New Directions in Regional Economic Development

Thisbookisbasedonpaperspresentedataninternationalworkshoporganisedin Jo¨nko¨ping,Sweden,inJune2005tocelebratethe60thbirthdayofProfessorBorje ¨ Johansson–adearfriendandadmiredcolleagueofours. Thebookprovidesa limited sample of Bo¨rje Johansson’s broad ranging research interests. In this volume, some of his friends and colleagues have contributed chapters on the themeof“Innovation,DynamicRegions,andRegionalDynamics”. Thisisa?eld ofresearchinwhichBo¨rjeJohanssonhasbeenagreatinspirationtousall,andto whichhehim-selfhascontributedwithcharacteristicenthusiasmandinsightaspart ofhisprodigiousoutput. TheworkshopandthecreationofthisbookweresponsoredbytheAlfaSavings BankFoundationinJo¨nko¨ping,Jo¨nko¨pingInternationalBusinessSchool,andthe SchoolofPublicPolicy,GeorgeMasonUniversity,Fairfax,VA. Wethankthemfor theirgeneroussupport. TheauthorsandtheeditorsthankKerstinFerroukhiforall her efforts to organise the workshop and Ulla Forslund-Johansson and Uma Kelekarforworkingtirelesslytogetthepapersrefereedandrevised,toputtogether multipleeditsofthisbookandforpreparingitforthepublisher. Itwouldhavebeen impossibletoproducethisbookwithouttheirdedicatedwork. Sweden CharlieKarlsson Sweden ÅkeE. Andersson UK PaulCheshire USA RogerRStough v Contents 1 Innovation,DynamicRegionsandRegionalDynamics. . . . . . . . . . . . . . . . . . . 1 ? CharlieKarlsson,AkeE. Andersson,PaulCheshire,andR. R. Stough 2 ThePureTheoryofSpatialMarkets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 MartinBeckmann 3 Smith–RicardoSpecializationinthePresenceofTiringEffects. . . . . . . . 47 TonuPuu 4 DynamicsofInnovationFieldswithEndogenousHeterogeneity ofPeople . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 MasahisaFujita 5 EconomicsofCreativity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 ? AkeE. Andersson 6 SimpleMemesandComplexCulturalDynamics . . . . . . . . . . . . . . . . . . . . . . . . 97 DavidBattenandRogerBradbury 7 TheFashioningofDynamicCompetitiveAdvantageof EntrepreneurialCities:RoleofSocialandPolitical Entrepreneurship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107 LataChatterjeeandT. R. Lakshmanan 8 TheSocialCapitalofRegionalDynamics:APolicyPerspective. . . . . . 121 HansWestlund 9 HiddenOrderinTraf?cFlowsUsingApproximateEntropy: AnIllustration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143 KingsleyHaynes,RajendraKulkarni,andRogerStough vii viii Contents 10 RegionalInput–OutputwithEndogenousInternalandExternal NetworkFlows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 JohnR. RoyandGeoffreyJ. D. Hewings 11 RegionalUnemploymentandWelfareEffectsoftheEU TransportPolicies:RecentResultsfromanAppliedGeneral EquilibriumModel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177 ArtemKorzhenevychandJohannesBro¨cker 12 InfrastructureProductivitywithaLongPersistentEffect. . . . . . . . . . . 197 TsukaiMakotoandKobayashiKiyoshi 13 ScienceParksandLocalKnowledgeCreation:AConceptual ApproachandanEmpiricalAnalysisinTwoItalianRealities . . . . . . 221 RobertaCapelloandAndreaMorrison 14 TheLowParticipationofUrbanMigrantEntrepreneurs: ReasonsandPerceptionsofWeakInstitutionalEmbeddedness. . . . . 247 EnnoMasurelandPeterNijkamp 15 TheLocationofIndustryR&DandtheLocationofUniversity R&D:HowAreTheyRelated?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 CharlieKarlssonandMartinAndersson 16 GrowingUrbanGDPorAttractingPeople?DifferentCauses, DifferentConsequences . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 PaulCheshireandStefanoMagrini 17 Urban–RuralDevelopmentinSweden. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 JohanKlaessonandLarsPettersson 18 Patents,PatentCitationsandtheGeographyofKnowledge SpilloversinEurope. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 ManfredMFischer,ThomasScherngell,andEvaJansenberger 19 Co-authorshipNetworksinDevelopmentofSolarCellTechnology: InternationalandRegionalKnowledgeInteraction . . . . . . . . . . . . . . . . . . 347 KatarinaLarsen 20 Off-shoringofWorkandLondon’sSustainabilityasan InternationalFinancialCentre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373 IanGordon,ColinHaslam,PhilipMcCannandBrianScott-Quinn 21 TheGenesisandEvolutionoftheStockholmMusicCluster . . . . . . . . 385 PontusBraunerhjelm Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 409 Contributors ? AkeE. Andersson ? Jo¨nko¨pingInternationalBusinessSchool,Jo¨nko¨pingUniversity,Ho¨gskoleomradet, Gjuterigatan5,55318Jo¨nko¨ping,Sweden,Ake. Andersson@ihh. hj. se MartinAndersson ? Jo¨nko¨pingInternationalBusinessSchool,Jo¨nko¨pingUniversity,Ho¨gskoleomradet, ¨ ¨ Gjuterigatan5,55318Jonkoping,Sweden,Martin. Andersson@ihh. hj. se DavidBatten The Temaplan Group and CSIRO, CSIRO Marine and Atmospheric Research, PrivateBag1,Aspendale,Victoria3195,Melbourne,Australia David. Batten@csiro. au MartinBeckmann EconomicsDepartment,BrownUniversity,64Waterman StreetProvidence,RI 02912,USA,Lauren_Gallo@brown. edu RogerBradbury TjurungaandtheAustralianNationalUniversity,9ScottStreet,Narrabundah,ACT 2604,Canberra,Australia PontusBraunerhjelm DepartmentofEconomics,TheRoyalInstituteofTechnology,DrottningKristinas Va¨g30,10044Stockholm,Sweden,pontusb@infra. kth. se JohannesBro¨cker Institute for Regional Research, University of Kiel, Olshausenstraße 40, 24098 Kiel,Germany RobertaCapello DepartmentofManagement,EconomicsandIndustrialEngineering,Politecnico diMilano,ViaGiuseppeColombo40,20133Milano,Italy Roberta. Capello@polimi.