Southern Germany’s innovation clusters: regional growth coalitions in the knowledge economy

Frieder Mitsch, Anke Hassel and David Soskice

LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library

Abstract: This paper examines Germany’s distinctive path toward the knowledge economy, emphasizing the role of regional innovation dynamics and governance, with a focus on Southern Germany’s high-innovation clusters. Unlike other advanced economies that pivoted toward high-tech services, Germany has prioritized digital advancements within its manufacturing base, creating a model driven by smart manufacturing and Industry 4.0. We argue that regional growth coalitions, formed by firms, social partners, and local governments, foster institutional configurations supporting knowledge-based and innovation-focused competition. This regionalized governance has enabled Southern Germany to capitalize on Germany’s innovation agenda, a success that other regions have struggled to replicate. By analysing multi-scalar dynamics—interactions across regional, national, and EU levels—our study expands evolutionary economic geography (EEG) and political economy literature, challenging traditional, nation-centric frameworks. Our findings highlight that cohesive regional governance can enhance national and supranational innovation strategies, underscoring the importance of regional institutions in advancing and sustaining knowledge economy innovation.

JEL-codes: L52 O18 O33 R11 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2024-12-05
New Economics Papers: this item is included in nep-cse, nep-geo, nep-hme, nep-ino, nep-inv, nep-knm, nep-sbm and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:126264

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