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The Economic Performance of Regions

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Author Info
Michael Porter
Abstract

P ORTER M. E. (2003) The economic performance of regions, Reg. Studies 37 , 549-578. This paper examines the basic facts about the regional economic performance, the composition of regional economies and the role of clusters in the US economy over period of 1990 to 2000. The performance of regional economies varies markedly in terms of wage, wage growth, employment growth and patenting rate. Based on the distribution of economic activity across geography, we classify US industries into traded, local and resource-dependent. Traded industries account for only about one-third of employment but register much higher wages, far higher rates of innovation and influence local wages. We delineate clusters of traded industries using co-location patterns across US regions. The mix of clusters differs markedly across regions. The performance of regional economies is strongly influenced by the strength of local clusters and the vitality and plurality of innovation. Regional wage differences are dominated by the relative performance of the region in the clusters in which it has positions, with the particular mix of clusters secondary. A series of regional policy implications emerge from the findings. P ORTER M. E. (2003) La performance économique des regions, Reg. Studies 37 , 549-578. Cet article cherche à examiner les principes fondamentaux de la performance économique régionale, de la structure des économies régionales, et du rôle des groupements dans l'économie des Etats-Unis de 1990 à 2000. La performance des économies régionales varie sensiblement du point de vue des salaires, de la croissance des salaires, de la hausse de l'emploi, et du nombre des brevets. A partir de la répartition de l'activité économique géographique, on classe les entreprises industrielles aux Etats-Unis sous les rubriques commerciale, locale, et dépendante des ressources. Les entreprises industrielles à vocation commerciale n'expliquent qu'un tiers de l' emploi mais laissent voir des salaires nettement plus élevés, des taux d'innovation bien plus importants, et influent sur les salaires locaux. Employant des distributions de localisations partagées à travers les Etats-Unis, on délimite des groupements d'entreprises industrielles à vocation commerciale. La structure des groupements varie sensiblement suivant la région. La performance des économies régionales est fortement influencé par la force des groupements locaux et par la vitalité et par la pluralité de l'innovation. Les écarts des salaires réels s'expliquent primordialement par la performance relative de la région quant aux groupements où elle est pré sente, la structure particulière des groupements n'étant que d'une importance secondaire. Il en résulte toute une série d'implications pour la politique. P ORTER M. E. (2000) Die wirtschaftliche Leistungskraft von Regionen, Reg. Studies 37 , 549-578. Dieser Beitrag analysiert Kerndaten regionaler Wirtschaftsräume in den Vereinigten Staaten, insbesondere ihre wirtschaftliche Leistungskraft, ihre Zusammensetzung und die Rolle regionaler Cluster. Die Regionen der Vereinigten Staaten unterschieden sich in den Jahren 1990 bis 2000 deutlich in ihrer wirtschaftlichen Leistungskraft gemessen an Lohnniveau und - wachstum, Beschäftigungsentwicklung, und Patentrate. Basierend auf der geographischen Konzentration öknomischer Aktitivtät klassifizieren wir Industriezweige als überregional ("traded'), lokal oder abhängig von der Präsenz von Naturschä tzen. Cluster überregionaler Industrien beschäftigen nur circa ein Drittel aller Erwerbstätigen, verzeichnen aber überdurchschnittliche Lö hne und signifikant höhere Innovationsraten als die Gesamtwirtschaft. Die relative Bedeutung einzelner Cluster innerhalb der Gruppe überregionaler Industrien unterscheidet sich deutlich im regionalen Vergleich. Der wirtschaftliche Erfolg einer Region wird stark von der relative Leistungskraft und Innovationsstärke der dort angesiedelten überregionalen Cluster beeinflusst. So hat das relative Lohnniveau in den überregionalen Clustern in einer Region einen dominanten Einfluss auf das regionale Lohnniveau, während die spezifische Identität dieser Cluster nur eine sekundäre Rolle spielt. Der Beitrag entwickelt aus dieser Analyse eine Reihe von Implikationen für die Wirtschaftspolitik.

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

Volume (Year): 37 (2003)
Issue (Month): 6-7 (August)
Pages: 545-546
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Handle: RePEc:taf:regstd:v:37:y:2003:i:6-7:p:545-546

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Keywords: Regional Economic Performance; Clusters; Competitiveness; Industrial Location;

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  4. Scott, Allen J, 2000. "Economic Geography: The Great Half-Century," Cambridge Journal of Economics, Oxford University Press, vol. 24(4), pages 483-504, July.
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  6. M.J. Pullen & J.L.R. Proops, 1983. "The North Staffordshire regional economy: An input-output assessment," Regional Studies, Taylor and Francis Journals, vol. 17(3), pages 191-200, June. [Downloadable!] (restricted)
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  8. Glenn Ellison & Edward L. Glaeser, 1999. "The Geographic Concentration of Industry: Does Natural Advantage Explain Agglomeration?," Harvard Institute of Economic Research Working Papers 1862, Harvard - Institute of Economic Research.
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  9. Baptista, Rui & Swann, Peter, 1998. "Do firms in clusters innovate more?," Research Policy, Elsevier, vol. 27(5), pages 525-540, September. [Downloadable!] (restricted)
  10. Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, MIT Press, vol. 108(3), pages 577-98, August. [Downloadable!] (restricted)
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  11. repec:fth:harver:1473 is not listed on IDEAS
  12. Douglass C. North, 1956. "Exports and Regional Economic Growth: A Reply," Journal of Political Economy, University of Chicago Press, vol. 64, pages 165. [Downloadable!] (restricted)
  13. Henderson, Vernon & Kuncoro, Ari & Turner, Matt, 1995. "Industrial Development in Cities," Journal of Political Economy, University of Chicago Press, vol. 103(5), pages 1067-90, October. [Downloadable!] (restricted)
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  14. Gordon H. Hanson, 2000. "Scale Economies and the Geographic Concentration of Industry," NBER Working Papers 8013, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  15. Douglass C. North, 1955. "Location Theory and Regional Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 63, pages 243. [Downloadable!] (restricted)
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