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This paper is a historical account of the process by which Michael Porter and INCAE Business School put together a regional competitiveness strategy for Central America that was officially adopted by the governments of five participating countries, and implemented through a series of Presidential Summits that occurred between 1995 and 1999. The paper provides a unique case study on the adoption of the concepts put forth by Porter in his book “The Competitive Advantage of Nations” (1990) at the highest level of government. The study arrives at a series of practical implications for policy makers that are particularly relevant for the implementation of supra-national regional strategies.

The authors conduct an extensive literature review of 190 policy papers produced by INCAE Business School, that are used to recreate the historical evolution of the regional competitiveness strategy. The effect of Porter’s intervention is also assessed by comparing the main economic indicators of each participating country with those of 2005-2010. One of the authors was the main protagonist in the successful implementation of the strategy, and the paper relies partially on his accounts of events.

This study describes how economic policy in Central America was profoundly influenced by Michael Porter’s thinking in the second half of the 1990s. These policy changes promoted international competition of Central American clusters and firms, and opened the region for international investment and tourism. The region experienced important increases in its economic integration, its international trade, foreign direct investment and tourist arrivals. Gross domestic product growth was accelerated in Honduras and Nicaragua.

Like all case studies, this study has limits related to the generalizability of its conclusions. Additionally, it is not possible to determine the precise nature of the relation between the implementation of the regional economic strategy, and the impact on economic growth, integration, FDI attraction and exports.

The paper has several practical implications that relate to the design of regional economic strategies. First, it identifies policy areas that are more effective as part of regional strategies, and distinguishes them from those that should be resolved at the national level. Second, it suggests a process that can facilitate execution. Finally, it provides an example of the coordinating role that can be assumed by an academic institution such as INCAE.

The Central American Competitiveness Initiative provides a unique setting to study the implementation of competitiveness policy for several reasons. First, in all countries in Central America, Michael Porter’s diamond framework (1990) and cluster theory were officially adopted at the highest level of government. Second, in addition to their individual competitiveness strategies, all countries adopted a regional strategy for cooperation and economic integration. Finally, the Central American Competitiveness Initiative was founded on one of the first competitiveness think tanks of the world.

Tourism is considered today to be the leading economic activity, contributing more than 10% to the world's gross domestic product. Given its importance, especially in developing countries, it becomes significant to study ways to improve its competitiveness. This chapter discusses ways to enhance the development and competitiveness of tourism regions. It uses local or territorial economic development and empowerment as its theoretical frameworks in order to examine social capital. The focus will be on how the latter can be a factor supporting tourism development at local levels. Lebanese regions are used to show how social capital is affecting competitiveness.

The purpose of this paper is to present a new methodology to assess the outward connectivity among regional economies in the European Union (EU) and derives policy lessons for the design of regional innovation and competitiveness-enhancing strategic frameworks, with particular reference to research and innovation strategies for smart specialisation (RIS3).

The authors study the network of inter-regional trade flows in the EU25 in the year 2007. Trade data are taken from the PBL Netherlands Environmental Assessment Agency database and mapped onto weighted directed networks in which the nodes represent regions and the links are flows of goods. The authors measure several structural characteristics of the networks, both global properties and centrality indicators describing the position of individual regions within the system.

European regions appear to be mostly integrated in the European single market. Strengths and weaknesses of individual regions are discussed based on rankings obtained from network centrality indicators. Specific policy implications in the context of RIS3 are derived in the case of the Spanish region of Andalusia.

The authors show the potential of the methodology for providing a new family of indicators of the external connectivity of regional economies that can be used by regions wishing to develop their own RIS3 for 2014-2020, as required by the EU in the context of the new cohesion policy framework.

The characteristics of a EU-wide inter-regional network of trade flows are obtained and thoroughly discussed for the first time. A unique and original instrument suitable for inter-regional comparison is developed and tested.

The purpose of this paper is to develop an understanding of entrepreneurship that can help researchers, policymakers and practitioners develop entrepreneurial responses to the current economic, environmental and socio-spatial crisis.

The paper adopts a conceptual approach. Hudson’s diagnosis of the current patterns of production is applied to the two dominant streams of theorising on entrepreneurship: the opportunistic discovery view and the resourcefulness view of, for example, effectuation.

The analysis indicates that the opportunistic discovery view and, to some extent, the resourcefulness view are both inadequate as conceptual platforms for entrepreneurial responses to the economic, environmental and socio-spatial crisis. Instead, an alternative perspective on entrepreneurship is developed: Entrepreneurship as re-sourcing. The perspective emphasises the importance of building regional-level resilience through entrepreneurial activity that sources resources from new places and uses these resources to create multiple forms of value.

The paper draws attention to dysfunctions in the current theorising on entrepreneurship in light of the economic, environmental and socio-spatial crisis. Instead, the authors offer an alternative. In doing so, the paper also points to the difficult trade-offs that exist between, for example, long-term resilience and short-term competitiveness and growth on a regional, as well as firm level.

This paper adds to research by offering an alternative view of entrepreneurship grounded – not in economics – but in economic geography, thus highlighting the importance of productions’ grounding in material reality and the importance of addressing non-economic concerns in our way of thinking about entrepreneurship.

