IDEAS home Printed from https://ideas.repec.org/p/hhs/lucirc/2016_026.html
   My bibliography  Save this paper

Innovation Policies and New Regional Growth Paths: A place-based system failure framework

Author

Listed:
  • Grillitsch, Markus

    (CIRCLE, Lund University)

  • Trippl, Michaela

    (Department of Geography and Regional Research, University of Vienna)

Abstract

Regional economies are increasingly facing the challenge to renew their economic structures and generate innovations that break existing development paths. This calls for new innovation policy approaches that are well equipped to foster the modernisation of existing industries and nurture the development of new ones. The aim of this chapter is to provide a comprehensive place-based system failure framework for an innovation policy design that is suitable to initiate and support economic renewal processes in different region-specific contexts. Our framework rests on three pillars. The first one draws a distinction between barriers that relate to rigidities of the current industrial, knowledge and institutional structures on the one hand and impediments that hinder the emergence of new development paths on the other hand. The second conceptual cornerstone differentiates between various forms of new path development, namely path upgrading, modernization, branching, importation and new path creation. Third, to capture varying regional characteristics, we distinguish between thin, thick and specialised and thick and diversified regions. Our conceptual discussion demonstrates that each region type suffers from particular combinations of barriers to structural change. This offers a sound basis for assessing which types of new path development are most likely to occur in thin, thick and specialised and thick and diversified regions and for identifying promising policy approaches to fashion regional structural change in various regional contexts.

Suggested Citation

  • Grillitsch, Markus & Trippl, Michaela, 2016. "Innovation Policies and New Regional Growth Paths: A place-based system failure framework," Papers in Innovation Studies 2016/26, Lund University, CIRCLE - Centre for Innovation Research.
  • Handle: RePEc:hhs:lucirc:2016_026
    as

