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Learning in the Village Economy of Denmark. The role of Institutions and Policy in Sustaining Competitiveness

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  • Peter Maskell

Abstract

The benefits of an international division of labour is never illustrated more clearly than in small developed nations like Denmark. Without many natural resources such countries can never be self sufficient and they need access to foreign markets in order for their firms to specialise and utilize economics of scale. The specialisation chosen is mainly in low-tech goods, where the risk of sudden domestically damaging changes in technology or demand are relatively small. Besides such general features of small developed nations, the Danish case has some special characteristics, which distinguishes it from many other nations and regions. One important feature is the century-old, deep-rooted egalitarian beliefs of the society which during the last century has intermixed with the growth of the public sector in shaping not only the welfare state, but also a strongly consensus-seeking political system - the negotiated economy - incorporating all major groups in the economy. Recently, the development towards a knowledge based world economy has increased the importance of another feature with an small egalitarian country: the kind of trust-relations, that come into existence, when everyone in an industry has known everybody else through many years. The international industrial competitiveness of the country's vast majority of small, export oriented firms are not only favoured by a reasonable adequate macro-economic policy but further enhanced by the ease in the exchange of information resulting from established trust-relations.

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Bibliographic Info

Paper provided by DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies in its series DRUID Working Papers with number 96-6.

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Date of creation: 1996
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Handle: RePEc:aal:abbswp:96-6

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Web page: http://www.druid.dk/

Related research

Keywords: International competitiveness; small nations; economic development; learning economy; informal institutions;

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References

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  1. Krugman, Paul & Venables, Anthony J., 1996. "Integration, specialization, and adjustment," European Economic Review, Elsevier, vol. 40(3-5), pages 959-967, April.
  2. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
  3. Grossman, G.M. & Helpman, E., 1994. "Technology and Trade," Papers 175, Princeton, Woodrow Wilson School - Public and International Affairs.
  4. North, Douglass C, 1994. "Economic Performance through Time," American Economic Review, American Economic Association, vol. 84(3), pages 359-68, June.
  5. Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
  6. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  7. David, Paul A, 1985. "Clio and the Economics of QWERTY," American Economic Review, American Economic Association, vol. 75(2), pages 332-37, May.
  8. Jan Fagerberg, 1993. "User-Producer Interaction, Learning and Comparative Advantage," Working Papers Archives 1993490, Centre for Technology, Innovation and Culture, University of Oslo.
  9. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  10. Jan Fagerberg, 1996. "Competitiveness, Scale and R&D," Working Papers Archives 1996545, Centre for Technology, Innovation and Culture, University of Oslo.
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Citations

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Cited by:
  1. David Doloreux & Saeed Parto, 2004. "Regional Innovation Systems: Current Discourse and Challenges for Future Research," ERSA conference papers ersa04p56, European Regional Science Association.
  2. Raagmaa, Garri, 1999. "Territorial Identity as a Competitive Factor in Regional Economic Development," ERSA conference papers ersa99pa267, European Regional Science Association.
  3. Sotarauta, Markku & Srinivas, Smita, 2006. "Co-evolutionary policy processes: Understanding innovative economies and future resilience," MPRA Paper 52689, University Library of Munich, Germany.
  4. Peter Maskell, 1996. "Localised Low-tech Learning in the Furniture Industry," DRUID Working Papers 96-11, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
  5. Garri Raagmaa, 2003. "Centre?periphery model explaining the regional development of the informational and transitional society," ERSA conference papers ersa03p503, European Regional Science Association.
  6. Richard Harris, 2011. "Models Of Regional Growth: Past, Present And Future," Journal of Economic Surveys, Wiley Blackwell, vol. 25(5), pages 913-951, December.
  7. Sotarauta, Markku & Viljamaa, Kimmo, 2002. "Leadership and management in the development of regional innovation environments," ERSA conference papers ersa02p071, European Regional Science Association.
  8. Döring, Thomas & Schnellenbach, Jan, 2004. "What Do We Know About Geographical Knowledge Spillovers and Regional Growth? A Survey of the Literature," Research Notes 14, Deutsche Bank Research.

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