Regional Economic Development: Analysis and Planning Strategy

401 Pages·2002·10.835 MB·English

by  Prof. Dr. Robert J. Stimson, Prof. Dr. Roger R. Stough, Prof. Dr. Brian H. Roberts (auth.)

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Robert J. Stimson · Roger R. Stough
Brian H. Roberts
Regional Economic
Development
Analysis
and Planning Strategy
With 85 Figures
and 48 Tables
' Springer
Prof. Dr. Robert J. Stimson
The University of Queensland
Centre for Research into Sustainable Urban and Regional Futures
School of Geography, Planning and Architecture
St. Lucia, Qld. 4072, Australia
Prof. Dr. Roger R. Stough
George Mason University
School of Public Policy
Fairfax, VA 22030-4444, USA
Prof. Dr. Brian H. Roberts
University of Canberra
Center for Developing Cities
Canberra, Australian Capital Territory 2601, Australia
ISBN 978-3-662-04913-6
Library of Congress Cataloging-in-Publication Data applied for
Die Deutsche Bibliothek - CIP-Einheitsaufnahme
Stimson, Robert J.:
Regional Economic Development: Analysis and Planning Strategy; with 48 Tables I
Robert J. Stimson; Roger R. Stough; Brian H. Roberts.-
(Advances in Spatial Science)
ISBN 978-3-662-04913-6 ISBN 978-3-662-04911-2 (eBook)
DOI 10.1007/978-3-662-04911-2
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Acknowledgements
We are indebted to many of our colleagues involved in the Regional Science As
sociation International from whom we have received encouragement and helpful
advice in developing the ideas for, and in writing this book. In particular, we are
grateful to those authors whose research we have referenced for some of the many
studies used in this book. Of course any errors of representation of their work are
ours alone.
Four people in particular we wish to thank for the many hours they have
worked with us in preparing the many drafts and the final manuscript of this book.
They are Michelle Dixon, assistant to Robert Stimson at the University of
Queensland; and Chris Green, Rajendra Kulkarni, and Christine Pommerening,
assistants to Roger Stough at George Mason University.
We also wish to thank two anonymous reviewers who provided most useful
comments on an earlier draft of this book.
Preface
Regional economic development has attracted the interest of economists,
geographers, planners and regional scientists for a long time. And, of course, it is a
field that has developed a large practitioner cohort in government and business
agencies from the national down to the state and local levels. In planning for cities
and regions, both large and small, economic development issues now tend to be
integrated into strategic planning processes.
For at least the last 50 years, scholars from various disciplines have theorised
about the nature of regional economic development, developing a range of models
seeking to explain the process of regional economic development, and why it is
that regions vary so much in their economic structure and performance and how
these aspects of a region can change dramatically over time. Regional scientists in
particular have developed a comprehensive tool-kit of methodologies to measure
and monitor regional economic characteristics such as industry sectors,
employment, income, value of production, investment, and the like, using both
quantitative and qualitative methods of analysis, and focusing on both static and
dynamic analysis. The 'father of regional science', Walter lsard, was the first to
put together a comprehensive volume on techniques of regional analysis (Isard
1960), and since then a huge literature has emerged, including the many titles in
the series published by Springer in which this book is published.
Over time, scholars and practitioners from many fields-including planning,
public administration, business, and the management sciences-have also
developed various approaches to formulating strategy for regional economic
development in a systematic way. This process of regional economic development
strategy planning and implementation needs to be informed by regional analysis.
This book is about the analysis of regional economic performance and change,
and how analysis integrates with strategies for local and regional economic
development policy and planning. Quite deliberately this book is not about the
theory of regional economic development, although it provides the reader with an
overview of key theoretical and conceptual contexts within which the economic
development process takes place. Rather, the deliberate emphasis in this book is to
provide the reader-both students and practitioners-with an account of
quantitative and qualitative approaches to regional economic analysis and of old
and new strategic frameworks for formulating regional economic development
planning. This is done within the context of the evolution of society from the
industrial to the post-industrial era in which contemporary forces of globalisation
and economic restructuring are creating increasing interdependence, rapid change,
and high levels of uncertainty and risk for regions at all levels of scale.
viii Preface
The book sets out to provide teachers, students and practitioners in regional
economic development with a tool-kit of tried and tested methods for regional
economic analysis and strategy planning. But importantly it also introduces the
reader to recent innovations in methodologies for setting about the process of
regional economic development planning. This is a 'how-to-do-it' type of book,
incorporating many examples of application of tools of analysis and strategic
planning processes in local and regional economic development. A considerable
part of the book is about the applied research experiences the authors have
enjoyed with our collaborating colleagues; but we also draw on the work of many
other researchers and practitioners. The bibliography provides the reader with a
guide to a wide range of theoretical, methodological and applications literature to
pursue.
It is the author's hope this book will help the reader to better understand the key
considerations in regional economic development, to appreciate the value of the
tools for regional analysis discussed, and to develop a better appreciation of the
importance of good design for the process of regional economic development
strategy formulation.
In the complex world of the early 21st century, regions-both large and
small-need to be fast and flexible in adapting to the challenges of an increasingly
competitive and rapidly changing set of factors that are both exogenous and
endogenous to a region. This requires commitment to good practice techniques for
analysing regional performance and to the process of regional economic
development and strategy planning. It requires commitment to sustained
leadership. And it requires the development of comprehensive and integrated
information systems to understand and monitor the performance of a region and to
