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Hidden Innovation: A Reconsideration of ‘Old Economy’ Industries within ‘New Economy’ Regions
Author(s) -
Chiang Lifang
Publication year - 2008
Publication title -
geography compass
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.587
H-Index - 65
ISSN - 1749-8198
DOI - 10.1111/j.1749-8198.2007.00071.x
Subject(s) - offshoring , protectionism , tertiary sector of the economy , spillover effect , service economy , globalization , business , knowledge economy , productivity , manufacturing , service (business) , economy , production (economics) , information economy , industrial organization , economics , market economy , international trade , economic growth , outsourcing , marketing , macroeconomics , microeconomics
This article will explore the role of ‘old economy’ manufacturing sectors in ‘new economy’ technology regions of advanced industrial economies. In the early 21st century, attention has increasingly shifted away from protectionist concerns about loss of manufacturing industries in regional and national economies. Attention has instead focused on globalization and the offshoring of a wide array of service and technology‐oriented industries and jobs. Yet, what is missing in this paradigm shift is an examination of the critical role that manufacturing sectors play in these ‘new economy’ regions, by spurring innovation spillover and generating economic and employment multiplier effects. This article will review the literature pertaining to linkages between advanced technology regions and more traditional, blue‐collar industrial production industries. In conclusion, the article calls for broadening the current focus on job loss in the highly skilled service and technology sectors to an integrated vision of production, knowledge and service sector activity.