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Territorial capital, regional identity and

international specialization

Territorial capital , defined in most of the literature reviews and articles as a system of the
territorial assets of economic, cultural, social and environmental that ensures the potential
development of places. The notion, that part of a persons identity that is routed, not only by the
contry but also in the region they live is defined as a regional identity. International
specialization refers at the specification of each country regarding the economy.
The author Balasz Toth states that the concept of territorial has already become a major field
of interest, although the topic does not have a long tradition in economic and regional science.
(Tth, 2015).
According to most authors, the concept of territorial capital was first mentioned in a regional
policy context, proposed by the Organization for Economic Co-operation and development
(OECD), then the expression was reiterated by DG Regio of the Commission of the European
Union. The first definition reveals that each region has a specific territorial capital that is
distinct from that of other areas and generates a higher return for specific kinds of investments
than for others, since these are better suited to the area and use its assets and potential more
effectively (Tth, 2015)
Brasili believes that territorial capital is a set of material and immaterial elements are available
for territorial needs and that these elements can be strong points on real ties according to the
elements which are taken into consideration and involves all the elements which are part of a
territory wealth in order to find out specific elements which can be put in their use. (Brasili, n.d.)
Perruca defines the territorial capital as a system of territorial assets of economic and he
analyzes the relationship between territorial and economic growth .The findings emphasize the
role of some endogenous factors in explaining the differentiation of regional growth patterns.
(PERUCCA, 2014)
Territorial capital appears to be a useful concept. It encompasses a wide variety of territorial
assets, both tangible and intangible, of a private, public or mixed nature. Also they may be
physically introduced, supply by history or or derive from natural endowment. (Camagni &
Capello, 2013)
The most comprehensive definition about the territorial capital and its assets is given by Basili in
her article. The territorial capital is composed by:

Human capital- the variables considered in order to measure the supply of human capital
of regional economies are: rate of enrollment in upper secondary education, rate of early
leavers from upper secondary education.
Cognitive capital- dynamic context of generalized growth with regards to the regions
which are mostly endowed with the asset of territorial capital
Social capital- importance of active of local communities, social capital is an intangible
asset with relevant effects on the well functioning of the social and political life of a
Infrastructural capital- support system created by people to carry out economic activities
Productive capital provides a measure of the territorial productive structure
Environmental capital- territorial development must aim to preserve natural resources
Relational capital- the sum of all relationships developed by local actors
Settlement capital- housing characteristics and the evolution of human presence (Brasili,

Capello and Camagni states that territory is a better term that space when referring to the
following elements such as: a system of localized externalities, a system of localized proximity
relationships which constitute a capital, a system of cultural elements and values and a system
of rules and practices.
Also the different categories of territorial are:

Public goods and resources

Intermediate, mixed rivalry and tangible good
Private fixed capitals
Social capitals
Relational capitals
Human capitals
Agglomeration economies
Connectivity and receptively cooperation networks
Relation private goods (Camagni & Capello, 2013)

Its important to mention the four large classes of territorial capital elements on which
attention should be given in a policy context : infrastructure capital and settlement structure,
cognitive capital, cultural and identity capital, social and relational capital (AFFUSO &
CAMAGNI, n.d.)
In his paper Rota defines the general conditions enabling the shift from anchorage to territorial
embedment are: local networking, collective action, strategic commitment. When this conditions
are fulfilled, the firm is supposed to be territorial embedded. (Rota, 2010)
Johansson and Quigley are saying that the the modern analysis of economic relationships in
urban space emphasises the importance of agglomeration and that the concept of networks in

