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The territoriality of the network economy and urban networks: evidence from flanders

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  • Peter Cabus
  • Wim Vanhaverbeke

Abstract

As the network economy is continuing to develop, external economies are taking over internal economies and they are increasingly determining the entrepreneurial logic. To evaluate the territorial impact of this new logic a theoretical framework is developed based on a division of external economies between agglomeration economies that play a role in the economic functioning of urban areas and network economies that result from the networking among firms. The general picture of firms located in Flanders is one of intense networking within agglomerations, especially in their networking with suppliers, together with intense short and long distance relationships, where urban areas dominate the scene. A comparison between the urban networks introduced in spatial policy and the geography of firms’ networks, which has been investigated in this paper as the outcome of a large scale questionnaire, reveals that the nature of the firms’ networked territory can in fact not be translated in terms of urban networks but in terms of relationships between firms located in territories with dynamic industrial communities, and where cities, as a contextual place, play an important role.

Suggested Citation

  • Peter Cabus & Wim Vanhaverbeke, 2006. "The territoriality of the network economy and urban networks: evidence from flanders," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 18(1), pages 25-53, January.
    • Handle: RePEc:taf:entreg:v:18:y:2006:i:1:p:25-53
    DOI: 10.1080/08985620500466708
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    1. Houvenaghel, S. & Vanhaverbeke, W.P.M. & David, P.A. & Stalenhoef, G. & Van Hoye, E., 1997. "Economische aspecten en relaties van omliggende gebieden met het stedelijk netwerk van de Vlaamse Ruit," Research Memorandum 006, Maastricht University, Netherlands Institute of Business Organization and Strategy Research (NIBOR).
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    Cited by:

    1. Otto Raspe & Frank Van Oort & Martijn Burger, 2006. "Economic Networks and Urban Complementarities in the Dutch Randstad Region," ERSA conference papers ersa06p827, European Regional Science Association.
    2. Tian, Meng & Wang, Yiwei & Wang, Yiran, 2023. "High-speed rail network and urban agglomeration economies: Research from the perspective of urban network externalities," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    3. Frost, I. L., 2017. "Re-examining the relationship: urban economic performance and external economies," R-Economy, Ural Federal University, Graduate School of Economics and Management, vol. 3(3), pages 130-138.
    4. Jinliang Jiang & Zhensheng Xu & Jiayi Lu & Dongqi Sun, 2022. "Does Network Externality of Urban Agglomeration Benefit Urban Economic Growth—A Case Study of the Yangtze River Delta," Land, MDPI, vol. 11(4), pages 1-19, April.

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