Dynamic Disequilibrium Approaches to Regional Economic Development
Dynamic dis-equilibrium refers to the obsolescence of products and the processes needed to make those products. This dynamic shift over time can be capitalized on by the alert region, both in terms of stopping losses and attracting businesses to a region which are about to leave another region. Sometimes a new product cycle is starting fresh and looking for unspoiled territory. Two dynamics often provide leads for where to look for such companies:
- Product Life Cycles: Products which are initially produced in a region other than in the one they are consumed in, often end up being produced locally and even turn around and export back to the originating region owing to cost shifts over time.
- Regional Life Cycles: Older regions as a whole become obsolete sometimes owing to the agglomeration effect, so that an entire symbiotically related group of businesses "grows old together".
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