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1 Year PhD Presentation


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At Aalborg University PhD students are required to give a 1 Year progress report. A professor (different from supervisor) acts as opponent. A discussion about the project usually follows with other professors and students. In my case there were 15 people and I obtained critical feedback for my project. I welcome any idea.

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1 Year PhD Presentation

  1. 1. Entrepreneurship, “Experience Economy” and Economic Development of Frederikshavn First Year Presentation L. Carlos Freire Dept. of Development and Planning June 3 rd 2009
  2. 2. <ul><li>“ There are some sorts of industry, </li></ul><ul><li>even of the lowest kind, </li></ul><ul><li>which can be carried </li></ul><ul><li>on nowhere but in a great town” </li></ul><ul><li>Adam Smith (1776) </li></ul><ul><li>“ Could it be possible, </li></ul><ul><li>that one of the highest industries, </li></ul><ul><li>could be better carried on </li></ul><ul><li>in a provincial town?” </li></ul><ul><li>Freire (2008) </li></ul>N= Not shown
  3. 3. Agenda <ul><li>Background </li></ul><ul><ul><li>Geographic area of analysis </li></ul></ul><ul><ul><li>What’s going on in Frederikshavn? </li></ul></ul><ul><li>Problem formulation & Methodology </li></ul><ul><li>Theories </li></ul><ul><ul><li>” Experience Economy” overview </li></ul></ul><ul><ul><li>Entrepreneurship </li></ul></ul><ul><ul><li>Local Development </li></ul></ul><ul><ul><li>Innovation System </li></ul></ul><ul><li>Pilot Study: Lysfestival i Frederikshavn </li></ul><ul><li>Plan </li></ul><ul><ul><li>Courses & External Collaboration </li></ul></ul><ul><ul><li>Milestones & Papers </li></ul></ul><ul><li>Final remarks </li></ul>N
  4. 4. Final Goals <ul><li>For Frederikshavn </li></ul><ul><li>Analyze the entrepreneurial dynamics in the Experience Economy </li></ul><ul><li>Suggest effective economic policies </li></ul>
  5. 5. Project specification Original name: “ Entrepreneurskab, oplevelsesøkonomi og regional udvikling” Timeline: Spring 2008 – Spring 2011 Funded by: N
  6. 6. <ul><li>Geographical area: </li></ul><ul><li>2007 Kommunalreformen merged </li></ul><ul><li>Frederikshavn, Skagen and Sæby  </li></ul><ul><li>Inhabitants 62.525 ( 2009 ) </li></ul><ul><li>. </li></ul>
  7. 7. Municipality’s main towns 2/3 of municipality population (population) Frederikshavn (23.636 ) Skagen (9.380) Sæby (8.672) N
  8. 8. Problems of the Municipality <ul><li>Periphery </li></ul><ul><li>Frederikshavn city “boomed” when the train arrived there in 1871. The industrial era is bygone. </li></ul><ul><li>Population decreasing since the 1980’s </li></ul><ul><li>1999 shipyards closed </li></ul><ul><li>Duty-free ferries were banned (tourism decreased) </li></ul>
  9. 9. Transformation of Frederikshavn Tordenjskyold Festival Bangsbo Fort Museum, Arena Nord, Musikhus, others… Palmstranden since 2004 Lysfestival 2004, 2006, 2008, 2010? Palm City (Private) under construction Next dates, 26-28 Juni!!
  10. 10. Bill Clinton, 2006 Al Gore, 2007 Concert of Bryan Adams, 2006 Unique Visits
  11. 11. <ul><li>“ Frederikshavn will be the first medium-sized city in the world to be exclusively supplied (…) with renewable energy sources.” Udenrigsministeriet, 2007 </li></ul>The turbines for the 2015 Plan This project perhaps it’s not that linked to the experience economy, however it demonstrates great creativity and innovation skills from Frederikshavn! If this project is achieved it will certainly improve the community. N
  12. 12. What’s going on in Frederikshavn?
