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‘THE LEARNING ECONOMY, THE LEARNING FIRM AND THE

LEARNING REGION’:
A SYMPATHETIC CRITIQUE OF THE LIMITS TO LEARNING

Ray Hudson
University of Durham, UK

Abstract
The recent growing interest in ‘learning’ and ‘knowl- phasis that they place upon knowledge and learning
edge’ as a – maybe the (only) – route to corporate and other literatures that analyse ongoing changes in
and regional economic success is one facet of the en- the organization of production and work in contem-
gagement between economic geographers and porary capitalism and which have different
regional analysts on the one hand and evolutionary emphases. The aim is to situate and contextualize
and institutional economists on the other. This focus claims about the significance of ‘learning’. These
on knowledge is often presented as a dramatic claims are then placed within the context of conti-
breakthrough, promising radical theoretical reap- nuities and changes within capitalism, and the ways in
praisal and opening up exciting new possibilities for which these have been understood, as a further step
the conception, implementation and practise of pol- in this process of contextualization and situation.
icy. Recognizing the importance of innovation and Finally, some conclusions are briefly drawn around
knowledge creation to economic success is hardly the limits to learning, and questions of learning by
novel, however. The paper first summarizes the whom, and for what purpose, in the context of the
claims made by the proponents of ‘learning’, and politics and policies of social, economic and terri-
some links are drawn between the pre-eminent em- torial development.

Introduction depends upon the knowledge and skills of individual


The context of, and focus of concern in, this article workers and on the collective knowledge of a range
is the recent growing interest in – one might almost of social and technical conditions and processes that
say obsession with – ‘learning’ and ‘knowledge’ as a make production possible. This also directs
– maybe the (only) – route to corporate and regional attention to the institutional bases of knowledge
economic success. This is one facet of the growing, production and dissemination, recognizing that
and generally productive, engagement between these are social processes and ‘instituted processes’
economic geographers and regional analysts on the of a Polyanian type. Competitiveness and economic
one hand and evolutionary and institutional success is thus seen to be grounded in a variety of
economists on the other (for example, see Maskell et types of knowledge and knowing.
al., 1998; Storper, 1997). This focus on knowledge, The argument in the article, however, is that
and the processes through which it is transmitted, is recognizing the importance of innovation and
often presented as a dramatic new breakthrough, of knowledge creation to economic success is hardly
epochal significance, promising radical theoretical novel and that the contemporary focus on learning is
reappraisal and opening up exciting new possibilities in many ways simply a new twist on an old theme
for the conception, implementation and practice of that ‘knowledge is power’. This is an important
policy (for example see Braczyk et al., 1998). It insight. It is also a partial one – not least because of
would of course be futile to deny the significance of the relationship between the possession of power
knowledge, innovation and learning to economic and the capacity to shape the production and/or
performance. Production as a process that appropriation of knowledge. Not all economies are
simultaneously involves materials transformation, capitalist but the historical geography of capitalism
human labour and value creation, necessarily cannot be sensibly understood without giving due

European Urban and Regional Studies 0969-7764 (199001)6:1 Copyright © 1999


SAGE Publications, London, Thousand Oaks and New Delhi, Vol. 6 (1): 59–72;006601
60 EUROPEAN URBAN AND REGIONAL STUDIES 6(1)

recognition to the revolutionary impacts of some links are drawn between the preeminent
innovation on the what, how and where of emphasis that they place upon knowledge and
production. It would be a foolish enterprise to seek learning and other literatures that analyse ongoing
to deny the importance of learning and knowledge changes in the organization of production and work
creation, and the institutional settings and forms in in contemporary capitalism and which have
and through which these processes occur, to differing emphases. The aim is to situate and
innovation and to the dynamic of uneven contextualize claims about the significance of
development in capitalist economies. Indeed, one ‘learning’. Second, these claims are placed within
cannot overemphasize that the creation of the context of continuities and changes within
knowledge has been integral to the competitive capitalism, and the ways in which these have been
dynamic of capitalist economies since they were first understood, as a further step in this process of
constituted as capitalist. As Marx stressed well over contextualization and situation. Finally, some
a century ago and Schumpeter later restated, much conclusions are briefly drawn around the limits to
of the revolutionary dynamic of capitalism has learning, and questions of learning by whom, for
always rested in its capacity to create new what purpose, in the context of the politics and
commodities and new ways of producing them via a policies of social, economic and territorial
sequence of radical transformations of the forces of development.
production and of the organization of the labour
process (for example, see Aglietta, 1979). So what,
one might reasonably ask, is new? What, one might The learning economy: learning firms and
inquire, is all the fuss about? learning regions
The first point that can be made in response to
these questions is that the current ‘rediscovery’ of There has been a growing recognition of the
the importance of knowledge and the processes importance of knowledge in the contemporary
through which it is produced brings with it a organization of production in what many
baggage of strong claims about new and enriching commentators see as an era of globalization (for
and empowering forms of work (for example, see example, see Giddens, 1990; Strange, 1988). This
Florida, 1995). The alienated and deskilled mass takes a variety of forms but the central point is that
worker is apparently now no more than a subject of the production, distribution and exchange of
history. The emphasis on knowledge is also knowledge is claimed to have attained an
associated with claims about the possibilities for unprecedented significance in the operations of the
increasingly egalitarian, more equal and progressive economy. Much of the discussion about the
forms of economic and social development. It significance of knowledge takes place under the
likewise brings related claims as to new possibilities rubric, and around the theme, of ‘learning’. There
for urban and regional regeneration strategies, and are, however, several strands to the learning
suggestions of new developmental trajectories for literature, which highlight different aspects of, and
problematic cities and regions (for example, see ways of, learning: learning-by-doing (Arrow, 1962);
Morgan, 1995; Simmie, 1997). There is no doubt learning-by-using (Rosenberg, 1982); learning-by-
that in particular cases, times and places, such interacting (Lundvall, 1992); and learning-by-
claims have a certain validity but they also require searching (Boulding, 1985; Johnson, 1992). Perhaps
careful and critical scrutiny. Such a scrutiny must the most influential of these within recent debates
acknowledge the necessary structural limits to a has been Lundvall’s emphasis on learning-by-
capitalist economy and the disciplines (if not quite interacting, informed by a concern to understand
iron laws) that these set on what is both necessary how (predominantly small) companies in open
and possible (as opposed to what may be desirable economies can remain competitive in an
but impossible – to adopt a memorable phrase from environment of rapid technological change and
Offe, 1975). uncertainty. It essentially focuses upon companies
The structure of the remainder of the article is as learning about and adapting to ‘best practice’ via
follows. First, the claims made by the proponents of interaction with other firms and institutions as the
‘learning’ approaches are briefly summarized, and route to competitiveness.

