News from the IPL
EVENTS
An Evolutionary Approach to Regional Development Traps: An Empirical Analysis of European Regions
This is a recording of the recent IPL talk by Ron Boschma. Recently, the development trap concept has been introduced to identify regions that get caught in persistent patterns of low economic growth and stagnation (Iammarino et al. 2020). Evolutionary scholars have indicated that self-reinforcing dynamics can limit the capacity of regions to innovate and develop new growth paths (Arthur 1989, 1994). However, an evolutionary approach to regional development traps is still underdeveloped. We build on but also go beyond recent work by Pinheiro et al. (2022), among others, that argue that regions might become trapped in low-complexity activities, because their opportunities to develop high-complex activities are very limited, since relevant capabilities are missing.
A novel concept of regional traps is proposed that is embedded in evolutionary thinking, and that accounts for the persistent weak ability of many regions to develop new activities and upgrade their economies into more complex activities. We build on the relatedness/complexity framework (Balland et al. 2019) to measure and identify regional traps and to develop a new typology of regional traps. We aim to shed light on the possible links between regional ‘development traps’ (low growth/stagnation traps) as defined by Iammarino et al. (2020) and our new typology of “regional traps”, following an evolutionary approach (Balland et al. 2019).
We discuss the policy implications, like what to do about regional traps, how to successfully escape them, and how to avoid them in the future. This is crucial for regional innovation policy in places that find themselves trapped or run the risk of falling into a trap.
About the Speaker: Ron Boschma is full professor in Regional Economics at Utrecht University, and Professor in Innovation Studies at UiS Business School of Stavanger University. Boschma has been full professor at Lund University where he was director of the Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE).
Editor's Pick
Mission-oriented innovation policy: effects on regions and implications for place-based policy
Maryann Feldman, Michael Kitson, Johan P Larsson, Peter Tyler, Elvira Uyarra, Cambridge Journal of Regions, Economy and Society
This introduction to a special issue explores the implications of mission oriented innovation policies for regional development, drawing on theory, empirical research and case studies to examine how national missions are translated into local action. It seeks to bridge the gap between high-level mission frameworks and the regional institutions that are vital for their success, highlighting both opportunities and risks in the evolving relationship between place and purpose in innovation policy. Limited attention has been paid to how these ambitious mission agendas impact regions — the specific places where innovation activities are conducted, institutions are embedded, societal challenges are felt and social outcomes unfold.
Cities & Regions
The symbolic value of megaprojects in urban and regional development
Robert Hassink, Dieter F Kogler, Davide Ponzini, Xuefei Ren, Cambridge Journal of Regions, Economy and Society
Megaprojects serve as powerful but contested symbols, with their meanings evolving throughout the project lifecycle. Different stakeholders ascribe competing values to these ventures, making their symbolic significance inherently unstable. This special issue advances a new generation of megaproject research that examines this volatility of symbolic value. Through cases ranging from Tesla factories and TikTok data centres in Scandinavia to transportation and waterfront regeneration in Latin America, and from new city developments in China and the Middle East to global infrastructure projects such as the Belt and Road Initiative, contributors analyse how megaprojects’ purported symbolism, as economic saviours, sustainability champions or manifestations of geopolitical ambitions, is persistently contested.
Statistics
Federal investment in clean technology from 2016-2024
Innovation, Science and Economic Development
This infographic summarizes the Government of Canada's investment in clean technologies from 2016 to 2024. The Clean Growth Hub compiled these figures, drawing on data from the Cleantech Data Strategy. Total investment through the period amounts to $29 billion via over 8300 funding agreements. The data is analyzed by subsector and geographic region.
Natural Resources Canada
Developed by Natural Resources Canada, this data and dashboard provide an overview of the number of Canadian pureplay cleantech companies split by the industries they operate in and province. Pureplay cleantech companies are defined as companies that are predominantly engaged in developing and/or using innovative technologies that provide environmental benefits. This data is part of the work of the Industry Pillar of the Clean Technology Data Strategy, which is led by Natural Resources Canada and is accurate as of June 2025.
