Regional Embeddedness Research Articles

Regional embeddedness is the key: Quantity and quality of regional business opportunity perception

Regional embeddedness is the key: Quantity and quality of regional business opportunity perception

Rethinking Regional Embeddedness and Innovation Systems for Transitions Towards Just, Responsible, and Circular Bioeconomies

Few studies have explicitly explored regional embeddedness and both the inconsistencies and injustices of circular bioeconomy (CBE) innovations. To better navigate the normative dimension of these innovations and CBE transitions in general, our article presents a threefold argument for the relevance of the regional level of analysis. First, CBE innovations are influenced by and affect regional metabolisms and actor constellations, assets, and (biophysical) resources within regional innovation systems (RIS). Second, thoroughly exploring these dimensions of regional (un)embeddedness can reveal ethical concerns, including potential "dark sides" and injustices, such as exclusivity and exploitation. Third, to address these concerns in CBE research and governance, we outline four facets: complementing the RIS as a framework and policy approach, balancing creative and destructive measures, addressing the need for more inclusive regional CBE policies, and establishing dedicated intermediaries to better govern regional CBE transitions. In summary, this conceptual article provides starting points for further research and proactive measures that help govern the normative dimension and the design of CBE transitions at the regional level, promoting inclusivity, justice, responsibility, and legitimacy for both innovation and exnovation.

Understanding arrival contexts of local refugee reception using a ‘phase space’ perspective

AbstractMigration is an inherently spatial phenomenon as it depicts the processes and effects of humans' movement from one place to another. Recent debates in geographical migration research highlight the need to adequately understand how the distinct nature of space and place shape migration and arrival processes. Taking up this call, this contribution proposes to bring together more‐than‐relational approaches to space in geography and the ‘local turn’ in research on migration and integration. Drawing on the empirical example of refugee reception and integration in the city of Rostock in Germany, the contribution explores how space, it's persisting and changing elements, impacts migration flows and constrains or supports migrants' arrival processes. The analysis works along three aspects of more‐than‐relational approaches to space, namely the role of persistent spatial aspects, such as the topography or national borders, and their interplay with relational space; the impact of spatially confined administrative units and regional embeddedness; and the temporal depth of space. The contribution closes by proposing two points how a more‐than‐relational approach can enhance the conceptualisation of space in geographical migration studies: (1) the mutual constitution of relational and non‐relational aspects of space into a specific space shaping migration flows through their interplay, and (2) the openness of a ‘phase space’ approach towards future developments admitting that the inner logic of a place can develop and change.

Industrial Embeddedness and Regional Economic Resistance in Europe

We study the role of local industrial embeddedness (the share of regional interindustry economic activity that is anchored to a region) on regional resistance (the difference between pre- and postcrisis employment) to the 2008 Great Recession (GR) in EU and UK NUTS-2 regions. The recession had profound effects in regional economies, which showed diverse performance based on their capacity to absorb the shock. The concept of economic resilience has been brought to the center of attention with several contributions exploring its determinants. However, the impact of the embeddedness of local economic systems in terms of sales and supplies has been largely unexplored. We use regional input–output tables to approximate the embeddedness of local economies, and we use fixed-effects and quantile regressions to test its relationship to regional resistance between 2008 and 2011. We find that during the GR, regional industries opted to change input rather than output markets. Additionally, embeddedness has a curvilinear relationship to regional resistance that varies across the distribution of regional resistance performance. Finally, at the industry level, we find regional embeddedness to be important to the resistance of manufacturing and financial and business services, and sectoral embeddedness to matter more for the resistance of construction and wholesale, retail, and information technology. Our findings highlight nuances that policy makers should be aware of in planning for resilience.

(Trans)regional embeddedness and the resilience of offshore campuses

ABSTRACT Regional embeddedness plays an important role for universities. We show that for transnational subsidiaries of universities, or offshore campuses, which are necessarily transregionally embedded through their relations to their home university campus and its networks, the level of regional embeddedness is also of critical importance. We define four dimensions of regional and transregional embeddedness: partnerships, government funding, faculty and staff, and student recruitment. Based on qualitative interviews conducted before and at the onset of the COVID-19 pandemic and a global survey of offshore campus managers during the pandemic, we show how campuses with strong regional embeddedness seem to have been more resilient in the face of the COVID-19 crisis than those campuses which are less strongly regionally embedded. Nonetheless, regional embeddedness of institutions is no panacea and its risks and trade-offs with transregional embeddedness should be carefully weighed by higher education managers.