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Lundvall (1995) has recently remarked that the partially commodifiable. It therefore can only be
term ‘learning economy’ signifies a society in which purchased, if at all, via the labour market as
the capability to learn is critical to economic success. embodied knowledge and not in the form of patents,
For Lundvall, contemporary capitalism has reached turn-key plant or other forms of ‘hard’ technology.
the stage at which knowledge is the most strategic Recognition of the uncodifiable aspects of
resource and learning the most important process. learning and knowledge creation2 is important since
There is a recognition that this process is to a it signifies that these processes are qualitatively
considerable degree path dependent, although different from the simple transfer of codifiable
significant breakthroughs often involve shifting onto knowledge as information. As a consequence,
new, rather than further along existing, paths. The learning involves more that simply transactions of
learning process could thus involve the capability to information within markets or hierarchies. Lundvall
move from already successful to potentially even (1992) has highlighted the national context of
more successful new ‘state-of-the-art’ development innovation systems and learning and the significance
trajectories, or to learn how to sustain currently of shared language and culture as well as formal
successful trajectories of development, or how to legislative frameworks in shaping trajectories of
shift onto more from less successful paths. Learning innovation and learning. This emphasis on the
both presupposes and produces knowledge (although national as a key site of regulatory processes
the learning literature tends to gloss over the resonates with broader critiques of claims as to the
different forms and processes of knowledge decreasing significance of the national in the face of
production: Odgaard and Hudson, 1998) but processes of globalization. The notion of
knowledge is not an undifferentiated entity and it ‘globalization’ has become increasingly contested
exists in a variety of forms. There is, in particular, a and questioned, with a growing number of analysts
critical qualitative difference between information, stressing the continuing salience of the national in
which is codifiable (and so commodifiable and terms of the organization and regulation of the
tradable) knowledge that can be transmitted economy (for example, see Boyer and Drache, 1995;
mechanically or electronically to others (for example, Gertler, 1997; Weiss, 1997).
as bits along the fibre optic cables of a computer While recognizing that the national territory can
network), and in principle can become ubiquitously and continues to be a crucial milieu in some
available; and tacit knowledge in the form of know- circumstances, it is also becoming increasingly clear
how, skills and competencies that can not be so that there is no a priori reason to privilege this
codified and ubiquified. Foray (1993: 87) defines particular spatial scale, irrespective of time and
tacit knowledge as ‘. . . knowledge which is place. Nevertheless, the renewed emphasis on the
inseparable from the collective work practices from salience of the national has implications not just for
which it comes’. He goes on to emphasize that ‘. . . the proponents of globalization but also for those
some tacit knowledge is always required in order to who wish to privilege the regional over the national
use new codified knowledge’. Foray thus stresses the in terms of the production of knowledge and
asymmetric relationship between these qualitatively learning (for example, see Storper, 1995, 1997).
different types of knowledge. Acknowledging that Regional and locality-based learning and
knowledge is ‘tacit’ problematizes its communication knowledge-production systems can, however, be of
and transmission to others who lack access to the equal or greater significance (Maskell, 1998; Maskell
unwritten codes of meaning in which such and Malmberg, 1995), not least in the context of
knowledge is embedded and upon which its meaning arguments that innovation systems are constituted
depends.1 Such tacit knowledge may indeed be sectorally – and, at least potentially, globally – rather
unique to particular individuals rather than than nationally (Metcalfe, 1996). The sectoral
collective in character – in which case the problems constitution of innovation systems globally across
of communication are, a fortiori, problematic – but it rather than within national boundaries emphasizes
is often collective rather than simply individual, the significance of the place-specifically local within
locally produced and often place specific. Know-how the global and of the links between corporate
thus cannot be divorced from its individual, social learning and territorially embedded knowledge (a
and territorial contexts and in that sense is only point revisited below). Such tacit knowledge and

