Regional Deindustrialization and Re-bundling: Evidence from the Merger of the Former German Hoechst and French Rhône-Poulenc Groups

Abstract

large part of the work in economic geography and other social sciences has focused on new growth prospects due to the establishment of global production chains and the rise of new clusters of industrial activity. Much less attention has been paid to former growth industries and regions that have recently experienced shrinking processes due to internationalization. This paper will explore the cases of two chemical regions, i.e. southern Hessen, Germany and Rhône-Alpes, France. These two areas have both undergone drastic restructuring since the mid-1990s, due to the merger of the prominent chemical groups Hoechst and Rhône-Poulenc into Aventis. Instead of investigating the development of the core activities at Aventis, we will focus on the operations that were considered less important and consequently split off. In addition to the negative consequences produced by these activities, in our analysis we also emphasize regional opportunities which arise from competence building, reorientation and new firm formation. These processes can be viewed as re-bundling existing and new knowledge bases with other resources to help overcome economic crises and develop a new competitive edge. As such, the paper aims to contribute to a relational understanding of economic globalization and regional restructuring.