Index

accessibility, job vacancies 194, Augar, P. 288 197–207 Australia Acemoglu, D. 11, 13, 213 economic geography 161–2 Acha, V. 140 employment by industry sector Acs, Z.J. 52, 98, 139, 214 163–5, 185–6 Adams, P.D. 179 functional specialization 181–2 Adelaide 173, 178 growth determinants and forecasts Africa 307–8 178–81 agglomeration human capital 162, 171–2, 174, 175, economies 4, 51–2, 54–5, 282, 283, 176–7 321 income distribution, regional 177 human capital 2–7, 10 industry structure 162–70, 181–2 innovation in 65–6, 69–72 population and employment growth localized benefi ts 4 170–71 pecuniary externalities 70 rural unemployment 177 positive externalities 7–8 socioeconomic divides 162–3 Aghion, P. 11, 327 space economy 170, 189 agriculture, 105, 161, 162, 163, 164, technology industry 177–8 165, 166, 167, 174, 178, 179, 181, Australian Capital Territory 163, 171, 185, 328, 351, 356, 365 172 air travel 39 Australian Remoteness Classes Akerlof, G. 57 framework 164 Alfaro, L. 138, 220 Autant-Bernard, C. 15, 63, 76, 79, 81, Almeida, P. 73, 81, 82 89, 91 Altenburg, T. 138 Avci, G. 109 Amersfoort, van H. 109 Aw, B.Y. 321 Amin, A. 291, 294 Axtell, R. 143 Anastassova, L. 12 Andersson, Å.E. 8, 28, 29, 30, 31–2, babbling equilibrium 249 34, 41, 44, 46, 47, 49, 53, 301, 305 Balconi, M. 82 Andersson, M. 19, 194 Baldwin, R.E. 301 Anderstig, C. 42 Banerjee, A. 260 Angrist, J. 12, 13 banking sector 288, 295 Anselin, L. 76, 82 Baptista, R. 216, 282 ANZSIC 180, 181 Barba Navaretti, G. 139, 146 Arellano–Bond estimator 320, 322 Barrett, G. 100 Armington, C. 214 Barro, R.J. 159 Arrow, K.J. 2, 8, 10, 71, 235 Batten, D.F. 39 Arthur, W.B. 159 Baum, S. 161, 172, 173, 174, 175, 176, Asia 65, 307–8 178, 182, 183, 186, 187, 335 Audretsch, D. 52, 72, 79, 99, 126, 214, Baycan-Levent, T. 100, 101, 122, 123, 216, 291 125

369

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Bayes rule 238, 240 Carlton, D.W. 261 Beaverstock, J.V. 284 Carree, M.A. 99, 100 Beckmann, M.J. 260 Castellani, D. 321 Beer, A. 179, 182 Castells, M. 291 belief systems 236–7, 241–2 Central America benchmarking 281, 291 manufacturing sector 134, 135, 141, Berdowski, Z. 113 142, 143 Bernard, A.B. 321, 324, 328 Swedish export destination 307–8 Beugelsdijk, S. 216 Centre d’Etudes Prospectives et ‘Big Bang’ 288 d’Informations Internationales Billand, P. 15, 91 (CEPII) 307 Birkinshaw, J.M. 282, 283, 285 chain migration 105 Bjørnskov, C. 214, 219 Chaney, T. 324 Black, D. 6, 11 Charlot, S. 80 Blau, D.M. 197 Charlton, A. 220 Blomström, M. 137 Chatwin, R. 260 Boden, M. 34 Chesborough, H. 29 Bolton, R. 260 Cheshire, P. 3 Bottazzi, L. 76, 79 Choenni, A. 101, 119 Boulding, K.E. 235 Ciccone, A. 12, 13 Bradley, R. 169, 170 cities see urban centres Branstetter, L. 345 Claici, A. 260 Breschi, S. 84, 85, 90 Clark, G.L. 288, 295 Brisbane 166, 172, 178 Clerides, S. 321 Brock, W.A. 98 cluster paradox 291 Bröcker, J. 301, 305 clusters Brueckner, J.K. 4 agglomeration economies 282, 283 Brush, C.G. 122 benchmarking benefi ts 281, 291 Bruton, G.D. 100 City of London 285–8 Buckley, P.J. 295 competitive advantage 287 Bureau of Transport and Regional congestion eff ect 281, 282, 295 Economics 160, 161, 163, 164, defi nition 285–6 165, 166, 169, 171, 172, 174, 175, face-to-face contact 294 177, 180, 181, 186 high expense in 282, 295 bureaucracy, new fi rm foundation 213, knowledge dissemination 283–4 220, 225, 227–8 labour supply in 291 business services sector 163, 164, 166 localization economies 55 Buttner, E.H. 122 market linkages 284 MNE and non-MNE compared Cairns, R. 260 18–19, 291–2 Cameron, C.M. 236 outsourcing 284 Caminal, R. 260 proximity benefi ts 281, 291, 293, Canary Wharf 285, 286 295–6 Canberra 172, 173 reputation spillover 289, 291 Caniëls, M. 67, 72 research and development (R&D) Capello, R. 3 52 captive entrepreneurship 123 role of multinational enterprises Carayol, N. 85, 86, 87, 88 285 Card, D. 11 skills transfer 284, 291, 294 , B. 98 subsidiaries 283–4

