The Role of Culture in Regional Economics
Linking RRVS (Romanesque Routes in the Sousa Valley Region)
to Cultural Embedding in the Region
Nazanin Bidabadi
(Post-graduate in European Studies, UCP – Porto – Portugal)
(M.A. in Urban Studies, University of Akron – Ohio – USA)
(B.A. in Political Science, Kent State University – Ohio – USA)
Semestral Mini-Thesis do Curso de Pós-Graduação Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado) do Plano de Formação da
Rota do Românico do Vale do Sousa (RRVS)
Casa de Rosende, Raimonda
Paços de Ferreira
April 2006
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
2
Abstract
In the context of regional economics and innovation the exact impact of
‘culture’ remains unclear. In response, this semester work offers a possible
integration mode of the cultural factors, taking into account their role in local
development and local innovation processes. It is analysed specifically the
role played by the entrepreneurial culture, as qualified aspect of the local
culture.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
3
Table of Contents
Abstract
Introduction
I–
4
Concept of Culture in an Economy of Regions :
'Learning Region'
II – The concept of culture in innovate regions
6
10
III – From traditional cultural activities to the emerging
cultural dynamic : Brief case-study on RRVS
12
Final Notes
18
References
20
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
4
Introduction
The main context of this article is the newly born project of RRVS
(Romanesque Routes in Sousa Valley) in the region, as maybe the (only) route
to insure some degree of corporate and regional economic success in the near
future.
The recent growing interest in creating a cultural route in VS (Sousa
Valley) for the development of its regional economic future is the only one
facet of the engagement between economic geographers and regional analysts.
The focus on ‘culture’, ‘knowledge’ and ‘learning’ is presented as even
a bigger challenge and a dramatic breakthrough for an under-educated,
depressed VS region. In fact, recognizing the imperative of innovation and
knowledge creation to economic success is hardly new (Braczyk et al., 1998).
It would of course be wrong to deny the significance of the knowledge,
innovation and learning (culture) to economic performance. The old theme
that ‘knowledge is power’ comes back to mind.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
5
The emphasis on knowledge is also related to claims of ever
possibilities for increasingly egalitarian, more equal and progressive forms of
economic and social development. It further brings associated claims as to
new possibilities for urban and regional regeneration strategies and new
developmental trajectories for problematic cities and regions (Morgan, 1995;
Simmie, 1997).
Thus, the structure of this article is as follows:
First, the claim made about the significance of ‘culture’ and ‘learning’ in
transmission of information and knowledge, is of unprecedented importance in
the operations of the regional economy.
Second, that regional economic success is heavily based upon territorially
defined assets derived from unique knowledge and cognitive assets, and
stresses the importance of collective learning processes.
Third and finally some conclusions are briefly drawn, around the application
of culture to the identity of the region as an influential economical factor in
the area.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
6
I – Concept of Culture in an Economy of Regions : ‘Learning
Region’
A cover story in the Business Week (issue February 3, 2003)
emphasized the impact of global outsourcing in the past three decades on the
quality and quantity of jobs in both developed and developing countries
(Eugardis, Bernstein and Kripalani, 2003).
During 1960's-1970's it was outsourcing or exodus of production jobs
(shoes, clothing, cheap electronics, toys, etc). In 1980's-1990's routine service
work (credit-card receipt processing; airline reservations, etc) began to move
offshore.
Today, high technology of computer base, internet and high-speed
private data networks have allowed ‘knowledge work’ to became ‘footloose’.
Thus in the area of globalization, the importance of knowledge in the
contemporary organization of production (distribution and exchange of
knowledge) takes an unprecedented significance in the operation of economy
and consequently in the economy of a region.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
7
The core of the present discussion relays on and around the theme of
‘learning’. Several prominent studies were influential and highlighted
different aspect of learning: learning-by-doing (Arrow, 1962); learning-byusing (Rosenberg, 1982); learning-by-searching (Boulding, 1985).
But perhaps the most influential study has introduced the theme of
learning-by-interacting (Lundvall, 1992). It discusses and explains how small
companies can remain competitive in a region of open economies, that is, in
an environment of rapid technological change and uncertainty.
