As first approach to the topic it seems helpful to me to define which factors make a region. In general the literature mentions three ways how regions could be differentiated:
• Definition through enumeration, i.e. with examples
• Definition in the negative through enumeration of “non-regions”
• Definition on basis if constructive criteria
Most common in literature is the last approach, meanwhile the European Union in particular also follows the first possibility for defining the regions within the E.U. As a workable definition of a region the following definition on basis of constructive criteria is suggested:
Regions
A region is a geographical part of a whole economy that could be identified by means of political and administrative institutions. As constructive criteria a region is defined through free trade between certain regions, mobility of production factors, consistent currency, fiscal and macro-economic policy and shared (superior) institutions.
The wider a nations’ area is and the more regions a nation contains, the bigger the chance that the regions have different levels of economic development and economic power. The overall development of an economy is the sum of the development of the individual regions, more exactly the sum of individual economies. From this follows that the economic power of the certain regions must be bettered should the macroeconomic development be improved. This cognition lead to the development of a special field of public policy: regional (economic) policies. Regional policy should achieve two major goals:
• maximise economic growth and
• minimise social costs
As I would show in the next chapter, regional (economic) policy includes a number of instruments. From this the definition of regional policy is as follows:
Regional policy
Regional policy is the sum of law, strategies and measures for setting and influencing a framework and processes in particular areas of a nation through the government. With special regional policy government seeks to reduce spatial disparities in economic.
Table of Contents
I. REGIONS, REGIONAL POLICY AND ITS OBJECTIVES
II. REGIONAL POLICY INSTRUMENTS
1. Traditional approach to regional policy
a Regional economic policy within the nationwide economic policy
b Economic targets of regional policy
c Levels for regional policy
d Regional planning
e Public infrastructure
f Institutional regulation
g Fiscal system
2. Newer approach to regional policy
a Enterprise culture
b Industrial districts
c Innovative Milieu
III. CASE STUDY: REGIONAL POLICY IN THE AREA OF BURGENLAND
a General statement
b A chance for future development: Investing in knowledge base
IV. CONCLUSION
Research Objectives and Key Topics
This essay aims to evaluate the effectiveness and limitations of various regional policy instruments in fostering economic growth. It focuses on the transition from traditional, interventionist approaches to newer models that emphasize innovation, networking, and soft factors, using the federal state of Burgenland, Austria, as a primary case study to illustrate these concepts in practice.
- Theoretical foundations of regional policy and its primary economic objectives.
- Comparative analysis of traditional versus modern regional development strategies.
- The role of "soft factors" such as enterprise culture, industrial districts, and innovative milieus.
- An empirical case study of regional policy implementation in Burgenland, Austria.
- Evaluation of the impact of European Union structural funding and R&D investment on regional economic convergence.
Excerpt from the Book
a General statement
The largest part of the region along the eastern border of Austria belongs to the federal state of Burgenland. After World War II Burgenland was re-established with Soviet support. However, as Austria had to surrender parts that have belonged to the Austrian-Hungarian double monarchy to the new established Hungarian nation, some important centres (Sopron for instance) of former Burgenland did not longer belong to Austria. The location close to the Iron Curtain weakened essential the economical development of Burgenland. Until the opening of the former closed border to the eastern neighbour nations, Burgenland mostly was known only as a producer of vines. Most employees had to apply for jobs in Austria’s capital, Vienna.
Since the political change in Europe, Burgenland is supported with several instruments of regional policy to force the economical development of Austria’s easternmost state. In the following I would like to give an idea about the effect of regional policy and its success in the case of this region. First I would like to illustrate the development in economic power in Burgenland with some statistic data:
Summary of Chapters
I. REGIONS, REGIONAL POLICY AND ITS OBJECTIVES: This chapter defines the theoretical concept of a region and establishes the fundamental goals of regional policy, specifically maximizing economic growth while minimizing social costs.
II. REGIONAL POLICY INSTRUMENTS: This section provides an extensive overview of policy tools, contrasting traditional methods like fiscal regulation and public infrastructure with modern approaches focusing on enterprise culture, industrial districts, and innovative networks.
III. CASE STUDY: REGIONAL POLICY IN THE AREA OF BURGENLAND: This chapter applies the previously discussed theoretical frameworks to the Austrian state of Burgenland, analyzing the impact of EU-supported structural programs and the importance of investing in a regional knowledge base.
IV. CONCLUSION: The final chapter summarizes the findings, noting that while infrastructure investments have successfully bridged part of the economic gap, sustainable future growth requires a more robust focus on innovation and cluster development.
Keywords
Regional Policy, Economic Development, Burgenland, Structural Funds, Innovation, Knowledge Spillover, Enterprise Culture, Industrial Districts, Infrastructure, Public Policy, Regional Planning, Competitiveness, European Union, Clusters, Economic Growth.
Frequently Asked Questions
What is the primary focus of this academic essay?
The essay examines the tools and strategies used in regional policy to improve economic conditions in less developed regions, evaluating both traditional top-down methods and modern, innovation-oriented approaches.
Which theoretical models of regional development are compared?
The author distinguishes between the "traditional approach"—characterized by state intervention, fiscal regulation, and infrastructure focus—and the "newer approach," which prioritizes soft factors like networks, innovation, and enterprise culture.
What is the central research question?
The research asks how effective various regional policy instruments are in stimulating economic convergence, specifically evaluating whether infrastructure investment or knowledge-based development strategies provide better long-term results.
Which scientific methods are employed?
The study utilizes a qualitative literature review of regional economic theories combined with a concrete case study analysis, incorporating empirical statistical data regarding GDP growth and border crossing frequency in Burgenland.
What does the main body cover?
The main body systematically classifies regional policy instruments into traditional categories (planning, infrastructure, institutional/fiscal regulation) and modern categories (enterprise culture, industrial districts, innovative milieus) before testing these against the Burgenland case study.
How are the key findings characterized?
The work is characterized by the tension between initial successes in infrastructure-led growth and the necessity for a more integrated, innovation-driven cluster strategy to ensure sustainable economic prosperity.
Why is Burgenland chosen as the case study?
Burgenland serves as an ideal case study because of its historical economic isolation due to the Iron Curtain and its subsequent transformation through European Union Objective 1 structural funding programs.
What conclusion does the author reach regarding R&D investment?
The author concludes that while R&D and academic institutions are essential, policy makers must ensure that these investments reach "critical mass" and are integrated into a wider economic development plan to avoid wasting limited fiscal resources.
- Quote paper
- Dipl.-Betriebswirt (FH) Christian Nicke (Author), 2007, Tools for regional policy with case study:, Munich, GRIN Verlag, https://www.grin.com/document/80396
