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According to some scholars in evolutionary economic geography (EEG), the role of (territory-specific) institutions is relatively small for explaining where a new industry emerges and grows as firms develop routines in a path-dependent and idiosyncratic manner. This article evaluates this assertion by studying the evolution of the biogas industry in the region of Scania in Southern Sweden. The biogas is predominantly used as a fuel in the regional transport system and is considered as a crucial means to achieve environmental goals in the region. Recently, regional public policy has been actively promoting this biogas industry, aiming for cluster development. Drawing on literature from EEG and technological innovation systems, this article seeks to unpack the evolutionary process that has led to the emergence of this industry. In particular, it studies to what extent territory-specific institutions have been crucial in that respect. The analysis is case-based, drawing predominantly on in-depth interviews with key stakeholders and firms in the industry. By doing so, the paper seeks to make a contribution to our understanding of cluster development, considering the interplay between technology, industry dynamics and institutions.
Martin et al. (2014) studied this question.
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