Old Industrial Areas: A Theoretical Approach

The paper tries to put forward a hypothesis for the changing fortunes of old industrial areas. A regionalized version of the product cycle hypothesis is used as a link for various aspects of the lost dynamics of this type of region, as interpreted by different models of regional growth. It offers an endogenous explanation for the change from prosperous to 'old'. Old industrial areas are at the end of a regional 'life cycle', a stage of development that is marked by inflexibilities of the regions' supply and a lack of innovative ability. Some implications of this approach for policy implementation are considered.