Evolutionary Economic Geography Research Articles

Economic geography’s contribution to understanding the circular economy

Abstract This article explores the role of evolutionary economic geography in enhancing understanding and implementation of the circular economy (CE). By incorporating spatial and territorial dimensions into CE research, this study emphasizes the significant influence of geographical factors on achieving economic and environmental objectives. The research highlights the importance of localizing CE practices and emphasizes the contributions of proximity theory and territorial governance in promoting collaborative networks that are crucial for CE success. Furthermore, the article introduces the concept of Territorial Circular Ecosystems, which provides a framework for analyzing regional variations and the interplay between local actors, resources, and institutional support in the deployment of the CE. The findings offer fresh insights for policymakers and researchers, advocating for place-based policies to address CE challenges and optimize sustainability strategies.

(Re)Incorporating “the Tangible” in Industrial Path Development Analyses: The Role of Sociomaterial Contingencies in Explaining Potential Emergence of Hydrogen Production in Western Norway

Studies of industrial path development, a literature strongly influenced by evolutionary economic geography and systems of innovation theorizing, have an analytical focus on how interplays between actors, networks, and institutions, what we term social contingencies, shape industrial development in geographic areas. Tying into earlier calls in the literature, we argue that the emphasis on social contingencies has led to limited analytical attention to how material contingencies are also influential in shaping how and where industries develop. Based on this, we develop an analytical framework for studying sociomaterial contingencies for industrial path development in geographic contexts. Consequently, and echoing early path development theory, we argue for considering the breadth of dimensions underpinning industrial path development and their interplay, considering both intangible and tangible explanators without reducing either of these categories on behalf of the other. We discuss our approach in an exemplifying discussion of potential industrialization of hydrogen production in Western Norway to illustrate how assessment of sociomaterial contingencies adds analytical utility to the industrial path development literature.

Transformative firm-level agency: A case study of small and medium-sized enterprises (SMEs) in the Swiss wood-processing industry

This paper investigates different enterprise types as potential agents of transformative change in the wood-processing industry. To do so, it combines the concept of transformative enterprise with recent accounts of agency in evolutionary economic geography. We examine small and medium-sized enterprises (SMEs) in the wood-processing industry because by using a renewable resource that stores CO2 and has the potential to replace polluting materials, they could become frontrunners in sustainability transformations through a wood-based bioeconomy. Empirically, we draw on a qualitative case study with 24 wood-processing SMEs in the Canton of Bern, Switzerland. Based on the concept of transformative enterprise, we identify five enterprise types: silent ecologists, social pioneers, visionary nonconformists, ambitious entrepreneurs, and pragmatist traditionalists. The first four types show many characteristics indicating transformative firm-level agency while only the ambitious entrepreneurs seem capable of inducing changes at the system-level. This is due to several limits of change agency, which we also illuminate. Overall, our study sheds light on the heterogeneity of firms as change agents in the context of sustainability transformation.

Regional drivers of industrial decarbonisation: a spatial econometric analysis of 238 EU regions between 2008 and 2020

ABSTRACT The European context of socio-economic integration and physical proximity likely plays an essential role in explaining the decarbonisation outcomes of industrial sectors. However, there is hardly any spatial regional analysis on CO2 emissions drivers in European countries. This study investigates the role of geographical space and regional determinants in industrial decarbonisation by analysing how socio-economic drivers and their interregional relationships impact industrial carbon emissions in European regions. We employ a spatial panel data econometric model to a novel panel dataset comprising 13 years (2008–20) of carbon emissions from hard-to-abate industrial sectors from 238 NUTS-2 regions across 27 European Union countries. Results indicate the presence of endogenous spatial interactions and high-time persistence between CO2-eq emissions in European Union regions. As such, industrial carbon emissions of regions follow similar patterns to their neighbours, supporting the evolutionary economic geography and growth theory assumptions of the spatial interaction of carbon emissions between regions. Furthermore, the use of a spatial econometric model illustrates the negative direct and spillover effects that higher levels of education and regional investment in research and development have on industrial CO2-eq emissions.

Breaking path dependency? Factors to enhance capacity for rural local governments in Newfoundland and Labrador, Canada

ABSTRACT Path dependency, often coinciding with the downloading of various responsibilities with reduced funding from higher levels of governments during the neoliberal era, has led to capacity challenges for rural local governments to pursue sector diversification activities. Despite these challenges, research has indicated that, through entrepreneurial efforts, breaking path dependency is possible. Drawing from Staples Theory, Evolutionary Economic Geography, New Public Management, and New Localism as well as primary data from key informant interviews, this paper identifies five factors that influence the capacity of rural local governments to break path dependency. In doing so, it identifies a relationship between New Localism and local governments, and its potential as a bridge for rural economic development. These findings are important, as they contribute to the limited but growing literature related to New Localism and its potential applications for rural local governments in Canada to facilitate economic development.

