Location competitiveness in specific pioneering theories: a condensed overview

Abstract

PurposeThe purpose of this study is to provide with a condensed overview of location competitiveness from the perspectives of specific pioneering theories to highlight the main factors, which lay the foundations for latter theories specifically dedicated to location-bound advantages, to specialization processes and, in fine, to location competitiveness.Design/methodology/approachThe study is divided into five major sections. First, location competitiveness is tackled from Smith’s frame of reference in the theory of absolute advantages. Second, Ricardo’s comparative advantages are scrutinized and specific complementary findings to Smith are highlighted. Third, Marshall’s industrial districts are investigated, as they constitute the linchpin of numerous latter approaches on location competitiveness. Fourth, the Keynesian perspective is considered as far as the role of government on location competitiveness is concerned. Fifth, endogenous growth theories are considered as they relate to capital, innovation and knowledge, which are factors intrinsically associated with agglomeration patterns and to location competitiveness.FindingsThe main finding of this literature review suggests that pioneering theories also identify location competitiveness as having a fundamental influence on firms’ ability to prosper in terms of wealth creation and of competitive advantages and vice versa.Originality/valueThe originality of this study is to investigate seminal authors from the perspective of location competitiveness and to highlight how numerous later researches dedicated to the subject are indeed based on pioneering theories. On this basis, it is subsequently possible to capture location competitiveness and to implement relevant policy measures to improve economic prosperity.