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The making and unmaking of uneven development: the role of anchor firms in creating and overcoming industrial decline in East Germany

Year: 2025

Type: article

Abstract: This article theoretically explores the structural drivers of regional development traps by integrating core–periphery theories with industrial geography. It highlights how distinct industrial ecosystems form productive hierarchies. This is empirically illustrated through East Germany’s transformation after reunification. The destruction of anchor firms during privatization turned East German regions into Satellite Platform districts, reliant on externally headquartered firms for technology and investment and subject to Myrdalian backwash effects. Nonetheless, research-intensive manufacturing hotspots, like those in Jena, emerged through industrial policy supporting anchor firm functions. These findings underscore the importance of regional development strategies that cultivate regional anchor firms as key agglomerating forces.

Source: Journal of Economic Geography

DOI: 10.1093/jeg/lbaf055

Author: Christina Wolf

Institution: University of Hertfordshire

Language: English

Topic: Regional Economics and Spatial Analysis

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

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

Open Access status: hybrid

Estimated APC paid: $4,638