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Coase, R.H. 217 contracts, payment systems 258–60, Cobb–Douglas production function 74 261, 264 Coe, D.T. 323, 327, 344 convergence Coggan, P. 288 industry sectors 163 Cohen, W.M. 8, 78 regions 159–60 collaborative advantage 159 Cook, G.S. 18, 283, 295 Commission on Conduct of core-periphery model 5 Referendum, 1996 251 corporate structure ownership fi rms communication 328, 330, 331, 333 benefi ts of proximity 8 Corporation of London 285 creative regions 31 Cowan, R. 88, 89 direct interaction 80–81 creative regions externalities 80–81 characteristics 31 human interaction 38 communication channels 8–9 networks 3 consumer-driven processes 36–8 spatial scales 344 creative vs. productive human spillover eff ects 9 activity 29–30 communications sector 164 cultural aspects 31 Community Development economic development 28–34 Employment Programme (CDEP) economic diversifi cation in 30–31 164 human capital in 37–8 Community Innovation Surveys (CIS) import and export fl ows 30 145 information rich vs. information community opportunity–vulnerability poor 30 framework 182–3 institutions 29 commuting 37, 196, 198–9 international network system 38–41 comparative advantage knowledge fl ows 39, 47 causes 35 the knowledge society 28–9 export fl ows 301 producer-driven processes 35–6 regional 159, 160, 166 research and development (R&D) Ricardian model 35–6, 56 activity 30 spatial product cycle theory 44–5 structural instability in 32 specialized industries 165 trade and location 34–8 competitive advantage transport infrastructure 28–9, 30 creativity and problem-solving 8 urban centres 2, 3, 34, 39, 41–9, 53 regional 159 creativity regional innovation for 234 characteristics 29–30 competitive environment 217, 219 competitive advantage and 8 compliance costs 227 creative processes 31–3 Comtrade database (UN) 307 defi nitions 32–3 congestion eff ect, clustering 281, 282 economic development and 28–34 conservative interest groups 238, human abilities 33 243–4, 250 motivations for 33–4 construction industry 163, 164 spillover eff ects 28 consumer behaviour credit cards 257–8 information acquired through Criscuolo, C. 321 settlement services 257 culture loyalty programmes eff ect 260 creative regions 31, 34 transport utility 257–8, 259–61, entrepreneurial 102, 216, 218–19 262–4 cumulative causation 55

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Darby, M.R. 81 external 51–2, 54–5, 56 Darwin 166, 173 infl uencing comparative advantage Davidsson, P. 214, 219, 220 35 Deakins, D. 123 infl uencing regional specialization 51 ‘death of geography’ 18, 281, 295 internal 51, 54, 56 defence industries sector 163, 164, 166 spatial product cycle theory 44–5 Delli, C. 235 economies of scope 51 Delmar, F. 221 education Department of Home Aff airs and the entrepreneurs 220–21, 225, 228 Environment 170, 181 equalization in levels of attainment Department of Trade and Industry 285 187 deregulation income levels and 181, 187 the ‘Big Bang’ 288 migrant minority population 107–9, fostering entrepreneurship 99 110–11, 122 MNE spatial organization and 282, and occupation outcomes, Australia 283 171–2, 174 Swedish economy 214 opportunity–vulnerability Desai, M. 220 framework 182–3 disagreement equilibrium 243–4 sector 164, 166 diversifi cation, industry see also human capital attractor of ‘new economy’ activities Einarsson, H. 310 160 Ejermo, O. 194 employment distribution 165–6, 186 El Salvador 134, 135, 141 endogenous growth factor 160, 179 Elhorst, J.P. 195 favourable to innovation 78–9 emigration see migration fl ows income stability and growth 180–81 employment population size and 186 and education outcomes, Australia regional Australia 169–70 171–2, 174 and size of regional economy 165, growth linked to regional 167–8 populations 170–71 strategy for growth 160, 186–7 by industry sector 163–7, 186 ‘stylised facts’ 160 industry structural change and urban centres, Australia 166–7 181–2 Dixit, A.K. 323 legislation 227–8 Djankov, S. 217, 222 migrant minority population 112–14 domestically owned enterprises 328–32 shift-share analysis 179–80 ‘double network’ 136 urban centres 10 Downs, A. 235 see also jobseekers Draca, M. 176 endogenous development factors 17 Drucker, P. 1 human capital 2, 160–61, 162, 179, Dunning, J.H. 282, 283, 285 184, 187, 188 Dupuy, C. 283 income levels 180, 184 Duranton, G. 3, 4, 9, 70, 71, 72, 79, industry structure 160, 162–70, 179, 80, 160 180, 184, 186, 188 Dwyer, J. 171, 176 policy and planning implications 188–9 Eaton, J. 323, 324, 327 population size and growth 184, 186, econometric method 224–5 187, 188 economies of scale spatial variations model 183–5, export fl ows 301 187–8