  13. 13. <ul><li>Report 2005 (69 pages) </li></ul>The Region promoting the Experience Economy ApEx - Center for anvendt oplevelsesøkonomi was planned in 2005, opened in 2006. 5 million DKK until 2010 N
  14. 14. The municipality embraces the Experience Economy Side 8 The term “oplevelsesøkonomi” is used 6 times, and the term oplevelse other 7 times Latter motto: “ Fra værfstby til værstby”
  15. 15. Academics commend the “experience economy” in Frederikshavn “ Small cities and peripheral places face economic stagnation: Traditional workplaces close, firms relocate to low wage countries, (and) citizens move to bigger cities ” (Lorentzen, 2007). However “ in several smaller Danish towns the experience economy has become key to survival. One example is Frederikshavn (… ) within only a five year period Frederikshavn has been able to brand itself into the minds of most Scandinavians as an attractive and pleasant place to live and to visit. (…) Research is needed to explain this transformation .” (Lorentzen, 2008)  “ Triggered in 1999 by a sudden local economic crisis, Frederikshavn entered a process that reinvented its ‘mental frame’ and transformed not only its urban development, but also its identity, image, and governance towards an experience economic and entrepreneurial profile.” (Therkildsen et al. 2009) They’re from my Department. In total in AAU there are 14 groups who work or have worked with some aspects of the “experience economy”. Source: N Both published at Journal of European Planning Studies June 2009
  16. 16. Problem formulation <ul><li>1. Does the “experience economy” bring new entrepreneurial dynamics that could affect Frederikshavn’s development? </li></ul><ul><li>Who are the entrepreneurs in the experience economy? </li></ul><ul><li>How are they different from other industries (or places)? </li></ul><ul><li>How do they work? Networks and resources </li></ul><ul><li>How can the experience economy be measured? </li></ul><ul><li>What is the outcome of applying the experience economy? </li></ul><ul><li>2. How can the municipality of Frederikshavn implement/adapt the “experience economy” in its economic policy making? </li></ul><ul><li>In case it is beneficial, how can a municipal government support the experience economy? If the experience economy has mixed or negative results, how could they reorient their strategy? </li></ul>
  17. 17. Methodology Case Study (Yin, 1972; Flyvbjerg, 2006) My project is in an interdisciplinary field, with multifaceted problems.
  18. 18. Methodology <ul><li>Qualitative research </li></ul><ul><li>50 informants </li></ul><ul><ul><li>People in projects related to the exp. econ. </li></ul></ul><ul><ul><li>People involved in creating economic/business policy </li></ul></ul><ul><ul><li>Meetings with Reference Group </li></ul></ul><ul><ul><li>Direct observation </li></ul></ul><ul><li>Quantitative research </li></ul><ul><ul><li>Danmark Statistiks. </li></ul></ul><ul><ul><li>Danish IDA ( Integrated Database for Labour Market Research, 1980-2004 ) 3.259 persons -wage earners (38%) & entrepreneurs (31.5%)- </li></ul></ul><ul><ul><li>Survey conducted on Danish entrepreneurs & wage earners (2008) </li></ul></ul>
  21. 21. Explorative Integration as Process N
  22. 22. Aprox. 40% on literature review, 35% of qualitative research and 25% of quantitative Research Time Spring 2011 Deliver PhD Thesis X   Oct. 2010 follow up Lysfestival     Summer 2010 To be determined X   June 2010 follow up Tordenskjold Fest. X   May-June 2010 New Bangsbo Museum X   January-April 2010 Interviews in another research enviroment   X Sept.-Dec. 2009 Statistics on entrepreneurship X   June-july 2009 Tordenskjiold Festival     April-July 2009 Literature review X   Oct. 2008, March 2009 Lysfestival   X Nov. 2008-Feb. 2009 Statistics (Fr.Havn and DK)     April-Oct. 2008 Literature review qualitative quantitative more related to dates activity
  23. 23. Theory <ul><li>1. ”Experience Economy” </li></ul><ul><li>background and state-of-the-art </li></ul><ul><li>2. Entrepreneurship Theory </li></ul><ul><li>3. Local Development </li></ul><ul><li>4. Innovation System Theory </li></ul>
  24. 24. <ul><li>experience   </li></ul><ul><ul><li>1377, from Old French  experience,  from Latin  experientia  &quot;knowledge gained by repeated trials,&quot; from  experientem  (nom.  experiens ), prp. of  experiri  &quot;to try, test,&quot; from  ex-  &quot;out of&quot; +  peritus &quot;experienced, tested.&quot; The verb (1533) first meant &quot;to test, try;&quot; sense of &quot;feel, undergo&quot; first recorded 1588. </li></ul></ul><ul><li>(From latin  experientĭa ) </li></ul>Source: experience. (n.d.). Unabridged (v 1.1) . Retrieved from website: http:// / browse / experience Etymology
  25. 25. Perhaps the Romans, were the first planners to introduce “experiences” for their citizens on a great scale. Roman Coliseum. I naugurated by Titus 80 a.d.
