Economic Geography of Innovation and Regional Development

AbstractResearch in economic geography on innovation and regional development is an important and thriving research area in Scandinavia, which has contributed significantly to theoretical and empirical advancements beyond the Scandinavian research environments. This chapter demonstrates how the field has developed and changed its focus over the years, touching upon and developing around central academic and societal topics from deindustrialisation, clusters and regional innovation systems to creativity, green transition and changing regional development paths. The chapter focuses on how research milieus have developed in Scandinavia, how theories, methodologies and methods have advanced and…

One coast, two systems: Regional innovation systems and entrepreneurial discovery in Western Norway

This paper introduces an analytical framework for understanding how specialized and diversified regional innovation system (RIS) differ in the way an entrepreneurial discovery process (EDP) is likely to unfold. To analytically explore the proposed framework, we deploy a sequential explanatory design approach, using quantitative data to analyze the regional industry structure of the city regions of Bergen and Stavanger in Western Norway, followed by a qualitative analysis of interviews with key stakeholders in both regions. We find that the city regions face unique challenges that align with an understanding of their respective RIS categorization, providing evidence that the framework propos…

Regional industrial restructuring resulting from individual and system agency

The article discusses mechanisms and policy that stimulate regional economic restructuring. Economic restructuring is conceptualised through the notion of path development. The article distinguishe...

Innovation Policies for Regional Structural Change: Combining Actor-Based and System-Based Strategies

This chapter analyses opportunities and challenges for regional innovation policies designed to promote new path development in different types of regional innovation systems (RISs). RISs differ enormously in their capacity to develop new growth paths due to pronounced differences in endogenous potentials and varying abilities to attract and absorb exogenous sources for new path development. We distinguish between different types of regional industrial path development, which reflect various degrees of radicalness of regional structural change. The chapter offers a conceptual analysis of conditions and influences that enable and constrain new path development in different types of RISs and …

Regional industrial restructuring: Asset modification and alignment for digitalization

This paper provides a conceptual framework to understand the innovation‐based restructuring of industries in a regional context. The framework includes how firms create new assets, reuse existing assets, and overcome hampering barriers to support innovation processes. The framework also covers how such asset modifications take place at the innovation system level. A core argument is that innovation activity is strengthened and regional restructuring supported when firms’ internal assets are aligned with assets at the regional innovation system level. We illustrate the framework with empirical examples of how digitalization as an innovation process takes place in firms in traditional manufac…

New path development between innovation systems and individual actors

This special issue is devoted to studying mechanisms that may stimulate or hamper the renewal of existing industry paths and the growth of new paths. In this guest editorial, we look closely at the...

Cluster emergence: combining pre-existing conditions and triggering factors

AbstractThis article argues that the emergence of regional clusters relies on both necessary pre-existing conditions for cluster appearance in general and triggering factors that cause clusters to emerge in particular places. This approach is used to analyse two ‘critical cases’; the emergence of the synthetic-knowledge boat building industry in the Arendal area in Norway from the mid-1950s and the analytical-knowledge cancer medicine industry in Oslo around the year 2000. Although the industries and the contexts are otherwise very different, the framework turns out to be useful in interpreting the emergence of the two clusters. However, the specific pre-existing conditions and the triggeri…

Differentiated regional entrepreneurial discovery processes. A conceptual discussion and empirical illustration from three emergent clusters

The paper aims to contribute to better understanding of entrepreneurial discovery processes and regional industrial growth by examining (1) how different regional contexts affect entrepreneurial di...

Linking scientific and practical knowledge in innovation systems

New research indicates that firms combining the science-based STI (Science, Technology, Innovation) and the experience-based DUI (Doing, Using, Interacting) modes of innovation are more efficient when it comes to improving innovation capacity and competitiveness. With regard to innovation policy, the STI mode calls for a supply driven policy, typically aimed to commercialise research results. The DUI mode suggests a demand driven policy approach, such as supporting the development of new products or services to specific markets. This paper analyses how the two types of innovation policy and the two innovation modes can be combined in regional innovation systems. The analysis builds on studi…

Cluster development and regional industrial restructuring: agency and asset modification

The paper presents a novel theoretical framework to analyse the emergence and growth of industrial clusters. The framework focuses on the role of change agency for the modification of assets that i...

