November 2011

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pirs_20112.indd 1 10/27/2011 11:19:07 AM Association: an active section of ERSA  ,QWURGXFWLRQ and RSAI building bridges to Eastern and Middle Europe) have unselfishly  :HOFRPHIURPWKH3UHVLGHQW prepared for the successful organization

pirs_20112.indd 2 10/27/2011 11:19:07 AM Scotland, Greece and Japan. We also truly massive industry with a genuine introduce another Fellow (T.John Kim) worldwide market reach. With sales in and the important regional research excess of £3.5bn into more than 200 centre at the University of Barcelona in countries, different stages of the Spain (fantastic hosts at the recent production process located across the ERSA conference). Furthermore, there is country, and as the basis for an more news and information on the World unrivalled drinks cluster, this is a sector conference, also introduced by our worthy of detailed analysis. A decade President in his welcome. Once again ago we were commissioned jointly by we hope you enjoy the newsletter. the trades unions and the trade body for Eveline and Graham the employers, the Scotch Whisky Association, to undertake a study of the current and future prospects for the industry. This article is based upon that research of Roper et al 2006, which was both well received and generated  5HJLRQDOVSHFLDOL]DWLRQDQG invitations to submit evidence to the WKHGULQNVLQGXVWU\  7KH lower chamber of the UK Parliament, the House of Commons, and to present at 6FRWFK:KLVN\,QGXVWU\ conferences and to publish academic papers (see references below). Mike Danson and Geoff Whittam, The essential spirit of Scotland is University of the West of Scotland captured by Scotch Whisky: malt whisky (the traditional form of this uisge beatha Scots Gaelic for the “water of life”) is distilled in the Highlands and Islands, matured and bottled in the Lowlands, and consumed throughout the world. Scotch Whisky is the mainstay of many communities throughout Scotland. Fragile rural areas in the north and west depend on a few jobs in scattered production sites and significant employment is provided in the bottling Scotland is blessed with a number of plants of the central belt. Most (about iconic cultural symbols which are 90%) Scotch Whisky consumed now has recognisable across the globe: tartan, a grain whisky base with a mixture of kilts, and, of course, Scotch Whisky malts added, and these grain whiskies being but the leading examples. They are produced in the central belt of are at the core of promotion strategies, Scotland. Work is provided at several whether it be in the marketing stages of the production process: campaigns of ‘Scotland the Brand’ distillation, maturation, blending, bottling, or of the Scottish tourist authorities packaging, distributing and marketing. (VisitScotland) (Burnett and Danson, Growing from little more than a cottage 2004). There have been some criticisms industry at the end of the C19th century, in these being used as a key component Scotch Whisky is now a sector in attracting inward investment in dominated by massive multinational economic development strategies. But, corporations producing integrated in the case of Scotch Whisky in operations, which link plants and particular, behind the imagery there is a activities throughout the whole of

pirs_20112.indd 3 10/27/2011 11:19:07 AM Scotland. At the same time, much substantial capital to fund maturing smaller companies, some still private, stocks and stability in the market to be continue to be active in the industry. able to realize past production decisions.

Bowmore Distillery, Islay A dram of malt whisky The industry impacts on many communities and suppliers across Whisky can be and is made elsewhere: Scotland through its linkages particularly Japan, North America, the Republic of to agriculture, the utilities, packaging, Ireland and Northern Ireland. Whilst distribution and tourism, but also to Scotch Whisky outsells these and is many other sectors. dominant internationally, it is constantly After early resistance to Scotch malt challenged by these alternative whiskies, whisky, the use of Scotch grain whisky as well as by significant trends in to create more palatable blended drinks fashionable drinks. Younger more has led to the establishment of a major affluent consumers in the UK have been sector. In past years, helped and encouraged to start with lighter white occasionally hindered by such diverse spirits, ready mixed drinks, designer factors as problems in the vine crop, the beers and wine. period of prohibition in the USA, the rise That many of the larger producers in the and fall of the British Empire, the Scotch Scotch Whisky industry are in these Whisky industry has evolved into a markets also, raises further concerns for mature product and sector. the sector. Conglomerates involved in More than any other consumer product, several of these rival markets have the Scotch Whisky requires the long term potential to meet threats from such investment of capital over long periods competitors by shifting production (in order to secure the quality for which between spirits. Significantly, however, it is famous, and to meet the regulatory the larger enterprises in the industry are requirement which underpins it). While producers of a range of white spirits it is important to recognise that the (e.g. gin, vodka, Bacardi, etc.), and industry does not wish to remove the many of these activities are being maturation requirement, at the same located progressively in Scotland. time it does mean, of course, that capital Much of this movement is a recent is committed over long periods of time, phenomenon, but has been a growing imposing peculiar economic costs on the feature of the industry in Scotland and sector. By law, and the industry’s own beyond. The definition of the Scotch regulation, Scotch Whisky must wait Whisky industry consists of the after the initial distilling to mature, a key manufacture of distilled, potable, characteristic is the need for both alcoholic beverages. These activities are

pirs_20112.indd 4 10/27/2011 11:19:08 AM covered by class 15.91 of the Standard threat of duopoly pricing and output Industrial Classification of economic decision-making, with production activities (SIC(92)). This class includes collectively reduced to maximise profits. the production of other white spirits e.g. The conduct and performance of the vodka and gin, brandy, liqueurs, etc., but sector is critical, therefore, in guarding the dominance of Scotch Whisky means against this and yet there is a need for that the vast majority of the output in much more objective and non-partisan class 15.91 is accounted for by the research and commentary than is production of Scotch. This definition currently available. includes other stages in the industry: The latest figures available from the blending, bottling, packaging, and industry, (Verso 2010), show that the warehousing, as well as the initial industry directly employs over 10,000 distillation. people and generates a gross income of over £464 million contributing a Gross The Size of the Sector and the Added value (GAV) of £2.7 billion to the Key Players Scottish economy. Furthermore it has Having evolved from the cottage industry been estimated that the industry of the late 1800s through an ongoing supports in excess of 34,000 jobs in series of mergers and take-overs, the other sectors. Whilst employment within Scotch Whisky industry displays some the industry in Scotland has declined by notable characteristics. Not least of 3% over the last decade there has been these are the dominance of a relatively a decrease in employment within the few players, the vitality of the medium industry outwith Scotland of 12%. The range of producers with their own industry within Scotland has witnessed integrated production and marketing an increase in employment in sales and operations, and the survival of a marketing, engineering, visitor centres competitive fringe – able to purchase and by-products with a decline in Scotch Whisky direct from the distilleries distilleries, blending and bottling. Latest and blend and bottle their product to figures show exports growing by 22% in their own recipe. A web of intricate the first half of 2011 to £1.8bn with the interdependencies between different USA still the leading market, followed stages of production and different by France. Emerging economies are players underpins the healthy state of fuelling much of the expansion in competition in the industry. demand in recent years with South Korea, Brazil, Central and Latin America, A measure of this concentration ten and Asia all seeing strong growth of years ago was that three major players over 33% per year and by more than then – Diageo, Allied-Domecq and half in several cases. Pernod-Ricord – controlled about 80 per cent of all Scotch Whisky production, The increase in employment within with the second level of companies – visitor centres signifies the close links including Highland Distillers, between the whisky industry and tourism Whyte & Mackay, William Grant and sectors. There are now 52 whisky Glenmorangie – contributing a further 10 centres and distilleries which are open per cent. While Allied-Domecq withdrew, to the public and it was estimated that Diageo now accounts for about 34%, they attracted over 1.3 million visitors in Pernod-Ricord lies in second place, and 2010 with a spend of over £26 million the largest independent, William Grant, (4-consulting 2011). The centres employ produces 10.4% of total Scotch output. directly 460 people with an estimated The pre-eminent position of the big two indirect employment count of a further suggests an industry under a potential 180. Additionally it is argued that the