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Enright, M.J. 283, 288, 291, 294, 295 self-selection hypothesis 321, 323, entrepreneurship 324, 326 analysis of variables 221–8 supply and demand 302–3 attitudes towards 218–19 United States of America (USA) bureaucracy and regulation 213, 220, 328 225 external networks 134, 139–40, 148–51 competitive environment 219 creativity in 33 face-to-face communication 8, 80–81, defi nitions 99, 215 345 determinants 125 fare systems see settlement systems, driving economic growth 98–9, 126, discounts 213–14 Farrell, J. 248 institutional infl uences 100, 218–21 Feldman, M.P. 67, 72, 79 migrants see migrant Ferejohn, J.A. 235 entrepreneurship fi nancial market integration 300 policy 99, 127 Financial Services Act 1986 288 political infl uences 220, 225 fi nancial services sector 163, 164, regional market conditions 220–21 295–6 social benefi ts of 126 Fiorina, M.P. 235 targets 127 Firms in International Trade 322 tax on income 219 Fischer, E.M. 122 see also new fi rm foundation Fischer, M.M. 43 environmental laws 227–8 fi shing industry 166 Europe fl exible specialization 98, 99 concentration of innovation activity Florax, R. 2 65, 67–9 Florida, R. 2, 9, 33, 37 entrepreneurship in 99 Folmer, H. 2 geographical change in 307, 308 food retailing 163, 164 specialized agglomeration 69–70 foreign direct investment (FDI) Swedish export destination 307–8 in the City of London 287–8, 294 Evans, D.S. 98 industrial cluster advantages 283 exchange controls 288 intrafi rm cooperation 135 exchange costs 326 research tradition 282, 294–5 exogenous growth model 6 source of innovation 136 expected utility hypothesis 238–40 spillover eff ects 136, 137–9 expenditure of statement costs 239, Sweden 302 243, 246 technology sector 136–7 exports typology 283 creative regions 30 foreign ownership destination diversity 304–6, 307–11 fi nancial services sector 287 diversifi cation in 301, 304–5 innovation outputs 134–5, 147–8, fi rm-level analysis 320, 328–39 152 impact on productivity 322–3 foreign technology 135, 137–9, 146, individual fi rm activities 321 148, 152 ‘learning by exporting’ 320, 321, 323, forestry industry 164, 166 326 Foss, N.J. 214, 219 marketing costs 326 Freytag, A. 214 productivity advantage 324–5 Fudenberg, D. 242, 260 related to importing countries Fujita, M. 6, 8, 9, 29 income 300 functional specialization 9–10, 181–2

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Galbraith, J. 260 Greenaway, D. 321, 324 game theory Greunz, L. 79 Bayes rule 238 Griliches, Z. 73, 345 expected utility hypothesis 239–40 Grofman, B. 236 incomplete information 18, 234, 236, gross domestic product (GDP) 300, 245 302, 303 perfect Bayesian equilibrium 241–4, gross state product (GSP) 176 247–9 Grossman, G. 327, 344 Gans, J. 169, 170 Guatemala 134, 135, 141 Garnaut, J. 170 guest workers 103, 105, 109, 112 Garnett, A.M. 176 Guillain, R. 2, 8 Gaspar, J. 8 Gutierrez, J.J. 16 generalized least squares (GLS) estimator 333, 336, 337, 338 Haas, A. 12 generalized method of moments (GMM) Hacker, R.S. 310 estimator 335, 336, 337, 338 Hagedoorn, J. 83 Ghauri, P.N. 295 Hägerstrand, T. 8 Gibbard, A. 235 Hague, the 107, 108, 115–16 Gilles, R.P. 85, 87 Haining, R. 225 Gilly, J.-P. 283 Hall, P. 12 Gini index 67 Hallin, G. 214 Glaeser, E.L. 8, 11, 12, 37 Halpern, L. 139 globalization Hamilton, A. 288 defi nition 300 Hanaki, N. 90 export destination diversity 305, 306 Hansen, W.G. 303 export fl ows 19, 301, 304–6, 313 Hanushek, E.A. 161 import fl ows 301 Harris, M. 261 market integration 301, 304 Harrison, H. 177, 284 MNE spatial organization and 282, Hartog, J. 103 283 Hatori, T. 17 origins and development 301 Head, K. 283, 285 transport costs 301 ‘headquarter functions’ 9–10 globalization irony 291 health sector 164, 166, 218, 219 Gnosjö region 219 Heckscher, E. 323 Goetz, S.J. 161 Helpman, E. 323, 327, 344 Golding, T. 285, 288 Henderson, J. 4, 6, 11, 160, 282 Gomes-Casseres, B. 90 Henkes, B. 115 Gomper, P. 100 Henrekson, M. 214, 219 Gong, H. 283 Herfi ndahl index 67 Gordon, I.R. 160, 287 Hermes, K. 100 government Heuermann, D.F. 13 administration 163, 164, 166 Hirsch-Kreinsen, H. 53, 139 functions and power 217 Hirschman, A.O. 2 infl uencing entrepreneurship 213, HM Treasury 287, 288 220, 225, 228 Hogan, L. 169 sector size 219, 225 Holsti, O. 235 Swedish institutional aspects 218–21 Honduras 134, 135, 141 Grabher, G. 55 Hood, N. 283, 285 Granovetter, M. 216 Hoover, E.M. 31 Gråsjö, U. 19, 194, 344 hospitality sector 163, 164, 166

