Hidden Champions as a Determinant of Regional Development: An Analysis of German Districts

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Lena Benz ◽  
Jörn H. Block ◽  
Matthias S. Johann
Keyword(s):  
Regional Development ◽  
Vertical Integration ◽  
Regional Policy ◽  
Spillover Effects ◽  
Median Income ◽  
Regional Innovation ◽  
Niche Markets ◽  
Policy Makers ◽  
Regional Economic Performance ◽  
Development Literature

Abstract Hidden Champions (HCs) are defined as market leaders in niche markets. They represent the success of the German Mittelstand like no other group of firms. However, little is known on how HCs contribute to regional development. Given their export strength, regional embeddedness, and strong vertical integration we expect HCs to have a profound effect on regional development. Using a German dataset of 1,645 HCs located in 401 German districts, we analyze the effect of HCs on a variety of regional development dimensions. Our results show that HCs are not equally distributed across regions and influence regional development. Regions with a higher number of HCs show strong regional economic performance in terms of median income. Moreover, HC intensity affects regional unemployment and trainee rates as well as regional innovation in terms of patents. Surprisingly, we did not find an effect of regional HC intensity on regional R&D levels and GDP. We can further conclude that the effect of HCs is not limited to the particular region in which they are located but that sizable spillover effects exist. Besides its contribution to the regional development literature, our study adds to a better understanding of the HC-phenomenon. Implications for regional policy makers are discussed.

Regional Transformation Processes through the Universities—Institutions—Industry Relationship

2008 ◽  
Vol 22 (2) ◽  
pp. 105-118 ◽  
Author(s):  
Lucio Cassia ◽  
Alessandra Colombelli ◽  
Stefano Paleari
Keyword(s):  
Regional Development ◽  
Knowledge Spillovers ◽  
Innovation System ◽  
Transformation Process ◽  
Development Cooperation ◽  
Local Policy ◽  
Regional Innovation ◽  
Policy Makers ◽  
Highly Educated ◽  
Regional Transformation

The purpose of this paper is, first, to highlight the role of the relationships between universities, institutions and firms in different regional development processes working towards a knowledge economy, and, second, to draw some implications for local policy makers. Adopting the regional innovation system (RIS) approach, the authors analyse selected regions – Cambridge (UK), Baden-Württemberg (Germany), Göteborg, (Sweden), Singapore, Milwaukee (USA) and Pittsburgh (USA) – which in the last two decades have undergone a process of economic and industrial renewal. From their analysis of the regional transformation process, they classify three different regional development paths defined respectively as ‘RIS-into’, ‘RIS-from’ and ‘RIS-through’ processes. Some common features emerge. In the process of regional development cooperation among universities, institutions and firms is essential. In particular, local universities play a crucial role in providing highly-educated people, research and spin-off activities. Thus universities are able to foster knowledge spillovers and interact constructively with firms. These interactions are nurtured and promoted by local policy makers.

scholarly journals Prospects for the improvement of interregional cooperation in Russia (based on the example of the Siberian regions)

2021 ◽  
Vol 35 (2) ◽  
Author(s):  
Sergey Violin
Keyword(s):  
Regional Development ◽  
Regional Policy ◽  
Gradual Increase ◽  
Main Hypothesis ◽  
Policy Makers ◽  
Institutional Infrastructure ◽  
Strategic Plans ◽  
Interregional Cooperation ◽  
The Russian Federation ◽  
Regional Authorities

In the Russian Federation, interregional cooperation is limited, which negatively affects regional development and contributes to growing regional disparities. The goal of this research is to gain better understanding for slow and inconsistent development of interregional relations in Russia. The main hypothesis is that the lack of proper coordination and communication between the federal and regional levels of government, between regions themselves, as well as between regional authorities and other stakeholders in regions’ development is one of the key problems that hampers development of interregional cooperation in contemporary Russia. Retrospective, statistical, and content analysis were used to test this hypothesis. The analysis of the federal policy toward regional development since 1990 has shown gradual increase in centralisation of authority. The regional policy stimulated interregional competition and dependence on federal investments and subsidies. Nevertheless, the study of strategic plans of Siberian regions shows that with proper coordination and communication between interested parties some of the problems inhibiting interregional cooperation can be resolved. Better coordination, in turn, requires improvement of the institutional infrastructure. The findings are relevant for policy makers and scholars in the field of regional development. Further research is needed concerning the most efficient forms of coordination institutions.

