Local Advantage in a Global Context
- New Horizons in Regional Science series
Edited by Charlie Karlsson, Börje Johansson and Roger R. Stough
9. Knowledge, political innovation and referendum Tsuyoshi Hatori and Kiyoshi Kobayashi Referenda in which imperfectly informed individuals are called to vote for or against an innovative project can result in inefficient outcomes, as compared to the outcomes that would arise with completely informed individuals. In this chapter, an incomplete information game is presented to investigate the influence of interest groups’ voices on individuals’ judgements. It is shown that on account of the lack of knowledge of individuals about an innovative project, a limited number of interest groups that disagree with the innovation utilize their voices in strategic fashion and try to prevent a referendum outcome containing the majority will. Alternative institutional designs are introduced to overcome this inefficiency, and some problems regarding a referendum process are discussed. 9.1 INTRODUCTION Innovations and their adoption are the keys to regional growth and development. Faced with intense interregional and international competition, regional policy makers must find innovative solutions for enhancing the competitive advantage of their regions. Innovations, however, are not the result of a decision by a single policy maker, but follow from the invention of policy options and the search for solutions made interactively by regional agents, including but not limited to a policy maker. This forces us to realize that innovations and their adoption are not immune to the political arena. Indeed, the implementation of innovations depends on regional political systems, in which regional agencies wield power and authority, interact with each other, exchange their knowledge and information, and influence and...
You are not authenticated to view the full text of this chapter or article.
Elgaronline requires a subscription or purchase to access the full text of books or journals. Please login through your library system or with your personal username and password on the homepage.
Non-subscribers can freely search the site, view abstracts/ extracts and download selected front matter and introductory chapters for personal use.
Your library may not have purchased all subject areas. If you are authenticated and think you should have access to this title, please contact your librarian.