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households opportunity–vulnerability consumption 35–6 framework 182–3 locational choices 36–7 R&D regions 45 surplus 269–71 regional variations, Australia 177 Howitt, P. 11, 327 regression analysis 181 Hudson, R. 55 stability and industrial diversifi cation human capital 180–81 agglomeration 2–7, 10 urban centre employment 11–12 comparative advantage and 36 incomplete information 234, 235, 236, correlation with regional 245 performance 176–7 indiff erent equilibrium 242–3 creative regions 31, 37–8 Indonesia 104, 112 economic growth 53–4 industry structure 162–7 functions in society 160–61 employment sector shifts 163–5 indices 172–4, 175, 187 infl uencing regional innovation input 134 entrepreneurship 221, 227 in the knowledge economy 1–2 labour market regions, Australia levels infl uencing regional 186 entrepreneurship 221, 225, 228 opportunity–vulnerability multinational enterprises (MNEs) framework 182–3 284, 294 regional diversifi cation and occupation outcomes and 175 specialization 165–7 opportunity–vulnerability regional economic growth and 179, framework 182–3 181–2 positive externalities 10–14 regional patterns of change, regional variations, Australia 162, Australia 169–70 172–4, 176–7, 187 regional population size and 186 transfer via labour mobility 194, 195 spatial context 163 urban centres 37, 41, 53 urban centres 9–10 see also education information and communication Huriot, J.-M. 2, 8 technology communication ease and IAF 194 accessibility 38–9 immigration see migration fl ows electronic media 29 imperfect information 236 improvement leading to imports globalization 301 creative regions 30 logistical revolution 34 diversifi cation in 301 MNE spatial organization and 282, fi rm-level analysis 320, 332, 333 283 impact on productivity 322–3, 327 payment systems development 257 ‘learning by importing’ 320, 326 inner regional Australia 164 qualitative 40 innovation stimulating innovation 39–41 absorption capacity 78–80, 82 supply and demand 302–3 communication externalities 80–81 income cycle 71–2 education outcomes and 181, 187 fi rm-based process 139 growth as economic indicator 180 geographical externalities 63–4 human capital externalities 12–13 in industrial clusters 282 levels infl uencing regional infl uence by localization 73–4 entrepreneurship 221, 227, 228 inputs 134–5, 136, 140–41, 148–9

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introduction channels 147 intellectual property rights 28 knowledge production function interest groups 236, 237–8 19–20, 74–7, 345 expenditure of statement costs 238, local systems 63 239, 243, 246 localized growth dynamics 71, 73–4 infl uencing voting behaviour 234, networks 83–91 237–8 outputs 134, 135–6, 141, 143–7 interfi rm networks 139–40, 148 political 234–6 intermediate capital goods 320, processes 134, 135, 136–40 327–8 products 134, 135 internal networks 137–40, 147–8 professional mobility 81–3 role in innovation processes 134 research tradition 134 spillover eff ects 137–9 role of networks 134, 135 International Financial Services Schumpeter’s 5-category typology London (IFSL) 285, 289, 295 134, 135, 144 international trade 19, 300, 321 spatial concentration of activity exports and productivity 323–6 67–9 fi rm-level analysis 320, 321–3, diversifi ed innovative 328–39 agglomerations 69–70 intermediate capital goods 320, productivity and 65–9, 72–3 327–8 stimulated by imports 39–41 productivity elasticity 320, 322 in urban centres 9, 34 transaction costs 326 innovation space United States of America (USA) geographical knowledge externalities 320, 328 63–4, 70–71 intrafi rm networks 134, 135, 136, industry specialization 71–2 147–8 innovative projects 234 Investment Climate Survey (ICS) 16, institutional environment 17, 218–19, 141, 143, 145 221–8 institutional networks 148 Jackson, M. 85 institutions Jackson, O.J. 87 cultural infl uences on new fi rms 100, Jacobs, J. 2, 30, 31, 41, 71, 99 102, 216 Jacob’s externalities 71, 79 entrepreneurship and new fi rm Jaff e, A.B. 73, 75, 76, 79, 81, 90, 345 foundation 213–14 Jansen, M. 107, 108 environment see institutional Jensen, J.B. 321 environment Jeon, H. 260 formal and informal 215–16 jobseekers government 217, 218, 219 competition amongst 196–7, 200, infl uencing regional 201, 202 entrepreneurship 215–16 geographical mobility 17, 195–8, in the knowledge society 29 201, 202 regional diff erences 214 probability measures of success resource allocation and employment 201–2 217–18 search area 195–6, 197–202 social embeddedness 216, 218–19 search intensity 197, 199, 203–4 Swedish regional context 214, strategies 194–5 218–21 vacancy matching 4, 195–8 analysis of variables 218–21 see also unemployment taxation 219 Johannisson, B. 218

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Johansson, B. 2, 14, 19, 35, 38, 42, 43, localized knowledge production 44, 46, 48, 51, 52, 55, 56, 84, 159, functions 74–7 194, 303 patent citations analysis 73–4 Johansson, S. 19 geographic dimension 64, 70–71 Johnson, P. 85, 87 origins and life cycle 79 Jung, J.P. 236 knowledge infrastructure 14 knowledge networks 38–9, 41, 85 Kaldor, N. 2 connection models 85–9 Kamer van Koophandel 115 research in 83–5 Kangasharju, A. 216 knowledge production 345 Karlsson, C. 2, 12, 14, 38, 39, 41, 42, function 74–7, 345 44, 46, 51, 55, 56, 194, 214, 303 human interaction and 80–81 Karpaty, R. 302 networks in 83–91 Katz, L.F. 12 regional variations 19–20, 343–4 Kauff man Foundation 137 knowledge properties 345 Kaufman, R. 160, 180, 181 knowledge spillover Keeble, D. 283, 284 in creative regions 28 Keller, W. 322, 323, 327 Marshall-Arrow-Romer (MAR) Kelley, C. 140, 141 spillover 71 Kenwood, A.G. 301 network externalities and 38–9 Kim, S. 10 relationship with entrepreneurship Kimko, D.D. 161 99 Kivetz, R. 260 spatial disparities 73–4 Klaesson, J. 39 spatial scales 344 Klapper, L. 220 subsidiary networks 136–7 Kline, S. 134, 136, 145 Kobayashi, K. 17–18, 53, 251, 261 Kloosterman, R. 100, 116, 119, 123 Kogut, B. 73, 81 Kneller, P. 302, 321, 324 Kokko, A. 137 Knickerbocker, F.T. 291 Kortum, S. 323, 324, 327 knowledge diff usion Kozul-Wright, R. 282 communication externalities 80–81 Kraal, K. 107 creative regions 47 Kreuger, A.B. 12 diff usion 15 Krugman, P. 4, 5, 70, 73, 301, 323 electronic media 29 Kuhn, T.S. 34 face-to-face contact 294, 344 Kynaston, D. 287, 288 spatial mechanisms 64 transaction costs 53 labour force via subsidiary clusters 283–4 opportunity–vulnerability knowledge economy 14, 365 framework 182–3 driver of regional specialization 27 professional mobility 81–3 information rich vs. information regional Australia 170 poor 30 labour market infrastructure 39 accessibility concept 194 institutions 29 agglomeration force 70 regional economic growth 30 creative regions 44 urban regions in 34 geographical mobility see labour knowledge externalities mobility absorption capacity 78–80 in industrial clusters 291 diff usion mechanisms legislation 218–19, 227–8 concentration analysis 72–3 policy and politics 207

