Regional Competition, Regional Dumping

The discourse and debate on regional competition has been rising in importance both in academia and among politicians, entrepreneurs, and policymakers. This debate is closely linked to the one on globalization, as this latter process has been giving rise to new competitive environments and to a new conception of the world as an “arena” where regions, like firms and individuals, engage in competitive behavior. Regional competition, in a more limited and short-term perspective, consists of competition for resources, investments, or market shares. Additionally, from a broader and arguably more interesting perspective, it corresponds to the promotion of the region as an attractive place for businesses and people with the ability to adapt to a changing world.

Are regions able to engage in competitive processes in the same way as firms? This is a central and controversial question when we address the issue of regional competition. While some are convinced that regions are indeed able to compete, others claim that regional competition is a “fuzzy concept,” a poor and essentially meaningless metaphor, and that this somewhat chaotic and ill-defined discourse is based on a relatively narrow conception of how regions compete, prosper, and grow. There is now an extensive body of literature from the two sides in this debate on the apparently simple, but in reality complex, and controversial issue of regional competition.