The study focuses on companies learning about and adapting to ‘best
practice’ via interaction with other firms and institutions, as the route to
competitiveness (Lundvall, 1995). He concludes how the term ‘learning
economy’ is important to a society in which the capability to learn is critical to
economic success.
It seems evident that contemporary capitalism has reached the stage at
which knowledge is the most strategic tool resource, and learning the most
important process. And although not all economies are capitalist, historical
capitalism cannot be fully understood without the due reference to the impact
of innovation on the subject.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
8
Capitalist success in production has always depended on two things:
making existing commodities more profitable and finding or inventing new
commodities to produce profit. The growing emphasis on knowledge and
learning, therefore, establishes links to new forms of relations between
companies, based on cooperation, trust and the sharing of knowledge for the
benefit of both parties (Amin and Thrift, 1994).
In another words, relation is established between culture and innovation
through the processes of collective learning (Figure 1).
Figure 1
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
9
The outcome of this new information economy and collective learning
is probably the most important social process created, and where knowledge is
converted to a key resource or asset for the region.
For this, in order to understand the dynamics of regional development
based on innovation it is imperative to pay a higher attention to regional
characteristics that condition such learning and the management of
knowledge: this is called Culture (Bidabadi and Barros, 2006).
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
10
II – The concept of culture in innovate regions
The concept of culture is clearly multidimensional (Spilling, 1991).
From the point of view of local/regional development and local innovation
processes, Culture can be considered in two distinctive manners: Culture as a
sector, Culture as an aspect (Bidabadi and Barros, 2006).
The notion of a cohesive society, with permeable boundaries between
economy, civil society and state, is captured in the concept of culture as a
sector. Within the economy, the state fulfils a very distinctive role as mediator
and facilitator of relations between various organizations (cultural public
institutions, commercial sectors based on cultural activities) as well as more
traditional roles such as providing special services (determining cultural
contribution for PIB, patrimonial evaluation and restoration, cost/benefit
analysis of political and cultural activities).
The concept of culture as an aspect is more pertinent in relation to local
development. Here culture places the emphasis on shared values and norms,
meanings, and understandings, specifically territorially embedded activities
and customs of collective kind, and of course tacit knowledge of the
institutional structures through which it is produced.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
11
In short: the identity of a local society. The focus here is shifted from
firms (companies) to a territory, as the key economic actor in the knowledgebased competitive struggle; therefore ultimately, to a collective and territorial
definition of competitive advantages which emphasize the cultural and social
aspect of economic success (Storper, 1995).
Throsby (2001) defines that culture influences economy in the three
distinctive manners:
a) Economic effectiveness: Cultural values influence a more efficient
decision-making process, faster innovation.
b) Social equality and justness: Local culture promotes solid moral
principals and general solidarity.
c) Economic objectives: Cultural values determine clear objectives,
aims and indicate economic interest and success of a society.
The introduction of cultural factors in the economic studies have
acknowledge local values (more than ever before), as well as adapting their
performances to the traditions and institutions characteristic of each territory.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
12
Such role allowed local community to share their knowledge and
experience, and as a result helped to improve overall regional self-esteem.
Therefore this growing emphasis on knowledge and learning also links to the
claims for new forms of relations between companies, based on cooperation,
trust, and sharing of knowledge for mutual benefits.
To sum up: strong cultural factors vertebral to any local society generate
high degree of self-esteem that can lead to innovation, modernization and
change.
III – From traditional cultural activities to the emerging
cultural
dynamics
:
Brief
case-study
on
RRVS
(Romanesque Routes in the Sousa Valley region)
This chapter briefly outlines how this cultural embedding in the region
potentially impacts upon its territory, to innovate and hence to compete. But
before let us consider the useful multi-tiered conception of culture outlined in
Figure 2, taken from the organizational studies literature (Schein, 1992).
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
13
Figure 2
The (corporate) cultures are conceptualized as the sets of social
conventions, norms, standards, customs and ‘the rules of the game’ that cover
social interactions within the firm (region). Corporate cultures are, thus, seen
as coherent and unifying systems that insure stability through appropriate
ways of behaving, attitudes and thinking (James, 2005).
