IDEAS home Printed from https://ideas.repec.org/p/egu/wpaper/2532.html

Advancing Institutional Theorizing in Evolutionary Economics

Author

Listed:
  • Ron Boschma
  • Koen Frenken

Abstract

With its focus on innovation, institutions have remain under-theorized in evolutionary economics. This paper aims to contribute to Nelson’s institutional agenda within evolutionary economics in two ways. First, we discuss the core concepts of organizational routines and natural trajectories from an institutional perspective. Second, we pick up on Nelson's co-evolutionary model linking technology, markets and institutions in economic development, and introduce the notion of ‘institutional relatedness’ to understand how institutions both constrain and enable economic development and structural change as well as how institutions channel the direction of institutional change itself.

Suggested Citation

  • Ron Boschma & Koen Frenken, 2025. "Advancing Institutional Theorizing in Evolutionary Economics," Papers in Evolutionary Economic Geography (PEEG) 2532, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2025.
    • Handle: RePEc:egu:wpaper:2532
    as

    Download full text from publisher

    File URL: http://econ.geo.uu.nl/peeg/peeg2532.pdf
    File Function: Version October 2025
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Malerba, Franco, 2002. "Sectoral systems of innovation and production," Research Policy, Elsevier, vol. 31(2), pages 247-264, February.
    2. Richard R. Nelson, 2007. "Institutions and Economic Growth: Sharpening the Research Agenda," Journal of Economic Issues, Taylor & Francis Journals, vol. 41(2), pages 313-323, June.
    3. Frank Neffke & Martin Henning & Ron Boschma, 2011. "How Do Regions Diversify over Time? Industry Relatedness and the Development of New Growth Paths in Regions," Economic Geography, Taylor & Francis Journals, vol. 87(3), pages 237-265, July.
    4. Mariana Mazzucato, 2018. "Mission-oriented innovation policies: challenges and opportunities," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(5), pages 803-815.
    5. Richard R. Nelson, 2002. "special issue: Bringing institutions into evolutionary growth theory," Journal of Evolutionary Economics, Springer, vol. 12(1), pages 17-28.
    6. 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.
    7. Reinstaller, Andreas, 2007. "The division of labor in the firm: Agency, near-decomposability and the Babbage principle," Journal of Institutional Economics, Cambridge University Press, vol. 3(3), pages 293-322, December.
    8. Jeroen Bergh & Sigrid Stagl, 2003. "Coevolution of economic behaviour and institutions: towards a theory of institutional change," Journal of Evolutionary Economics, Springer, vol. 13(3), pages 289-317, August.
    9. Cecilia Rikap & Bengt-Åke Lundvall, 2022. "Big tech, knowledge predation and the implications for development," Innovation and Development, Taylor & Francis Journals, vol. 12(3), pages 389-416, September.
    10. Markus C. Becker & Nathalie Lazaric & Richard R. Nelson & Sidney G. Winter, 2005. "Applying organizational routines in understanding organizational change," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 14(5), pages 775-791, October.
    11. Coriat, Benjamin & Weinstein, Olivier, 2002. "Organizations, firms and institutions in the generation of innovation," Research Policy, Elsevier, vol. 31(2), pages 273-290, February.
    12. Sabine de Graaff & Iris Wanzenböck & Koen Frenken, 2025. "The politics of directionality in innovation policy through the lens of policy process frameworks," Science and Public Policy, Oxford University Press, vol. 52(3), pages 418-432.
    13. Luís Carvalho & Mário Vale, 2018. "Biotech by bricolage? Agency, institutional relatedness and new path development in peripheral regions," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 11(2), pages 275-295.
    14. Koen Frenken & Frank Neffke & Alje van Dam, 2023. "Capabilities, institutions and regional economic development: a proposed synthesis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 405-416.
