Exploring evolutionary economic geographies

Evolutionary approaches in economics have gathered increasingsupport over the last 25 years. Despite an impressive body ofliterature, economists are still far from formulating a coherentresearch paradigm. The multitude of approaches in evolutionaryeconomics poses problems for the development of an evolutionaryeconomic geography. For the most part, evolutionary economicgeography imports selective concepts from evolutionary biologyand economics and applies those concepts to specific problemswithin economic geography. We discuss a number of problems withthis approach and suggest that a more powerful and appealingalternative requires the development of theoretically consistentmodels of evolutionary processes. This article outlines thecontours of an evolutionary model of economic dynamics whereeconomic agents are located in different geographical spaces.We seek to show how competition between those agents, basedon the core evolutionary principles of variety, selection andretention, may produce distinct economic regions sharing propertiesthat differentiate them from competitors elsewhere. These argumentsare extended to illustrate how the emergent properties of economicagents and places co-evolve and lead to different trajectoriesof economic development over space.     

Telephone Communication Patterns in Austria: A Comparison of the IPFP-based Graph-Theoretic and the Intramax Approaches

Two alternative methodological approaches (the IPFP-based and the intramax procedures) to the problem of pattern identification in spatial interaction data are compared and evaluated in this paper. After a general discussion of the major characteristics and shortcomings of these methodologies, the paper presents the findings of a case study relying on telecommunication data measured by the Austrian PTT in 1991, in terms of erlangs. The results clearly illustrate the superiority of the intramax approach in the context of medium-sized and relatively centralized flow systems.     

Regional technological change and path dependency in the Danish food processing industry

Evolutionary theories of technological change arguably exert the greatest impact on our understanding of technological change. According to evolutionary economic theory the process of technological change is driven by the continual creation of technological variety through innovation and innovative firm entry and the destruction of variety through the processes of imitation (diffusion), selection and plant exit. This joint process of variety creation and destruction translates micro-economic diversity into technological progress. A third principle of evolutionary economic theory is the principle of heredity, the communication of information and knowledge over time. The dependence of technology on past and existing knowledge tends to move firms, regions and countries along relatively well-defined technological trajectories. In this paper technology is measured as a pair of capital and labour input coefficients. Empirical analysis of the Danish food processing industry reveals that technology varies markedly across regions and that differences in regional technological performance persist over time. Multivariate analysis of variance confirms that spatial variation in techniques of production is significant. This study underpins the evolutionary theory of technological change confirming that in the Danish food processing industry, regions move along relatively well-defined technological trajectories.     

Agglomeration economies and productivity differences in US cities

Plant-level data from the Longitudinal Research Database ofthe US Bureau of the Census are employed to estimate the impactof agglomeration economies on industry productivity across USmetropolitan areas. This analysis seeks to remedy three shortcomingsof previous empirical studies of agglomeration economies: relianceon aggregate spatial or sectoral data; lack of attention tospatial dependence in data; and representation of agglomerationeconomies with vague proxies such as city-size. We show howa number of establishment-, industry-, and city-specific factorsinfluence labor productivity across US cities, and we pay particularattention to separating the influence of different kinds ofagglomeration economies on firm efficiency. Here we follow Marshall'sPrinciples of Economics in examining the spatial concentrationof input–output linkages, the character of local laborpools and embodied technological spillovers.