Abstract
There has been a major change, over the last three decades, in the functions, policy mechanisms, and the spatial forms of many urban regions in the highly industrialized countries in North America and Europe. These transformations reflect these cities’ roles as key actors and sites of change in the contemporaneous process of globalization, and the constituent economic, social and spatial restructuring. The term “Entrepreneurial City” pertains to this emerging urban entity.
Lakshmanan and Chatterjee (2003, 2004, 2006; Chatterjee and Lakshmanan 2005a, b) have argued that a variety of change processes have converged in recent years to create a new global environment in which three types of change agents have collaborated to effectuate a major economic and spatial evolution in the form of a global production system and the rise of the entrepreneurial city (Fig. 7.1). Such change processes comprise of three types: (a) multiplicity of knowledge-rich material (transportation, communications and production) technologies and infrastructures which have made economically feasible production systems spanning the globe; (b) the advent of neoliberal ideologies which have spawned many nonmaterial (institutional and organizational) technologies and infrastructure which have dropped institutional barriers to and promoted freer cross-border flows of goods, services, finance and knowledge; and (c) secular economic changes such as the rise of quality competition and demand for variety, and the weakening of earlier macroeconomic management apparatus (e.g., Keynesian). These change processes collectively facilitate a global “space of flows” of goods, services, capital, knowledge and technology, and enable a globally distributed production system. In effect, these three classes of change forces create a new context or stage or arena for action by the economic, political, and social actors of the emerging global system.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
At the supranational level, a variety of entities have arisen to deal with some types of market or extra-market failures in cross-border activities of global network corporations. These are of several types: formally constituted supra-national bodies like the European Union, resource providers (World Bank. IMF), rule or standard setters (World Trade Organization), and a focal point for information assembly, research, exchange of views, etc.
- 2.
We can draw a parallel here between the differences between invention and innovation in the economic domain and the ideas of visionaries and implementation of their ideas in the social domain.
- 3.
When social sector agents make mistakes in judgment about resources available from governmental and nongovernmental sources, overestimate the forces of change, underestimate local urban dynamics and so on, they fail to stimulate change through new institutional development. Institutions die in their nascent stage and their efforts are lost or are adopted and modified by SE at a later time.
- 4.
Downs’ arguments in the Economic Theory of Democracy provide an insightful discussion of this issue.
- 5.
Baumol discussed his concept using illustrations from different societies such as Ancient Rome, China, and the Middle Ages.
References
Acs ZJ, de Groot HLF, Nijkamp P (eds) (2002) The emergence of the knowledge economy. Springer, New York
William Baumol J (1990) Entrepreneurship: productive, unproductive, and destructive. J Polit Econ 98:893–921
Bornstein D (2004) How to change the world: social entrepreneurs and the power of new ideas. Oxford University Press, New York
Chatterjee L, Lakshmanan TR (2005a) The dual bottom line: complementarities between urban social and economic entrepreneurs. Paper presented at the Tinbergen Conference, George Mason University, July 10–11
Chatterjee L, Lakshmanan TR (2005b) Urban social and political entrepreneurship: attributes and complementarities. Paper presented at the Special Workshop at Jönköping International Business School, Jönköping, Sweden, June 16–18
Downs A (1997) Economic theory of democracy. Harper and Row, New York
Habermas J (1984) Reason and rationalization of society. Theory of Communicative Action, vol 1. Beacon, Boston (English translation by Thomas McCarthy)
Hebert RF, Link AN (1982) The entrepreneur: mainstream views and radical critique. Praeger, New York
Jessop B (1997) The entrepreneurial city: reimaging localities, redesigning economic governance, or restucturing capital. In: Jewson N, Macgregor S (eds) Transforming cities. Routledge, London, pp 29–41
Kirzner I (1973) Competition and entrepreneurship. University of Chicago Press, Chicago
Knight F (1921) Risk, uncertainty, and profit. Houghton Mifflin, New York
Lakshmanan TR, Chatterjee L (2003) The entrepreneurial city and the global economy. Paper presented at the International Workshop on Modern Entrepreneurship, Regional Development and Policy, The Tinbergen Institute, Amsterdam, May 23–24
Lakshmanan TR, Chatterjee L (2004) Entrepreneurship and innovation-led regional growth: the case of the entrepreneurial urban place. Paper presented at the 51st North American Regional Science International, Seattle, November 11–13
Lakshmanan TR, Chatterjee L (2006) The entrepreneurial city in the global marketplace. Int J Entrepreneurship Innov Manage 6(3):155–172
Lundwall BA, Johnson B (1994) The learning economy. J Ind Stud 1(2):23–42
Malecki E (1994) Entrepreneurship in regional and local development. Int Reg Sci Rev 16 (1–2):119–154
Schumpeter JA (1928) The instability of capitalism. Econ J 38:361–86
Schumpeter JA (1939) Business cycles. McGraw-Hill, New York
Schumpeter JA (1961) The theory of economic development. Oxford University Press, New York
Schumpeter JA (1984) Capitalism, socialism and democracy. Harper Collins, New York
Stohr W (1989) Local development strategies to meet local crisis. Entrepreneurship Reg Dev 1(3):293–300
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2009 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Chatterjee, L., Lakshmanan, T. (2009). The Fashioning of Dynamic Competitive Advantage of Entrepreneurial Cities: Role of Social and Political Entrepreneurship. In: Karlsson, C., Andersson, A., Cheshire, P., Stough, R. (eds) New Directions in Regional Economic Development. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-01017-0_7
Download citation
DOI: https://doi.org/10.1007/978-3-642-01017-0_7
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-01016-3
Online ISBN: 978-3-642-01017-0
eBook Packages: Business and EconomicsEconomics and Finance (R0)