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I addressed the issue of industrial development directly at the end of my comment. The PV industry is not nonexistent in Spain, but it was stopped in its growth

I'm not seeing that in the things at I've read.  Part of that may be that I'm heavily focused on the Basque region.  

Ideally, though, I like to think of the "new energy" economy plugging into the existing one, and drawing things closer together.

Imagine the idea of hyperlinks, but replacing these with supplier relationships between firms.  The more heavily crossreferencing these links, the harder it is to get the same sort of efficiencies elsewhere.  So production is tied to a static location instead of globe trotting in search of cheap labor.

When you have a concentration of firms that need, for example,  superclear glass, there's going to be a larger local market, and lower unit costs.  Shared supplier bases mean that no one firm has to bear the cost of keeping these specialized suppliers afloat. And they don't have to worry about having to locate someone who can make that type of class on an ad hoc basis.  The concentration of demand means that you can have firms specialize, but the large number of purchasers means that they aren't dependent on any one buyer.  Thus, the firms in the cluster support one another's existence.

This is obviously not neoliberal economics, but it is part of my dissertation. Now I just have to figure how to get to Spain for research......  I suppose I can always got the teaching English in Spain route......

And I'll give my consent to any government that does not deny a man a living wage-Billy Bragg

by ManfromMiddletown (manfrommiddletown at lycos dot com) on Tue Jun 29th, 2010 at 06:52:30 PM EST
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