Spatial Implications of New Dynamics in Production Organisation: The Case of the Automotive Industry in the Basque Country

Abstract

This paper sets out to determine whether proximity constraints are more significant in new forms of production organisation in the automotive industry. An analysis is made of the extent to which new organisational technologies condition the internationalisation strategies of firms, with particular reference to whether geographical proximity requirements may condition the development of the automotive industry in the institutional and productive context of an intermediate region (such as the Basque Country) at risk from potential relocation towards central and eastern European countries (CEECs). The results derived from field work indicate that proximity constraints are not significant in the organisational configuration of the Basque automotive industry except in highly specific cases, thanks to the availability of solutions such as temporary agglomerations, new communication technologies and logistical systems.