Scandinavian Working Papers in Economics

Papers in Innovation Studies,
Lund University, CIRCLE - Centre for Innovation Research

No 2019/8: The Role of Trust in Regional Development

Markus Grillitsch () and Magnus Nilsson ()
Additional contact information
Markus Grillitsch: CIRCLE, Lund University, Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden
Magnus Nilsson: CIRCLE, Lund University, Postal: CIRCLE, Lund University, PO Box 117, SE-22100 Lund, Sweden

Abstract: Regional development is a dynamic process where relatively stable periods are interrupted by phases of more rapid transformation and disruption. Such dynamics are heavily influenced by the scope and nature of knowledge networks. Trust is a key mechanism influencing the mobilization of networks for learning and innovation and thereby an important factor for understanding regional development. This paper sets out to unpack the role of trust in regional development by advancing a differentiated view that sheds light on why, when, and how trust affects regional development dynamics in a positive or negative way. Avenues for future research are identified.

Keywords: Regional dynamics; trust; networks; path-dependency; path emergence; lock-in

JEL-codes: L14; L16; R11

26 pages, May 24, 2019

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