for cluster policy in the sense of eliminating market failures, e. g. externalities, information asymmetries and coordination failures. Therefore, it is unclear whether the support schemes under consideration really tie in with factors that hamper cluster evolution. Policies in both states support state-wider clusters and networks. The state-wide focus, however, might undervalue advantages of spatial proximity. As another critical point the ex-ante selection of industries or technologies eligible under cluster policy can be regarded. Despite readiness of considering new technologies etc., public administration generally suffers from a lack of information about the future development perspectives of industries and technologies. A way to mitigate the limited capability of public administration in terms of forecasting might be favoring economic support based on competition for the best concepts/projects instead of focusing on certain industries. Several support schemes offered by the Federal government in Germany are already competition-based. In Thuringia cluster policy is strongly motivated by several structural shortcomings, e. g. by the fragmented firm landscape mainly consisting of small units. Therefore, beyond cluster policy, the necessity will remain to abolish directly the structural shortcomings mentioned, especially by providing an economic environment that enhances firm growth.
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University Cities: Including Universities and Research Institutes into Strategies for Urban Growth
Peter Franz
International Journal of Knowledge-Based Development,
2011
Abstract
The topic of this special issue refers to the observation that many larger and middle-sized cities dispose of a considerable potential of institutions creating and disseminating knowledge. This kind of endowment seems to be especially valuable in an upcoming knowledge-based economy. Recent strategic concepts and inter-city competitions referring to ‘knowledge-based urban development’, ‘knowledge city’, ‘creative city’, ‘science city’ or ‘entrepreneurial university’ indicate that urban planners and politicians are beginning to search for strategies to take advantage and to make use of this potential. The papers in this special issue a) present case studies of cities trying to activate their knowledge resources for local economic growth, b) deal with regulatory barriers and problems for cities applying ‘knowledge city’ strategies, c) analyze the university support for entrepreneurial activities, and d) discuss some implications of ‘knowledge city’ strategies for architecture and urban planning.
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Effects of Local Public Investment into Infrastructure for Tourism: The Example of Saxony
Albrecht Kauffmann
Jahrbuch für Regionalwissenschaft,
No. 1,
2011
Abstract
The mass of investments into infrastructure for tourism in the so-called “New States” (Neue Länder) of the Federal Republic of Germany after 1990 was huge. They were aimed to the maintenance and recovery, respectively of competitiveness of traditional destinations, as well as to promote service-oriented structural change in industrial wastelands. A big part of these investments was supported by funds of the so called “Joint Task for Improving the Regional Economic Structure”. We analyse the effects of local public investment into infrastructure for tourism supported by investment grants on the local employment in accommodation and food service activities in the state of Saxony. The results provide evidence for correlations between special types of investment in the time period 2000–2007 and the development of employment in hospitality industry. However, this is subject to some requirements, such as the existence of complementary factors, or an existing regional touristic tradition as well.
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