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Glossary
(http://faculty.washington.edu/krumme/glossaries/spatorggloss.html)

This glossary will NOT be expanded or updated any longer. Go instead to: An integrated Economic Geography Glossary.

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Caveats: This Glossary will be developed only as a supplement to already existing glossaries, dictionaries and encyclopedias. Its inclusion in the Economic Geography home pages reflects the need for terminological clarity and conceptual rigor without which the development of conceptual frameworks, the formulation of research questions and hypotheses, the delineation of empirical categories and the development of theory are severely handicapped. Yet it is also recognized that terms have multiple conceptual uses and that differing definitions and explanations may be found in different sources.


Alternative Sources:

Glossary Sites
Brian Goodall: Dictionary of Human Geography. Penguin
R.Johnston et al., Dictionary of Human Geography
Grolier's Encyclopedia (also on UWIN, only for members of UW community)

Additional glossaries can be found in most Economic Geography texts.


Abilene Principle
(origin: Jerry Harvey) a description of a "group's inability to manage its agreement. Nobody wants to reach a particular destination ("Abilene"), but for fear of offending or contradicting each other, they all end up there." [Examples: Bay of Pigs, possibly: last staff meeting] (Senge et al., Fieldbook, p.403)
APPRECIATIVE THEORY (Nelson):
attempts to structure qualitative notions about the nature of the firm and its activities in a manner less rigorous but richer than at the formal level (Nelson, in Fuchs, ed., Opportunities in Industrial Organization , 1972, p.35)

APPROPRIABILITY PROBLEM (Arrow, 1962)
: Problems related to the ability of the firm to capture acceptable levels of benefits associated with the exploitation of its own technological innovations through confidentiality, patents etc.

BAYESIAN ANALYSIS:
Developed to provide a subjectively- rational framework for decision-making under uncertainty. A frequently recommended approach for decisions involving 'unique', non-repetitive decision- situations such as manufacturing location decisions or the selection of R & D projects. (Kay, 1979, p.39)

BOUNDED RATIONALITY (Simon, 1957):
"The capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world -- or even for a reasonable approximation to such objective rationality." .

Build
"refers to the act of putting together partially completed or finished pieces of a software product during the development process to see what functions work and what problems exist." (p.12)
"Doing daily builds gives rapid feedback to the project team about the product is progressing.... You always take a snapshot every day; it does not matter what happens... A weekly build gets taken come hell or high water, even if you know that the build two weeks behind the current one is still not stable..." (Cusumano & Selby, MS Secrets, p.268)

Bundling
term used by software companies to refer to the trend in Microsoft and other PC software firms "to bundle together multiple products into a smaller number of unified or integrated product offerings." (Cusumano & Selby, MS Secrets, p.444)

CARNEGIE SCHOOL OF ECONOMIC BEHAVIOR:
Set of ideas about the internal workings of firms developed by Herbert Simon, his colleagues, and those who were at one time or another at Carnegie-Mellon University) who were influenced by his ideas. A major concern of many of these writers is is organization theory and the analysis of a variety of intra-organizational problems. (Cohen, Cyert, March etc.)

COMPOSITE QUASI-RENT
(A.Marshall, 1890/1936, pp.453-4 and 626) = A quasi rent is the excess above the return necessary to maintain a resource's current service flow, which can be the means to recover sunk costs. Composite quasi- rent is that portion of the quasi- rent of resources that depends on continued association with some other specific, currently associated resources. Thus composite quasi rent is the amount those other currently associated resources could attempt to expropriate by refusing to pay or serve, that is by 'holdup'. (JEL March 1988, p.67)

CONTINGENCY THEORY
(of organizational structure and behavior) regards the design of an effective organization as necessarily having to be adapted to cope with the 'contingencies' which derive from the circumstances of environment, technology, scale, resources and other factors." (Child/Ranson et al.)

Cross-leveling of Knowledge
"Organizational knowledge creation is a never-ending process that upgrades itself continuously."... Any "new concept which has been created, justified, and modeled, moves on to a new cycle of knowledge creation at a different ontological level. This interaction and spiral process... takes place both intra-organizationally and interorganizationally." (Nonaka & Takeuchi, The Knowledge-Creating Company, p.88)

Decision Support Systems (DSS)
"A computer based system that helps the decision maker utilize data and models to solve unstructured problems." (Sprague & Carlson, 1982; quoted after Grimshaw, p.97)

DISEMBODIED TECHNOLOGICAL CHANGE:
"alters the production function without requiring gross investment to carry it into place" (Thomas, 1975)

Economies of Flexibility:
The advantages accruing to a producer with many plants of different sizes in allocating increases or decreases in operations to that plant whose size is such as to handle the total output change of the producer most efficiently. (Nemmers)

ECONOMIES OF MASSED RESOURCES (E.A.G.Robinson)
Those scale economies "which flow from the fact that (the firm) is large, employing numbers of workers, with a large management, buying materials ... on a large scale, raising capital on a large scale, and often able to use and keep busy large units of moderately versatile equipment on a variety of comparatively similar jobs." (as different from "standardization economies")

ECONOMIES OF SCOPE:
Definition would depend on definition of "scope"; often used in the context of product mix or the extent of vertical integration.

