Regional Industrial Restructuring

Abstract

This chapter studies regional industrial restructuring and focuses on the role of the ecosystem for restructuring. The chapter examines more precisely how various types of ecosystems hold different preconditions for regional industrial change. The question is how various stages of the restructuring process are affected by the ecosystem. The chapter moves beyond traditional evolutionary economic geography by examining a wide range of actors, mechanisms, and outcomes. A particular focus is placed on the importance of asset modification for regional industrial restructuring. The chapter concludes by suggesting that thin regional innovation systems (RISs) mainly support the reuse of existing assets which mainly leads to regional industrial path extension. Thick and diversified RISs, on the other hand, are better conditioned to promote more radical changes like asset creation and asset destruction which can support regional industrial path creations.