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The Innovative Milieus Approach: Toward a Territorialized Understanding of the Economy?

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Abstract

Space has always been more or less present in economic theories. Nevertheless, traditional approaches, as well as the so-called new economic geography, introduce space subsequently. Economic theories are first built independently of spatial and temporal contexts, for example, through costs varying according to distance. The innovative milieus approach is based on the ideas that space—or, more precisely, territory—is the matrix of economic development and that economic mechanisms transform space. This article describes innovative milieus as an ideal type that articulates three paradigms: the technological paradigm, which stresses innovation, learning, and know-how as the most important competitive advantages; the organizational paradigm, which emphasizes the role of networks, competition, and rules of cooperation, as well as relational capital; and the territorial paradigm, which accounts for the role of proximity and distance and stresses the idea that competition occurs between regions. The originality of the innovative milieus approach is that it considers these three paradigms as a whole, thus providing a stabilized set of concepts that allow for an understanding of economic development processes in their space and time contexts.

Suggested Citation

  • Olivier Crevoisier, 2004. "The Innovative Milieus Approach: Toward a Territorialized Understanding of the Economy?," GRET Publications and Working Papers 10-04, GRET Group of Research in Territorial Economy, University of Neuchâtel.
  • Handle: RePEc:nct:wpaper:10-04
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    References listed on IDEAS

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    1. Geoffrey M. Hodgson, 1998. "The Approach of Institutional Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 166-192, March.
    2. Bjørn T. Asheim, 2007. "Industrial Districts as ‘Learning Regions’: A Condition for Prosperity," Chapters,in: The Learning Region, chapter 4 Edward Elgar Publishing.
    3. O Crevoisier, 1996. "Proximity and territory versus space in regional science," Environment and Planning A, Pion Ltd, London, vol. 28(9), pages 1683-1697, September.
    4. Andr Torre Shaw & Jean-Pierre Gilly, 2000. "On the Analytical Dimension of Proximity Dynamics," Regional Studies, Taylor & Francis Journals, vol. 34(2), pages 169-180.
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    More about this item

    Keywords

    Innovative milieu; territory; innovation; learning;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • L0 - Industrial Organization - - General
    • E0 - Macroeconomics and Monetary Economics - - General
    • A1 - General Economics and Teaching - - General Economics
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

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