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Economic Development, Organization & Territory

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  Revue d’économie industrielle Economic development, organization of production and territory Gioacchino Garofoli Abstract The emergence of new models of development and the reversal of territorial trajectories have shown the incapacity of oldtheoretical models in fitting the changing reality. The emergence of localized networks among firms and external economies hasled to a new paradigm for economic development based on territory.The paper stresses the existence of different patterns of local development and deals with the key variables for the singling outtheir typology. Résumé L'émergence de nouveaux modèles de développement et le renversement des trajectoires territoriales ont démontré l'incapacitédes anciens modèles théoriques à comprendre la réalité économique en voie de transformation. L'émergence de réseauxd'entreprises territorialisés et les économies externes ont conduit à un nouveau paradigme du développement économique quiest fortement fondé sur le territoire.Cet article souligne l'existence de plusieurs modèles de développement local et discute les variables clefs pour la constructiond'une typologie de ces modèles. Citer ce document Cite this document : Garofoli Gioacchino. Economic development, organization of production and territory. In: Revue d’économie industrielle, vol.64, 2e trimestre 1993. pp. 22-37 ; doi : https://doi.org/10.3406/rei.1993.1475https://www.persee.fr/doc/rei_0154-3229_1993_num_64_1_1475 Fichier pdf généré le 09/04/2018  Gioacchino G ROFOLI Université de Pavie ECONOMIC DEVELOPMENT ORGANIZATION OF PRODUCTION ND TERRITORY I. — INTRODUCTION Iwill deal, in this paper, with territory and economic development, underlying the active role of the territory in the process of development. With respect to these issues, particularly to the relationship between economic development and territorial organization of production, my departure point is that we need a bridge between theory and reality, in fact we are in a phase of transformation not only with reference to economic organization (and world economic scenarios) but also to economic theory. It seems to me quite important, in this phase, to work in a more systematic way on inductive analysis, exploring deeply the different cases of development to reconstruct some typologies of local development. In my introduction I will deal with two main issues, and precisely : a) the crisis of paradigms in regional development ; b) the interaction between local and global. What seems to be particularly important, in the economic transformation of the last two decades, is the progressive emergence - at all the observable scales : from local to national and international level - of new models of development, of reversal of territorial trajectories, of the incapacity of the old theoretical models to interpret the changing reality (cf., mainly, the fall of the core-periphery paradigm). With the new models of development there are emerging new actors (local institutions, local State, collective private subjects/actors,...) that are able to influence the process of economic and social transformations. These actors have been forgotten from previous theoretical schemes. Moreover there is the breakdown of the idea of deterministic laws of development and new opportunities are emerging. Local communities have some chances (and responsibilities) to promote deve- 22 REVUE D'ÉCONOMIE INDUSTRIELLE — n° 64, 2e trimestre 1993  lopment ; there are opportunities (higher or lower) everywhere ; different, of course, will be the paths to follow and the policies to introduce and to implement according to the different models and the different goals to fulfil. But another point is important to underline : the overall mechanism of development is not a zero sum game, that means the relationships between regions cannot be based only on a competitive struggle. To conclude this first point it is necessary to underline the role of endogenous variables and external economies (external to the firms but internal to specific areas) that have given new centrality to the territory (interpreted as the sedimentation of specific knowledges and cultures) and forms of social regulation managed locally. The second point of this introduction concerns the relationship between local and global/international. It could seem a quite strange position to investigate the role of local economies in a world more and more globalized. But we must take into account the following two phenomena : 1) The crisis of the fordist model and the decreasing role of the forms of social regulation at the national level ; 2) the emerging of overnational governance (cf., for instance, the EEC governance), in one side, and of local and regional governance (cf. the decentralisation laws in several countries, like Italy, France, Spain), in the second one, on a large set of economic and social issues that let decrease the role of national governance. So, the increasing role of external economies and agglomeration advantages and the internalization of production lead to a contemporary puzzle posed by the marked reagglomeration of production, in one hand, and the globalization of economic flows on the other (Scott and Storper, 1990). Local and international become, then, the two poles of a new dialectics of development : the firm is then oriented to the local dimension (to turn into account the stock of techno-scientific and cultural and professional knowledges) and to the external dimension (looking for stimuli and provocations for the innovation, the productive differentiation, to organize new networks of exchanges and collaborations). According to the networks among firms then, it is possible to note that information, goods and components exchange networks are realised both at the local level and at the international one, but it is at the local level that the culture of collaboration among firms is acquired. II. — THE EMERGENCE OF TERRITORY Polarized development, concentrated territorially, and the diffusion of development from above have for some time been the dominant theoretical paradigm on which development strategies and regional policies have been based. Development was made possible by the continuous expansion of large scale industry, prevalently localized in large urban centres since the typology of technological inno- REVUE D'ÉCONOMIE INDUSTRIELLE — n° 64, 2e trimestre 1993 23  vation, economic policies and the development of infrastructures allowed the formation of large scale economies and growing external economies (Garofoli, 1983b, 1984a, 1991b). The development policy based on the transfer of the model based on big business (by implicitly accepting the theory of automatic mechanisms of income multiplier and new economic linkages) has characterized the greater part of government interventions for a number of decades both in developed and developing countries. In the past 10 to 15 years the growing inability of the functionalist model to explain the ever more complex redistribution of productive activities over territory and the emergence of autonomous patterns of development in many relatively peripheral regions (1) have progressively attracted scholars' attention to the territorial dimension of development and to the categories of environment (or milieu ) and territory seen as the sedimentation of specific and interrelated historical, social and cultural factors in local areas which generate significantly different processes of development directly due to local specifications (2). These considerations lead us to a new paradigm for the research of economic development mainly based on territory, while at the same time consideration regarding the local characteristics of models of endogenous development, including its internal control, gives rise to the paradigm of development from below (Stöhr, 1978, 1981 and 1984). During the late 1970s and the early 1980s the literature, at an international level, on endogenous and self-centred development, on territorial and agropolitan development (Friedmann and Douglass, 1975 ; Fried- mann and Weawer, 1979), on the mobilization of indigenous potential (CCE, 1981), etc., began to increase notably. The end result of these varied reformulations of the problem of development has been above all a different concept of space held by economists. Space is not only the distance between different places, something which conditions the exchange of goods and a source of cost for economic agents, as in the traditional theories of industrial location. In these new interpretations space assumes the distinguishing feature of territory ; it becomes a strategic factor of development opportunities and of its specific characteristics. Territory represents a clustering of social relations, it is also the place where local culture and other non-transferable local features have been sedimented. It is the place where men and business establish relationships, where public and local institutions intervene to regulate society. Territory represents the meeting place of market relationships and social regulation forms, which determine different forms of production organization and different innovative capacities (regarding both products and processes) leading to a diversification of products presented to the market not simply on the basis of relative cost of factors (Garofoli, 1991a). The relationship between business systems and environment is then highlighted and constitutes the basis for the frequent existence of external economies to the firms, but internal to the area. These external economies make the adoption of (1) Cf., for instance, the collection of papers in Garofoli, 1992 a. (2) Cf., for instance, Vasquez Barquero, 1988 ; Pecqueur, 1989 ; Garofoli, 1991 a. 24 REVUE D'ÉCONOMIE INDUSTRIELLE — n° 64, 2e trimestre 1993

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