The Changing Economic Geography of Globalization The Changing Economic Geography of Globalization examines the effects that recent developments in capitalism have had on shaping the global map as well as analysing the effect on people and places which occupy different positions in the global economic system. An international team of scholars are brought together to assess, both theo- retically and empirically, the effects of globalization over space and to critically examine the prevailing debates. Collectively the essays in this volume challenge the belief that globalization shrinks time and space and leads to a homogenized global economy. This book explores the relationship between globalization, capitalist develop- ment, local competitiveness, regional innovation systems, European enlargement, inequalities and growth. Giovanna Vertova is an Assistant Professor in Political Economy at the University of Bergamo, Italy. Studies in Global Competition A series of books edited by John Cantwell, The University of Reading, UK, and David Mowery, University of California, Berkeley, USA Volume 1 Japanese Firms in Europe Edited by Frédérique Sachwald Volume 2 Technological Innovation, Multinational Corporations and New International Competitiveness The case of intermediate countries Edited by José Molero Volume 3 Global Competition and the Labour Market Nigel Driffield Volume 4 The Source of Capital Goods Innovation The role of user firms in Japan and Korea Kong-Rae Lee Volume 5 Climates of Global Competition Maria Bengtsson Volume 6 Multinational Enterprises and Technological Spillovers Tommaso Perez Volume 7 Governance of International Strategic Alliances Technology and transaction costs Joanne E. Oxley Volume 8 Strategy in Emerging Markets Telecommunications establishments in Europe Anders Pehrsson Volume 9 Going Multinational The Korean experience of direct investment Edited by Frédérique Sachwald Volume 10 Multinational Firms and Impacts on Employment, Trade and Technology New perspectives for a new century Edited by Robert E. Lipsey and Jean-Louis Mucchielli Volume 11 Multinational Firms The global–local dilemma Edited by John H. Dunning and Jean-Louis Mucchielli Volume 12 MIT and the Rise of Entrepreneurial Science Henry Etzkowitz Volume 13 Technological Resources and the Logic of Corporate Diversification Brian Silverman Volume 14 The Economics of Innovation, New Technologies and Structural Change Cristiano Antonelli Volume 15 European Union Direct Investment in China Characteristics, challenges and perspectives Daniel Van Den Bulcke, Haiyan Zhang and Maria do Céu Esteves Volume 16 Biotechnology in Comparative Perspective Edited by Gerhard Fuchs Volume 17 Technological Change and Economic Performance Albert L. Link and Donald S. Siegel Volume 18 Multinational Corporations and European Regional Systems of Innovation John Cantwell and Simona Iammarino Volume 19 Knowledge and Innovation in Regional Industry An entrepreneurial coalition Roel Rutten Volume 20 Local Industrial Clusters Existence, emergence and evolution Thomas Brenner Volume 21 The Emerging Industrial Structure of the Wider Europe Edited by Francis McGowen, Slavo Radosevic and Nick Von Tunzelmann Volume 22 Entrepreneurship A new perspective Thomas Grebel Volume 23 Evaluating Public Research Institutions The U.S. Advanced Technology Program’s Intramural Research Initiative Albert N. Link and John T. Scott Volume 24 Location and Competition Edited by Steven Brakman and Harry Garretsen Volume 25 Entrepreneurship and Dynamics in the Knowledge Economy Edited by Charlie Karlsson, Börje Johansson and Roger R. Stough Volume 26 Evolution and Design of Institutions Edited by Christian Schubert and Georg von Wangenheim Volume 27 The Changing Economic Geography of Globalization Reinventing space Edited by Giovanna Vertova The Changing Economic Geography of Globalization Reinventing space Edited by Giovanna Vertova I~ ~~o~;~;n~~:up LONDON AND NEW YORK First published 2006 by Routledge Published 2017 by Routledge 2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN 711 Third Avenue, New York, NY 10017, USA Routledge is an imprint of the Taylor & Francis Group, an informa business Copyright © 2006 Selection and editorial matter, Giovanna Vertova; individual chapters, the contributors Typeset in Times New Roman by Prepress Projects Ltd, Perth The Open Access version of this book, available at www.tandfebooks.com, has been made available under a Creative Commons Attribution-Non Commercail-No Derivatives 4.0 license. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging in Publication Data The changing economic geography of globalization: reinventing space / edited by Giovanna Vertova. p. cm. Includes bibliographical references and index. 