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learning capacity is seen as the key competitive consequence of the existence of an actively
corporate and territorial asset. While the debates as committed and engaged workforce within particular
to the relative importance of sectoral versus types of corporate organization, dedicated to
territorial bases of learning, and of the relative enhancing corporate performance. The emphasis is
importance of different territorial scales in processes upon creating dense horizontal flows of knowledge
of learning and innovation, do not challenge the and information within, and vertical flows of
importance of knowledge per se to the contemporary knowledge and information between, the various
economy, there are other reasons for treating such functional divisions of the company, while opening
claims which foreground the role of knowledge and the ears of those involved within the company to
learning with a degree of circumspection. voices from outside its boundaries. The aim is to
A corollary of the renewed emphasis on the build a ‘seamless innovation process’, bringing
generalized significance of knowledge in production together everyone in the firm involved in product
is a recognition of the need to move away from a development, from those who had the initial idea to
conception of the old ‘linear’ R&D model as those who finally took it to the market-place.
dominating the production of knowledge, associated Creation of multidisciplinary and cross-
in particular with a Taylorist conception of the departmental ‘concept teams’ with responsibility for
technical division of labour. This approach was product development is seen as a way of sharply
informed by a perceived need for the separation of reducing the socially necessary labour time taken to
mental and manual labour as the key to achieving bring new products onto the market. Increasingly
scale economies and labour productivity growth these are organized as ‘globally distributed teams’
within mass production systems. Such separate R&D which ‘meet’ via video-conferencing and other
departments and the associated routinization of R&D forms of electronic technology. This reliance on
activities formed one element in an historically such distanciated social relationships of intellectual
specific form of the organization of the labour process production, rather than face-to-face meetings,
within large firms. Such an organizational model has reflects increasing pressures on managerial time and
now been recognized as an historically specific one, resources but can also create problems as these
which in some circumstances remains appropriate teams seek to work to very tight deadlines (Miller et
and powerful but in others can incorporate crucial al., 1996). While these globally distributed teams are
weaknesses, especially in an era of rapid shifts in not quite ‘virtual organizations’ or ‘virtual
product markets, for there are no necessary feedback corporations’ (Pine, 1993), they do represent a
loops from the users of and customers for innovations significant change in the organization of the
to those within the firm charged with responsibility processes of knowledge creation and innovation
for producing them. Consequently, new products within companies.
may not be attuned to consumer tastes and fail in the Complexity theory strongly suggests the need to
market-place while, conversely, opportunities for adapt a view of social systems as evolving in a non-
new products may be missed. Furthermore, the linear fashion (Amin and Hausner, 1997). One
growing significance of the symbolic meanings implication of this in the context of innovations is
attached to consumption, a fortiori in circumstances that revolutionary innovations (both organizational,
in which the commodity is an event or spectacle product and process) may be produced in
rather than a material object, places an even greater unexpected ways. The emphasis now is therefore
premium on knowledge of consumer tastes and on upon recognizing that innovation is an interactive
the ability to shape them via advertising. process that involves the synthesis of different types
Knowledge creation and innovation is accordingly of knowledge rather than privileging the formal
seen as something that must become all pervasive scientific knowledge of the R&D laboratory over
throughout the firm, at all levels and in all other forms of knowledge. As a consequence, there
departments and sections. The ideal is to emulate is considerable emphasis on acknowledging the
the (originally Japanese) process of ‘kaizen’, legitimacy and ‘voice’ of different types of
continuous improvement through interactive knowledge (not least as radical innovations may well
learning and problem solving (Sadler, 1997), a challenge the dominant ‘logic’ within an industry),
happy state which it is claimed is brought about as a on reuniting the mental and the manual which were

