Geography Reference
In-Depth Information
in order to protect the industry against competition from low-wage countries (Stråth,
1986). Related to these government policies, the European and South Korean shipbuild-
ing industries have recently been involved in a political battle (Eich-Born and Hassink,
2005).
The textile industry, in contrast, is much less spatially concentrated, less capital-
intensive, has lower entry and exit barriers, is more characterized by small and medium-
sized enterprises, has less inl uential labour unions and has in many countries, notably
in Germany and South Korea, a much weaker lobby for state support (Dicken, 2003;
Toyne et al., 1984).
Despite the competitive pressure and economic globalization, the national
political-
institutional context
s of development remain remarkably distinct (Whitley, 2000) and
therefore still provide dif erent institutional contexts for lock-ins. Three dif erent socio-
economic models of development can be identii ed (see also Cooke and Morgan, 1998;
Whitley, 2000): entrepreneurial, associative and developmental. Germany can be consid-
ered as an associative and South Korea as a developmental model.
The
associative model
of development is often regarded as a model of 'public-private
partnership', where states are negotiating with, and often also delegating power to,
industrial associations. Industrial associations have emerged as important vehicles for
branch organization, concerned with standardization or other topics of common inter-
est, also inl uencing market regulations and the forms of competition. The state enables
forms of self-organization that foster both economic development and political stability
(Cooke and Morgan, 1998). This form of governance involves the devolution and del-
egation of power from the state to intermediate organizations, thus creating institutions
that may enhance and enable learning and innovation. Thus, the state is collaborating
with and working through institutions that constitute systems of innovation (Cooke
and Morgan, 1998, p. 24). The associative model is typically found in Germany, Austria
and Switzerland, partly in the Netherlands and in a dif erent, participatory form in
Scandinavian countries.
The associative model has a broad-based educational and training system that recog-
nizes the value of both academic education and vocational training (Lam, 2002). This
educational system is conducive to a decentralized mode of work organization and pro-
vides a good basis for interactive learning. Practical experience has a high social status.
Although this educational system allows for the accumulation of tacit knowledge, at the
same time it inhibits the creation of active labour markets. Labour markets are much less
polarized than in the entrepreneurial model. They are partly local, with relatively little
geographical mobility and scope for renewal. The associative model is characterized by
strong unions and participation of the work-force in management, which leads to long-
term relations to employers.
With regard to the constitutional set-up, the state encourages the establishment of
strong intermediary associations and delegates a considerable range of economic and
social functions to them (Whitley, 2000). There is strong involvement of social partners
in policy-making. Associative modes of governance also play an increasingly important
role in regions, transforming the regional level from being passive spaces subjected
to corporate allocative decision-making into laboratories where regional institutions
enhance trust and cooperation and have contributed to innovation processes (Cooke and
Morgan, 1998). That means, on the other hand, that local and regional actors also have
