Philip McCann

Industrial Clusters: Complexes, Agglomeration and/ or Social Networks

The concept of industrial clusters has attracted much attention during the past decade, both as descriptive of an increasingly important phenomenon and as a basis for effective public intervention in the economies of lagging city-regions. However, there is much ambiguity in the way in which this concept is used, presenting an obstacle both to empirical testing and to realistic assessments of policy relevance. In this paper, we distinguish three ideal-typical models of processes which may underlie spatial concentrations of related activities, with very different implications both in terms of relevant evidence and the scope for promotional policies. Survey data for the London conurbation are used to explore the relation between concentration and different forms of linkage, with results which point to the dominance of pure agglomeration effects in this context at least.

THE CASE FOR REGIONAL DEVELOPMENT INTERVENTION: PLACE-BASED VERSUS PLACE-NEUTRAL APPROACHES

The paper examines the debates regarding place-neutral versus place-based policies for economic development. The analysis is set in the context of how development policy thinking on the part of both scholars and international organizations has evolved over several decades. Many of the previously accepted arguments have been called into question by the impacts of globalization and a new response to these issues has emerged, a response both to these global changes and also to nonspatial development approaches. The debates are highlighted in the context of a series of major reports recently published on the topic. The cases of the developing world and the European Union are used as examples of how in this changing context development intervention should increasingly focus on efficiency and social inclusion at the expense of an emphasis on territorial convergence and how strategies should consider economic, social, political, and institutional diversity in order to maximize both the local and the aggregate potential for economic development.

Smart Specialization, Regional Growth and Applications to European Union Cohesion Policy

McCann P. and Ortega-Argilés R. Smart specialization, regional growth and applications to European Union Cohesion policy, Regional Studies. The aim of this paper is to achieve two objectives. Firstly, it examines the smart specialization concept and explains the challenges involved in applying this originally sectoral concept to an explicitly spatial and regional setting. Secondly, it explains the ways in which this might be achieved so as to make the concept suitable as a building block of a reformed European Union cohesion policy.

Some Evidence that Women are More Mobile than Men: Gender Differences in U.K. Graduate Migration Behavior

In this paper we employ dichotomous, multinomial and conditional logit models to analyze the employment-migration behavior of some 380,000 U.K. university graduates. By controlling for a range of variables related to human capital acquisition and local economic conditions, we are able to distinguish between different types of sequential migration behavior from domicile to higher education and on to employment. Our findings indicate that U.K. female graduates are generally more migratory than male graduates. We suggest that the explanation for this result lies in the fact that migration can be used as a partial compensation mechanism for gender bias in the labor market.

Rethinking the Economics of Location and Agglomeration

Fundamental problems exist with the classical characterisation of agglomeration economies, since such definitions do not reflect the various cost issues on which firms may wish to economise. A lack of understanding of the relationship between the notions of market hierarchies and locational behaviour leads to confusion not only in applied economic interpretation, but more fundamentally in the construction of theoretical location models. In particular, neo-classical location theory can be shown to be crucially flawed as a basis for spatial analysis. This paper therefore attempts to provide an alternative definition of the various types of agglomeration economies such that the various strands of economic theory might be used in a more rigorous manner in the discussion of spatial increasing returns.

Sketching Out a Model of Innovation, Face-to-face Interaction and Economic Geography

Abstract This paper investigates the links between face-to-face interaction, the promotion of innovation, and the location behaviour of innovative firms. While face-to-face contact is an essential feature of most innovation behaviour, the importance of the frequency of face-to-face contact for innovation varies significantly according to different firm types. We therefore construct a simple optimization model in order to examine the relationship between the frequency of face-to-face interaction, the costs of land use, and the location of innovative firms. This allows us to distinguish between the types of firms which will be clustered together in space in order to foster innovation, from those innovating firms which will be more geographically dispersed. It will be seen that the model produces theoretical results which are largely consistent with both orthodox neo-classical urban economic models of location and also with much of the theoretical and empirical literature on the geography of innovation. Importantly, however, many aspects of the location of innovative firms which cannot be predicted on the basis of orthodox urban economic models are captured by this model.

Human Capital, Higher Education and Graduate Migration: An Analysis of Scottish and Welsh Students

This paper reports on a model of the sequential migration behaviour of some 76 000 Scottish and Welsh students, from their domicile location to the location of their higher education and on to their employment location. A logit model methodology is employed to analyse the choice of the location of the university attended, whether inside or outside Scotland or Wales. Then, within a GIS framework, migration-on-migration correlations and elasticities are estimated in order to identify the mobility effects of human capital acquisition. The results confirm the DaVanzo hypothesis that subsequent migration is related to previous migration and also the Sjaastad—Becker hypothesis that higher human capital individuals are more geographically mobile. However, there are institutional differences between the two countries which mean that the mobility effects of human capital acquisition have to be interpreted carefully in the light of other economic, geographical and social influences.

Multinationals and Economic Geography

After more than fifty years of systematic research on multinational enterprises (MNEs) what is apparent is that there is, as yet, no unified or dominant theory of the MNE. The objective of this book is to bring into focus one particular dimension of MNE behaviour and activity that has been relatively under-researched – namely the geography of the multinational enterprise – as understood through the lens of innovation and technological change. The authors clearly demonstrate that geography is becoming increasingly important for MNEs and, in turn, MNEs are becoming progressively more important for economic geography. The pivot on which this vital relationship turns is the creation, diffusion and management of new knowledge.

The Economic Performance of European Cities and City Regions: Myths and Realities

The ever-increasing concentration of people and economic growth in the largest cities relative to the rest of the country has slowed down or even reversed in many of the developed European countries over the last decade. This trend contradicts what the global cities, urban economics and new economic geography literature would predict. This trend can be interpreted from two points of view: (1) the trend is due to large obstacles to further large city urbanization and thus is inefficient or (2) this trend highlights alternative pathways to growth than the mega-city approach and may be as, if not more, efficient. This trend may be linked to Europes uniquely polycentric urban structure with high number of small- and medium-sized cities. In addition, improvements in the access to services, including broadband, outside large cities may have facilitated the higher growth rates of smaller centres and rural regions and increased their appeal for residents and firms. Last but not least, negative externalities in the large cities, such as congestion costs, pollution, labour crowding and high cost of living, may increase the appeal of smaller centres and rural regions.

Industrial alliances and firm location behaviour: some evidence from the US semiconductor industry

This study uses a log-linear model in order to analyse data on interfirm strategic alliances within the US semiconductor industry. The findings suggest that although the finding that the intensity of information transaction between firms is directly associated with geographical proximity, this effect is much less localized than would be usually expected. The results cast doubt on much of the existing qualitative literature on the nature of agglomeration externalities.