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The Economic Performance of Regions

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  • Michael Porter

Abstract

P ORTER M. E. (2003) The economic performance of regions, Reg. Studies 37 , 549-578. This paper examines the basic facts about the regional economic performance, the composition of regional economies and the role of clusters in the US economy over period of 1990 to 2000. The performance of regional economies varies markedly in terms of wage, wage growth, employment growth and patenting rate. Based on the distribution of economic activity across geography, we classify US industries into traded, local and resource-dependent. Traded industries account for only about one-third of employment but register much higher wages, far higher rates of innovation and influence local wages. We delineate clusters of traded industries using co-location patterns across US regions. The mix of clusters differs markedly across regions. The performance of regional economies is strongly influenced by the strength of local clusters and the vitality and plurality of innovation. Regional wage differences are dominated by the relative performance of the region in the clusters in which it has positions, with the particular mix of clusters secondary. A series of regional policy implications emerge from the findings. P ORTER M. E. (2003) La performance economique des regions, Reg. Studies 37 , 549-578. Cet article cherche a examiner les principes fondamentaux de la performance economique regionale, de la structure des economies regionales, et du role des groupements dans l'economie des Etats-Unis de 1990 a 2000. La performance des economies regionales varie sensiblement du point de vue des salaires, de la croissance des salaires, de la hausse de l'emploi, et du nombre des brevets. A partir de la repartition de l'activite economique geographique, on classe les entreprises industrielles aux Etats-Unis sous les rubriques commerciale, locale, et dependante des ressources. Les entreprises industrielles a vocation commerciale n'expliquent qu'un tiers de l' emploi mais laissent voir des salaires nettement plus eleves, des taux d'innovation bien plus importants, et influent sur les salaires locaux. Employant des distributions de localisations partagees a travers les Etats-Unis, on delimite des groupements d'entreprises industrielles a vocation commerciale. La structure des groupements varie sensiblement suivant la region. La performance des economies regionales est fortement influence par la force des groupements locaux et par la vitalite et par la pluralite de l'innovation. Les ecarts des salaires reels s'expliquent primordialement par la performance relative de la region quant aux groupements ou elle est pre sente, la structure particuliere des groupements n'etant que d'une importance secondaire. Il en resulte toute une serie d'implications pour la politique. P ORTER M. E. (2000) Die wirtschaftliche Leistungskraft von Regionen, Reg. Studies 37 , 549-578. Dieser Beitrag analysiert Kerndaten regionaler Wirtschaftsraume in den Vereinigten Staaten, insbesondere ihre wirtschaftliche Leistungskraft, ihre Zusammensetzung und die Rolle regionaler Cluster. Die Regionen der Vereinigten Staaten unterschieden sich in den Jahren 1990 bis 2000 deutlich in ihrer wirtschaftlichen Leistungskraft gemessen an Lohnniveau und - wachstum, Beschaftigungsentwicklung, und Patentrate. Basierend auf der geographischen Konzentration oknomischer Aktitivtat klassifizieren wir Industriezweige als uberregional ("traded'), lokal oder abhangig von der Prasenz von Naturscha tzen. Cluster uberregionaler Industrien beschaftigen nur circa ein Drittel aller Erwerbstatigen, verzeichnen aber uberdurchschnittliche Lo hne und signifikant hohere Innovationsraten als die Gesamtwirtschaft. Die relative Bedeutung einzelner Cluster innerhalb der Gruppe uberregionaler Industrien unterscheidet sich deutlich im regionalen Vergleich. Der wirtschaftliche Erfolg einer Region wird stark von der relative Leistungskraft und Innovationsstarke der dort angesiedelten uberregionalen Cluster beeinflusst. So hat das relative Lohnniveau in den uberregionalen Clustern in einer Region einen dominanten Einfluss auf das regionale Lohnniveau, wahrend die spezifische Identitat dieser Cluster nur eine sekundare Rolle spielt. Der Beitrag entwickelt aus dieser Analyse eine Reihe von Implikationen fur die Wirtschaftspolitik.

Suggested Citation

  • Michael Porter, 2003. "The Economic Performance of Regions," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 549-578.
  • Handle: RePEc:taf:regstd:v:37:y:2003:i:6-7:p:549-578
    DOI: 10.1080/0034340032000108688
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    1. Giovanni Dosi & Keith Pavitt & Luc Soete, 1990. "The Economics of Technical Change and International Trade," LEM Book Series, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy, number dosietal-1990, July.
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