Theoretical, Empirical and Political Perspectives on the Initial Stage of Cluster Evolution
Industrial Dynamics, Entrepreneurship and Innovation series
Edited by Dirk Fornahl, Sebastian Henn and Max-Peter Menzel
Chapter 3: Economic Policy and its Impact on the Evolution of Clusters and Spatial Systems Exemplified by German TV Programme Production
Ansgar Dorenkamp and Ivo Mossig INTRODUCTION 1 When news emerged throughout German media in November 2008 that the private broadcasting company Sat.1 intended to give up its location in Berlin and relocate its business to Munich in order to reduce costs (Spiegel Online 2008), this news provoked different political echoes. While Bavarian politicians interpreted the company’s plans as a proof of Bavaria’s economic attractiveness, Berlin’s governing mayor Klaus Wowereit said that such a decision was unacceptable. This comment was justified by the fact that the federal state of Berlin had supported the Sat.1 company before by providing investment grants. These financial aids were granted on condition that Sat.1 was ready to guarantee to stay in Berlin and maintain jobs until 2012. In this context Berlin’s Minister of Economic Affairs Harald Wolf announced that he would reclaim these grants if the company did not give the binding promise to preserve jobs in Berlin (Morgenpost Online 2008). Two months later it was noted that Sat.1, starting from January 2009, would continue to employ 114 of formerly 350 employees in Berlin in spite of relocating to Munich. Capital investment grants like those paid to Sat.1 in Berlin rank among governmental incentives. By granting these incentives political authorities try to influence the behaviour of companies in favour of specific locations (Schätzl 1994, 46 ff.). Schätzl (1994, 13) calls this deliberate promotion of certain locations ‘location policies’ (Standortpolitik). Location policy aims at stimulating economic growth and employment by politically supporting existing enterprises or...
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