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The role of clusters and public policy in new regional economic path development

In: The Life Cycle of Clusters

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  • Bjørn T. Asheim
  • Arne Isaksen
  • Roman Martin
  • Michaela Trippl

Abstract

This chapter deals with the role of clusters and public policy in new regional economic path development. New path development is analysed from an institutional perspective by focusing on changes in the wider regional innovation system (RIS), including firms, universities and governmental agencies, and by placing emphasis on the role that public policy can play. We argue that new regional economic path development requires a broad-based policy approach that stimulates cross-fertilizing effects between different industrial activities within and beyond the region. While cluster policies are well-suited to support the growth and sustainment of existing industries, policies for new path development should aim at regional diversification and variety creation, preferably based on existing strengths and expertise in the region. These ideas are central to the Constructing Regional Advantage (CRA) approach. Empirically, the chapter draws on case study research on two new regional economic growth paths in Sweden and Norway, namely the new media cluster in Southern Sweden and the Oslo Cancer cluster. While the first is an example of path renewal through combining knowledge bases, the latter is an example for new path creation based on scientific knowledge. The empirical analysis underlines the role that public policy can play in facilitating new regional economic path development.

Suggested Citation

  • Bjørn T. Asheim & Arne Isaksen & Roman Martin & Michaela Trippl, 2017. "The role of clusters and public policy in new regional economic path development," Chapters, in: Dirk Fornahl & Robert Hassink (ed.), The Life Cycle of Clusters, chapter 1, pages 13-34, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:16617_1
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    Cited by:

    1. Martin, Hanna & Martin, Roman, 2016. "Policy capacities for new regional industrial path development – The case of new media and biogas in southern Sweden," Papers in Innovation Studies 2016/25, Lund University, CIRCLE - Centre for Innovation Research.
    2. Hanna Martin & Roman Martin & Elena Zukauskaite, 2019. "The multiple roles of demand in new regional industrial path development: A conceptual analysis," Environment and Planning A, , vol. 51(8), pages 1741-1757, November.
    3. Aitziber Elola & Jesus M. Valdaliso & Susana Franco & Santiago M. López, 2017. "Public policies and cluster life cycles: insights from the Basque Country experience," European Planning Studies, Taylor & Francis Journals, vol. 25(3), pages 539-556, March.
    4. Martin, Hanna & Martin, Roman & Zukauskaite, Elena, 2018. "The Multiple Roles of Demand in Regional Development A Conceptual Analysis," Papers in Innovation Studies 2018/10, Lund University, CIRCLE - Centre for Innovation Research.

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    More about this item

    Keywords

    Economics and Finance; Environment; Geography; Urban and Regional Studies;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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