78 A. Klitkou et al.
and becomes path- dependent (p. 691). Therefore, non- predictability and the
coexistence of several outcomes are typical characteristics at the start of
the process, while inflexibility comes later and inefficiency is typical only of
the last stage. This implies that new paths can eventually evolve into barriers
for the creation of fundamentally new paths because they bind resources, such
as human, economic, institutional and scientific resources. Simmie (2012) has
pointed out that in this way a former competitive technology can become the
basis of a declining industry (p. 758).
Building on earlier work on the path dependency of technologies and economic activities, more recent scholarly work has highlighted opportunities for
developing new industrial paths (Garud, Kumaraswamy & Karnøe, 2010;
Martin, 2010). Drawing on evolutionary approaches, these contributions
highlight how regional path development is influenced by existing conditions,
but may nevertheless take multiple forms (Coenen, Asheim, Bugge &
Herstad, 2016). Declining old industrial regions have to develop regional
development strategies to ‘break out of locked- in paths of development by
pursuing innovation, new technological pathways and industrial renewal’
(Coenen, Moodysson & Martin, 2015, p. 851). Different taxonomies of possible path developments have been developed, such as the six types defined
by Grillitsch and Trippl (2016), who distinguish between path extension, path
upgrading, path modernisation path branching, path importation and path
creation, or the taxonomy introduced by Isaksen (2015), which distinguishes
between path extension, path exhaustion, path renewal and path creation. Of
course, these are ideal types, which may combine in reality. Path renewal and
path creation tend to require institutional change and the building of new
knowledge organisations, while path exhaustion is characteristic of regional
industries which are locked into activities that predominantly follow existing
technological paths, limiting their opportunities for going in new directions.
We use here the taxonomy introduced by Isaksen (2015).
Path exhaustion describes a development where the innovation potentials of
local firms are highly reduced and these firms are not able to adapt to technological and market changes.
Path extension is defined by the continuation of an existing industrial path
based on incremental product and process innovations in existing industries
and well- established technologies.
Path renewal occurs when existing local industries restructure and branch
into new, but technologically related industries.
Path creation is defined as the emergence of new industries based on radically new technologies and scientific knowledge, new business models or userdriven innovation.
Regional actors and their networks are central to how lock- ins and path
development can be addressed. The possibilities of a firm to engage in path
development are highly dependent on the firm’s organisational capabilities for
innovation. Such capabilities include strategies for innovation, prioritisation
of innovation, innovation culture, idea management, external linkages,
and becomes path- dependent (p. 691). Therefore, non- predictability and the
coexistence of several outcomes are typical characteristics at the start of
the process, while inflexibility comes later and inefficiency is typical only of
the last stage. This implies that new paths can eventually evolve into barriers
for the creation of fundamentally new paths because they bind resources, such
as human, economic, institutional and scientific resources. Simmie (2012) has
pointed out that in this way a former competitive technology can become the
basis of a declining industry (p. 758).
Building on earlier work on the path dependency of technologies and economic activities, more recent scholarly work has highlighted opportunities for
developing new industrial paths (Garud, Kumaraswamy & Karnøe, 2010;
Martin, 2010). Drawing on evolutionary approaches, these contributions
highlight how regional path development is influenced by existing conditions,
but may nevertheless take multiple forms (Coenen, Asheim, Bugge &
Herstad, 2016). Declining old industrial regions have to develop regional
development strategies to ‘break out of locked- in paths of development by
pursuing innovation, new technological pathways and industrial renewal’
(Coenen, Moodysson & Martin, 2015, p. 851). Different taxonomies of possible path developments have been developed, such as the six types defined
by Grillitsch and Trippl (2016), who distinguish between path extension, path
upgrading, path modernisation path branching, path importation and path
creation, or the taxonomy introduced by Isaksen (2015), which distinguishes
between path extension, path exhaustion, path renewal and path creation. Of
course, these are ideal types, which may combine in reality. Path renewal and
path creation tend to require institutional change and the building of new
knowledge organisations, while path exhaustion is characteristic of regional
industries which are locked into activities that predominantly follow existing
technological paths, limiting their opportunities for going in new directions.
We use here the taxonomy introduced by Isaksen (2015).
Path exhaustion describes a development where the innovation potentials of
local firms are highly reduced and these firms are not able to adapt to technological and market changes.
Path extension is defined by the continuation of an existing industrial path
based on incremental product and process innovations in existing industries
and well- established technologies.
Path renewal occurs when existing local industries restructure and branch
into new, but technologically related industries.
Path creation is defined as the emergence of new industries based on radically new technologies and scientific knowledge, new business models or userdriven innovation.
Regional actors and their networks are central to how lock- ins and path
development can be addressed. The possibilities of a firm to engage in path
development are highly dependent on the firm’s organisational capabilities for
innovation. Such capabilities include strategies for innovation, prioritisation
of innovation, innovation culture, idea management, external linkages,