This model also applies at the regional scale where it is understood that
corporate cultures and regional cultures do not exist separately from each
other.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
14
In terms of regional cultural systems, the (regional) collective values,
ideologies, and conventions are being imported into firm cultural cores, and
therefore shaping them in the organizational control and decision-making
processes (middle layer). The outer layer of firms corporate behavior become
regionally culturally infected (Schein, 1992) (Schoenberger, 1997).
The RRVS represents a promotional perspective for the VS region, and
inherently offers various promising contributions as well as challenging
critical issues for the VS region (and beyond).
Here is a brief background to the area. The Sousa Valley region is a
network of peripheral medium-size cities, highly dependent on the supply of
services and employment capacity to the city agglomeration of Porto, as well
as exports (shoes, furniture, textiles) to the European Community (and the
world beyond).
Within this network Felgueiras, Paços de Ferreira, Lousada, Penafiel,
Paredes and Castelo de Paiva play relatively important roles.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
15
Three priority strategies were developed for the extended region:
●
To develop inter-urban logic of cooperation that contributes to the
structuring of the diffuse territorial and productive model, and reduces the
strong dependence on the city agglomerate of Porto;
●
To improve the quality of the urban centers and to enhance their identities
in order to stop the process of disorganized and poor quality of peripheralurbanization;
●
To consolidate the Paços de Ferreira–Lousada–Felgueiras sub-network, the
Paredes–Penafiel axis and the triangle formed by Felgueiras–Amarante and
Marco de Canavezes (Baixo-Tâmega region) in order to structure the
network of urban centers (DGOTDU : National Urban System – Medium
Sized Cities and Territorial Dynamics, 2002).
Furthermore, in the VS region, even though there is a considerable
volume of co-funded investment, the qualification levels of labor force and
resident population remain low and present a similar situation of high
vulnerability. When it comes to the territorial cultural dynamics VS actually
present a low level of visibility, being reduced to one or two traditional
themes.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
16
In a country (Portugal) with such diversified territorial development
patterns, the organization and equilibrium of the sub-spaces affect the progress
of the overall system (DGOTDU : National Urban System – Medium Sized
Cities and Territorial Dynamics, 2002).
The proposal of 21 Romanesque Monuments as the embedded assets of
the territory for the Cultural Tourism Route in VS region should influence by
a high degree the turnover of ‘cultural consumption’ in the area. This would
bring visibility as well as territorial cultural dynamics so much needed for the
urban centers.
The objective is to achieve a significant polarizing effect with respect to
cultural activities in the region, in relation to the urban centers nearest to them.
Furthermore, the increasing importance of such innovate project can be
responsible for the discovery (and re-development) of the comparative
advantage of the region.
It is thus the most valuable form of knowledge in conferring
competitive advantage, precisely because it cannot have a price put upon it.
Such knowledge could be invaluable and will enhance competitiveness in a
range of markets.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
17
The knowledge, learning and eventually the implementation of this
project (RRVS) may be necessary for the economic success of the Sousa’s
Valley but they are by no means sufficient to ensure it.
But more important, this may involve developing institutional structures
and existing firms and sectors (such as Manner House Tourism Units) to
evolve successfully, or new ones to become established in the region. These
units, plus other consolidated institutional structures, will produce and
disseminate information globally, but more intensely should also establish
interpersonal contact networks.
Finally, there is no doubt that an explicit recognition of this cultural
embedding in the region contributes significantly to the prosperity of the
region and consequently reflects the self-esteem of the community. The
communities that have generated their own prosperity autonomously, through
innovative and managerial dynamism, are able to accumulate an important
social capital, a capital that is much more important than the financial one
(Sweeney, 2001).
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
18
Final Notes
Although the article briefly focused on the recent project of RRVS as
the breakthrough example for the local development, the central theme of this
article was conceptualizing the relevance of ‘culture’, knowledge and learning
in any successful regional economies.
The pilot project of RRVS is a radical and promising development agent
with exciting future possibilities in the under-educated VS region studied.
Becoming ‘successful learner’ seems to be the only route to competitive
success in the VS.
