Table Of Content

Regional Economic Development Robert J. Stimson Roger R. Stough Brian H. Roberts Regional Economic Development Analysis and Planning Strategy SecondEdition 123 RobertJ.Stimson ProfessorofGeographicalSciences andPlanningandConvenor AustralianResearchCouncil ResearchNetworkinSpatiallyIntegrated SocialScience UniversityofQueensland BrisbaneQLD4072 Australia [email protected] ProfessorRogerR.Stough SchoolofPublicPolicy GeorgeMasonUniversity 4400UniversityDr. MS2C9 FairfaxVA22030 Australia [email protected] ProfessorBrianH.Roberts CentreforDevelopingCities UniversityofCanberra ACT2601 Australia [email protected] ISBN-10 3-540-34826-3 SpringerBerlinHeidelbergNewYork ISBN-13 978-3-540-34826-9 SpringerBerlinHeidelbergNewYork ISBN 3-540-43731-2 1.Ed.SpringerBerlinHeidelbergNewYork LibraryofCongressControlNumber:2006931358 Thisworkissubjecttocopyright.Allrightsarereserved,whetherthewholeorpartofthe materialisconcerned,specificallytherightsoftranslation,reprinting,reuseofillustrations, recitation,broadcasting,reproductiononmicrofilmorinanyotherway,andstorageindata banks.Duplicationofthispublicationorpartsthereofispermittedonlyundertheprovisions oftheGermanCopyrightLawofSeptember9,1965,initscurrentversion,andpermissionfor usemustalwaysbeobtainedfromSpringer-Verlag.Violationsareliableforprosecutionunder theGermanCopyrightLaw. SpringerisapartofSpringerScience+BusinessMedia Originallypublishedintheseries:AdvancesinSpatialScience ©Springer-VerlagBerlinHeidelberg2002,2006 Theuseofgeneraldescriptivenames,registerednames,trademarks,etc.inthispublication doesnotimply,evenintheabsenceofaspecificstatement,thatsuchnamesareexemptfrom therelevantprotectivelawsandregulationsandthereforefreeforgeneraluse. Typesetting:Camerareadybyauthor Production:LE-TEXJelonek,Schmidt&VöcklerGbR,Leipzig Cover-design:WMXDesignGmbH,Heidelberg SPIN11769743 88/3100YL–543210 Printedonacid-freepaper Foreword The second edition of this book represents a re-editing and in some cases significant rewriting of the original book published in 2001. Substantial editing occurred and new material has been included in the introductory chapter and in Chap. 10, the concluding chapter. The reason for this was to bring forward to 2006 the original thesis of the book about the need for regions to be prepared to experience increasingly greater shocks and to have increasingly less time to respond in adjust- ing their economic development to achieve sustainability. Events that have occurred over the past five years - such as the 9/11 terrorist attacks, continuing the rapid advances in technology, the rise of sustained economic growth in China and beginning to unfold in India, the Indonesian Tsunami, Hurricane Katrina devasta- tion in New Orleans, the invasion of Iraq and continued unrest in the Middle East represents on-going and unforeseen risks and new challenges which continue to confront and impact nations around the globe and the regions and localities within them. Regions need to be fast and flexible and agile in order to be not only expedi- tiously adaptive to change, but also to be proactive in developing strategies to ad- dress and shape their futures. In addition, some significant new material has been added to the other chapters to reflect recent advances in thinking and approaches to regional economic development analysis and planning strategy. For example, one of the most significant additions is the material on leadership and regional economic development in Chap. 8 that reflects considerable new thinking and research on how to conceptu- alize that leadership and institutions as platforms for sustainable regional economic development. In Chap.6, the discussion on industry clusters and cluster analysis contains new material that reflects an evolving foundation methodology for the initial identification of clusters in an unambiguous and systemic way and the validating mechanisms that may be used. This adds a new and important ele- ment to the discussion in the first edition of the book. The section on spatial cluster analysis that was in this chapter in the first edition has been moved to Chap. 9 on decision support systems as it offers a clear application of GIS to a basic analysis issue. Thus, a reader wishing to focus on industry cluster analysis will need to jump forward from Chap. 6 to Chap. 9 to continue the flow from functional cluster analysis to spatial analysis of industry clusters. And in this second edition of the book, in Chap. 7 there is some new material on the nature of regional risk factors and the way regional risk assessment may be assessed and in order that risk management approaches can be incorporated into regional development strategy and plans. VI Foreword For all the chapters, the methodological components and case studies have been fully and carefully edited to