The emergence of new industries at the regional level: alignment of organizational and regional industrial culture

This article provides insights into how and where new industries emerge and grow through theoretical reasoning and the advancement of relevant arguments through empirical examples from industry emergence in two Norwegian regions: the establishment of the boatbuilding and the electronics industry in Arendal; and the cancer medicine and educational technology industry in Oslo. The article focuses on culture as an important asset for new industry emergence. We argue that industry emergence is supported if organizational culture in emerging industries and existing or altered regional industrial culture become aligned. The four industry cases demonstrate how in some situations industries emerge …

Perspectives on Cluster Evolution: Critical Review and Future Research Issues

The past two decades have witnessed an ever-growing scholarly interest in regional clusters. The focus of research has mainly been on why clusters exist and what characteristics “functioning” clusters hold. Although the interest in more dynamic views on clusters is not new, in recent years, however, more attention has been paid to providing better explanations of how clusters change and develop over time, giving rise to an increasing popularity of different variants of the cluster life cycle approach. This article offers a critical review of various cluster life cycle models. We discuss the key ideas and arguments put forward by their main protagonists and we identify several shortcomings –…

Combined Innovation Policy: Linking Scientific and Practical Knowledge in Innovation Systems

New research indicates that firms combining the science-based STI (Science, Technology, Innovation) and the experience-based DUI (Doing, Using, Interacting) modes of innovation are more efficient when it comes to improving innovation capacity and competitiveness. With regard to innovation policy, the STI mode calls for a supply driven policy, typically aimed to commercialise research results. The DUI mode suggests a demand driven policy approach, such as supporting the development of new products or services to specific markets. This paper analyses how the two types of innovation policy and the two innovation modes can be combined in regional innovation systems. The analysis builds on studi…

Exogenously Led and Policy-Supported New Path Development in Peripheral Regions: Analytical and Synthetic Routes

AbstractThe aim of this article is to explore how new industrial paths emerge and grow in peripheral regional economies. Current conceptualizations of regional path development are based on experiences from core regions and fail to provide satisfactory theoretical explanations of new path-creating activities in peripheral areas. Our conceptual approach combines the notions of path development and knowledge bases, enabling us to distinguish between an analytic and a synthetic route of path creation. We argue that due emphasis should be given to exogenous sources of new path development and policy actions in order to understand how analytical and synthetic routes unfold in peripheral regions.…

One Size Fits All?

The creative class thesis put forward by Florida [(2002a) The Rise of the Creative Class and How it's transforming Work, Leisure, Community and Everyday Life (New York: Basic Books)] has in recent years been subject to vivid debate and criticism. This article applies the creative class thesis onto a Nordic context in order to examine whether Florida's theory proves fruitful in a context different from the US. Based on qualitative data, the paper analyses the role of people climate and business climate for the location of the creative class and firms in three different kinds of regions in four Nordic countries. The analyses demonstrate that the people climate tends to be of secondary importa…

Njøs, Rune 2018. The Role of Multilevel Dynamics and Agency in Regional Industrial Renewal

The doctoral thesis makes a relevant contribution to scholarly discussions in evolutionary economic geography (EEG) about how regional industrial restructuring unfolds over time and in space. The t...

Do general innovation policy tools fit all? Analysis of the regional impact of the Norwegian Skattefunn scheme

Background: The paper examines the regional effects of a general innovation policy, i.e. a policy tool that does not target specific industries or subnational regions. General policy tools are an important part of the portfolio of innovation policy measures. However, there is a question over whether general tools are equally relevant for all types of firms, irrespective of their size, sector and location. Findings: The economic geography and innovation study literature, as well as the EU’s Smart Specialization approach, are based on the view that innovation policy tools must be adapted to specific regional conditions. General policy tools are insufficient unless they are adapted to individu…

Jøranli, Ingvild. Labour Markets and the Geography of Firm Learning

Ingvild Joranli’s doctoral thesis Labour Markets and the Geography of Firm Learning contains a cover essay and four articles (Papers 1–4), two of which had been published in international journals ...

Innovation Dynamics of Global Competitive Regional Clusters: The Case of the Norwegian Centres of Expertise

Isaksen A. Innovation dynamics of global competitive regional clusters: the case of the Norwegian Centres of Expertise, Regional Studies. This paper analyses the innovation dynamics in six regional clusters that have been appointed as Norwegian Centres of Expertise and have been assessed as some of the most internationally competitive regional clusters in Norway. The most consistent finding concerns the great importance of strong Norwegian innovation systems in the maritime and oil and gas industries in underpinning the innovation dynamism of these clusters. This finding has some theoretical implications because the national level is mainly absent in the discourse on local buzz (knowledge s…

Innovation in small regions

Industrial development in thin regions: trapped in path extension?