  26. 26. Alvin Toffler (1971): “experiential industry” <ul><li>He criticized how “ economists have great difficulty imaging alternatives to communism and capitalism ”, and how they could only envision the economy in the terms of scarcity of resources. </li></ul><ul><li>People in the future will want more than products, they will want: “psychic gratification” </li></ul><ul><li>First one to define “the experience economy” </li></ul>Alvin Toffler USA (1928- )
  27. 27. Related ”fields” to the idea of the experience economy <ul><li>Marketing : “Emotional experiences linked to products and services” (Holbrook & Hirschman, 1982) </li></ul><ul><li>Society : </li></ul><ul><li>The Experience Society (C. Köck, 1990; G. Schulze, 1992) Die Erlebnisgesellschaft </li></ul><ul><li>The Dream Society (R. Jensen, 1999) </li></ul><ul><li>Economic Geography : “Urban entrepreneurialism” (D. Harvey, 1989); The Cultural Economy (A. Scott 1997); The Creative Class (R. Florida 2004) </li></ul><ul><li>Planning : Fantasy city (1998), The city as an entertainment machine (2004), Experiencescapes (O’Dell, 2005), The event city (Metz, 2007), Fun city (Marling & Zerlang, 2007) </li></ul>
  28. 28. <ul><li>Pine & Gilmore, 1998. article “ Welcome to the Experience Economy” </li></ul><ul><li>Book published in 1999 by Harvard Business Review </li></ul><ul><li>Chosen in “The 100 Best Business Books” (section of marketing) </li></ul><ul><li>Published in 12 languages </li></ul>1999-2009 A decade of “The Experience Economy”
  29. 29. Source: Pine & Gilmore, 1999 The offerings coexist in the marketplace Source: Freire, 2008. Presented at RSA Conference N EXPERIENCES PRODUCTS SERVICES
  30. 30. Source: Freire, 2008. Presented at RSA Conference N
  31. 31. N Finding the dissemination of a book across the books and papers
  32. 32. Rest: Chemistry, Medicine, Materials, Pharmacology, Veterinary, Biology, Life Sciences, Environmental, Physics, Astronomy & Planetary Science Based on N
  33. 33. I designated the fields by looking at aprox. 140 articles/books. These are the ones quoted more than twice. Based on
  34. 34. 1 = one article quoted more than twice. If one article is co-authored by one German and one Italian, then 0,5 goes to each country. Based on
  35. 35. Please consider that this is not a scientific method, just an idea that Google Trends can give about people ”googling”. http:// / trends?q =&quot; experience + economy &quot; N
  36. 36. Based on Countries in order of TOTAL publicacations on Experience Economy N
  37. 37. Based on Countries in order of TOTAL publicacations on Experience Economy N
  38. 38. Etymol ogical relation? Countries where the word only has one meaning tends to be more focused on business/tourism, while when it has two meaning it tends to have other areas too (society, ICT, leisure, planning, education, etc.) 经历 ervaring erfahrung erfaring 体验 beleving erlebnis oplevelse experience esperienza / experiencia experientĭa Chinese Dutch German Danish English Italian / Spanish Latin
  39. 39. Based on N This is an interesting, but mere coincidence Starbucks in the Nasdaq
  40. 40. <ul><li>Business : </li></ul><ul><ul><li>Realize there are marketable experiences </li></ul></ul><ul><ul><li>Experiences can be combined with products and services </li></ul></ul><ul><li>Local/Regional Goverment : </li></ul><ul><ul><li>Retain population </li></ul></ul><ul><ul><li>Attract new citizens </li></ul></ul><ul><ul><li>Draw tourism income </li></ul></ul><ul><ul><li>Attract investment </li></ul></ul>Therefore, the “experience economy” concept could help : Source: Freire, 2008. Presented at RSA Conference
