Borders and Barriers in the New Europe: Impediments and Potentials of New Network Configurations

Spatial-economic connectivity and changes in industrial organization have far reaching consequences for the competitive profile and position of all regions in a network economy. In particular, geographically isolated regions have expressed a concern that they may find themselves positioned outside current mainstream industrial developments. The industrial-economic systems of our world are indeed rapidly changing, at all geographical levels. The traditional large scale production plant is gradually losing its relevance. In a post-fordist economy we observe much more emphasis on flexible entrepreneurial behaviour based on lean production. Modern industrial production is characterized by both specialization and globalization, in which the modern component industry and industrial assembly play an important role (see Lagendijk 1993). An example may clarify the above point. The Swedish Volvo company is producing its Volvo 480 in the Netherlands. The components of this car originate from different countries: 28% from Germany, 26% from France, 22% from Belgium, 12% from the Netherlands and 12% from remaining countries (e.g. Sweden, Denmark, Finland, the UK, Switzerland, Spain, Japan, the USA, Canada, Brazil and Australia).