Skip to main content

Innovation Policies for Regional Structural Change: Combining Actor-Based and System-Based Strategies

  • Chapter
  • First Online:
New Avenues for Regional Innovation Systems - Theoretical Advances, Empirical Cases and Policy Lessons

Abstract

This chapter analyses opportunities and challenges for regional innovation policies designed to promote new path development in different types of regional innovation systems (RISs). RISs differ enormously in their capacity to develop new growth paths due to pronounced differences in endogenous potentials and varying abilities to attract and absorb exogenous sources for new path development. We distinguish between different types of regional industrial path development, which reflect various degrees of radicalness of regional structural change. The chapter offers a conceptual analysis of conditions and influences that enable and constrain new path development in different types of RISs and outlines the contours of policy strategies that are suitable for promoting new path development in different RISs. Regarding policy strategies, a distinction is drawn between system-based and actor-based policy approaches. System-based strategies aim to improve the functioning of the RIS by targeting system failures, promoting local and non-local knowledge flows and adapting the organizational and institutional set-up of the RIS. Actor-based strategies, in contrast, support entrepreneurs and innovation projects by firms and other stakeholders. We argue that both strategies will have only a limited impact on regional economic change when applied alone. However, if they are combined, they are well suited to promote new path development. The chapter discusses which specific combinations of system-based and actor-based policy strategies matter for different types of RISs.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 99.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 129.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD 199.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  • Asheim, B. T., & Gertler, M. (2005). The geography of innovation: Regional innovation systems. In J. Fagerberg, D. C. Mowery, & R. Nelson (Eds.), The Oxford handbook of innovation (pp. 291–317). Oxford: Oxford University Press.

    Google Scholar 

  • Asheim, B. T., Isaken, I., Nauwelaers, C., & Tödtling, F. (Eds.). (2003). Regional innovation policy for small-medium enterprises. Cheltenham: Edward Elgar.

    Google Scholar 

  • Asheim, A., Boschma, R., & Cooke, P. (2011). Constructing regional advantage: Platform policies based on related variety and differentiated knowledge bases. Regional Studies, 45(7), 893–904.

    Article  Google Scholar 

  • Bathelt, H. (2001). Regional competence and economic recovery: Divergent growth paths in Boston’s high technology economy. Entrepreneurship & Regional Development, 13(4), 287–314.

    Article  Google Scholar 

  • Bathelt, H., Kogler, D. F., & Munro, A. K. (2010). A knowledge-based typology of university spin-offs in the context of regional economic development. Technovation, 30(9), 519–532.

    Article  Google Scholar 

  • Belussi, F., & Sedita, S. R. (2009). Life cycle vs. multiple path dependency in industrial districts. European Planning Studies, 17(4), 505–528.

    Article  Google Scholar 

  • Binz, C., Truffer, B., & Coenen, L. (2015). Path creation as a process of resource alignment and anchoring: Industry formation for on-site water recycling in Beijing. Economic Geography, 92(2), 172–200.

    Article  Google Scholar 

  • Boschma, R. (2015). Towards an evolutionary perspective on regional resilience. Regional Studies, 49(5), 733–751.

    Article  Google Scholar 

  • Boschma, R. (2017). Relatedness as driver of regional diversification: A research agenda. Regional Studies, 51(3), 351–364.

    Article  Google Scholar 

  • Boschma, R., & Frenken, K. (2011). Technological relatedness and regional branching. In H. Bathelt, M. Feldman, & D. Kogler (Eds.), Beyond territory. Dynamic geographies of knowledge creation, diffusion, and innovation (pp. 64–81). London: Routledge.

    Google Scholar 

  • Boschma, R., & Wenting, R. (2007). The spatial evolution of the British automobile industry does location matter? Industrial and Corporate Change, 16(2), 213–238.

