Civil Engineering Reference
In-Depth Information
Regional competitiveness and the competitiveness of enterprises are therefore
mutually dependent. Successful enterprises usually lead to the well-being of the
region in which they are located. However, the success of an enterprise is closely
related to the quality of regional conditions for production. A very individual,
regionally special mix of location factors is the prerequisite for the success of
enterprises. In the following section we will give more insight into the factors that
promote regional competitiveness. However, it can already be stated that econom-
ically successful regions are usually more likely to create and offer those conditions.
2 Factors for Regional Competitiveness
Competitiveness is the driving force for development. When regions find them-
selves in competition, the different factions within the region are more likely to
cooperate in order to achieve mutual benefits. The common aim is to improve
the regions comparative advantages with respect to other, competing regions. The
diverse, loosely knit networks and interactions seem to play an important role for
the development of dynamic economic regions. Interactions are usually based on
knowledge exchange and spill-over between enterprises and their surroundings.
The following section deals with factors that influence the level of regional com-
petitiveness. They are: The availability of knowledge and the ability to learn, the
presence of social capital and networks, and the form of organizational structures.
2.1 Knowledge and Learning
Knowledge and learning have a fundamental meaning for regional prosperity and
growth:
''Knowledge is the fundamental resource in our contemporary economy and learning is the
most important process'' (Johnson & Lundvall
1994
, p. 24).
Knowledge, on the one hand, is nowadays globally available. Through modern
communication technology it can spread globally within seconds: it is extremely
mobile. One consequence is the global activity of not only networks of enterprises,
but also of informal networks. On the other hand, knowledge tends to accumulate
in certain areas and places. It clusters wherever conditions for generating and
managing knowledge are best. Favorable framework conditions include the pres-
ence of R&D-adequate infrastructure and the availability of specialized personnel.
Moreover, social factors like networks play an important role in the develop-
ment of knowledge. Proximity, social interaction, and face-to-face-contacts foster
the evolution of what we call implicit or tacit knowledge. As opposed to explicit or
codified knowledge, tacit knowledge is not available in topics, rules, or formulas.
However, it is crucial for innovations to evolve as a factor for competitiveness.
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