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Embeddedness and Economic Transformation of Manufacturing: A Comparative Research of Two Regions

Author

Listed:
  • Ã…sa-Karin Engstrand

    (Göteborg University and the National Institute for Working Life)

  • Erik Stam

    (University of Utrecht and Free University Amsterdam)

Abstract

How does the embeddedness in institutional structures enable or constrain the economic evolution of manufacturing regions? The history of these regions explains the origins and persistence of certain region-specific institutions. In this article the embeddedness in institutions-as the products of historically situated interactions, conflicts and negotiations among different socioeconomic actors and groups-is compared in the development of two manufcturing regions: the Uddevalla region in Sweden and the Southeast Brabant region in the Netherlands. This comparative investigation of two manufacturing regions suggests that the type of manufacturing seems to be decisive for the possibility to adapt. Since social capital, or embeddedness, has been strong in both regions, it is not a sufficient factor alone to explain why one of the regions has managed to transform better than the other.

Suggested Citation

  • Ã…sa-Karin Engstrand & Erik Stam, 2002. "Embeddedness and Economic Transformation of Manufacturing: A Comparative Research of Two Regions," Economic and Industrial Democracy, Department of Economic History, Uppsala University, Sweden, vol. 23(3), pages 357-388, August.
    • Handle: RePEc:sae:ecoind:v:23:y:2002:i:3:p:357-388
    DOI: 10.1177/0143831X02233004
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