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The Economic Importance of Being Different: Regional Variations in Tastes, Increasing Returns, and the Dynamics of Development

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  • Joseph Cortright

    (Impresa, Inc.)

Abstract

A region’s distinctive social and cultural characteristics, measured by the behaviors of its residents, represent an important source of knowledge and innovation that can drive economic development. It is well-known that many industries are localized—concentrated in specific geographic areas. Agglomeration economies, a special case of increasing returns in space, cause positive feedbacks that promote further concentration. Although often ascribed to chance, some of the events that trigger the formation of localizations appear to be related to the distinctive behaviors of a region. An examination of data on consumer behavior suggests that there are significant, nonrandom differences in behavior among regions. In the case of the Portland, Oregon, metropolitan area, many of these behavioral differences are related to concentrations of local economic activity. Local tastes and preferences may be a source of the new knowledge and innovation that spawn industry agglomerations, a connection that has important implications for development policy.

Suggested Citation

  • Joseph Cortright, 2002. "The Economic Importance of Being Different: Regional Variations in Tastes, Increasing Returns, and the Dynamics of Development," Economic Development Quarterly, , vol. 16(1), pages 3-16, February.
    • Handle: RePEc:sae:ecdequ:v:16:y:2002:i:1:p:3-16
    DOI: 10.1177/0891242402016001001
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    References listed on IDEAS

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    Cited by:

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    2. Olivier Crevoisier & Delphine Rime, 2021. "Anchoring Urban Development: Globalisation, Attractiveness and Complexity," Urban Studies, Urban Studies Journal Limited, vol. 58(1), pages 36-52, January.
    3. Ann Markusen & Greg Schrock, 2006. "The Distinctive City: Divergent Patterns in Growth, Hierarchy and Specialisation," Urban Studies, Urban Studies Journal Limited, vol. 43(8), pages 1301-1323, July.
    4. Ann Markusen (ed.), 2007. "Reining in the Competition for Capital," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number ricc.
    5. Boeing, Geoff, 2017. "Neighborhood Change, One Pint at a Time: The Impact of Local Characteristics on Craft Breweries," SocArXiv v88hh, Center for Open Science.
    6. Markusen, Ann, 2007. "A Consumption Base Theory of Development: An Application to the Rural Cultural Economy," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(1), pages 1-15, April.
    7. Neil Reid & Ralph McLaughlin & Michael Moore, 2013. "The Ubiquity of Good Taste: A Spatial Analysis of the Craft Brewing Industry in the United States," ERSA conference papers ersa13p1026, European Regional Science Association.
    8. Leendertse, Jip & Schrijvers, Mirella & Stam, Erik, 2022. "Measure Twice, Cut Once: Entrepreneurial Ecosystem Metrics," Research Policy, Elsevier, vol. 51(9).
    9. Nesse, Katherine & Green, Timothy & Ferguson, Brooke, 2019. "Quality of Life in Potential Expansion Locations is Important to Craft Brewers," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(1), January.
    10. Ann Markusen, 2015. "Problem-driven Research in Regional Science," International Regional Science Review, , vol. 38(1), pages 3-29, January.
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    12. Pascal Ricordel, 2024. "Domestic or export: What is basic at the NUTS 2 regional level? A spatial endogenous regional growth model applied in the EU," Growth and Change, Wiley Blackwell, vol. 55(1), March.

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