Unit costs decrease as variety and flexibility in production increase. (Quinn, Intelligent Enterprise, p.25)

Edge Cities:
cities at the outskirts of large urban centers
ENTREPRENEUR
(Schumpeter, The Theory of Economic Development, pp.74ff. 1934/ Galaxy 1961,):

EXPORT PLATFORM:
used to describe the role of a host country as a production location designed to serve international markets, possibly including the home market of the parent firm. (see Dicken, Global Shift, pp.154 & 204)

EXTERNAL ECONOMIES
(Marshall/Stigler, 1951): "Economies outside the reach of the firm and dependent upon the size of the industry, the region, the economy, or even the whole economic world."

FLEXIBLE SPECIALIZATION:
(Piore and Sabel, 1984, p.17) Company- level strategy of "permanent innovation", "accommodation to ceaseless change" (rather than to control it). "This strategy is based on flexible -- multi-use -- equipment, skilled workers, and the creation through politics, of an industrial community that restricts the forms of competition to those favoring innovation."


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GARBAGE CAN MODEL OF ORGANIZATIONAL CHOICE:
Probably the most extreme view (namely that of organizational anarchy) of the Carnegie School. Organizations operate on the basis of inconsistent and ill-defined preferences; their own processes are not understood by their members; they operate by trial and error; their boundaries are uncertain and changing; decision-makers for any particular choice change capriciously. To understand organizational processes, one can view choice opportunities as garbage cans into which various kinds of problems and solutions are dumped. The mix of garbage depends on the mix of labeled cans available, on what garbage is currently produced and the speed with which garbage and garbage cans are removed. (Cohen, March and Olsen in: ASQ 17(1), 1972, 1-25. [see also Disconnection Argument]

Hypertextually organized book:
Such a book may have the following introduction: This is a book designed "to reward browsing in any direction. Cross-references, for example, point out meaningful links. Zoom in where you feel engaged. Here are some starting points: ...." (Senge et al., Fieldbook, p.7)

INCUBATOR HYPOTHESIS:
suggests that some locations, especially cities, serve to 'incubate' new firms, which may subsequently move to other locations.

Independent Sector
See: Third Sector

Indwelling
A term M. Polanyi used to suggest that "human being create knowledge by involving themselves with objects, that is, through self-involvement and commitment..." (Nonaka & Takeuchi, The Knowledge-Creating Company, p.60)

INFORMATION IMPACTEDNESS (Williamson):
A derivative condition that arises mainly because of uncertainty and opportunism, though bounded rationality is involved as well. It exists when true underlying circumstances relevant to the transaction, or related set of transactions, are known to one or more parties but cannot be costlessly discerned by or displayed for others." (Williamson, Market and Hierarchies, p.31) Particularly significant when there are sellers, buyers and intermediaries.

Information Literacy: [alternative definitions]
Implicit in a full understanding of information literacy is the realization that several conditions must be simultaneously present. First, someone must desire to know, use analytic skills to formulate questions, identify research methodologies, and utilize critical skills to evaluate experimental (and experiential) results. Second, the person must possess the skills to search for answers to those questions in increasingly diverse and complex ways. Third, once a person has identified what is sought, be able to access it. (p. 314)
Lenox, Mary F. and Michael L. Walker. (1993) Information literacy in the educational process. The Educational Forum. 57(2):312-324.