pirs_20112.indd 5 10/27/2011 11:19:08 AM distilleries with visitor centres act as a spirits have also moved to be bottled ‘cluster’ for other sectors notably sport and produced in Scotland. Malibu (made and recreational leading to further from coconuts), London’s Gordon Gin, employment in term of, for example, many vodkas and other white spirits are accommodation. therefore made in Scotland – a bottling Whilst the imagery used to promote glen cluster has been created to the sales are primarily in terms of the benefit of the MNEs, the UK Chancellor Highlands and Islands of Scotland and to an extent the Scottish economy. (Burnett and Danson, 2004), the majority of the employment is within the urban areas of Scotland, with Strathclyde accounting for over 50% of direct employment in the industry. In contrast the Highland region accounts for approximately 5%. However, given the fragile nature of the Highland community a small number of jobs within a distillery constitutes a significant amount.

Isle of Eigg – now owned by the community and potential location for new community- managed malt distillery.

In concluding our initial report a decade ago, we speculated on various developments challenging the Scotch Whisky industry. One issue we identified was that both the UK Exchequer and the MNE duopoly gained very large taxes / Morar in ‘Rough Country’ in West Highlands, duties and profits respectively from this typical of areas where whisky traditionally domination. Scotland, in a UK with a produced in former times. significant degree of devolved powers but excluding fiscal responsibilities, The fairly rapid transmission of could gain markedly from a move to fluctuations in demand to current re-open and re-energise the traditional production are a characteristic of the ‘craft-based’ distilleries of the Highlands Scotch Whisky industry. This is & Islands at the expense of the mass surprising given the long lead-time grain production units in the Lowlands. between the initial distilling and the final For an independent Scotland, a balance sale; this suggests that optimistic market between the current cash cow and the forecasts, past overproduction and latter strategy would likely offer a better excess capacity are significant factors in future, improving backward linkages into this reaction also. the local and regional economies of the nation. The concentration of production in the hands of two multi-national and multi- To enter into a discourse into such product enterprises, coupled with the matters we strongly recommend you to legal requirement to distil Scotch in review the arguments of product quality Scotland, means that with massive by visiting any bar in the world and outputs to be bottled here their other asking the staff about the whiskies

pirs_20112.indd 6 10/27/2011 11:19:08 AM available. Deepening the relationship Regional Development organized a between product, place and consumer Summer Course, with the theme will not come from the large MNEs, but Regional and Urban Economics, Theory, pressure from you can but help. Analysis and Operational Models, that Slàinte! was held in Terceira from the 13th–21st of June 2011, Azores, Portugal. References The goal of the Summer Course was to provide PhD-students and young Burnett, K. and Danson, M. (2004) ‘Adding or subtracting value? Constructions of rurality researchers with: and Scottish quality food promotion’, • Advanced training in regional and International Journal of Entrepreneurial urban economics, Behaviour Research, 10(6), 384–403. • An opportunity to present and discuss Danson, M. and Whittam, G. (2001) ‘Power their research, and the spirit of clustering’, European • Improved skills and knowledge to Planning Studies, 9 (8), 949–963. Danson, M. and Whittam, G. (2001) advance their careers as researchers. Appendix 27, The Drinks Industry in The summer course took place along Scotland, First Report, HC 324, http://www. ten highly focused and intense days of parliament.the-stationery-office.co.uk/pa/ advanced training, student presentations cm200102/cmselect/cmscotaf/324/ and discussion, and discussion of career 324ap05.htm strategies. It also included a study visit Danson, M. and Whittam, G. (2000) Appendix 1, Memorandum from Professor to another island thus completing the Mike Danson and Geoff Whittam, unique experience of the summer University of Paisley, Select Committee on course! Scottish Affairs, http://www.publications. The summer course was focused on the parliament.uk/pa/cm200001/cmselect/ issue Regional and Urban Economics, cmscotaf/114/ap/11402.htm Theory, Analysis and Operational Roper, S., Love, J., Cooke, P. and Clifton, N. (2006) The Scottish Innovation System: Models, using a format of combined Actors, Roles and Actions, http://www. lectures and hands on training provided scotland.gov.uk/Publications/2006/01/ by top-level experts. Participants were 18151934/7 selected by the scientific committee http://www.scotch-whisky.org.uk/swa/files/ primarily taking into account their EconomicImpactReportMay2010.pdf research experience in one or more of the topics of the summer course and their motivations for participation in the Summer Course (extended abstract) in terms of career aspirations. There were  1HZVDQG5HFHQW(YHQWV 40 applicants and a final selection of 21 students from 10 countries. The  56$,VXPPHUVFKRRO lecturers consisted of well-known researchers from all over the world, such as Henk Folmer, Mark Partridge, Tomaz Dentinho, Alessandra Faggian, Ping Wang, University of Eduardo Haddad and Jose Pedro the Azores Pontes. The Regional Science Association International and the Portuguese Association for

pirs_20112.indd 7 10/27/2011 11:19:08 AM imposed a lot of extra work on the organisation team to make good financial resources and avoid any important shortages. In our mind, logistic and financial issues were always conditioned to our main objective: the academic excellence of the conference. Top keynote speakers came to Barcelona: Richard Florida, Diego Puga, Maryanne Feldman, David Tomaz Dentinho (left) with the course Audretsch and Piet Rietveld. We also delegates had a plenary lecture with the Commissioner of Regional policy of the European Commission, Dr Johannes The evaluation of the summer school Hahn, who was accompanied by indicated that the students liked the Joaquim Oliveira-Martins (OECD) and organization of the course, the diverse Luis Espadas (Spanish Ministry of subjects, the quality of the lectures Economy and Finance), giving an and the discussion of their own draft unforgettable discussion on the future of papers in the session “How to publish the European Structural Funds. The a paper”. conference also enjoyed the presence of The RSAI looks forward to helping the Major of Barcelona, the Regional promote more summer schools in the minister of Finance, the Vice-president future – watch this space! of Spain, and the president of the European Investment Bank.  (56$

