Britta Klagge

Spatial Proximity Effects and Regional Equity Gaps in the Venture Capital Market: Evidence from Germany and the United Kingdom

The issue of ‘equity gaps’ has loomed large in recent discussions of enterprise formation and development, both in the United Kingdom and in Germany. One particularly intriguing, but highly elusive, aspect of this issue is the question of whether equity gaps have a regional dimension: are certain regions at a systematic disadvantage with respect to the provision of equity capital? In this paper, we explore this question in the context of the UK and German venture capital industries, drawing both on unpublished industry data and on information obtained from original surveys of venture capital firms in the two countries. We report clear evidence that the venture industries in both countries are spatially constituted. Despite important national differences, venture capital firms tend to be concentrated in identifiable clusters and their investment outcomes show clear evidence of spatial proximity effects; investment is disproportionately concentrated in those regions that also contain the major clusters of venture capital firms. However, how far this spatial form produces regional equity gaps is hard to determine. Venture capitalists themselves argue that they do not intentionally discriminate between regions in their decisionmaking, and many acknowledge the existence of funding and deal-size gaps but not regional gaps per se. But their perception of project risk is, nevertheless, regionally sensitive. We argue that the notion of a simple supply gap overlooks the way in which the localised form of the industry is based on a dynamic learning process in which demand and supply processes combine with their embeddedness in social networks and individual perceptions in a mutually reinforcing way. Less-favoured regions, with low investment rates, few local venture capital firms, and a dearth of experienced specialist intermediaries, may thus be trapped in a situation of both depressed demand for and supply of venture capital investment.

Metropolitan cooperation in Europe: Theoretical issues and perspectives for urban networking 1

In recent years urban entrepreneurialism has become a metropolitan strategy to cope with the challenges of an increasingly flexible global economy. Building on a debate about the problematic nature of this strategy we argue that cooperation of cities, or metropolitan cooperation, constitutes a new policy option for local actors which has the potential to overcome the negative effects of urban competition. In order to explore this potential we analyse the fundamental changes of the local state and existing cooperative efforts. This analysis shows that so far metropolitan cooperation is mainly experimental in character and a policy option that moves forward by trial and error and by learning from success and failure. We see this as partly due to a lack of an adequate theoretical framework dealing with the economics of urban systems. By way of synthesizing different academic discourses we suggest a conceptualization of metropolitan cooperation which takes into account the potential economic benefits and institutional requirements of cooperative behaviour of urban actors. Based on these considerations we establish criteria for suitable thematic fields of metropolitan cooperation and suggest forms of institutionalization.

Decentralized electricity generation from renewable sources as a chance for local economic development: a qualitative study of two pioneer regions in Germany

BackgroundEmpirical research on the local economic effects associated with decentralized electricity generation from renewable sources has only just started. So far, most studies focus on quantifying economic effects and neglect the conditions and constellations which support and enable local economic development based on decentralized electricity generation. This, however, is the focus of this paper which looks at these issues, employing the value chain concept in combination with a governance perspective.MethodsEmpirically, we take a qualitative approach and analyze two case studies of pioneer regions, in which decentralized electricity generation from renewable sources has developed very dynamically. The case study regions are Soltau, with a special focus on biogas production, and Emden, where wind energy plays a special role. Based on the early activities of some pioneers, these regions have developed specific actor constellations and organizational structures and have entered development paths in which renewable energies became an important economic factor.ResultsThe analysis highlights the importance of institutional context and supportive governance structures for an early advancement of decentralized electricity generation from renewable sources, with a key role of local actors and governance constellations. It also points to the importance of cooperative relationships among local business actors for creating a competitive advantage for (some) regional firms.ConclusionsOur analysis shows that with the geographical proliferation of electricity generation from renewable sources, specialized firms tend to reach beyond their regions, thus offering first-mover advantages for firms in pioneer regions in comparison with latecomers.

High-skilled Return Migration and Knowledge-based Development in Poland

It is by now well known that return migration of the highly skilled can have a significant impact on knowledge-based development in the regions to which they return. Whereas previous research has mainly focused on developing and newly industrializing countries, this paper looks at high-skilled return migration in an East European transformation economy, namely Poland. In our paper, we propose an analytical framework which integrates migration theory and regional development perspectives. Based on narrative interviews with high-skilled return migrants in Warsaw and Poznań, we show that high-skilled return migrants have an impact on economic development by acting as both investors and innovators, i.e. that they transfer and successfully integrate financial means as well as different types of knowledge into these local economies. Furthermore, the Polish example illustrates that social relations and institutional context are crucial in understanding how high-skilled return migrants contribute to knowledge-based development.

