Toward a relational economic geography

Abstract

In this paper, we argue that a paradigmatic shift is presently occurring in economic geography. Based on the particular German tradition in geography, we view this shift as a second transition in economic geography following the first transition in the late 1960s and early 1970s from regional description and synthesis (i.e. Länderkunde) to regional science (or spatial analysis). Our argument starts with a reconstruction of factor-centered thinking in regional science and systematically unravels limits of this approach. It is shown that this research fails to provide a deeper understanding of localized economic and social processes. As a science of the spatial, this approach neglects the real actors in these processes. Economic agents are capable of creating their own regional environments to support their goals, based on previous experience. As a consequence, we argue for a need to reconceptualize economic geography based upon an integration of both economic and social theory. A relational view rests on three basic propositions. First, from a structural perspective economic actors are situated in contexts of social and institutional relations (and material structures). Second, from a dynamic perspective economic processes are path-dependent to the extent that future action is constrained by historical development. Third, economic processes are at the same time contingent in that the agents' strategies and actions are fundamentally open-ended and may deviate from existing development paths. Drawing on Storper's holy trinity, we define four ions as the basis for analysis in economic geography: organization, evolution, innovation and interaction. Therein, we employ a particular spatial perspective; that is, we view economic processes using a geographical lens. Economic organization and innovation are dependent upon localized institutions which constitute a common framework for economic interaction along territory-specific, yet contingent development paths.

A Network-based view of regional growth

“…The notion of network capital is an attempt to capture the importance scholars have given to the relational assets approach to explaining regional development, whereby such development is theorised to be significantly embedded in local and global networks (Bathelt and Glückler, 2003;Yeung, 2005;Lorentzen, 2008). In this sense, Storper's (1997) 'holy trinity' of relational assetstechnology, organisations and territories -can be adapted to knowledge, inter-organisational networks, and regions.…”

The geography of sustainability transitions: Review, synthesis and reflections on an emergent research field

“…Attention has consequently shifted from a focus on proximity effects in clusters, agglomerations and industrial districts to ways in which social networks influence inter-organisational partnerships and facilitate collaboration between partners which are geographically distant (Allen 2000;Saxenian and Hsu 2001). No a priori privilege is given to any scale in relational geography (Boggs and Rantisi 2003) and space is considered to be non-existing in itself; thus, space is considered to be a social construction stemming from relations between actors (Amin 2002), or, alternatively, an analytical perspective whereby the central objects of analysis, economic action and interaction, can be analysed (Bathelt and Glückler 2003). Relational economic geography takes its outset in relations and flows (of capital, knowledge, people, etc.)…”

Can we learn anything from economic geography proper?

“…This sketch draws heavily on Bathelt and Glückler (2003) 9 the first paper in the recent special issue of the Journal of Economic Geography. In that paper, the authors sketch out a research design for a relational perspective.…”