How to Make a City Attractive for Knowledge-Intensive Firms? – The Formation and Stagnation of Media Industry in the Old Industrial Region of Halle (Germany)
Christoph Hornych, Martin T. W. Rosenfeld
The Regeneration of Image in Old Industrial Regions: Agents of Change and Changing Agents. Mönchengladbacher Schriften zur wirtschaftswissenschaftlichen Praxis, Bd. 22,
2009
Abstract
In many regions with development problems, which had – in the past – been the domain of traditional industries, policymakers are trying today to stimulate entrepreneurial activities in knowledge-intensive and creative industries. The question is whether this strategy could really be successful. This paper reports on a case-study for the region of Halle an der Saale, which is located in the state of Saxony-Anhalt (East Germany), where the strategy of policymakers has recently been the attempt to support firms from Media Industry (“MI”).
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From District Capital to State Capital: What are the Consequences of Rebuilding the East German States for the System of Cities?
Albrecht Kauffmann
Wirtschaft im Wandel,
No. 12,
2009
Abstract
20 years after the German unification, one may ask what consequences for the system of East German cities follow from the changes of the institutional framework. It may be expected that gains or losses of a location in the hierarchy of central places significantly affect the outcome of economic activity as well as the accumulation of – particularly human – capital. The reorganisation of countries on the territory of the former GDR that has elevated five former district capitals to the status of state capitals while the other ones became urban municipalities has created a model case whose implications were investigated by the IWH. The main objective was to identify a pattern of group formation within the former district capitals on the basis of socioeconomic indicators that coincides with the subgroups out of them with and without the status of a capital state. By means of cluster analysis, we have found that already from 1995 to 2000, differences between both groups with regard to income, structure of employment, human capital, and other indicators were significantly. In the period from 2002 to 2007, the spread of income is growing not only between both groups but also within the group of state capitals, dividing their cluster. We can conclude that the allocation of political institutions of higher centrality has influence on local economic development.
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The Spatial Clustering of the Photo-voltaic Industry in Berlin-Brandenburg
Steffen Ebert, Matthias Brachert, Iciar Dominguez Lacasa
Wirtschaft im Wandel,
No. 11,
2009
Abstract
Recent empirical studies show a process of selective clustering in the photo-voltaic industry in East Germany. Especially locations like Bitterfeld-Wolfen, Freiberg/Dresden, Erfurt/Arnstadt and Berlin-Brandenburg were able to attract concentrations of economic activity in this industry. Regarding competition between the different locations for production and employment, emerging agglomeration economies can be seen as one major source increasing inter-regional competitiveness.
The aim of this article is to provide insights into the process of spatial clustering of photo-voltaic industry in Berlin-Brandenburg. With the help of a multi-dimensional cluster-concept developed by Bathelt, we analyse the region’s strengths and weaknesses regarding its generation of agglomeration economies.
The analysis shows that there are indeed first signs of agglomeration economies developing in the region. Despite a low level of horizontal cooperation, companies do profit from co-localisation by continuous observation of the local competitors. Along the value adding production chain, vertical co-operation is increasing, leading to positive effects by specialised suppliers and gains in transportation cost.
But the focal point in further industry development is the augmentation of the regional stock of knowledge. Regarding the increasing pressure on the companies’ innovativeness as a result of changes in market conditions in the photo-voltaic sector, only innovative and efficiently producing companies will be able to survive the industries’ consolidation period. Therefore, it is necessary to further support the increasing interconnectedness between university research, non-university research and local companies in order to profit from the high technological potential of the companies in the region.
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Financial constraints and the margins of FDI
Claudia M. Buch
Bundesbank Discussion Paper 29/2009,
2009
Abstract
Recent literature on multinational firms has stressed the importance of low productivity as a barrier to the cross-border expansion of firms. But firms may also need external finance to shoulder the costs of entering foreign markets. We develop a model of multinational firms facing real and financial barriers to foreign direct investment (FDI), and we analyze their impact on the FDI decision (the extensive margin) and foreign affiliate sales (the intensive margin). We provide empirical evidence based on a detailed dataset of German multinationals which contains information on parent-level and affiliate-level financial constraints as well as about the location the foreign affiliates. We find that financial factors constrain firms’ foreign investment decisions, an effect felt in particular by large firms. Financial constraints at the parent level matter for the extensive, but less
so for the intensive margin. For the intensive margin, financial constraints at the affiliate level are relatively more important.
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Industrielle Cluster als Ursache regionaler Prosperität? Zur Konvergenz deutscher Arbeitsmarktregionen 1996-2005
Alexander Kubis, Matthias Brachert, Mirko Titze
Raumforschung und Raumordnung,
/6
2009
Abstract
This paper explores the impact of industrial clusters on regional growth at level of Germany’s functionally defined labour market regions (AMR) within a regional convergence model. It focuses especially on the role of the co-location of vertically connected industrial sectors. Based on works of Schnabl (2000) it is possible to identify three different effects of industrial clusters on regional economic performance. Beside the effect of regionally concentrated economic sectors (horizontal clusters) and value adding chains (vertical clusters) on the region itself, we are able to control for regional spillover effects of industrial clusters. Further the study allows the isolated examination of the impact of industrial cluster while taking regional convergence into consideration. It is possible to demonstrate positive growth effects of industrial clusters along with an overall process of convergence as same as with a specific eastern one. Therefore industrial cluster present an opportunity to explain deficits within the process of East-West-Convergence. Their relative absence of industrial clusters in Eastern Germany influences the growth potential in a negative way.
