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 AkeE. 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, Olshausenst