Abstract
The strategy of the institutionalization and development of business agglomerations, in any of its analytical aspects (industrial district, local production system, cluster, etc.), has not had great results in Spanish regions with low business-density, probably due to the difficulty of finding an adequate implementation framework in administrative, geographic, and institutional terms. Based on the limitations presented by the identification methodologies of business agglomerations in low business-density territories, in this work we propose some methodological corrections that allow for reconciling these economic realities with the institutional and geographical framework offered by the local action groups (LAGs). This reconciliation is a useful tool to take advantage of the economies of agglomeration and, consequently, to explore the possibilities of endogenous development in rural areas, so that it can be a factor to take into account when planning and executing the public strategy of local and rural development. Finally, the results obtained for the specific case of Extremadura, the only Spanish region listed as a less developed one in European rural development policies, are presented.
Highlights
IntroductionUnion for structuring the local and rural development strategy [1,2], this being the reason why industrial or rural development policies in areas with low business-density, or rural areas, must consider them
Conceived as a strategic tool, local action groups (LAGs) emerged with a dual function: on the one hand, they should be in charge of planning and channeling funds for the European rural development strategy in the territories, and on the other, they must contribute to the dynamism of the socioeconomic fabric of rural regions, directly attacking structural problems that affect them, such as depopulation and inequalities in living standards with respect to the urban environment [3] (p. 596), [4]
The local productive systems identified in Extremadura by the methodology proposed in this paper are characterized by their modest contribution to the regional level in terms of employment and number of firms, this being much lower than the contribution evidenced by the industrial districts identified in other studies at the national level [15,75,76,78]
Summary
Union for structuring the local and rural development strategy [1,2], this being the reason why industrial or rural development policies in areas with low business-density, or rural areas, must consider them. In a way, they exemplify the open participation of the main economic agents with a presence in each territory at the county level, bringing community decisions on rural development closer to the rural territories of the member states. The tools offered by the theory of business agglomerations for shaping the LAG strategy cannot be ignored; as such, we consider its adaptation to the rural environment necessary
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