Drivers Of Regional Economic Growth Research Articles

Drivers of Regional Economic Growth in Hungary before and during the Pandemic Crisis

Abstract The 2010s saw a gradual improvement in economic growth in Hungary, which was noticeable in all regions. In this research, we examine the post-crisis economic development trends in a NUTS 3 level disaggregation in the context of the dependent market economy model. The research uses descriptive and multivariate statistical analysis to shed light on the main regional trends. Notable changes occurred mainly in the top and middle performing counties in terms of output, while the bottom of the ranking was characterized by stagnation. Territorial disparities have temporarily narrowed, but there has been no significant catching up of lagging regions.

Upaya Pemerintah Daerah dalam Mewujudkan Prinsip Tata Kelola Perusahaan Daerah yang Baik

The role of government investment through regional state-owned companies is an effort to strengthen regional revenue originating from separated regional assets. The purpose of establishing a regional limited liability company is as one of the drivers of regional economic growth and development. The purpose of this paper is to explain the role of local governments in realizing the management of regional companies based on the principles of good corporate governance. The research method used is normative legal research method. The regional government in its position as the majority shareholder has the authority to manage, regulate and intervene in the management of regional state-owned companies. As the majority shareholder, the local government has authority that is not delegated to the board of directors and commissioners. Likewise with the application of the principles of good corporate governance. The role of local government is to supervise, monitor and evaluate the implementation of the principles of good corporate governance developed within the company, especially for directors, commissioners and employees.

TRANSFER PEMERINTAH PUSAT SEBAGAI WUJUD DESENTRALISI FISKAL DALAM PERTUMBUHAN EKONOMI DAERAH SEBAGAI BENTUK UPAYA MENGATASI KETIMPANGAN PENDAPATAN, EFEKTIF ATAU TIDAK?

This study aims to determine the effectiveness of central government transfers to local governments in the current era of autonomy as a form of fiscal decentralization as a form of eliminating inequality in Indonesia. The writing method uses qualitative methods with comprehensive analysis and obtaining secondary data. Central Government and the use of public funds according to the priorities and aspirations of the community. Therefore, conditions like this, the role of private investment and regionally-owned companies are highly expected as the main drivers of regional economic growth and development. This means that fiscal decentralization in this autonomous era cannot be said to be fully effective

Spatial Differentiation of Regional Innovation Capacity in Jiangsu, China

This article addresses regional innovation capacity as an important driver of regional economic growth and a way to achieve coordinated regional development. With the number of patents as the index of innovation capacity measurement and the data from the Statistical Yearbooks from 2008 to 2017, we explore the spatial differentiation of innovation capacity in Jiangsu, China. Spatial clustering analysis and spatial autocorrelation analysis are used for this research. The result shows that the innovation capacity of 13 cities in Jiangsu is categorized into four levels. The gradient innovation capacity is weakened significantly from the south to the north in space. Jiangsu province has the distribution of regional innovation capacity level as the characteristics of spatial agglomeration. However, the province also has the characteristics of stage evolution, which shows the trend of aggregation, dispersion, and reagglomeration. The research results have important implications for optimizing the regional innovation system in Jiangsu Province.

The Effect of Micro, Small and Medium Enterprises on Economic Growth

Micro, small and medium enterprises (MSMEs) are declared very capable of playing a crucial role for a region, specifically as one of the drivers of regional economic growth. Micro, small and medium enterprises (MSMEs) are defined as a means to introduce regional creative products and provide business opportunities for enterprise actors in the regions. In addition, the role of micro, small and medium enterprises (MSMEs) actors is considered very vital in order to increase per capita income and improve the economy of a region. Consequently, micro, small and medium enterprises (MSMEs) are required to actively participate in developing the country’s economy. The results of the study showed that 90.1% of MSMEs provided significant effects on the rate of economic growth.

Understanding territorial innovations in European regions: Insights from radical and incremental innovative firms

AbstractInnovation is widely considered to be a key driver of regional economic growth and resilience. Economic openness, research and development (R&D), public support, absorptive intensity, human capital and innovation cooperation are known to produce spill‐over effects on regional innovations and growth. Several studies within individual European countries have shown different results from these activities. The same is true for firms’ approaches to innovations (open versus closed or radical versus incremental innovation). Using the Community Innovation Survey datasets, we analysed 1,820 firms from ten European countries to assess the factors that significantly influence innovative outputs from the perspective of radical and incremental small and medium‐sized enterprises (SMEs) and large firms. The results emphasize the significance of human capital intensity, suggesting that both incremental and radical innovative firms in these regions are effective in absorbing new knowledge that improves new product development. On the other hand, surprisingly, our results contradict previous assumptions about the importance of innovation cooperation and demonstrate the lack of significance in most of the collaboration activities, signifying some extent of unviability in R&D cooperation in both radical and incremental innovating SMEs and large firms. This study has theoretical and practical implications for regional innovation policies in these regions.

