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Path creation as a process of resource alignment and anchoring : Industry formation for on-site water recycling in Beijing

Binz, Christian LU ; Truffer, Bernhard and Coenen, Lars LU (2016) In Economic Geography 92(2). p.172-200
Abstract

Where and how new industrial paths emerge are much debated questions in economic geography, especially in light of the recent evolutionary turn. This article contributes to the ongoing debate on path creation with a new analytical framework that specifies the formation of generic resources in embryonic industries. It suggests that path creation processes are not only conditioned by preexisting regional capabilities and technological relatedness but also by the way firm and nonfirm actors mobilize and anchor key resources for industry formation. Our framework elaborates on the early industry development phase, extending the focus on regional knowledge spillovers in evolutionary economic geography (EEG) literature with recent insights on... (More)

Where and how new industrial paths emerge are much debated questions in economic geography, especially in light of the recent evolutionary turn. This article contributes to the ongoing debate on path creation with a new analytical framework that specifies the formation of generic resources in embryonic industries. It suggests that path creation processes are not only conditioned by preexisting regional capabilities and technological relatedness but also by the way firm and nonfirm actors mobilize and anchor key resources for industry formation. Our framework elaborates on the early industry development phase, extending the focus on regional knowledge spillovers in evolutionary economic geography (EEG) literature with recent insights on industry formation dynamics from innovation studies. It understands early path creation as conditioned by four systemic resource formation processes—knowledge creation, investment mobilization, market formation, and technology legitimation— that can be mobilized both from inside or anchored from outside the region. The use and value of the analytical framework is illustrated by a case study on on-site water recycling technology (OST), based on interviews with 40 experts in three Chinese city regions. The findings suggest that, despite possessing the least favorable initial conditions, a sizable OST industry developed only in Beijing. This is explained based on the specific anchoring process of the four key resources in the early development stage of the industry. Our results imply that EEG would profit from incorporating a broader set of variables than knowledge-based relatedness in explanations of regional industrial path creation.

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Please use this url to cite or link to this publication:
author
organization
publishing date
type
Contribution to journal
publication status
published
subject
keywords
Anchoring, Evolutionary economic, Geography, On-site water recycling, Path creation, Resources, System, Technological innovation
in
Economic Geography
volume
92
issue
2
pages
29 pages
publisher
Economic Geography
external identifiers
  • Scopus:84981333016
ISSN
0013-0095
DOI
10.1080/00130095.2015.1103177
language
English
LU publication?
yes
id
3d512a96-ca4e-40cb-836a-592d2d42ffc3
date added to LUP
2016-10-12 09:47:16
date last changed
2016-11-14 11:58:15
@misc{3d512a96-ca4e-40cb-836a-592d2d42ffc3,
  abstract     = {<p>Where and how new industrial paths emerge are much debated questions in economic geography, especially in light of the recent evolutionary turn. This article contributes to the ongoing debate on path creation with a new analytical framework that specifies the formation of generic resources in embryonic industries. It suggests that path creation processes are not only conditioned by preexisting regional capabilities and technological relatedness but also by the way firm and nonfirm actors mobilize and anchor key resources for industry formation. Our framework elaborates on the early industry development phase, extending the focus on regional knowledge spillovers in evolutionary economic geography (EEG) literature with recent insights on industry formation dynamics from innovation studies. It understands early path creation as conditioned by four systemic resource formation processes—knowledge creation, investment mobilization, market formation, and technology legitimation— that can be mobilized both from inside or anchored from outside the region. The use and value of the analytical framework is illustrated by a case study on on-site water recycling technology (OST), based on interviews with 40 experts in three Chinese city regions. The findings suggest that, despite possessing the least favorable initial conditions, a sizable OST industry developed only in Beijing. This is explained based on the specific anchoring process of the four key resources in the early development stage of the industry. Our results imply that EEG would profit from incorporating a broader set of variables than knowledge-based relatedness in explanations of regional industrial path creation.</p>},
  author       = {Binz, Christian and Truffer, Bernhard and Coenen, Lars},
  issn         = {0013-0095},
  keyword      = {Anchoring,Evolutionary economic,Geography,On-site water recycling,Path creation,Resources,System,Technological innovation},
  language     = {eng},
  month        = {12},
  number       = {2},
  pages        = {172--200},
  publisher    = {ARRAY(0x5b29180)},
  series       = {Economic Geography},
  title        = {Path creation as a process of resource alignment and anchoring : Industry formation for on-site water recycling in Beijing},
  url          = {http://dx.doi.org/10.1080/00130095.2015.1103177},
  volume       = {92},
  year         = {2016},
}