INFORMATIONAL ASYMMETRY

INNOVATION
(Schumpeter): the setting up of a new production function... innovation combines factors in a new way .... or carries out new combinations. (Thomas, 1985)

Intelligent Enterprise
Such enterprises are "converting intellectual resources into a chain of service outputs and integrating these into a form most useful for certain customers." (Quinn, p.213)

Interoperability
Usually referring to the computational and organizational facets needed "for coupling models, knowledge, functionality, and human activities" within and between organizations (such as "across scientific disciplines and within different branches of individual disciplines"). (Quoted and adapted from NSF 1998 Website on "Knowledge Networking")

Just-in-Time
(kanban)
"The idea behind just-in-time cam from a visit to the United States by Taiichi Ohno of Toyota Motors in the 1950s. Ohno was far more impressed with America's giant supermarkets than with its automotive plants. He later recounted his surprise at the speed and efficiency by which the supermarkets kept shelves stocked with exactly the products customers desired in just the amount needed." (Rifkin, End of Work, p.99)

Kanban
See: Just-in-Time

Karoshi
a Japanese expression for "a condition in which psychologically unsound work practices are allowed to continue in such a way that disrupts the worker's normal work and life rythm leading to a buildup of fatigue... and a chronic condition of overwork... finally resulting in a fatal breakdown." (Source: Rifkin, End of Work, p.186)

Knowledge Conversion
"Our dynamic model of knowledge creation is anchored to a critical assumption that human knowledge is created and expanded through social interaction between tacit knowledge and explicit knowledge." (Nonaka & Takeuchi, The Knowledge-Creating Company, p.61)

KONDRATIEV WAVES or CYCLES: (Kondratiev, 1926)
refers to "long waves" lasting approx. 50 years, each being "associated with particularly significant technological changes around which other innovations... cluster and ultimately spread through the economy" (Dicken, Global Shift, p.20)


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Lean Production
"combines the advantage of craft and mass production, while avoiding the high cost of the former and the rigity of the latter." (from: The Machine that Changed the World, quoted after Rifkin, End of Work, p.96)

LEARNING CURVE EFFECTS:
cost reductions resulting from skill improvements based on repetitive (usually production related) experiences.

Learning Organization
"an organization where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together." (Senge, The Fifth Discipline, p.3)

Mental Models
One of Senge's five learning disciplines for the learning organization: "reflecting upon, and continually clarifying, and improving our internal pictures of the world, and seeing how they shape our actions and decisions." (Senge et al., Fieldbook, p.6)

MESO-ECONOMIC SECTOR (Stuart Holland)

MICRO-MICRO THEORY:
concerned with the "study of what goes on inside the black box" (i.e. the artifact of classical micro-economic theory of the firm). See Leibenstein, Journ. of Econ.Lit. June 1979, p.478.

Milestones
Subprojects into which a project is broken up (to be able to monitor development progress and adhere to deadlines.
milestone stabilizations: while there may be some freedom to make changes to the design of an evolving product, there is a need to adhere to intermittant milestone deadlines. [see Cusumano & Selby, p.415)

MORAL HAZARD
(In the finance literature, often called "post-contractual opportunism", JEL March 88, p.68)

OPPORTUNISM (Williamson):
a variety of self-interest seeking but extends simple self-interest seeking assumption to include self-interest seeking with guile thereby making allowance for strategic behavior. (Williamson, 1975, p.26; 1986, p.12 5); [examples: strategic manipulation of information or misrepresentation of intentions; false or empty, i.e. self-disbelieved, threats or promises, Goffman, 1969] has profound implications for choosing between alternative contractual relationships. Opportunistic behavior contrasts with stewardship behavior which involves a trust relation in which the word of a party can be taken as his bond. (1975, p.26)

ORGANIZATION SET (Evan, 1966):
Conceptualization in inter-organizational theory. A "focal organization" interacts with other organizations in its environment, i.e. with its organization set. The relations between focal organization and organization set are conceived as being mediated by (1) the role sets of boundary personnel, (2) flow of information; (3) flow of products and services; (4) flow of personnel.

ORGANIZATIONAL SLACK
(Cyert & March, Behavioral Theory of the Firm, 1963)

OUTSOURCING:
international sourcing, the allocation of particular (usually labor- intensive) operations in a transnational corporation's internally integrated vertical production system to its own overseas affiliates; (Dicken, Global Shift, p.188) as different from international subcontracting which implies a relationship between independent firms.

Pathologies in large-scale distributed knowledge systems
"such as: malicious agents, viruses, overload, "knowledge storms"." (NSF 1998 Website on "Knowledge Networking") [these pathologies are part of "Processes and Dynamics of Distributed Intelligence"]

Personal Mastery
One of Senge's 5 principles for the learning organization: "learning to expand our personal capacity to create the results we most desire, and creating an organizational environment which encourages all its members to develop themselves toward the goals and purposes they choose." (Senge et al., Fieldbook, p.6)

