Path dependence and local innovation systems in city-regions

In this paper we argue that evolutionary economic geography and particularly the concept of path dependence provide a theoretical framework within which to understand the different historical economic trajectories followed by different cities. Within this framework we identify four phases of path dependent development of new technologies or industrial sectors within urban economies. The particular characteristics of each of these phases depend on the nature and interactions of a city’s local innovation system combined with the capacity to absorb new knowledge.