Institutional Layers, Connectedness and Change: Implications for Economic Evolution in Regions

The overall objective of this paper is to better understand regional change from institutional and economic perspectives. The paper introduces the concept of institutional layers in order to analyse the interdependencies between institutions of different types and spatial scales, and to investigate institutional change processes in a regional context. It suggests that the diversity and connectedness of institutional layers are key dimensions for explaining economic evolution in regions. Based on these two dimensions, the paper introduces a typology of regions and relates this typology to economic evolution and growth as well as the likelihood of fragmentation, lock-ins and disruptive changes.