Jordi Suriñach and Vincente Royuela, University of Barcelona

High attendance rates during the plenary sessions

The highest academic quality was The 51st ERSA conference held in achieved during every minute of the Barcelona, Spain, 30st August – 3rd conference. It was thanks to all September achieved all its goals: around delegates who sent their best papers 1000 registered participants, from 50 and made impressive presentations of countries, 220 parallel sessions, 50 their work. In addition, this year the special sessions, good food, a nice ERSA conference highlighted in the atmosphere and even a football match. program, and at the venue, some ‘Very This successful event took place in a Special Sessions’, with a fantastic panel time of great financial restrictions, which of high level academics. Finally we also

pirs_20112.indd 8 10/27/2011 11:19:09 AM welcomed the meeting of the Urban which allowed the growth of total assets Economics Association, which was (Figure 2). Since 2009, receipts have for the first time organised in Europe, grown less than payments creating a and a high level session labelled The negative margin that reached £11000 in New Urban World, which ran over 2011; therefore total assets also one full day with a superb panel of decreased. speakers.

RSAI Current Accounts 2004-2011 in £ 40000 30000 20000 10000 0 -10000 -20000 2002 2004 2006 2008 2010 2012

Current Recepts Current Payments Current Margin Piet Rietveld during his EIB-ERSA prize speech Fig. 1. RSAI Current Accounts from 2004–2011

The social program of the conference included a reception at the Royal Palace and the Gala Dinner at the National RSAI Total Assets from 2004-2011 in £ Museum of Arts of Catalonia, the best 200000 location to end, according to many delegates who approached us: all in all, 150000 a terrific end to the conference. 100000 Finally, if you want to remember the conference of Barcelona, we invite you 50000 to see the videos of all plenary sessions 0 at the conference website: http://www. 2002 2004 2006 2008 2010 2012 ersa.org/ersa-congress/: more than 15 hours of the best regional science and Total Assets urban economics! Fig. 2. RSAI Total Assets from 2004–2011

 56$,KLVWRULFDODFFRXQWV Figure 3 shows the evolution of the structure of RSAI Current Payments. In 2010 our two journals RSPP and Tomaz Ponce Dentinho, RSAI Executive PIRS represented more than 55% of the Director total expenditure; Accounts, Newsletter, RSAI historical accounts from 2004– Web and Management 36%; and 2011 (Figure 1) show that Receipts and support to new sections 9%. In 2011 Payments grew in nominal terms RSPP and PIRS will represent more between 2004 and 2009 when they than 57% of the total expenditure; reached around £35000 (UK) per year. Accounts, Newsletter, Web and During these years we can note that Management 24%; and support to new receipts grew faster than payments, sections 20%.

pirs_20112.indd 9 10/27/2011 11:19:09 AM Evolution of Current Payments I was first introduced to Regional 40000 Science by a colleague of mine, a Ph.D. Supports student at Princeton, who showed me 30000 Walter Isard’s ‘Green Book’. The book RSPP opened my eyes at the time when I was 20000 struggling with searching for suitable Pounds 10000 PIRS methods for solving urban and regional problems. Luckily I met Professor 0 Edwin Mills who taught me economic 2008 2009 2010 2011 principles, which I integrated with regional science methods. This was the Fig. 3. Structure of RSAI Current Payments beginning of my wonderful career as a planner, engineer and regional scientist, searching for strategies for solving The RSAI council hopes that as the spatial settlement issues. membership increases further the revenues will increase as well. Also, I am very proud of the career I have the more successful the journals the chosen following in my father’s footstep greater we expect the revenue stream as a university professor, having chosen to be. urban planning and regional science as my main focus of discipline. I must have done something good since my son also has chosen to be an academic. Equipped with socio-economic theories based on engineering education and regional science methodologies, I have  0HHWWKHIHOORZV7VFKDQJKR had a wonderful career. -RKQ.LP In addition to publishing 8 books, 140 journal articles, book chapters, and professional articles in the areas of Endowed Professor of Urban and transportation planning, urban and Regional Systems at University of Illinois regional development, global at Urbana-Champaign (UIUC) urbanization, geographic information I began my systems, intelligent transportation education in systems and location-based services, my native I was fortunate to gain experience South in solving real-world problems. In Korea in 1979–80, I served as the project director Architectural of the National Comprehensive Engineering, Transportation Study of Korea, studied sponsored by the World Bank. I also Urban directed the Optimal Transport Sector Design at Development Project in Indonesia in Meistershule 1990–1991. I have been an advisor to für the ArRiyadh Development Authority Architekture, (ADA) in Saudi Arabia since 1994. I Akademie have been a Fulbright Scholar to der Bildenden Künste in Vienna, Austria, Germany (1986) and Senior Fulbright and completed graduate study in Scholar to Korea (1994–1995). planning at Princeton University with a Furthermore, I have served as Ph.D. degree in 1976. International Conference Coordinator of

pirs_20112.indd 10 10/27/2011 11:19:09 AM the Regional Science Association separated from other urban and regional (1988–1991); co-Editor of The Annals of activities. The majority of my research Regional Science for the period of on transportation has to do with 1994–2005; a member of Council, searching for fundamental causes and Regional Science Association solutions for transportation problems International (2008–2010); and served stemming from land use, socio-economic as President of the Western Regional factors, and the modern lifestyles of Science Association (2008–09). urban residents. My research contributions are intended to advance both planning scholarship International Planning and practice surrounding issues of According to the United Nations, the growth and change. As a regional world will need to build new cities and/or scientist, I have searched for theories expand existing cities to accommodate and methods that provide a framework about 1.6 billion additional urban for developing and evaluating realistic residents by 2030. This trend is the strategies for mitigating problems result of many complex socio-economic caused by human settlements, and political factors, and poses environmental degradation and unprecedented challenges to the economic growth in urban areas. As functioning of cities and the quality of a planner, I have been a strong life for urban dwellers. The resources advocate for the practical side of the needed for accommodating new urban planning profession. I have consistently dwellers will be enormous. Can we plan embraced opportunities to put my sustainable future cities? With this expertise in the field of urban planning question in mind, I have collaborated into practice. My current research focus with scholars from various parts of can be grouped in the following three the world in implementing research topics: projects investigating population and urban growth and change in Technologies and Cities Saudi Arabia, Indonesia, China, Korea, Sweden, Kenya, Poland and New technologies alter the physical the USA. possibilities of human settlement, as well as the economic, cultural, and political The basic question I address in my relations of everyday urban life. A great research has been “What would deal of my current research has focused be the major economic, social, and on how new information technologies environmental implications, particularly in (IT)–the Internet, personal computers, an urban context, in the event of specific personal digital assistants, and wireless changes in technology and lifestyle?” I communications–are transforming the am continually searching for improved world as we know it and how that frameworks to apply to the formulation of transformation really takes shape in scenarios regarding sustainable urban human settlements, particularly in urban and regional development. At the same areas. time, it is my view that the potential to increase the utility of living in urban areas while simultaneously facilitating Transportation, Land Use and environmental sustainability depends not Infrastructure Protection only on planning, economic instruments, Early in my career as an urban planner and new technologies, but also upon and a regional scientist, I became education and the cooperation of convinced that the analysis of citizens through changes in their transportation issues cannot be lifestyles.

