The restructuring of the old industrial region of Grenland in Norway: Between lock-in, adjustment, and renewal

Abstract

While the concept of 'lock-in' has been popular as a catch-all concept for explaining negative externalities associated with entrenched institutions in old industrial regions, recent research suggests a more nuanced account centred on path-dependent evolution. More specifically, regional economic development and restructuring might be better understood if lock-in is studied in relation to other potentially co-evolving processes, such as economic adjustment and renewal. The article indicates patterns of structural change and reported innovations, and the authors question how lock-in has co-evolved with various processes of adjustment and renewal in the old industrial area of the Grenland region in Norway, focusing on the period between 2000 and 2011. They pay specific attention to various measures of restructuring in the process manufacturing industry, the related mechanical manufacturing industry, and the emergence of a local information and communications technology (ICT) industry. While the Grenland region displays elements of economic lock-in and a continued dependence on process manufacturing, it has experienced substantial structural shifts that suggest regional renewal.

Transforming old industrial regions: Constructing collaboration within the Black Country, England

“…Lock-in concepts may therefore mask alternative realities of innovation within emerging economic sectors (e.g. Tödtling et al, 2013;Underthun et al, 2014). Furthermore, evolutionary perspectives have not only been directed towards existing/emerging economic production systems, but also to the evolution of public policy within OIRs (Henderson, 2012).…”

From regional restructuring to regional renewal: Cases from Norway

“…Advocates of evolutionary economic geography point to the dynamic interplay between industrial dynamics and institutional change (Boschma & Frenken 2009;Saether et al 2011). In this special issue, in a case study of the industrial complex of Grenland, Underthun et al (2014) recognize that processes in different industrial sectors are co-evolving. Their analysis moves beyond the idea of regional lock-in, as they offer a more nuanced account of path dependence.…”

“…Even if Grenland is characterized as a region consisting of many large branch plants, its industrial structure is more diverse compared to the other cases studied in this special issue. Underthun et al (2014) identify various adjustments in different industrial segments in Grenland.…”

“…Garud & Karnøe (2001) talk about entrepreneurs' mindful deviation from existing paths. Further, different kinds of entrepreneurs are able to initiate deliberately purposive projects that may have significant implication for their surroundings (Karlsen 2011;Steen & Karlsen 2014;Underthun et al 2014).…”

Locked-in post-socialism: rolling path dependencies in Liberec’s district heating system

“…Indeed, the wider body of scholarship on the subject has often argued that path dependency is a fundamental feature of territorial evolution (Boschma 2015). This is because path-dependencies are often predicated upon lock-ins, whose inflexibility can bring about stable conditions and benefits in some contexts, while preventing the emergence of new forms of internal development and flexible adaptation in others (Underthun et al 2014). according to Setterfield (1996), lockins arise when sequential patterns of activity form a "groove" that render the system "over-committed" to particular technologies, industries, or institutional regimes.…”