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torn asunder by Taylorism, on reinventing Know-how historically was, and in large measure
polyvalent multiskilled workers, and so enhancing still is, typically a kind of knowledge developed
corporate competitiveness by producing higher within, and then kept within the confines of, a firm.
quality products more flexibly. Furthermore, the boundaries of the firm still remain
Such tendencies are observable in both small significant for knowledge that is central to the core
flexibly specialized firms and units and in new forms competencies and strategic goals of a company.
of high-volume production that seek to combine Nevertheless the increasing complexity of the
economies of scale and scope, ultimately in mass knowledge-base upon which the totality of the
customized production with a batch size of one production process depends is increasing the social
(Hudson, 1994a, 1997a, 1997b). Intensifying division of labour in knowledge production and
competition and shorter product life cycles (which resulting in growing numbers of collaborative long-
may be part of an aggressive, offensive competitive term relationships between firms (for example, see
strategy rather than simply a response to changes in Kitson and Michie, 1998). A variety of processes,
consumer tastes) are necessitating a closer ranging from the growth of out-sourcing and
integration of R&D with the other functional contracting-out to the increasing prevalence of joint
sections within companies, with far-reaching ventures and strategic alliances between even the
implications for the internal organization and largest global corporations, is indicative of a rather
operation of those companies. This growing different model of shared corporate learning. As a
emphasis on the significance of learning and result, know-who is becoming of growing
knowledge creation, and new forms of production importance in the production of know-how
organization, links in with propositions about the (Lundvall and Johnson, 1994). This growing
emergence of new forms of more rewarding, emphasis on knowledge and learning therefore also
satisfying and engaging work than was available to links in with claims as to new forms of relations
the vast numbers of workers who manned the mass between companies, based on cooperation, trust, and
production lines of factories and offices, alienated in the sharing of knowledge for mutual benefit. These
deskilled and dehumanizing jobs. It is, however, forms of interactive interfirm relations for
worth recalling that even at the high point of knowledge creation are particularly associated with
Fordism only a minority of labour processes were the supply chains of major Japanese manufacturers
organized on Taylorist principles and that a (which is not to imply that they are in some sense
considerable amount of manual work was performed culturally defined and confined to Japan and
by knowledgeable craft workers (Pollert, 1988). Japanese companies). Considerable emphasis is
Innovation and learning have nonetheless become placed upon new forms of network relations, both
seen as creative processes that must be suffused ‘horizontal’ relationships between small and
throughout the entire workforce, capturing the medium-sized enterprises (SMEs) and ‘quasi-
knowledge of all workers to increase productivity vertical’ relationships between big firms and their
and product quality and at the same time enhancing suppliers and/or customers, which stress the
the quality of work. In essence, this amounts to the sharing of R&D, of knowledge and the products of
reinvention of polyvalent skilled craft workers, a learning to the benefit of all partner companies in
return to a pre-Taylorist era prior to the invention the network. For example, institutional innovations
of scientific management. Florida (1995) writes such as placing resident engineers in customers’
approvingly of the emergence of a new form of factories allows efficient channels for intercorporate
production organization in a knowledge-based learning within networks of interfirm relationships.
economy, in factories that are claimed to be Some of these networks are based upon spatial
becoming more like laboratories, with knowledge propinquity, others are not. A useful distinction can
workers, advanced high-technology equipment and be drawn between spatial propinquity and
clean-room conditions free of dirt and grime. This organizational proximities (Bellet et al., 1993). The
does indeed powerfully suggest that the old former may (but does not necessarily) facilitate the
distinctions between manual and mental workers are latter by increasing the probabilities of encounter
being cast aside, that every worker is now becoming between agents within a system but is not necessary
an innovative knowledge worker. for interaction between individuals or groups.

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Organizational proximity does not necessarily intercorporate collaborative links but also links
require spatial adjacency or proximity but does between companies, the (local) state and
presuppose the existence of shared knowledge and institutions in civil society, emphasizing the
representations of the environment and world permeability of the boundaries between economy,
within which the firm exists, although the various state and civil society in the creation of regional
units and sections of the firm may be in spatially competitive advantage.
discrete and distant locations. Such a form of This notion of a cohesive society, with permeable
proximity also enables the synthesis of varied forms boundaries between economy, civil society and state,
of information and knowledge via cooperative and is powerfully captured in the concept of the
collective learning processes between firms within ‘negotiated economy’, originally developed in
the institutions of an industry. Organizational relation to analyses of the specificities of the Danish
proximity is therefore a necessary condition for case (Amin and Thomas, 1996) but of a more
creating innovations and resources through general provenance. Within the negotiated
processes of collective learning and is simultaneously economy, the state fulfils a distinctive role as
a product of these processes. However, the networks arbitrator and facilitator of relations between
through which learning is enabled and expressed are autonomous organizations, as well as continuing
not necessarily territorially defined and demarcated with its more traditional roles of providing
and in some respects the growing sophistication of specialized services and defining the legislative
IT and communications technologies has weakened framework of rules and regulations. This is a model
this link further. The emergence of ‘global of state activity which highlights enablement and
distributed teams’ in innovation and product which falls between the concepts of the ‘liberal’ and
development is indicative of this weakened link ‘interventionist’ states (Offe, 1975). The concept of
(Miller et al., 1996). Conversely, the technological the negotiated economy can thus be linked with that
facilitation of information flows has simultaneously of ‘the learning state’ and a mode of regulation
enhanced the significance of place-specific tacit positioned between market and hierarchy through
knowledge within key nodes of command and which an enabling state seeks to create the
control and representation in a global economy conditions for a dialogic approach to conflict
(Amin and Thrift, 1994). resolution and policy formation in general and
Some networks are without doubt deeply innovation, knowledge creation and learning in
spatially embedded and recognition of this provides particular. This approach rests on discursive, moral
a bridge into more general notions of the and political imperatives rather than formal
significance of territorially based knowledge to contracts and legal sanctions in achieving consensus
economic competitiveness and success. The and taking decisions. It thus places the emphasis on
concept of the learning firm as an institution for shared values, meanings and understandings,
the production of knowledge is thereby transposed specifically territorially embedded, and tacit
into the notion of the learning region (Morgan, knowledge and the institutional structures through
1995; for related concepts see Camagni, 1991). This which it is produced. These emphases are caught in
perspective stresses that regional economic success notions such as those of ‘institutional thickness’
is heavily based upon territorially defined assets (Amin and Thrift, 1994), ‘social capital
derived from ‘unique’, often tacit, knowledge and . . . [those] features of social organization, such as
cognitive assets, and stresses the importance of networks, norms and trust, that facilitate co-
spatial proximity in collective learning processes. ordination and co-operation for mutual benefit’,
Considerable emphasis is placed upon the pivotal (Putnam, 1993) or, perhaps most powerfully, as
role of regional institutional structures which allow ‘regions as a nexus of untraded interdependencies’
regions (and firms within them) to adjust to, indeed (Storper, 1995). As Storper (1995: 210) puts it, ‘. . .
anticipate and shape, changing market demands. the region is a key, necessary element in the “supply
Innovation and knowledge creation are seen as architecture” for learning and innovation’ (emphasis
interactive processes which are shaped by a varied added) while the emphasis on ‘untraded
repertoire of institutional routines and social dependencies’ or ‘relational assets’ focuses attention
conventions. This involves not simply upon the necessary territoriality of critical elements

