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Institutional change in economic geography
This paper develops a rigorous concept of institutions to investigate the interrelationships between institutional and economic change from the perspective of economic geography. We view institutions neither as behavioural regularities nor as organizations or rules, but conceive institutions as stabilizations of mutual expectations and correlated interaction. The paper discusses how economic interaction in space is shaped by existing institutions, how this leads to economic decisions and new rounds of action, and how their intended and unintended consequences impact or enact new/existing institutions. The paper explores three modes of institutional change – hysteresis, emergent change, and institutional entrepreneurship.
Journal Article
Rethinking Path Creation: A Geographical Political Economy Approach
A burgeoning strand of evolutionary economic geography (EEG) research is addressing questions of regional path creation, based on the idea that place-specific legacies and conditions play a critical role in supporting the emergence of new economic activities. Yet there has been little effort thus far to take stock of this emerging body of research. In response, the aims of this article are to offer a fresh synthesis of recent work and to develop a broader theoretical framework to inform future research. First, it presents a critical appraisal of the state of the art in path creation research. In an effort to address identified gaps in EEG research, this incorporates insights from sociological perspectives, the global production networks approach, and transition studies. Second, the article's development of a systematic theoretical framework is based on the identification of key dimensions of path creation and their constitutive interrelations. This contribution is underpinned by a geographical political economy (GPE) approach that provides the ontological basis for the integration of the five key dimensions of path creation within an overarching framework and the positioning of regional processes in relation to the broader dynamics of uneven development. Informed by GPE, the argument is that knowledgeable actors, operating within multiscalar institutional environments, create paths through the strategic coupling of regional and extraregional assets to mechanisms of path creation and associated markets. To inform further research, the article outlines four concrete propositions regarding the operation of path creation processes in different types of regions and explores these through case studies of Berlin and Pittsburgh.
Journal Article
Economic geography : a contemporary introduction
\"Economic Geography is an engaging and accessible introduction to the different ways modern economic geographers understand, analyze, and interpret economic processes. This comprehensive text addresses significant questions relevant to contemporary economic life, from the activities of transnational corporations to issues surrounding workplaces and consumption. It encourages readers to explore how spatial patterns, places, networks, and territories shape large-scale economic processes. Accessible, highly-illustrated material presents fresh insights from the field--complemented by relatable, real-world examples that help students understand the social, cultural, and political contexts underpinning global economic processes. Now in its third edition, this extensively revised and updated textbook retains the features and thematic structure that have proved popular with students and instructors alike, while adding exciting new content. New chapters explore how the global economy and global development are institutionalized and governed, the economic geographies of global climate change, economic practices outside the capitalist mainstream, the role of migrants in labour markets, global production networks, and more\"-- Provided by publisher.
Book
Why is economic geography not an evolutionary science? Towards an evolutionary economic geography
The paper explains the commonalities and differences between neoclassical, institutional and evolutionary approaches that have been influential in economic geography during the last couple of decades. By separating the three approaches in terms of theoretical content and research methodology, we can appreciate both the commonalities and differences between the three approaches. It is also apparent that innovative theorizing currently occurs at the interface between neoclassical and evolutionary theory (especially in modelling) and at the interface between institutional and evolutionary theory (especially in 'appreciative theorizing'). Taken together, we argue that Evolutionary Economic Geography is an emerging paradigm in economic geography, yet does so without isolating itself from developments in other theoretical approaches.
Journal Article
Path Creation as a Process of Resource Alignment and Anchoring: Industry Formation for On-Site Water Recycling in Beijing
Where and how new industrial paths emerge are much debated questions in economic geography, especially in light of the recent evolutionary turn. This article contributes to the ongoing debate on path creation with a new analytical framework that specifies the formation of generic resources in embryonic industries. It suggests that path creation processes are not only conditioned by preexisting regional capabilities and technological relatedness but also by the way firm and nonfirm actors mobilize and anchor key resources for industry formation. Our framework elaborates on the early industry development phase, extending the focus on regional knowledge spillovers in evolutionary economic geography (EEG) literature with recent insights on industry formation dynamics from innovation studies. It understands early path creation as conditioned by four systemic resource formation processes-knowledge creation, investment mobilization, market formation, and technology legitimation-that can be mobilized both from inside or anchored from outside the region. The use and value of the analytical framework is illustrated by a case study on on-site water recycling technology (OST), based on interviews with 40 experts in three Chinese city regions. The findings suggest that, despite possessing the least favorable initial conditions, a sizable OST industry developed only in Beijing. This is explained based on the specific anchoring process of the four key resources in the early development stage of the industry. Our results imply that EEG would profit from incorporating a broader set of variables than knowledge-based relatedness in explanations of regional industrial path creation.
Journal Article
Industrial Diversification in Europe: The Differentiated Role of Relatedness
There is increasing interest in the drivers of industrial diversification, and how these depend on economic and industry structures. This article contributes to this line of inquiry by analyzing the role of industry relatedness in explaining variations in industry diversification, measured as the entry of new industry specializations, across 173 European regions during the period 2004-2012. First, we show that there are significant differences across regions in Europe in terms of industrial diversification. Second, we provide robust evidence showing that the probability that a new industry specialization develops in a region is positively associated with the new industry's relatedness to the region's current industries. Third, a novel finding is that the influence of relatedness on the probability of new industrial specializations depends on innovation capacity of a region. We find that relatedness is a more important driver of diversification in regions with a weaker innovation capacity. The effect of relatedness appears to decrease monotonically as the innovation capacity of a regional economy increases. This is consistent with the argument that high innovation capacity allows an economy to break from its past and to develop, for the economy, truly new industry specializations. We infer from this that innovation capacity is a critical factor for economic resilience and diversification capacity.
Journal Article