  41. 41. Entrepreneurship for this project Source: Freire, 2008. Presented at RSA Conference Theories on Entrepreneurship Corporate Social Responsibility (CSR), NGO’s continous projects, institutional entrepreneurs, community entrepreneurs, etc. corporate entrepreneurship, corporate venture, new businesses units, etc. intrapreneurs foundations, social entrepreneurs, creators of ngo's, etc. common firms, informal economy, illegal businesses, etc. entrepreneurs non-for profit for profit  
  42. 42. Note: these types of ”economies” are not supposed to enclose the whole economy (past or current), only fractions of it . Are the entrepreneurs different in the ”different economies”? Source: Freire, 2008. Presented at RSA Conference Theories on Entrepreneurship N
  43. 43. 3 traditions of entrepreneurship research (Stevenson & Jarillo, 1990) <ul><li>Economic - What </li></ul><ul><li>Psychological – Why </li></ul><ul><li>Management - How </li></ul>S. Sørensen, 2007 Two Historical Traditions & <ul><li>Five Images of Entrepreneuring </li></ul><ul><li>Mechanized </li></ul><ul><li>Evolutionary </li></ul><ul><li>Contingency </li></ul><ul><li>Behavioural/Cognitive </li></ul><ul><li>Social Construction </li></ul>Theories on Entrepreneurship
  44. 44. Five Images of Entrepreneuring (S. Sørensen, 2007) <ul><li>Mechanized </li></ul><ul><li>Evolutionary </li></ul><ul><li>Contingency </li></ul><ul><li>Behavioural/Cognitive </li></ul><ul><li>Social Construction </li></ul><ul><li>Contingency : I ndividual and social aspects, without disregarding the socioeconomic environment. It sees the entrepreneurial process as an open system </li></ul>Theories on Entrepreneurship N
  45. 45. The Theoretical Landscape of the Entrepreneurial Process Source: PhD Thesis of Suna Sørensen, 2007 Theories on Entrepreneurship N
  46. 46. System of Innovation Open style <ul><li>Institutions </li></ul><ul><li>Informal (trust, respect the law, attitude to work, entrepreneurial atmosphere, etc.) </li></ul><ul><li>Formal: pri vate one (banks, research centers, etc.) public sector (government agencies, laws, education, infrastructure, etc.) (Cooke, 1992) </li></ul><ul><li>Actors </li></ul><ul><li>Customers </li></ul><ul><li>Producers constitute “a variety of actors reaching from small service producing firms, networks of firms, multinational corporations, urban planning authorities, civic organizations and fiery souls” (Lorentzen 2007, referring to place bound experiences) </li></ul><ul><li>University: antenna & “ innovation hub ” (Youtie & Shapira, 2006) </li></ul><ul><li>Others… </li></ul><ul><li>Networks </li></ul><ul><li>Håkansson & Snehota (2006) </li></ul><ul><li>Coe, N. M., Dicken, P., & Hess, M. (2008) </li></ul>Theories on Innovation Systems
  47. 47. NSI RSI LSI IT SERVICES CONSTRUCTION EXPERIENTIAL INDUSTRY - National System of Innovation (Lundvall, 1992) - Regional System of Innovation (Cooke, 1998) - Local System of Innovation (various) - Sectoral System of Innovation (Malerba, 2002) Theories about Innovation Systems ETC.. Theories on Innovation Systems
  48. 48. Main limitations of I.S. for my project <ul><li>Municipality of Frederikshavn quite small </li></ul><ul><li>Lack of attention to individual entrepreneur </li></ul><ul><li>However… </li></ul><ul><li>Useful device to understand economic evolution/development. </li></ul>Theories about Innovation Systems Theories on Innovation Systems N
