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.
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Masagus M. Ridhwan and Pakasa Bary
Edited by Tüzin Baycan and Hugo Pinto
Tüzin Baycan and Hugo Pinto
This volume brings together regional scientists interested in the study of crisis and innovation dynamics. Resilience here is used as a bridging notion to connect different types of theoretical and empirical approaches to the comprehension of the impacts of economic turbulence at the system and actor levels. The volume helps to rethink how regional resilience can be improved and how the social aspects of vulnerability, resilience and innovation can be integrated. It also addresses recent theories and concepts related to research on crisis, resilience and innovation dynamics, providing a valuable overview and introduction to this rapidly emerging field for academics, policy-makers, researchers and students who share a common interest in and commitment to resilience and innovation.
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.
Roberta Comunian and Lauren England
Our understanding of clusters and their evolution and resilience has expanded in the last decades. However, little research has considered the importance of resilience and evolution with specific reference to creative clusters. The chapter aims to connect the emergent literature on resilience and evolutionary perspectives in economic geography with our current knowledge and understanding of creative clusters. Focusing on the craft sector in the UK, the concept of resilience is explored as a conceptual framework to explain and explore the shift from industrial to post-industrial economies. The focus of the chapter is on the resilience of knowledge – and the role of networks in supporting this resilience in the shift between industrial production and creative making.
Mete Başar Baypınar
Knowledge-intensive sectors are a significant interest both for regional planners and policy makers, as they promise better jobs and economic growth. The industry is characteristically a networked industry of a large number of clusters, where new clusters from emerging countries continuously join. The industrial spatial structure has changed significantly, after almost every major policy change or crisis. While some clusters seem to dominate and persist, others have been lost at the expense of emerging clusters. This study attempts to focus on the software industry in Turkey, where the industry has multiple locations. The resilience of the industry seems to be highly dependent on the changes in the global industrial structure, economic and policy shocks, and state support. Depending on an adaptive resilience perspective and on an extensive literature survey, expert opinions and secondary data, the study finds that mixed peripherality–core properties, creation and retention of variation, knowledge spillovers and anticipatory behaviors of actors in the industry all play critical roles on the resilience of local software clusters. Findings of the study suggest that policy makers should not adopt generic strategies but focus on well-defined targets and unique strategies regarding the life cycle of the subject industry.
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.
Francisco Javier Ortega-Colomer, Elias Pekkola and Tuomo Heinonen
This study analyses two different geographical settings in a comparative perspective where higher education institutions have played an important role in the modernization of industrial manufacturers. Both settings – the cities of Alcoy (Spain) and Tampere (Finland) – are historically important centres of industry, which showed a down-turn in production, but now aim to be new kinds of innovation hubs in their respective areas. A historical analysis, based on secondary data, is presented as a means to understand the recent resilience and evolution of both regions, in terms of their capacity for facing societal challenges in different periods, such as the growth of inequalities, the creation of new related industries, the globalization process and the financial crisis. An emphasis is placed on the complex relationships among geographical, institutional and individual dynamics that enable the commissioning of heterogeneous innovation processes for resilience. The variety of cooperation and competition linkages identified through qualitative interviewing among local actors in different periods allows us to show practical guidelines with the objective of not inventing the future of the university without being sure lessons have been learned from past successes and failures.
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).