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of non-market relations and tacit knowledge. This Old wine in new bottles: or another trip
signals a decisive shift in focus from firm to territory around the mulberry bush?
as the key economic actor in the knowledge-based
competitive struggle, to a collective and The learning firm is, however, hardly a novel
territorialized definition of competitive advantage concept in the sense that knowledge has always been
which emphasizes the cultural and social crucial to capitalist development. There are, though,
underpinning of economic success. In so far as this limitations in the way in which learning approaches
represents a growing recognition of the limits of deal with the production of knowledge. Their
narrow neo-classical and technicist views of the emphasis is upon learning as a way of catching up
economy based on analogies with the behaviour of with ‘best practice’ in a selection environment, and
physical systems (Barnes, 1996), then this in itself is adapting to significant innovations in organization,
a very important step forward – the rediscovery and process or product. The issue of how radically new
re-emphasis of the economy as a social process. knowledge is produced, and redefines ‘best practice’
Equally, it is important to be aware of the limits to as radical innovations are created, is left largely
such an approach and emphasis. unexplored (Odgaard and Hudson, 1998).
Rather than privilege territorial over corporate Moreover, the emphasis on the transmission of
knowledge production and learning (or vice versa), knowledge per se in a ‘learning economy’ may well
the critical point is to explore the relationships lead to an underestimation of the significance of
between these two institutional bases of learning. other forms of learning that are more ubiquitous and
Camagni (1991: 127) emphasizes that firms seek to central to capitalist competitiveness. Capitalist
combine codified information and tacit knowledge corporate success in production has always
into ‘firm-specific knowledge’. More specifically, depended on ensuring one or both of two things,
insofar as globalized forms of corporate organization either finding ways of making existing commodities
are emerging, they are predicated upon the more profitably and/or finding or inventing new
integration of fragmented products of local learning commodities to produce sufficiently profitably.
to further corporate interests. This may well involve Companies have evolved a variety of strategies to
disembedding them from the contexts in which they reduce the costs of production of existing
were initially produced, and perhaps therefore commodities, involving a variety of ‘spatial fixes’
finding ways of converting tacit knowledge into (Harvey, 1982) to enable the costs of producing with
codifiable information. Alternatively, in situations in existing technologies to be reduced and for them to
which knowledge is so organizationally and remain competitive. Such strategies typically
technically specific to a firm and so deeply embedded involve a search for and learning about locations
that it cannot be alienated from its origins, it may offering lower unit costs of labour or other material
simply involve big firms acquiring smaller ones as a inputs to the production process. Storper and
way of gaining access to such knowledge (a familiar Walker (1989) contrast this approach based on ‘weak
story within the historical geography of mergers and competition’ with a Schumpeterian one based on
acquisitions: see Athreye, 1998). Global corporations ‘strong competition’, a strategy based on the
are, it is suggested, developing organizational forms creation of new commodities and products and/or
focused upon ensuring the repatriation of the varied new ways of producing existing commodities rather
results of different localized learning experiences than on seeking ways of making existing
and their integration within a collective body of commodities competitively by searching out sources
knowledge to serve strategic corporate interests of lower cost inputs within the parameters of
(Amin and Cohendet, 1997). The implication is that existing process technologies. Strategies of strong
the processes of seeking to secure access to locally competition are thus also based upon innovation,
produced knowledges are also processes of learning and the creation of knowledge but of a very
intercorporate competition. The issue is therefore different sort to those which underpin strategies of
one of the relationships between knowledge weak competition.
production and acquisition and competition and These differing ‘weak’ and ‘strong’ competitive
cooperation between various territorial and strategies and their grounding in different types of
corporate interests. knowledge and learning are reflected in the

