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Growth Regimes over Time and Space

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Author Info
David B. Audretsch
Michael Fritsch

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Abstract

This paper seeks to shed new light on the policy debate about whether regional economic development policy should be targeted towards fostering new firm start-ups or nurturing large, incumbent enterprises. We extend the concept of technological regimes for innovative activity in the industrial economics literature to develop a concept of growth regimes for the unit of observation of regions. Based on data for 74 regions in West Germany over a two-decade period, we identify the existence of four distinct growth regimes: the entrepreneurial regime; the routinized regime; the revolving door regime; and the declining regime. The empirical evidence suggests that no single type of regime accounts for growth. Rather, regional growth can result in regions focusing on large enterprises or new enterprises. Thus, we conclude that diverse growth regimes exist across both time and space. Cet article cherche à éclaircir le débat à propos du rôle de la politique de développement économique régional: devrait-elle cibler la création d'entreprise ou le développement des grandes entreprises existantes? La notion de régimes technologiques relatifs à l'innovation, tirée de la documentation sur l'économie industrielle, se voit étendre afin de développer la notion de régimes pour l'unité régionale observée. A partir des données auprès de 74 régions situées dans l'Allemagne de l'Ouest sur deux décennies, on identifie quatre régimes différents - le régime entreprise, le régime systématique, le régime transitoire et le régime déclin. Les preuves empiriques laissent voir que la croissance ne s'explique pas par un seul régime. Plutôt, la croissance régionale puisse avoir pour résultat des régions qui focalisent sur ou de grandes ou de nouvelles entreprises. Ainsi, on conclut que divers régimes existent sur le temps et dans l'espace. Der Beitrag behandelt die Frage, ob die Regionalpolitik auf die Stimulierung von Unternehmensgründungen oder die Förderung von bereits existierenden Betrieben konzentrieren sollte. Dabei erweitern wir das industrieökonomische Konzept der Technologischen Regime um eine regionale Dimension. Anhand von Daten für die Entwicklung von 74 westdeutschen Regionen über fast zwei Dekaden identifizieren wir vier verschiedene Entwicklungsregime - das entrepreneurhafte Regime, das routinisierte Regime, das Drehtür-Regime und das Niedergangs-Regime. Der empirische Befund zeigt, das tatsächlich solche Unterschiede hinsichtlich des regionalen Entwicklungsregimes bestehen, wobei es im Zeitablauf durchaus auch zu einem Wechsel des Regime-Typs kommen kann. Darüber hinaus legen die Ergebnisse die Schlussfolgerung nahe, dass der positive Einfluss von Gründungen auf die wirtschaftliche Entwicklung vor allem langfristiger Natur ist.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 36 (2002)
Issue (Month): 2 (April)
Pages: 113-124
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Handle: RePEc:taf:regstd:v:36:y:2002:i:2:p:113-124

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Keywords: Regional Growth Entrepreneurship Small Firms Innovation

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-37, October. [Downloadable!] (restricted)
  2. Harrison, Bennett, 1995. " Symposium on Harrison's "Lean and Mean": What Are the Questions?," Small Business Economics, Springer, vol. 7(5), pages 357-63, October.
  3. Jean Tirole, 1985. "Hierarchies and Bureaucracies," Working papers 363, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320. [Downloadable!] (restricted)
  5. Holmstrom, Bengt, 1989. "Agency costs and innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 12(3), pages 305-327, December. [Downloadable!] (restricted)
  6. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-59, July. [Downloadable!] (restricted)
  7. Agarwal, Rajshree, 1998. " Small Firm Survival and Technological Activity," Small Business Economics, Springer, vol. 11(3), pages 215-24, November. [Downloadable!] (restricted)
  8. Sternberg, Rolf, 1996. " Technology Policies and the Growth of Regions: Evidence from Four Countries," Small Business Economics, Springer, vol. 8(2), pages 75-86, April.
  9. Dosi, Giovanni, et al, 1995. " Learning, Market Selection and the Evolution of Industrial Structures," Small Business Economics, Springer, vol. 7(6), pages 411-36, December.
  10. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-53, September. [Downloadable!] (restricted)
  11. Brian Ashcroft & James Love & Eleanor Malloy, 1991. "New Firm Formation in the British Counties with Special Reference to Scotland," Regional Studies, Taylor and Francis Journals, vol. 25(5), pages 395-409, October. [Downloadable!] (restricted)
  12. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-33, September. [Downloadable!] (restricted)
  13. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
  14. Fritsch, Michael, 1997. " New Firms and Regional Employment Change," Small Business Economics, Springer, vol. 9(5), pages 437-48, October. [Downloadable!] (restricted)
  15. Dosi, Giovanni, 1982. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 11(3), pages 147-162, June. [Downloadable!] (restricted)
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