By Emanuele Repetti
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Additional info for Dizionario geografico, fisico, storico della Toscana
Theories of location (Section 5) are presented without concern about the ownership and control of firms; foreign ownership issues are covered in Chapter 5. Complex systems and evolutionary economics are the focus of Section 6. Section 7 discusses various locational possibilities in space. e. clusters, cities and regions, are analysed in Section 8. The impact of history and expectations on the location of firms and industries is described in Section 9. Section 10 deals with the effect of war on the locational issues, while Section 11 concludes the chapter.
As certain new and a number of old economic activities became ‘footloose’, highly mobile, fragmentable and internationally connected, one of the most demanding and intricate questions in such a situation is where firms and industries will locate, relocate or stay. The purpose of this chapter is to provide an overview of the theoretical foundations of the field of spatial economics, especially its evolutionary side. It considers factors and conditions that influence decisions on where to locate a business or an industry in an evolutionary space.
Demand (D): its real and potential size, its growth and consumer preferences. • Organisation and technology (O+T): input–output production links; externalities; competition and market structure; location decisions of other competing or supplying firms; technology and the speed of its change; and local research and development (R&D) resources and capabilities. Theory 11 • Policy-related factors (P): incentives; taxes; subsidies; public procurement; rates of exchange,10 permissions; national defence; environmental standards and mandatory or voluntary unionisation of labour.