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Regional Economics

Regional Economics. Lecture 4 Sedef Akgüngör. Some Suggested Websites for Your Interest. http://www.dpt.gov.tr/bgyu/bgyu.html (DPT bolgesel gelişme ana sayfası) http://www.egev.org/ Ege Ekonomiyi Geliştirme Vakfı http://www.weforum.org/gcr (Global Competitiveness Report).

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Regional Economics

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  1. Regional Economics Lecture 4 Sedef Akgüngör

  2. Some Suggested Websites for Your Interest • http://www.dpt.gov.tr/bgyu/bgyu.html (DPT bolgesel gelişme ana sayfası) • http://www.egev.org/ Ege Ekonomiyi Geliştirme Vakfı • http://www.weforum.org/gcr (Global Competitiveness Report)

  3. "The top rankings of Switzerland and the Nordic countries show that good institutions and competent macroeconomic management, coupled with world-class educational attainment and a focus on technology and innovation, are a successful strategy for boosting competitiveness in an increasingly complex global economy."Augusto Lopez-Claros, Chief Economist; Director, Global Competitiveness Network

  4. Innovation as a key Pillar to Development

  5. Innovation through Knowledge Sharing and Regional Development • Depends on the relations of activities within a region: • 1. Vertical relationships • 2. Horizontal relationships • 3. Complementary relationships

  6. Vertical Relationship • Backward and forward linkages • Backward linkage: Purchasing of inputs, subcontracting. • Forward linkage: Transmission of the activity further along the sequence of operations.

  7. Horizontal Relationships • The relation involve the competition of activities or units of activity

  8. Complementary Relationships • Forward linkage effect • Backward linkage effect • Mutual attraction among suppliers of complementary products. As additional producers come into region, they help the region to become the center of a certain/specific activity.

  9. Economies of scale and agglomeration • Regional specialization

  10. Learning Regions • Silicon Valley: A global center for new technology. Enterpreneurs and technologists from around the world backed by global venture capital. • Tokyo, New York, London as financial centers of the world. • Los Angeles: Computer technicans… • Italy: Designer of fashion goods. • Los Angeles, Tokyo, Milan: Land of automobile desighers • New industrial revolution in Taiwan, Singapore, Korea, Malaysia, Thailand, Indonesia

  11. Regions become more important modes of economic and technical organization. • Dynamics of individual regions. • The role of regions in the new age of knowledge intensive capitalism. • Regions are key elements of the new age of global, knowledge based capitalism.

  12. Integrated Economic System • Transplant factories • Multinational companies • Transnational companies • These are sources of productivity growth because: • 1. The directly contribute to higher levels of domestic productivity • 2. Prove that leading edge productivity can be achieved with local inputs • 3. Put competitive pressure on other domestic producers • 4. Transfer knowledge of best practcices to other domestic producers through a natural movement of personnel.

  13. Source: Florida, R. “Toward the Learning Region”. Futures 27(5): 527-536.

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