    Download full text from publisher

    File URL: http://wp.circle.lu.se/upload/CIRCLE/workingpapers/201626_grillitsch_et_al.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Weber, K. Matthias & Rohracher, Harald, 2012. "Legitimizing research, technology and innovation policies for transformative change," Research Policy, Elsevier, vol. 41(6), pages 1037-1047.
    2. Markus Grillitsch & Roman Martin & Martin Srholec, 2017. "Knowledge Base Combinations and Innovation Performance in Swedish Regions," Economic Geography, Taylor & Francis Journals, vol. 93(5), pages 458-479, October.
    3. Koen Frenken & Ron A. Boschma, 2007. "A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process," Journal of Economic Geography, Oxford University Press, vol. 7(5), pages 635-649, September.
    4. Danny MacKinnon, 2012. "Beyond strategic coupling: reassessing the firm-region nexus in global production networks," Journal of Economic Geography, Oxford University Press, vol. 12(1), pages 227-245, January.
    5. Masahiko Aoki, 2013. "The Contingent Governance Of Teams: Analysis Of Institutional Complementarity," Chapters, in: Comparative Institutional Analysis, chapter 14, pages 230-249, Edward Elgar Publishing.
    6. Trippl , Michaela & Grillitsch , Markus & Isaksen , Arne, 2015. "External “energy” for regional industrial change: attraction and absorption of non-local knowledge for new path development," Papers in Innovation Studies 2015/47, Lund University, CIRCLE - Centre for Innovation Research.
    7. Rune Dahl Fitjar & Andrés Rodríguez-Pose, 2014. "When local interaction does not suffice: sources of firm innovation in urban Norway," Chapters, in: André Torre & Frédéric Wallet (ed.), Regional Development and Proximity Relations, chapter 5, pages 195-222, Edward Elgar Publishing.
    8. Kevin Morgan, 2007. "The Learning Region: Institutions, Innovation and Regional Renewal," Regional Studies, Taylor & Francis Journals, vol. 41(sup1), pages 147-159.
    9. Markus Grillitsch & Michaela Trippl, 2014. "Combining Knowledge from Different Sources, Channels and Geographical Scales," European Planning Studies, Taylor & Francis Journals, vol. 22(11), pages 2305-2325, November.
    10. Markus Grillitsch & Magnus Nilsson, 2017. "Firm performance in the periphery: on the relation between firm-internal knowledge and local knowledge spillovers," Regional Studies, Taylor & Francis Journals, vol. 51(8), pages 1219-1231, August.
    11. Maskell, Peter & Malmberg, Anders, 1999. "Localised Learning and Industrial Competitiveness," Cambridge Journal of Economics, Oxford University Press, vol. 23(2), pages 167-185, March.
    12. Michaela Trippl & Anne Otto, 2009. "How to Turn the Fate of Old Industrial Areas: A Comparison of Cluster-Based Renewal Processes in Styria and the Saarland," Environment and Planning A, , vol. 41(5), pages 1217-1233, May.
    13. Meric S. Gertler, 2003. "Tacit knowledge and the economic geography of context, or The undefinable tacitness of being (there)," Journal of Economic Geography, Oxford University Press, vol. 3(1), pages 75-99, January.
    14. Stuart Dawley, 2014. "Creating New Paths? Offshore Wind, Policy Activism, and Peripheral Region Development," Economic Geography, Clark University, vol. 90(1), pages 91-112, January.
    15. Markus Grillitsch & Bjørn T. Asheim, 2017. "Cluster policy: Renewal through the integration of institutional variety," Chapters, in: Dirk Fornahl & Robert Hassink (ed.), The Life Cycle of Clusters, chapter 4, pages 76-94, Edward Elgar Publishing.
    16. Hall, Peter A. & Gingerich, Daniel W., 2009. "Varieties of Capitalism and Institutional Complementarities in the Political Economy: An Empirical Analysis," British Journal of Political Science, Cambridge University Press, vol. 39(3), pages 449-482, July.
    17. Robert Hassink, 2005. "How to unlock regional economies from path dependency? From learning region to learning cluster," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 521-535, June.
    18. Franz Tödtling & Markus Grillitsch, 2015. "Does Combinatorial Knowledge Lead to a Better Innovation Performance of Firms?," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1741-1758, September.
    19. Julie Battilana & Bernard Leca & Eva Boxenbaum, 2009. "How actors change institutions : Towards a theory of institutional entrepreneurship," Post-Print hal-00576509, HAL.
    20. Simone Strambach & Benjamin Klement, 2011. "Cumulative and Combinatorial Micro-dynamics of Knowledge: The Role of Space and Place in Knowledge Integration," European Planning Studies, Taylor & Francis Journals, vol. 20(11), pages 1843-1866, November.
    21. Ron Boschma & Ron Martin (ed.), 2010. "The Handbook of Evolutionary Economic Geography," Books, Edward Elgar Publishing, number 12864.
    22. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Clark University, vol. 90(4), pages 403-427, October.
    23. Israel M. Kirzner, 1997. "Entrepreneurial Discovery and the Competitive Market Process: An Austrian Approach," Journal of Economic Literature, American Economic Association, vol. 35(1), pages 60-85, March.
    24. Anne Ter Wal & Ron Boschma, 2011. "Co-evolution of Firms, Industries and Networks in Space," Regional Studies, Taylor & Francis Journals, vol. 45(7), pages 919-933.