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extensive literature on spatial variations in the labour process from skilled craft workers and
conditions of supply and markets for various inputs insofar as the economy remains a capitalist one,
to production processes, and in the equally extensive there remain pressing reasons why capital should
literature on process and product innovations, want to retain such control in many types of
respectively. Both types of innovation are based contemporary production; indeed, there are now
upon knowledge generated at the corporate level, frequent references to the growing Taylorization of
though typically knowledge of new processes and office work and a range of ‘white-collar’ occupations
products soon diffuses through a particular branch (for example, see Beynon, 1995) at the same time as
of production (albeit with its trajectory of diffusion others enthuse about the reinvention of the
legally regulated by patent – assuming of course that multiskilled manufacturing worker.
such regulations are enforceable). This tendency It is difficult to imagine, therefore, that capital
towards the erosion of a temporarily conferred would willingly wish to return control of the
competitive advantage by the diffusion of knowledge production process to workers that it potentially
as information and of technological innovation could not control. The search for alternatives to
underlies the continuous ‘hunt for technological mass production reflects capital’s need to break the
(and other) rents’ (as Mandel, 1975, graphically and capacity of the mass worker collectively and
memorably expressed it). This diffusion of spontaneously to challenge its quest for profits –
knowledge in turn provides the impetus for capital’s although unintentionally, this may in turn create
continuous search to revolutionize the how, what potential new opportunities and points of leverage
and where of production. One has only to look at the for organized labour since the contradictory
economic history of the ‘successful’ regions of the character of the class relations between capital and
19th century in which industrial capitalism was first labour can be refashioned but not abolished in an
born and then consolidated to recognize the key role economy that remains capitalist. While the
of product and process innovation from the very probabilities of strikes and other forms of disruption
beginnings of the process.3 to the production process are certainly much lower
There are also strong grounds for critically now than in the decades of ‘full employment’ in the
evaluating the claims that this renewed emphasis on 1950s and 1960s in the territories of the major
knowledge is associated with the empowering of advanced capitalist states (for reasons which are
workers in satisfyingly enriched – as a result of discussed below), it is clear that any form of
reducing, if not eliminating, the alienation of disruption to production organized on lean, just-in-
workers from their work – and multiskilled jobs (see time principles can quickly spread along the entire
Blyton and Turnbull, 1992). It is worth recalling in supply chain, bringing production to a precipitate
this context that the rationale of Taylorism was to halt (Hudson, 1997a). Given the disciplining
break the power of the multiskilled craft worker to context of more or less permanent high
challenge the imperatives of capital and disrupt the unemployment, this recent and ongoing reworking
smooth flow of the production process. Taylorist of work can more plausibly be seen as representing a
scientific management therefore sought to new way of ensuring managerial control and
disembody knowledge and know-how and to break intensifying the labour process, of reproducing in
up the production process into a myriad of separate enhanced form the asymmetries of power between
and deskilled tasks whose pace was controlled by the capital and labour. Managerial strategies and
speed of the line rather than the inclination of the regimes of labour regulation remain focused on
individual worker. The emergence of separate R&D seeking to ensure the continuity of production and
departments and a linear model of learning and the compliance of workers.
innovation within the firm that separated manual Rather than empowerment in new forms of
from mental labour and privileged the latter over the satisfying work built around notions of reskilling
former, and privileged codifiable formal scientific and team working, the new forms of work are based
knowledge over the practical and often tacit upon multitasking and new ways of intensifying the
knowledge of the skilled manual worker, was equally labour process. Workers are enmeshed within
an integral part of this process. Taylorism was disempowering regimes of subordination,
invented precisely as a way of wresting control of characterized by control, exploitation, and

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surveillance, accepting arrangements through which many major companies. In this sense one can
they discipline themselves and their fellow workers, reasonably refer to a shift from vertical integration
while bound together through the rhetoric of team within companies to quasi-vertical disintegration,
working (see Garrahan and Stewart, 1992). As a involving a redefinition of the boundary of the firm
result, these may actually be worse jobs than those and a redefinition of the criteria on which to make
on offer on the old mass production lines, increasing the ‘make or buy’ decision. But to argue that these
stress (see Okamura and Kawahito, 1990) and new relations are between equal partners is to ignore
changing the mode of regulation of the labour the sharp asymmetries in power between companies,
process. No longer is it ‘us’ versus ‘them’; ‘them’ are and the extent to which such networks involve not
now part of ‘us’. Considerable ambiguities and cooperation based on trust but often not too subtle
uncertainties follow from this change of identities, coercion if companies wish to keep their customers
not least in relation to forms of organization and or suppliers. There is no doubt that the systems of
representation of workers’ interests. relations between automobile or computer
A further point needs to be made concerning the companies and their suppliers or between major
number of such jobs and the criteria on which retailing chains and their suppliers definitely are not
people are selected to fill them. For even when the relations between equals (Hudson, 1994a; 1997a).
claims that these are better quality jobs are shown to Indeed, there is no a priori reason why one should
be true, there is still a savage sting in the tail for expect relationships between firms in a capitalist
labour. The capacity of firms to create these new economy to be between equals; in fact, one should
regimes of work depends upon their ability to expect quite the reverse. In assessing the claims as to
exercise great selectivity in whom they choose to networks of equal partners, it is also important to
employ and the terms and conditions on which they remember that one of the features of the last couple
employ them, often in no-union or one-union of decades has been wave after wave of mergers and
factories, especially in countries or regions in which acquisitions as the centralization of capital has
neo-liberal regulatory regimes have become reached renewed heights after a couple of decades in
dominant. Employees are selected more on the basis which merger and acquisition activity was very
of their attitudes, psychological profile, age and subdued; and it is these massive transnational
physical condition, and personal and family corporations, the ‘movers and shakers’ who
circumstances than on their technical skills. For dominate the global economy, that are frequently at
example, in many service sector occupations, the centre of decisive network relationships.
personal appearance and social skills have become The concept of the learning region and the
key recruitment and retention criteria (McDowell, proposition that regional economic success reflects
1997). Many manufacturing companies typically specifically regional assets and institutions for the
seek to recruit physically fit young males, with production and dissemination of knowledge is also
family and other financial commitments, who will be hardly a new one. Even the most cursory glance at
loyal to the company and accept new ways of the historical geography of capitalist development
working on the factory floor. Only a tiny fraction of indicates that this has long been the case. In the
those who apply and of those who feasibly could fill United Kingdom in the latter part of the 19th
these jobs are employed, typically after an extensive century, for example, ‘coal combines’ lay at the
selection process. Firms can only exercise this heart of carboniferous capitalism in the industrial
degree of selectivity against a background of high boom regions (Harvey, 1917). These combines
unemployment and for this reason are also very comprised interlocking intraregional networks of
careful in their choice of locations in which to highly innovative firms, extending across sectors,
introduce these new forms of work and employment integrated by physical input–output linkages and
(Hudson, 1997b).4 various forms of formal economic and financial
There is also some scepticism as to the validity of linkages (such as interlocking directorates and
the notion of new forms of network relations mutual share ownership). More importantly, they
between companies as involving equal partners. It is were underpinned by non-economic relationships
certainly the case that there has been a considerable between key individuals and families and by
increase in out-sourcing and subcontracting by networks of supportive institutions that evolved