Nurturing regional innovation: the effects of bank competition in the USA

Whilst corporate innovation is one of the key drivers of regional economic growth, question remains over how regional corporate activities are affected by local banking market structure. By attaching regional corporate innovation activities to a market power hypothesis, this paper examines (1) if regional innovation activities would benefit from the improved banking market competition and (2) the variation of banking market competition effects on innovation outputs over unique regional characteristics, such as state-level R&D intensity and distribution of innovation activities. Using patent and citation data and local bank data from 51 states in U.S between 1992 and 2004, we show that improved local banking market competition increases both the quantity (patents) and quality (citations) of regional innovation outputs. It is also found that such a favourable effect on regional innovation is especially stronger for those states with low R&D intensity and those with more concentrated innovation activities.

Nurturing regional innovation: the effects of bank competition in the USA

Whilst corporate innovation is one of the key drivers of regional economic growth, question remains over how regional corporate activities are affected by local banking market structure. By attaching regional corporate innovation activities to a market power hypothesis, this paper examines: 1) if regional innovation activities would benefit from the improved banking market competition; 2) the variation of banking market competition effects on innovation outputs over unique regional characteristics, such as state-level R&D intensity and distribution of innovation activities. Using patent and citation data and local bank data from 51 states in the USA between 1992 and 2004, we show that improved local banking market competition increases both the quantity (patents) and quality (citations) of regional innovation outputs. It is also found that such a favourable effect on regional innovation is especially stronger for those states with low R&D intensity and those with more concentrated innovation activities.

Highly skilled migrants and technological diversification in the US and Europe

We have investigated the impact of highly skilled migrants on the evolution of the technological portfolios of European and US sub-regional geographical areas. The specific contribution of the international mobility of inventors on the technological diversification of the innovation output, a driver of regional economic growth and of the emergence of new industries, has been neglected in previous literature. Migrant inventors have been identified by comparing their nationalities with the residence addresses reported in the patent documents. The diversification of the local technological portfolio has been measured as the number of fields of specialization, which were identified from a comparison with the aggregate portfolio of all the analyzed geographical areas. The measure has been calculated using the Hidalgo–Hausman method of reflections on patent data. The applied econometric models show a negative relationship between migration and diversification of technological specializations, thereby supporting the presence of a specialty matching mechanism associated with migration. We have also computed indicators of the relative rarity of a technological field across regions. Rarity results to be positively correlated with the local incidence of migrant inventors, thus suggesting that destination regions are more likely to enter specialization fields of higher complexity.

Investment Development Strategy Management in Mahakam Ulu Regency, Indonesia

Investment activities pay attention to a very important role as a driver of regional economic growth. The focus of the research is about several models that are interconnected with strategies in attracting investor interest. From the scope of realization of foreign investment is more dominant than domestic investment in Mahakam Ulu Regency, so there needs to be a strategic effort to develop investment related matters. The research approach is development based and descriptive, where researchers intend to describe existing phenomena by analyzing and presenting facts systematically to achieve the intent and purpose of conducting field studies. Existing data types used are quantitative and qualitative data during March-September 2019. Analysis of data with interactive models and processed using Strength analysis, Weakness, Opportunity, and Treath (SWOT). The results of the analysis of investment strategies in terms of strategic policies, emphasize the choice of policies to provide various investment facilities rather than providing incentives. In order to attract new investment, encourage increased investment through the provision of incentives, and ease of investment, in terms of strategic policy the priority of policy choices is to provide a variety of investment facilities rather than incentives. Keywords: strategy management; investment (foreign and domestic); development DOI : 10.7176/JPID/51-07 Publication date: November 30 th 2019

Export-oriented industrial technologies as drivers of regional economic growth

Export-oriented industrial technologies as drivers of regional economic growth

ROLE OF ENTREPRENEURIAL CULTURE AS THE DRIVER OF ECONOMIC GROWTH

The role and function of entrepreneurial culture get more important and is the main driver of sustainable regional and national economic growth in Indonesia. The specific purpose of this article is to explain the role of entrepreneurial culture as the driver of regional economic growth in Central Java, Indonesia. For the purpose of this research, a survey for primary data and recursive model of path analysis are employed. The research results show positive and significance influence of entrepreneurial culture and network as well as competition on regional economic growth. With the principle of “tuna satak bati sanak” culture as the basic behavioral pattern of their business, the social entrepreneurial network and entrepreneurial culture in the research area are strengthened. Therefore, with support of entrepreneurial culture, the growth of entrepreneurship in Indonesia will serve more to be the main driver of sustainable economic growth.

