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Local roots, global markets: exploring the world of manufacturing SMEs in Gelderland, the Netherlands

Author

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  • Gert-Jan Hospers

    (University of Twente / Radboud University Nijmegen)

Abstract

This paper explores the characteristics of high-quality manufacturing SMEs in Gelderland (the Netherlands) and the challenges they face in today’s digitally driven ‘fourth industrial revolution’. The paper shows that, as a rule, these companies act as a kind of silent power for the region in which they are based: they have strong local roots, but thanks to their narrow focus they operate on global markets. Major concerns for the manufacturing SMEs in Gelderland are the shortage of qualified technical staff, spatial bottlenecks at the business location as well as cost and risk issues related to smart industry investments. With the help of a ‘new industrial policy’ that is partly aimed at correcting ‘transformation failure’, it is argued that regional government can give manufacturing SMEs and their localities a helping hand.

Suggested Citation

  • Gert-Jan Hospers, 2019. "Local roots, global markets: exploring the world of manufacturing SMEs in Gelderland, the Netherlands," EKONOMIAZ. Revista vasca de Economía, Gobierno Vasco / Eusko Jaurlaritza / Basque Government, vol. 95(01), pages 157-175.
    • Handle: RePEc:ekz:ekonoz:2019108
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    More about this item

    Keywords

    SMEs; firm behavior; industrial policy; manufacturing;
    All these keywords.

    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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