Social Capital as a Determinant of Regional Competitiveness

Andrew HarrisonUniversity 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 capitalNetworks 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 indexCreativity 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 newsReputation is complementary to regional

competitiveness

The Theoretical Model

Social Capital

Reputation

Innovativeness

Regional Competitiveness

Networks

Institutions

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 MediaPhase 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?

Middlesbrough Transporter Bridge