‘Globalizing’ regional development: a global production networks perspective

Abstract

Recent literature concerning regional development has placed significant emphasis on local institutional structures and their capacity to ‘hold down’ the global. Conversely, work on inter‐firm networks – such as the global commodity chain approach – has highlighted the significance of the organizational structures of global firms’ production systems and their relation to industrial upgrading. In this paper, drawing upon a global production networks perspective, we conceptualize the connections between ‘globalizing’ processes, as embodied in the production networks of transnational corporations, and regional development in specific territorial formations. We delimit the ‘strategic coupling’ of the global production networks of firms and regional economies which ultimately drives regional development through the processes of value creation, enhancement and capture. In doing so, we stress the multi‐scalarity of the forces and processes underlying regional development, and thus do not privilege one particular geographical scale. By way of illustration, we introduce an example drawn from recent research into global production networks in East Asia and Europe. The example profiles the investments of car manufacturer BMW in Eastern Bavaria, Germany and Rayong, Thailand, and considers their implications for regional development.

Territorial Knowledge Dynamics: From the Proximity Paradigm to Multi-location Milieus

“…The concept of "from elsewhere" is now differentiated: the places are clearly identified, as are complementary and/or competing ones. At the time of global production networks (Coe et al, 2004), production systems became dispersed in space, but formed relatively stable configurations that combined mutual specializations and integration within multi-location systems. Global cities as described by Sassen (1991) constitute a good example of this, but such configurations also emerged in the industrial sector: for example, Airbus and its activities in various countries or the clothing and fashion industry that works in an integrated way in several continents.…”

“…These dynamics are becoming a major challenge regarding mobility and anchoring. Local institutional capacities of value creation, value enhancement and value capture (Coe et al, 2004) are all factors that affect modalities of knowledge mobility and anchoring.…”

“…For Coe et al (2004), bargaining capacity of local institutions is not equally distributed. Some spaces sustain the global production networks and cannot control their fate and other ones are able to concentrate and retain power of attractiveness through high capacity of value capture.…”

What conditions supply chain strategies of ports? The case of Dubai

“…Hall and Robbins (2007) make a distinction between insertion, integration and dominance as strategic goals of port authorities and operators, carriers, and other supply chain services providers. These goals may be viewed as the logistics sector analogues of the wider regional development goals of value creation, enhancement and capture discussed by Coe et al (2004). 1 However we do not use their terms because we are reluctant to assume that logistics sector actors are necessarily always engaged in the wider regional development process as commonly understood by economic geographers.…”

Small and Medium Enterprises (SMEs) Competing in the Global Business Environment: A Case of Malaysia

“…In addition, the owner of the SMEs usually makes vital decisions such as investing for the expansion of the business or venturing into new market. Furthermore, integrated R&D has a possibility to reap economies of scale in global production networks (Coe et al, 2004). Without adequate knowledge, information and systematic analysis, it is even harder to assess potentials and threats of the global business to the companies.…”