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The Emergence of New Sectors in Remote Regions: Borders, Help or Hindrance?

This presentation explores the role of borders in the emergence of new sectors in remote regions, focusing on the case study of the Yukon ICT sector. It discusses the challenges faced by traditional entrepreneurship theories and the impact of migration and borders on entrepreneurial activities. The presentation raises the question of whether borders help or hinder new sector emergence and entrepreneurship.

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The Emergence of New Sectors in Remote Regions: Borders, Help or Hindrance?

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  1. The Emergence of New Sectors in Remote Regions: Borders, Help or Hindrance? Borders in the North Summer Institute http://biglobalization.org/content/2016-borders-north-summer-institute 22 June 2016 Laurie Prange-Martin

  2. Presentation Outline Introduction • New sector emergence – my PhD dissertation • Case study on Yukon ICT sector • Migration and entrepreneurship • Migration and borders • So, what borders and entrepreneurship? • What part do borders play in new sector emergence

  3. What is new sector emergence? • The pre-legitimization phase of the establishment of a new sector. • Wholly new sector • Old sector in new region • We know surprisingly little about how to economically diversify regions.

  4. So, why 2 Literature reviews Systematic literature reviews • New sector emergence • 35 different conceptual sources • 18 different theories • 4 different methodologies • Defining remote regions • Alternative to the concepts of urban/rural • Uniqueness of northern areas • Reflect the problem with applying traditional theories in entrepreneurship and economics

  5. Case Study: Yukon ICT Sector • Some years, larger contributor to the Yukon GDP than Tourism • Contemporary example of a new sector emerging • Like other new sectors in remote regions, defies what has been typically identified as the ideal conditions to start and grow a new sector • E.g. There are no incubators, so is the region defined by political borders itself an incubator? • Laypeople have identified the role that borders play in growing the Yukon ICT sector • And laypeople are communicating loudly that this issue must be improved!

  6. Yukon ICT Sector Border Flows Source: http://www.cbc.ca/news/canada/north/yukon-internet-fibre-dempster-northwestel-1.3291529

  7. Challenge with traditional Entrepreneurship Theory • Schumpeter’s argument reflects the time • Focus on innovation disruption • Therefore, public policy only had to focus on regulation and intervention • But, the research produced following these assumptions are from a time where public policy adequately funded… • Research • Education • Infrastructure • And before the rise of international investment regimes (IIR), which I’ll explain later

  8. Migration and Entrepreneurship • Systematic literature review of empirical studies of new sectors revealed several key conditions that contribute to the how and why of new sector emergence • One major theme were economic migrants • Already have sizable volume of research showing migrants (including refugees!) are on average more entrepreneurial than born-local citizens.

  9. Migration and Borders • Historically, physical boundaries, like mountains, oceans, etc. controlled migration • More modern politically-based borders control the flow of migration • But, the theories from border and migration studies don’t fit business or economics

  10. So, what about borders and entrepreneurship? Entrepreneurship requires… • Qualified professionals • Hard to bring in economic migrants when professional certifications don’t easily travel • Access to customers • Hard to delivery goods and services when crossing borders means new rules to follow

  11. Entrepreneurship in the age of IIR • Where borders don’t apply to one part of the entrepreneurship environment • International Investment Regime (IIR) • So-called trade deals designed to protect and benefit investors (with countries we are already successfully trading with!) • Growing criticism that IIR can only stifle and stop innovation required for entrepreneurship • Canada is the most sued country in the world in secret, for-profit arbitrations, and we lose nearly every time!

  12. IIR the context of self-governing First Nations in Yukon • According to Dr. Gus Van Harten, IIR are particularly bad for Indigenous peoples • FIPA trumps all Canadian law for 31 years in favour of Chinese firms and the Chinese government • Including the rights of self-governing First Nations in Yukon entrenched in agreements. • Treaties with First Nations are essentially null and void under FIPA when dealing with China • Source: http://yukon-news.com/news/first-nations-rights-at-risk-with-new-china-trade-deal

  13. In summary… • Borders define regions • Borders limit entrepreneurial activities • Borders may have historically benefited entrepreneurial activities • Which is changing in the age of IIR • More work needs to be done to answer the question if borders help or hinder new sector emergence and entrepreneurship.

  14. The End Thank you for your time! I welcome all feedback to translate this presentation into a journal article. Laurie Prange-Martin laurie@business.aau.dk

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