The Evolution of the Wind Industry and the Rise of Chinese Firms: From Industrial Policies to Global Innovation Networks

Powered by a growing environmental awareness and the perception of ending fossil-based energy sources, wind energy has evolved as a reliable, mature and increasingly price-competitive alternative to fossil and nuclear energy sources. Along with incremental technological progress, the wind industry, i.e. the development and manufacturing of wind turbines, has developed very dynamically both with respect to organization and location. Originating mainly in small and medium-sized enterprises in a core region of Northern Europe, the wind industry is now a global industry with an increasing significance of Chinese turbine manufacturers. Informed by evolutionary thinking and recent discussions on the concept of path dependence, we will trace this organizational change and geographical shift over time and space. We will show that the development of the wind industry is an example of on-path evolution in which the accumulation of small and incremental change has led to fundamentally new structures. The main drivers of this development have been politics and various types of public policies as well as, more recently, the globalization of knowledge production in global innovation networks—thus illustrating the need to better integrate the role of the state and of institutions at multiple levels into evolutionary thinking.

Changes in the German Urban System—A Financial-Sector Perspective

Urban systems analysis and especially the seminal contributions of the Globalization and World Cities Research Network (GaWC) so far mainly rely on the analysis of national and international office geographies of advanced producer services firms. This paper shows how the geography of demand-supply relationships and associated knowledge flows adds important qualitative information to the office geographies of the Globalization and World Cities Research Network. It contributes to our understanding of intercity relations and networks—and thus of urban systems more generally. We illustrate our approach by looking at private equity firms and their knowledge management strategies in Germany. Empirically, we analyze private equity firms’ business relations and networks with external partners as well as their geographical organization. While private equity firms’ geographical organization in Germany is characterized by decentralized concentration with nodes in Frankfurt and regional financial centres, there is evidence that among the latter Munich plays a special role. Only in Munich has private equity—cross-fertilized by other local financial actors—initiated a self-supporting development which strengthens Munich as a financial centre. The paper illustrates how the dynamics of private equity and its knowledge management lead to Germany’s financial system having a more tiered structure and how qualitative network analysis can help deepen our understanding of urban systems development.ZusammenfassungJüngere Untersuchungen von Städtesystemen, insbesondere die Beiträge des Globalization and World Cities Research Network (GaWC), beruhen bisher überwiegend auf der Analyse nationaler und internationaler Bürostandorte von unternehmensbezogenen Dienstleistungsunternehmen. Demgegenüber zeigt dieser Beitrag, wie die Geographie von Nachfrage- und Angebotsbeziehungen sowie von Wissensflüssen die Bürostandortforschung der GaWC-Forschergruppe um aussagekräftige Erklärungen zu Relationen zwischen Städten und damit zur Struktur und Entwicklung von Städtesystemen ergänzen kann. Wir erläutern unseren Ansatz anhand einer Untersuchung des Wissensmanagements von Private Equity- bzw. Kapitalbeteiligungsgesellschaften in Deutschland. Im Mittelpunkt der empirischen Analyse stehen die Beziehungen und Netzwerke zwischen Kapitalbeteiligungsgesellschaften und ihren externen Partnern sowie deren räumliche Muster. Die geographische Verteilung von Kapitalbeteiligungsgesellschaften in Deutschland ist durch eine dezentrale Konzentration in Frankfurt am Main und den regionalen Finanzzentren gekennzeichnet. Unsere Untersuchung zeigt jedoch, dass der Standort München unter den regionalen Finanzzentren eine besondere Entwicklung aufweist. Lediglich in München haben Private Equity-Aktivitäten – unterstützt durch andere lokale Finanzakteure – eine sich selbst verstärkende Entwicklung des Finanzzentrums eingeleitet. Damit tragen die Dynamik von Private Equity und das damit verbundene Wissensmanagement zu einer Differenzierung des deutschen Finanzsystems bei, in deren Folge München sich als sekundäres nationales Finanzzentrum mit einer Spezialisierung im Bereich Private Equity, insbesondere Frühphasenfinanzierung, etabliert. Insgesamt verdeutlicht die Untersuchung, wie qualitative Netzwerkanalysen unser Verständnis für die Entwicklung von Städtesystemen erweitern können.