Industry evolution, resilience and regional embeddedness: the case of the Danish microbrewing industry

ABSTRACT Excess capacity and increased competition in the Danish microbrewing industry have created a burgeoning shakeout, which has been accelerated by the Covid-19 crisis. We discuss which types of firms are likely to survive this, specifically, to what extent such firms use regional embeddedness as a survival strategy. Using three different types of data, we demonstrate that firms’ regional and local embeddedness is widely used to shelter them from competition pressures. Moreover, the passion among owners and investors for the sector (and its products) alters the purely economic rationality that generally, according to theoretical predictions, determines whether firms survive industry shakeout.

Hidden Champions as a Determinant of Regional Development: An Analysis of German Districts

Abstract Hidden Champions (HCs) are defined as market leaders in niche markets. They represent the success of the German Mittelstand like no other group of firms. However, little is known on how HCs contribute to regional development. Given their export strength, regional embeddedness, and strong vertical integration we expect HCs to have a profound effect on regional development. Using a German dataset of 1,645 HCs located in 401 German districts, we analyze the effect of HCs on a variety of regional development dimensions. Our results show that HCs are not equally distributed across regions and influence regional development. Regions with a higher number of HCs show strong regional economic performance in terms of median income. Moreover, HC intensity affects regional unemployment and trainee rates as well as regional innovation in terms of patents. Surprisingly, we did not find an effect of regional HC intensity on regional R&D levels and GDP. We can further conclude that the effect of HCs is not limited to the particular region in which they are located but that sizable spillover effects exist. Besides its contribution to the regional development literature, our study adds to a better understanding of the HC-phenomenon. Implications for regional policy makers are discussed.

National Integrated Maritime Policies (IMP): Vision Formulation, Regional Embeddedness, and Institutional Attributes for Effective Policy Integration

Integrated maritime policies (IMPs) provide a comprehensive governance framework to support the sustainable use of the seas and oceans while ensuring a horizon of prosperity for the population of the surrounding coastal regions. This paper focuses on how IMP governance can be arranged to support more effective policy integration. We identify and discuss a number of key strategic and institutional issues which are expected to promote more effective policy integration in IMP development and implementation. First, vision statements of IMPs are scrutinised using the triple bottom line framework and by analysing the process of stakeholder involvement and related public disclosure. Second, we introduce the vision-down plans-up approach on stakeholder participation and management in IMP development to overcome the limitations of the widely used bottom-up and top-down approaches in policy formulation. Third, we analyse the tension between policy convergence and regional embeddedness in national IMPs. We argue that policy convergence does not and should not exclude regional embeddedness. Finally, we study IMP governance changes under the dual lens of time frame and institutional plasticity. The findings provide recommendations for policymakers and stakeholders on key strategic and institutional considerations which should enhance effective policy integration during the formulation and implementation of a national IMP.

Institutional Effect on Firms’ Internationalization: From the Perspective of Development Zones

With the development of economic globalization, firms in emerging economies are motivated to implement internationalization strategy increasingly. This rapid expansion is not only due to the development of home economy, but also because of the domestic institutional environment. Institutional factors in home countries play an important role in shaping the international expansion behavior of firms in emerging market.Accordingly, this paper takes the development zone as an analysis unit, and explores the local institutional environment optimization effect of development zones on firms’ internationalization by using the data of Chinese listed companies. Through empirical analysis, this paper gets the following conclusions: Firstly, settling in development zones will generate a positive institutional isomorphism and external enabling effect on firms’ internationalization behavior. That is, compared with firms outside the development zone, firms inside the zone are more inclined to implement internationalization strategy. The above conclusions still hold after using instrumental variables to deal with endogeneity and several robustness tests. Secondly, the positive internationalization effect is universal for different kinds of development zones. That is, settling in development zones of different levels, functions and locations all can improve firms’ motivation to carry out internationalization strategy significantly. Thirdly, the internationalization effect of development zones will be moderated by formal and informal institutional factors of higher levels. With the increase of local policy support and the deepening of regional embeddedness, the positive effect of development zones on firms’ internationalization will be strengthened significantly.This paper has the following contributions and implications: Firstly, it discusses the influence of institution optimization on micro firms’ internationalization from the perspective of institutional isomorphism and institutional enabling. By converging firms’ internationalization practice in development zones to the logical framework of institutional theory, it not only enriches the related research of internationalization and institutional theory, but also effectively complements BTOF（Behavioral Theory of the Firm）. Secondly, it puts forward that firms’ internationalization is not purely institutional escapism, but the feedback of local institutional isomorphism and institutional enabling, which not only expands the research dimension of institutional environment, but also enriches the research scope of the relationship between internationalization and institutional environment. Finally, it deepens the interpretation of the economic effect of development zones and the growth motivation of micro firms’ internationalization behavior. The conclusions of this paper provide theoretical support for governments to promote the growth of real economy and firms’ internationalization by setting development zones.

