How Regions Grow by OECD

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Regional differences within OECD countries are often greater than those between countries and much inequality remains. This report explores what generates growth at the regional level. Based on in-depth econometric modelling and analyses, this report reframes the debate on regional policy and development, emphasising that opportunities for growth exist in all regions.

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									                                                           How Regions Grow
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How Regions Grow
   TRENDS AND ANALYSIS
         ORGANISATION FOR ECONOMIC CO-OPERATION
                    AND DEVELOPMENT

     The OECD is a unique forum where the governments of 30 democracies work
together to address the economic, social and environmental challenges of globalisation.
The OECD is also at the forefront of efforts to understand and to help governments
respond to new developments and concerns, such as corporate governance, the
information economy and the challenges of an ageing population. The Organisation
provides a setting where governments can compare policy experiences, seek answers to
common problems, identify good practice and work to co-ordinate domestic and
international policies.
     The OECD member countries are: Australia, Austria, Belgium, Canada, the
Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary, Iceland,
Ireland, Italy, Japan, Korea, Luxembourg, Mexico, the Netherlands, New Zealand,
Norway, Poland, Portugal, the Slovak Republic, Spain, Sweden, Switzerland, Turkey,
the United Kingdom and the United States. The Commission of the European
Communities takes part in the work of the OECD.
    OECD Publishing disseminates widely the results of the Organisation’s statistics
gathering and research on economic, social and environmental issues, as well as the
conventions, guidelines and standards agreed by its members.



               This work is published on the responsibility of the Secretary-General of
            the OECD. The opinions expressed and arguments employed herein do not
            necessarily reflect the official views of the Organisation or of the governments
            of its member countries.




                                   Also available in French under the title:
                        Régions et croissance : Une analyse des tendances




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© OECD 2009

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                                                                                          FOREWORD




                                                 Foreword
        G    lobalisation in the OECD has come to regions more strongly than to nations.
        Technological change and the gradual reduction of the working age population are two
        main challenges influencing the economic performance of many regions. While some
        regions are able to adapt to these challenges and reap the benefits of globalisation,
        others remain stagnant and struggle to compete in the global arena.
             Technological change has led to the rapid growth of service industries and the
        knowledge-based economy, allowing those regions specialised in the production of
        information and knowledge to become more competitive in the global economy.
        Nonetheless a region’s capacity to innovate is not its only source of growth; equally
        important is its ability to create a high-quality population, to retain and attract
        talented people, to be well connected to global markets, to have an adequate business
        environment and infrastructure system and a well-functioning labour market.
              These challenges coincide with an increasing concentration of economic activity.
        People and firms are increasingly concentrating geographically, driven by the benefits
        of economies of agglomeration. But the concentration of economic activity and people
        has both positive (growth spurred by higher productivity levels and innovation) and
        negative outcomes (inequality between regions).
            Under these conditions, we need to understand regional competitiveness better
        and to
								
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