Modern Location Factors in Dynamic Regions

Oliver Falck
Ifo Institute for Economic Research

Stephan Heblich
University of Passau

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     Last modified: May 21, 2007

Abstract
As different regions within a single industrialized country perform differently there must by some remaining regional competitive advantages—even in the “Age of Globalization.” This paper engages in a quest to discover modern location factors and how and why they are necessary for regional dynamics and growth. In doing so, the driving forces behind these modern location factors are linked with regional performance and eventually lead to a concept of a regional lifecycle and its key dynamics. Using data that paint a comprehensive picture of industry and regional development in Germany we try to find empirical evidence for our approach.