Social Capital as a Determinant of Regional Competitiveness
Andrew HarrisonUniversity of Teesside
United Kingdom
1. Introduction
The concept of regional competitiveness (Krugman, 1996; Camagni, 2002)
The link between social capital, innovativeness, and regional competitiveness
Networks, creativity, and the creation of social capital
Theoretical model and DigitalCity case study
2. The Formation of Social Capital
Social capital: - structure of relationships in a society –
founded on trust embodied in social norms and networks (Putman et al., 1993)- interaction between institutions and processes – exogenous or endogenous (Romer, 1986 & 1990, Lucas, 1988)
Networks and creativity contribute towards social capital and endogenous growth
3. Networks and Social Capital
Networks: business and research networks, technological networks, community networks
Interregional and international networks (Frenz & letto-Gillies, 2007; Döring & Schellenbach, 2006)
Network effects: benefits to each member increase with network size
Networks, increasing returns and social capitalNetworks may lock in negative effects, so need to
be developed and renewed
4. Creativity and Social Capital
Growing interest in creativity and the ‘creative class’ (Florida, 2002)
Florida’s creativity indexCreativity includes adaptation and application of
existing ideas as well as the creation of new ideas and is often involves complementary effort
Creativity requires openness and creative tension and the absence of barriers to creativity (Bohm & Peat, 1987)
5. Social Capital, Innovativeness
Social capital, endogenous effects and innovativeness or ‘innovative milieu’
Innovativeness based on social capital cannot be copied or transferred from one region to another (Aula & Harmaakorpi, 2008) – hence regional competitiveness
Spread of knowledge through networks and creative cooperation
6. Reputation Building
Innovativeness and regional competitiveness promote reputation- and reputation contributes to social capital
Reputation is path dependent (David, 2007) – good and bad
‘Lock-in’ may block out good or bad newsReputation is complementary to regional
competitiveness
The Theoretical Model
Social Capital
Reputation
Innovativeness
Regional Competitiveness
Networks
Institutions
Creativity
7. The Case Study: DigitalCity
DigitalCity project: the latest in a line of regeneration initiatives
Links between the University of Teesside, Middlesbrough Borough Council, One NorthEast and Tees Valley Regeneration
Phase 1: Institute of Digital MediaPhase 2: The BoHo Zone
DigitalCity Phase 1: IDI
Business units Studios for DigitalCity fellows and postgraduates Specialist laboratories, innovation rooms and conference
facilities
DigitalCity Phase 2: The BoHo Zone
Space for digital businesses and support services Live-work accommodation for creative professionals Specialist units for artists
8. Conclusion
DigitalCity links the University, the town centre and a new riverside development – physically and creatively
But . . . can Middlesbrough establish a creative culture with a legacy of industrial decline and social deprivation?
Perhaps – given its industrial ‘creativity’ in past?
Middlesbrough Transporter Bridge
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