The ‘Modernisation’ of Scotland and its Impact on Glasgow, 1955–1979: ‘Unwanted Side Effects’ and Vulnerabilities

2016 ◽  
Vol 25 (3) ◽  
pp. 294-316 ◽  
Author(s):  
Chik Collins ◽  
Ian Levitt
Keyword(s):  
Side Effects ◽  
Government Policy ◽  
Regional Policy ◽  
Excess Mortality ◽  
Policy Agenda ◽  
Policy Makers ◽  
Uk Government ◽  
1960S And 1970S ◽  
The 1960S ◽  
The Impact

This article reports findings of research into the far-reaching plan to ‘modernise’ the Scottish economy, which emerged from the mid-late 1950s and was formally adopted by government in the early 1960s. It shows the growing awareness amongst policy-makers from the mid-1960s as to the profoundly deleterious effects the implementation of the plan was having on Glasgow. By 1971 these effects were understood to be substantial with likely severe consequences for the future. Nonetheless, there was no proportionate adjustment to the regional policy which was creating these understood ‘unwanted’ outcomes, even when such was proposed by the Secretary of State for Scotland. After presenting these findings, the paper offers some consideration as to their relevance to the task of accounting for Glasgow's ‘excess mortality’. It is suggested that regional policy can be seen to have contributed to the accumulation of ‘vulnerabilities’, particularly in Glasgow but also more widely in Scotland, during the 1960s and 1970s, and that the impact of the post-1979 UK government policy agenda on these vulnerabilities is likely to have been salient in the increase in ‘excess mortality’ evident in subsequent years.

Regional Policy in the European Community: Its Impact on Regional Policies and Public Administration in the Mediterranean Member States

1987 ◽  
Vol 5 (3) ◽  
pp. 369-381 ◽  
Author(s):  
I Tömmel
Keyword(s):  
Regional Development ◽  
European Community ◽  
Regional Policy ◽  
National Level ◽  
State Intervention ◽  
Economic Incentive ◽  
Market Mechanism ◽  
Member States ◽  
Regional Policies ◽  
First Time

When the European Community (EC) created the European Fund for Regional Development (EFRD) in 1975, regional policy was established at an international level for the first time ever. Because of the chosen instruments and the ‘additive’ mechanism of implementation—via the administrative bodies of the member states—this policy seemed at first to mean little more than a reinforcement of regional policies at a national level. Since then, the EC has considerably intensified its regional policy and diversified its instruments. However, the recent reforms of the Community's regional policy serve not only to achieve (certain) development effects with respect to the economic structure of less-developed areas, but also as a means of reorganizing governmental (planning) bodies and regional development policies in the member states, that is, as a means of inducing modernization and differentiation of state intervention in the countries concerned. Thus, the EC intervenes’ in the affairs of the member states: Not in the shape of more or less authoritarian intervention by a superior body—EC powers do not permit this—but via the indirect effect of market mechanism. Subsidies are the economic incentive to collaborate.

Illusions of Clustering: A Systematic Evaluation on the Effects of Clusters on Regional Economic Performance in Korea

2021 ◽  
pp. 016001762110187
Author(s):  
Hyunha Shin ◽  
Junseok Hwang
Keyword(s):  
Economic Growth ◽  
Economic Performance ◽  
Local Governments ◽  
Regression Models ◽  
Regional Growth ◽  
Systematic Evaluation ◽  
Regional Innovation ◽  
Regional Economic ◽  
Pca Method ◽  
Regional Economic Performance