Energy cooperatives in Germany – an example of successful alternative economies?

ABSTRACT Because of their democratic governance and value-driven approach cooperatives are often regarded as a prime example for alternative economies and contributing to (more) equitable economic development. Furthermore, they theoretically combine production and consumption and are often regionally-oriented. The recent boom of German renewable-energy cooperatives provides an interesting example of how cooperatives can also make an important contribution to sustainable development, here the German energy transition, and its social acceptance. The paper will first show how a specific regulatory environment supported this development and then analyse how German energy cooperatives cope with legal changes leading to less favourable institutional conditions. Based on a comprehensive survey, we examine whether they can, apart from their legal form, be regarded as alternative economies. Our analysis is guided by a set of criteria derived from Gibson-Graham’s diverse-economies framework, including voluntary and paid work, (origin of) borrowed capital, size and structure of membership, business goals and strategies, especially after the legal changes, as well as regional orientation. We will show how different categories of German energy cooperatives differ with regard to their business models, alternative-economy characteristics and coping strategies. The future development of energy cooperatives in Germany will very likely be as diverse as their recent history, thus illustrating the diversity of alternative-economy organisations as stipulated by Gibson-Graham. Most of them, however, deal with the new regulatory environment pro-actively and are developing business models, which are independent from public support and might lead to new cooperative strategies at the shifting interfaces between state, market and civil society.

Finanzialisierung der Windenergienutzung in Deutschland

Eine der grosten politischen und gesellschaftlichen Herausforderungen in Deutschland und weltweit ist derzeit der Umbau der Energiesysteme in Richtung einer nachhaltigen, auf erneuerbaren Energien (EE) aufbauenden Energieversorgung. Dabei nimmt die Windenergie als ausgereifte und erprobte Technologie bereits jetzt eine zentrale Rolle ein. Sie stellte im Jahr 2011 knapp zwei Drittel der weltweit installierten Kapazitat zur Stromerzeugung aus erneuerbaren Energie quellen (grose Wasserkraftanlagen ausgenommen) und wird in Zukunft weiter stark wachsen (vgl. Deutsche Energie-Agentur 2011; REN21 2012, S. 13ff.).

Entwicklungstrends europäischer Metropolregionen und konzeptionelle Bausteine für das Hamburger Leitbild „Wachsende Stadt“

Ein Leitbild mit der Perspektive der „wachsenden Stadt“ ist angesichts des Strukturwandels der Metropolregionen in Europa und in Deutschland als hochst ambitionierte Aufgabe anzusehen. Angesichts des geringen gesamtwirtschaftlichen Wachstums und des sozio-demographischen Wandels mit der Prognose einer schrumpfenden Bevolkerungszahl sind die dabei zu bewaltigenden Handlungsanforderungen vielfaltig und komplex, aber auch aus noch naher zu erlauternden Grunden unterstutzenswert. Der folgende Beitrag stellt einige zentrale Politikfelder in den Mittelpunkt der Betrachtung, die aus erkennbaren Trends und Leitlinien der Stadtentwicklung ausgewahlter europaischer Metropolregionen hergeleitet werden. Daraus sollen themenbezogene Handlungsvorschlage fur das Leitbild „Metropole Hamburg — Wachsende Stadt“ erarbeitet werden.1 Die Auswahl einzelner Themen erfolgt in einem generellen Rahmen, der durch eine knappe Zusammenfassung des gegenwartigen stadtpolitischen Diskurses gebildet wird.

The Return of Depression Economics and the Crisis of 2008

This book is mainly a revised version of an earlier volume by Paul Krugman from 1999, enriched by some passages and chapters commenting on the recent financial and economic crisis. Since the publication is obviously propelled by the prospective marketing value of the author’s fresh Nobel Prize for Economics, it has to satisfy readers interested in instructive economic analysis as well as those who want to learn more about the celebrity behind. The resulting book is an entertaining read, which is quite surprising given the complexity and seriousness of its topic. While style and also the somewhat simplistic presentation of facts and interpretations are obviously geared towards a broad readership, the book nonetheless makes interesting points and provides a good starting point for a much-needed discussion of the crisis beyond mere academia and politics. This review will focus on the book’s political intention, its academic merit, and its significance for geography and regional research.