Innovative Path of the Regional Economy’s Departure from the Previous Path-Dependent Development Trajectory
DOI:
https://doi.org/10.17059/2020-1-3Keywords:
evolutionary economic theory, path dependence, path breaking, technological relatedness, proximity index, transition industries, comparative advantages, high-tech industries, regional institutions and norms, regions of RussiaAbstract
The diversification of regions in terms of economic growth rate is largely due to the path dependence: a region's economy depends on the earlier established industrial structure. Successfid regions, formed as an economic “core”, now have more reasons for creating a new economy and ensuring further economic growth. Existing institutions and norms, returns to scale, inertial development are the constraining factors for the path-breaking. The paper shows that the departure from path dependency for the regions is possible through technological innovations and interregional relations. The study aims to develop a method for assessing a region’s path-breaking possibility based on the existing industrial structure and its connection with the economy’s hightech sector. The proposed assessment method is based on using the localization coefficient for determining the proximity of types of economic activity (that have a comparative advantage in a region) with the economy’s high-tech sub-sectors. The approach has been tested in the regions of Russia. We have shown that certain regions can move further by investing in interregional ties and internal innovations. These two factors contribute to the rapid development, reduce dependence on the established industrial structure, allow maintaining comparative advantages. The research has practical significance as it offers an analytical tool for making decisions about the possibility and directions of a regions path-breaking. It is important to understand in which direction a region shoidd develop inter-sectoral cooperation for the emergence of the economy’s new sectors.References
Neffke, F., Henning, M. & Boschma, R. (2011). How do regions diversify over time? Industry relatedness and the development of new growth paths in regions. Economic Geography, 87(3), 237–265. DOI: https://doi.org/10.1111/j.1944– 8287.2011.01121.x
Silin, Ya. P., Animitsa, E. G. & Novikova, N. V. (2017). Regionalnye aspekty novoy industrializatsii [Regional Aspects of New Industrialization]. Ekonomika regiona [Economy of Region], 13(3), 684–696. DOI: 10.17059/2017–3-4 (In Russ.)
Limonov, L. E. & Rastvortseva, S. N. (2011). Evaluation of the branch competitiveness of the regions of the Central Federal District in 2005–2009 using the shift-share analysis. Regional Research of Russia, 1(4), 297–318. DOI: 10.1134/ S2079970511040083.
Zhu, S., He, C. & Zhou, Y. (2015). How to jump further? Path dependent and path breaking in an uneven industry space. UPapers in Evolutionary Economic Geography (PEEG), 1524, 24. DOI: 10.1007/978–981–13–3447–4_12.
David, P. A. (1985). Clio and the Economics of QWERTY. The American economic review, 75(2), 332–337.
Arthur, W. B. (1988). Self-Reinforcing Mechanisms in Economics. In: P. W. Anderson, K. Arrow, D. Pines (Eds.). The Economy as an Evolving Complex System (pp. 9–31). USA: CRC Press. DOI: 10.1201/9780429492846–2.
Liebowitz, S. J. & Margolis, S. E. (1995). Path dependence, lock-in, and history. Journal of Law, Economics, Organization, 205–226.
Levi, M. (1997). A model, a method, and a map: Rational choice in comparative and historical analysis. In: M. I. Lichbach, A. S. Zuckerman (Eds.), Comparative politics: Rationality, culture, and structure (pp. 19–41). Cambridge: Cambridge University Press.
Page, S. E. (2006). Path dependence. Quarterly Journal of Political Science, 1(1), 87–115. DOI: 10.1561/100.00000006.
Baum, J. A. C. (1996). Organizational ecology. In: S. R. Clegg, C. Hardy, T. Lawrence, W. R. Nord (Eds.), Handbook of Organization Studies (pp. 77–114). Sage.
Boschma, R. & Iammarino, S. (2009). Related variety, trade linkages, and regional growth in Italy. Economic geography, 85(3), 289–311. DOI: https://doi.org/10.1111/j.1944–8287.2009.01034.x.
Arthur, W. B. (1994). Increasing returns and path dependence in the economy. University of Michigan Press, 202.
Martin, R. & Sunley, P. (2006). Path dependence and regional economic evolution. Journal of economic geography, 6(4), 395–437. DOI: https://doi.org/10.1093/jeg/lbl012.
Sydow, J., Lerch F. & Staber, U. (2010). Planning for Path Dependence? The Case of a Network in the Berlin- Brandenburg Optics Cluster. Economic Geography, 86, 173–195. DOI: https://doi.org/10.1111/j.1944–8287.2010.01067.x.
Barro, R. J. (2013). Education and economic growth. Annals of economics and finance, 14(2), 301–328.
Grigoryev, L. M. & Pavlyushina, V. A. (2018). Mezhstranovoe neravenstvo: dinamika i problema stadiy razvitiya [Inter-country inequality as a dynamic process and the problem of post-industrial development]. Voprosy Ekonomiki, 7, 5–29. DOI: https://doi.org/10.32609/0042–8736–2018–7-5–29 (In Russ.)
Rastvortseva, S. (2017). Agglomeration economics in regions: The case in the Russian industry. Regional Science Inquiry, 9(2), 45–54.
Frenken, K., Van Oort, F. & Verburg, T. (2007). Related variety, unrelated variety and regional economic growth. Regional studies, 41(5), 685–697. DOI: https://doi.org/10.1080/00343400601120296.
Frenken, K. & Boschma, R. A. (2007). A theoretical framework for evolutionary economic geography: industrial dynamics and urban growth as a branching process. Journal of economic geography, 7(5), 635–649. DOI: https://doi. org/10.1093/jeg/lbm018.
Boschma, R., Minondo, A. & Navarro, M. (2012). Related variety and regional growth in Spain. Papers in Regional Science, 91(2), 241–256. DOI: https://doi.org/10.1111/j.1435–5957.2011.00387.x.
Balassa, B. (1965). Trade liberalisation and “revealed” comparative advantage. The Manchester school, 33(2), 99–123.
Yeats, A. J. (1985). On the appropriate interpretation of the revealed comparative advantage index: Implications of a methodology based on industry sector analysis. Weltwirtschaftliches Archiv, 121(1), 61–73. DOI: 10.1007/bf02705840.
Rastvortseva, S. N. & Cherepovskaya, N. A. (2013). Identifikatsiya i otsenka regionalnykh klasterov [Identification and assessment of regional clusters]. Economy of Region [Ekonomika Regiona], 4(36), 123–133. DOI: 10.17059/2013–4-12 (In Russ.)
Porter, M. (2003). The economic performance of regions. Regional studies, 37(6–7), 549–578. DOI: https://doi.org/ 10.1080/0034340032000108688.
Hidalgo, C. A., Klinger, B., Barabási, A.-L. & Hausmann, R. (2007). The product space conditions the development of nations. Science, 317(5837), 482–487. DOI: 10.1126/science.1144581.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2020 Svetlana Nikolaeva Rastvortseva
This work is licensed under a Creative Commons Attribution 4.0 International License.
