Evolutionary economics and regional policy

The principal objective of this paper is to formulate some possible links between evolutionary economics and regional policy, a topic that has not (yet) been covered by the literature. We firstly give a brief overview of some issues of regional policy, conceived as a strategy to influence the spatial matrix of economic development. Then, we outline what we take to be the essential arguments and components of evolutionary economics. More in particular, we focus attention on the economic foundation of technology policy from an evolutionary perspective, and how this deviates from the so-called "equilibrium" rationale. Then, we examine in what way evolutionary insights may be helpful for regional policy matters. Our main emphasis is to investigate the degrees fo freedom policy makers may have to determine the future development of regions. When evolutionary mechanisms like chance and increasing returns are mainly involved in the spatial formation of new economic activities, there are several, but quite contradictory, options for policy makers. On the one hand, the importance of early chance events implies that multiple potential outcomes of location are quite thinkable. This is a principal problem for regional policy because new development paths can not be planned or even foreseen. On the other hand, policy makers may have a role to play here. Since space exercises only a minor influence on the location of new economic activities, there is room for policy makers to act and to build-up a favourable local environment. In this respect, urbanisation economies may offer advantages of flexibility secured by a diversity of activities which tends to prevent a process of negative lock-in. When evolutionary mechanisms like selection and path dependency are crucial for the geography of innovation, policy makers are expected to have more influence on the spatial pattern of innovation. In such circumstances, new variety is regarded as strongly embedded in its surrounding environment: the local environment acts as a sort of selection mechanism because it may, or may not, provide conditions favourable to meet the new requirements of new technology. Adaptation to change is largely constrained by the boundaries of the spatial matrix laid down in the past: only minor modifications tend to take place and do not undermine the logic of the spatial system.

Variety and regional economic growth in the Netherlands

In economic theory, one can distinguish between variety as a source of regional knowledge spillovers, called Jacobs externalities, and variety as a portfolio protecting a region from external shocks. We argue that Jacobs externalities are best measured by related variety (within sectors), while the portfolio argument is better captured by unrelated variety (between sectors). We introduce a methodology based on entropy measures to compute related variety and unrelated variety. Using data at the COROP level for the period 1996-2002, we find that Jacobs externalities enhance employment growth, while unrelated variety dampens unemployment growth. Productivity growth, by contrast, can be explained by traditional determinants including investments and R&D expenditures. Implications for regional policy in The Netherlands follow.evolutionary economic geography, new economic geography, economic variety

Modelling Hierarchy and Specialization of a System of Cities from an Evolutionary Perspective on Firms' Interactions

Despite their great diversity, most systems of cities show remarkably similar patterns when comparing the size distribution and the economic specialization of their constitutive cities. The universality of these patterns sparked the interest of geographers, economists and physicists. However, until now, no economic model has relied on a micro-based and evolutionary approach to reproduce these regularities. In this chapter, we intend to fill this gap by proposing a model where the micro dynamics of localized firms generate the two macro regularities of size distribution and economic specialization. The model is based on boundedly rational firms’ competition and path dependent innovation. We discuss the possible emergence of macro properties from these micro behaviors of firms

What makes SMEs more likely to collaborate? Analysing the role of regional policy

The last twenty years have witnessed the diffusion of regional innovation policies supporting networks of innovators. The underlying aim of these policies is to encourage firms, particularly SMEs, to undertake collaborations with organisations possessing complementary knowledge. Focusing on a set of SMEs that have participated, over time, in several innovation networks funded by the same regional government, the paper investigates how their relationships have evolved with respect to the following aspects: (i) reiteration of pre-existing relationships as opposed to experimentation of new relationships; (ii) collaboration with organisations possessing complementary rather than similar knowledge and competencies; (iii) creation of local relationships rather than experimentation of extra-local collaborations; (iv) reliance upon intermediaries to connect with other organisations. Our findings reveal that the involvement in these policy-supported networks changed the firms’ relational patterns, leading them to collaborate with a wider variety of agents than those with whom they were linked before the policies. Sectoral heterogeneity had a negative effect on the probability to collaborate, while co-localisation increased the likelihood to collaborate. Mutual involvement with intermediaries also had a positive effect. However, in the case of firm-to-university relationships only specialized intermediaries were likely to perform a positive role and, therefore, encourage networking

Growing with the market : how changing conditions during market growth affect formation and evolution of interfirm ties

