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Networks and development

Harald Bathelt and Johannes Glückler

Chapter 7 in Concise Introduction to Relational Economic Geography, 2026, pp 82-93 from Edward Elgar Publishing

Abstract: Large firms enjoy competitive advantages compared to small firms due to economies of scale, learning capabilities and their ability to acquire comprehensive knowledge about their environment. However, small and medium-sized enterprises (SMEs) are integral components of regional economies and are often crucial for regional employment and income. One way to make up for disadvantages of size is to build localized networks and engage in social divisions of labor to develop specific competencies. When actors become embedded in durable regional networks, transaction costs are low and collaborative forms of production become quite stable. This chapter investigates how economic networks within and beyond regions operate and how they impact regional development.

Keywords: Cluster dimension; Industrial cluster; Interregional connectivity; Regional development theory; Regional growth (search for similar items in EconPapers)
Date: 2026
ISBN: 9781802204971
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