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Industrial Cores in East Germany and Its Interaction with the Surrounding Territories—Findings from Four Case Studies
Gerhard Heimpold
List Forum für Wirtschafts- und Finanzpolitik,
No. 2,
2019
Abstract
Subject to this article is how four cases of so called industrial cores have developed in East Germany since 1990. Industrial cores represent former state-owned firms which were regarded as economically viable by the Treuhand. But there was no chance to privatize them in the short run. The case studies show the development prior to and after privatization. A special focus is laid on the interaction between the respective firm and its spatial environment. To sum up: All four firms are still existent. They provide competitive goods and services. Nonetheless, the interaction with the surrounding region differs from case to case. There were spin-offs in all cases. Organizational units previously belonging to the former state owned firms were split up, and became independent firms. In addition, new firms were established. Partly the establishment of new firms was supported directly by—de facto—structural policy measures implemented by the core firms. Partly the new establishments were simply cases of co-location resulting from a prospering regional environment. Taking the four cases, urban areas obviously formed a particularly fertile economic environment.
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The Impact of Innovation and Innovation Subsidies on Economic Development in German Regions
Uwe Cantner, Eva Dettmann, Alexander Giebler, Jutta Günther, Maria Kristalova
Regional Studies,
No. 9,
2019
Abstract
Public innovation subsidies in a regional environment are expected to unfold a positive economic impact over time. The focus of this paper is on an assessment of the long-run impact of innovation and innovation subsidies in German regions. This is scrutinized by an estimation approach combining panel model and time-series characteristics and using regional data for the years 1980–2014. The results show that innovation and innovation subsidies in the long run have a positive impact on the economic development of regions in Germany. This supports a long-term strategy for regional and innovation policy.
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