space has undergone a parallel treatment, as modern methods have made the efficiency gains
from networks quite explicit. (Johansson & Quigley, 2004)
There are 2 complementary components in explaining the geographical effects of external
economies. First of all there are agglomeration economies fuelled by geographical proximity.
Secondly there are network economies, as a manifestation of external economies linked with the
network itself and nourished by territorial competition and competencies. (CABUS, 2006)
The model used by Addagio and Camagni explains the differential growth rates of provinces
with respect to their region according to territorial specificities by transferring the regional level
to the province level. The territorial capitals in the model are: infrastructure capital and
settlement structure of regions, sectorial and natural specificities captured by the share of tertiary
activity , cognitive capital, quantity and quality capital, social and relational capital. (AFFUSO &
CAMAGNI, n.d.).
Pompili and Mortinoia use a methodology that aims at explaining articulated, complex and
even latent phenomena such as productivity entrepreneurship, the vocation of an area its
atractiviness. As a conclusion of this methodology theyve discovered that the whereas the
relationship between the human capital and economic growth is theoretically well established
thus is not s for other forms of territorial capital. (Pompili & Martinoia, 2011)
FDI(Foreign Direct Investment) plays a relevant role in economic development process of
host economies through several channels , which go far beyond the increase in the local
endowment of financial and physical capital. The role of territorial capital is increasingly
recognized in its importamnce of the effectiveness of regional policies. (Casi, 2012)
The present post crisis context of advanced economies is deeply characterized by a relaunch of
public interventions in the economic field in the form of some policies such as rescrue policies
short terms, anti-cyclical policies, long term structural policies. Also the two main field in
policies are aggregate and local known as demand policies and regionalized known as supply
policies. (AFFUSO & CAMAGNI, n.d.)
Copus states that the regional policies, both natural and European , seek to reduce regional
disparities in economic activity and income. (Copus, 2001)
Regional integration was one of the most spontaneous responses to globalization ,to the loss
of national borders and to international trade opening, for enforcing its position in the global
stage. Secondly, different types of regionalization are useful to understand the relation among
states and their perspectives and the actual macro-regions in the world allow a new analysis
regarding the process of transition to development of many countries (Bordignon, 2010)
The concept of proximity is defined by Tremblay as a key for determining what
socioeconomic actors mean by local space or local cluster. Proximity can be: physical proximity,

relational proximity, technological proximity and cultural proximity. As a conclusion we can say
that the different forms of proximity define the many scales of action firms thus circumscribing
their innovation territory. (TREMBLAY, 2009)
Verini tried to explore the territorial identity of Italian provinces, where the latter has been
conceptualized as a particular element of the broader concept of territorial identity. In order to do
that, territorial identity has been articulated in 4 mains components: social capital, social-cultural
identity, spatial organization of activities and governance structure. (Veneri, 2011)

AFFUSO, A. & CAMAGNI, , n.d. Territorial capital and province performance in the
Latin Arch: an econometric approach.
Bordignon, M., 2010. Regional Proximity Factor: An Advantage or a Disadvantage for
Development? Transit Stud Rev , 17, pp.35673.
Brasili, C., 2012. The Impact of the Economic Crisis on the Territorial Capital of
Italian Regions.
Brasili, C., n.d. Local and Urban Development in the European Union.
CABUS, P., 2006. The territoriality of the network economy and urban networks:
Camagni, R. & Capello, , 2013. Regional Competitiveness and Territorial Capital: A
Conceptual Approach and Empirical Evidence from the European Union. Regional
Studies, 47(9), pp.1383-402.
Casi, L., 2012. Foreign Direct Investment and Growth:the role of regional territorial
Copus, A., 2001. From Core-periphery to Polycentric Development:Concepts of
Spatial and Aspatial Peripherality. European Planning Studies, 9(4), pp.539-52.
Johansson , & Quigley, J., 2004. Agglomeration and networks in spatial economies.
Papers Reg. Sci., 83, pp.165-76.
PERUCCA, G., 2014. The Role of Territorial Capital in Local Economic Growth:
Evidence from Italy. European Planning Studies, 22(3), pp.53762.

Pompili, T. & Martinoia, M., 2011. Building synthetic indicators for aspects of
territorial capitals. European Regional Science Association .
Rota, F., 2010. The territorial embedment of global industrial networks. Theoretical
insights and evidences from foreign MNCs affiliates in Turin (Italy).
Tth, B., 2015. Territorial Capital: Theory, Empirics and Critical Remarks. European
Planning Studies, 3(7), pp.1327-44.
TREMBLAY, D.-G., 2009. The Film and Audiovisual Production in Montreal:
Challenges of Relational Proximity for the Development of a Creative Cluster. The
Journal of Arts Management, Law, and Society, 39(3).
Veneri, P., 2011. Territorial Identity in Italian NUTS-3 Regions. Capitale Territoriale:
scenari quali-quantitativi di superamento della crisi economica.