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Modern Location Factors in Dynamic Regions

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  • Oliver Falck
  • Stephan Heblich

Abstract

Globalization has had an enormous impact on traditional industrial structures. It almost seems that everything is everywhere the same. And yet, in reality, some regions in a single industrialized country enjoy rapid economic growth while others are downsizing or stagnating. Thus there must be some remaining regional competitive advantages—even in the “Age of Globalization”. This paper engages in a quest to discover what these modern location factors might be and how and why they are necessary in creating dynamics and regional growth. In doing so, we link the driving forces behind these modern location factors with regional performance and eventually arrive at a concept of a regional lifecycle and its key dynamics. Using data that paint a comprehensive picture of industry and regional development in Germany we try to find empirical evidence for our approach.

Suggested Citation

  • Oliver Falck & Stephan Heblich, 2007. "Modern Location Factors in Dynamic Regions," European Planning Studies, Taylor & Francis Journals, vol. 16(10), pages 1385-1403, May.
  • Handle: RePEc:taf:eurpls:v:16:y:2007:i:10:p:1385-1403
    DOI: 10.1080/09654310802420094
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    1. Donald S. Siegel, 1999. "Skill-Biased Technological Change: Evidence from a Firm-Level Survey," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number sbtc.
    2. Daron Acemoglu & Philippe Aghion & Fabrizio Zilibotti, 2006. "Distance to Frontier, Selection, and Economic Growth," Journal of the European Economic Association, MIT Press, vol. 4(1), pages 37-74, March.
    3. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    4. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, March.
    5. Acs, Zoltán J & Audretsch, David B & Braunerhjelm, Pontus & Carlsson, Bo, 2004. "The Missing Link: The Knowledge Filter and Entrepreneurship in Endogenous Growth," CEPR Discussion Papers 4783, C.E.P.R. Discussion Papers.
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    Cited by:

    1. Timo Mitze & Falk Strotebeck, 2012. "What Drives Regional Cooperative Behavior in German Biotechnology? Embedding Social Network Analysis in a Regression Framework," ERSA conference papers ersa12p629, European Regional Science Association.
    2. David B. Audretsch & Oliver Falck & Stephan Heblich, 2007. "It’s All in Marshall: The Impact of External Economies on Regional Dynamics," CESifo Working Paper Series 2094, CESifo Group Munich.

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