Explorando la Transición hacia la Sostenibilidad, la Creación de Trayectorias y los Espacios de Oportunidad para la Política de Desarrollo Sostenible

This conceptual literature review explores the nuanced terrain of sustainability transitions, path creation, and opportunity space within the theoretical framework of evolutionary economic geography. Grounded in the foundational principles of this field, which examines the spatial and temporal dynamics of economic evolution, the paper applies a systematic approach to meticulously select and analyze twelve scholarly articles dated from 2010 or after. The methodology involved the creation of a comprehensive database organizing and systematizing the relevant data, so offering a robust foundation for the exploration of theoretical approaches and constructs related to sustainability transitions, path creation, and opportunity space. Drawing from the field of evolutionary economic geography, the paper emphasizes key contributions from this theoretical perspective. A common thread identified across these concepts is the pivotal role of change agency. The paper concludes by underlining the contributions of sustainability transitions, path creation, and opportunity space to sustainable development policy, providing insights into their potential impact on shaping a more sustainable and resilient future.

The ongoing green industry shift in Helgeland: Historical developments and future-oriented green regional industry scenarios

ABSTRACT The article’s objective is to contribute to the literature on green in peripheral regions by developing an analytical perspective that integrates the historical regional industry path development process with the creation of alternative regional industry futures. The article emphasizes the role of intertemporal change agency that allows the actors to engage in deliberation regarding appropriate moments, being prepared and waiting for the right time to explore new opportunities in the future by learning from past setbacks and failures. The authors do this by developing a theoretically informed analytical perspective based on insights from the evolutionary economic geography (EEG) literature. Additionally, the authors explore how regional actors build upon historical developments to construct multiple future regional industry scenarios proactively. Empirically, the article looks at the long-term historical and contemporary green industry path development in Helgeland, Nordland. The authors identify and discuss three specific future-oriented regional industry scenarios – (1) transformation and rejuvenation, (2) stagnation, and (3) preservation – based on the historical developments. Additionally, they discuss the relevance of the alternative future regional industry scenarios. The authors conclude that the role of intertemporal change agency is critical for understanding how regional actors construct future opportunities by learning from the experiences in the past.

“Oh Yes! Net-Zero”: Sociotechnical capabilities and regional innovation systems for British industrial decarbonization

Few sectors in the global economy need deep decarbonization as much as heavy industry, which is currently the largest and fastest growing source of global carbon emissions. Based on an original dataset of 111 expert interviews and 52 site visits, this paper asks: what sociotechnical pathways, capabilities, and regional innovation systems are emerging to support industrial decarbonization? It combines and applies insights from evolutionary economic geography and transitions studies, such as sociotechnical capabilities and learning, as well as spatial frameworks such as challenge-oriented regional innovation systems (CoRIS) and green industrial restructuring. It utilizes these collective concepts of pathways, capabilities and CoRIS to explore the organizational and technological, individual, and systems level dimensions of industrial decarbonization efforts ongoing across Great Britain. We find that within industrial net-zero clusters, spatial and technological proximities are being effectively leveraged, especially through new forms of networking, collaboration, and partnerships. CoRIS provides the basis for greater reflection on perennial transitions issues, both within and across clusters, related to incumbency and innovation, in addition to spotlighting emergent issues such as light versus deep green restructuring and incremental versus transformative change. In simpler terms, industrial decarbonization unfolds as a multi-scalar process. Industrial decarbonization exhibits both incremental and transformative patterns of change. Industrial decarbonization lastly involves dynamic processes that coevolve across a spectrum of sociotechnical attributes.

Spatio-temporal evolution and influencing factors of the e-sports industry in China

The emergence and development of new industry play a key role in regional development and economic growth. This study explores the e-sports industry evolution, a typical cross-sector new industry, through a theoretical lens of the evolutionary economic geography (EEG) based on Chinese e-sports industry enterprise data between 1998–2018 and examines the influencing factor by multivariate regression. Results show e-sports industry development is a typical evolutionary process that combines spin-off, path creation, spatial evolution, and firms’ network. Furthermore, the e-sports industry is characterized by the integration of the sports and creative industries. However, technology correlated-based knowledge spillover from culture and sports does not significantly impact the e-sports industry, whereas the knowledge spillover from the information software industry promotes e-sports industry development. The regression result also confirms that the institution and culture significantly impact the industrial development. This study enriches the knowledge body of evolutionary economic geography from case studies of the e-sports industry, and also expands the existing study system of emerging industries.

