A Path Dependency and Cluster Competitiveness Framework to Examine Regional Marketing Systems and Conflicts

Abstract

This paper develops a framework for competitiveness that incorporates path dependency within production regions. Patterns of technological innovation, product development, institutions, and market orientation follow a certain local path. This evolution creates regional economies that emerge with unexpected competitive advantage. The model draws on previous work looking at, among other things, induced innovation. The framework is applied here to the major regional tomato producers in North America. The paper examines the role of various institutions (grower associations, governments, research institutions, and support industry) in influencing the path along which a regional sector evolves.

Searching development strategies for less-favoured areas

“…Chronic poverty and access constraints tend to inhibit farmers' willingness and ability to invest resources and efforts for overcoming the generally low factor productivity. The interlocking of socio-economic, physical and demographic factors causes a path-dependency characterized by the coexistence of diverse livelihood strategies and resource management regimes (Woods & Cook, 2003). The particular setting that characterizes farmers and villages within LFAs implies that strategic research should simultaneously address the production, consumption and resource constraints faced by specific categories of households and need be tailored towards the opportunities provided within the institutional context of local communities and thin markets.…”