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At the same time as we can observe strong tendencies of a globalisation of R&D, we also can observe a strong spatial clustering of R&D and related innovative activities. The standard explanation in the literature of the clustering of innovative activities is that such clusters offer external knowledge economies to innovative companies, since they are dependent upon knowledge flows and that knowledge flows are spatially bounded. Obviously, location is crucial in understanding knowledge flows and knowledge production, since knowledge sources have been found to be geographically concentrated. There are two major performers of R&D: industry and universities. It seems rather straight-forward to assume that industrial R&D might be attracted to locate near research universities doing R&D in fields relevant to industry. Already as far back as in the 1960s a number of case studies confirmed the important roles played by Stanford University and MIT for commercial innovation and entrepreneurship. During the years a large number of formal studies have presented evidences of a positive impact of university R&D on firm performance. The question is, does it also work the other way around? Does industrial R&D function as an attractor for university R&D? We may actually think of several reasons why university R&D may grow close to industry R&D. First of all political decision-makers may decide to start or expand university R&D at locations where industry already is doing R&D. Secondly, we can imagine that industry doing R&D in a region might use part of their R&D funds to finance university R&D. Thirdly, universities in regions with industrial R&D might find it easier to attract R&D funds from national and international sources due to co-operation with industry. Obviously, not all types of university R&D attract industrial R&D. There are reasons to believe that, in particular, university R&D in natural, technical and medical sciences attracts industrial R&D but that there are also strong reasons to believe that there are variations between different sectors of industry regarding how dependent their R&D is to be located close to university R&D. The above implies that there are behavioural relationships between industrial R&D and university R&D and vice versa. However, the litrature contains few studies dealing with this problem. Most studies have concentrated on the one-directional effect from university R&D to industrial R&D and the outputs of industrial R&D in most cases measured in terms of the number of patents and neglected the possible mutual interaction. However, if there is a mutual interaction between university and industry R&D, and if there are knowledge externalities involved, then we can develop a dynamic explanation to the clustering of innovative activities based on positive feedback loops. This would imply strong tendencies to path dependency and that policy initiatives to transfer non-innovative regions to innovative regions would have small chances to succeed. The fact that knowledge flows seem to be spatially bounded implies that proximity matters. Most contributions analysing spatial knowledge flows have used very crude measures of proximity. However, there are some authors that have argued that proximity could be measured using accessibility measures. Accessibility measures can be used to model interaction opportunities at different spatial scales: local, intra-regional and inter-regional. The purpose of this paper is to analyse the locational relationship between industry R&D and university R&D in Sweden using a simultaneous equation approach and to analyse existing differences between different science areas and different industry sectors.

Contents -- Preface -- 1. Introduction / Martin Andersson, Lina Bjerke and Charlie Karlsson -- Part I: Geography of structural change, employment and productivity -- 2. Exploring regional differences in the regional capacity to absorb displacements / Kristina Nyström and Ingrid Viklund Ros -- 3. Productivity and cross border accessibility to human capital- a study comparing norwegian and swedish border regions / Tobias Arvemo and Urban Gråsjö -- 4. Inter- and intraregional balance: drivers of change and development / Andreas P. Cornett -- 5. Is the convergence debate over?- structural changes and labour productivity / Amjad Naveed -- Part II: Geography of entrepreneurship and business dynamics -- 6. A local perspective on entrepreneurship and informal institutions / Sabrina Fredina and Marina Jogmark -- 7. Revisiting broadband and new firm dynamics / Jitendra Parajuli and Kingsley E. Heynes -- 8. The impact of individual characteristics and regional agglomeration on the survival of self-employed firms / Sam Tavassol and Viroj Jienwatcharamongkhol -- 9. Variations in new firm life duration for immigrant and native entrepreneurs / Veronique Schutjens, Nardo De Vries and Anna Risselada -- 10. International outsourcing and the global value chain: evidence for Sweden / Trudy-Ann Stone -- Part III: Geography of innovations, cooperations and growth -- 11. Knowledge absorption in the development of export products / Peter Warda and Börje Johansson -- 12. Cross-border innovation cooperation: partner selection, national borders and knowledge bases / Rannaveig Edda Hjaltadóttir, Teemu Makkonen and Nils Karl Sørensen -- 13. Creative class vs. individual creativity- a multi-level approach to the geography of creativity / Christoph Alfken -- Part IV: University spinoffs- barriers and challenges -- 14. Barriers to the generation of university spin-offs: a case study of Vienna / Harvey Goldstein, Verena Peer and Sabina Sedlacek -- Index.