The Regional Structure of Higher Education and the Role of Distance Learning

Abstract In the time of the COVID-19 pandemic the importance of distance learning is being enhanced, while formal, full-time, face-to-face university education is being converted to distance learning. The study explores the role of the Universities in distance learning market and reveals the factors that influence the students’ university choice. The regional embeddedness of higher education in the Western Transdanubian region is analysed, highlighting the catchment areas of the region’s universities. The educational commuting of distance learning students to the region increases purchasing power, has a positive impact on the rental market, the labour market and can boost future settlement. Commuting, university selection and training selection behaviours of correspondence and distance training of students is examined using questionnaires. The aim is to establish whether the university selection of correspondence training students is influenced by distance and by the characteristics of the student‘s place of residence. The findings show that distance is one of the main factors during the university-selection process in the case of any kind of distance learning.

Public research and the quality of inventions: the role and impact of entrepreneurial universities and regional network embeddedness

The positive effect of public research on industrial innovations is beyond controversy: public research institutions produce knowledge that is subsequently transferred into product and process innovations by private businesses. Besides this rather passive role in commercializing inventions, public research institutions may also proactively exploit new knowledge through public sector entrepreneurship activities. Especially entrepreneurial universities are perceived as a conduit of knowledge spillovers; they serve as central actors of innovation networks and stimulate network activities. Whereas the linkages between network embeddedness and innovation activities have been largely explored, the determinants of patent quality in terms of radicalness, originality, and generality remain rather unclear. Considering Germany’s diverse public research infrastructure (universities, polytechnics, and non-university research institutes), our findings reveal that the type of institution and the corresponding scientific orientation (basic vs applied research) matter for the quality of inventions. The centrality of respective institutions within innovation networks reinforces the radicalness of inventions. However, we do not find support for the general assumption that an entrepreneurial orientation of public sector entities augments the quality of inventions. We conclude the paper with policy recommendations and with future avenues of research.Plain English Summary This study explores the relation between network embeddedness, scientific orientation, entrepreneurial orientation, and the quality of inventions of public research. Our results imply that a basic research focus induces inventions that are more radical, and a more central network position reinforces the production of more radical, original, and general patents. In contrast, an entrepreneurial orientation does not seem to stimulate a higher quality of inventions. Our results give impetus to nuanced public sector entrepreneurship policies that take the type of institution and the optimal level of regional embeddedness into account. A sole focus on the entrepreneurial transformation of public research institutes may not be sufficient to leverage the full potential of knowledge created therein. Instead, more support and guidance for creating links with other network entities is needed along with incentives to commercialize new knowledge.

Determining factors of cities’ centrality in the interregional innovation networks of China’s biomedical industry

This study analyzed the determinants of regions’ degree centrality as well as their variation over time in interregional innovation networks and compared the differences in factors between developed and less developed regions(core and periphery). Focusing on China’s biomedical industry, we used the prefecture-level invention co-patents data (2012–2017) to construct intercity networks and related cities’ centrality to sector-region-specific factors. We found: (1) A “convergence” process of regional embeddedness exists in innovation networks among cities. (2) The volume of national public funding for fundamental researches in the biomedical industry plays the most important role in cities’ centrality, regardless of developed or undeveloped cities. (3) For the developed cities’ centrality position, the intensity of intraregional collaboration in the biomedical industry is the secondary influencing factor, besides, other positive factors involve innovation performance, industrial market application, and cluster competitiveness, but it does not affect peripheral cities. (4) The second most influential factor in peripheral cities’ centrality is the number of biomedical firms. We concluded that despite the influence of path dependence, in the field of the analytical industry, China’s public funding for basic research has narrowed the gap in networking capability between the developed and backward cities.

