TY - JOUR
T1 - Linkage Lock-in and Regional Economic Development
T2 - The Case of the Øresund Medi-tech Plastics Industry
AU - Sornn-Friese, Henrik
AU - Simoni Sørensen, Janne
PY - 2005
Y1 - 2005
N2 - This paper examines the role of interfirm linkages in influencing the dynamics of regional economic development. Developing a conceptual framework, we claim that switching costs (real or perceived) can lock firms into existing linkages with the potential effect of impeding regional economic development. A main argument is that in dynamic and competitive environments a class of switching costs, learning opportunity costs, might arise out of the relative importance of learning and innovation. We apply our framework to understand what goes on in the Øresund medi-tech plastics industry, taking as a starting point the lack of cross-border linkage participation in this industry. Through a case study research design we obtain evidence about the characteristics and dynamics of linkage lock-in and switching costs in this particular context and explain that learning opportunity costs prevail and make increased linkage participation across Øresund tardy. Promising future research arising from the present study includes enquiry into dissimilar industries, the possible intermediating role of third parties and the complementarities of the Danish and Swedish areas with a focus on the potential of cross-border regional specialization. All this would potentially add to a more complete picture of the notion of switching costs.
AB - This paper examines the role of interfirm linkages in influencing the dynamics of regional economic development. Developing a conceptual framework, we claim that switching costs (real or perceived) can lock firms into existing linkages with the potential effect of impeding regional economic development. A main argument is that in dynamic and competitive environments a class of switching costs, learning opportunity costs, might arise out of the relative importance of learning and innovation. We apply our framework to understand what goes on in the Øresund medi-tech plastics industry, taking as a starting point the lack of cross-border linkage participation in this industry. Through a case study research design we obtain evidence about the characteristics and dynamics of linkage lock-in and switching costs in this particular context and explain that learning opportunity costs prevail and make increased linkage participation across Øresund tardy. Promising future research arising from the present study includes enquiry into dissimilar industries, the possible intermediating role of third parties and the complementarities of the Danish and Swedish areas with a focus on the potential of cross-border regional specialization. All this would potentially add to a more complete picture of the notion of switching costs.
KW - Plastindustri
KW - Regionaludvikling
KW - Strategisk planlægning
KW - Strategiske alliancer
KW - Regionaløkonomi
KW - Øresund Medi-tech
KW - Plastic industry
U2 - 10.1080/08985620500218695
DO - 10.1080/08985620500218695
M3 - Journal article
SN - 0898-5626
VL - 17
SP - 267
EP - 291
JO - Entrepreneurship & Regional Development
JF - Entrepreneurship & Regional Development
IS - 4
ER -