Political Institutionalisation and Economic Specialisation in Polycentric Metropolitan Regions – The Case of the East German ‚Saxony Triangle‘
Peter Franz, Christoph Hornych
Urban Studies,
2010
Abstract
The rising focus of politicians as well as scientists in the EU on the large urban agglomerations as centres of economic growth is accompanied by political efforts to identify and to demarcate such agglomerations under the label ‘metropolitan regions’. This study develops a theoretical framework broaching the issue of cooperation between municipalities from the perspective of regional economics as well as political science. The framework is applied to the empirical case of the polycentric metropolitan region of the ‘Saxony triangle’ in east Germany. The results show that various intervening factors prevent intense co-operation between the actors in the region. Policy implications and conclusions for future research are discussed.
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Neo-liberalism, the Changing German Labor Market, and Income Distribution: An Institutionalist and Post Keynesian Analysis
John B. Hall, Udo Ludwig
Journal of Economic Issues,
2010
Abstract
This inquiry relies on an Institutionalist and Post Keynesian analysis to explore Germany's neo-liberal project, noting cumulative effects emerging as measurable economic and societal outcomes. Investments in technologies generate rising output-to-capital ratios. Increasing exports offset the Domar problem, but give rise to capital surpluses. National income redistributes in favor of capital. Novel labor market institutions emerge. Following Minsky, good times lead to bad: as seeming successes of neo-liberal policies are accompanied by financial instability, growing disparities in household incomes, and sharp declines in German exports on world markets, resulting in one of the deepest, recent contractions in the industrialized world.
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Incubation Time, Incubator Age, and Firm Survival after Graduation
Michael Schwartz
International Journal of Entrepreneurship and Innovation Management,
2012
Abstract
On the basis of a sample of 149 graduate firms from five German business incubators, this article contributes to incubator/incubation literature by investigating the effects of the age of the incubators and the firms´ incubation time in securing long-term survival of the firms after leaving the incubator facilities. The empirical findings from Cox proportional hazards regression and parametric accelerated failure time models reveal a statistically significant negative impact for both variables incubator age and incubation time on post-graduation firm survival. One important implication that follows from the empirical results for policy makers and managers of those initiatives is that, when incubator managers become increasingly involved in various regional development activities, this may reduce the effectiveness of incubator support. Also, our finding speaks in favour of a strict limitation of incubation times and reinforces arguments of the supporters of maximum tenancy.
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Lebenswelt im Umbruch: Strukturwandel und regionale Entwicklung
Alexander Kubis
D. Gregosz (Hrsg.), Wo steht Ostdeutschland in zehn Jahren? Zukunftsperspektiven der „Jungen Länder”,
2010
Abstract
Ostdeutsche Regionen befinden sich auch zwanzig Jahre nach der Herstellung der Einheit Deutschlands in einem anhaltenden Prozess des Strukturwandels. Dieser Strukturwandel ist durch transformationsbedingte Besonderheiten gekennzeichnet. Zwar ist die Transformation im Sinne der Übernahme marktwirtschaftlicher Institutionen längst abgeschlossen. In der Post-Transformationsphase zeigen sich allerdings strukturelle Besonderheiten, die ihre Ursprünge teils in der Entwicklung im Osten Deutschlands in der zentralverwaltungswirtschaftlichen Entwicklungsperiode und teils in den Entwicklungsmustern nach dem Übergang zur Marktwirtschaft haben. Obwohl die neuen marktwirtschaftlichen institutionellen Rahmenbedingungen für alle Regionen in Ostdeutschland die gleichen sind, zeigen sich regionale Unterschiede beim wirtschaftlichen Erfolg, d. h. bei Wachstum und Wohlstand. Mit Rücksicht auf die räumliche Differenzierung liegt es nahe, nicht mehr nur pauschale Vergleiche der Wirtschaftskraft und der dahinter stehenden Faktoren zwischen Ost- und Westdeutschland vorzunehmen, sondern die unterschiedlichen Entwicklungen innerhalb Ostdeutschlands, etwa in Mitteldeutschland, Berlin oder der Thüringer Städtekette mit zu berücksichtigen. Im Folgenden wird auf wichtige Aspekte der in der Post-Transformationsphase herausgebildeten Sektoral-, Funktional- und Unternehmensgrößenstrukturen sowie den regionalen Strukturwandel eingegangen. Im Anschluss wird der demographische Wandel thematisiert, der für die künftige wirtschaftliche Entwicklung in Ostdeutschland eine zentrale Herausforderung darstellt.