    Article  Google Scholar 

  • Boschma, R., Coenen, L., Frenken, K., & Truffer, B. (2017). Towards a theory of regional diversification: Combining insights from evolutionary economic geography and transitions studies. Regional Studies, 51(1), 31–45.

    Article  Google Scholar 

  • Capello, R., & Lenzi, C. (2015). The knowledge–innovation Nexus. Its spatially differentiated returns to innovation. Growth and Change, 46(3), 379–399.

    Article  Google Scholar 

  • Cooke, P., Uranga, M. G., & Etxebarria, G. (1997). Regional innovation systems: Instituional and organisational dimensions. Research Policy, 26, 475–491.

    Article  Google Scholar 

  • Cooke, P., Heidenreich, M., & Braczyk, H. J. (Eds.). (2004). Regional innovation systems (2nd ed.). London: Routledge.

    Google Scholar 

  • Cusmano, L., Morrison, A., & Pandolfo, E. (2015). Spin-off and clustering: A return to the Marshallian district. Cambridge Journal of Economics, 39, 49–66.

    Article  Google Scholar 

  • Dawley, S. (2014). Creating new paths? Offshore wind, policy activism, and peripheral region development. Economic Geography, 90(1), 91–112.

    Article  Google Scholar 

  • Dawley, S., MacKinnon, D., Cumbers, A., & Pike, A. (2015). Policy activism and regional path creation: The promotion of offshore wind in North East England and Scotland. Cambridge Journal of Regions, Economy and Society, 8(2), 257–272.

    Article  Google Scholar 

  • European Commission, E. (2012). Guide to research and innovation strategies for smart specialisations (RIS3). Luxembourg: Publications Office of the European Union.

    Google Scholar 

  • Fagerberg, J. (2017). Innovation policy: Rationales, lessons and challenges. Journal of Economic Surveys, 31(2), 497–512.

    Article  Google Scholar 

  • Feldman, M. (2007). Perspectives on entrepreneurship and cluster formation: Biotechnology in the US Capitol region. In K. Polenske (Ed.), The economic geography of innovation (pp. 241–260). Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Foray, D. (2015). Smart specialization: Opportunities and challenges for regional innovation policies. Abingdon: Routledge.

    Google Scholar 

  • Frenken, K., Van Oort, F., & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional Studies, 41(5), 685–697.

    Article  Google Scholar 

  • Giuliani, E., & Bell, M. (2005). The micro-determinants of meso-level learning and innovation: Evidence from a Chilean wine cluster. Research Policy, 34(1), 47–68.

    Article  Google Scholar 

  • Grabher, G. (1993). The weakness of strong ties: The lock-in of regional development in the Ruhr area. In G. Grabher (Ed.), The embedded firm: On the socioeconomics of industrial networks (pp. 255–277). London: Routledge.

    Google Scholar 

  • Grabher, G. (2002). Cool projects, boring institutions temporary collaboration in social context. Regional Studies, 36, 205–214.

    Article  Google Scholar 

  • Grillitsch, M., & Nilsson, M. (2015). Innovation in peripheral regions: Do collaborations compensate for a lack of local knowledge spillovers? The Annals of Regional Science, 54, 299–321.

    Article  Google Scholar 

  • Hassink, R. (2005). How to unlock regional economies from path dependency? From learning region to learning cluster. European Planning Studies, 13(4), 521–535.

    Article  Google Scholar 

  • Hassink, R. (2010). Locked in decline? On the role of regional lock-ins in old industrial areas. In R. Boschma & R. Martin (Eds.), The handbook of evolutionary economic geography (pp. 450–468). Cheltenham: Edward Elgar.

    Google Scholar 

  • Isaksen, A. (2015). Industrial development in thin regions: Trapped in path extension. Journal of Economic Geography, 15(3), 585–600.

    Article  Google Scholar 

  • Isaksen, A., & Karlsen, J. (2013). Can small regions construct regional advantages? The case of four Norwegian regions. European Urban and Regional Studies, 20(2), 243–257.