PLASTICITY
(Alchian & Woodward) = "we call resources and investments "plastic" to indicate that there is a wide range of discretionary, legitimate decisions within which the user may choose." [JEL March 88, p.69] [Webster/Oxford: power to adapt itself to altered circumstances; capacity for being molded or undergoing a permanent change in shape; ability to vary in development; ductility and malleability are closely related [a more general term than footlooseness? (= locational plasticity?) but of course also: locational adaptability)] Thus: (1) (rel. large) range of choices (2) (rel. great) ability to adapt (Term also used by A.Marshall, see page heading pp.533/ 535)

PROSUMER (Alvin Toffler, Third Wave)

QUINARY (economic) ACTIVITIES:
A further disaggregation of that part of the sector which is INFORMATION oriented into QUATERNARY activities (referring to activities which involve the collection, recoding, arranging, storage, retrieval, exchange, and dissemination of information) and quinary activities which emphasize the creation, rearrangement and interpretation of new and old ideas and information as well innovation of methods in data interpretation .

ROUTINE
(decisions or activities): General term for all regular and predictable behavioral patterns of firms. "We use the term to include characteristics of firms that range from well-specified technical routines for producing things, through procedures for hiring and firing, ordering new inventory, or stepping up production of items in high demand to l~policies regarding investment, R&D or advertising, and business strategies about product diversification and overseas investment. In our evolutionary theory, these routines play the role that genes play in biological evolutionary theory. " (Nelson an Winter, p.14)

SAP
Systems, Applications, Programs = A presently hugely popular German Management Organization System and software.

Scope Economies
See: Economies of Scope

SEGMENTATION
(or the "SEGMENTED ECONOMY", Taylor and Thrift, 1983 +) a segmented pattern of business organizations where every segment is "conceived as a number of organizations, with similar characteristics which are both the cause and the effect of their membership of particular economic niches."

SEGMENT REPORTING/DISCLOSURE:
The reporting of information by (complex) corporations with which the user can judge the performance of particular, more or less narrowly defined, subdivisions of a corporation. (Scherer, 1979)

Shared Vision
One of Senge's five learning disciplines for the learning organization: "building a sense of commitment in a group, by developing shared images of the future we seek to create, and the principles and guiding practices by which we hope to get there." (Senge et al., Fieldbook, p.6)

Shunk Works (Strategy of ...)
"small groups that quietly pursue new ideas out of the organizational mainstream" (Senge, The Fifth Discipline, p.230).

STAKEHOLDER
(Rhieman, Ackoff): Concept in a socially oriented open-systems interpretation of the organization. Stakeholders are all those claimants inside and outside the firm who have a vested interest in the organization or any of its specific problems and solutions. (Mason and Mittrof, 1981)

STALEMATE IN TECHNOLOGY
(Das technologische Patt, 1975/79) Title of a book by G.O.Mensch; suggests a long-term cyclical nature of technological innovation and the arrival of another stagnation.

Systems Thinking
The last of Senge's five learning disciplines of his learning organization: "A way of thinking about, and a language for describing and understanding, the forces and interrelationships that shape the behavior of systems... helps us to see how to change systems more effectively, and to act more in tune with the larger processes of the natural and economic world." (Senge et al., Fieldbook, p.6)


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TASK ENVIRONMENT:
Those elements or inputs in an organization's environment which bear potential ly on goal setting and on goal attainment within an organization . [William Dill, 1962]

Team Learning
One of Senge's five learning disciplines for his "learning organization": transforming conversational and collective thinking skills, so that groups of people can reliably develop intelligence and ability greater than the sum of individual members' talents." (Senge et al., Fieldbook, p.6)

Technology Multipliers
Certain "classes of technological innovation can induce a matrix of change and progress in other sectors that are thousand times the Keynesian multipliers of the investment in the original innovation... Relatively tiny investments in innovating the first microprocessors, radios, spreadsheets, hybrid corns, personal computers (PCs), antibiotics, the Internet, and scientific selective breeding have created economic multipliers millions of times greater than their original investments." (Quinn et al., Innovation Explosion, p.37)

TECHNOLOGICAL PARADIGM:
Model and a pattern of solution of selected technological problems, based on selected principles derived from natural sciences and on selected material technologies (Dosi/Thomas); also used: "technological regime" (Nelson & Winter); "technological imperatives" (Rosenberg);

TECHNOLOGICAL TRAJECTORY:
The movement of multi- dimensional trade-offs among technological variables that the paradigm defines as relevant. Progress can be defined as an improvement of these trade-offs. One could imagine the trajectory as a 'cylinder' in a multidimensional space (Dosi); or: a pattern of "normal " problem- solving activity within a technological paradigm . (Thomas) Individual firms tend to have their own PATHWAY within this aggregate trajectory (Thomas); "natural trajectory" Nelson and Winter, 1982; "focussing device", Rosenberg, 1982.

