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New Path Development in the Periphery

Author

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  • Isaksen , Arne

    (Department of Working Life and Innovation, University of Agder, Norway)

  • Trippl , Michaela

    (Center for Innovation and Research and Competence in the Learning Economy (CIRCLE), Lund University, Sweden)

Abstract

This paper seeks to enhance our understanding of critical preconditions and factors that facilitate the rise and development of new industrial paths in peripheral regional economies. Current conceptualizations of regional path creation are largely based on experiences from core regions and fail to provide satisfactory theoretical explanations of new path development in peripheral regions. Applying a knowledge base approach, we advance the argument that path creation in the periphery can follow either an analytic or a synthetic route. We highlight that new path development is linked to an increase of knowledge variety through the combination of knowledge from outside and inside the region. The paper contains an analysis of the emergence and evolution of new industries in two peripheral regions in Norway and Austria: the electronics and software industry in Arendal-Grimstad in the South-Eastern part of Norway, and the software industry in Mühlviertel in Upper Austria. The two industries have developed differently; through the 'synthetic route' based on the emergence and restructuring of manufacturing firms in Arendal-Grimstad, and through the 'analytical route' building on the establishment of research facilities in Mühlviertel. However, similar factors, such as exogenous development impulses through the inflow of new analytical and synthetic knowledge, the presence of key actors of change, and building of supportive institutional structures are found to be vital in sparking the formation of new industrial paths in both regions. The two cases, however, differed in their further evolution, as they showed varying capacities to successfully combine the newly emerging knowledge base with the existing one. The findings clearly challenge uniform, narrowly conceptualized models of endogenous industrial evolution and highlight the advantages of applying a theoretical framework that takes not only endogenous but also exogenous sources of path creation and its relation to combinations of knowledge bases into account.

Suggested Citation

  • Isaksen , Arne & Trippl , Michaela, 2014. "New Path Development in the Periphery," Papers in Innovation Studies 2014/31, Lund University, CIRCLE - Centre for Innovation Research.
    • Handle: RePEc:hhs:lucirc:2014_031
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    References listed on IDEAS

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    Cited by:

    1. Franz Tödtling & Michaela Trippl, 2016. "How do firms acquire knowledge in different sectoral and regional contexts?," Chapters, in: Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), Handbook on the Geographies of Innovation, chapter 7, pages 142-154, Edward Elgar Publishing.
    2. Trippl, Michaela & Asheim, Björn & Miorner, Johan, 2015. "Identification of regions with less developed research and innovation systems," Papers in Innovation Studies 2015/1, Lund University, CIRCLE - Centre for Innovation Research.
    3. Isaksen , Arne & Trippl , Michaela, 2014. "Regional industrial path development in different regional innovation systems: A conceptual analysis," Papers in Innovation Studies 2014/17, Lund University, CIRCLE - Centre for Innovation Research.
    4. Kroll, Henning, 2017. "The challenge of smart specialisation in less favoured regions," Working Papers "Firms and Region" R1/2017, Fraunhofer Institute for Systems and Innovation Research (ISI).
    5. Luis Carvalho & Mario Vale, 2018. "Biotech by Bricolage? Agency, institutional relatedness and new path development in peripheral regions," Papers in Evolutionary Economic Geography (PEEG) 1801, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.

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    More about this item

    Keywords

    Peripheral regions; new path creation; knowledge bases;
    All these keywords.

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • 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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