Globalization and Economic Restructuring in Ontario: From Industrial Heartland to Learning Region?

Abstract

Recent contributions suggest that the current period is characterized by a paradoxical consequence of globalization in which the ever greater integration of national and regional economies into the global one accentuates, rather than minimizes, the significance of the local context for innovative activities. This paper sketches out the implications of this argument by drawing on the case of Ontario, Canada's largest province and industrial heartland. The restructuring triggered by the broader processes of globalization was accentuated after 1990 by Ontario's deeper integration into the North American economy following the signing of the Free Trade Agreement with the US and its successor, the North American Free Trade Agreement. These changes forced a number of critical responses on both firms and the government of the province, as they face the challenge of becoming more innovative and adopting the characteristics of learning regions. This experience is highly relevant to regions elsewhere that are attempting to shift their traditional industrial base to a more knowledge-intensive economy.