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The Rise, Fall and Rise Again of Industrial Location Theory

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Author Info
Philip McCann
Stephen Sheppard

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Abstract

M CCANN P. and SHEPPARD S. (2003) The rise, fall and rise again of industrial location theory, Reg. Studies 37 , 649-663. In this paper we will argue that new academic fashions, new international institutional arrangements, new communications technology and new developments in data availability, have all renewed the need for a redevelopment of analytical industrial location theory. Our paper will argue that the microeconomic foundations of industrial location theory must now be reconsidered. In particular, the methodological basis of traditional industrial location models needs to be reconciled with recent models of clustering, the new economic geography literature, and also more aggregate systemic levels of analysis. We will argue that in order to do this it is necessary: first, to specify the transactions-cost assumptions underlying these various approaches; second, to adopt broader definitions of spatial transactions costs; and third, to incorporate environmental characteristics within an orthodox location-production type of framework. The insights gained by this integrated micro- level approach will also provide new directions for more aggregate systemic approaches, as well as clarifying the both the strengths and limitations of the currently fashionable models of clustering. M CCANN P. et SHEPPARD S. (2003) La montée, le déclin et la remontée de la théorie de la localisation industrielle, Reg. Studies 37 , 649-663. Cet article cherche à soutenir que les dernières modes académiques, les récentes dispositions institutionnelles internationales, la nouvelle technologie de la communcation, et les progrès dans le domaine de la disponibilité des données, ont tous renoué avec la nécessité de repenser la théorie analytique de la localisation industrielle. Cet article soutient qu'il faut remettre en question les fondements microéconomiques de la théorie de localisation industrielle. En particulier, on doit concilier la base méthodologique des modèles traditionnels de la localisation industrielle avec des modèles d'agglomération récents, la récente documentation sur la géographie économique, et aussi des niveaux d'analyse globaux plus gé néralisés. Pour y réussir, on soutient qu' il faut, primo, préciser les suppositions quant aux frais de transaction qui sous-tendent ces diverses façons; secundo, adopter des définitions plus générales des frais de transaction géographiques; et tertio, inclure des caractéristiques environnementales dans un cadre orthodoxe du type localisation-production. Les aperçus obtenus grâce à cette microanalyse intégrée fourniront de nouvelles possibilités pour le développement de plus de façons généralisées globales, ainsi que clarifier et les atouts et les inconvénients des modè les d'agglomération qui sont actuellement à la mode. M CCANN P. und SHEPPARD S. (2003) Aufstieg, Fall und Wiederaufstieg der Industriestandorttheorie, Reg. Studies 37 , 649-663. In diesem Aufsatz wird die Behauptung aufgestellt, daß neue akademische Moden, neue imternationale institutionelle Ordnungen, neue Kommunikationstechnologie und neue Entwicklungen in der Verfügbarkeit von Daten zusammen zur Notwendigkeit der Überarbeitung der analytischen Industriestandorttheorie beigetragen haben. Dieser Aufsatz stellt die Behauptung auf, daß die mikro-ökonomischen Grundlagen der Industriestandorttheorie jetzt neu überdacht werden müssen. Vorallem die methodologische Grundlage ü berkommener Industriestandortmodelle muß mit neueren Clustermodellen, mit moderner wirtschaftsgepgraphischer Literatur und auch mit stärker aggregierten systemischen Ebenen der Analyse in Einklang gebracht werder. Um dies zu erreichen, sei es zunä chst nötig, die Vorstellungen, die den verschiedenenartigen Ansätzen zugrunde liegenden Durchführungskosten spezifisch aufzuführen; zweitens umfassendere Definitionen rä umlicher Durchführungskosten einzuführen, und drittens charakteristische Umweltmerkmale in ein orthodoxes System vom Typ Standortproduktion einzubeziehen. Die Einsichten, die durch diesen integrierten Ansatz auf Mikroebene gewonnen wurden, werden auch neue Richtlinien für stärker aggregierte systemische Ansätze liefern, und sowohl Stärken als auch Grenzen der gegenwärtig modischen Clustermodelle erhellen.

