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Regional assets and value capture trajectories: the growth and demise of an Australian automotive supplier

Year: 2022

Type: article

Abstract: This article examines the relationship between regional assets and value capture with a focus on knowledge and intellectual property assets. It traces, over an extended time horizon, the upgrading and later downgrading path of a single supplier firm in a peripheral location to illuminate the degree to which value capture trajectories are shaped by the power geometries of regional, network, and macroeconomic forces. The analysis suggests that functional upgrading does not insulate firms from the risk of downgrading and exclusion, but rather that it changes the nature of their vulnerabilities. In this case, functional upgrading was associated with ownership changes, a progressive disassociation of intellectual property assets from their underlying regional knowledge resources, the relocation of production activities to hubs in global networks, and eventually to the redirection of captured value from the region. The analysis contends that regional assets are assets that capture value in the region, and that when knowledge-based regional assets are created by interactions within firms, firms should be considered as regional assets. The conclusion considers the implications for regional development.

Source: Review of International Political Economy

DOI: 10.1080/09692290.2022.2127119

Authors: Sally Weller, Alistair Rainnie

Institution: University of South Australia

Language: English

Topic: Regional Development and Innovation

Subfield: Development

Field: Social Sciences

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Decent work and economic growth

Open Access status: hybrid

Funder: Australian Research Council