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regional characteristics 44 Lösch, A. 53 regions 165–7, 168, 169–70, 186, 195 Lougheed, A.L. 301 Sweden 200, 202–3 Loveman, G. 98 urban centres 10 low- and medium-technology labour mobility manufacturing and choice of residential location 37 access to foreign technology 135–6 jobseekers and 17, 195–7 economic role 135 knowledge transfer and 194, 195 innovation inputs 136, 140–41 Lakshmanan, T.R. 303 innovation outputs 134 Lande, P. 160 interfi rm networks 139 Larsson, J. 42 Lucas, R. 2, 8, 10, 11, 31, 41, 80 Law on Foreign Workers 106 Lucassen, L. 103, 104, 112, 115 Lawson, J. 171, 176 Lundvall, B. 139 ‘learning by exporting/importing’ 320, Lundvall, M. 195 321, 323, 326 Lupia, A. 235 Ledyard, J.O. 236 Lee, Y. 123 Maas, M. 115, 119 Leicht, R. 100 Maggioni, M. 90 leisure industry 164 major city classes, Australia 164, 177–8 Leites, N. 235 Malmberg, A. 214 Leonard, D. 8 Mantsinen, J. 28 LeSage, J. 77, 79, 82 manufacturing sector Levinthal, D.A. 8, 78 Australia 162, 163 Lewis, M. 5, 176, 260 employment localization 166 Leydesdorff , L. 83 employment share 164 ‘liability of foreignness’ 283 institutional environment 222, 224 linear regression 224 low- and medium technology see Lippmann, W. 235 low- and medium-technology Lissoni, F. 84, 85, 90 manufacturing ‘listening posts’ 283, 291 regression analysis 227–8 Lloyd, R. 177 Swedish export fl ows 330, 331 localization Manza, J. 235 industry sector employment 166 MAR 71 innovation and spillovers 73–4, 79 Mare, D.C. 12 knowledge production 75–6 Markusen, A. 285, 287 location economies 51–2, 54–5 Marshall, A. 4, 51, 54, 56, 70, 71, 72 location quotient analysis Marshall-Arrow-Romer (MAR) industry sector employment shares spillover 71 163–5 Martin, P. 301 labour markets regions (LMRs), Massard, N. 15, 63, 71, 79, 81, 84 Australia 166–7 Masurel, E. 123 London, City of Matsushima, K. 261 foreign direct investment 287–8, 294 Matthews, J. 152 history as fi nancial centre 285–8 Matthiessen, C.W. 28, 30 movement of activity out of 295 Matutes, C. 260 multinational enterprise clusters in Maude, A. 182 18, 281 Maurseth, B. 73, 78 London Investment Banking McCann, P. 160, 287 Association (LIBA) 289 McGill, J.I. 260 Lööf, H. 19, 323 McKelvey, R.D. 235

