Small municipalities in the knowledge and experience economy? Anne Lorentzen Aalborg University EPRC 2010
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1 Small municipalities in the knowledge and experience economy? Anne Lorentzen Aalborg University EPRC 2010
2 Experience Economy (EE) as economic innovation strategy in the periphery DK: National, regional, municipal strategies: EE as industrial policy direct employment in tourism EE as industrial policy diversification towards knowledge economy EE as attraction of citizens highly educated, creative class But is this realistic? And in particular is it realistic in the periphery?
3 The experience economy Part of the knowledge economy (Florida): Highly educated labour demand quality of place Strategic focus on urban amenities as growth A paradigm in itself (P&G, Tofler): Generalised system of experience consumption and production Place bound experiences as place development Place as a particular value in the economy
4 Fig (1) Place and the experience economy A. Place in products Services Products Regional foods Souvenirs Arts and crafts Events Activities Historic festivals Theatre Guided tours Attendance based B. Products in place C. Place as products Places Theme parks Urban spaces National parks Source. Based on Lorentzen & Smidt Jensen, forthcoming
5 The questions EE as lever of growth in the periphery? Do different peripheries have different potentials for EE? Do different types of periphery benefit differently from EE development in terms of demography, employment & diversification?
6 Fig 2 The case: Region Northern Jutland 0.6 mio inhab. (DK 5.5 mio)
7 Geographic EE resources of NJ Natural environment (coasts, beaches, landscapes) Beaches most remarkable Urban environment (3 small cities) Aalborg, Hjørring Frederikshavn Accessibility (motorway, airport, ports) Aalborg + suburbs, but many remote areas History/authenticity most Visibility, reputation Skagen, Blokhus, Aalborg
8 Table (1) Place bound experience economy branches (PBEE) in Northern Jutland, Denmark, Copenhagen and Denmark in Percentage share of total employment. Source: Based on Statistikbanken PBEE = Hotels Restaurants, Culture, Association, Renovation PBEE total Hotels & restaurants Northern Jutland Denmark Denmark outside of Copenhagen City (DK C) City of Copenhagen
9 Table (2) PBEE in 11 municipalities of Northern Jutland 2008 as share of employment, in percentage. Source: Based on Statistikbanken PBEE = Hotels Restaurants, Culture, Association, Renovation PBEE total Hotels & restaurants Northern Jutland Læsø Frederikshavn Aalborg Hjørring Jammerbugt Morsø Rebild Thisted Mariagerfjord Brønderslev Vesthimmerland
10 PBEE above DK average employment in Municipalities hosting 1.Small cities 2.Traditional coastal tourist areas
11
12 Table (3) Share of experience economy (PBEE) employment and unemployment rate of 11 municipalities of Northern Jutland PBEE share of employment High share Low share Unemployment rate High Læsø Frederikshavn Aalborg Hjørring Jammerbugt Low Thisted Rebild Vesthimmerland Mariagerfjord Morsø Brønderslev
13 PBEE and unemployment PBEE related with high & seasonal unemployment Mostly so in Læsø, the island
14
15 Tab (4). Share of PBEE employment and demographic growth in 11 municipalities of Northern Jutland Share of PBEE in total empl. High share Low share Demographic growth Positive growth Negative growth Aalborg Jammerbugt Læsø Hjørring Frederikshavn Vesthimmerland Rebild Mariagerfjord Brønderslev Thisted Morsø
16 PBEE and demography Positive correlation between PBEE and demographic growth in Aalborg (big city) Reverse relationship everywhere else Implication Citizens look for other factors than PBEE Accessibility (favouring a city region) Jobs (bigger offer and variety in city region) Cheap housing (favouring suburbs)
17 Table (5). Knowledge services in Northern Jutland, Denmark, Copenhagen and Denmark outside of Copenhagen 2008 as per cent of total employment. Based on the Statistikbanken Knowledge services: business services, financing & insurance Knowledge services total Business services Northern Jutland Denmark Denmark outside of Copenhagen City Copenhagen City
18 Tabel (6) Knowledge services in 11 municipalities Percentage share of employment Source: Lorentzen & Krogh Based on Statistikbanken Knowledge service Of which business services Aalborg Rebild 9, Brønderslev 9, Jammerbugt 9, Frederikshavn 8, Hjørring 8, Mariagerfjord 8, Vesthimmerland 8, Thisted 7, Morsø 6, Læsø 4,
19 Tabel (7) Experience economy and knowledge economy in 11 municipalities of Northern Jutland Share of employment (High vs. low) PBEE High share Low share Knowledge services High share Aalborg Frederikshavn Hjørring Jammerbugt Brønderslev Rebild Low share Læsø Thisted Mariager Vesthimmerland Morsø
20 PBEE and industrial diversification NJ: KS low, while PBEE high = no diversification/upgrading Aalborg: KS high, PBEE high = positive synergy Small cities & suburbian areas: KS more developed Small cities & main city: Positive synergies among knowledge economy & PBEE No diversification towards KS detectable in tourist areas.
21 Differentiated status and role of PBEE in the periphery Variables PBEE UNEMPL /+ DEM KS Periphery type 1. Small cities Suburban areas Rural, tourist Rural remote
22 Conclusion PBEE significant in NJ PBEE concentrate in urban areas + traditional tourist resorts BUT no clear positive role: PBEE related with high, seasonal unemployment PBEE related with demographic decline ( Aalborg) PBEE does not explain KS development or demographic growth
23 Implications Role of PBEE part of development in small cities a small supplement in rural areas as industrial lock in in tourist areas KS potential In small cities In suburbian areas Demographic growth In big city & suburbs Innovation in the periphery in the new economy: Suburbian role of rural areas + small cities reinforced by accessibility, connectivity, quality of place
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