    25. James Simmie, 2003. "Innovation and Urban Regions as National and International Nodes for the Transfer and Sharing of Knowledge," Regional Studies, Taylor & Francis Journals, vol. 37(6-7), pages 607-620.
    26. Elena Zukauskaite & Jerker Moodysson, 2016. "Multiple paths of development: knowledge bases and institutional characteristics of the Swedish food sector," European Planning Studies, Taylor & Francis Journals, vol. 24(3), pages 589-606, March.
    27. Björn T. Asheim & Markus Grillitsch & Michaela Trippl, 2016. "Regional innovation systems: past – present – future," Chapters, in: Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), Handbook on the Geographies of Innovation, chapter 2, pages 45-62, Edward Elgar Publishing.
    28. Markku Sotarauta & Nina Mustikkamäki, 2015. "Institutional Entrepreneurship, Power, and Knowledge in Innovation Systems: Institutionalization of Regenerative Medicine in Tampere, Finland," Environment and Planning C, , vol. 33(2), pages 342-357, April.
    29. Ron Martin & Peter Sunley, 2006. "Path dependence and regional economic evolution," Journal of Economic Geography, Oxford University Press, vol. 6(4), pages 395-437, August.
    30. Isaksen, Arne & Tödtling, Franz & Trippl, Michaela, 2016. "Innovation policies for regional structural change: Combining actor-based and system-based strategies," SRE-Discussion Papers 2016/05, WU Vienna University of Economics and Business.
    31. Ron Martin, 2010. "Roepke Lecture in Economic Geography—Rethinking Regional Path Dependence: Beyond Lock-in to Evolution," Economic Geography, Taylor & Francis Journals, vol. 86(1), pages 1-27, January.
    32. Geels, Frank W., 2004. "From sectoral systems of innovation to socio-technical systems: Insights about dynamics and change from sociology and institutional theory," Research Policy, Elsevier, vol. 33(6-7), pages 897-920, September.
    33. Simona Iammarino, 2005. "An evolutionary integrated view of Regional Systems of Innovation: Concepts, measures and historical perspectives," European Planning Studies, Taylor & Francis Journals, vol. 13(4), pages 497-519, June.
    34. Bjørn T. Asheim & Jerker Moodysson & Franz TÖdtling, 2011. "Constructing Regional Advantage: Towards State-of-the-Art Regional Innovation System Policies in Europe?," European Planning Studies, Taylor & Francis Journals, vol. 19(7), pages 1133-1139, July.
    35. Anne Nygaard Tanner, 2014. "Regional Branching Reconsidered: Emergence of the Fuel Cell Industry in European Regions," Economic Geography, Taylor & Francis Journals, vol. 90(4), pages 403-427, October.
    36. Stuart Dawley, 2014. "Creating New Paths? Offshore Wind, Policy Activism, and Peripheral Region Development," Economic Geography, Taylor & Francis Journals, vol. 90(1), pages 91-112, January.
    37. Steven Klepper, 2007. "Disagreements, Spinoffs, and the Evolution of Detroit as the Capital of the U.S. Automobile Industry," Management Science, INFORMS, vol. 53(4), pages 616-631, April.
    38. Markus Grillitsch & Josephine V Rekers, 2016. "How does multi-scalar institutional change affect localized learning processes? A case study of the med-tech sector in Southern Sweden," Environment and Planning A, , vol. 48(1), pages 154-171, January.
    39. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    40. Todtling, Franz & Trippl, Michaela, 2005. "One size fits all?: Towards a differentiated regional innovation policy approach," Research Policy, Elsevier, vol. 34(8), pages 1203-1219, October.
    41. Markus Grillitsch, 2015. "Institutional Layers, Connectedness and Change: Implications for Economic Evolution in Regions," European Planning Studies, Taylor & Francis Journals, vol. 23(10), pages 2099-2124, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Grillitsch, Markus, 2018. "Place-based entrepreneurship and innovation policy for industrial diversification," Papers in Innovation Studies 2018/3, Lund University, CIRCLE - Centre for Innovation Research.
    2. Strambach, Simone & Pflitsch, Gesa, 2020. "Transition topology: Capturing institutional dynamics in regional development paths to sustainability," Research Policy, Elsevier, vol. 49(7).
    3. Bjorn T. ASHEIM & Sverre J. HERSTAD, 2021. "Regional innovation strategy for resilience and transformative industrial path development: evolutionary theoretical perspectives on innovation policy," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 12, pages 43-75, August.
    4. Markus Grillitsch & Bjørn Asheim & Michaela Trippl, 2018. "Unrelated knowledge combinations: the unexplored potential for regional industrial path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 257-274.
    5. Grillitsch, Markus & Hansen, Teis, 2018. "Green industrial path development in different types of regions," Papers in Innovation Studies 2018/11, Lund University, CIRCLE - Centre for Innovation Research.
    6. Wilde, Kerstin & Hermans, Frans, 2021. "Innovation in the bioeconomy: Perspectives of entrepreneurs on relevant framework conditions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 314.
    7. Grillitsch, Markus & Sotarauta, Markku, 2018. "Regional Growth Paths: From Structure to Agency and Back," Papers in Innovation Studies 2018/1, Lund University, CIRCLE - Centre for Innovation Research.