An evolutionary approach to regional studies on global value chains

ABSTRACT There is an ongoing dialogue that explores how the global production network and evolutionary economic geography (EEG) literatures can make promising crossovers. This paper aims to contribute to this debate by outlining a theoretical-analytical approach to regional studies on global value chains (GVCs). Building on the EEG literature on relatedness, economic complexity and regional diversification, this approach aims to develop a better understanding of the ability of regions to develop new and upgrade existing GVCs, and why regions may experience the loss or downgrading of existing GVCs. We present the features of this relatedness/complexity approach to GVCs and discuss potential fields of applications.

From regional to global and back again? A future agenda for regional evolution and (de)globalised production networks in regional studies

ABSTRACT This paper builds common grounds for a future research agenda in the regional studies of evolutionary economic geography and global production networks. I put forward two ‘troubling themes’ of (geo)politics and heightened risks as the most disruptive forces in today’s increasingly fragmented global economy and argue for their significance in regional studies throughout the post-pandemic 2020s. Massive global change through the reconfiguration of and strategic (de/re)coupling with global production networks will engender new path formation in regional transformation. In this analytical move from the global ‘back again’ to the regional, there are common questions on epistemology (causal explanations) and substantive issues (network/regional resilience, institutions/the state, inequalities/uneven development and new forms of regional policies) for both communities of researchers.

Regional capability, evolutionary economic geography and global production networks

ABSTRACT In this exchange, I suggest that regional capability provides a lens to link two popular theories in regional studies, namely evolutionary economic geography (EEG) and global production networks (GPNs). This implies moving beyond ordinary to dynamic organisational capability that turns global value chain, geopolitical and security risks into opportunities for regional diversification.

Global production networks meets evolutionary economic geography

ABSTRACT Two of the canonical approaches in regional studies are global production networks (GPNs) and evolutionary economic geography (EEG). Recent geopolitical and economic events have shown the importance of both theories in explaining regional economic change. Yet they remain discrete and separate, and there is now consensus that, together, they could explain more. A vibrant debate on the relationship between these two approaches is needed, starting with identifying unifying themes and areas of analytical difference, to develop a research agenda for future work which can better explain regional change.

What are the drivers of enterprise diversification in Chinese cities: Coming from path-dependence or path-creation forces?

Most studies in evolutionary economic geography considered path-dependence forces that drove regional diversification in the macro level. This view generated debates recently and path-creation forces began to attract large concern. This study focuses on revealing the driving forces of Chinese enterprise diversification in the micro level. It first proposes invention patents as an indicator to measure internal path-creation force on double “spatial-industrial” dimensions based on China Economic Census data and patent datasets in China National Intellectual Property Administration. The study has empirically examined the driving mechanism of enterprise diversification and found that the driving impacts did not have significant differences in path-dependence force, while the effects of internal and external path-creation forces have heterogeneity among industries and regions. It is proposed local governments should formulate targeted strategies to promote enterprise diversification especially in undeveloped western cities.

Bricolage or breakthrough? Entrepreneurial responses to tourism development in a regional tourism destination

The Evolutionary Economic Geography (EEG) framework contributes to the study of tourism destination evolution by focusing on the various circumstances and events through which tourism destinations develop over long periods of time. Our research objective is to investigate how players in tourism destinations shape development pathways when they face stagnant or lock‐in situations. Applying the concepts of path dependence and path creation, we explain how path shaping mechanisms such as bricolage (the process of combining available resources to create innovative outcomes) and breakthrough (a process where actors attempt to generate dramatic outcomes to deviate from existing pathways) occur using two destinations in the two regencies of the Toraja region of Sulawesi, Indonesia, as a case study. Understanding cultural tourism destination pathways requires frameworks capable of interrogating ethno‐political structures and histories and assessing how they influence developmental pathways that generate regional transformations. Our investigation indicates: strong path dependence in tourism, due to cultural, political, and economic conditions, inhibits breakthrough development; that the strength of path dependence at a regional level strongly influences the path shaping processes at the firm level; and that a breakthrough developmental process in tourism does not exclude bricolage.