Korea has pursued a cluster-based policy to increase industrial competitiveness and to alleviate development gaps between the regions. However, local governments have often oversupplied clusters without an objective examination of the demands and conditions in the regions. Based on these concerns, this study analyses effects and interdependencies of factors related to regional innovation and growth in Korea. Employing a PCA method and a GLS regression models on panel data, we generated three composite factors, social, capacity, and clustering, and estimated their effects on regional economic performance. The results show that it is important to have a favorable socio-economic setting to foster growth by clusters. In addition, cluster-based policies may have weaker effects than expected, because the effect of R&D capacity on regional growth was stronger and longer lasting. Finally, some specific elements that most affected economic growth in Korea’s regions are identified. The overall results indicate favorable environments should be established beforehand to foster regional growth with clusters, which confirms “jobs follow people.”

scholarly journals POLICY FOR BALANCED REGIONAL DEVELOPMENT: POLICY SETTINGS ON REGIONAL LEVEL – EXPERIENCE AND PRACTICE

2021 ◽  
Author(s):  
Marija Karaeva ◽  
◽  
Vesna Goceva Mihajlovska ◽  
Keyword(s):  
Regional Development ◽  
Development Policy ◽  
Regional Policy ◽  
Regional Level ◽  
Successful Implementation ◽  
Regional Development Policy ◽  
Policy Objectives ◽  
Main Factors ◽  
The Republic ◽  
Development Levels

Legally defined regional development is the process of identifying, promoting, managing and exploiting the development potential of the planned regions and areas with specific development needs. The policy of regional development is a system of goals, instruments and measures aimed at reducing regional disparities and achieving balanced and sustainable development of the Republic of North Macedonia. Following the adoption of the Law, activities and measures for its full implementation were carried out both at the central and regional level, creating necessary pre-conditions for achieving the policy objectives of balanced regional development: reduction of disparities in development levels between the eight planning regions, and reduction of the disparities in development levels within the planning regions. Experiences that are the result of more than twelve years of implementation of measures and activities to support balanced regional development allow identification of the main factors that enhanced successful implementation of regional development policy on a regional level in North Macedonia, at the same time identifying the conditions that constrained it. Both of these groups of factors are important for the answer to the questions: (i) Are the institutions on the regional level functional? and (ii) what should be improved? Therefore, this paper aims to give an overview of the institutions in charge of planning and implementation of the regional policy of the Republic of North Macedonia at the regional level – Council for Development of the Planning Regions and Centres for Development of the Planning Regions.

scholarly journals INSTITUTIONAL PROVISION INVESTMENT INSTRUMENTS OF PUBLIC ADMINISTRATION REGIONAL DEVELOPMENT

2017 ◽  
Vol 19 (3(65)) ◽  
pp. 47-55
Author(s):  
V.F. Goriachuk ◽  
D.F. Dukov
Keyword(s):  
Regional Development ◽  
Public Administration ◽  
Development Strategy ◽  
Regional Policy ◽  
Institutional Support ◽  
The State ◽  
State Governance ◽  
State Fund ◽  
Manual Mode

During the years of independence in Ukraine, a certain set of investment instruments of state governance for regional development has been created: state and regional target programs, regional development agreements, agreements on implementation of interregional projects, programs for overcoming the state of depression, the State Fund for Regional Development (DFRD), and others. However, their level of performance is quite low.Notwithstanding the provisions of the State Strategy for Regional Development for the period up to 2020, regional development agreements and programs to overcome the state of depression of the territory are not implemented at all. The use of the DFRR in the "manual mode" reduces the role of the fund in solving the tasks of regional policy of the state.One of the main investment instruments of state governance for regional development are regional target programs. The analysis of target programs of the Odesa Oblast, which operated in 2015, showed that most of them did not meet the priorities of the economic and social development strategy of the Odessa region and (or) have other defects.Agreements on the implementation of interregional projects, the implementation of which contributes to the improvement of socio-economic development of two or more regions, have not been used at all. The same situation with regard to programs to overcome the state of depression of the territory.The inadequate institutional support of the DFRD leads to its underfunding, non-compliance with the rules for distributing its funds between regions, and non-compliance with the priorities of regional development.The article proposes: to return the practice of using agreements on regional development as a mechanism for coordinating the interests of central executive and local self-government bodies in relation to the implementation of strategic tasks of regional development; based on the principle of subsidiarity, delegate to the regional level the authority to develop programs to overcome the state of depression of the territory; to implement methodological recommendations for the evaluation of regional target programs.

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