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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: 649-663
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Handle: RePEc:taf:regstd:v:37:y:2003:i:6-7:p:649-663

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Keywords: Location Clustering Theory Methodology Transactions Costs

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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.:
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  2. John Cantwell, Simona Iammarino, 2000. "Multinational Corporations and the Location of Technological Innovation in the UK Regions," Regional Studies, Taylor and Francis Journals, vol. 34(4), pages 317-332, June. [Downloadable!] (restricted)
  3. Philip McCann, 1997. "How Deeply Embedded is Silicon Glen? A Cautionary Note," Regional Studies, Taylor and Francis Journals, vol. 31(7), pages 695-703, October. [Downloadable!] (restricted)
  4. J. Peter Neary, 2001. "Of Hype and Hyperbolas: Introducing the New Economic Geography," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 536-561, June. [Downloadable!] (restricted)
  5. Sheppard, Stephen, 1999. "Hedonic analysis of housing markets," Handbook of Regional and Urban Economics, in: P. C. Cheshire & E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 3, chapter 41, pages 1595-1635 Elsevier. [Downloadable!] (restricted)
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  6. Gaspar, Jess & Glaeser, Edward L., 1998. "Information Technology and the Future of Cities," Journal of Urban Economics, Elsevier, vol. 43(1), pages 136-156, January. [Downloadable!] (restricted)
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  7. Glaeser, Edward L, 1998. "Are Cities Dying?," Journal of Economic Perspectives, American Economic Association, vol. 12(2), pages 139-60, Spring. [Downloadable!] (restricted)
  8. Arita, Tomokazu & McCann, Philip, 2000. "Industrial Alliances and Firm Location Behaviour: Some Evidence from the US Semiconductor Industry," Applied Economics, Taylor and Francis Journals, vol. 32(11), pages 1391-1403, September. [Downloadable!] (restricted)
  9. 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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  10. McCann, Philip & Fingleton, Bernard, 1996. "The Regional Agglomeration Impact of Just-in-Time Input Linkages: Evidence from the Scottish Electronics Industry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 43(5), pages 493-518, November.
  11. Xavier Gabaix, 1999. "Zipf's Law and the Growth of Cities," American Economic Review, American Economic Association, vol. 89(2), pages 129-132, May. [Downloadable!] (restricted)
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  13. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
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  14. Xavier Gabaix, 1999. "Zipf'S Law For Cities: An Explanation," The Quarterly Journal of Economics, MIT Press, vol. 114(3), pages 739-767, August. [Downloadable!] (restricted)
  15. Ron Martin & Peter Sunley, 2002. "Deconstructing Clusters: Chaotic Concept or Policy Panacea," ESRC Centre for Business Research - Working Papers wp244, ESRC Centre for Business Research. [Downloadable!]
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Cited by:
(explanations, 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. Sara C. Santos Cruz & Aurora A.C. Teixeira, 2007. "A new look into the evolution of clusters literature. A bibliometric exercise," FEP Working Papers 257, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  2. Knut Koschatzky & Vivien Lo, 2004. "Multi-actor regional governance: regions as new players for innovation in Europe," ERSA conference papers ersa04p140, European Regional Science Association. [Downloadable!]
  3. Roberto Ezcurra & Pedro Pascual & Manuel Rapún, 2006. "Regional Specialization in the European Union," Regional Studies, Taylor and Francis Journals, vol. 40(6), pages 601-616, August. [Downloadable!] (restricted)
  4. Simona Iammarino & Philip McCann, 2006. "The Structure and Evolution of Industrial Clusters: Transactions, Technology and Knowledge Spillovers," SPRU Electronic Working Paper Series 138, University of Sussex, SPRU - Science and Technology Policy Research. [Downloadable!]
    Other versions:
  5. Philip Mccann, 2006. "On the supply-side determinants of regional growth," Construction Management & Economics, Taylor and Francis Journals, vol. 24(7), pages 681-693, July. [Downloadable!] (restricted)
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