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.
Tüzin Baycan and Berna Sezen Özen
Hugo Pinto and Tiago Santos Pereira
The recent economic turbulence was characterized by recessionary dynamics, differentiated problems in specific territories and changes in science, technology and innovation. In this context, the chapter debates the notion of resilience as an adaptive capacity that allows overcoming negative effects of internal and external shocks, and creating growth trajectories in different socio-economic systems. The chapter gives emphasis to the need to delimit the system to be analysed and suggests that a “regional innovation system” is a good candidate to analyse in the study of science, technology and innovation resilience. The text also suggests that the analysis of systemic failures is crucial for a deeper understanding of internal fragilities. The chapter concludes with implications for the resilience of innovation.
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.
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.
Masagus M. Ridhwan and Pakasa Bary
This chapter attempts to examine the effects of macroeconomic shocks across Indonesian regions. In doing so, we have developed structural macroeconomic models for 32 provinces, which are later estimated by around 28 pairs of ECM-based equations which represents demand-side output, supply-side output, monetary, fiscal, and prices in each economy. The responses are specifically evaluated due to four types of main shocks that are originated from both domestic economy based on credit volumes and administered price inflation, while from external shocks we use world output and exchange rate shocks, respectively. Our findings indicate there are systematic differential responses to the common shocks on both provincial output and inflation, that may well be related to the individual provincial economic structures and its specific characteristics. Java – the most developed and diversified economy – tends to be more resilient to the shocks relative to the off-Java regions. The models and estimation results tend to be robust by fulfilling classical econometrics assumptions and well-present the standard macroeconomic theory. The results also assert the importance of regional economic structures and characteristics in formulating nationwide macroeconomic policy.
This chapter examines and demonstrates superior regional innovation policy making based on non-linear, lateral and interactive governance. The first section introduces basic concepts of resilience, modeled on its original application in understanding ecosystem behavior under stress, translated into a more suitable economic geography context. There follows a worked, theoretically derived application of resilience theory to qualitative case analyses of responses to resilience shock by regions in Portugal. Here, severe economic crisis was the test of resilience. Innovative adaptability, emphasizing transversality, not particularity, tended to predominate. In conclusion, it is shown how, by exploration of regional and inter-regional “transversality,” these regions avoided “global controller” (EU) advocacy of demonstrably reckless “specialization.” This was achieved in the face of imposed austerity policies from EU and national state in response to the global financial crash of 2008 as it affected the fate of their Regional Innovation Strategies (RIS3).
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.
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.
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.
Resilience is a very popular word in regional science. Despite that, contributions concerning empirical insights are still limited. The aim of the chapter is to investigate the elements that make an area able to withstand a shock. While literature normally focuses on regions, our chapter focuses on provinces as a source of resilience. Analysis developed at regional level might underestimate the importance of firms’ behaviour that is an important component of resilience. Using the LLS data for Italy, we explore how re-orientation and variety can contribute to create resilience at a provincial level.