REGIONALNA KONKURENTNOST Uvodna rijec Mr.sc. Marija Rajakovic MRR VG, Uprava za integrirani regionalni razvoj

1. REGIONALNA KONKURENTNOSTUvodna rijecMr.sc. Marija RajakovicMRR�VG, Uprava za integrirani regionalni razvoj

2. Globalizacija je utjecala na to da su regije postali glavni cimbenici konkurentnosti u globalnoj ekonomskoj utakmici.

4. �to je regionalna konkurentnost? Vecina definicija regionalne konkurentnosti odnosi se na: �sposobnost regija da proizvode robu i usluge koji ce biti konkurentni na svjetskom tr�i�tu� (EK, 1998)

7. Triple Helix

10. Contents About regional competitiveness Some basic measurement A bit of theory Towards typologies of regions Implications for regional policy

11. 1. Does regional competitiveness exist? In an increasingly mobile and competitive world, regions compete in attracting and retaining: Firms (including FDI) Residents and workers (talented staff, seniors, etc.) Visitors Capital (equity as well as property investments) Public funds (EU and national level) -> So regional competitiveness exists

12. 1. Why competitiveness of regions matters Regions have increasingly become engines of the global economy Existing economic foundations are being shaken up Regions do not have efficient compensation mechanisms Decentralisation and devolution of powers Competitive regions attract more investment and jobs

13. 1. Measurement: Some definitions Productivity investment/infrastructure sectoral structure innovation entrepreneurial culture agglomeration effects public policy Hours worked sectoral structure cultural issues legal frameworks Employment rate work force education sectoral changes social inclusion Dependency rate age structure of population migration cultural/gender issues, eg female participation in the labour force

14. 2. Depen-dency ratio (2001)

15. 2. Employ-ment rate (2001)

16. 2. Total Hours worked (2001)

17. 2. Produc-tivity (2001)

18. 2. GDP per capita (2001)

19. 2. Components of performance

20. 2. Measuring drivers of productivity

21. 3. A bit of theory: Regions as sites of export specialisation Regional export-based and export-multiplier models Closely related to factor endowments and neo-classical thinking Comparative advantage based on wage costs, capital costs, raw material costs, and intermediate input costs Quantifiable to a large extent -> Rise in factor prices makes model not sustainable

22. 3. Another theory: Regions as sources of increasing returns Cumulative causation (Kaldorian) Local industrial specialisation Region as source of external increasing returns (Marshallian industrial districts) Localisation economies � specific to industries Increasing returns can be measured in terms of costs and value created Basis for geographic cluster policies Quantification has its limits -> Across Europe, cost-driven clusters now tend to run into problems (e.g. Italian districts)

23. 3. Still another theory: Regions as hubs of knowledge Local innovative milieux (e.g. Gremi school) Innovation as an interactive learning process Urbanisation economies as part of agglomeration economies � city size (Jacobs) Increasing focus on culture, connectivity, openness and diversity (Florida) Qualitative approach more common

24. 3. Interim conclusions about the theory Debate is foggy due to various disciplines not being properly connected Tension between theory and empirics Ability to measure competitiveness varies Not much attention to conditions under which theories apply Policy makers and practitioners find theory not much helpful; -> A compelling need for a unifying framework

26. �.Andthe RegionalCompetitiveness Hat

27. 4. From Theories to Types of Regions Type 1: Production site region (based on export base and multiplier models) Type 2: Increasing return regions (based on cumulative causation theories) Type 3: Knowledge hubs (based on innovative milieux and urbanisation economies)

32. 4. Typologies: Sharp differences among regions Population density Proximity to major urban centers % of workforces educated % of R&D spent Core/periphery of Europe Quality of ICT infrastructure Quality of life reputation Reconversion challenges -> There is nothing such as a typical �successful� region

33. 4. Characteristics and typologies

34. 4. Regions can move over time

35. 4. Policy mix by type of region

36. 5. Implications for regional policy Tools for measuring competitiveness policies are still what is important cannot be easily measured -> qualitative research complements quantitative work No homogenous policies for heterogenous regions � what model are you in? Address strenghts / opportunities and weaknesses / threats from a given competitiveness model Every model requires specific investments and strategies Regions are not static � a strong need to monitor and move between models over time

37. 5. Implications for regional policy (2) Key drivers vary among types of region Production site model: can kick-start development but is not sustainable in the long run Adoption to �increasing return models� is essential for remaining competitive Knowledge hub model only accessible for larger agglomerations (Zagreb?) Elements of strategies: Rooting foreign investment, Networking, Clusters

38. Further information: ECORYS Brussels: Janmaarten.devet@ecorys.com CE/ECORYS for EC DG Regio: A Study on the Factors of Regional Competitiveness: http://ec.europa.eu/regional_policy/sources/docgener/studies/pdf/3cr/competitiveness.pdf

39. Methodology for the Analysis of the Regional Competitiveness Index 2007 Kre�imir Jurlin, Institute for International Relations, Zagreb, Croatia

40. Partners in the project

41. TASK: to create a tool for: Assessment of strengths and weaknesses on the level of counties and NUTS2 regions. Evaluation of national strategies of regional development Preparing the regional operational programs

42. OUTPUT: methodology, data and analysis Methodological approach (WEF, IMD) Gathering data available on the county level Creation of reliable indicators Conducting survey Analysis and ranking Explanatory work

43. METHODOLOGY (1)

44. METHODOLOGY (2)

45. METHODOLOGY (3)

46. FINAL OUTCOME (8 pillars)

47. FINAL OUTCOME (ranking) Ovaj izraz za �company quality� mi ne le�i, za�to to ne opi�e� vi�e kao u WEF-u, npr. sofistication of company operations and strategy, dakle mo�da �qualty of comp�any oerations and strategies�. Onda mo�da isto staviti promjenu za buisdness environment u �quality of busisness environment�.Ovaj izraz za �company quality� mi ne le�i, za�to to ne opi�e� vi�e kao u WEF-u, npr. sofistication of company operations and strategy, dakle mo�da �qualty of comp�any oerations and strategies�. Onda mo�da isto staviti promjenu za buisdness environment u �quality of busisness environment�.

48. FINAL OUTCOME (Survey vs. Hard data)

49. End of presentation