Vaasa, October 25th 2013 Robert Hassink

Theoretical advancement in economic geography by engaged pluralism

Robert Hassink

Dept. of Geography, University of Kiel,

Germany

Vaasa, October 25th 2013 Robert Hassink

Fragmented

vs.

engaged pluralism (Barnes & Sheppard 2010)

Vaasa, October 25th 2013 Robert Hassink

Evolutionary economic geography analyses and explains “the processes by which the economic landscape – the spatial organisation of economic production, circulation, exchange, distribution andconsumption – is transformed from within over time” (Boschma & Martin 2010, 6).

“why it is that some regional economies become locked into development paths that lose dynamism, whilst other regional economies seem able to avoid this danger” (Martin & Sunley 2006, 395)

Vaasa, October 25th 2013 Robert Hassink

Aim:

advancing evolutionary economic geography by reviewing its core critique and proposed solutions, particularly that of geographical political economy.

Vaasa, October 25th 2013 Robert Hassink

1. Introduction

2. Evolutionary economic geography

3. Critique

4. Alternative paradigms

5. Empirical reflection: locked in decline?

6. Conclusions

Vaasa, October 25th 2013 Robert Hassink

Source: Boschma & Frenken 2006

Vaasa, October 25th 2013 Robert Hassink

Evolutionary concepts and notes:

• Path dependence and lock-ins,

• Related and unrelated variety,

• Co-evolution,

• Sunk costs,

• Cluster life cycles.

Vaasa, October 25th 2013 Robert Hassink

‘‘A path-dependent process or system is one whose outcome evolves as a consequence of the process’s or system’s own history’’ (Martin & Sunley, 2006, 399)

Path dependence is not past dependence; it is rather a contingent process

‘‘Lock-in is this notion that most fully captures the idea that the combination of historical contingency and the emergence of self-reinforcing effects, steers a technology, industry or regional economy along one ‘path’ rather than another’’ (Martin 2010, 3)

Vaasa, October 25th 2013 Robert Hassink

Source: Boschma & Frenken 2006

Vaasa, October 25th 2013 Robert Hassink

Source: Boschma & Frenken 2006

Vaasa, October 25th 2013 Robert Hassink

3. Critique

Pike et al 2009, MacKinnon et al 2009:

1. limited importance attached to institutions

2. under-conceptualized notion of social agency and power

3. neglected multi-scalar interrelatedness and embeddedness of firms

Vaasa, October 25th 2013 Robert Hassink

Source: Hassink & Klaerding 2012

Vaasa, October 25th 2013 Robert Hassink

4. Alternative paradigms

Geographical political economy

Institutional economic geography

Relational economic geography

Vaasa, October 25th 2013 Robert Hassink

5. Empirical reflection: locked in decline?

Hassink, R. (2010) Locked in decline? On the role of regional lock-ins in old industrial areas. The Handbook of Evolutionary Economic Geography, 450.

"When the wind of change blows, some build walls, others build windmills“

当风向改变时 ,有的人筑墙 ,有的人造风车Chinese proverb

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

Monostructure despite strong de-industrialisation after reunification

All yards are part of larger concern

Strong competition with East Asian shipyards

Strong state support (federal state, Land, EU) to modernise production capacities (3 billion €, 500,000 € per job) => capacity limitation

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

Vaasa, October 25th 2013 Robert Hassink

yards Yard cities

State of Mecklenburg-Vorpommern

Shipbuilding Association Federal government

Local trade unions

European Commission

European Shipbuilding

Association

Vaasa, October 25th 2013 Robert Hassink

Lobby: Against capacity limitation Against alleged dumping

prices of Korean yards

Results: Capacity limitations have

become less strict WTO case and due to that

allowance of subsidies (84 million €)

Vaasa, October 25th 2013 Robert Hassink

Westmünsterland

History• cross-border textile region since the 19th Century • impulses from Twente (the Netherlands)• early 1960s about 75% of manufacturing employment

in the textile industry• crisis and de-industrialisation

Vaasa, October 25th 2013 Robert Hassink

Political reactions

Little protest against plantclosures => “quiet” restructuring due to the lack of lock-ins:

• few subsidies• support for new industry • entrepreneur Schmitz

Vaasa, October 25th 2013 Robert Hassink

Company reactions

Technical textiles:Examples: car industry, medical technology, fishery, road and railroad construction, agriculture

Vaasa, October 25th 2013 Robert Hassink

Daegu

History

• genesis during colonial period• strong growth during 1960s/1970s (targeted industry)• natural fibres => synthetic fibres • crisis and de-industrialisation

Vaasa, October 25th 2013 Robert Hassink

Political reactions

Milano-Project1999-2003Strongly subsidised: € 650 mill.

Kim Dae-Jung’s official pledge (공약 )& regionalism

Aim:

Vaasa, October 25th 2013 Robert Hassink

• Fashion industry• Upgrading textile• Exhibitions

Problems:• Conflicts• Gap

Vaasa, October 25th 2013 Robert Hassink

Adjustment / renewal

Lock-ins Dominant impact factors

Mecklenburg-Vorpommern

Adjustment Strong at several spatial levels

Both economic-structural and political-institutional factors

Westmünsterland Renewal Weak Both economic-structural and specific regional political-institutional factors

Daegu Adjustment Strong at local level

Political-institutional impact factors dominate

Vaasa, October 25th 2013 Robert Hassink

6. Conclusions

Evolutionary economic geography has some clear and powerful theoretical notions

In order to overcome shortcomings in favour of engaged pluralism => incorporating institutional and relational economic geography => evolutionary economic geography as a pluralistic project

In favour of theoretical stability

Vaasa, October 25th 2013 Robert Hassink

kiitos!

tusen tack!