1. International economic relations. 2. Globalization. 3. Capitalism. 4. Regional economic disparities. 5. Space in economics. I. Vertova, Giovanna, 1966- HF1359.C446 2006 330.9´051´1–dc22 2005019374 ISBN13: 978-0-415-35398-4 (hbk) Contents List of figures xi List of tables xiii List of contributors xv Acknowledgements xvii Introduction: “Reinventing space” 1 Giovanna VertovA Globalization: a questionable phenomenon 3 Space in the global economy 6 Outline of the book 10 Part I Theoretical perspectives 21 1 Lost in space? The geographical and political dimension of uneven capitalist development 23 Riccardo Bellofiore and Giovanna VertovA Introduction 23 The dead ends of the neoclassical tradition 24 The Marxian alternative 31 The integration of Marx with Schumpeter and Keynes 33 Space and the end of Fordism 36 Labour in current globalisation 38 The remaking of the working class 41 2 Positionality and globalization in economic geography 45 Eric ShepparD Introduction 45 Positionality and globalization 46 viii Contents Positionality and contemporary globalization 53 Implications: geographies of trade 60 Conclusion 66 3 A systemic approach to territorial studies: deconstructing territorial competitiveness 73 Sergio Conti and Paolo GiaccariA A narrative about complexity 73 Territorial systemic interactions 76 Toward productive territorial local systems: different kinds of territorialization 82 Organizative territorialization: the territory as productive territorial local system 83 Distinguishing organization and structure: an institutional approach 86 Some epistemological and theoretical implications for economic geography: the case of territorial competitiveness 90 Conclusions: needs for rethinking local development 95 4 Place is what we think with: or spatial history, intellectual capital and competitive distinction 101 G. M. Peter SwanN Introduction 101 The four ages of place 102 Competitive survival 106 Dimensions of product space 109 Place in the fourth age 110 Place is what we think with 111 Conclusion 115 Part II Empirical evidence 119 5 The boom and the bombshell: the New Economy bubble and the San Francisco Bay Area 121 Richard A. WalkeR Ground Zero of the New Economy 122 The financial tidal wave hits the bay shore 125 Riding the NASDAQ 126 Rocketing real estate 130 Contents ix Reconfiguring the urban landscape 133 The rubble of the bubble 138 6 The role of regional innovation systems in a globalising economy: comparing knowledge bases and institutional frameworks of Nordic clusters 148 BJØrn T. Asheim and Lars CoeneN Introduction 148 Providing context: the learning economy, industrial knowledge bases and institutional settings 149 Regional innovation systems and clusters: differences and connections 153 Comparison of Nordic clusters 156 Conclusions 160 7 Spatial externalities and local employment dynamics 166 Raffaele Paci and Stefano UsaI Introduction 166 Some theoretical and empirical issues 167 The data and the descriptive analysis 170 The estimation framework 175 The econometric results 181 Concluding comments 185 8 Accessibility and regional growth in Europe: the role of ICT policies 192 Roberta Capello and Alessia SpairanI Introduction 192 Accessibility in spatial economic theory 193 Accessibility and regional growth: empirical evidence 195 Alternative ICT policy options 200 Preconditions for ICT policy exploitation 209 Concluding remarks 212 9 Regional inequalities and EU enlargement: the macrospatial dimension 216 Marinella TerrasI Introduction 216 The spatial effects of economic integration 217 Regional inequalities during consecutive phases of European integration: 1960–97 219 x Contents The change in regional inequalities after the new enlargement 227 The determinants of regional productivity inequalities 230 Conclusions 232 Appendix 9.1: Delimitation of macroregions 236 Appendix 9.2: Theil index 238 Appendix 9.3: Sector definitions 239 Index 242 Figures 2.1 Largest foreign direct investment (FDI) affiliate partner, 1980 54 2.2 Global internet traffic, 1993 55 2.3 Differences in positionality with respect to airline flight 56 2.4 Net barter terms of trade for Third World primary commodity exports, 1950–2000 63 2.5 Third World purchasing power, 1955–93 64 2.6 World regional trading networks, 1993 65 2.7 Trade bargaining power index, 1993 66 3.1 Territory as the outcome of multiple structural couplings 83 3.2 From structural to organizative territorial interaction 84 4.1 The four ages of place 103 4.2 Space-shrinking technologies and competitive distinctions 108 5.1 NASDAQ index vs. US venture capital, 1995–2003 127 5.2 Bloomberg San Francisco index, 1995–2004 128 5.3 San Francisco office vacancies vs. rents, 1987–2002 131 5.4 International