ensure additional clarity for the reader. A number of new case studies have been added in some of the chapters, and old case studies updated where possible or appropriate. In this context, all of the equations and expressions have been reviewed and tested to ensure that they are correct. This should clear up some of the confusion that arose over the expressions used in the first edition, as, for example, for the material on shift-share analysis in Chap. 3. In Chap. 9, in the section dealing with the regional input-output econometric fore- casting model for the Northern Virginia and National Capital Region, data has been added to the forecasts so that the methodology can be evaluated in terms of outcomes. This adds a new and interesting dimension to this analysis. Throughout this second edition of the book, we have taken specific care to more explicitly frame the discussion of theory and applications to reflect the atten- tion being given in contemporary research to the influence of endogenous factors in regional growth and development. In addition, we also more explicitly incorpo- rate discussion of sustainability to reflect the increasingly pervasive concern with principles of sustainable development in regional planning and development. In Chap. 2, case studies on planning approaches incorporating sustainable development have been added. Finally, we have added many new references to published work that has appeared in the last few years so that readers will be able to pursue both historic and current literature in the field with which this book is concerned. Acknowledgements A number of people over the years from the mid 1990s on have worked to help the authors bring this book into a published form for the second time. In this second edition Ms. Emilia Istrate has taken on the task of verifying content, page numbers and eliminating awkwardness in the prose, figures and charts. She has spent many days to make sure that the book is in fine shape. Chunpu Song is due special thanks for reviewing and testing all equations to ensure that they are in a correct form. Donna Sherrard provided keying assistance in making author corrections to the manuscript. Preface Regional economic development has attracted the interest of economists, geogra- phers, 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, employ- ment, 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 Isard, was the first to put to- gether a comprehensive volume on techniques of regional analysis (Isard 1960), and since then a huge literature has emerged, including the many titles in the se- ries 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. X 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 and extensions 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. At the same time it is cast in a story type framework about the evolution of economic development strategy and the ways strategy is being formulated in the post-Fordist era of the 21st century. However, in this context, a considerable part of the book is about the applied research experiences the authors have enjoyed with our collabo- rating colleagues; but we also draw on the work of many other researchers and practitioners. The bibliography provides the reader with a wide range of theoretical, methodological and applications literature to pursue. It is the authors’ hope that 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 com- petitive and rapidly changing set of factors that are both exogenous and endogenous to a region. This requires commitment to good practice techniques for ana- lysing 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. R. J. Stimson R. R. Stough B. H. Roberts Contents Foreword V Acknowledgements VII Preface IX 1 Perspectives on Regional Economic Development 1 1.1 Regions in the New Global Economy 1 1.2 What Is Regional Economic Development? 4 1.3 Understanding How Regional Economies Work and the 7 Challenge that Represents for Development Planning 1.4 The Changing Paradigms Shaping Economic 11 Development Policy and Strategy 1.5 Some Core Theories and Models of Regional Economic 18 Development 1.6 Thinking Global While Acting Local 36 1.7 Sustainable Development 39 1.8 Schools Shaping Thinking About Regional Economic 42 Development Strategy and Planning 1.9 New Tools, New Strategies for Regional Economic 46 Development Planning 1.10 Scope and Structure of this Book 49 2 The Regional Economic Development Movement: The 53 Evolution of Strategy from Early to Contemporary Approaches 2.1 The Changing Context 53 2.2 The Changing Objectives of Local Economic 55 Development Policy 2.3 Approaches to Planning for Regional Development in the 61 1970s and 1980s 2.4 Monitoring Outcomes of Economic Development 73 Programs 2.5 The Strategic Planning Approach 76 2.6 The Concern with Sustainable Development 84