By Allen J. Scott
Concentrating on the subject of the at the same time constitutive kinfolk among geographic area and the commercial order, Allen J. Scott discusses the issues of the site of financial actions, studying and innovation in commercial platforms, and financial improvement. those difficulties are handled in either theoretical and empirical terms.
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Extra info for Geography and Economy (Clarendon Lectures in Geography and Environmental Studies)
Any expansion of the market for the Wnal products of this network will be associated with growth and change in at least Geography and the Division of Labour 19 one of three directions, namely (a) the enlargement of individual Wrms, (b) an increase in the number of existing Wrms of any given type, and (c) extension of the social division of labour. The Wrst and second of these outcomes are governed by the structure of intra-Wrm economies and diseconomies of scale. 4). A special but extremely important case for our purposes is represented by the situation where internal economies of scale and scope are limited, but where external economies of scale and scope are relatively strongly in evidence.
The points of origin of these external economies can be identiWed under the following general rubrics, though in a terminology that is very diVerent from the one employed by Marshall. Transactional interdependencies The co-location in one place of many producers bound together in a social division of labour makes it possible for them continually to Wne-tune their production activities by means of frequent readjustment of their input–output relations. This feature is important in disintegrated industrial systems, especially where producers are subject to great uncertainty and market competition, and above all where competition is based on constant product diVerentiation.
As fordist industrialization in North America and Western Europe continued to expand apace after the Second World War, it became apparent to contemporary observers that a very distinctive model of regional development and the division of labour was also being played out. Hirschman (1958) and Myrdal (1959), in particular, identiWed this model in terms of a system of core–periphery interactions. Hirschman couched his ideas in the vocabulary of polarization and trickle-down, while Myrdal used the terms backwash and spread, but there is a remarkable correspondence between their respective positions, as well as in Geography and the Division of Labour 35 regard to their adoption of cumulative causation as the basic mechanism of regional growth and development.