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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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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Entrepreneurial Opportunity and the Formation of Photovoltaic Clusters in Eastern Germany
Matthias Brachert, Christoph Hornych
R. Wüstenhagen, R. Wuebker (Hrsg.), Handbook of Research on Energy Entrepreneurship,
2011
Abstract
The aim of this paper is to explain the evolution of the spatial structures of one particular type of renewable energy in Germany – the photovoltaic (PV) industry. We first demonstrate how environmental movements have contributed to institutional change and government action, leading to changes in the legal and regulative structure in Germany. We describe how these changes opened up a window of locational opportunity (WLO), thus combining the WLO concept with the entrepreneurial opportunity concept. As market entries occurred mainly in Eastern Germany, the paper also explores the factors leading to a concentration of economic activity related to the new PV industry in this part of the country. Based on the WLO concept, we combine this framework with the industrial dynamics literature by Klepper (2007) and illustrate the spatial evolution of the PV industry.
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What Drives FDI in Central-eastern Europe? Evidence from the IWH-FDI-Micro Database
Andrea Gauselmann, Mark Knell, Johannes Stephan
Post-Communist Economies,
No. 3,
2011
Abstract
The focus of this paper is on the match between strategic motives of foreign investments into Central-Eastern Europe and locational advantages offered by these countries. Our analysis makes use of the IWH-FDI-Micro Database, a unique dataset that contains information from 2009 about the determinants of locational factors, technological activity of the subsidiaries, and the potentials for knowledge spillovers in the Czech Republic, Hungary, Poland, Romania, and Slovakia. The analysis suggests that investors in these countries are mainly interested in low (unit) labour costs coupled with a well-trained and educated workforce and an expanding market with the high growth rates in the purchasing power of potential buyers. It also suggests that the financial crisis reduced the attractiveness of the region as a source for localised knowledge and technology. There appears to be a match between investors’ expectations and the quantitative supply of unqualified labour, not however for the supply of medium qualified workers. But the analysis suggests that it is not technology-seeking investments that are particularly content with the capabilities of their host economies in terms of technological cooperation. Finally, technological cooperation within the local host economy is assessed more favourably with domestic firms than with local scientific institutions – an important message for domestic economic policy.
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Cooperation propensity and public cooperation funding in the German Laser Industry
Muhamed Kudic, Katja Guhr, I. Bullmer, Jutta Günther
Wirtschaft im Wandel,
No. 3,
2011
Abstract
The high-tech strategy of the federal government defines eight key technologies, including laser industry as a part of the optical technologies. This study provides a first descriptive overview of cooperation propensity and public cooperation funding for German Laser Source manufacturers between 1990 and 2010. Results show that the industry in general was characterized by expansion even though there were periods with a high degree of fluctuations. The spatial analysis of firm entries and exits reveals some interesting insights. The majority of large laser source companies are located in Bavaria, Baden-Württemberg and Thuringia. These regional distribution patterns hold for the absolute number of publicly funded cooperation projects. When considering the relative number of collaborative projects per firm and region the picture changes. It turns out that especially laser source manufacturers in Thuringia, Rhineland-Palatinate and Hamburg show up the highest cooperation propensities and an above-average demand for public funding.
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Endogenous Selection of Comparison Groups, Human Capital Formation, and Tax Policy
Oded Stark, Walter Hyll, Y. Wang
Economica,
No. 313,
2012
Abstract
We consider a setting in which the acquisition of human capital entails a change of location in social space that causes individuals to revise their comparison groups. Skill levels are viewed as occupational groups. Moving up the skill ladder by acquiring additional human capital, in itself rewarding, leads to a shift in the individual’s inclination to compare himself with a different, and on average better-paid, comparison group, in itself penalizing. We shed new light on the dynamics of human capital formation, and suggest novel policy interventions to encourage human capital formation in the aggregate and reduce inter-group income inequality.
