This chapter aims to illustrate the main outcomes and the characteristics and factors of the resilience of the footwear industry in the northern region of Portugal as performed in the last 30 years. This industry acts in a cluster located in a number of towns around Porto, within a maximum distance of 50 km from this city. Such cluster is responsible for more than 90 per cent of Portuguese footwear exports. Along the analyzed period, and among other difficulties, two main shocks are identified which the industry had to face: the full membership of China in the WTO, in 2001, which carried the delocalization of most foreign footwear companies, mainly to the Far East, and the sub-prime world crisis in 2008. The industry survived and surpassed these shocks thanks to a thorough preparedness sustained by the action of entrepreneurs, together with a strong and active association and a technological center, which provided management and technical support and strengthened links between them, stimulating coordinated actions. This chapter suggests, through a non-linear approach, that Portuguese footwear exports are about to reach the level they would have attained if China hadn’t joined the WTO.
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Tüzin Baycan and Berna Sezen Özen
This chapter focuses on to what extend the innovation performance of EU countries has been affected by the global economic crisis and aims to investigate the relationship between the crisis and innovation performance while addressing the changes in the indicators of the Innovation Union Scoreboard Index after 2008. Focusing on these changes over the last ten years, the chapter compares and evaluates the innovation performance of EU countries and highlights which countries were more resilient in dealing with the recession.
Yannis Psycharis, Dimitris Kallioras and Panagiotis Pantazis
This chapter sets out to provide empirical evidence regarding the impact of economic crisis on the employment changes in the NUTS III Greek regions, during the period 2008_2012. With the application of trade-adjusted shift-share analysis, the chapter provides additional explanatory evidence on whether openness and trade have affected the resilience of regions. Results indicate that economic crisis has impacted asymmetrically on regional employment losses, leading to a widening of regional employment disparities. Construction and manufacturing have been hit severely by the crisis. Agriculture constitutes a resilient sector, while knowledge- and technology-intensive sectors are also more resilient to crisis. The less well-off regions dependent on more traditional sectors proved to be more resilient. However, trade relations and openness are offering as stabilizers to economic downturn.
A. Suut Doğruel, Fatma Doğruel and Yasemin Özerkek
Permanent duality across regions characterizes the regional disparities in Turkey. This duality exists in all dimensions of development, including the persistent unemployment problem. Throughout the last decade high unemployment rates were observed in all regions of the country. Focusing on unemployment in Turkey, the aim of the chapter is twofold. First, the chapter intends to capture the main determinants of the regional unemployment. To this end we define an excess supply function to estimate the determinants of regional unemployment combining the supply of and demand for labor. Second, the chapter scrutinizes the effects of external shocks on the regional variations in economic performance in Turkey. Regional unemployment and regional growth are defined as the basic economic performance indicators. For the first aim, migration is taken as the main source of the variations in the regional labor supply. On the demand side, we focus on the structural changes. The study defines two types of changes in the structure at the regional level: (1) The changes in the sectoral composition á la Kuznets; and (2) The Lilien index, which represents the dispersion in (or reallocation within) the sectors. For the second aim, we define two exogenous shocks: the 2008 crisis and the migration issue at the regional level. The 2008 crisis has a global character without any local dimension. Hence, its effects could be defined as completely exogenous. Migration can be affected partly by the regional factors. Therefore, we may assume that this shock is partially exogenous. In this part, the chapter will define the regions as flexible or rigid against these shocks. The results reveal that the adjustment potential to external shocks may be higher in the regions which have relatively simple economic structure.
Valeria Szitasiova, Miroslav Sipikal and Monika Siserova
Regional prosperity depends on several factors while resilience appears as one of the most important determinants in recent decades. It is thus an ability to adapt to the threats and challenges that economic development brings. Such a threat was also the crisis manifested in the last years of the last decade. An extensive amount of analyses deals with the ability of regions to respond to these changes or to adapt to new trends. A significant part of the current literature addresses the role of innovation, which is seen as a key factor of economic development starting with Schumpeter’s theory to the current role of Smart Specialization. The present chapter deals with resilience in the context of innovation activity in regions of the Slovak Republic. As innovations in Slovakia are by a critical mass supported from the resources of the European Union, this work analyses the innovation support in terms of resilience on coming trends of economic development.
Ana Santos Bravo
This chapter analyses the role of the creation and transfer of technology in the pharmaceutical industry and its role for regional competitiveness. Our case study focuses on the firms located in Oeiras, particularly the bio-pharmaceutical cluster, which gathers some of the most representative firms in terms of investment in R & D in Portugal. Therefore, this study focuses on the role of two of the factors that have influenced regional competitiveness in Portugal: clusters and knowledge/technology transfer.
Benjamin Jara and Alessandra Faggian
This chapter studies labor market resilience after a disaster, and proposes an empirical application to understand specific aspects of it. Different types of re-orientation are defined and estimated using data of workers in the regions affected by an earthquake. Results indicate that the probability of employment was the most significant impact of the disaster, while industry switching and wage growth are neither affected by the earthquake nor by place-specific characteristics. Positive and negative convergence effects are observed in the poorest and richest regions, respectively. We also observe heterogeneity among industries, although these effects are not essentially different to the pre-disaster years.
Roger R. Stough
A series of cluster and regional dynamics studies provide growing evidence that supports a hypothesis that industrial clusters evolve somewhat regularly through a series of stages. This stage or cycle theory views clusters as proceeding from initiation to some asymptotic limit with subsequent decline and/or rejuvenation, that is, resiliency. This chapter examines, on the basis of several case studies, the process or lack of a process that lagging or declining clusters use to reinvent themselves or fail. Examination of the case studies reveals five general types of histories that clusters and their regions, and their urban contexts appear to experience. From this research a typology of cluster dynamics (resiliency types) is proposed. Clusters in this chapter are defined as having a geographic locus as well as an extra local network component and are viewed from a systems perspective.
Magdolna Benke, Klára Czimre, Katalin R. Forray, Tamás Kozma, Sándor Márton and Károly Teperics
Our study reconsiders the results of the LeaRn (Learning Regions in Hungary: From Theory to Reality) research project, focusing on the potential contribution of learning regions to regional resilience. After drawing attention to some key points of the theoretical background of learning regions and resilience, we present the results of the statistical examination of the spatial centres of learning and identify the potential learning regions in Hungary. Finally, we explain the main findings of case studies which indicated (if not proved) the connection between successful community learning and socio-economic resiliency. The complex indicator and map of learning regions convey important messages about the conditions and potentials of the evolution of learning regions, learning cities and learning communities in Hungary including the area of regional resilience. Our hypothesis, therefore, is that learning regions in Hungary have the potential for becoming resilient regions as a consequence of the geographic, cultural and social proximity. The study offers evidence to confirm the role of the LeaRn Index set up for the Hungarian learning patterns in this process. Comparing the learning patterns of the Hungarian settlements with socio-economic indicators allows us to conclude that those regions which are more open to learning have better economic indicators and well-being indexes.