Relatedness, Transversality and Public Policy in Innovative Regions

The aims of this paper are to reflect on policy evolution observed in the EURODITE study regions, to identify the most innovative policy trajectories for delivering growth opportunities to regional firms and to explain this in terms of key theoretical findings about the virtuous policy cycles that arise from geographical proximity, co-evolution, path interdependence, relatedness and transversality. Accordingly, the paper involves, first, assessing the role of varieties of "proximity" in the formation of spatial distinctiveness. Second it investigates the appropriateness or otherwise of notions of "path dependence" to understanding spatial co-evolution. This leads to insights about "relatedness" in the interaction of path dependences, or more accurately path inter-dependence in evolving spatial processes, notably interactions between regional innovation paradigms and regimes in explaining regional variety. This allows eventual conjecture regarding the evidence for "regional regime variety" based on appropriately selected EURODITE regions (Bavaria, Midi-Pyrenees, Skane, Styria) both as an advanced "platform" model of regional evolution and as a fundamental process that blocks regional homogenization. This would explain how regional culture influences policy to maintain regional specificities under forces like globalization and "digital culture" that are purported to be erosive of regional distinctiveness. Strong empirical evidence is adduced for co-evolutionary and multi-level spatial distinctiveness in paradigms and regimes that condition contemporary innovation knowledge flows.