European Urban and Regional Studies 1999 6 (1)


68 EUROPEAN URBAN AND REGIONAL STUDIES 6(1)

around, in and through the formal economic contemporary claims that the learning region offers
relationships between companies. These spanned a new and socially inclusive model of development
the boundaries of local civil society and the state, as are ones that need to be scrutinized carefully since
a dense network of interlocking institutions, attuned they tend conveniently to ignore the point that the
to the needs of the dominant regional firms and social relations of capitalism are at least as deeply
sectors, emerged there. For many such regions the marked by social inequality now as they were then.
problems subsequently became those of There are critical issues related to who controls the
‘institutional lock-in’, an inability to make the processes of knowledge production and learning.
change from one development trajectory to another ‘Learning firms’ within a region may be successful
precisely because the institutional bases of the economically and the institutional structures of a
region reflected the past dominance of now ‘learning region’ may both be produced by and
declining firms and sectors (Grabher, 1993; Hudson, facilitate the reproduction of ‘learning firms’. This,
1994b). This is a salutary reminder that institutional however, does not necessarily equate to an
thickness per se is no guarantee of successful egalitarian model of regional socio-economic
regional economic adaptation and innovation as it development. Such firms remain unavoidably built
can constrain rather than facilitate processes of around antagonistic class relations and may well also
collective learning and change. presume inequalities in other social relationships
Furthermore, the fetishization of knowledge and such as those of age, ethnicity, and gender as an
learning, and their institutional bases, may lead to a integral part of their strategies for competitiveness
neglect of other institutional factors that underlie and success in the market place (cf. Massey, 1995:
regional competitiveness. There could be no clearer ch. 8).
illustration of the point that in order to understand
the historical (including the contemporary in this)
geography of capitalist production, it is necessary to
grasp the ways in which such successful regional Conclusions and reflections on the limits
economies in the 19th century were grounded in to learning: learning by whom, for what
social relationships that extended far beyond the purpose?
workplace into home, community and the
institutions of local civil society, and, in due course, There is no doubt that firms have a great variety of
the state (Beynon and Austrin, 1994; Carney and possible approaches to production. Equally, there is
Hudson, 1978). Moreover, central to the embedding a variety of forms of capitalist development model,
of industrial capitalism in these regions was the nationally and regionally, and this indicates that
construction of discourses and ideologies that there is a fair amount of room for manoeuvre in
represented this as the ‘natural’ course of regional seeking to define regional development strategies
and socio-economic development. These (for example, see Albert, 1993; Lash and Urry,
representations constituted an attempt to present 1987). While acknowledging the ‘room for
one view of a particular trajectory of capitalist manoeuvre’ (to borrow the phraseology of Seers et
development as ‘natural’ and ‘unavoidable’, to instil al., 1978) that exists as a result, the key point to
this as a hegemonic and uncontested view, emphasize is the continued existence of the social
subliminally learned and accepted by the structural constraints which set limits to what is
populations of these regions. possible within a capitalist economy. These cannot
This attempt to establish such a view as simply be conveniently forgotten or assumed away.
hegemonic was important because it was clear in the One implication of this is that capitalist
19th century that economically successful regions, development of necessity remains driven by
which were certainly learning regions containing competition and the search for profit. Another
learning firms, were also deeply socially divided implication is that such development must therefore
ones. They were characterized by enormous remain uneven – both between classes, between and
disparities in incomes and wealth, juxtaposing within other social groups, and within and between
extremes of conspicuous consumption with regions, a fortiori if it is recognized that regions
widespread abject and absolute poverty. The themselves are constituted as socially heterogeneous

European Urban and Regional Studies 1999 6 (1)


