Sector and territory

Abstract

In the context of global competition in products and production factors, the question of the location of firms and, in broader terms, of productive activity is being considered in a new light. Local territories, whose differentiating characteristics are a reflection of institutional variety, to be defined below, participate in a competitive contest to attract productive investments as "firms tend to become increasingly nomad." In tune to product cycles, technologies and division of labor, firms must also carefully consider the reasons for locating in one place or another. This, of course, depends on the cost of production factors at each location, but also, and more important, the opportunities to insert into a global industrial organization. Thus they must choose between being territorially anchored and nomadism. © 2007 Springer-Verlag Berlin Heidelberg.