Employers stuck in place? Knowledge sector recruitment between regional embeddedness and internationalization

ABSTRACT Employers are of critical importance in shaping flows of workers. This paper examines how larger employers in knowledge-intensive industries tackle demand for a high-skilled workforce within their specific spatial context. The empirical material stems from a qualitative study of employers in an older industrial German city. The analysis focuses on three interrelated aspects of human resource management: experiences with shortages of high-skilled labour; scales of recruitment; and workforce diversity. It finds that the spatial setting is an important factor, yet the degree by which employers are shaped by it depends on the type of employer and its level of internationalization.

Corporate social responsibility in Austrian family firms: socioemotional wealth and stewardship insights from a qualitative approach

PurposeThis paper provides a comprehensive view about corporate social responsibility (CSR) in Austrian family firms. In detail, the conceptual understanding, motives for, institutionalisation, planning and the outcomes of CSR are investigated. The authors refer to socioemotional wealth and stewardship aspects as explanation approaches for CSR in family firms.Design/methodology/approachThis study offers new insights into CSR in Austrian family firms based on qualitative data from 30 companies.FindingsThe findings demonstrate that despite numerous social, environmental and economic activities, referral to CSR is just in the beginning, indicating a lack of dissemination of the concept of CSR. The main motives for CSR engagement are image and reputation concerns, a strengthened regional embeddedness and employee-related improvements. Social CSR activities concerning employees and the close company surroundings dominate, whilst environmental CSR measures are often determined by the need for fulfilling the requirements of eco-certifications.Originality/valueThis paper contributes to the existing CSR literature by offering deeper insights into CSR in Austrian family firms (e.g. motives and outcomes of CSR), which are discussed under socioemotional wealth and stewardship aspects. Moreover, a broad range of implications for future research and corporate practice (e.g. family firms, owning family, policy) are discussed.

Does Institutional Embeddedness Promote Regional Enterprises’ Migration? An Empirical Analysis Based on the “Double Transfer” Strategy in Guangdong, China

Against the background of globalization, institutional embeddedness has become an important theoretical tool to understand the changes in regional economic patterns. This paper starts by discussing the theory of location choice of enterprises and then uses the statistical method of negative binomial regression to analyze the impact factors of enterprises’ transfer from the perspective of institutional embeddedness by taking Guangdong Province, China, as a case study area. It was found that informal institutional factors such as the same language, the same industry, and geographical proximity have significant positive effects on the transfer of regional enterprises. Formal institutions such as counterpart assistance are the core driving force of enterprise transfer, while traditional economic factors such as cost comparative advantage have no significant impact on the transfer of regional enterprises. This research shows that the transfer of regional enterprises is greatly influenced by the current regional institutional environment. Therefore, it is important for future policy makers to consider the regional institutional environment and to deepen regional institutional embeddedness to advance urban and regional development.

The regional facet of a global innovation system: Exploring the spatiality of resource formation in the value chain for onshore wind energy

Onshore wind energy can be conceptualized as a “Global Innovation System” in which resources drive technological development and diffusion: Knowledge, markets, investment and legitimacy. This paper investigates the regional embeddedness of resource formation along the industry’s value chain, and explores how these processes are coupled to each other and to the national and global scale.Empirically, the contribution focusses on a well-developed region within the GIS and highlights different spatial patterns of resource formation: Turbine manufacturing is characterized by spatially sticky knowledge and price-driven global valuation. The diffusion of the technology by downstream value chain and service-based firms reveals different processes: Knowledge for turbine management and system integration is similarly footloose and sticky. The regional level is vital for market formation (siting decisions) and technological legitimation (community acceptance). These valuation processes rest on distinct and diverse kinds of knowledge, and are interlinked, customized and facilitated by regional actor networks.

