Despite concern about the negative impacts of globalisation on the economies of OECD regions,

notably the loss of manufacturing jobs and enterprise relocation, this report presents evidence that

region-specific advantages - embedded in specialised firms, skilled labour and innovation capacity -

remain a significant source of productivity gain for firms, even for the largest multinational enterprises.

This seems to contradict the hypothesis that globalisation reduces the importance of geographical

proximity in business.

Nonetheless, a new geography of production is emerging, based around both old and new regional

hubs in OECD and non-OECD countries. Some of the new hubs in non-OECD countries are

attracting increasingly high value-added production and services. In response, national and regional

governments in OECD countries are looking for ways to ensure that regions maintain a competitive

edge in industries that generate wealth and jobs.

This report looks at how different regions are responding to these challenges and the strategies they

have adopted to support existing competitive advantages and to transform their assets to develop

new competitive strengths.

In the same series:

Competitive Regional Clusters: National Policy Approaches