Recent theorizing of path dependence supplements the traditional view of regional path-dependent industrial development characterized by lock-in effects with paths dealing with change, that is, path renewal and path creation. Few studies, however, examine why different types of regions experience diverse path-dependent development. This article examines why organizationally thin regions are much less likely to achieve path renewal and path creation than core regions. By use of a case study of industrial development in an organizationally thin and rather peripheral region in Norway the article contends that thin regions often need external investments to avoid being trapped in path extension.

Suppliers and Strategies for Upgrading in Global Production Networks: The Case of a Supplier to the Global Automotive Industry in a High-cost Location

The paper analyses the possibilities for a Norwegian supplier incorporated into global production networks in the automotive industry to perform knowledge upgrading and innovation activity. A consistent finding is that different departments of the supplier are parts of different types of global network. The serial production of the supplier is distinguished by quasi-hierarchical governance by customers and by lean forms of work organization in the production that stimulate continuous, incremental upgrading of the production process. The development department has network relations with customers and learning forms of work organization, which triggers production and functional upgrading. The…

Innovation by co-evolution in natural resource industries: The Norwegian experience

Author's version of an article published in the journal: Geoforum. Also avaliable from the publisher at: http://dx.doi.org/10.1016/j.geoforum.2011.01.008 Some resource-based economies become wealthy while others stay poor and Norway belongs to the first category. This paper argues that part of the answer to why Norway has managed to benefit from its rich natural resources is found in the formation of a well-functioning national innovation system. The paper integrates the innovation system approach with a historical approach through the concept of co-evolution. The empirical study investigates how innovation systems evolve in natural resource industries through analysing the co-evolution bet…

Modes of innovation and differentiated responses to globalisation - a case study of innovation modes in the Agder region, Norway

Published version of an article in the jounal: Journal of the Knowledge Economy. Also available from the publisher at: http://dx.doi.org/10.1007/s13132-011-0060-9 The main argument of this paper is that firms and industries are dominated by different innovation modes and that they therefore respond differently to challenges of globalisation. The paper differentiates between three modes: science, technology and innovation (STI), doing, using and interacting (DUI) application mode and the DUI technological mode. These innovation modes are based on different dominant knowledge bases, modes of learning and external knowledge. What is the implication of these differences with regard to competing…

Can small regions construct regional advantages? The case of four Norwegian regions

Accepted version of an article in the journal: European Urban and Regional Studies. Also availble from the publisher at: http://dx.doi.org/10.1177/0969776412439200 The conceptual framework of constructing regional advantage (CRA) is implicitly relevant for large, well-off regions that have strong regional innovation systems, a diversity of industrial sectors and resourceful firms that can partake in global knowledge networks. This paper discusses the extent to which small regions, with less developed regional innovation systems, may also constitute the basis for developing regional advantage. Four cases of regional industries dominated by different innovation modes make up the empirical tes…

Exogenous sources of regional industrial change

The role of exogenous sources of new path development has been underplayed in the literature on regional industrial change so far. The aim of this article is to explore in a conceptual way under which conditions and in what ways non-local knowledge can lead to new path development in different regional innovation systems (RISs). We distinguish between organizationally thick and diversified RISs, thick and specialized RISs and thin RISs and argue that these types vary substantially in their needs for exogenous sources as well as in their capacities to attract and absorb knowledge generated elsewhere.

Unravelling green regional industrial path development: Regional preconditions, asset modification and agency

Abstract Regions across the world are searching for ways to fashion new green growth paths and to promote green shifts in mature industries. The article aims to explore conceptually and based on illustrative empirical examples from the literature how green restructuring unfolds in regions. We propose a framework that explicates how regional preconditions in form of pre-existing industrial structures, organisational support structures, institutional set-ups and natural assets are transformed into various types of green path development through agentic processes of asset modification.

