Export driven economies fuel themselves through an octane boost of information. Information makes their way into opportunity finding, employment, and development. With the right methods of information transference regions can further develop their export driving economies by understanding how innovation fulfills demand-side and supply-side economics. Paul McPhee (2012) explores innovation strategy information spillover contributions as an important catalyst in simulating exports and employment.
Local development exists within a national context. Local stakeholders and business members work together to create development. Local networks and supply chains also rely on greater information links in national networks to be successful (Bathelt, 2005). In other words, there exists the tighter information transference within local networks and wider networks within the nation. Even though the author doesn’t state this it can also include information and resource vines throughout the globe.
This is demonstrated by international organizations that seek investment locations that have assets, organizational and institutional structures that support innovation information that fosters development (Paniccia, 2002). As a bounded rationality such organizations draw in this information to create new products and services that have market relevancy. Without the information sources full development is not possible due to a lack of development feed.
We can find a number of examples within the market. In Australia clusters formed from networks of regionally based firms within the wine, fishing, film, education, and tourism industries that collaborate and innovate collectively and individually through alliance, commissions, federations, and associations (Roberts and Enright, 2004). Each industry has the opportunity to work with other industries in both the local setting as well as the national setting to create new products and services. Local clusters exist within a wider national and international context.
The author found that information transference fostered exportation of products and services. A process of increasing the sourcing, generation, transferring, and sharing of information within regional networks is necessary to increase export related employment. This information is used for mutual development that impacts demand-side and then export-side growth. When information transference speeds up the opportunities from growth and exportation also increase and this can lead to higher levels of regional employment.
Comment: The study lends support to the concept that tighter formations of economic vines exist in clusters and these clusters are woven into regional hubs that are connected to other hubs both within a nation as well as across the globe. The success of local economies is based in the ability to quickly and easily transfer information and resources through their economic hubs. These hubs use their resources to create newer and better products.
Bathelt, H. (2005) Cluster relations in the media industry: Exploring the ‘distanced neighbour’ paradox in Leipzig. Regional Studies, 39, pp. 105-127.
McPhee, P. (2012). Export driven regional development: a comparison of policies based on tiberi-vipraio-hodgkinson innovation strategies and networked information flows. Australasian Journal of Regional Studies, 18 (1).
Pannicia, I. (2002) Industrial Districts: Evolution and Competitiveness in Italian Firms, Edwards Elgar, Cheltenham
Roberts, B. H. and Enright, M. (2004) Industry clusters in Australia: Recent trends and prospects. European Planning Studies, 12(1), pp. 99-121.