Can small regions construct regional advantages? The case of four Norwegian regions

Abstract

The conceptual framework of constructing regional advantage (CRA) is implicitly relevant for large, well-off regions that have strong regional innovation systems, a diversity of industrial sectors and resourceful firms that can partake in global knowledge networks. This paper discusses the extent to which small regions, with less developed regional innovation systems, may also constitute the basis for developing regional advantage. Four cases of regional industries dominated by different innovation modes make up the empirical test bed in the paper. The innovation modes are STI (science, technology, innovation), CCI (complex, combined innovation) and DUI (doing, using, interacting). With some reformulations, the CRA framework also is found to represent a useful conceptual construct for small regions. Adapting the CRA framework to small regions involves focusing more on increasing the innovation capabilities at the level of the firm - placing less emphasis on the endogenous capacity of regional innovation systems, but emphasising the importance of experience-based knowledge in local labour markets - and concentrating more on the need for a diversity of knowledge bases at the regional level. Policy lessons for constructing regional advantages in small regions should, in general, consider the upgrading of DUI firms and stimulating extra-regional links.