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Innovation without Regional Development? The Complex Interplay of Innovation, Institutions, and Development

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  • Pedro Marques
  • Kevin Morgan

Abstract

This article argues that the development of regional innovation concepts, drawing primarily on the experiences of advanced regions, has led to inadequate narratives about the experience of less-developed regions (LDRs). Drawing on the extensive experience of the authors doing research in LDRs, the article develops three main arguments: first it examines the limitations of endogenous approaches to regional development, in particular concerning the role of formal dynamics (within organizations and institutions) in innovation systems. It will be argued that understanding the role of formal dynamics is fundamental to avoid culturally deterministic explanations of regional (under)development and to help design more effective policies. Second, this article will explore the literature that demonstrates the complex interplay between innovation, institutions, and regional development. The authors argue that though innovation is fundamental for long-term economic growth, innovation at firm level is not sufficient to generate development. Third, this article distills the policy implications of the foregoing analysis, namely, by highlighting alternatives to current models of innovation-based, export-based development.

Suggested Citation

  • Pedro Marques & Kevin Morgan, 2021. "Innovation without Regional Development? The Complex Interplay of Innovation, Institutions, and Development," Economic Geography, Taylor & Francis Journals, vol. 97(5), pages 475-496, October.
    • Handle: RePEc:taf:recgxx:v:97:y:2021:i:5:p:475-496
    DOI: 10.1080/00130095.2021.1972801
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    2. Shearmur Richard & Doloreux David, 2022. "Innovation, scaling-up, and local development in peripheral regions: do establishments scale-up locally?," ZFW – Advances in Economic Geography, De Gruyter, vol. 66(4), pages 185-200, November.
    3. Mikhail Martynovich & Teis Hansen & Karl-Johan Lundquist, 2023. "Can foundational economy save regions in crisis?," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 577-599.
    4. Tiganasu, Ramona & Lupu, Dan, 2023. "Institutional quality and digitalization: Drivers in accessing European funds at regional level?," Socio-Economic Planning Sciences, Elsevier, vol. 90(C).
    5. Edeh, Jude & Prévot, Frédéric, 2024. "Beyond funding: The moderating role of firms' R&D human capital on government support and venture capital for regional innovation in China," Technological Forecasting and Social Change, Elsevier, vol. 203(C).

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    More about this item

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • 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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