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median voter theory 240, 241, 250 out-migration 176, 177 Mehier, C. 84 policy 103, 106, 127–8, 129 Melbourne 166, 172, 173, 178 Tiebout model 36 Melitz, M.J. 324 transnational 109, 112 Meyer-Waarden, L. 260 military, the 29 Miellet, R.L. 115 Mills, E. 4 migrant entrepreneurship 15, 100–103, Mincer, J. 11, 13 114–26 mining sector 163, 164, 166, 178–9 barriers 128–9 Miravete, E.J. 261 business structures 115–16 ‘missing middle’ phenomenon 143 city concentration of 115 Möller, J. 12 clusters 119, 122 monopolistic competition model 323, compared with native enterprises 324 101, 115–16, 123–4 monopolistic fi rms 271–4 distribution 120–21 Mody, A. 283, 285 generational diff erences 117–18, Moore, D.P. 122 120–21, 123, 124, 125–6 Moran’s test 225 market characteristics 119 Moretti, E. 10, 12 models of 101–2 Mueller, D. 235 motivation for 101–2, 122–5 multicollinearity 224 participation rates 102, 116–19 multinational enterprises (MNEs) positive economic eff ects 128 clusters 9–10, 281, 282–5, 289–95 profi t profi les 125–6 export fl ows 328–32 role in emergence of small fi rms 100 foreign direct investment 282, 287–8 sector preferences 100, 114, 115, 117, human capital and culture 284, 291 118–19 positive externalities 137–8 start-up capital 119, 122 research tradition 282–5, 294–5 success rates 116, 117, 119, 125–6 subsidiaries 283–4, 285 support networks 119, 124, 125, 129 municipal government, Sweden 218–21 women 118–19, 123–4 Murphy, K.M. 12 migrant groups, Netherlands 15–16 Myrdal, G. 2, 55, 56 demography 107–8, 122 educational performance 107–11, Nachum, L. 282, 283, 284, 285, 287, 122 288 entrepreneurship see migrant Nako, S. 260 entrepreneurship National Centre for Social and families 105, 106–7 Economic Modelling (NATSEM) groups and destinations 107–8 177 household composition 113–14 national innovation systems 139 labour market position 108–9, natural-resource-seeking investment 112–14, 128 283 language skills 107, 108, 112, 122 Nelson, R.R. 11, 43 motives for migration 109, 112 neoclassical economic theory 217 recruitment policy 105, 106 neoclassical growth theory 159 socioeconomic position 103, 109, Neslin, S. 260 112–13, 122 Netherlands urban population category 107–8 dominant migrant groups 107–8 women 108, 109, 110–11, 118 immigration policy 105, 127–8 migration fl ows 103–7 migrant entrepreneurship 100–103, motives for 105–6, 109, 112 114–26, 128

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migration fl ows 103–7, 127–8 O’Brien, R. 295 SME sector 127 O’Connor, K. 161, 162 network equilibrium 88 OECD 136, 160, 161 network externalities 38–41 innovation indices 67–9 networks unemployment reduction policy 127 collaborative connections 89–91 off shoring 295 communication 3 Ogawa, H. 9 external 148–51 Ohlin, B. 35, 323 geographical dimension 85–9 Olsson, M. 17, 194, 195, 199, 201 infl uence on knowledge creation 64 OPEC 287 innovation introduction channels open innovation 28 147 opportunity–vulnerability framework interfi rm 139–40, 148 182–3 internal 134, 137–40, 147–8 optimal rationing systems 260 knowledge production 83–91 Ordeshook, P.C. 235 role in innovation processes 16, 135, Ostergaard-Nielsen, E. 112 136–40 Ours, van J.C. 112 social 216 outer regional Australia 164 transport 3 out-migration 176, 177 new economic geography 14, 27, 70 outsourcing 284 ‘new economy’ 160, 161, 185 ownership–location–internalization new fi rm foundation model 283 in diversifi ed cities 160 incentives 218–19 Paci, R. 79 industry variations 214 Palfrey, T.R. 235, 236 institutional infl uences 17, 100, 213, Pandit, N.R. 18, 283, 295 215–21, 225–8 Park, R. 2, 41 market conditions 220–21, 225, patent citations 73–4, 76, 78, 79, 81–2, 228 85–6, 345 start-up costs 217, 220 payment systems see settlement see also entrepreneurship systems, discounts New South Wales 171, 172, 173, 178, pecuniary externalities 10–11, 70, 137 183, 184 Penninx, R. 103, 104, 112, 115 new trade theory 323 perfect Bayesian equilibrium 241–2 Newman M.E.J. 83 babbling equilibrium 249 Nicaragua 134, 135, 141 disagreement equilibrium 243–4 Nijkamp, P. 3, 15 indiff erent equilibrium 242–3 Nilsson, D. 19 pooling equilibrium 247, 248, 249 non-affi liate fi rms 328–32 separating equilibrium 247–9 non-multinational enterprises 289–95 perfect information 245 Noorderhaven, N. 216 Peri, G. 13, 76, 79 Nooteboom, B. 88 personal services 163 Norrander, B. 236 Perth 166, 172, 173, 178 Norris, K. 177 Peschel, K. 310 North, D. 5, 213, 217 Petrongolo, B. 195 North America 99, 104 Pettersson, L. 12 Northern Territory, Australia 163, 171, Phelps, E. 11 172, 173, 174, 175 Pierre, J. 220 NUTEK 227 Pissarides, C.A. 195 Nyström, K. 17, 214, 219, 222 Polanyi, M. 52