HUDSON: A CRITIQUE OF THE LIMITS TO LEARNING 69

and as spatially discontinuous, whatever the claims region, or some combination of the two. It is
about social homogeneity and spatial contiguity important to acknowledge that for those regions that
(Hudson, 1990). Certainly in some circumstances, do successfully embark on the ‘high road’ to regional
development models may be based on less rather economic success, this very success raises new
than more divisive guide rails – but capitalism problems in terms of a requirement continuously to
requires the existence of reciprocally defining classes learn and anticipate, if not create, market trends.
of capital and wage labour, although of course there Moreover, if some regions ‘learn’ and ‘win’, many
may well be attempts to represent the situation in more will fail to do so and ‘lose’.
ways which deny this. The command and control functions of an
‘Learning’ and the production of knowledge are increasingly spaced out global economy will
undoubtedly necessary elements in the processes of doubtless continue to locate within the few global
competitive commodity production and in some cities, economic ‘winners’ but marked by deep social
respects can themselves become commodified. The divisions (Sassen, 1991). These global cities are
diffusion of information about new organizational, characterized by intensely dense institutional
product and process innovations is a central element structures for producing and disseminating
in the competitive dynamic of capitalism. The information globally but at their heart lie
greatest competitive advantage is, however, interpersonal contact networks decisively bound
conferred by precisely that knowledge that remains together by the ties of critical tacit knowledge (Amin
tacit and uncodifiable, not amenable to generalized and Thrift, 1994). They are also deeply divided
transmission to others. It is thus the most valuable places, with sociospatial differentiation deeply
form of knowledge in conferring competitive etched into their urban landscapes as a necessary
advantage, precisely because it cannot have a price feature of the ways in which their economies are
put upon it. Successful firms and regions thus guard constituted (see Allen et al., 1998). Moreover,
it jealously. If, however, firms ‘learn’ via producing beyond the boundaries of the global cities, a post-
and protecting such knowledge, if ‘regions’ seek to mass production, post-Fordist world of specialized
learn in the same way, in the final analysis this is to regional economies, all on their own successful
enhance their competitiveness in a range of markets. learning trajectories, and all winning, is not a
As a consequence uneven development within and feasible option within the social relations of
between regions and their constituent social groups capitalism. Equally, a post-mass production, post-
is unavoidable. Knowledge and learning may be Fordist world of product-specialized high-volume
necessary for economic success but they are by no production regional complexes, all producing just in
means sufficient to ensure it; nor, even more so, are time and in one place in their own unique niche in
they sufficient to ensure equality, cohesion and the global market-place, is not a feasible option.
social justice. There may be some cases in which some regions
For some firms, becoming ‘successful learners’ is ‘win’ by following one or other of these strategies –
the route to competitive success, and these firms but there will be many more that ‘lose’, either failing
have to locate their operations somewhere. in the attempt or doomed to failure by the success of
Conversely, other firms must lose as part of this others.
struggle, and they have to devalorize capital, close There is no doubt that an explicit recognition of
plants and dismiss workers somewhere. There is no the role of the production and dissemination of
necessary territorial correspondence between these knowledge in a capitalist economy can help further
two faces of creative destruction – indeed, there are understanding of uneven development. Cognitive
strong grounds for expecting the production of new assets can certainly be crucial is defining competitive
commodities often to take place in new production advantage. Equally, the case for a regional political
spaces. For some regions, becoming ‘learners’ economy that remembers the lessons of a Marxian
likewise offers a route to competitiveness, albeit one political economy and recognizes capitalism is
characterized by internal social division, if not strife. structurally and necessarily, inherently and
This may involve developing institutional structures unavoidably, characterized by uneven processes of
to enable existing firms and sectors to evolve growth and decline remains as valid as it ever did.
successfully, or new ones to become established in a Acknowledging that capitalism is shaped within

European Urban and Regional Studies 1999 6 (1)


70 EUROPEAN URBAN AND REGIONAL STUDIES 6(1)

particular structural boundaries which pivot around British Geographers (6–8 January 1998), University
class relationships is not to imply that social life can of Surrey. In addition to comments from
be, is to be, or should be, reduced to such participants in the seminar, Ash Amin kindly
relationships, nor to deny that gender, location, commented on the original paper, and valuable
ethnicity, and much more besides are constituted as suggestions were made by the editors and referees
separate cleavage planes of social division and at the for this issue of European Urban and Regional
same time as foci of individual and collective Studies. The usual disclaimers nonetheless apply.
identities. It is, however, to suggest that class
relations cannot be ignored – not least in the
production and diffusion of knowledge itself.
There is equally no doubt that innovation and Notes
learning can be important concepts in
understanding why some firms and regions are 1 There may be a danger of ‘tacit knowledge’ thereby being
economically successful and others are not. Equally, invoked as an unknowable residual explanatory variable,
it is evident that the ‘learning’ paradigm may both in a way analogous to neo-classical growth theorists’
legitimate the success of some firms and regions, the treatment of technical change. This is not to deny the
failure of others, and seem to hold out the enticing existence or significance in some circumstances of tacit
knowledge. It is to suggest that there are methodological
prospect of a more prosperous future to still many
problems in revealing its existence and effects.
others. Nevertheless, it would be as well to 2 It is important to note, however, that the processes of
recognize the limits that ‘learning’ entails, both as an producing new knowledge, knowledge that comes into
explanatory concept and as a guide to territorial existence for the first time, are not dealt with directly in
development policies. Not least, learning the learning approaches, as a corollary of their grounding in
political economy of learning implies a need to associationst, stimulus–response conceptions of learning
unlearn – or at least ignore – other concepts of and their concern with outcome rather than process (see
political economy, with different developmental Odgaard and Hudson, 1998). This represents a major
implications. ‘Learning’ is by no means a guarantee problem with the learning approach in its own terms.
3 En passant, it is worth noting that this creates problems
of economic success. Still less is it a universal
for characterizing the 19th century as a regime of
panacea to the problems of sociospatial inequality
extensive accumulation: cf. Brenner and Glick (1991).
and in some respects is used as a cloak behind which 4 This also raises broader questions as to the maintenance of
some of the harsher realities of capitalism can be social order and the perceived legitimacy of capitalist
hidden. Addressing the problems of uneven relations of production and the state policies that sustain
development and inequality undoubtedly poses very them, especially when such locationally-concentrated
hard policy and political choices for those who seek pools of surplus labour have become a permanent and
to devise progressive development trajectories in structural feature of labour markets.
such a world, torn between attachments to place,
class, gender, ethnic groups and no doubt a lot more
besides.
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