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Social Capital as a Determinant of Regional Competitiveness. Andrew Harrison University of Teesside United Kingdom. 1. Introduction. The concept of regional competitiveness ( Krugman , 1996; Camagni , 2002) The link between social c apital, innovativeness, and regional competitiveness
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Social Capital as a Determinant of Regional Competitiveness Andrew Harrison University of Teesside United Kingdom
1. Introduction • The concept of regional competitiveness (Krugman, 1996; Camagni, 2002) • The link between social capital, innovativeness, and regional competitiveness • Networks, creativity, and the creation of social capital • Theoretical model and DigitalCity case study
2. The Formation of Social Capital • Social capital: - structure of relationships in a society – founded on trust embodied in social norms and networks (Putman et al., 1993) - interaction between institutions and processes – exogenous or endogenous (Romer, 1986 & 1990, Lucas, 1988) • Networks and creativity contribute towards social capital and endogenous growth
3. Networks and Social Capital • Networks: business and research networks, technological networks, community networks • Interregional and international networks (Frenz& letto-Gillies, 2007; Döring & Schellenbach, 2006) • Network effects: benefits to each member increase with network size • Networks, increasing returns and social capital • Networks may lock in negative effects, so need to be developed and renewed
4. Creativity and Social Capital • Growing interest in creativity and the ‘creative class’ (Florida, 2002) • Florida’s creativity index • Creativity includes adaptation and application of existing ideas as well as the creation of new ideas and is often involves complementary effort • Creativity requires openness and creative tension and the absence of barriers to creativity (Bohm & Peat, 1987)
5. Social Capital, Innovativeness • Social capital, endogenous effects and innovativeness or ‘innovative milieu’ • Innovativeness based on social capital cannot be copied or transferred from one region to another (Aula & Harmaakorpi, 2008) – hence regional competitiveness • Spread of knowledge through networks and creative cooperation
6. Reputation Building • Innovativeness and regional competitiveness promote reputation- and reputation contributes to social capital • Reputation is path dependent (David, 2007) – good and bad • ‘Lock-in’ may block out good or bad news • Reputation is complementary to regional competitiveness
The Theoretical Model Networks Reputation Regional Competitiveness Social Capital Institutions Innovativeness Creativity
7. The Case Study: DigitalCity • DigitalCity project: the latest in a line of regeneration initiatives • Links between the University of Teesside, Middlesbrough Borough Council, One NorthEast and Tees Valley Regeneration • Phase 1: Institute of Digital Media • Phase 2: The BoHo Zone
DigitalCity Phase 1: IDI • Business units • Studios for DigitalCity fellows and postgraduates • Specialist laboratories, innovation rooms and conference facilities
DigitalCity Phase 2: The BoHo Zone • Space for digital businesses and support services • Live-work accommodation for creative professionals • Specialist units for artists
8. Conclusion • DigitalCity links the University, the town centre and a new riverside development – physically and creatively • But . . . can Middlesbrough establish a creative culture with a legacy of industrial decline and social deprivation? • Perhaps – given its industrial ‘creativity’ in past?