The emerging role of university spin-off companies in developing regional entrepreneurial university ecosystems: The case of Andalusia

Universities play a strategic role as drivers of regional economic growth. One contribution is the establishment and support of University Spin-off companies (USOs), as a knowledge transfer mechanism, thus contributing to generating entrepreneurial university ecosystems. Recent literature points to this as a promising and emerging research area and policymakers are increasingly investing in universities to facilitate economic growth. This is based partially on the idea that a well-established or successful entrepreneurial university ecosystem automatically leads to the emergence of business ecosystems with subsequent benefits to the region. Using the knowledge spillover theory conceptual lens in combination with a social networks approach, this is explored in the region of Andalusia (Spain), centring on the regional entrepreneurial university ecosystem and in the role of the USOs. By means of a mixed-methods approach, we identified the main actors of the Andalusian entrepreneurial university ecosystem and found how the ecosystem is enacted, using a social network approach, and how the ecosystem promotes an expansive wave effect making the knowledge spillover possible to businesses beyond the entrepreneurial university ecosystem. This study confirms empirically that the USOs are main actors in the entrepreneurial university ecosystem and strengthen knowledge transfer, by relating with other businesses beyond this ecosystem; and expands the emergent ecosystem approach into the field of entrepreneurship.

Challenges for civil society involvement in civic entrepreneurship: a case study of local enterprise partnerships

Civic entrepreneurship involves engagement between the state, business and civil society to produce economic growth for the public good. In the UK context a key initiative to encourage such engagement has been the creation of local enterprise partnerships (LEPs); these structures are intended to be a key delivery driver of regional economic growth. This paper draws on insights from semi-structured interviews with actors involved in the development of a LEP in the north of England. Findings draw attention to concerns from civil society over losing its distinctiveness through these partnerships, and in the process losing its ethos as a guardian of the public good.

Assessing the Pee Dee Regionns Entrepreneurial Potential at the start of the 21st Century and Developments since the Great Recession as Context for Economic Development Policy Considerations Regarding Business Incubators and Other Activities Designed to Spur Growth

Throughout much of its history, the Pee Dee region of northeastern South Carolina has been home to small-town merchants, talented craftspeople, and progressive farmers, all willing to take the risks necessary to build their businesses and live the life of their choosing. It is a legacy of entrepreneurship and small business ownership of which the people of the region are proud.However, the Pee Dee region is facing rapidly evolving pressures from today’s global, new economy. Past economic successes based on the availability of cheap labor and land are fading as current economic prospects are being shaped by new categories of regional assets such as workforce skills, lifestyle amenities, access to capital and information, and innovative activity. Thus, future regional economic success is highly dependent on finding new ways to exploit these assets. One promising approach to regional economic growth is entrepreneurship. It has been associated with the creation of employment (Hornaday and Aboud, 1971). Research has demonstrated that entrepreneurial firms are responsible for creating a disproportionate number of new jobs in the economy (Birch, 1979) and for stimulating regional economic prosperity (Acs and Armington, 2003). In addition, both the frequency and degree of entrepreneurial behaviors involves the innovative uses of other regional assets and resources such as innovation, risk taking and pro-activeness (Colvin and Slevin, 1989; Miller, 1983; Morris and Sexton, 1996). In fact, studies have demonstrated that the entrepreneurial process is a critical mechanism impacting the overall creation of new products and processes, value creation, new technologies, profit, jobs, economic growth, and societal wealth (Birch, 1981; Morris and Lewis, 1991).Despite the growing acceptance of entrepreneurship as a strong driver of regional economic growth, acceptable ways of measuring entrepreneurship still are not widely available. Researchers have reported success in measuring a company’s entrepreneurial orientation and in linking that orientation to various strategic and performance variables (Colvin and Slevin, 1989, 1990; Davis, Morris and Allen, 1991; Morris and Sexton, 1996). Without standard measures of entrepreneurship, it is difficult to evaluate a region’s entrepreneurial activity and to assess ways to stimulate the pace of regional economic growth.Fortunately, the Center for the Study of Rural America of the Federal Reserve Bank of Kansas City has developed measures of entrepreneurial activity for every county in the United States (Low, 2004). The Center’s measures focus on the breadth and depth of entrepreneurship. Entrepreneurship breadth is the widespread dispersion of entrepreneurial activity across a region. Entrepreneurial breadth reflects the size and variety of small businesses in a region that create the foundations of economic growth. The second measure, depth of entrepreneurial activity in a region, represents the value these small businesses generate for themselves and their local economies.

Soybean development: the impact of a decade of agricultural change on urban and economic growth in Mato Grosso, Brazil.

