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This line of argument concludes that the degree of innovation novelty influences future regional industrial paths.
More recent literature argues that new industrial paths could result from two possible sources of ideas.
Path dependency theory further argues that, once created, industrial paths may develop in two directions (Martin, 2010).
In order to improve the competitive advantage of the region, industrial paths have to be regularly renewed.
From the model of regional path dependence we learn that regional industrial paths are both created and formed by structural constraints.
Secondly, if new regional industrial paths are to be created, a minimum level of innovation novelty is needed at a regional level (Tödtling and Trippl, 2013).
Similar(46)
Secondly, as the renewal of industries and industrial path transplantation depend partly on new knowledge from inter-regional contact, regions should encourage and support initiatives of that kind and perhaps also initiate such initiatives themselves on behalf of regional firms and industries.
The distinction between regional path formation in established industries and new industrial path creation is the degree of innovation novelty, where the question 'new to whom?' is essential.
Perceptions of nonacademic life make some Ph.D.s wary of venturing down the industrial path.
Still, "I certainly wouldn't advise a youngster to start" on the industrial path, says Perali.
Firm D thereby contributes to industrial path extension, a situation which, if not renewed, will gradually reduce into a stable state situation resulting in industrial path exhaustion.
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