The Resurgence of Regional Economies, Ten Years Later

TLDR

Since the early 1980s, scholars have focused on the region’s role in organizing economic life, emphasizing institutions, industrial organization and transactions, and technological change and learning. The article examines three analytical lines and argues that none yet offers a fully convincing explanation for the resurgence of regional economies. The authors propose viewing the region as a locus of untraded interdependencies and illustrate this with remarks on contemporary European regional policies. These analyses make strong claims about the region’s role and suggest new implications for regional and industrial policy design.

Abstract

Since the early 1980s, social scientists have increas ingly focused upon the significance of the region to the organization of economic life. This article considers three main lines of analysis which have emerged. These concentrate respectively on insti tutions, industrial organization and transactions, and technological change and learning. Each has made strong claims about the role of the region. I argue here, however, that none has yet developed a wholly convincing explanation for the resurgence of regional economies. To do this it is necessary to understand the region as a locus of untraded interdependencies. This has implications for how we think about regional and industrial policies. I illustrate these points with some remarks on regional policies in contemporary Europe.