Geography Reference
In-Depth Information
ships between technology, knowledge, inter-firm and inter-organizational
transactions, and the local innovation systems, are complex and extremely
varied. Economic development and regional policies aimed at promot-
ing regions by encouraging multinational investment must explicitly take
into account such complexity and variety if they are to ensure a good fit
between the features of the MNE and the features of the local economic
context.
Following the logic of the taxonomic approach developed in this topic,
in situations where the focus of public policy is intended to be on cities,
the
pure agglomeration
model is the most appropriate structural model
of analysis. Where the policy attention is on more peripheral regions or
on more mature oligopolistic industrial structures, the
industrial complex
would be the relevant model of reference. Where the policy effort is
focussed towards new industries, the
competence-based social network
is
the correct frame of reference, whereas when we are dealing with tradi-
tional local industries, the
old social network
model is likely to be the most
suitable type of spatial configuration (Iammarino and McCann 2009). As
we have seen from our analysis, the appropriate policies for growth and
development in each case would be expected to be quite distinct according
to the regional-industrial context. However, in reality different policies are
often mostly conflated into a single stylized scheme which focuses indis-
criminately on promoting particular agendas such as the emergence of
technologically advanced clusters, linkages between firms and universities,
R&D collaborations, or networks of 'trust' between small and medium
sized enterprises. Conversely, in terms of MNEs our arguments suggest
that more appropriately tailored regional policies in some cases would be
better advised to mirror rather traditional development policies with their
accent on infrastructural capital. In the case of the pure agglomeration
model, for instance, flexible land use policies and infrastructure provision
may be critical, along with a careful consideration of the city shadow effect
on the hinterland (Swann 2006). In the case of the industrial complex,
supply chain development, information provision and labour skills poli-
cies are all more likely to be the central to the policy-design. Trust-led
social networks models of spatial clustering are in many ways the most
complex cases, requiring integrated platforms for facilitating the conver-
gence between old and new knowledge bases and competencies (Cooke
2007). Only in the case of competence-based social network may regional
innovation policies specifically focussed on enhancing sophisticated intan-
gible assets and spillovers be either appropriate or realistic (Iammarino
and McCann 2009).
On the other hand, in general, local and regional economic development
policies should go well beyond the traditional search for simply attracting
