Geography Reference
In-Depth Information
- above a certain 'threshold' - path dependence among the constituent entities induces
path dependence at the level of the 'aggregate' system, although as they acknowledge,
there is no a priori way of specifying what that 'interaction threshold' has to be before
aggregate or macro-level path-dependent outcomes become observable. Grabher (1993),
of course, argued that in the case of the Ruhr's iron and steel complex, strong inter-
linkages had produced system-level (region-wide) path-dependent behaviour. In most
regions there will be groups of inter-related or complementary industries and activities,
linked either by direct input-output relationships, or by various indirect (or untraded)
interdependencies and externalities. That is to say, various networks and structures of
inter-relatedness can emerge between dif erent sectors and activities within a region,
thus suggesting the possibility of what we might call 'path-interdependence', that is situ-
ations where the path-dependent trajectories of particular local industries are to some
degree interdependent. The extent and signii cance of this inter-linking path ef ect is a
key issue for further research. Evolutionary economists increasingly emphasise how path
dependence involves the
co- evolution
of dif erent 'arenas' - such as the economic, tech-
nological, institutional and socio-cultural. And some geographers have shown how local
path dependence in specialised clusters also occurs through such mutually reinforcing
co-evolution of local economic, technological and socio-institutional 'arenas'. But path-
dependent development may also involve the complex co-evolution of overlapping sets
of inter-related industries, and thus may be just as important in shaping the evolution of
economically diverse regions as it is in specialised ones. At present, however, there is a
dearth of research into these regional co-evolutions so that we do not know how far they
can ef ectively change the course of an industrial path, possibly by stimulating adapta-
tion and rebalancing of the local industrial structure, once again disrupting any tendency
towards a path dependent equilibrium state.
5. Economic evolution via new paths: place and path creation
In a David-type model of path-dependent equilibrium, the appearance of new paths
is ascribed to the happenstance events or exogenous shocks to the system. But if path
dependence can, in some circumstances, also be enabling then this gives us a much wider
range of possible cases of new path creation (see Table 3.2). Path creation varies both in
terms of whether past trajectories are enabling or constraining and in terms of whether
origins are intended and deliberate or accidental. As Garud and Karnøe (2001) argue,
we should not underestimate the role of purposeful, deliberate and strategic human
action (also Schienstock, 2007). In their view, entrepreneurs are embedded in paths
but not completely constrained by them; indeed they demonstrate 'mindful deviation'
from prevailing ideas and accepted ways of doing things. However, it is important to
realise that in most instances path creation will inevitably involve a complex admixture
of deliberate agency and accidental and unintended emergence. Meyer and Schubert
(2007), for example, argue that the formations of all technological paths lie somewhere
on a continuum between completely accidental and random emergence, and deliberate
intended creation. Agents are aware of emerging paths and invest in and bet on them, but
the results of their actions are not always those intended. The constitution of new paths
may be 'accidental' then in the sense that particular actions often have much longer and
wider consequences than the actors intended or envisaged (David, 1999, Puf ert, 2000).
To return to Table 3.2, what we intend to show is that while the classic model of path
