Companies, Cultures, and the Region: Interactions and Outcomes

Abstract

European integration is based on the idea of regional differentiation. Therefore, a diverse range of specific regional cultures have to be accepted, and space for individual paths of regional development is required. This also influences economic competitiveness and innovation because regional differentiation enables complementarities and synergies. Nevertheless, this European idea is under pressure as the reality of European integration is more and more driven by the homogenization, standardization and deregulation that go hand in hand with increasing globalization. A strong commitment to local/regional traditions and specialities is therefore required to counterbalance these trends and thus reinforce the underlying European model. This idea was the starting point for a European 6th Framework Programme project on the interaction between regional culture and company culture (CURE-Corporate Culture and Regional Embeddedness). The focus was on the culture of firms being influenced by regional culture, as a potential strength-this regional culture needs to be activated and can thus only be fully realized via interaction with regional companies. Increasingly, this interaction is of special interest in regional innovation studies.There are as yet however few systematic empirical studies into these topics; in regional science empirical results are discussed which highlight the "weight" of regional culture, Saxenian's (1994) comparative study on Silicon Valley and Route 128 being prime examples of the impact of regional cultures on company behaviour. Another example is provided by Maillat et al. (1996), who analyse the diverging development paths of the Swiss and French Jura Alps, demonstrating that regional consensus, shared future visions, common

Path Renewal or Path Dependence? The Role of Industrial Culture in Regional Restructuring

“…Noteworthy for our line of argument is a Special Issue of European Planning Studies published in 2011 that deals with the interdependence of regional and corporate cultures and highlights regional culture as a decisive element of regional development. Clifton, Gärtner, and Rehfeld (2011) argued in their editorial that there is a need for individual paths of regional development, where regional culture has an anchoring role "embedding firms in the regional economy" [16] (p. 1858). In contrast to Grabher (1993), they argued that "specific cultural frames have the potential to give overall orientation and guide regional actions" [16] (p. 1862).…”

“…Clifton, Gärtner, and Rehfeld (2011) argued in their editorial that there is a need for individual paths of regional development, where regional culture has an anchoring role "embedding firms in the regional economy" [16] (p. 1858). In contrast to Grabher (1993), they argued that "specific cultural frames have the potential to give overall orientation and guide regional actions" [16] (p. 1862). Regional culture is thus seen as a resource which could be mobilized for regional renewal instead of constraining it.…”

“…This assumption is also increasingly forwarded by concepts such as clusters, learning regions, or regional innovation systems [26]. In their understanding of culture, Clifton et al [16] follow DiMaggio [27] and define it as a collective experience comprising "shared cognitions, values, norms and expressive symbols" [16] (p. 1858), while at the same time integrating tensions and conflict. The interdependence of regional and corporate cultures depends on the degree of firms' embeddedness in their regional context, also referred to as "productive chorality" [28].…”

“…In such places, the long economic predominance of industrial production has brought about a particular cultural setting made up of certain intangible assets, such as skills, attitudes, traditions, tangible monuments, and artefacts [15]. Hence, the concept ties up to a holistic understanding of development, emphasizing in particular the role of a specific regional culture as an "anchor" in both social and economic terms [16].…”

Towards a holistic understanding of county of origin effects? Branding of the region, branding from the region

“…As we have seen above, symbolic and intangible factors are becoming more important for successful regional images or brands. At the same time, it is increasingly apparent that the bodies charged with setting the agenda is this area can at best play a only a guiding or influencing role rather than an instrumental one, with civic society and "more bottom" up movements -which we can also think of as regional culture (Clifton et al, 2011) -taking centre stage. We should however keep in mind the observation of Hall (1993, p. 354) who suggests that "paradoxically, globalisation seems also to have led to a strengthening of "local" allegiances and identities within nation-states".…”