Buzz, Archipelago Economies and the Future of Intermediate and Peripheral Areas in a Spiky World

In a world where large urban agglomerations are increasingly regarded by scholars and policy-makers alike as the engines of economic development, the options at the disposal of intermediate and peripheral areas are dwindling. Doing nothing is, according to the dominating theories, likely to result in a steady decline which may jeopardize their very economic viability. Adopting active measures is thus the way forward. In this paper, we argue that the main solution being proposed—interactive learning through the promotion of local agglomeration (buzz option)—may yield limited results, if at all, as it would stifle the circulation of new knowledge and lead to lock-in. By contrast, promoting interaction outside the comfort zone of geographical, cognitive, social and institutional proximity (pipeline option) is more likely to succeed in generating interactive learning and in facilitating the generation, diffusion and absorption of innovation. We illustrate this point by resorting to the case of firm innovation in Norwegian city regions.