In this research we consider the impact of export-driven, soybean agriculture in Mato Grosso on regional economic growth. Here we argue that the soybean sector has served as a motor to the state’s economy by increasing the demand for services, housing, and goods, and by providing a source of investment capital to the non-agricultural sector. Specifically, we show that each square kilometer of soybean production supports 2.5 formal sector jobs outside of agriculture, and the equivalent of approximately 150,000US in annual, non-agricultural GDP. We also show that annual gains in non-agricultural employment and GDP are closely tied to soybean profitability, and thus vary from year to year. However, while this article highlights the potential of the agricultural sector as a driver of regional economic growth, it also acknowledges that this growth has been sustained by profits determined by externally set prices and the rate of exchange, and that future growth trajectories will be susceptible to potential currency of market shocks. We also show that while Mato Grosso’s economic growth has come at a significant cost to the environment, value added by the agriculture sector, directly and indirectly, has surpassed the value of the CO2-e emitted through land clearings.

Regional drivers of economic growth

Regional development of Serbia, after waves of recession, faced an additional challenge: a trend of increasing regional demographic regression, economic gap, etc. Entrepreneurs and SME sector are particularly hit hard by the economic crisis. But, in addition, in Serbia there are 1.2% rapidly growing enterprises (1,103, of which 160 gazelles) that boast growth potential (before the crisis, there were 3%). These are the drivers of regional economic growth. The basic research results of the regional dynamic entrepreneurship: 1,103 dynamic enterprises (2009-2013) participated in the increase in business revenues of Serbia with 110.5% (these enterprises covered 10.5% of the loss of the remaining segment of economy), generated 1/3 of profit growth in the economy and created 10,000 new jobs in the economy. Regional driving forces of growth and development had, in a certain number of regions, an extremely important role in the change of economic structure, increase in employment, and improvement in competitive performances of local economic structures. Economic recommendations presented in the paper go in two directions: firstly, it is vital to set up additional stimulating mechanisms for dynamic regional entrepreneurs in order to create conditions conducive to a faster growth of dynamic entrepreneurship in Serbia. Secondly, a way out of regional poverty will depend mostly on the building of institutions and affirmation of regional strategic planning.

Regional stock markets and the economic development of Southeast Asia

The paper examines the contribution made by the establishment and operation of a local stock exchange to the economic development of Southeast Asian (SEA) countries. The paper informs investors and policymakers about the current status of SEA stock market development and the associated positive and negative effects of such initiatives. Policymakers have placed a clear focus on SEA stock markets as a primary driver of regional economic growth. However, it is questionable whether SEA is ready for such an ambitious economic initiative, particularly given the reported negative effects of lesser developed stock markets. Despite these negative implications, the benefits appear to outweigh the costs for SEA stock markets. It is perceived that SEA stock markets will drive further economic reform, financial liberalisation, and market integration, promising tremendous benefits for both the region and the international investment community. The paper concludes with questions regarding the efficiency of stock markets in SEA and offers recommendations for further empirical research.

Does England no longer have an urban policy?

Despite the almost universal gloom about the prospects for urban policy in England, there is an arguable case that the current policy framework offers considerable promise to those big cities ready to take advantage of the government's new dispensations. The two key principles - working strategically within a framework of functional city regions; and devolving responsibilities and resources to this more local level - hold great scope for those areas ready to think where their strengths and potential lie. City Deals are a key element in this. It may be that, rather than new resources, new thinking is needed to achieve real change in those provincial cities that are now the drivers of regional economic growth

Dynamics of Inventor Networks and the Evolution of Technology Clusters

AbstractClusters are important drivers of regional economic growth. Although their benefits are well recognized, research into their evolution is still ongoing. Most real‐world clusters seem to have emerged spontaneously without deliberate policy interventions, each cluster having its own evolutionary path. Since there is a significant gap in our understanding of the forces driving their evolution, this study uses a quantitative approach to investigate the role of inventor collaboration networks in it. Inventor collaboration networks for 30 top‐performing American metropolitan clusters were constructed on the basis of patent co‐authorship data. The selected clusters operate in hi‐tech fields: information technology, communications equipment and the biopharmaceutical industry. Starting from a widely accepted hypothesis that the ‘small‐world’ structure is an optimal one for knowledge spillovers and promotes innovation effectively, the authors statistically tested the impact of ‘small‐world’ network properties on cluster innovation performance proxied by patent output. The results suggest that the effect of the small‐world structure is not as significant as theorists hypothesized, not all clusters benefit from the presence of inventor collaboration networks, and cluster performance can be affected by policy interventions. Our analyses also suggest that cluster typology moderates the impact of inventor network properties on cluster innovation performance.