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CASE STUDY 2.1: PORTER’S DIAMOND: KEY FACTORS OF SUCCESS FOR CASE STUDY REGIONS

• How well do these success factors fit Porter’s Diamond analysis?

Answer

See in examples below (these are suggestions)

Firms’ strategy, structure and rivalry

1. Oberbayern – entrepreneurial culture
2. Sterea Ellada – presence of large, high productivity companies with high R& D spend
3. Ile de France – national leader in defence and network of support companies; strong presence of foreign owned companies
4. Niederosterreich – critical mass of untraded interdependencies; emphasis on internationalization; emphasis on collaboration; innovation and technology upgrading to reduce labour cost pressures

Demand conditions

1. Oberbayern – modern manufacturing base and expanding services
2. Darmstadt – leading financial sector and strength elsewhere
3. Ile de France – cultural hub and centre

Factor endowments

1. Oberbayern – public support in infrastructure, good transport links, immigration supplying labour, special industrial sites
2. Darmstadt – immigration supplying skilled workforce and employment, well developed transport and telecommunications, University links, active government policy to promote region
3. Sterea Ellada – innovation system supported by EU funding, training relevant applied technologies; proximity to capital and good communications.
4. Niederosterreich – education and research base; geographical position

Related and supporting industries

1. Oberbayern – clusters in ICT and spillover effects
2. Darmstadt – clusters of life science research institutes: links to University
3. Sterea Ellada – agencies to support innovation & technology transfer
4. Ile de France – Centre of transport network, research centres, policy of locating clusters, network of supporting companies
5. Niederosterreich – presence of regional innovation system

• What could other regions learn from this?

Answer

Strong emphasis on clusters, government support, good transport links/infrastructure (often with government support), innovation, culture, education – these are key themes coming out.

Other chapter answers >>

• Case Study 1.2 Karstadt Undertakes Investment for Survival
• Case study 1.3 Europe's International Trading Future
• Case Study 2.2 The Coffee Market
• Case Study 3.1 Sugar Industry
• Case Study 3.2 FSC Dispute
• Case Study 3.3 Beef Hormones
• Case Study 4.1 SEM Effects of Business
• Case Study 4.2 Africa's Economic Integration
• Case study 5.1 The Effect of Exchange Rates on Businesses – The Us Dollar
• Case Study 5 2 Real Exchange Rates in the Euro-Zone
• Case Study 6.1 SEC to Rethink Post-Enron Rules
• Case Study 6.2 A Controversial New European Directive
• Case Study 8.1 Cross-Border Banking Bids in Italy
• Case Study 8.2 The Future of the London Stock Exchange (LSE)
• Case Study 9.1 Back to Bread and Butter for Europe
• Case Study 9.2 Poductivity in European and International Labour Markets
• Case Study 11.1 Poorer EU Areas Lose Funding
• Case Study 11.2 A Diverse Approach to Curbing Greenhouse Gases
• Case Study 12.1 European and US Entrepreneurship Activity
• Case Study 12.2 EU Enlargement and the SME Sector