Theoretical, Empirical and Political Perspectives on the Initial Stage of Cluster Evolution
Industrial Dynamics, Entrepreneurship and Innovation series
Edited by Dirk Fornahl, Sebastian Henn and Max-Peter Menzel
Chapter 2: Jacobian Cluster Emergence: Wider Insights from ‘Green Innovation’ Convergence on a Schumpeterian ‘Failure’
Philip Cooke INTRODUCTION 1 As is well-known, for those interested in evolutionary economic geography, Schumpeter left almost no regional or spatial analysis of economic phenomena. From the evolutionary economic geography and policy viewpoints, this is clearly disappointing. His two brief allusions are highly time–space-specific. The first concerns Schumpeter’s fourth form of innovation, which is designated regional and exemplified by the process of ‘railroadization’ – the phenomenon by which US and other agricultural lands were opened up to markets by infrastructural investments, not only in railroads but farms, grain silos and even agricultural manuals that the railroad companies of the western USA had printed so that pioneers accessing cheap land on the plains would know how to farm that land. In Jutland, Denmark, 350 community schools were established to perform some of these and other functions. This ‘regional evolution’ of land and markets was, rightly, considered an externalized organizational innovation as compared with the internalized organizational innovation of a corporation adopting new management methods that gave it a, albeit temporary, competitive edge (Schumpeter, 1975; Andersen, 2007). The second allusion is even briefer where Schumpeter mentions innovation such as the department store only being feasible in the large city due to the level of demand required to sustain such an innovation. Hence the city is seen as having some economic specificity from its scale attributes, but Schumpeter says nothing about the dynamics of the entailed processes (Andersen, 1994, 2007). In this chapter it is argued that the rather ugly word ‘railroadization’ captures...
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