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Knowledge City Berlin? Potenziale und Risiken einer Stadtentwicklungsstrategie mit dem Fokus Wissenschaft
Peter Franz
Das Wissen der Städte. Neue stadtregionale Wissensdynamiken im Kontext von Wissen, Milieus und Governance,
2009
Abstract
In this chapter the author applies his own „knowledge city“ approach (Franz 2007) to the German capital city of Berlin. After examining the quality profile of the universities located at Berlin the author analyses diverse strategic steps in support of a sharpened scientific profile having already been put into action by managers being responsible for science policy in Berlin.
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Aktuelle Trends: Gemeinsam statt einsam: Forschungskooperationen auswärtiger Investoren in Ostdeutschland
Jutta Günther, Björn Jindra, Johannes Stephan
Wirtschaft im Wandel,
No. 5,
2009
Abstract
Auswärtige Investoren, das heißt Tochtergesellschaften ausländischer und westdeutscher multinationaler Unternehmen mit Sitz in den Neuen Bundesländern (NBL), bilden mit ca. 3 500 Gesellschaften und über 500 000 Beschäftigten im Produzierenden Gewerbe und in ausgewählten Dienstleistungsbranchen einen wichtigen Bestandteil der ostdeutschen Wirtschaft (einschließlich Berlin). Nicht selten finden sich in dieser Gruppe große und technologieorientierte Unternehmen mit strukturbestimmendem Charakter. Das IWH befragt diese Unternehmen daher jährlich insbesondere zu ihren Forschungs- und Entwicklungsaktivitäten.
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Possible Ways for Developing a Media City: Chances for Newcomer Cities are rather Limited!
Christoph Hornych, Martin T. W. Rosenfeld, Michael Schwartz
Wirtschaft im Wandel,
No. 5,
2009
Abstract
Numerous cities try to set up themselves as centres of creative businesses, especially for media industry. Behind such strategies for supporting the local media economy stands the aim to profit from the high share of supra-regional sales in the media economy, from possible image effects as well as – especially in Germany – from the backflow of taxes for public broadcasting. Against this background, the article examines the efficiency of possible instruments for local decision makers to improve the location conditions for the media industry. An analysis of the location preferences of the media industry shows that localization economies as well as urbanization economies have a high importance. Economic measures to generate or strengthen these effects are the attraction of public broadcasting stations, the assignment of subsidies for local film and media producers, the endowment with science facilities and educational institutions which are relevant for media, the establishment of business incubators specialized on media industry, and the development of inter-firm networks and special city districts for the local media industry. Our analysis shows that most of these instruments have only limited impacts. In particular, cities without public broadcasting stations and without educational institutions relevant for the branch probably will not have the chance to become media cities.
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The Formation of Photovoltaic Clusters in Eastern Germany
Matthias Brachert, Christoph Hornych
Wirtschaft im Wandel,
No. 2,
2009
Abstract
One of the weaknesses of the East German economy is the relative lack of management functions and headquarters along with the relatively low research and developing efforts of the companies. With the emergence of new industries, there is a chance to respond to these weaknesses. Against this background, the article examines the emergence and development of the photovoltaic industry in Eastern Germany. The strong production and sales growth of the industry in the recent years is a result of central government funding programs. But up to now, East German regions have profited disproportionately from the growth of the sector. In 2008, we find about 14 000 direct industry employees in this sector in Eastern Germany.
Based on the Window of Locational Opportunity concept (WLO) by Storper and Walker – a stage model of industrial development –, this article describes the reasons of the development of the industry in Eastern Germany from 1996 until 2008. In spite of persistent growth processes and the foundation of new companies within the photovoltaic industry, a concentration on some certain locations, linked with the process of the formation of industrial clusters, becomes apparent. In a first result of the emergence of clusters, the regions of Bitterfeld-Wolfen, Dresden/Freiberg, Erfurt/Arnstadt, Frankfurt (Oder) and Berlin build leading sites in Eastern Germany.
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Are there Gender-specific Preferences for Location Factors? A Grouped Conditional Logit-model of Interregional Migration Flows in Germany
Lutz Schneider, Alexander Kubis
IWH Discussion Papers,
No. 5,
2009
Abstract
The article analyses the question whether women and men differ in their tastes for location factors. The question is answered by quantifying the impact of location characteristics on interregional migration flows across Germany. The analysis is based on a grouped conditional logit approach. We augment the framework by controlling for violation of the independence of irrelevant alternatives assumption and for overdispersion. As a result, we find no differences in terms of direction of impact. However, the regressions confirm gender differences in terms of intensity, particularly regarding regional wage levels and the availability of educational institutions.
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