Regional Innovation Transitions

Abstract

Since the Industrial Revolution, the world economy has enjoyed ongoing productivity increases that have steadily raised global living standards in the context of a growing world population. This represents a change from the reality prior to roughly 1820, which was marked by long-term stagnation in both living standards and population levels, a condition referred to as the Malthusian Trap (Maddison, 1982). The vast historical literature on the Industrial Revolution, complemented by recent advances in growth theory, demonstrates that capitalism has been able to break this historical trap for more than two centuries through a powerful systemic capacity to generate productivity-increasing innovations.Within this two-century period, however, innovation has not occurred evenly over time nor over geographical territory. The time dynamic is that major innovations occur in waves, and are centered on sets of technologies and their principal industries, such as the textile technology revolution of the late eighteenth and early nineteenth centuries, with its harnessing of water power sources and its mechanical innovations for weaving. In the nineteenth century, technologies around steel, coal, and railroads generated another major wave of productivity increases. In the very late nineteenth century and early twentieth century, the internal combustion engine, electricity, and more mechanical engineering technologies generated another astonishing wave of productivity gains (Gordon, 2016).

Institutional context and place‐based policy: The case of Coventry & Warwickshire

“…In the interviews, several business leaders acknowledged that CWLEP “has a good business understanding compared to some other LEPs who don't know how to work with engineering and manufacturing.” CWLEP serves as a showcase of a “linking organization” (Heinze, Soderstrom, & Heinze, ) that has taken a truly central position in the region and offers inclusive participation by many stakeholders and organizations. CWLEP and the Growth Hub are the kind of “organizational sites” (Storper, ) that bridge the gaps between industries, societal sectors, and local authorities to create fertile cross‐network connections. However, CWLEP is only a “lightweight organization,” as experts from business and education repeatedly stated, with very limited financial and human resources.…”

“…HM Government (2017) Heinze, 2016) that has taken a truly central position in the region and offers inclusive participation by many stakeholders and organizations. CWLEP and the Growth Hub are the kind of "organizational sites" (Storper, 2018) that bridge the gaps between industries, societal sectors, and local authorities to create fertile cross-network connections. However, CWLEP is only a "lightweight organization," as experts from business and education repeatedly stated, with very limited financial and human resources.…”

Local entrepreneurship ecosystems and emerging industries: Case study of Coventry and Warwickshire, United Kingdom

“…In particular, empirically, case studies on the rise of the San Francisco Bay Area vis-àvis the relative stagnation of Los Angeles (Storper et al 2015), or the continuous reinvention of the Boston economy (Glaeser 2005), suggest that the quality and inclusiveness of social networks, i.e. the relational infrastructure (Storper 2018), is key in facilitating breakthrough innovations, technological transitions and industrial diversification.…”

“…The concept of 'relational infrastructure' is a useful tool to characterise the quality and linkages of the local institutions. A relational infrastructure includes four institutional dimensions (Storper 2018):…”

“…The LEP serves as a showcase of a linking organisation that has taken a truly central position in the region and offers inclusive participation by many stakeholders and organisations. CWLEP and the Growth Hub are the kind of 'organisational sites' (Storper 2018) that are so important to bridge the gaps between industries, societal sectors and local authorities to create fertile cross-network connections.…”