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politics property rights 217 infl uencing new fi rm foundation 213, property sector 163, 164, 166 220, 225, 228 proximity, clustering 281, 291, 293 interest groups 236 Puga, D. 4, 5, 9, 70, 71, 72, 79, 160 social-decision-making processes purchasing power 56 234–5 pooling equilibrium 247, 248, 249 qualitative imports 40 Popkin, S.L. 235 Queensland 163, 171, 172, 174, 176, population, size 220–21, 225–8 178, 179, 183, 184 Porter, M.E. 99, 282, 283, 288, 291 Quiggin, J. 161 positive externalities 7–8, 10–14, 137–8 Quigley, J. 36, 84 see also spillovers postcolonial migration 103, 109, 112 Ram, M. 123 Potters, J. 236 Raspe, O. 1 Poutsma, E. 119 Rath, J. 100, 113, 119 Powell, J.L. 83 rational choice 235, 250 Power, D. 195 Rauch, J.E. 11, 13 primary industries 166 Raviv, A. 261 private sector Recanatini 140, 143 government policy towards 220, 225 referenda institutional environment 222, 224 abstention 235, 241 and new fi rm foundation 213 effi cient outcomes 234 regression analysis 228 equitable statement policies 246–7 Sweden 219 ineffi cient outcomes 17, 234, 235, process innovation 134, 135, 145 245–6 procompetitive externalities 138 problems with 235 product cycle theory 42–9 social decision-making device 251 basic premises 42 spatial voting theory 236–44 comparative advantage 44–5 voter belief systems 240 economies of scale 44–5 voter information asymmetry 235–6 mature products 48–9 refugees 103, 104 new products 47–8 Regeringen 194 process routinization 43, 44 regional specialization research and development (R&D) 49 and economic growth 54 spatial 42–3 labour supply adjustment 56 product innovation 134, 135, 144–5 regression analysis product standardization 43–4 income growth 181 productivity new fi rm foundation 225–8 comparison with concentration of trade and labour productivity 332–9 innovative activity 67–9, 72–3 regulation elasticity 320, 322 compliance costs 227 import fl ows and 327 new fi rm foundation 217, 220, 225, in industrial clusters 282 227 and trade fl ows 332–9 product markets 217 urban centres 11–12 see also unemployment benefi t rules Productivity Commission 165, 170, Regulation Q 287 180, 182 remote regions, Australia 172 profi t-maximisation behaviour 271–6 economic context 162 progressive interest groups 238, 243–4, educational attainment 187 250 employment sectors 164, 185–6

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reputation spillover 284, 289, 291 self-selection hypothesis 321, 323, 324, research and development (R&D) 326 creative regions 30 Sengenberger, W. 98 income levels 45 separating equilibrium 247–9 innovation input 135 service sectors 163, 164, 166 internal capacity 78 settlement systems, discounts 18 investment in rich countries 49 consumer behaviour and disutility low- and medium-technology 264–8 manufacturing sector 140 contracts 18, 258–60, 261, 264 product cycle theory 49 disutility and the demand function regional clustering 52 263–4 spatial product cycle theory 45–6 economic benefi ts 258, 276 reserved utility 262 eff ect on household surplus 269–71 resource endowments 162 information transfer in 257 Rettab, B. 101, 119 optimal price systems 261 Reynolds, P. 221 optimal rationing systems 260, 261 Ricardo, D. 35–6, 54, 56, 323, 324 post-discounted settlement systems Rietveld, P. 195, 301, 305 267–8 Riker, W.H. 235 profi t-maximisation behaviour 271–6 Riksrevisionen 195, 207 regulation and social surplus 274–6 Riou, S. 71, 79 risk-sharing structure 18, 258, 261 Rivera-Batiz, L. 327 technological developments in 257 Roberts, B. 159, 287 three-period contract model 18, Robins, P.K. 197 259–64 Rodriguez-Clare, A. 138 Sharp, A. 260 Rodrik, D. 213 Sharp, B. 260 Rogers, W.H. 87 Sherman, R. 261 Rohweder, H.C. 301, 305 shift-share analysis 179–80 Roijakkers 83 Singh, J. 85, 90 Romer, P.M. 2, 10, 11, 71, 159, 327, small and medium business enterprises 328, 345 driving economic growth 98–9 Romer, T. 235 importance of sector 127 Rosenberg, N. 134, 136, 145 migrant entrepreneurship in 100 Rosenthal, H. 3, 4, 11, 235 Smarzynska, B. 137, 138, 141, 145 Rotterdam 107, 108, 115–16 Snickars, F. 305 Roux, P. 85, 86, 87 Soberg, M. 235, 251 Rowthorn, R. 282 social decision-making 234–6, 251 Rupasingha, A. 161 social embeddedness 216, 218–19 rural Australia 176–7 social surplus 258 Ryzin, G.J.V. 260 fee regulation and 274–6 Socialstyrelsen (National Board of Sahin, M. 15, 100, 102, 125 Health and Welfare) 219 Salt, B. 174 Solow, R.M. 2 Sassen, S. 287 Solow growth model 159 Satterthwaite, M.A. 235 Solvell, O. 282 Saxenian, A. 8 Sorenson, O. 90 Scarpetta, S. 217 SOU 219 Schoenmakers, W. 73, 79 South America 307–8 Schumpeter, J.A. 134, 135, 144 South Australia 163, 171, 172, 173, seed capital 217, 218, 220 174, 176, 183, 184

