Geography Reference
In-Depth Information
complex sets of observations. As such, it is to be expected that in our
theoretically constructed taxonomy our individual categories should also
exhibit significant internal variation.
Yet, what is important in terms of economic geography is to identify
the dominant form of spatial-industrial structure which a locality exhib-
its. Once again, many observed cases will exhibit aspects of more than
one, and sometimes even all, of the individual categories, depending
also on the spatial scale which is the specific unit of analysis. However,
in order to make sense of the overall workings of the local region and
also the possibilities and rationale for MNE investment in that region, it
is necessary to identify the dominant transactions, relations, knowledge
and innovation characteristics of the region. It is an awareness of these
knowledge and innovation features that clearly demonstrates that many
regions will never be appropriate locations for particular types of cluster
policies aimed at promoting either Silicon Valley-style agglomerations or
new economy 'creative' clusters, even though there have been multiple
attempts at branding places as such. 6 In terms of technology, knowledge
and innovation, the developmental features of 'mature' regions are very
different indeed to those of newly emerging regions (Farshchi et al. 2009).
Moreover, shifts in technology can lead to processes which drive both the
rise and decline of different industrial clusters and regions (Cantwell and
Iammarino 2003; Boschma and Lambooy 1999).
However, the existence of spatially localized interdependencies and
relations does not necessarily imply that innovation depends principally
on them. Knowledge circulation within the region is complementary
to that which occurs across regions, and to the linkages which operate
between local and non-local actors (Bathelt et al. 2004; Wolfe and Gertler
2004). Being able to build new competencies and capabilities involves
the ability to establish links at all levels, from the 'global' to the 'local'.
Such linkages can be established through many different channels: trade
exchanges; inward and outward foreign direct investment; involvement in
global production networks; technological alliances; integration in knowl-
edge networks that, beyond firms, may encompass a variety of regional
organizations. As we have seen, the extent to which a region is both able
to attract innovative resources from elsewhere and also able to transmit
new ideas and innovation outwards - so spurring its external integration,
depends first and foremost upon its extant absorptive capacity and knowl-
edge base (e.g., Simmie 2003; Morgan 2004).
The notion of regional absorptive capacity, in conjunction with that
of openness and attractiveness, has been effectively applied to explain
diversity in the context of industrial clustering (e.g., Bell and Albu 1999;
Arita and McCann 2000, 2002; Garofoli 2003; Owen-Smith and Powell
Search WWH ::




Custom Search