pirs_20112.indd 11 10/27/2011 11:19:09 AM it involves the use of aromatic plants  5HJLRQDOVSHFLDOL]DWLRQDQG and herbs such as coriander, cloves, WKHGULQNVLQGXVWU\  7KH angelica root, licorice, mint, wintergreen, HVVHQFHRI*UHHNVSLULWRX]R fennel, hazelnut and even cinnamon and DOFKHP\DQGWKHMR\RIOLIHLQ lime blossom (greekproducts.com, DQLVODQGHFRQRP\ 2011).

Dimitris Kavroudakis (University of the Aegean, Greece) and Dimitris Ballas (University of Sheffield, UK)

Fig. 1. Painting from café Ermis in Mytilini, Lesvos (source: Barrett, 1998a)

“When you have no money, come and Ouzo has earned its place as a food drink. And when you have come and accompaniment, much like beer and pay; But when you have and don’t pay, wine, and it is the perfect drink to don’t come and drink.” enhance the flavours of many Greek (Michalis Viglatzis’s coffee shop Aghiasos, dishes, particularly seafood and salted Lesvos; quote taken from Greek islands, or smoked delicacies. Its alcohol content 2011) ranges from about 37% to 46% – so it is Ouzo is the quintessential Greek drink not as strong as it is perceived – and it and a symbol of Greek culture and is clear in colour. The ouzo effect, attitude towards life. Its status as the contrary to common belief that the national drink of Greece is validated by drinker blanks out and then thinks he the European Union, which recognises has been abducted by aliens (see Matt ouzo as a trademark label with a Barrett’s experience, which did not put protected designation of origin. The story him off a lifelong appreciation of good of ouzo – even the origins of its name ouzo, Barrett, 1998c), is that it turns a – is steeped in legend; a tradition of cloudy white when water or ice is added. anise alcoholic beverages that dates The reason is that anethole, one of the back to Babylonia and ancient ingredients of anise, is not soluble in Mediterranean history, creative medieval water and therefore chemically monks in Mount Athos, the appreciative separates from anise creating an remarks of an Ottoman consulate emulsion whose droplets scatter the light physician, the return of the Greek (Carteau et al., 2008). diaspora to a liberated country in the According to some sources, an 19th century and secret family recipes estimated 30 million bottles are are all parts of the puzzle (Vekris, 2008; consumed in Greece every year and an Tonutti and Liddle, 2010; Tsachaki et al., additional 10 million are exported 2010). The production of ouzo is not just (KETA-BA, 2009). Naturally, ouzo is a the mixture of anise, water and alcohol; very important product in a number of

pirs_20112.indd 12 10/27/2011 11:19:10 AM Fig. 2. The location of Lesvos Island

local economies across Greece (for an renowned for its rich and diverse on-line map see Vekris, 2008) and it is architectural and cultural heritage, is a one of the key main products of the regional administrative and economic Northern Aegean island region, together centre and also the home of the main with fish and sea food, mastiha, wine, campus of the University of the Aegean. olive oil and cheese (Kalogridis, 2007; Vakoufaris, et al., 2007). It is especially important for the island of Lesvos (see Figure 2) which produces most of the total ouzo production in Greece; it is therefore not surprising that the island is often described as the homeland of ouzo and as the ouzo capital of the world, both in terms of the quantity produced as well as quality (KETA-BA, 2009; Taylor, 2004; Barrett, 1998a). This article provides a brief overview of the local economy of Lesvos, the ouzo capital of the world, and also maps the Fig. 3. Mytilini, the capital of the island industry of ouzo on the island. (source: http://el.wikipedia.org/) The island economy of Lesvos Lesvos is the third largest island in the Agriculture has traditionally been the key Aegean Sea (after Crete and Evia) with sector in the island’s economy with olive a total area of 1,632 square kilometres cultivation being particularly important and a population of about 90,000. since the 19th century. But, over the Around 40% live in the capital Mytilini recent decades there has been a (Athanasiadou, 2009; Kizos and considerable reduction in the number of Koulouri, 2006). Mytilini, which is built farms (Kizos et al., 2009). It has often amphitheatrically upon seven hills and is been argued that the distance from the

pirs_20112.indd 13 10/27/2011 11:19:10 AM Greek mainland had been a major farms recorded on the island) covering obstacle in its economic development, 45% (38,951.8 ha) of the total Utilized contributing to the island lagging behind Agricultural Area (UAA) and roughly the Greek average in the period 30% of the total area of the island, and between 1950–1970 (Chamber of 3,723 farms with grazing lands (23% of Lesvos, 2011). Nevertheless, this has total farms) covering 49.5% of the UAA, been changing since the 1970s, due to grazed by roughly 300,000 sheep and the modernisation of ferryboat and air 44,000 goats (along with 7,000 cows)”. It transport connections and the massive is also interesting to note that estimates extension and enhancement of such of the number of olive trees in the island transport links between Mytilini and suggest that there are at least 8 million mainland Greece (especially Athens and olive trees, whereas some sources put Thessaloniki). In addition, the economy this figure as high as 11 million (Kizos of the island has been diversifying with et al., 2009). the importance of the service sector (and especially tourism) growing The ouzo industry in Lesvos massively. It is interesting to note that in As seen in the previous section, a relatively recent comparative study the economy of Lesvos has been between British and Greek islands, diversifying over the past decades, with Lesvos was placed in a cluster of services and tourism in particular islands labelled as “accessible, growing in significance, but with successful and diversified” (Armstrong agriculture also remaining very et al., 2006). important. In this section we explore the The island of Lesvos has become a very impact and the geography of the ouzo popular tourism destination. There is an industry on the island. estimated number of over 10,000 As noted in the introduction, Lesvos is tourists arriving by direct charter flights often described as the ouzo capital of every year over the last 5 years from the world. It has long been argued that across Europe (Manavis, 2011). This is this may be due, to a great extent, to the in addition to domestic tourism and suitable climate of the island which is international tourists arriving by ideal for the production of anise, a key scheduled ferry or air via mainland ingredient of ouzo (Lesvos Chamber, Greece. Nevertheless, the island is 2011). In addition to the production of described in a popular travel website as high quality anise, the island boasts high “virtually unaffected by the mass tourism quality grapes and aromatic plants, that has turned other islands into which may have contributed to the amusement parks” and as “the perfect development of a work ethic and long place to visit for people who want to tradition of constantly thriving to improve experience the real Greece” (Barrett, the quality of the ouzo produced on the 1998b). island (Lesvos Chamber, 2011). Today It is also noteworthy that, despite there are a considerable number of ouzo the decline in the number of farms producers in Lesvos Island continuing a mentioned above, agriculture remains a tradition dating back to the middle of the very important sector of the economy, 19th century, when ouzo began to be in terms of the jobs and incomes it traded extensively in the Mediterranean. provides, especially in the more rural We have collected information on these areas of the island (Kizos et al., 2009). producers and created the map shown As Kizos et al. (2009: 201) point out, the in Figure 4. It is interesting to note that 2001 agricultural census “recorded one of these producers has recently 14,375 olive farms (95% of the total been ranked as one of the largest 10

