Institutional Change in Old Industrial Areas – Lessons for ... - UMAR

established firms, research institutions, knowledge suppliers (incl. 3 Universities)
and special services are located in the urban area. Income levels are higher and
labour market indicators show a better performance than the average of Austria
and the EU.
• Rural periphery to the south, minor industrial structured until the 1970s, has
undergone industrialisation since then. Besides labour intensive industries such
as leather, textile and clothing there are modern sectors such as electrical
products, electronics and machinery present as well.
Styria, thus has a mix of traditional and modern industries, of types of subregions as
well as policies.
Styria’s regional economy is dominated by the manufacturing sector, which produces
21% of the GRP. The economically most important regions are Upper Styria and the
capital Graz (and surroundings), both with a long-lasting industrial tradition.
Upper Styria was heavily based in the manufacturing of iron ore and coal, leading to
the development of inflexible economic structures and the inability to adjust to
changing economic conditions. As a consequence, serious economic problems
indicated by low growth rates of industrial production, high unemployment and
migration rates which are jeopardising the economic competitiveness of the whole
region.
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