    15. C. A. Hidalgo & B. Klinger & A. -L. Barabasi & R. Hausmann, 2007. "The Product Space Conditions the Development of Nations," Papers 0708.2090, arXiv.org.
    16. Bruce Kogut & Udo Zander, 1993. "Knowledge of the Firm and the Evolutionary Theory of the Multinational Corporation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 24(4), pages 625-645, December.
    17. Richard Nelson, 1995. "Co-evolution of Industry Structure, Technology and Supporting Institutions, and the Making of Comparative Advantage," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 2(2), pages 171-184.
    18. Matthijs B. Punt & Thomas Bauwens & Koen Frenken & Lars Holstenkamp, 2022. "Institutional relatedness and the emergence of renewable energy cooperatives in German districts," Regional Studies, Taylor & Francis Journals, vol. 56(4), pages 548-562, April.
    19. Bergek, Anna & Jacobsson, Staffan & Carlsson, Bo & Lindmark, Sven & Rickne, Annika, 2008. "Analyzing the functional dynamics of technological innovation systems: A scheme of analysis," Research Policy, Elsevier, vol. 37(3), pages 407-429, April.
    20. Crouch, Colin, 2005. "Capitalist Diversity and Change: Recombinant Governance and Institutional Entrepreneurs," OUP Catalogue, Oxford University Press, number 9780199286652.
    21. Ron Boschma & Koen Frenken, 2009. "Some Notes on Institutions in Evolutionary Economic Geography," Economic Geography, Taylor & Francis Journals, vol. 85(2), pages 151-158, April.
    22. Ron A. Boschma & Koen Frenken, 2006. "Why is economic geography not an evolutionary science? Towards an evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 273-302, June.
    23. Nelson, Richard R. & Winter, Sidney G., 1993. "In search of useful theory of innovation," Research Policy, Elsevier, vol. 22(2), pages 108-108, April.
    24. Koen Frenken & Frank Van Oort & Thijs Verburg, 2007. "Related Variety, Unrelated Variety and Regional Economic Growth," Regional Studies, Taylor & Francis Journals, vol. 41(5), pages 685-697.
    25. Bjørn Asheim & Lars Coenen, 2006. "Contextualising Regional Innovation Systems in a Globalising Learning Economy: On Knowledge Bases and Institutional Frameworks," The Journal of Technology Transfer, Springer, vol. 31(1), pages 163-173, January.
    26. Nelson, Richard R. & Sampat, Bhaven N., 2001. "Making sense of institutions as a factor shaping economic performance," Journal of Economic Behavior & Organization, Elsevier, vol. 44(1), pages 31-54, January.
    27. Andr�s Rodr�guez-Pose, 2013. "Do Institutions Matter for Regional Development?," Regional Studies, Taylor & Francis Journals, vol. 47(7), pages 1034-1047, July.
    28. Geoffrey M. Hodgson, 2006. "What Are Institutions?," Journal of Economic Issues, Taylor & Francis Journals, vol. 40(1), pages 1-25, March.
    29. Luis Carvalho & Mario Vale, 2018. "Biotech by Bricolage? Agency, institutional relatedness and new path development in peripheral regions," Papers in Evolutionary Economic Geography (PEEG) 1801, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jan 2018.
    30. Julie Battilana & Bernard Leca & Eva Boxenbaum, 2009. "How actors change institutions : Towards a theory of institutional entrepreneurship," Post-Print hal-00576509, HAL.
    31. Nelson, Richard R., 2008. "What enables rapid economic progress: What are the needed institutions," Research Policy, Elsevier, vol. 37(1), pages 1-11, February.
    32. Cecilia Rikap, 2024. "Intellectual monopolies as a new pattern of innovation and technological regime," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 33(5), pages 1037-1062.
    33. Albin Skog & Örjan Sölvell, 2020. "The dark side of agglomeration, sustained wealth and transposition of trading institutions—the case of Bordeaux in the 18th and 19th centuries," Journal of Economic Geography, Oxford University Press, vol. 20(1), pages 67-91.
    34. Meric Gertler, 2010. "Rules of the Game: The Place of Institutions in Regional Economic Change," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 1-15.
    Full references (including those not matched with items on IDEAS)