This Handbook provides an overview and assessment of the state-of-the-art research methods, approaches and applications central to economic geography. Understanding spatial economic outcomes and the forces and mechanisms that influence the geography of economic growth is of utmost importance and demands substantial theoretical and empirical research in economic geography, spatial economics and regional science. Such research is critically dependent upon good and reliable empirical data, and it is here that this Handbook contributes, providing a broad overview of up-to-date research methods and approaches. The chapters are written by distinguished researchers from a variety of scholarly traditions and with a background in different academic disciplines including economics, economic human and cultural geography, and economic history. Researchers and academics in economics and economic geography will find this a fundamental reference point and will benefit from the comprehensive assessment of research methods and approaches in the field. Practitioners and policy-makers will also find the practical applications to be of utmost value.

Purpose
With the recognition that generating economic growth is not the same as sustaining it, the challenge to catch-up and growth literature is discerning between these processes. Recent research suggests that the decline in the frequency of "shrinking" episodes is more important for long-term development than higher growth rates. By using a framework centred around social capabilities, this study aims to investigate the effects of income inequality and poverty on economic shrinking frequency, as opposed to previous literature that has exclusively had a growth focus. The aim is to investigate how and why some societies might be more resilient to economic shrinking.


Design/methodology/approach
The research is a quantitative study, and the authors build a longitudinal data set including 23 developing countries throughout 42 years to test the paper's purpose. This study uses country and period fixed-effects specifications as well as cross-sectional graphical representations to investigate the relationship between proxies of economic inclusivity and the frequency of shrinking episodes.


Findings
The authors demonstrate that while inclusive societies are more resilient to shrinking overall, it is changes in poverty levels, but not changes in income inequality, that appear to be correlated with economic shrinking frequency. Inequality, while still an important element to explain countries' growth potential as an initial condition, does not seem to make the sample more resilient to shrinking. The authors conclude that the mechanisms in which poverty and inequality are correlated with the catch-up process must run through different channels. Ultimately, processes that explain growth may intersect but not always overlap with the ones that explain resilience to shrinking.


Originality/value
The need for inclusive growth in long-term development has been championed for decades, yet inclusion has seldom been explored from the shrinking perspective. Though poverty reduction is already an important mainstream political objective, this paper differentiates itself by providing an alternate viewpoint of why this is important. Income inequality could have more of an economic growth limiting effect, while poverty reduction could be required to build resilience to economic shrinking. Developing countries will need both growth and resilience to shrinking, to catch-up with higher-income economies, which policymakers might need to balance carefully.

AbstractThis study revisits the question of what impact Japanese colonialism had on the long-term economic development of North and South Korea. Factor endowments, economic activity and economic performance are compared between the regions that later became parts of North and South Korea, respectively. The study finds that important elements of the economic history of the peninsula have not been sufficiently acknowledged in much of the influential literature that uses Korea as an illustration of theoretical claims of the root causes of development. In particular, the fact that the economic divergence of northern and southern regions could be traced back to different colonial treatments – especially after mid-1920s – has often been overlooked when analysing the divergent post-partition development trajectories. The study suggests, based on a sectoral similarities analysis, that the initial dissimilar economic performance of North and South can at least partially be found in differences in political economy and economic trajectories preceding the partition.