TECHNOLOGICAL TRANSITION:
A state in which firms may find themselves "whose technology has begun to be constrained by its practical limits and whose rate of economic performance consequently begins to slow down. Such firms, if they focus their R&D activities completely on improving the performance of current technology, may face disaster. . . " (Thomas)

Teleport
The centerpiece of wired-city planning. Teleports, in general, "include an international communications "gateway", a metropolitan area network for distributing advanced information services and surrounding 'intelligent' building complexes." (Hepworth, p.197)

THIRD ITALY:
Central and northeast Italy -- in the the vicinity of Bologna, Florence, Ancona and Venice -- symbol for new industrial dynamism, a decentralized network of small firms located in small and medium-size cities has managed to innovate and develop products that compete successfully with those of northern European producers . (in contrast to the old Milan-Turin-Genoa industrial area and the less developed South) [Niles Hansen, in McKee and Bennett, eds., Structural Change in an Urban Industrial Region, 1987, p.19]

Third Sector
"also known as the independent or volunteer sector, is the realm in which fiduciary arrangements give way to community bonds, and where the giving of one's time to others takes the place of artificially imposed market relationships based on selling oneself and one's services to others." (Rifkin, End of Work, p.239)

Threshold Firm
In the Canadian context, a medium-sized, Canadian-owned firm which is potentially or actually in transition between the state of a small-medium enterprise (SME) and a large enterprise. It is the target of policies for science, technology and industry... and (in Canada) likely to belong to the electronics, machinery, chemical, transport equipment or petroleum and coal products industries.... (Steed, Guy P.F. Threshold Firms: Backing Canada's Winners. Science Council of Canada, 1982, p.20)

TRANSACTION COSTS:
The lower the transaction costs associated with a particular contractual assembly of inputs, the more likely self-interested individuals will choose that method of organizing production. (K.Leffler). The limited success of the transaction costs approach may be due to the amorphous nature of these costs (Leffler, 1989)

Treuhandanstalt
Privatisation Agency selling off East German companies between 1990 and 1995. In order to attract investors it paid for some or all of the costs of restructuring and environmental clean-up. Often the price of companies sold was reduced considerably in exchange for job and investment guarantees. By September 1994 the Treuhandanstalt had accumulated debts worth DM 183bn. As of the beginning of 1995 these debts were taken over by the Erblasttilgungsfond. These debts are not included in the official federal budget deficit figures.

Trickle-down Technology
"the Notion that the dramatic benefits brought by advances in technology and improvements in productivity eventually filter down to the mass of workers in the form of cheaper goods, greater purchasing power, and more jobs..." (Rifkin, End of Work, p.15)

TRUNCATION:
Concept associated with DEPENDENCE in a branch plant economy (see Dicken, Global Shift, pp.376ff . also in Hayter, in Area, 1982, pp.277ff.) A term first given widespread currency with the Canadian Gray Report, in which "subsidiaries and branch plants, which rely on their foreign based parent company for various services and functions and whose autonomy is circumscribed by head-office dictates, were declared to be truncated firms." ( Hayter )

TURBULENT ENVIRONMENTS:
Organizational environments in which there are dynamic processes arising from the field itself which create significant variances for the component systems. Such dynamic field processes may emerge , e . g ., as an unplanned consequence of the actions of the constituent systems [erosion, overfishing, overcutting]. These fields are so complex so richly textured, that is difficult to see how individual systems can, by their own efforts, successfully adapt to them. [Emery and Trist]

Value Chain
refers to a business as a "collection of interdependent activities, which in turn, form part of a continuous system that stretches back to suppliers and forward to channels and customers... Using the value chain framework, Porter suggests advantage can be captured through ... improvement or reorganization of these value activities." (van den Bosch & de Man, eds., p.10)

VERTICAL INTEGRATION:
Two adjacent production stages are said to be vertical ly integrated when they are brought under common ownership and control. "Under vertical integration, the intermediate product is traded within the firm. If the two stages share the same production site than the integration occurs within the plant; otherwise it occurs between plants. When adjacent stages are located in different countries, vertical integration leads to international, intra-firm trade. " (M. Casson, 1986)

Vertical Mixing
"ensures a variety of different ages, experience sets, and skills on design teams" (Quinn et al, Innovation Explosion, p.164)

X-Efficiency / X-Inefficiency (Leibenstein):
Managers are merely x-efficient due, to (1) selective rationality; (2) individual inadequacies; (3) discretionary effort; (4) pervasive inertia; (5) organizational entropy; see Leibenstein, JEL June 1979, pp .484ff .


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