Research Summary: Market conditions are known to matter for firm performance and growth. This study explores how changing levels of uncertainty and competition affect interfirm ties of entrepreneurial firms as markets transition from nascent to growth stage. Tracing 6 entrepreneurial game publishers during the growth stage of the US wireless gaming market, the findings reveal that in a growth stage market, as uncertainty decreases, certain ties of entrepreneurial firms are terminated. First, existing partners may cut ties and become competitors after entering the market directly. This is a “winner's curse” as more successful firms are more likely to entice their partners to enter the market directly. Second, ties may be terminated as prominent firms that are “overwhelmed” with too many partners cut ties with low to mediocre performance while their remaining partners enter a positive spiral of tie strength and performance. Finally, as uncertainty decreases, new firms may enter the market as competitors to prominent firms. While entrepreneurial firms with high and low performing ties to prominent partners may find ties with these new entrants attractive, those with mediocre ties to few prominent partners find this move too risky and wait for a first mover to legitimate it. Overall, the findings show that changing levels of uncertainty and competition in growth stage markets can have different consequences for firms due to heterogeneity in their ties and power relative to partners. The findings provide several contributions to literature regarding the relationship between interfirm ties, firm performance, and market evolution. Managerial Summary: Based on interviews at 6 entrepreneurial game publishers in the US and their partners, this study shows how changing levels of uncertainty and competition in growing markets can have different consequences for firms based on the different types of alliances in their portfolio and their power relative to partners. The findings highlight the importance of managing partners differently based on alliance type and goal of the partner. They advocate remaining flexible in alliance management as information asymmetries, intentions and bargaining power of partners can change and lead to abrupt alliance dissolution. They show that alliance portfolio management goes beyond a firm's capability of managing individual alliances, and provide a tool for managers to evaluate their alliance portfolios and take the necessary precautions

Modelling of lucerne (Medicago sativa L.) for livestock production in diverse environments

Several models exist to predict lucerne (Medicago sativa L.) dry matter production; however, most do not adequately represent the ecophysiology of the species to predict daily growth rates across the range of environments in which it is grown. Since it was developed in the late 1990s, the GRAZPLAN pasture growth model has not been updated to reflect modern genotypes and has not been widely validated across the range of climates and farming systems in which lucerne is grown in modern times. Therefore, the capacity of GRAZPLAN to predict lucerne growth and development was assessed. This was done by re-estimating values for some key parameters based on information in the scientific literature. The improved GRAZPLANmodel was also assessed for its capacity to reflect differences in the growth and physiology of lucerne genotypes with different winter activity. Modifications were made to GRAZPLAN to improve its capacity to reflect changes in phenology due to environmental triggers such as short photoperiods, declining low temperatures, defoliation and water stress. Changes were also made to the parameter governing the effect of vapour pressure on the biomass-transpiration ratio and therefore biomass accumulation. Other developments included the representation of root development and partitioning of canopy structure, notably the ratio leaf : stem dry matter. Data from replicated field experiments across Australia were identified for model validation. These data were broadly representative of the range of climate zones, soil types and farming systems in which lucerne is used for livestock grazing. Validation of predicted lucerne growth rates was comprehensive owing to plentiful data. Across a range of climate zones, soils and farming systems, there was an overall improvement in the capacity to simulate pasture dry matter production, with a reduction in the mean prediction error of 0.33 and the root-meansquare deviation of 9.6 kg/ha.day. Validation of other parts of the model was restricted because information relating to plant roots, soil water, plant morphology and phenology was limited. This study has highlighted the predictive power, versatility and robust nature of GRAZPLAN to predict the growth, development and nutritive value of perennial species such as lucerne

Research findings from the Memories of Nursing oral history project.

Capturing the stories of nurses who practised in the past offers the opportunity to reflect on the changes in practice over time to determine lessons for the future. This article shares some of the memories of a group of 16 nurses who were interviewed in Bournemouth, UK, between 2009 and 2016. Thematic analysis of the interview transcripts identified a number of themes, three of which are presented: defining moments, hygiene and hierarchy. The similarities and differences between their experiences and contemporary nursing practice are discussed to highlight how it may be timely to think back in order to take practice forward positively in the future

Knowledge Integration and Diffusion: Measures and Mapping of Diversity and Coherence

I present a framework based on the concepts of diversity and coherence for the analysis of knowledge integration and diffusion. Visualisations that help understand insights gained are also introduced. The key novelty offered by this framework compared to previous approaches is the inclusion of cognitive distance (or proximity) between the categories that characterise the body of knowledge under study. I briefly discuss the different methods to map the cognitive dimension