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Towards an Evolutionary Perspective on Institutions in Economic Geography

Author

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  • Ron Boschma

Abstract

There is a long-standing body of literature on the role of institutions for regional development in which it is common to treat institutions as static and as if they operate in isolation. We present an evolutionary perspective on institutions instead. We propose a dynamic and systemic framework on institutions that focuses on complementarities and institutional change. This allows to take up questions in economic geography that have not yet been fully addressed: (1) how complementarities across institutions affect the ability of regions to diversify into new activities; (2) how an complementarity framework on institutions sheds light on the question what is possible, and what is not, when implementing institutional change in territorial contexts; and (3) how such a framework may contribute to a better understanding of how changes in regional innovation or mission- oriented policies may, or may not, become effective. Doing so, the paper aims to contribute to the further integration of institutions in Evolutionary Economic Geography.

Suggested Citation

  • Ron Boschma, 2025. "Towards an Evolutionary Perspective on Institutions in Economic Geography," Papers in Evolutionary Economic Geography (PEEG) 2527, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2025.
    • Handle: RePEc:egu:wpaper:2527
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    File URL: http://econ.geo.uu.nl/peeg/peeg2527.pdf
    File Function: Version August 2025
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    Keywords

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    JEL classification:

    • B15 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Historical; Institutional; Evolutionary
    • B52 - Schools of Economic Thought and Methodology - - Current Heterodox Approaches - - - Historical; Institutional; Evolutionary; Modern Monetary Theory;
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • P51 - Political Economy and Comparative Economic Systems - - Comparative Economic Systems - - - Comparative Analysis of Economic Systems
    • 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

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