Some Notes on Institutions in Evolutionary Economic Geography

Within the evolutionary economic geography framework the role of institutions deserves more explicit attention. We argue that territorial institutions are to be viewed as orthogonal to organisational routines in that each territory is characterised by a variety of routines, and in that a single firm can apply its routines in different territorial contexts. It is therefore meaningful to distinguish between institutional economic geography and evolutionary economic geography as their explanans is different. Yet, the two approaches can be combined in a dynamic framework in which institutions co-evolve with organisational routines, particularly in emerging industries. Furthermore, integrating the evolutionary and institutional approach allows one to analyse the spatial diffusion of organisational routines that mediate conflicts between social groups, in particular, those between capitalists and labourers. An evolutionary economic geography advocates an empirical research program, both qualitative and quantitative, in which the relative importance of organisational routines and territorial institutions for regional development can be addressed.