ABSTRACT
The remaining chapters of the book examine theories which focus exclusively on supply components to explain long-period regional dynamics. In the light of the theories described in the previous chapter (in particular the export-base model), therefore, they not only view exports as the engine of development but take a step further by identifying the factors responsible for the greater export capacity, and therefore the competitiveness, of a local economic system. If an economic system is able to export – or in other words, if it is able to gain a role in the international division of labour – it must enjoy some form of advantage: it must be able to produce goods at lower prices, supply higher-quality products, and place new goods on the market. An economic system can fulfil these various requirements if it has more efficient productive processes, a complex and advanced local industrial system, modern production services and infrastructures, good quality resources, and advanced production technologies – and also if its area comprises broad, diversified and advanced knowledge developed by complex cultural, social and economic processes.