    Article  Google Scholar 

  • Isaksen, A., & Trippl, M. (2016a). Path development in different regional innovation systems. In M. D. Parrilli, R. D. Fitjar, & A. Rodriguez-Pose (Eds.), Innovation drivers and regional innovation strategies (pp. 66–84). New York and London: Routledge.

    Google Scholar 

  • Isaksen, A., & Trippl, M. (2016b). Exogenously led and policy supported new path development in peripheral regions: Analytical and synthetic routes. Economic Geography, 93(5), 436–457.

    Article  Google Scholar 

  • Jensen, M. B., Johnson, B., Lorenz, E., & Lundvall, B. Å. (2007). Forms of knowledge and modes of innovation. Research Policy, 36, 680–693.

    Article  Google Scholar 

  • Klepper, S. (2007). Disagreements, spinoffs, and the evolution of Detroit as the capital of the US automobile industry. Management Science, 53(4), 616–631.

    Article  Google Scholar 

  • Malecki, E. J. (2012). Regional social capital: Why it matters. Regional Studies, 46(8), 1023–1039.

    Article  Google Scholar 

  • Martin, R. (2010). Roepke lecture in economic geography—rethinking regional path dependence: Beyound lock-in to evolution. Economic Geography, 86(1), 1–27.

    Article  Google Scholar 

  • Martin, R., & Simmie, J. (2008). Path dependence and local innovation system in city-regions. Innovation: Management, Policy & Practice, 10(2–3), 183–196.

    Article  Google Scholar 

  • Martin, R., & Sunley, P. (2006). Path dependence and regional economic evolution. Journal of Economic Geography, 64(4), 395–437.

    Article  Google Scholar 

  • Miörner, J., & Trippl, M. (2017). Paving the way for new regional industrial paths: Actors and modes of change in Scania’s games industry. European Planning Studies, 25(3), 481–497.

    Article  Google Scholar 

  • Monsson, C. K. (2014). Development without a metropolis: Inspiration for non-metropolitan support practices from Denmark. Local Economy. OnlineFirst Version. https://doi.org/10.1177/0269094214532903

  • Morgan, K. (2016). Nurturing novelty: Regional innovation policy in the age of smart specialisation. Environment and Planning C: Government and Policy. https://doi.org/10.1177/0263774X16645106

  • Neffke, F., Henning, M., & Boschma, R. (2011). How do regions diversify over time? Industry relatedness and the development of new growth paths in regions. Economic Geography, 87(3), 237–265.

    Article  Google Scholar 

  • Neffke, F., Hartog, M., Boschma, R., & Henning, M. (2014). Agents of structural change. The role of firms and entrepreneurs in regional diversification. Papers in Evolutionary Economic Geography No. 1410. Utrecht University, Section of Economic Geography.

    Google Scholar 

  • O’Gorman, C., & Kautonen, M. (2004). Policies to promote new knowledge-intensive industrial agglomerations. Entrepreneurship & Regional Development, 16(6), 459–479.

    Article  Google Scholar 

  • O’Malley, E., & O’Gorman, E. (2001). Competitive advantage in the Irish indigenous software industry and the role of inward foreign direct investment. European Planning Studies, 9(3), 303–321.

    Article  Google Scholar 

  • Parilli, M. D., Fitjar, R. D., & Rodrigues-Pose, A. (2016). Innovation drivers and regional innovation strategies. Territorial and business insights. In M. D. Parilli, R. D. Fitjar, & A. Rodrigues-Pose (Eds.), Innovation drivers and regional innovation strategies (pp. 1–19). New York: Routledge.

    Google Scholar 

  • Petrov, A. N. (2011). Beyond spillovers. Interrogating innovation and creativity in the peripheries. In H. Bathelt, M. P. Feldman, & D. T. Kogler (Eds.), Beyond territory. Dynamic geographies of knowledge creation, diffusion, and innovation (pp. 168–190). London: Routledge.

