Hopkins and Wallerstein( 1986) define grobal production as a series of commodity chains; raw material, labour, the sustenance of labour, intermediate processing and processing transport and final consumption(Chase-Dunn 1989 p39).
Core regions contain relatively high proportions of core modes in these chains, peripheral regions contain low proportions and semi - peripheral regions are between. Three common indicators of core modes are higher wage rates, higher profit rates and higher capital intensity.
Arrighi and Drangel (1986) define the core by its relatively high GNP per capita. Chase - Dunn (1989,p207 ) assumes that core activities combine all three characteristics: relatively high wage rates for skilled labour working in relatively capital - intensive production, which facilitate particularty high rates of labour productivity enabling high rates of profit. At this stage however, do not define peripheries.
Bornschier ( 1992,P4) views the state as a producer or protector of innovation, refferring to a 'world market for protection', which is a territorrially bounded public utility and an element of the national production function. States support innovation and investments by placing their firms within national and global networks of economic transactions that are effectively protected.
Regional competitors in a single industry may be core or semi - peripheral according to whether they utilise innovations. Innovative core activities are defined in relation to other core activities. If a single sector in a region innovates, it is a core activity only if it is connected with other core activities in the regions. If such linkages do not occur, the long - term stability to consistently produce innovations will be threatened. It will become dependent on outside markets and, in the long run, will either be peripheralised or decline.
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