Anne Lorentzen

Proximity, Knowledge and Innovation in Peripheral Regions. On the Intersection between Geographical and Organizational Proximity

Abstract What role do various kinds of proximity play in the current and projected development of peripheral areas? In summarizing and drawing conclusions from this special issue on proximity, this paper elaborates on two core notions of proximity, geographical and organizational. It presents a framework in which the relationship between geographical and organizational proximity is conceptualized in a way that is somewhat different from previous contributions, notably by the French School on Proximity. The framework is used to evaluate the outcomes of the various contributions in this issue. The findings endorse the idea that economic performance relies more on localized capacities to build “global” connections, complemented with an adequate local resource base, than on local networking and clustering.

Knowledge networks in local and global space

The objective of the paper is to discuss the space and scale of knowledge networks for innovation. The point of departure is a critical review of territorialised innovation theories according to which the source of growth and competitiveness is to be found in the innovative interplay among local actors and institutions. The region is believed to play a particular role as incubator or mediator for small firms. On this background the question raised is what globalisation and the emergence of time and space shrinking technologies imply to the spatial scale of knowledge networks. It is shown that the territorialised innovation theories rest on simplistic perceptions of embeddedness and space, and on functional notions of proximity which treat the firms as black box. The result is a considerable regional determinism. On the basis of recent network theory and empirical results, it is argued that firms do find knowledge sources on different spatial scales. Global networks or distant knowledge sources are particularly beneficial to innovation and firms are able to establish and participate in knowledge networks on all spatial scales. The political focus on local and regional innovation networks should therefore be changed and the role of the region redefined.

Cities in the Experience Economy

This article addresses the opportunities of cities, big and small, in the experience economy. It proposes an understanding of “experience economy”, which encompasses not only entertainment and culture, but also services and places. To territorial development, the most interesting kind of experience consumption is the one co-located with its production. It is interesting because it invites people to stay and spend their money, either as residents or as tourists. Art and culture is known to cluster, and in big cities, the variety of the experience offer is an attraction in itself. Nevertheless, small cities embark on experience-based strategies, for example, related to events and branding. The article develops a theoretical framework that unfolds the territorial aspects of the experience economy. It does so in a comparative perspective, with a view to earlier (and coexisting paradigms), namely the industrial and the knowledge economy. Based on literature review it analyses the location patterns, the role of globalization, the changing governance forms and the mobility patterns, the latter being of utmost importance to the development of experience-based activities on the global market.

The Geography of Knowledge Sourcing—A Case Study of Polish Manufacturing Enterprises

Abstract The assumption that geographic proximity between innovating partners is of great importance is widely unquestioned and it has been documented by studies of high-tech areas in advanced countries. Until now, the pattern of cooperation among firms in low- and medium-tech industry in more peripheral locations has not been a subject of study to the same degree. This article sets out to question the rationales behind the territorial innovation theories, and, in particular, their views on the role of the region in the era of globalization. It is found that the regional focus is less fruitful when it comes to explaining the innovation pattern of individual firms today. Notions of proximity are particularly suited for identifying the spatial variety of inter-firm relations, in combination with notions of firm capabilities. Against this background, the article detects the pattern and role of knowledge sourcing of low- and medium-tech firms in a peripheral context of Poland. It sheds light on the capability of firms to source useful knowledge for innovation, and particularly, on the geography of their knowledge sourcing. The analysis shows that the firms are capable of sourcing knowledge in a flexible and complex way, and that a division of labour exists between regional, global and national knowledge sources. Global sources are seen as the most important sources of innovation, while the regional level basically provides a labour market and entrepreneurship. Thus, the research of this article does not support ideas of clustering or local buzz or of perceiving the region as mediator. On the contrary, the research suggests that knowledge sourcing for innovation is global. The theoretical part of the paper is rooted in a critical assessment of the ongoing debate on “proximity”. (A more detailed assessment can be found in a paper by the author presented at the ESF exploratory workshop on “The governance of networks as a determinant of local economic development”, San Sebastian, 16–18 November 2005, and at the Regional Studies International conference on ‘Regional Growth Agendas’ on 28–31 May 2005 in Aalborg University, Denmark.) The empirical focus of the paper is knowledge sourcing strategies at firm level. The empirical part of the paper is based on the analysis of interviews performed at 23 companies in two Polish cities in 2000, 2001 and 2002 (Lorentzen, 2005).