help develop and test scenarios for future paths for regional development.
Contents
Acknowledgements v
Preface vii
1 Perspectives on Regional Economic Development 1
2 The Regional Economic Development Movement: 43
Early Approaches and the Evolution of Strategy
3 Traditional Tools for Measuring and Evaluating Regional Economic 75
Performance 1: Economic Base and Shift-Share Analysis
4 Traditional Tools for Measuring and Evaluating Regional Economic 119
Performance II: Input-Output Analysis
5 Path Setting: A New Approach to Regional Economic Development 153
Futures
6 Industry Cluster Analysis 197
7 Multi-Sector Analysis: Assessing Regional Competitiveness and 235
Risk
8 Capacity Building and Leadership for Regional Economic 275
Development
9 Decision Support Tools to Inform Regional Economic Development 307
Analysis and Strategy
10 Emerging Issues for Regional Economic Development 341
Figures 367
Tables 371
References 373
Index 395
1 Perspectives on Regional Economic
Development
1.1 Regions in the New Global Economy
The role of regions in national economies has changed significantly in recent
times as a result of globalization and structural adjustment. Understanding these
processes of change is crucial for undertaking regional economic analysis and in
planning for regional development.
In developed economies in the 1950s and 1960s, often industries in the regions
of a nation tended to be highly specialized and protected through the operation of
tariffs and other government policies that shielded them from international
competition. Many regions-especially large urban regions-tended to be
characterized by large scale, energy intensive, low labor skill, locally integrated
industries producing commodities, manufactured goods and services based on
resources and largely local expertise. Many regions exhibited the ultimate
outcomes of specialized mass production emanating from the industrial revolution
or from roles of centers of administrative control-for example, in the United
States, Detroit and its region in the mid west-Great Lakes was the center of the
automobile industry and Pittsburgh was an iron and steel city; on the east coast
New York was a financial center, while Washington was an administrative
government center.
But in the 1970s dramatic new forces were unleashed generating new processes
of change that have reshaped many regions and their economies. There was the oil
crisis induced by the Organization of Petroleum Producing Countries (OPEC)
which ushered in a new era of increased energy costs, with new technologies re
engineering manufacturing processes and transportation and communications,
reorienting production to become less dependent on the inefficient large scale
operations and intensive consumption of energy. New technologies, and in
particular the rise of the semi-conductor silicon chip, set the world on the path
towards the information age of knowledge-based industries, with their
requirements for new types of highly skilled, flexible labor, management and
strategic alliances that are highly mobile. With the collapse of the Bretton Woods
Agreement-which since the end of World War II had seen the world's major
nations and their currencies controlled through links to gold and rigid highly
immobile exchange rates-we saw the beginning of a new environment of floating
exchange rates as the world entered a new era of financial deregulation and
globalization of capital markets. Progressively, international agreements have
2 1 Perspectives on Regional Economic Development
been forged breaking down trade barriers as the world moved from an era of
protectionism to one of competition in the new global economy.
As a result of these fundamental changes, the developed nations were plunged
into an increasingly complex, uncertain and competitive world as they underwent
fundamental changes in the structure of their economies. The regional impacts of
these changes have been profoundly differential, producing sharp dichotomies
between the winners and the losers. A relatively few world cities-such as New
York, London, Tokyo, Hong Kong, Sydney-dominate global financial markets.
Old industrial regional giants-such as Detroit, Cleveland, and Pittsburgh in the
United States, Liverpool in the United Kingdom, and Lille in France-declined.
New high technology regions-like the Silicon Valley in the San Francisco Bay
area, Route 123 in Boston, the Washington capital region in the United States,
Cambridge in the United Kingdom, and Mediterranean France-emerged. Sun
belt growth regions-such as Southern California, Arizona, and Florida in the
United States, and the Brisbane-South East Queensland region in Australia-have
prospered. Many rural regions have suffered decline as places of agricultural
specialization are being longer so highly protected they have struggled to be
competitive in selling on world markets.
In the 1980s and the 1990s, few regions have not been affected profoundly in
some way or other by globalization and structural change, including changes to
the international sourcing of goods, materials, services, design, finance,
production and marketing. These changes have led to greater inter-regional and
international trade, and at the same time resulted in the development of highly
specialized agglomerations of new geographic clusters of industries, especially in
global cities and mega metro regions that service both national and international
markets (Amin and Goddard 1986; Erneste and Meier 1992). These powerful sub
regional economies have Gross Regional Products (GRP) larger than that of many
nations (Ohmae 1995). Paradoxically, it is often mega metro regions, and no
longer nation states, that are the critical drivers of economic development (Castells
and Hall 1994). And in some cases regional economies dominate the national
economy from a leading technology or entrepreneurial perspective.
In the past two to three decades, the rise of the post-industrial (sometimes
called post-Fordist) orientation of economies across the world has seen the
emergence of leading regions in terms of technology and entrepreneurial activity,
such as the Third Italy (Italy), West Jutland (Denmark), Bangalore (India), and
Silicon Valley and Route 123 (United States). Many studies have identified and
analyzed these and other dynamic regions (see, for example, Campagni 1995;
Hansen 1992; Scott and Storper 1992; Illeris 1993, Erickson 1994).
The expansion of market boundaries, and the reduction of trade barriers, have
brought new opportunities to regional industries while simultaneously exposing
them to increased competition, both domestically and internationally. In nations
such as the United States, state and local economic policies have been used to
stimulate the vitality and success of firms and to raise local employment and
eventually income levels for many decades, and especially to assist regions to
develop and adapt different policies to cope with the challenges of restructuring to