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Innovation-Oriented Land-Use Policy At The Sub-National Level: Case Study Germany

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  • Peter Friedrich
  • Chang Woon Nam

Abstract

This study investigates major features of land-use strategies that German municipalities have adopted to attract innovative firms (IFs). In this context a two-stage competition model is introduced: firstly a municipality should solve economic and interest conflicts related to its preference for high-quality sites for IFs against the land needs of simple manufacturers. The second part of the model describes location competition among municipalities with high-quality sites for the location of IFs. German municipal land-use policy is well combined with industrial policy; this paper reveals the strengths and weaknesses of the urban real estate market in Potsdam, and its future opportunities and risks as the location of different economic activities are determined in the planning process. Science Park Adlershof (Berlin) is an output of the spatial-oriented technology policy, which creates incubators for innovative SMEs. Municipalities also cooperate, since it provides larger sites, generates economies of scale and contributes to a smooth suburbanisation process (see Leipzig).

Suggested Citation

  • Peter Friedrich & Chang Woon Nam, 2011. "Innovation-Oriented Land-Use Policy At The Sub-National Level: Case Study Germany," University of Tartu - Faculty of Economics and Business Administration Working Paper Series 84, Faculty of Economics and Business Administration, University of Tartu (Estonia).
    • Handle: RePEc:mtk:febawb:84
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    File URL: http://www.mtk.ut.ee/sites/default/files/mtk/RePEc/mtk/febpdf/febawb84.pdf
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    References listed on IDEAS

    as
    1. Nauwelaers, Claire & Wintjes, Rene, 2000. "SME policy and the Regional Dimension of Innovation: Towards a New Paradigm for Innovation Policy?," Research Memorandum 023, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Nijkamp, Peter & Mills, Edwin S., 1987. "Advances in regional economics," Handbook of Regional and Urban Economics,in: P. Nijkamp (ed.), Handbook of Regional and Urban Economics, edition 1, volume 1, chapter 1, pages 1-17 Elsevier.
    3. Jarno Hoekman & Koen Frenken & Frank Oort, 2009. "The geography of collaborative knowledge production in Europe," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(3), pages 721-738, September.
    4. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1126-1152, December.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    5. Michael Fritsch, 2001. "Co-operation in Regional Innovation Systems," Regional Studies, Taylor & Francis Journals, vol. 35(4), pages 297-307.
    6. Helen Lawton Smith, 2003. "Knowledge Organizations and Local Economic Development: The Cases of Oxford and Grenoble," Regional Studies, Taylor & Francis Journals, vol. 37(9), pages 899-909.
    7. Roger Hartley & Richard Cornes, 2000. "Joint Production Games And Share Functions," Keele Department of Economics Discussion Papers (1995-2001) 2000/07, Department of Economics, Keele University.
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    Cited by:

    1. Florian W. Bartholomae & Chang Woon Nam & Alina Schoenberg, 2015. "Urban Shrinkage in Eastern Germany," CESifo Working Paper Series 5200, CESifo Group Munich.

    More about this item

    Keywords

    Land-use Policy; Municipal Regional Competition; Two-stage Competition Model; Zoning; Technology Park;

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • L3 - Industrial Organization - - Nonprofit Organizations and Public Enterprise
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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