Strategic business services development and regional economic development: the case of the capitale-nationale du Québec region

Abstract

In this paper we study the role of business services, particularly strategic business services (SBS), in the process of regional development. Using the case of the Capitale-Nationale region (Quebec City and surrounding territory) as an example, we explore the differences between an urban core and its adjacent rural areas in terms of SBS development. In this region as in many others, services in general and SBS in particular are concentrated in the metropolitan zone and are poorly represented in the rural areas. Such a situation, which replicates the differences in the level of industrialization, is detrimental to the development of rural areas. Nevertheless, the innovation potential of the rural areas is not to be overlooked in so far as they can continue to attract business services and if a suitable networking of local businesses can be achieved with strategic partners located in the metropolitan core.