  49. 49. Theories on Local Development <ul><li>Books in order of importance for my project </li></ul><ul><li>Julien, P.A. (2007) “A Theory of Local Entrepreneurship in the Knowledge Economy”. London. Edward Elgar. </li></ul><ul><li>Pike et al. (2006) Local and Regional Development. London Routledge </li></ul><ul><li>Fischer and Nijkamp (2009) “Entrepreneurship and regional development” on Handbook of Regional Growth and Development Theories. Oxford. Edward Elgar </li></ul><ul><li>Harper, D. (2007) “Foundations of entrepreneurship and economic development.” London: Routledge. </li></ul><ul><li>Bingham and Mier (1997) Dilemmas of Urban Economic Development. Thousand Oaks. USA </li></ul><ul><li>Hart, D. (2003) “The emergence of entrepreneurship policy.” Cambridge University Press. USA </li></ul><ul><li>Blakely, E. (1994) “Planning Local Economic Development”. Sage </li></ul><ul><li>Acs, Z. (2008). “Entrepreneurship, growth and public policy prelude to a knowledge spillover theory of entrepreneurship”. Elgar. </li></ul><ul><li>And others… </li></ul>N
  50. 50. Local Entrepreneurship Policy: The case of the Festival of Lights of Frederikshavn L. Carlos Freire, PhD Candidate Dept. of Planning & Development Aalborg University, Denmark American Association of Geographers Conference. Las Vegas, March 22-27 2009 Strand: Entrepreneurship and Geography Slides with black background were part of the presentation I gave at the AAG Conference
  51. 51. Festival of Lights. Sources I <ul><li>WRITTEN: </li></ul><ul><li>Website of the Light Vision Innovation Center (organization) http:// / </li></ul><ul><li>Kommune 25 page report about the 2006 Report. (English) </li></ul><ul><li>10 page report, evaluating the 2008 Lysfestival, from the Managing Director (English) </li></ul><ul><li>A powerpoint presentation made by the 2008 Managing Director. (English) </li></ul><ul><li>Articles from Anne Lorentzen (English and Danish) </li></ul><ul><li>Students: Master Thesis, and bachelor projects of I20. (Danish) </li></ul><ul><li>5 articles from about the 2006 and 2008 festival (Danish) </li></ul><ul><li>Critical report from a citizen in his website about the festival </li></ul><ul><li>9. Other smaller texts in websites </li></ul>This slide was not shown at the AAG conference
  52. 52. Festival of Lights. Sources II <ul><li>VISITS AND INTERVIEWS </li></ul><ul><li>October 2008 </li></ul><ul><li>Light Festival. During the night. Talked to Business people, some artists, Danes and foreign citizens. </li></ul><ul><li>International Conference . Informal interviews with I. Cronhammer (local artist) and light designers: K. Mende (Japan) and M. Ridler (UK). </li></ul><ul><li>January 2009 </li></ul><ul><li>Meeting of Light Vision Innovation Center. 8 participants </li></ul><ul><li>March 2009 – Interviews with: </li></ul><ul><li>Jesse Lilley - Managing Director of the 2008 festival. </li></ul><ul><li>Bente Jochumsen and Tove Varmløse – Originators of idea. Actively involved in all the festivals. Employees at Fr.Havn Kommune. </li></ul><ul><li>Søren Tjønneland – Managing director of Roblon. Light factory. </li></ul><ul><li>Keld Gyldem – Active citizen critical of the 2008 festival. Run a small photographic exhibition about the lysfestival at the local library. </li></ul><ul><li>Heide Burghermeters – Electrical teacher at EUC Nord. Participant. </li></ul>This slide was not shown at the AAG conference
