Co-Evolution in Location Based Approaches to Local Economic Development
Co-evolution in local economic development refers to the tendency of firms to live symbiotically with each other in a city or region. Over a period of time, firms develop a network of suppliers, funding agencies, customers and workforce. Michael Gerber in his book Powerpoint ( )speaks of the need of companies to maintain a hovering position in an imaginary center point between these four competing forces, seeking to maintain a balancing act of keeping them all happy. If any one of them becomes dissatisfied and withdraws, then the company needs to rectify the situation or it will go out of business. Of course it is very expensive to redevelop a whole set of relationships in a new location or to restart an enterprise from the beginning if one should collapse.Gerber's unique mental image of the fragility of corporate existence gives a clue as to what people can do to use the "co-evolution" factor in the pursuit of local economic development efforts. The existence of such organizations as Chambers of Commerce with their networking and capacity building activities can be understood as addressing this aspect of development. Anything that fosters and improves the health of the co-evolutionary aspect of business life is all to the good in developing a healthy economy and keeping it healthy.
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