    8. Yijia Chen & Robert Hassink, 2019. "Multi-scalar knowledge bases for new regional industrial path development: Toward a typology," PEGIS geo-disc-2019_10, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Grillitsch, Markus & Asheim, Bjørn & Nielsen, Hjalti, 2019. "Does long-term proactive agency matter for regional development?," Papers in Innovation Studies 2019/16, Lund University, CIRCLE - Centre for Innovation Research.
    2. Ron Boschma, 2017. "Relatedness as driver behind regional diversification: a research agenda," Papers in Evolutionary Economic Geography (PEEG) 1702, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2017.
    3. Grillitsch, Markus, 2017. "Transformation Capacity of the Innovative Entrepreneur: On the interplay between social structure and agency," Papers in Innovation Studies 2017/2, Lund University, CIRCLE - Centre for Innovation Research.
    4. Ron Boschma & Koen Frenken, 2015. "Evolutionary Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 1518, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2015.
    5. Grillitsch, Markus & Sotarauta, Markku, 2018. "Regional Growth Paths: From Structure to Agency and Back," Papers in Innovation Studies 2018/1, Lund University, CIRCLE - Centre for Innovation Research.
    6. Björn T. Asheim & Markus Grillitsch & Michaela Trippl, 2016. "Regional innovation systems: past – present – future," Chapters, in: Richard Shearmu & Christophe Carrincazeaux & David Doloreux (ed.), Handbook on the Geographies of Innovation, chapter 2, pages 45-62, Edward Elgar Publishing.
    7. Arne Isaksen & Franz Tödtling & Michaela Trippl, 2016. "Innovation policies for regional structural change: Combining actor-based and system-based strategies," SRE-Disc sre-disc-2016_05, Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business.
    8. Markus Grillitsch & Bjørn Asheim & Michaela Trippl, 2018. "Unrelated knowledge combinations: the unexplored potential for regional industrial path development," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 257-274.
    9. Grillitsch, Markus, 2014. "Institutional Change and Economic Evolution in Regions," Papers in Innovation Studies 2014/1, Lund University, CIRCLE - Centre for Innovation Research.
    10. Markus Grillitsch, 2014. "Regional Transformation: Institutional Change and Economic Evolution in Regions," ERSA conference papers ersa14p1481, European Regional Science Association.
    11. Grillitsch, Markus & Hansen, Teis, 2018. "Green industrial path development in different types of regions," Papers in Innovation Studies 2018/11, Lund University, CIRCLE - Centre for Innovation Research.
    12. Grillitsch, Markus, 2018. "Place-based entrepreneurship and innovation policy for industrial diversification," Papers in Innovation Studies 2018/3, Lund University, CIRCLE - Centre for Innovation Research.
    13. Ron Boschma, 2015. "Towards an Evolutionary Perspective on Regional Resilience," Regional Studies, Taylor & Francis Journals, vol. 49(5), pages 733-751, May.
    14. Coenen, Lars & Grillitsch, Markus & Hansen, Teis & Moodysson, Jerker, 2017. "An innovation system framework for system innovation policy: the case of Strategic Innovation Programs (SIPs) in Sweden," Papers in Innovation Studies 2017/8, Lund University, CIRCLE - Centre for Innovation Research.
    15. Markus Grillitsch & Josephine Rekers & Franz Tödtling, 2019. "When drivers of clusters shift scale from local towards global: What remains for regional innovation policy?," PEGIS geo-disc-2019_03, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    16. Simon Baumgartinger-Seiringer & Johan Miörner & Michaela Trippl, 2019. "Towards a stage model of regional industrial path transformation," PEGIS geo-disc-2019_11, Institute for Economic Geography and GIScience, Department of Socioeconomics, Vienna University of Economics and Business.
    17. Ron Boschma, Lars Coenen, Koen Frenken, Bernhard Truffer & Lars Coenen & Koen Frenken & Bernhard Truffer, 2016. "Towards a theory of regional diversification," Papers in Evolutionary Economic Geography (PEEG) 1617, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jul 2016.
    18. Ron Boschma, 2018. "The geographical dimension of structural change," Papers in Evolutionary Economic Geography (PEEG) 1839, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Nov 2018.
    19. 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.
    20. Joan Crespo, 2021. "Agencies, scales and times of path creation: The case of IoT in Toulouse," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(5), pages 1527-1545, October.

    More about this item

    Keywords

    regional innovation policy; place-based system failures; regional structural change; new regional industrial path development;
    All these keywords.

    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • 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
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:lucirc:2016_026. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Torben Schubert (email available below). General contact details of provider: https://edirc.repec.org/data/circlse.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.