The Role and Transformation of the City in the Experience Economy: Identifying and Exploring Research Challenges

The article introduces the special issue on the role and transformation of the city in the experience economy and raises some research issues. The issue focuses on the transformative aspects that can be identified in relation to experience oriented planning and development. We show how experience economy is much related with affluence and the growth of leisure demand, and that place has a particular role to play in terms of amenities, narratives and identities. Places, and in particular cities, undergo development or commodification to attract leisure consumers, which are increasingly mobile. Both urban systems (the relative position and role of cities) and urban structures (the city fabric) change in the experience economy, and so does means and ends of planning, which can be seen to be increasingly entrepreneurial and stakeholder based.

The Experience Economy and the Transformation of Urban Governance and Planning

This article discusses the relationship between experience-oriented development and urban governance and planning, based on a case study of the city of Frederikshavn (DK). Triggered in 1999 by a sudden local economic crisis, Frederikshavn entered a process that reinvented its “mental frame” and transformed not only its urban development, but also its identity, image and governance towards an experience economic and entrepreneurial profile. We investigate what influenced urban strategy-making and planning in Frederikshavn and allowed the city to move towards an experience economy. Municipal investments, internal reorganization and public–private cooperation played significant roles. Traditional spatial (land use) planning and regulation were replaced with transformative urban growth strategies and more risk-taking experimental approaches. The municipality became a project partner that favours “actions because they create new opportunities”. Experience-oriented projects thrived in this entrepreneurial environment. However, recent political tensions between growth and welfare agendas indicate that Frederikshavn thereby exemplifies a test to the reaches or limits to government-supported neoliberal approaches in urban development and governance—and thereby also to the role of the local state.

Post-industrial growth: experience, culture or creative economies?

This illuminating Handbook presents the state-of-the-art in the scientific field of experience economy studies. It offers a rich and varied collection of contributions that discuss different issues of crucial importance for our understanding of the experience economy. Each chapter reflects diverse scientific viewpoints from disciplines including management, mainstream economics and sociology to provide a comprehensive overview.

Industrial development, technology change, and regional disparity in Hungary

Abstract In this paper the main conclusions concerning regional differences in enterprise development in Hungary will be summarized, and the fields and scope of action at enterprise and at the level of the authorities will be outlined briefly. The empirical results need to be put into a wider perspective, and therefore the first part of the paper contains a brief overview of the process of transition and of the regional economic development of Hungary.

Regional development and institutions in Hungary: past, present and future development

Abstract The author investigates what the transition from planned to market economy implies for regional development in Hungary. The focus is the role of institutional change to economic development of the regions. After 1989, new regional and local institutions were created, supported by the Poland and Hungary Action for Researching the Economy programme. The old three‐level regional administration was redefined, but resources are few and competences unclear. The new institutions’ ‘bottom‐up’ approach and their business‐orientation seem to match the conditions of the prosperous west, while they meet considerable difficulties in the depressed east. Alternatively, coordinated government action and cooperation between enterprises and administrators may represent a key to development.

A platform for local entrepreneurship: The case of the lighting festival of Frederikshavn

This article discusses the birth and evolution of a festival that has targeted the entrepreneurial dynamics in the provincial city of Frederikshavn (North Denmark). The festival was initiated in 2004 to confront a local economic crisis and has enjoyed support from a broad range of stakeholders. It started as a cultural project with initial scepticism among the local lighting firms; however, later they realized that supporting the festival was beneficial to them. The concept of temporary geographical proximity is applied to assess the festival’s importance in escaping from the city’s economic lock-in. Empirically, the article is based on interviews with a wide range of actors across the organizing network. The article offers some preliminary lessons about what such an event can contribute to local entrepreneurship.