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Growth Regimes over Time and Space


  • David Audretsch
  • Michael Fritsch


This paper seeks to shed new light on the policy debate about whether regional economic development policy should be targeted towards fostering new firm start-ups or nurturing large, incumbent enterprises. We extend the concept of technological regimes for innovative activity in the industrial economics literature to develop a concept of growth regimes for the unit of observation of regions. Based on data for 74 regions in West Germany over a two-decade period, we identify the existence of four distinct growth regimes: the entrepreneurial regime; the routinized regime; the revolving door regime; and the declining regime. The empirical evidence suggests that no single type of regime accounts for growth. Rather, regional growth can result in regions focusing on large enterprises or new enterprises. Thus, we conclude that diverse growth regimes exist across both time and space. Cet article cherche a eclaircir le debat a propos du role de la politique de developpement economique regional: devrait-elle cibler la creation d'entreprise ou le developpement des grandes entreprises existantes? La notion de regimes technologiques relatifs a l'innovation, tiree de la documentation sur l'economie industrielle, se voit etendre afin de developper la notion de regimes pour l'unite regionale observee. A partir des donnees aupres de 74 regions situees dans l'Allemagne de l'Ouest sur deux decennies, on identifie quatre regimes differents - le regime entreprise, le regime systematique, le regime transitoire et le regime declin. Les preuves empiriques laissent voir que la croissance ne s'explique pas par un seul regime. Plutot, la croissance regionale puisse avoir pour resultat des regions qui focalisent sur ou de grandes ou de nouvelles entreprises. Ainsi, on conclut que divers regimes existent sur le temps et dans l'espace. Der Beitrag behandelt die Frage, ob die Regionalpolitik auf die Stimulierung von Unternehmensgrundungen oder die Forderung von bereits existierenden Betrieben konzentrieren sollte. Dabei erweitern wir das industrieokonomische Konzept der Technologischen Regime um eine regionale Dimension. Anhand von Daten fur die Entwicklung von 74 westdeutschen Regionen uber fast zwei Dekaden identifizieren wir vier verschiedene Entwicklungsregime - das entrepreneurhafte Regime, das routinisierte Regime, das Drehtur-Regime und das Niedergangs-Regime. Der empirische Befund zeigt, das tatsachlich solche Unterschiede hinsichtlich des regionalen Entwicklungsregimes bestehen, wobei es im Zeitablauf durchaus auch zu einem Wechsel des Regime-Typs kommen kann. Daruber hinaus legen die Ergebnisse die Schlussfolgerung nahe, dass der positive Einfluss von Grundungen auf die wirtschaftliche Entwicklung vor allem langfristiger Natur ist.

Suggested Citation

  • David Audretsch & Michael Fritsch, 2002. "Growth Regimes over Time and Space," Regional Studies, Taylor & Francis Journals, vol. 36(2), pages 113-124.
  • Handle: RePEc:taf:regstd:v:36:y:2002:i:2:p:113-124
    DOI: 10.1080/00343400220121909

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    References listed on IDEAS

    1. Romer, Paul M, 1986. "Increasing Returns and Long-run Growth," Journal of Political Economy, University of Chicago Press, vol. 94(5), pages 1002-1037, October.
    2. Holmstrom, Bengt, 1989. "Agency costs and innovation," Journal of Economic Behavior & Organization, Elsevier, vol. 12(3), pages 305-327, December.
    3. Malerba, Franco, 1992. "Learning by Firms and Incremental Technical Change," Economic Journal, Royal Economic Society, vol. 102(413), pages 845-859, July.
    4. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320.
    5. 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.
    6. Audretsch, D.B. & Fritsch, M., 1993. "A Note on the Measurement of Entry Rates," Papers 93-5, Bergakademie Freiberg Technical University - Faculty of Economics and Business Administration.
    7. Holmström, Bengt, 1989. "Agency Costs and Innovation," Working Paper Series 214, Research Institute of Industrial Economics.
    8. Dosi, Giovanni, 1993. "Technological paradigms and technological trajectories : A suggested interpretation of the determinants and directions of technical change," Research Policy, Elsevier, vol. 22(2), pages 102-103, April.
    9. David B. Audretsch, 1995. "Innovation and Industry Evolution," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011468, January.
    10. Jean Tirole, 1985. "Hierarchies and Bureaucracies," Working papers 363, Massachusetts Institute of Technology (MIT), Department of Economics.
    11. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, January.
    12. Scherer, F M, 1992. "Schumpeter and Plausible Capitalism," Journal of Economic Literature, American Economic Association, vol. 30(3), pages 1416-1433, September.
    13. Gort, Michael & Klepper, Steven, 1982. "Time Paths in the Diffusion of Product Innovations," Economic Journal, Royal Economic Society, vol. 92(367), pages 630-653, September.
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    Regional; Growth; Entrepreneurship; Small; Firms; Innovation;


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