Microfirms in peripheral areas: How can evolutionary economic geography contribute in studies of diversification? A case study from Norway

Abstract

The article discusses whether and how the emerging approach of evolutionary economic geography is fruitful when researching diversification among microfirms in peripheral regions. The author argues that such microfirms represent a source of heterogeneity that potentially could enrich our understanding of economic evolution. The sources of variation and mechanisms of selection operating among diversifying farmers in Norway are examined and diversifying farms are identified as both microfirms and households. The findings indicate that motivation at household level is the key to successful diversification. Further, the findings confirm that microfirms are not only able to influence their own destiny, but also institutional progress at regional level. The author concludes that the role of microfirms as actors and the possibility for the study of the agency of such actors are the major reasons why evolutionary economic geography is a fruitful approach in researching microfirms in peripheral areas.