Innovation Policy
Navigating industrial policy and global value chains in an era of disruptions
Gary Gereffi, Pavida Pananond, Fredrik Tell & Tony Fang, Journal of International Business Policy
In response to recent socio-economic, environmental, and geopolitical disruptions, governments have reoriented industrial policy from a prosperity-driven to a security-driven agenda based on strengthening strategic supply chains. This introduction to a special issue provides a framework that integrates the industrial policy and global value chain (GVC) literatures, redressing two research gaps: (1) an outdated view of industrial policy based on twentieth century trade patterns; and (2) inadequate appreciation of how twenty-first century GVC dynamics shape new security-driven policies. Four strategic orientations in industrial policy are identified based on two dimensions: level of economic development (advanced versus emerging economies) and geopolitical context (global integration versus geopolitical fragmentation). Under global integration, (1) advanced economies “create winners” through inside-out policies transforming domestic champions into global competitors; and (2) emerging economies “enable latecomer catch-up” via outside-in strategies leveraging foreign investment for technological accumulation. Under geopolitical fragmentation, (3) advanced economies “enhance economic security” through restrictive outside-in policies prioritizing domestic resilience; and (4) emerging economies “strengthen supplier resilience” with hybrid approaches that maintain global connections while reducing strategic vulnerabilities.
Canadian Peter Howitt among 3 Nobel winners in economics
CBC News
Canadian economist Peter Howitt is among a group of three researchers who won the Nobel memorial prize in economics, the Royal Swedish Academy of Sciences announced Monday. Howitt, Joel Mokyr and Philippe Aghion won for their research into the impact of innovation on economic growth and how new technologies replace older ones — a key economic concept known as "creative destruction."
Directorate-General for Research and Innovation (European Commission)
Technology Readiness Levels (TRLs) are a metric used to communicate the maturity of a particular technology. This analysis uses data collected from ongoing and closed Horizon Europe projects to provide an initial overview of the level of technological maturity that projects have achieved or expect to achieve. It looks at TRL from different angles, including by programme part, type of organisations receiving funding, and sector. Findings show that there is a clear progression from lower TRLs towards testing and commercialisation. They also make a case for R&I support throughout the entire innovation journey, to ensure that excellent, groundbreaking ideas find their way into the real world to solve challenges and improve collective well-being.
One of the world's biggest AI companies wants a deal with Canada. Is sovereignty the trade-off?
CBC News
This article summarizes recent developments in Canada's development of sovereign compute capabilities. OpenAI has its eye on Canada’s energy capabilities as the company, now one of the world’s most valuable, builds out data centres to power its artificial intelligence. Meanwhile, Canada, wary of an increasingly protectionist U.S. government and the powerful American tech companies subject to its laws, is trying to distance itself from foreign players by building AI models domestically. And paradoxically, OpenAI says it can contribute to that — by building those centres on Canadian soil.
Policy Digest
Sovereignty by Design: Embedding economic sovereignty into decision making
The SHIELD Institute
This document lays out the SHIELD Score, which is an assessment tool for economic sovereignty. Defined as "restoring Canadian control and ownership over the systems and platforms that structure daily life," the document asserts that "we believe Canada should own, shape, and govern the critical systems that underpin our economy, across both physical infrastructure and digital platforms, and that more of the value created by those systems should be delivered to our economy. That means reducing dependence on foreign-controlled assets, ending unpriced digital extraction, and building public-interest alternatives when appropriate to secure long-term resilience and value at home."
This assessment breaks down elements of policy implications into two categories: sovereignty and economic transformation – as a way to evaluate whether a decision is delivering the value created from our regulatory and economic activity back to Canadians while securing our ability to ensure that value is delivered in the future.
The score includes the following elements:
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Sovereignty: This section measures if and how the policy choice increases Canada’s sovereignty and strategic autonomy?
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Does it use or incentivize the development of Canadian innovation?
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Does it enhance national economic security and defence and/or promote interoperability or open standards
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Does it reduce dependency on foreign firms or supply chains?
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Does it avoid entrenching monopolies and/or systems that concentrate power in private hands?
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Does it increase the ability for Canada to govern technology; for example, through IP ownership and data control by Canadian companies or the government itself?
2. Economic Transformation: This section measures if and how the policy delivers value-add to people in Canada, short-term and long term?
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Is the intellectual property, data and profit generated by this decision retained by Canadian firms?
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Does it create, sustain or improve jobs in Canada?
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Does it increase skill utilization or broaden the skill base of Canadian workers?
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Does it promote systems that share economic benefits broadly?
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Does it enhance affordability, quality, and innovation for consumers; not just returns for incumbents?
Events
EVENTS
Twin Transition, Ecosystems, and Disruptive Innovation
October 23rd-24th 2025, Venice School of Management - Ca’ Foscari University of Venice, San Giobbe - Economic Campus.
The 19th edition of Regional Innovation Policies Conference will take place in Venice, Italy.
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This newsletter is prepared by Travis Southin.
Project manager is David A. Wolfe