Journal article

Publication year: 1992

Pages: 195-213

Journal: Geographical Journal

Volume number: 80

Issue number: 4

ISSN: 0016-7479

Publisher: Franz Steiner Verlag

Abstract: 

Current theories and models of industrial location are discussed and divided correspondingly into three categories: traditional-static, dynamic-cyclic and dynamic-evolutionary. According to traditional-static approaches, monetary costs, especially those involved in transportation, are the primary factors which influence a firm's decision to locate to a particular location. The evidence presented indicates that traditional location factors still provide a partial basis for decisions regarding location. It seems, however, that a general shift from a quantitative, cost-oriented perspective to a qualitative, specialization-oriented evaluation of location factors has taken place. Dynamic-cyclic approaches are based upon the assumption that economic development occurs in regular, predictable cycles: (a) The long wave theory, and its postulated change of technologically dominant industries, allows important conclusions to be drawn about systematic spatial changes in industrial organization. (b) Product-cycle approaches assume that systematic changes in spatial requirements result from the ,,normal'' technological aging of products.

In an attempt to rectify the problems encountered in the use of traditional-static and dynamic-cyclic approaches, a transfer towards dynamic-evolutionary and segmented concepts about industrial location is offered as an alternative: (a) In a segmented analysis, factors which influence decisions regarding location must be differentiated in terms of the firm's organization, as well as its corporate and innovation strategies. In addition, a distinction between start-up, location and growth factors must clearly be made. (b) As opposed to traditional-static approaches, the array of industry within a region cannot be solely explained in terms of existing spatial characteristics. According to the dynamic-evolutionary concept, industries create their own regional environments through positive feed-backs, within complex linkage networks. This can result in self-sustaining agglomeration processes.

Harvard Citation style: BATHELT, H. (1992) EXPLANATORY CONCEPTS OF INDUSTRIAL-LOCATION BEHAVIOR - A CRITIQUE AND EMPIRICAL-EVALUATION USING THE EXAMPLE OF KEY TECHNOLOGY INDUSTRIES, Geographical Journal, 80(4), pp. 195-213

APA Citation style: BATHELT, H. (1992). EXPLANATORY CONCEPTS OF INDUSTRIAL-LOCATION BEHAVIOR - A CRITIQUE AND EMPIRICAL-EVALUATION USING THE EXAMPLE OF KEY TECHNOLOGY INDUSTRIES. Geographical Journal. 80(4), 195-213.