This study aims to advance the state of knowledge of the relationship between transportation and economic development by investigating how firms in competitive industry clusters use transportation networks and what role those networks play in the competitiveness of these clusters.

The approach combines quantitative and qualitative techniques to geographically identify competitive industry clusters and to investigate the role of transportation. The US Cluster Mapping tool is used to identify competitive clusters by employment location quotients in 25 Minnesota metropolitan and micropolitan regions. A total of 12 competitive clusters were selected for further study, and in-depth interviews and site visits were conducted with businesses in each cluster to explore the competitive importance of different modes of transportation.

Minnesota’s economic competitiveness is dependent on a well-functioning transportation system in all modes – truck, air, rail, and water. Access to global markets requires rail and truck to reach coastal ports. Air transportation is critical for high-value, low-weight, time-sensitive products such as medical devices or Mayo lab testing samples. Air service is important for customers at Minneapolis – St. Paul, St. Cloud, and Rochester, Duluth, as well as other Minnesota cities. Highway access and reliability is critical for key statewide clusters such as processed food and heavy machinery.

Study limitations include the representativeness of company interviews in generalizing for a cluster and industry employment as a measure of competitiveness.

These methods can yield valuable insights into how transportation functions as an input within competitive industry clusters and how it can inform economic development strategies tailored to certain locations and industries.

This is a first-of-its kind study using industry clusters as a framework for examining the role that transportation plays in economic competitiveness.

The purpose of this paper is to analyse how the introduction of a liberalised regime for labour immigration in Sweden affected the self-selection of new immigrant entrepreneurs and to what extent the changes in entrepreneurial income among new immigrants was due to self-selection or to a changing business environment.

Based on rich microdata from Swedish administrative registers, this paper investigates how incomes changed during the years before and after the migration policy reform. By decomposing the income differential of new immigrant entrepreneurs arriving before and after the reform, this study estimates the contribution of a changed composition of migrants to the changing entrepreneurial income.

Entrepreneurial income among self-employed new immigrants improved after the reform, narrowing the immigrant–native income gap, while among employees, the income gap remained during the whole period of the study. Out of the total 10.9 per cent increase in log income, the authors find that 2.7 per cent was due to selectivity, i.e., changing characteristics of new immigrant entrepreneurs. The remaining 8.2 per cent was due to increased returns to characteristics, i.e., the characteristics of new immigrant entrepreneurs were better rewarded in the markets in the latter period. Hence, increases in entrepreneurial income among new immigrants were due both to self-selection and changes in the business environment.

The authors find that the migration policy reform had the effect of attracting successful immigrant entrepreneurs. Hence, the findings have implications for migration policy as well as for growth and employment policy.

This paper reveals a positive trend regarding income from the entrepreneurship of new immigrants after the liberalisation of labour immigration policy in Sweden. Theoretically and methodologically, the authors combine self-selection theory and the mixed-embeddedness perspective in a novel way, using rich data and a quantitative approach.

The cluster concept has had great influence on national and regional policies for growth and innovation in Sweden since it was introduced in the late 1990s. This article argues that while the cluster concept has been relatively uncontested on the national policy arena, it has been contested on the regional arena regarding its meaning and proper use. We scrutinize this contestation as a matter of power struggles between different actors concerning the preferential right of interpretation of which organizations, areas and innovations are to be considered as important in policies and practices promoting clusters. The article thus highlights the tricky balance act performed by policy makers and civil servants when deciding on prioritization versus diversification. The article contributes to the further development of both policies and theories on growth and innovation by empirically mapping and discussing the impact of power struggles on clusters as pathways to innovation. In order to exemplify these struggles, our study draws upon two separate studies: one of how the cluster concept has been used as a policy measure over time on national and regional level in Sweden (Säll, 2012) and another of the organization of alternative clusters by Women Resource Centers throughout Sweden (Lindberg et al., 2012). Comparing these two cases makes it evident that the perceptions of clusters that harmonize with prevalent hegemonic discourses of growth and innovation have to large extent enjoyed the preferential right of interpretation, however are at the same time challenged by alternative conceptions of clusters. When highlighted in relation to existing research on innovation, growth policy and power relations, the two empirical examples stand out as interesting cases of how innovation policy has been introduced as academic theory, translated to a political context and subject for contestations that has changed the initial meaning of the concept. Ultimately, it is concluded that the pathways to innovation in the Nordic countries are paradoxical, due to the paradoxical pathway of policies and practices to evoke innovation and change as the same as preserving traditional regional power structures.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

“It should also be noted that the objective of convergence and equal distribution, including across under-performing areas, can hinder efforts to generate growth. Contrariwise, the objective of competitiveness can exacerbate regional and social inequalities, by targeting efforts on zones of excellence where projects achieve greater returns (dynamic major cities, higher levels of general education, the most advanced projects, infrastructures with the heaviest traffic, and so on). If cohesion policy and the Lisbon Strategy come into conflict, it must be borne in mind that the former, for the moment, is founded on a rather more solid legal foundation than the latter” European Commission (2005, p. 9)Adaptation of Cohesion Policy to the Enlarged Europe and the Lisbon and Gothenburg Objectives.