    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. Ron Boschma, 2025. "A new evolutionary perspective on institutional complementarities and regional development," Papers in Evolutionary Economic Geography (PEEG) 2514, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2025.
    2. 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.
    3. Markus Grillitsch, 2014. "Regional Transformation: Institutional Change and Economic Evolution in Regions," ERSA conference papers ersa14p1481, European Regional Science Association.
    4. Ron Boschma & Ron Martin, 2010. "The Aims and Scope of Evolutionary Economic Geography," Chapters, in: Ron Boschma & Ron Martin (ed.), The Handbook of Evolutionary Economic Geography, chapter 1, Edward Elgar Publishing.
    5. Grillitsch, Markus, 2014. "Institutional Change and Economic Evolution in Regions," Papers in Innovation Studies 2014/1, Lund University, CIRCLE - Centre for Innovation Research.
    6. Ron Boschma & Koen Frenken, 2011. "The emerging empirics of evolutionary economic geography," Journal of Economic Geography, Oxford University Press, vol. 11(2), pages 295-307, March.
    7. 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.
    8. Kazuo Kadokawa, 2025. "The role of large manufactures and local suppliers in industrial growth and regional diversification: the automobile industry in Kyushu, Japan," Evolutionary and Institutional Economics Review, Springer, vol. 22(2), pages 445-463, September.
    9. 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.
    10. Boschma, Ron & Capone, Gianluca, 2015. "Institutions and diversification: Related versus unrelated diversification in a varieties of capitalism framework," Research Policy, Elsevier, vol. 44(10), pages 1902-1914.
    11. Simón Sánchez‐Moral & Mário Vale & Alfonso Arellano, 2022. "Skill‐Relatedness and Regional Economic Development in Spain during the International Crisis and the Post‐Crisis Period," Papers in Regional Science, Wiley Blackwell, vol. 101(3), pages 573-602, June.
    12. Danny MacKinnon & Andrew Cumbers & Andy Pike & Kean Birch & Robert McMaster, 2009. "Evolution in Economic Geography: Institutions, Political Economy, and Adaptation," Economic Geography, Clark University, vol. 85(2), pages 129-150, April.
    13. Eduardo Hernandez-Rodriguez, 2024. "Technological diversification through global value chains in European regions," Papers in Evolutionary Economic Geography (PEEG) 2429, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2024.
    14. Koen Frenken & Frank Neffke & Alje van Dam, 2023. "Capabilities, institutions and regional economic development: a proposed synthesis," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 16(3), pages 405-416.
    15. Koen Frenken & Frank Neffke, 2024. "Economic Geography and Complexity Theory," Papers in Evolutionary Economic Geography (PEEG) 2431, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Oct 2024.
    16. Ron Boschma, 2017. "A concise history of the knowledge base literature: challenging questions for future research," Papers in Evolutionary Economic Geography (PEEG) 1721, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Sep 2017.
    17. Jun Zhang, 2011. "Related Variety, Global Connectivity and Institutional Embeddedness: Internet Development in Beijing and Shanghai Compared," Papers in Evolutionary Economic Geography (PEEG) 1110, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Jun 2011.
    18. Jonas Heiberg & Bernhard Truffer, 2021. "The emergence of a global innovation system – a case study from the water sector," GEIST - Geography of Innovation and Sustainability Transitions 2021(09), GEIST Working Paper Series.
    19. Martin, Ben R. & Steinmueller, W. Edward, 2025. "Richard R Nelson (1930–2025): Evolutionary economist and innovation scholar," Research Policy, Elsevier, vol. 54(4).
    20. Jürgen Essletzbichler, 2013. "Relatedness, industrial branching and technological cohesion in U.S. metropolitan areas," Papers in Evolutionary Economic Geography (PEEG) 1307, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised May 2013.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

    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:egu:wpaper:2532. 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: the person in charge The email address of this maintainer does not seem to be valid anymore. Please ask the person in charge to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/deguunl.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.