    Google Scholar 

  • Rigby, D. L., & Brown, W. M. (2015). Who benefits from agglomeration? Regional Studies, 49(1), 28–43.

    Article  Google Scholar 

  • Rodrik, D. (2004). Industrial policy for the twenty-first century. CEPR Discussion Paper No. 4767.

    Google Scholar 

  • Simmie, J. (2012). Path dependence and new technological path creation in the Danish wind power industry. European Planning Studies, 20(5), 753–772.

    Article  Google Scholar 

  • Simmie, J., & Martin, R. (2010). The economic resilience of regions: Towards an evolutionary approach. Cambridge Journal of Regions, Economy and Society, 3(1), 27–43.

    Article  Google Scholar 

  • Tanner, A. (2014). Regional branching reconsidered. Emergence of the fuel cell industry in European Regions. Economic Geography, 90(4), 403–427.

    Article  Google Scholar 

  • Tödtling, F. (1994). Regional networks of high-technology firms—the case of the greater Boston region. Technovation, 14(5), 323–343.

    Article  Google Scholar 

  • Tödtling, F., & Trippl, M. (2005). One size fits all? Towards a differentiated regional innovation policy approach. Research Policy, 34(8), 1203–1219.

    Article  Google Scholar 

  • Tödtling, F., & Trippl, M. (2007). Knowledge links in high-technology industries: Markets, networks, or milieu? The case of the Vienna biotechnology cluster. International Journal of Entrepreneurship and Innovation Management, 7(2–5), 345–365.

    Article  Google Scholar 

  • Tödtling, F., & Trippl, M. (2013). Transformation of regional innovation systems: From old leagacies to new development paths. In P. Cooke (Ed.), Reframing regional development (pp. 297–317). London: Routledge.

    Google Scholar 

  • Tödtling, F., Höglinger, C., Sinozic, T., & Auer, A. (2014). Factors for the emergence and growth of environmental technology industries in upper Austria. Mitteilungen der Österreichischen Geographischen Gesellschaft, 156, 1–25.

    Google Scholar 

  • Trippl, M., & Otto, A. (2009). How to turn the fate of old industrial areas: A comparison of cluster-based renewal processes in Styria and the Saarland. Environment and Planning A, 41(5), 1217–1233.

    Article  Google Scholar 

  • Trippl, M., & Tödtling, F. (2008). Cluster renewal in old industrial regions—continuity or radical change? In C. Karlsson (Ed.), Handbook of research on clusters (pp. 203–218). Cheltenham: Edward Elgar.

    Google Scholar 

  • Trippl, M., Grillitsch, M., & Isaksen, A. (2017). Exogenous sources of regional industrial change: Attraction and absorption of non-local knowledge for new path development. Progress in Human Geography. https://doi.org/10.1177/0309132517700982

  • Uzzi, B. (1997). Social structure and competition in interfirm networks: The paradox of embeddedness. Administrative Science Quarterly, 42(1), 35–67.

    Article  Google Scholar 

  • Westlund, H., & Kobayashi, K. (2013). Social capital and sustainable urban-rural relationships in the global knowledge society. In H. Westlund & K. Kobayashi (Eds.), Social capital and rural development in the knowledge society. Cheltenham: Edward Elgar.

    Chapter  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Arne Isaksen .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2018 Springer International Publishing AG

About this chapter

Check for updates. Verify currency and authenticity via CrossMark

Cite this chapter

Isaksen, A., Tödtling, F., Trippl, M. (2018). Innovation Policies for Regional Structural Change: Combining Actor-Based and System-Based Strategies. In: Isaksen, A., Martin, R., Trippl, M. (eds) New Avenues for Regional Innovation Systems - Theoretical Advances, Empirical Cases and Policy Lessons. Springer, Cham. https://doi.org/10.1007/978-3-319-71661-9_11

Download citation

Publish with us

Policies and ethics