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Evolutionary economic geography and its implications for regional innovation policy

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Author Info

  • Ron Boschma

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Abstract

Related variety is important to regional growth because it induces knowledge transfer between complementary sectors at the regional level. This is accomplished through three mechanisms: spinoff dynamics, labor mobility and network formation. They transfer knowledge across related sectors, which contributes to industrial renewal and economic branching in regions. Since these mechanisms of knowledge transfer are basically taking place at the regional level, and because they make regions move into new growth paths while building on their existing assets, regional innovation policy should encourage spinoff activity, labor mobility and network formation. Doing so, policy builds on region-specific assets that provides opportunities but also sets limits to what can be achieved by policy. Public intervention should neither apply Îone-size-fits-allÌ approaches nor adopt Îpicking-the- winnerÌ strategies, but should aim to connect complementary sectors and exploit related variety as a source of regional diversification.

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Bibliographic Info

Paper provided by Utrecht University, Section of Economic Geography in its series Papers in Evolutionary Economic Geography (PEEG) with number 0912.

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Length: 33 pages
Date of creation: Sep 2009
Date of revision: Sep 2009
Handle: RePEc:egu:wpaper:0912

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Related research

Keywords: related variety; evolutionary economic geography; regional innovation systems; regional growth;

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Cited by:
  1. Frederic Wallet & Andre Torre, 2011. "The intriguing question of regional and territorial development in rural areas: analytical variations and Public Policy," ERSA conference papers ersa11p1609, European Regional Science Association.
  2. Martin , Roman & Trippl , Michaela, 2013. "System Failures, Knowledge Bases and Regional Innovation Policies," CIRCLE Electronic Working Papers 2013/13, Lund University, CIRCLE - Center for Innovation, Research and Competences in the Learning Economy.

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