Regional development involves a range of social, economic and cultural processes that make up the context in which a region operates. It is a complex and contested concept that attracts the attention of geographers, economists, sociologists, political scientists and historians among others. Two of the most influential strands in the literature are evolutionary economic geography (EEG) and regional innovation systems (RIS).
EEG and RIS emphasize the role of endogenous factors that determine the ability of a region to develop itself, such as its human, technological, and institutional resources. These factors enable a region to achieve economies of scale in specific industrial activities through the accumulation of firm-level knowledge and expertise and the intangible benefits associated with agglomeration. They also enable a region to develop its economy in a broader sense by becoming a center of innovation, which provides opportunities for firms and citizens to develop new products and services.
These factors are not enough to ensure the success of a regional development strategy, however. The competitiveness of a region depends on its positioning within global value chains and the degree to which it is able to tap into the benefits of interregional trade. This requires a region to upgrade its current position in these chains and connect with other regions to create an ecosystem that enables its industries to develop.
This can be accomplished by offering a variety of subsidies to encourage industry to locate in the region. Some of these incentives include free land sites, interest subsidies and loan guarantees. These incentives are often used by governments to promote regional development. In this article, I argue that the analysis of these policies should take into account the invisible forms of power and domination they convey.
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