Behavioural theory and regional development: nurturing cultures of possibility

Abstract

This paper explores how regions can catalyse behavioural change and nurture cultures of possibility. ‘Possibility’ refers to emergent patterns of human behaviour resulting in alternative and improved outcomes for citizens and their regions. Drawing on concepts from behavioural economics, complexity economics and behavioural economic geography, the paper provides a comprehensive understanding of the behavioural factors underpinning regional development. Utilising these concepts, it develops a behavioural theoretical framework to explain the important role played by possibility for regional development. In particular, it is proposed that the nature of the decision-making capabilities of citizens, and the choice architectures shaping these decisions, are crucial to regional development. It is concluded that policies focused on improving decision-making and choice architectures will promote innovation, creativity and entrepreneurship within and across regions.