Nordic City Regions in the Creative Class Debate—Putting the Creative Class Thesis to a Test

The Nordic countries have a quite different urban structure and social systems than the USA. Denmark, Finland, Norway and Sweden may then constitute a critical test of the empirical reach of Richard Florida's much cited creative class thesis beyond its empirical basis in the USA. This paper employs comparative statistics to examine the importance of the quality of place in attracting members of the creative class to Nordic city regions, and it analyses the role of the creative class for regional economic development. Florida's original study focused only on city regions with more than 100,000 inhabitants. Our statistical analyses mainly support Florida's results with regard to these larger …

What Is Regional in Regional Clusters? The Case of the Globally Oriented Oil and Gas Cluster in Agder, Norway

This paper focuses on the question to what extent knowledge sources in regional clusters stimulate the innovation activity of cluster firms. In doing so we contribute to the literature by combining two analytical approaches: by (1) distinguishing firms dominated by different innovation modes; and (2) differentiating between inter-organizational linkages and open knowledge environments as two distinct knowledge sources. Based on data from the Agder equipment supplier industry we demonstrate that mobility of labour, local buzz and inter-organizational linkages are key regional knowledge sources, but clearly more so for some types of firms than others.

From success to failure, the disappearance of clusters: a study of a Norwegian boat-building cluster

Advancing the treatment of human agency in the analysis of regional economic development: Illustrated with three Norwegian cases

Human agency has become a core topic in economic geography complementing traditional, structural approaches to explain regional development. This paper contributes firstly with a discussion of the theoretical and conceptual relationships between the agency of individuals, organizations, and systems. Secondly, it proposes a novel analytical framework for studying how human agency, combined with external changes affects regional economic development, and how regional structural preconditions and external changes explain the activation of change agency. Thirdly, the relevance of the framework is examined through comparative studies of about 20 years of industrial development in three Norwegian…

The challenge of constructing regional advantages in peripheral areas: The case of marine biotechnology in Tromsø, Norway

The idea of constructing regional advantage (CRA) has recently been emphasized by scholars as a new way for firms to gain competitiveness in a globalizing learning economy. The rationale behind the idea is that advantages in a regional industry can be constructed by proactive public–private partnership. This article uses, and examines the relevance of, the CRA framework in analysing the development and functioning of the marine biotechnology industry in Tromso, which is a fairly peripheral region in Norway. Despite the fact that much effort has been put into education and R&D at the University of Tromso and related research institutes, and the fact that many public policy tools have intende…

Regions, networks and innovative performance: The case of knowledge-intensive industries in Norway

Many recent studies maintain that regional characteristics influence the innovative performances, innovation processes and innovation patterns of firms. Based on a representative sample of knowledge-intensive firms in Norway, this paper analyses the innovation output, innovation partners, knowledge sources, and localization of sources and partners for knowledge-intensive firms in three types of region: large urban regions, small urban regions and rural areas.The empirical results contradict some of the assumptions of the literature dealing with agglomeration economies, regional clusters, and so on. We find, for example, that the firms’ innovation partners and knowledge sources are quite sim…

Towards a comprehensive understanding of new regional industrial path development

Path creation is a key concept in economic geography. So far, particularly scholars within evolutionary economic geography have pioneered research on this topic. This paper critically discusses the...

Building national and regional innovation systems: Institutions for economic development - By Jorge Niosi

Knowledge-Intensive Business Service as innovation agent through client interaction and labour mobility

Theoretical propositions often maintain that the Knowledge-Intensive Business Service (KIBS) sector is important in stimulating innovation activity in other industries. Empirical results from quantitative innovation surveys on the other hand generally regard KIBS as less important innovation partners for other firms. Such results may rely on the fact that quantitative surveys do not seize all the roles KIBS firms have as knowledge sources. The paper thus demonstrates that many workers left the KIBS sector in Norway to start working in other sectors during parts of the 1990s, signifying a flow of knowledge following the workers out of the KIBS sector.

New Avenues for Regional Innovation Systems and Policy

Regional innovation systems (RISs) have received increasing interest from researchers and policy makers over the past three decades. The interest is driven partly by advances in theoretical analyses, partly by empirical studies of well-functioning, successful regional economies, partly by the growing interest in innovation as a source of competitive advantage, and partly by the need for new policies to stimulate job growth and lower regional inequalities. This chapter presents the approach of the book to further improve regional innovation studies. The chapter introduces the content of the three parts of the book; (i) theoretical advances on RIS research, (ii) empirical cases of RIS develop…

Competitive firms in thin regions in Norway: The importance of workplace learning

The article departs from empirical studies of two competitive firms in an organisationally thin region in Norway. The main question in the article is how these firms have achieved global competitiveness. The article focuses its inquiry on how the firms organise their innovation activity, giving special attention to the firms' organisational learning and absorptive capacity. It is found that find that workplace learning enables the firms to utilise knowledge in uncommon ways. The learning rests on specific organisational traits in the firms, such as broad participation, long-term on-the-job training, the use of practice-based knowledge in innovation projects, and links to national and global…