Regional innovation policies for new path development - beyond neo-liberal and traditional systemic views

How new regional growth paths emerge and what policy concepts are most adequate for nurturing their evolution constitute recurring themes in regional innovation and development studies. New industrial paths are often portrayed as the result of market-driven processes and Schumpeterian entrepreneurial efforts. This view goes along with a neoliberal policy approach that restricts the role of public interventions to setting up a suitable regulatory frame and supporting an entrepreneurial climate. The theoretical underpinnings and policy perspectives of this approach have been challenged by the innovation system literature, which offers a systemic view on the rise of new growth paths and advocates a more proactive role of public policy. This paper investigates the role of policy models beyond these traditional ones. We contrast different variants of systemic and multi-scalar policy concepts for new regional industrial path development. Our literature-based study shows that more recent models go beyond new path development and growth per se, paying more attention to the direction of innovation and change, and to policy approaches for achieving more sustainable forms of development. We scrutinize the theoretical and empirical bases of these new policy models and discuss why they are superior to neoliberal and older systemic ones.