Agglomeration and Network Effects in the Spatial Development of Production

Abstract:

The aim of this paper is to describe a necessity of scientific background for creating a governmental industrial policy. Being made separately, an industrial policy may lose connection between governmental aims of development and reality. Moreover, scientific approach looks like a huge numbers of variations or models of isolated economic systems, which finally may predict economic behavior or give an opportunity to create forecasts for the future. As a consequences, an industrial policy need to be based on the theory, which is suitable for the Russian Federation. Nowadays, a vast majority of papers are negotiating an idea of improving endogenous regional development via increasing of agglomeration and urbanization effects.The main issue of the growth poles theory has an evident similarity with those theories which is based on industrial localization. In fact, this theory is widely spread in French regional planning experience and has already proved its potential.

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