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Veblen, Myrdal, and the Convergence Hypothesis: Toward an Institutionalist Critique
John B. Hall, Udo Ludwig
Journal of Economic Issues,
2010
Abstract
An Institutionalist critique that draws from selected contributions of Veblen and Myrdal initiates a convergence debate. Challenged is a Neoclassical interpretation of economic processes expected to lead toward a catching up with respect to per capita output of Germany's poorer eastern region with the richer western region. Economic method is considered, and the Institutionalist School of Thought rooted in contributions of Veblen as well as Myrdal is touted for offering higher levels of explanatory power than the Neoclassical School. We challenge the usefulness of laws in Economic Science, and especially their applicability to the empirical economy. Instead of automatic forces driving a meliorative trend, we seek to establish that human agency and policy play determining roles in affecting economic and societal outcomes in Germany's eastern region.
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How Does Industry Specialization Affect the Efficiency of Regional Innovation Systems?
Michael Fritsch, Viktor Slavtchev
Annals of Regional Science,
No. 1,
2010
Abstract
This study analyzes the relationship between the specialization of a region in certain industries and the efficiency of the region in generating new knowledge. The efficiency measure is constructed by relating regional R&D input and output. An inversely u-shaped relationship is found between regional specialization and R&D efficiency, indicating the presence of externalities of both Marshall and Jacobs’ type. Further factors influencing efficiency are externalities resulting from high R&D intensity of the local private sector as well as knowledge from local public research institutions. The impact of both the specialization and the additional factors is, however, different for regions at different efficiency levels.
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The Emergence of Wage Coordination in the Central Western European Metal Sector and its Relationship to European Economic Policy
Vera Glassner, Toralf Pusch
Abstract
In the European Monetary Union the transnational coordination of collective wage bargaining has acquired increased importance on the trade union agenda. The metal sector has been at the forefront of these developments. This paper addresses the issue of crossborder coordination of wage setting in the metal sector in the central western European region, that is, in Germany, the Netherlands and Belgium, where coordination practices have become firmly established in comparison to other sectors. When testing the interaction of wage developments in the metal sector of these three countries, relevant macroeconomic (inflation and labour productivity) and sector-related variables (employment, export-dependence) are considered with reference to the wage policy guidelines of the European Commission and the European Metalworkers’ Federation. Empirical evidence can be found for a wage coordination effect in the form of increasing compliance with the wage policy guidelines of the European Metalworkers’ Federation. The evidence for compliance with the stability-oriented wage guideline of the European Commission is weaker.
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Challenges for Future Regional Policy in East Germany. Does East Germany really show Characteristics of Mezzogiorno?
Mirko Titze
A. Kuklinski; E. Malak-Petlicka; P. Zuber (eds), Souther Italy – Eastern Germany – Eastern Poland. The Triple Mezzogiorno? Ministry of Regional Development,
2010
Abstract
Despite extensive government support the gap between East and West Germany has still not been successfully closed nearly 20 years post German unification. Hence, some economists tend to compare East Germany with Mezzogiorno – underdeveloped Southern Italy. East Germany is still subject to sever structural problems in comparison to West Germany: lower per capita income, lower productivity, higher unemployment rates, fewer firm headquarters and fewer innovation activities. There are East German regions with less than desirable rates of development. Nevertheless, the new federal states have shown some evidence of a convergence process. Some regions have developed very positively – they have improved their competitiveness and employment levels. As such, the comparison of East Germany with Mezzogiorno does not seem applicable today.
According to Neoclassical Growth Theory, regional policy is targeted enhancing investment (hereafter the notion ‘investment policy’ is used). has been the most important instrument in forcing the ‘reconstruction of the East’. Overall, the investment policy is seen as having been successful. It is not, however, the only factor influencing regional development – political policy makers noted in the mid 1990s that research and development (R&D) activities and regional concentrated production networks, amongst other factors, may also play a part. The investment policy instrument has therefore been adjusted. Nevertheless, it cannot be excluded that investment policy may fail in particular cases because it contains potentially conflicting targets. A ‘better road’ for future regional policy may lie in the support of regional production and innovation networks – the so-called industrial clusters. These clusters would need to be exactingly identified however to ensure effective and efficient cluster policies.
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Interactive Dynamic Capabilities and Regenerating the East German Innovation System
N. von Tunzelmann, Jutta Günther, Katja Wilde, Björn Jindra
Contributions to Political Economy,
2010
Abstract
The paper sets out a specification of capabilities and competencies derived from Sen’s work on consumer capabilities and welfare economics. This approach is one that proves remarkably easy to generalise, first to producer and supplier capabilities, and thence to interactive and dynamic capabilities. The approach is then applied via the consequential perspectives of regional systems of innovation and network alignment to the case of the efforts to regenerate the innovation system in East Germany since reunification. It is seen that this process can be divided into three periods, of which the most recent appears to meet some of the theoretical requirements for effective interactive capabilities. It is less clear that the criteria for dynamic capabilities—which involve considerations of speed-up and flexibility, to meet the market requirements in real time—have yet been taken sufficiently seriously.
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