  53. 53. Evolution of the festival <ul><li>2004 2006 2008 2010 </li></ul>? N
  54. 54. Entrepreneurship Policy (Local level) <ul><li>Limited maneuver on taxation, regulation, etc. </li></ul><ul><li>Main Possibilities : </li></ul><ul><li>Provide info / advice </li></ul><ul><li>Incubators, tech parks (effective?: S&G 1999, Florida 2003) </li></ul><ul><li>Develop rich networks (incl. public, private, education) </li></ul><ul><li>Help local products to stand out. </li></ul><ul><li>Local annual festivals. </li></ul>Sources: Hart et al 2004, Holtz-Eakin et al. 2004, Mourdoukuotas & Papadimitriou, 2002 and Julien 2007 For Frederikshavn
  55. 55. Main stakeholders (2008) N Local Media
  56. 56. The impact of local festivals… <ul><li>“ can extend far beyond the economic repercussions of tourist inflows, if they help create a sense of belonging and pride among local residents, thus fostering the sharing of local resources and local purchases, and even helping keep much needed workers in the area instead of migration to the cities” </li></ul><ul><li>Julien, 2007 </li></ul>N
  57. 57. The Light Festival in Frederikshavn N Other Activities: Expositions, Downtown open, Concerts (streets & restaurants), Children activities, etc. International Conference Education Light Camp Street Light Projects
  58. 58. N
  59. 59. A festival can improve the private and the public Harvey, 1989 gave as an importan warning about Festivals. However, this one is not a top-down approach as he described.
  60. 60. Next four slides <ul><li>Paper Plan and Milestones </li></ul><ul><li>Teaching </li></ul><ul><li>PhD Courses </li></ul><ul><li>External Collaboration </li></ul>
  61. 61. <ul><li>Paper plan </li></ul>This slide has been deleted for the internet version.
  62. 62. Teaching <ul><li>In Autumn 2008 co-teaching: </li></ul><ul><ul><li>Demography – 3r. Sem. students of geography. </li></ul></ul><ul><ul><li>Economic Geography. - 3rd. Sem. students of geography </li></ul></ul><ul><ul><li>Location & Development. - 7th Sem. – Msc. Industrial Geography </li></ul></ul><ul><li>I taught a total of 96 hours. </li></ul><ul><li>In Spring 2009: </li></ul><ul><ul><li>Industry, Local and Regional Development – 8th. Sem. Msc. Industrial Geography. I taught 24 hours. </li></ul></ul><ul><li>Similar load in next semesters. Besides supervising, censoring and other activities (such as study tour 70 hours) </li></ul><ul><li>By end of PhD I will have over 450 hours. </li></ul>
  63. 63. Courses 21 ECTS completed Plus ECTS from conferences I’ll complete the required ECTS
  64. 64. External collaboration Spring 2010? This slide has been deleted for the internet version.
  65. 65. Other dissemination of knowledge Blog: “Notes of Carlos” N Aprox. 300 visits monthly from outside AAU
  66. 66. Final remarks <ul><li>The concept of the experience economy has evolved from business strategy to economic development </li></ul><ul><li>It has flourished in Denmark, for three reasons: income per capita of the citizens, for the timing 1999 (destruction of old industry/political changes and bold publications), and perhaps because of the word experience/“oplevelses”. </li></ul><ul><li>Lack of research on the effect of the experience economy in the real economy. </li></ul><ul><li>I aim to explore the entrepreneurial dynamics and find potential effective policy. </li></ul>