Regional development and the reorganisation processes in the automobile industry

The examination of the development of a car manufacturer over the period of half a century in its local context underlines that to overcome crises in this sector, it was necessary to establish varying forms of cooperation of the market, public administration and civil society, including Quasi Non-governmental Organisations (QUANGOs), vocational training institutes, Research and Development (R&D) facilities and universities. Not only endogenous factors but also exogenous factors played a significant role in creating opportunities. The example of the automobile region of Ingolstadt shows that different compositions of interaction forms - interferences, interplays and interventions - fit in different ways to the challenges. The emerging structures and processes can best be analysed by means of a governance approach. Efficient governance structures do not always base on democratic processes, which causes a dilemma in regional politics. Copyright © 2008 Inderscience Enterprises Ltd.