New path capture. Insights from the diversification process in mining regions

Abstract

Current literature on regional diversification emphasizes the importance of nonlocal linkages for new path development in peripheral regions. This is particularly relevant in mining areas due to the risk of technological lock-in caused by their high specialization in extractive activity. We combined the Evolutionary Economic Geography and Global Production Networks frameworks and suggested the notion of “path capture” to critically assess the prospects of benefiting from path creation by extensive nonlocal linkages in a peripheral region. To understand new path capture, we conducted a case study on Antofagasta, the main mining region in Chile, with a multiscalar perspective. The primary data in our analysis were obtained from in-depth interviews and the secondary data were retrieved from diverse sources. Our results show that mining regions face the risk of creating new paths that are not territorially embedded but captured by external actors.