Why cities are regarded as productive engines of growth? Topic 4 P3



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Region-Quiz-25

Topic 3: Presentation -> p21
Message

    • The world is not flat:

      • economic concentration does not necessarily mean economic growth.

      • growth can happen anywhere depending of endogenous factors.

    • Trends in different types of regions.

      • Urban, rural and intermediate regions all show very diverse trends in terms of economic growth.

    • Regional economic growth in OECD regions - two opposing trends co-exist:

how do you define one-size-fits-all approach
'one-size-fits-all' models in regional innovation policy approaches that are often based on best practise examples of high-tech areas (Tödtling & Trippl, 2005)
25. how do you understand the approach of place-based policies or place-sensitive distributed development policies which is recommended to apply as policy response to the problems of less developed areas/regions?
Topic 4: why regional matter
Place-based policies have been promoted under the assumption that less-developed areas can always catch up, if provided with the right endowments, and that declining areas can address the sources of their decline. However, on the one hand, developments in economic geography theory and empirical evidence have shown that, more often than not, labour mobility and innovation diffusion exacerbate economic polarisation and limit the equity-enhancing effects of spatially-blind policies: regional inequality and social marginalisation go hand in hand. On the other hand, low mobility, insufficient connectivity in areas other than physical infrastructure, and poor institutions means that place-based policies frequently function more as social rather than true development policies. To summarise, too much focus on efficiency may enhance territorial inequity (which, in turn, undermines efficiency), while too much focus on equity undermines efficiency. Hence, there is a need to pursue efficiency and equity at the same time and neither spatially-blind nor place-based policies on their own are in a position to do so. Policy alternatives that take both dimensions into consideration simultaneously are best positioned to challenge the causes of territorial distress while, at the same time, maximising the potential of every territory.
Place-sensitive policies – which combine strong guidelines derived from development theory, while remaining sufficiently malleable to respond and adapt to the specific characteristics and challenges of every territory – are needed to maximise each territory’s development potential, creating greater opportunities for its population. Place-sensitive policies tap into the potential of every territory, generating and spreading development throughout.
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