Agglomeration economies, interregional commuting and innovation in the peripheries

ABSTRACT Regional development and innovation are often studied in the context of agglomeration economies, leading to a perception bias regarding the virtues of cities. Recent work on interregional connectivity has explored alternative mechanisms for economic growth, such as borrowed size and regional embeddedness, but there are limited studies examining these in the context of peripheries. The paper addresses this by examining the spatial relations of industry, commuting and agglomeration to innovation in Japan peripheries, finding dynamics between and within communities vary in how these factors increase innovation. Such understandings are critical in policy redressing core–periphery imbalances and industry competitiveness.

Commercializing academic research: a social network approach exploring the role of regions and distance

Relationships between firms and universities have been centre stage for some time. However, empirical studies on firms contracting research to universities remains limited. The likelihood of engaging in contract research depends on the characteristics of the firm and the university. Because existing literature further suggests that location is a key facilitator for knowledge transfer activities, the paper investigates the role played by regions and geographical distance between firms and universities when engaging in contract research. Hence, the analysis combines characteristics from both organisations and adds relationship-specific features with respect to the distance between them and the region they are located in. It also looks at the role played by cognitive distance. The paper contributes to the understanding of how academic research, commissioned by firms, is influenced by locational features: the ability to engage in contract research and the regional context, the regional embeddedness of research contract partners, and the geographical distance between these partners. It builds on an original dataset with information on contract research at firm. Based on a panel of three consecutive waves of R&D surveys in Belgium conducted in 2006, 2008 and 2010, the linkages of universities with R&D active firms are examined by linking a database on universities with one on firm R&D investments. Using the most recent insights in the social network approach, highlights the variables that impact the likelihood of firms engaging in research contracted to a university. Descriptive measurements are calculated from social network analysis to capture the basic structure of the firm-university network and construct an Exponential Random Graph model to predict firm-university relationships based on network characteristics and node attributes. Four main conclusions are drawn. First, more innovative regions do not show a higher likelihood of firms to engage in contract research with universities. Second, the likelihood for contract research is higher, if firms and universities are located in the same region. Third, geographical distance shows a negative relation to the likelihood of contract research suggesting cluster formation. Fourth, in the case of contract research cognitive distance complements geographic distance.

Regional embeddedness, relatedness and inter-regional linkages among less developed regions in Central Europe

ABSTRACTThis paper aims at a comprehension of existing intra-/inter-regional production flows in a dynamically transforming, export-oriented economy in Central Europe. Drawing on evolutionary economic geography combined with input–output approaches, we have assessed the sectoral compositions and relationships between regions from a buyer-supplier interactions perspective. Inspired by contemporary literature we applied concepts of regional embeddedness, relatedness and vertically related variety. Conceptually we argue that the degree of embeddedness of regions is differentiated and spatially non-random. The differences will depend to a large extent on the economic characteristics and on the ability of key actors and institutions in these regions to respond actively to changing opportunities and threats. Empirically we have found: that economically more developed regions are relatively more embedded in terms of production flows and have greater sectoral variety, whereas regions with high export-dependence are economically backward, and have higher concentration of industry and negative associations with innovation activity and overall innovation potential. The intensity of interregional production flows increases as the regional economies vary more from each other, but beyond a certain level of structural difference the rate of mutual flows decreases; and that the intensity of interregional relations depends on the relatedness of the economic bases.

The impact of the establishment of a university in a peripheral region on the local labour market for graduates

ABSTRACTThe establishment of a university can be used as policy instrument to revitalize peripheral regions. Such newly established universities tend to experience rapid growth, but little is known about how this affects the labour market for graduates in these regions over time. A quantitative case study, employing individual-level microdata, analyzed changes in the wage levels and mobility of graduates of Aalborg University, which was established in 1974 in the North Denmark region. The analysis shows that the establishment of Aalborg University contributed to the upgrading of the human capital in the region, fulfilling a demand in the labour market, as indicated by wage growth similar to that of the labour market in other regions and a growing percentage of local young people to stay in the region after graduation. Furthermore, the university increased its intake of students from outside the region, who then as graduates dispersed to other parts of the country, thereby serving to supply human capital at the national level. These insights add to our understanding of how a new university can play a role in the economic development of a peripheral region, while at the same time also having impact at the national level. Nevertheless, this instrument is not applicable to all regions in the same way, since local critical mass and regional embeddedness are required to enable a region to absorb a substantial number of graduates and benefit from the presence of the university.