Despite the rapidly expanding literature on agency in regional development, the methodological approaches available to study it have not followed theoretical development and empirical studies. This article aims to shed light on methodological issues related to the study of path dependence, path creation and agency. The article’s main purpose is to construct a methodology - path tracing - that would allow studying path development by scrutinising how structures constrain actors and how actors work to shape the very same structures in which they are embedded. Path tracing draws on critical realism, process tracing and structured narrative analysis.