pirs_20112.indd 14 10/27/2011 11:19:10 AM Fig. 4. Ouzo producers in Lesvos

Greek businesses (Lesvos Chamber, Conclusions 2011). This article has given a brief overview of The Barbayiannis Museum of Ouzo in the ouzo industry with a focus on a Lesvos (2011) is a testament to the Greek island for which the production of prominence of ouzo in the culture and ouzo is particularly important. It can be economy of the island and their passion argued that there is huge potential for for the production of the “finest Greek this industry to grow further and to liquor beverage” as they put it. This become an even more important source museum is located in the town of of revenue for the island of Lesvos, Plomari and is run by the Ouzo especially with better marketing of the Barbayiannis Liquor Distillery (which product in Greece and across the world. produces 400 to 500 thousand litres of It has long been argued that the Greek ouzo annually, personal communication). alcoholic and soft drinks industries may Not surprisingly, ouzo is not only an be lagging behind in branding and important export product of Lesvos, but marketing compared to Western it also hugely popular with locals. It can multinational companies (e.g. see also be argued that the quality of the Theodorakioglou and Wright, 1998) and ouzo, as well as the associated lifestyle therefore there may be a lot of room for and type of cafes and tavernas may be improvement. In addition to the potential one of the key tourist attractions of the for increased demand for this product in island. Figure 5 shows the estimated Greece and worldwide, there are very spatial distribution of establishments interesting cultural, lifestyle and local serving ouzo together with various meze food industry dimensions that are worth dishes (Greek snack dishes) and other exploring when looking at the future of food. the ouzo industry.

pirs_20112.indd 15 10/27/2011 11:19:11 AM Fig. 5. Spatial distribution of restaurants and cafes serving ouzo in Lesvos

Gazing at the infinite blue of the Aegean University of Athens, Athens 2009 (in Sea enhances the experience but you Greek). can appreciate ouzo anywhere. Just sip Barbayannis Ouzo Museum (2011), The slowly, enjoy your food and share with Museum, Available from: http://www. friends. Geia mas! barbayanni-ouzo.com/ouzo-museum- lesvos.html, Accessed 11 October 2011 Acknowledgments: We are very grateful Barrett, M (1998a), Plomari, Lesvos, Ouzo to Vicky Yiagopoulou who researched Capital of the World, Available from: http:// and found a lot of the material upon www.lesvos.com/plomari.html, Accessed which this article is based and who also 11 October 2011 provided very useful comments. Barrett, M (1998), Lesvos: more than just another Greek island, Available from: http://www.lesvos.com/index.html, References: Accessed 11 October 2011 Barrett, M (1998), Lesvos: A Guide to Armstrong, H, Ballas, D, Staines, A (2006), A Ouzo, Available from: http://www.lesvos. Comparative Analysis of the Economic com/ouzo.html, Accessed 11 October Performance of Greek and UK Small 2011 Islands, paper presented at the 36th Carteau, D., Bassani, D. & Pianet, I., 2008. Regional Science Association International The “Ouzo effect”: Following the (British and Irish Section) conference, spontaneous emulsification of trans- Jersey, Channel Islands, 16–18 August anethole in water by NMR. Comptes 2006 rendus-Chimie, 11(4–5), p.493–498. Athanasiadou, K M (2009), Socio-economic Christoph, N. & Bauer-Christoph, C., 2007. indicators of quality of life of families in 10 Flavour of Spirit Drinks: Raw Materials, Greek rural areas: the case of Mytilini Fermentation, Distillation, and Ageing. island, Dissertation project, Department of Flavours and fragrances: chemistry, Home Economics and Ecology, Harokopio bioprocessing and sustainability, p.219.

pirs_20112.indd 16 10/27/2011 11:19:11 AM Clauson, G., 1972. An etymological Zabetakis, I (2010), Development of a dictionary of pre-thirteenth-century Turkish, suitable lexicon for sensory studies of the Clarendon Press. anise-flavoured spirits ouzo and tsipouro, Greek Islands (2011), Ouzo, Available from: Flavour Fragr. J., 25, pp. 468–474 http://www.greek-islands.us/greek-food/ Vakoufaris, H, Spilanis, I, Kizos, T (2007), ouzo, Accessed 11 October 2011 Collective action in the Greek agrifood Greekproducts.com (2011), About ouzo, sector: evidence from the North Aegean Available from: http://greekproducts.com/ region, British Food Journal, Vol. 109, greekproducts/ouzo/index.html, Accessed pp.777–791 11 October 2011 Vekris, C (2008), tsou.greece: a web-site Greek Statistical Agency, 2001 census of dedicated to ouzo and its producers, Population. Available from: http://www. available from: http://tsou.gr/documents/40. statistics.gr, Accessed 2 October 2011 html, Accessed 11 October 2011 KETA-BA (2009), Ouzo the drink of Greece, Lesvos the homeland of Ouzo, available from: http://keta-ba.gr/files/ouzo.pdf, Accessed 11 October 2011 (in Greek and English) Kalogridis, T (2007), North Aegean  56$,SUL]HZLQQHU Exportable Goods, KETA-BA, available from: http://keta-ba.gr/fylladia/eksagogima. pdf, (in Greek, German and English) Kizos, T, Dalaka, A, Petanidou, T (2009), Farmers’ attitudes and landscape change: evidence from the abandonment of terraced cultivations on Lesvos, Greece, Agriculture and Human Values, vol. 27, pp. 199–212 Kizos, T, Koulouri, M (2006), Agricultural landscape dynamics in the Mediterranean: Lesvos (Greece) case study using evidence from the last three centuries, Environmental Science & Policy, Vol 9, pp. 330–342 Lesvos Chamber, 2011. The Economy of David Boyce (left) presents the latest fellow Lesvos Available from: http://en.lesvos- award to Gordon Mulligan, Professor chamber.com [Accessed October 6, 2011]. Emeretus, University of Arizona. Manavis, N (2011), Tourismos ora miden, Congratulations Gordon! available from: http://www.emprosnet.gr/ Economy/?EntityID=c640bfbf-98ed-40a6- afa6-9261657aaf36 (in Greek) [Accessed October 11, 2011] Taylor, L (2004), Ouzo, Trade and Culture,  &HQWUHVRI5HJLRQDO6FLHQFH TED Case Studies, no. 723, http://www1. 7KH5HJLRQDO4XDQWLWDWLYH american.edu/TED/ouzo.htm Theodorakioglou, F,Wright L T (1998), $QDO\VLV $45,5($ IURP Marketing strategies of Greek and foreign WKH8QLYHUVLW\RI%DUFHORQD firms compared, Qualitative Market Research: An International Journal, vol. 1 pp. 145–155 The Regional Quantitative Analysis Tonuti, I, Liddle, P (2010), Aromatic plants in Centre (AQR-IREA), at the University of alcoholic beverages. A review. Flavour Barcelona, is located in the Department Fragr. J., 25, pp. 341–350 of Econometrics, Statistics and Spanish Tsachaki, M, Arnaoutopoulou, A P, Economy at the University of Barcelona Margomenou, L, Roubedakis, S C, (Spain). The main research activity of

