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The nineteen nineties: new A data and new approaches

Looking back we may conclude that for most modern countries urban renewal in its classical form rebuilding and revitalizing nineteen century urban areas has been a temporary activity and consequently the same is true for the attached sub- urbanization of inner city activities mainly small scale manufacturing trade and wholesale. In many cities however some large scale manufacturing sites- sometimes extensively used because of the shrinking scale of production activities- stay behind in the central parts of urban areas like stranded whales on the beach.

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The outplacement of such old industrial plants is an important task for the next decades needed to create new space for urban development and an interesting new research field for firm migration experts. At the same time the majority of firms which leave the city are no longer industrial or wholesale firms but business services. Hence it is not surprising to see that firm migration research in the nineteen nineties shifts its attention to this fast growing and most mobile sector.

In the nineties the lessons of earlier decades are learned. The interest in firm relocation as a panacea for regional development has faded and instead it is now felt the regions should create the conditions for innovation and creation of new economic activities. Or if they lack the resources to do this effective regional subsidies should be given to them in order to build the required infrastructure knowledge centers etc. the regional funds of the European Union are a clear example of such a policy instrument.

Key concepts underlying the new policy adagio are regional agglomeration effects endogenous growth regional knowledge networks and learning regions. They all have one tune in common and that is that space matters for economic growth. In this view the focus in still on new economic activities as in the 1980s but there is also an emphasis on sustained economic growth. Only half of the new firms survive after ten years and the conditions for survival of innovations and new firms are as important as those for the creation process itself.

 In this process of bringing new ideas to maturity or new and small firms to larger corporations, the spatial and regional conditions may be important as well. Firm migration then may be considered as a locational strategy for removing restrictions to firm growth. This bring the issue of firm migration studies again to the fore but this time as the consequence of the coming of age of generations of new firms developing various locational strategies for comping with sustained growth.