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space economy 162, 170, 189 Suedekum, J. 12 spatial autocorrelation 225 Summers, L. 260 spatial product cycle theory 35, 42–9 sunk costs 321, 324 spatial voting model Super, I. 101 basic model 236–8 supply and demand equilibrium analysis 241–4 comparative advantage and 35–6 model assumptions 238–41 import and export fl ows 302–3 perfect Bayesian equilibrium 241–2 transport services 260–61 voter belief systems 236–7, 241–2 Swann, G.M.P. 282, 283 specialization, industry Sweden 220, 221–8, 332–9 driver of regional development 27, economic diversifi cation 301 160, 186 export fl ows 19, 300, 301–2 eff ect on innovation 78–9 average export distance 308 employment opportunities and 165 concentration of destinations 310 knowledge externalities and 71–2 destination diversity 307–8 qualitative imports 40 distance-dependent diversity regional Australia 163–5, 166–7 310–11, 312 regional demand and supply 36 distribution and complete ‘stylised facts’ 160 diversity 309–10 theoretical framework 27 statistical sources 307 tied to size of regional economy 167 foreign direct investment (FDI) 302 urban centres 166–7, 181–2 institutions and entrepreneurship spillovers 214, 221–8 communication externalities 9, 80–81 international regionalization 302 employee interfi rm mobility 81–3 international trade analysis 19, 320, foreign direct investment (FDI) 321–2, 328–39 137–9 labour market 17, 200, 202–3, 207 knowledge production and matching jobseekers and vacancies innovation 72–3 195–7 professional mobility 81–3 municipal government 218–21 see also positive externalities new fi rm foundation 214, 218–21 stand alone corporate portfolio open economy 300, 301, 320, 323 investments 283–4, 294 trade globalization criteria 304–7 start-up capital unemployment benefi t rules 194, migrant entrepreneurship 119, 122 195, 196, 197, 199, 200, 205–7 new fi rms 217, 220 Swedish Confederation of Enterprises Statistics Sweden 221, 222 (SCE) 222 Stiglitz, J.E. 323 Swedish National Labour Market Stimson, R.J. 17, 159, 172, 173, 174, Board (AMS) 203 175, 176, 178, 182, 183, 184, 186, Sydney 166, 172, 173, 178 187, 188 Stough, R. 51, 159, 183 tacit knowledge 73, 80, 345 Strange, W.C. 3, 4, 11 talent see human capital strategic-asset-seeking investment 283 Tangeras, T. 235, 251 Strauss, S. 8 Tasmania 163, 171, 172, 173, 174 Strömquist, U. 28 taxation 180 subjective probability distribution 237, entrepreneurial income 219 238 laws 227 Subramanian, J. 260 and new fi rm foundation 213, 225, subsidiaries 136–7, 283, 285 228

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Taylor, A.M. 301 concentration of innovation activity Taylor, G.A. 260 65, 66–7 Taylor, P.J. 160 specialized agglomeration 69–70 technological externalities 137 universities 10, 29, 30, 139–40 technology diff usion 320, 321, 323, urban centres 326–7, 328 agglomeration of production 7–8 technology sector 177–8 Australia 161 The Banker 289 centres of creativity 2–3, 34, 39, Theil, H. 305 41–9, 53 Thisse, J.-F. 4, 6, 8, 9, 29 communication channels 8–9 Thompson, W. 2, 41 endogenous growth process 53–4 three-period contract model 18, 259–64 functional specialization 9–10, 181–2 Thrift, N. 291, 294 human capital in 2–3, 37–8, 41, 53 Thurik, A.R. 99, 100, 213, 214 industry structure in 9–10 Tiebout, C. 36 international R&D centres 46–7 Tillaart, H. van den 115, 116, 119, 127 labour market 10 Tirole, J. 242, 260 ‘optimal size’ 4 Toderas, A. 15 trade between 41 Torre, A. 63 wages and productivity 11–12 total factor productivity (TPF) 327–8 urban centres and localities (UCLs) transaction cost economics 53, 217, 166–7, 172–6 326 urban hierarchy 161, 167, 168, 175–6 transaction distance variable 302–3, urbanization 4–7 305 see also agglomeration; urban transnational corporations (TNCs) 284 centres transnational migration 109, 112 Usai, S. 79 transport infrastructure 28–9 utilities sector 164 transport networks 3 Utrecht 107, 108, 115–16 transport sector 166 Tubergen, F. van 100 vacancies two-sector models 5–6 accessibility measures 198–200 Tybout, J. 321 distribution across educational and occupational classes 196 UNCTAD 139 matching to jobseekers 195–8 unemployment van Delft, van H.C. 119 migrant minority population van Ommeren, J. 195 113–14, 122 van Oort, F.G. 1 OECD reduction policy 127 Van Stel, A. 220 rates infl uencing regional Varga, A. 78 entrepreneurship 221, 225 variance infl ation factors (VIF) 224–5 and regional diversity 168–9 Veenman, J. 112 rural Australia 177 Venables, A. 139, 146 spatial variations among labour Verheul, I. 102, 125 market regions 195 Vermeulen, F. 112 see also jobseekers Vernon, R. 31, 42 unemployment benefi t rules 17, 194, Verspagen, B. 73, 78, 79 195, 196, 197, 199, 200, 205–7 Vertova, G. 65 uninational enterprises 328–32 Vickerman, R. 301, 305 United States of America (USA) 320, Victoria 163, 171, 172, 173, 176, 184 328 Visscher, M. 261

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Vodopivec, M. 195 Westin, L. 38 von Hippel, E. 52 Wheeler, D. 283, 285 von Thünen, J.H. 53 White, D. 160, 161 von Tunzelmann, N. 140 wholesale sector 164 voting Wigren, C. 219 abstention 241 Wigren, R. 35 interest group infl uence on 237–8 Williamson, O. 217, 326 median voter theory 240, 241, 250 Winden, F. 236 pivotal voters 241 Winter, S.G. 43 rational behaviour and 235, 250 Wolinsky, A. 85 referenda 234, 235 Wolters, T. 127 strategy infl uenced by information Wooden, M. 177 245 World Bank 16, 141, 220 World Development indicators 307 wage fl exibility 208 World Economic Forum 222 Wagner, C.S. 64, 83 Wagner, J. 321 Xu, B. 346 Waldinger, R.D. 102 Wang, J. 6 Yi, Y. 260 Weibull, J. 305 Welfens, P.J.J. 301, 305 Zanfei, A. 134, 136, 137, 321 Wennerkers, S. 213 Zipf’s law 143 Western Australia 171, 172, 173, 174, Zorlu, A. 103, 107, 112, 113 178, 179, 183, 184 Zucker, L.G. 80, 81, 82

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