For example: •  regional trade liberalization (which is essentially in place) should result in a reduction in the cost of inputs and contribute to the rationalization of production;  •  labour mobility within the region has the potential to improve skill and wage arbitrage;  •  co-ordinated investment promotion could make the region more attractive for foreign investment and reduce the fiscal cost attached to expensive and sometimes wasteful tax concessions; and • regional planning could facilitate the exploitation of production integration opportunities, through clusters of economic activities.
I am therefore delighted with the long-standing relationship between NBRM and DNB, and the resulting cooperation and knowledge transfer. Integration and innovation Now let me turn to the relationship between integration and innovation. Is innovation a driver for integration? Yes, to some extent. If an innovation is easily accepted in various countries, replacing other, older technologies or instruments, international differences disappear.