Yet this learning should accompany harsher realities to deal with, such
as the disordered and ignored environmental issues around the territory. Such
environmental issues that should be mentioned, include (among others):
●
Loss of diversity landscape features, such as woodlands, streams, etc;
●
Increase of mono-cultural farmland;
●
Fragmentation and disappearance of ‘natural’ areas, such as riverbanks,
meadows, etc;
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
●
19
Alienation of landscapes through industrial and urban developments and the
building of roads;
●
Loss of characteristic rural architecture (or its protection neglect by
municipalities) and urban aggression towards Patrimonial properties (IIM –
Imóveis de Interesse Municipal, that is, Heritage or Special Buildings of
Municipal Interest)
●
Pollution of rivers and air pollution, causing trees to die.
The economic value of nature is often underrated, even though nature is
our base capital: do not forget that Nature and Landscape also is Patrimony
(Bidabadi and Barros, 2006). Above all, learning to be environment sensitive
is economically sound.
Last but not the least, the common feature of all these RRVS initiatives
is their emphasis on action: that is, emphasis relative to management and
leadership capacity, which their strong conviction to ‘collective learning’ is
depended on.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
20
References
Amin, A. and Thrift, N., Globalization Institutions and Regional
Development in Europe, Oxford University Press, U.K., 1994.
Arrow, K., “The Economic Implications of Learning by Doing”, Review of
Economic Studies 29: pp. 155-173, 1992.
Bidabadi, N. and Barros, R.C., “A Importância do TER na RRVS”, Programa
de Formação da RRVS, Curso de Sensibilização, 1º Workshop,
Mosteiro de Pombeiro, Felgueiras, 24 de Fevereiro de 2006.
Boulding, K., The World as a Total System, Sage Publications, London,
U.K., 1985.
Braczyk, H.C., Cooke, P. and Heidenreich, M., Regional Innovation System,
UCL Press, London, U.K., 1998.
DGOTDU, National Urban Systems – Medium Sized Cities and Territorial
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Direcção
Geral
do
Ordenamento
do
Território
e
Desenvolvimento Urbano (DGOTDU), Colecção Estudos 4: pp. 129,
2002.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
21
Eugardis, P., Bernstein, A. and Kripalani, M., “Is Your Job Next?”, Business
Week, February 3: pp. 50-60, 2003.
James, A., “On the spatial limits of culture in high tech regional economic
development”, in Radcliffe, S.A. (Editor) of Culture and Development in
a Globalizing World: Geographies, Actors and Paradigms, Routledge,
Oxford, pp. 170-202, 2005.
Lundvall, B.A. (editor), National Systems of Innovations: Towards a
Theory of Innovation and Interactive Learning, Pinter, London,
U.K., 1992.
Lundvall, B.A., “The Learning Economy – Challenges to Economic Theory
and Policy”, revised version of a paper presented to the EAEPE
Conference (October 1994), Copenhagen, 1995.
Morgan, K., “The Learning Region: Institutions, Innovation and Regional
Renewal”, Department of City and Regional Planning, Papers in
Planning Research No. 157, University of Wales, Cardiff, 1995.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06
© 2006 – Nazanin Bidabadi (Semestral Mini-Thesis)
The Role of Culture in Regional Economics
22
Rosenberg, N., Inside the Black Box: Technology and Economics,
Cambridge University Press, U.K., 1982.
Schein, E. H., Organizational Culture and Leadership, Jossey-Bass, San
Francisco, CA, 1992.
Schoenberger, E., The Cultural Crisis of the Firm, Blackwell, Cambridge,
MA, 1997.
Simmie, J., Innovation, Networks and Learning Regions, Jessica Kingsley,
London, U.K., 1997.
Spilling,
O.R.,
“Entrepreneurship
in
a
Cultural
Perspective”,
Entrepreneurship and Regional Development, No. 3, pp. 33-48, 1991.
Storper, M., “The Resurgence of Regional Economies”, Ten Years After: the
Region as a Nexus of Urban Studies, 2 (3): pp. 191-221, 1995.
Sweeney, G. P., “The multi-faceted role of education and training in
entrepreneurial and innovative dynamism”, Seminário, 2001.
Throsby, D., Economia y Cultura, Cambridge University Press, Madrid,
2001.
Plano de Formação: Rota do Românico do Vale do Sousa (RRVS)
Curso de Pós-Graduação: Turismo, Ordenamento e Gestão do Território
(da estruturação espacial ao desenvolvimento local sustentado)
NB
2005/06