pirs_20112.indd 17 10/27/2011 11:19:11 AM the group is focused in Applied Royuela were the President and Economics, with a special emphasis on Coordinator respectively of the Local the analysis of urban and regional Organizing Committee of the 51st ERSA issues. Conference in Barcelona. In addition, the group organises annually a Workshop The Regional Quantitative Analysis on Regional and Urban Economics. The Centre (AQR), is directed by Manuel 2011 edition is focused on Inequality Artís, and has two coordinators, Enrique and Regional Growth and Cohesion, and López-Bazo for research topics, and hosts keynote speakers José Enrique Jordi Suriñach for knowledge transfer Garcilazo and Andrés Rodriguez-Pose. issues. Jordi Suriñach is also president Finally, every term two seminar-series of the Catalan Association of Regional for senior and junior researchers is Science and director of the Research developed. In 2010 and 2011 a list of Institute of Applied Economics (IREA), a top academics has presented in centre integrated with AQR. The group Barcelona, such as Mark Partridge, has more than forty Spanish and Giuseppe Arbia, Alessandra Faggian, international researchers and twenty Frank Van Oort and M. Hashem years of experience, and has been Pesaran among others. recognized by the Generalitat de Catalunya (the regional government) as a group of quality and excellence in economic research. In terms of publications, according to RePEc, AQR-IREA is in the top 5% in Spain and top 10% in Europe of all research institutions among all fields of Economics, and 7 of their researchers are among the top 25% economists in Spain. According to Florax and Plane (PRS, 2004) Barcelona was first ranked in Regional Science during the 1995– The AQR-IREA research group 2004 decade. AQR-IREA members were behind that position. Together with the board of directors, it is worth also In addition, AQR-IREA works with public mentioning other researchers integrated institutions and private enterprises in AQR-IREA such as Josep Lluís developing projects within the scope Carrión-i-Silvestre, Rosina Moreno, Raul of its research interest. It leads the Ramos, Peter Claeys and Vicente SEARCH project within the 7th Royuela. This academic excellence has Framework Programme, titled “The been achieved working in a wide list of Sharing KnowledgE Assets: topics. We can mention those of InteRregionally Cohesive economic growth and convergence, NeigHborhoods” (FP7-SSH-2010-2.2- externalities, human capital, labour 1266834), with a total budget over 2.5 market, knowledge economy, firm million . This project aims to improve location, firm demography and survival, the understanding of institutional labour migration, macroeconomic framework conditions of the ENP forecast, conjuncture analysis, and countries, their economic interactions development of synthetic and strategic with the EU in terms of people, capital, indicators. In 2009 the group organised trade, knowledge, and innovation, in the III world Spatial Econometrics and in order to improve future definition and 2011 Jordi Suriñach and Vicente implementation of European

pirs_20112.indd 18 10/27/2011 11:19:11 AM Neighbouring Policies taking into international contacts of AQR-IREA account that “one size fits all” policy derived from its participation in the recommendations will not be appropriate different networks where we are due to the bilateral nature of the involved, which has allowed them to join EU-ENP countries agreements. high standard institutions all over Furthermore, AQR-IREA participates Europe. AQR-IREA also hosts visiting as a partner in the ESPON 2013 researchers for short-term visits and programme, in the project titled KIT, even for long-term stays through, for “Knowledge, Innovation and Territory”. instance, the Marie Curie Actions of the AQR tasks are devoted to the analysis European Union, or other mobility of the sectoral dimension of innovation programs financed by the Catalan and at the national level, the analysis of the Spanish Governments. In addition, the knowledge spread all over the economy group recruits widely in the job market (using data on inventors’ mobility) and from a range of international groups. the impact the inventors’ mobility exerts For more information, please contact on the regional innovation capacity. [email protected] or visit the AQR-IREA AQR-IREA has been involved in the 6th website at http://www.pcb.ub.edu/aqr/ and 7th Framework Programmes for en/. You can also follow the research years. The group leaded the “Intangible group on Facebook (http://www. Assets and Regional Economic Growth” facebook.com/Regional.Quantitative. project (www.iareg.org) and is an active Analysis.Group) and Academia member of the “European Forecasting (http://barcelona.academia.edu/Regional Network” (www.efn.eui.eu). Also, AQR- QuantitativeAnalysisResearchGroup). IREA leaded the ESF COST Action titled “Small and Medium Enterprises, Economic Development and Regional Convergence in Europe”. AQR-IREA has participated in 8 projects and Reports for the DG ECFIN in the last 10 years and advises the European Parliament on  5HJLRQDOVSHFLDOL]DWLRQDQG Economic and Monetary issues. Finally WKHGULQNVLQGXVWU\  6SDWLDO the research group is involved in a 'LVWULEXWLRQDQG$JJORPHUDWLRQ number of research projects granted by (IIHFWVLQWKH-DSDQHVH)RRG the Spanish Ministry of Science and DQG'ULQNV,QGXVWU\ Education. Between 2004 and 2011, 9 PhD dissertations have been defended under Suminori Tokunaga, University of the supervision of researchers within the Tsukuba, Graduate School of Life and group. These dissertations have been Environmental Sciences elaborated in the context of the PhD From the Programme in Economics of the agglomeration

