Networks and Regional Competitiveness: Towards a Transaction Cost Approach of Small-Scale Cooperation

A preoccupation with competition often dominates the study of governance. A focus on competition often unnecessarily precludes the possibility that regional institutions can suspend competition in certain areas and facilitate cooperation among potential rivals, thereby potentially contributing to their mutual success. In many ways companies cooperating through these types of networks have a greater degree of flexibility than firms which are forced to rely solely on hierarchies or markets for solutions to their problems. In order to fully understand how such networks work, this article first parses out differences in definitions of networks in order to understand how the type of network mentioned above actually differs from other uses of this term. Then it develops a theory of governance that goes beyond hierarchies and markets by demonstrating how this type of network can lead to reductions in transaction costs. This claim is illustrated on hand from examples of alternative forms of organization in Germany and Italy.definiciones de redes, para comprender cómo el tipo de redes mencionadas anteriormente se diferencian de manera real de otras aplicaciones que se le dan a este término. Luego, desarrolla una teoría de gobernabilidad que sobrepasa las jerarquías y los mercados, demostrando cómo este tipo de redes conllevan a la reducción de costos de transacción. Esta afirmación se ilustraa partir de ejemplos de formas de organización alternativas en Alemania e Italia