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Economic Effects of Investment Grants for Water and Sewerage Infrastructure – The Case of Saxony
Peter Haug
Wirtschaft im Wandel,
No. 11,
2010
Abstract
The article deals with the regional economic growth effects of the German “Joint Scheme” for the improvement of regional economic structures (“GA-Infra”). It focuses on water and sewerage projects located in the federal state of Saxony (Germany) during the funding period 2000-2007. Evaluating these projects is important for scientific as well as for economic policy reasons.
First of all, according to general economic theory, the potential direct and indirect supply-side effects of the water and sewerage infrastructure as well as the price effects caused by this infrastructure are relevant for location decisions only to certain branches of the manufacturing industry.
Subsidies for the development of the sewerage infrastructure have been granted mostly according to the growth target of regional policy, i.e. primarily to municipalities with above-average volumes of industry sewage. This finding could not be confirmed for water provision.
A regression analysis (estimating the labour demand of the local manufacturing industry) showed no empirical evidence for any relationship between the changes in labour demand and the amount of GA-Infra funded water and sewerage infrastructure investments. This might be a consequence of the already satisfactory development condition of the infrastructure in question at the beginning of the funding period (“ubiquitous infrastructure”).
According to a survey of local governments conducted by the IWH, these results might be explained by the fact that business customers did not benefit from price reductions despite the GA-Infra funding granted to their local water and sewage disposal providers. Even though there might be some intuitively plausible reasons (decreasing population, no connection fees) for these findings, no effect on firm location decisions can be expected under these circumstances.
All in all, we do not consider the further extension of these funding priorities to be necessary. Especially, the GA-Infra water/sewerage grants should neither be used to mitigate the cost effects of demographic changes or regulation nor to compensate for losses caused by the buyer power of large firms.
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A Control Group Study of Incubators’ Impact to Promote Firm Survival
Michael Schwartz
Wirtschaft im Wandel,
No. 7,
2010
Abstract
For more than half a century, publicly funded business incubators (BIs) are at the heart of urban and regional technology and innovation policies. However, it is widely unclear as to whether start-up firms supported by publicly-initiated incubator initiatives have higher survival rates than comparable start-up firms that have not received support by such initiatives. The present article contributes to the underlying discussion by performing an empirical analysis of the long-term survival of 371 incubator firms (after their graduation) from five German BIs and contrasting these results with the long-term survival of a control group of 371 comparable non-incubated firms. The analysis covers a 10-year time span. For neither of the five incubator locations, we find statistically significant higher survival probabilities for firms located in incubators compared to firms located outside those incubator organizations. For three incubator locations the analysis even reveals statistically significant lower chances of survival for those start-ups receiving support by an incubator. We therefore arrive at the conclusion that being located in an incubator does not increase the chances of long-term business survival.
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The Attractiveness of East Germany as Investment Location for Multinational Enterprises (MNEs)
Andrea Gauselmann, Björn Jindra
Wirtschaft im Wandel,
No. 6,
2010
Abstract
The article analyses the general motives of MNEs for investment in East Germany as well as the quality of selected locational factors in East Germany from multinational affiliates’ point of view. In contrast to existing studies for East Germany the article dedicates particular attention to the role of MNEs’ heterogeneity. The research draws from the third survey of the IWH FDI-Micro database in 2009, which offers a representative sample of multinational affiliates of the East German economy. The results show a fundamental shift in the relative importance of investment motives during the transition process of East Germany. Since the mid 1990s East Germany attracts increasingly investors that target economies of scope of local technological advantage rather than low-cost advantages of local production factors as the case in the early transition period. It can be demonstrated that the investment motives depends on the country of origin, the type and timing of market entry as well as the sector of the multinational affiliate. Amongst the given locational factors affiliates value the quality of the socio-cultural context highest. This group of soft factors is followed by locational aspects related the potential for technological cooperation, the availability of labour, and finally the extent of fiscal and financial incentives. There exist significant differences in the judgment about quality of different locational aspects depending on the country of origin and the underlying investment motive. Finally the article identifies possible policy measures in the area of skilled labour, technology and investment policy in order to sustain the attractiveness of East Germany as investment location in the future.
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