University of Barcelona, which has index (γEG) of received a Quality mention from the Ellison and Glaeser Spanish Ministry of Education. Usually a (1997), we found number of research fellowships are that there are 20 made available to graduates wishing to Japanese food work with AQR-IREA research Group as sub-industries, they develop their doctoral studies at the which are highly University of Barcelona. Those Ph. D. agglomerated: see students have benefited from the Figure 1. Since the

pirs_20112.indd 19 10/27/2011 11:19:12 AM location of the entire food industry is contours. When we observe these determined by the availability of relationships by sub-industries, agar- agricultural resources, we observe agar has an increasing trend towards that agar-agar, wine and tea are agglomeration from 1985 to 1995, but a concentrated in the areas where firms decreasing trend in 2000. can have easy access to raw materials and natural advantage, and ‘sugar’ is For sugar, canned seafood and located close to the harbour. These seaweed, and glucose, starch syrup and industries are strongly agglomerated high-fructose corn syrup, there has been compared to other manufacturers. The a downward trend. Miso, and soy sauce pattern of agglomeration from 1985 to (shoyu), and manufactured ice seem to 2000 shows that wine displays show stable trends over the last 20 decreasing agglomeration after 1985. years. In the wine industry, the plants But, surprisingly, many highly- concentrated in Yamanashi Prefecture agglomerated sub-industries retained have seen decreased agglomeration their spatial distribution in spite of a from 1985 to 2000, but an increase in general trend towards dispersal. In other shipment. In Japan, demand for wine words, agglomeration remains important has been increasing rapidly on the in the Japanese food industry. This background of a wine boom and hence agglomeration index and shipment value the development of some new regional (Y), on the whole, flattened from 1985 to sources of wine, such as the Hokkaido 2000, regardless of high and low and Nagano Prefecture.

gEG 1985 1990 1995 2000 0.6

0.5

0.4

0.3

0.2

0.1

0.0 Tea -agar Wine Starch γ Aga blendedliquors Elemental feeds Rice wine "sake" Manufactured ice Processed seaweed Baked rice confections Sugar, except refined sugar Cannedseafood and seaweed Fermentedbean paste "miso" Glucose, starch and corn syrup Miscellaneous seafood products Miscellaneous livestock products Frozen seafood products(processed) Distilled, rectified and Frozen seafood products(unprocessed) Soy sauce "shoyu" and edibleamino acids Cannedand preserved fruit and vegetables Fig. 1. Agglomeration index for 20 Japanese food sub-industries (1985–2000). Note: agglomeration index of Ellison and Glaeser(1997), Source: Akune and Tokunaga (2005).

pirs_20112.indd 20 10/27/2011 11:19:12 AM Based on these findings, we estimated a nonhomotheticity model is the most flexible translog production function favorable. The results of the using a 4-digit sub-classification from nonhomotheticity model show that Japanese food industry panel data almost all estimated parameters are (1985–2000). The translog production significant at the 1% or 5% level, except

function is: for βKL. Furthermore, the sign conditions of the parameters are theoretically αα+++ α ln YKL=0 kl ln ln appropriate. 1 1 αβln MK+ ()ln 22+ β() ln L mkkll2 2 Since the individual parameters are not 1 readily interpretable, we have calculated + β ()ln MKL2 ++β ln ln 2 mmm kl the output elasticities of input, return to scale, and the agglomeration effect on ββkmln KMln ++ lm ln LMln 1 production. These results are shown δδln A + ()ln AK2 + γ ln aa2 aaka Table 2. First, we observe that output elasticities of raw materials are much ln ALAMA++γγlaln ln ma ln ln larger than the other two inputs and the The cost share equation is: elasticity of capital is low. Second, scale economy is over 1 in all cases except in αβ++∑ ln XA γ S = iijiAjj the linear homogeneity model and i αβ++ γ ∑∑iijiA∑∑ln XAj significant at the 1% level. Third, the iji i elasticity of agglomeration effects on where Y, K, L, E, M, A are output, production is estimated at 0.023, again capital, labor, materials, agglomeration significant at the 1% level. We also respectively. In the cost share equation, found that agglomeration in the Japanese food industry has a positive subscript i means input, and Si means effect on production using the 4-digit cost share of the ith input. X is the input vector, that is, capital, labor, and sub-classification data. That is to say, our influential findings are that in the materials. αi, βij, δa, δaa, γij are the parameters to be estimated. For Japanese food industry, with the estimation, we try to test the following existence of scale economies, cases: (1) impose no restriction, (2) productivity increases around 2% when plants agglomerate. homotheticity is imposed (∑jβij = 0), (3) homogeneity is imposed In other words, a positive circulation ⎛ ⎞ linkage is generated through increasing ∑∑∑αγ==θ, β00 , = . ⎝⎜ i ij iT ⎠⎟ returns to scale arising from plants i j i included in the same sub-industry We carry out the estimation using the choosing their location close to another iterative nonlinear seemingly unrelated in one particular area, and maintaining regression method (SUR), as suggested plant agglomeration generates more spin by Zellner (1962) taking serial correlation off production. Previous research about into account. productivity in the Japanese food Table 1 shows the three different model industry tends to be focused on specification estimation results. technical structure and changes, but we Monotonicity and convexity are satisfied suggest there is a need to include the for each estimated function. According concept of firms’ location behavior into to the results of the Wald test, the the productivity analysis.

pirs_20112.indd 21 10/27/2011 11:19:12 AM pirs_20112.indd 22

Table 1. Estimation of a flexible translog production function

Nonhomotheticity Homotheticity Homogeneity

Estimate S.E. t-stat. Estimate S.E. t-stat. Estimate S.E. t-stat.

α0 −0.673 0.980 −0.686 α0 −1.911 0.647 −2.956*** α0 −1.902 0.636 −2.989***

αK 0.077 0.048 1.591* αK 0.072 0.046 1.568* αK 0.105 0.045 2.332***

αL 0.170 0.064 2.658*** αL 0.246 0.049 4.990*** αL 0.265 0.051 5.216***

αM 0.791 0.097 8.159*** αM 0.933 0.043 21.805*** αM 0.935 0.043 21.810***

βKK 0.069 0.007 10.544*** βKK 0.075 0.006 12.889*** βKK 0.076 0.006 13.409***

βLL 0.103 0.005 19.296*** βLL 0.100 0.005 18.702*** βLL 0.099 0.006 17.424***

βMM 0.210 0.007 29.485*** βMM 0.201 0.006 35.100*** βMM 0.199 0.006 34.809***

βKL 0.004 0.005 0.939 βKL 0.003 0.004 0.634 βKL 0.001 0.004 0.155

βKM −0.068 0.005 −14.035*** βKM −0.072 0.004 −16.217*** βKM −0.074 0.004 −16.927***

βLM −0.123 0.004 −28.869*** βLM −0.123 0.004 −33.653*** βLM −0.123 0.004 −33.052***