Regional determinants of biogas production units setup: Evidence from France

The aim of this paper is to analyze the regional determinants of biogas production units’ creation in French metropolitan NUTS-3 regions from 2012 to 2020. The theoretical framework combines two approaches stemming from evolutionary economic geography and social/local governance literature, exploring the regional factors that can foster the setup of biogas plants in France. Results suggest that 1) the setup of biogas plants is positively influenced by a technological advantage in biotech and waste management in regions, as well as in agri-food; 2) socio-economic and geographic factors contribute to their development; and 3) different factors related to the rural and urban characteristics of regions have differential impacts on their setup.

How does external environment impact emerging industrial development: An evolutionary development approach of the e‐sports industry in China

To increase the understanding of how the external environment impact the local industrial development, this study builds a conceptual framework of industrial evolutionary development by integrating evolutionary and developmental theories from the perspective of evolutionary economic geography. This study emphasised the combination of two mechanisms. The first evolutionary mechanism consisting of variation, selection and retention, and the diversity within and between enterprise clusters serves as the starting point for evolution. The external environment selects and retains the most competitive enterprises under the mechanism of selection. The second developmental mechanism is the influence of the external environment on enterprises. The external environment screens and affects the development of firms at and across multiple levels, same level and across levels. Based on the case studies of the e‐sports industry in China, this study finds that technological development has driven the transformation of the e‐sports industry. Additionally, location cost, spatial proximity, local policy, urban strategy and national planning have been identified as crucial factors that influence the location choice of the e‐sports industry. This study highlights the importance of paying more attention to environmental dynamics in the research and practice of industrial evolution.

Situating knowledge combinations beyond the factory gate: Examples from two innovation projects in rural Norway

Evolutionary economic geography considers knowledge combinations as key for explaining innovation and regional industrial development. Building on the thesis that knowledge is beneficially combined across adjacent industries, the notions of ‘relatedness’ and ‘related variety’ have spurred prolific research. In these strands of research, focus is on potential knowledge combinations, but less so on how knowledge is actually combined. The latter is primarily explained by research on knowledge bases, contributing to a processual understanding. However, knowledge and its combination processes can be better understood with an eye to its social situatedness too. Thus, we here suggest blending insights from different perspectives in the economic geography literature to provide an integrated understanding of the multi-dimensionality and social dynamism of knowledge combination. We apply this framework by investigating the role of individuals in combination processes within tourism.

Climate change, energy production, and Arctic tourism: A case study analysis of northern Alaska

Abstract Historically, there have been two kinds of economic activities in northern Alaska. The first and oldest is the subsistence lifestyle of the Indigenous peoples. The second and more recent is the development of the oil and gas industry, which began in earnest in 1977 with the competition of the Trans-Alaskan Pipeline and construction of a new road, the Dalton Highway. Although first used only by commercial traffic for the oilfield, in 1994, the highway opened to the public and is now frequented by tourists travelling above the Arctic Circle. In this paper, we analyse the future of northern Alaska tourism by considering evolutionary economic geography and the area’s likely reduction in oil and gas activity. We consider how climate change may serve as a trigger, impacting tourism through the rise of last chance tourism, and conduct a scenario-based analysis. We argue that the oil and gas industry is likely to continue along its current path, exhausting accessible resources and innovating technology to push into new territories in the far north. However, should the culmination of extraneous factors render climate change a trigger, industry decline could be offset by investments that repurpose the area’s industrial heritage into tourism sites.

CAN TOURISM BE A WAY TO DIVERSIFY REGIONAL ECONOMIES: THE CASE OF THE ULYTAU REGION OF KAZAKHSTAN

Purpose –Tourism development can provide a sustainable path through which to diversify the economy. The aim of this research is 1) to assess the current economic diversification of a potential tourism region in an emerging economy, that of the Ulytau region of Kazakhstan; 2) to detail the impediments to economic diversification through tourism development, and 3) to recommend ways to foster economic diversification. Methodology/Design/Approach – The research uses secondary data to assess the current situation of the region and in-depth interviews with tourism and economic development experts to understand the current obstacles to economic diversification. Findings – This rural region of Kazakhstan is relatively concentrated in terms of its economic diversification and investment in infrastructure such roads, airports, and telecommunication as well as marking and promotion of the natural and cultural attractions will be a path to diversify the economy through tourism development. Originality of the research – This research uses evolutionary economic geography as a useful framework through which to view how destinations change over time. The research provides a model through which other destinations, dominated by non-renewable resource extraction can pivot towards tourism as a way to diversify the economy.