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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 249:
REGIONAL POLICY AS CHANGE MANAGEMENT - a theoretical discussion with empirical illustrations

Martin Andersson () and Börje Johansson

Abstract: The paper focuses on challenges and potentials for policy in the presence of fundamental change processes that influence the long-term evolution of regions. The perspective in the paper implies that policy can be viewed as ‘management of change’. We present a conceptual model for understanding the nature of fundamental change processes, which emphasizes slowly changing regional characteristics and invariant self-organized response mechanisms. It is supported by empirical examples of the invariant character of regional development and innovation phenomena, such as long-term population growth, export dynamics and persistence in new firm formation across regions in Sweden. The examples are put in perspective by studying the behavior of dynamic systems. A discussion of how policy may support new trajectories are provided.

Keywords: business renewal; innovation; regional policy; persistence; change-processes; dynamic systems; path-dependence; (follow links to similar papers)

JEL-Codes: O31; R11; R12; R58; (follow links to similar papers)

32 pages, April 26, 2011

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