δA −0.190 0.064 −2.953*** δA −0.121 0.058 −2.074** δA 0.076 0.021 3.546***

δAA 0.020 0.007 2.953*** δAA 0.020 0.007 2.819*** δAA 0.011 0.007 1.604*

γKA 0.010 0.003 4.021*** γKA 0.012 0.002 4.983*** γKA 0.009 0.002 3.928***

γLA −0.002 0.003 −0.937 γLA −0.003 0.003 −1.191 γLA −0.008 0.002 −3.205***

γMA 0.016 0.004 4.111*** γMA 0.009 0.004 2.671*** γMA −0.001 0.002 −0.566 Sample 216 Sample 216 Sample 216 Adj.R2 0.973 Adj.R2 0.974 Adj.R2 0.973 Note: * significant at 10% level, ** at 5% level, and *** at 1% level. Source: Kageyama, Tokunaga, and Akune (2007). 10/27/2011 11:19:12AM Table 2. Output elasticities, scale economies, and agglomeration effects (The case of γEG)

Estimate S.E. t-stat. Output elasticities Nonhomotheticity Capital 0.136 0.003 40.2*** Labor 0.255 0.007 36.9*** Materials 0.634 0.010 61.7*** Returns to scale 1.025 0.003 7.8*** Agglomeration effects 0.023 0.003 8.4*** Output elasticities Homotheticity Capital 0.134 0.004 36.2*** Labor 0.255 0.007 36.8*** Materials 0.637 0.010 66.2*** Returns to scale 1.026 0.003 8.4*** Agglomeration effects 0.027 0.003 10.7*** Output elasticities Homogeneity Capital 0.133 0.004 36.3*** Labor 0.254 0.007 35.7*** Materials 0.635 0.009 68.4*** Returns to scale 1.022 0.002 11.7*** Agglomeration effects 0.024 0.002 16.2***

Note: * significant at 10% level, ** at 5% level, and *** at 1% level. Source: Kageyama, Tokunaga, and Akune (2007).

References  )XWXUH(YHQWV Akune, Y. and Tokunaga, S., “An Empirical Analysis of the Industrial Agglomeration of Food Industry from 1980 to 2000 (in  7KHWK:RUOG&RQIHUHQFH Japanese)”, Studies in Regional Science, 2005, Vol.35 No.3, pp.625–635. Ellison,G.,Glaeser,E.,L., “Geographic Daniela L. Constantin, Academy of Concentration in U.S.Manufacturing Economic Studies of Bucharest Industries: A Dartboard Approach”, Journal The Regional of Political Economy,Vol.105, no5, 1997, Science Association pp.898–927. Kageyama, M., Tokunaga, S., “An Empirical International jointly Analysis of an Agglomeration of Food with the Romanian Industries Using an Index Proposed by Regional Science Devereux, Griffith, and Simpson: The Case Association and of Tokyo Metropolitan Area in Japan”, the Faculty of Studies in Regional Science, Vol. 35, No.2, Economics and 2005 pp.451–462. Business Kageyama, M., Tokunaga, S. and Akune, Y., Administration of the “Agglomeration Effect on Production in the West University of Japanese Food Industry (in Japanese)”, Timisoara is organizing the 9th World Studies in Regional Science, 2007, Vol.36 Congress of the RSAI on May 9–12, No.4, pp.909–920. 2012 in Timisoara, Romania. The main topic of the congress is “Changing Spatial Patterns in a

pirs_20112.indd 23 10/27/2011 11:19:12 AM Globalizing World”, which is expected to New frontiers in regional science: theory attract regional scientists from all over and methodology; Infrastructure, the world interested in debates on transports and communications; Land themes such as: Emerging challenges use, real estate and housing markets; for regional development; Vision and Location studies; Tourism, cultural management of sustainable cities; Rural industries and regional development; and local development; Accessibility, Urban governance and cities infrastructure and regional economic regeneration; Territorial marketing. growth; Social capital and regional These themes will be the subject of both development; Agglomeration, clusters, ordinary and special sessions. congestion and policy; Learning from The congress venue is the Regional failures in European regional policy; Business Centre in Timisoara, while the Crisis of public finances, Governance opening ceremony will be hosted by the and regional development; Globalization Timisoara Opera House; one of the and regional competitiveness; Cross- city’s architectural landmarks. border cooperation and development; Migration, cultural networks and regional Timisoara is a very attractive and development; Social segregation poverty prosperous city located in the Western and social policy; Spatial issues of the part of Romania and an outstanding labor market; Climate change and example of inter-ethnical and cross- sustainable regional development; cultural relationships between the Entrepreneurship, networks and Romanians, Hungarians, Germans, innovation; Innovation, knowledge Serbs, Ukrainian, Russian, Turks, etc. economy and regional development; who are living together in this area. With Geographical information systems and its marvelous baroque architecture, spatial analysis; Spatial econometrics; Timisoara is also known as “the Rose City” (May is the best month to enjoy it) and it is surrounded by lots of vineyards and exquisite natural parks. It is also internationally famous since it is this city that launched the December 1989 Romanian revolution. Timisoara has very good international transport connections by plane, car and train. Important deadline for the potential participants in the 2012 World Congress of the RSAI are:

• Abstract submission – November 21 • Notification of abstract acceptance – January 15 • Payment of the reduced registration fee January 31; • Paper submission – February 28.

More info can be found on the congress webpage, www.rsai2012.uvt.ro We are looking forward to welcoming you to Timisoara, Romania, in May 2012!

pirs_20112.indd 24 10/27/2011 11:19:12 AM  :56$$QQXDO0HHWLQJLQ Further meeting information is available +DZDLL on the WRSA website (www.wrsa.info). If you have questions about the meeting, The Western Regional Science feel free to email Rachel Franklin Association will hold its 51st Annual ([email protected]). Meeting in Kauai, Hawaii, February The WRSA’s unofficial motto is “The 8–11, 2012. Plan now to be part of what way academic life should be.” Come is sure to be a productive, enjoyable, find out what keeps WRSA meeting and very international conference. Along attendees coming back year after year! with a truly excellent location, the WRSA meeting will feature, as usual, its signature 45-minute paper slots, which include time for assigned discussant remarks and open discussion. WRSA  1H[WLVVXH meetings are a great venue for feedback on research! WRSA accepts submissions for the The theme of the next issue will be meeting program based on complete ‘Disasters and Regional Science’. papers, not abstracts. Papers may be in Please send any contributions directly to draft form at the time of submission so Eveline van Leeuwen e.s.van.leeuwen@ long as final versions are submitted by vu.nl or Graham Clarke G.P.Clarke@ the end of the year. To submit a paper, Leeds.ac.uk. simply email the file to wrsa@brown. edu. The extended deadline for paper submissions is November 14, 2011.

pirs_20112.indd 25 10/27/2011 11:19:13 AM