Lock-In or Lock-Out?: How Structural Properties of Knowledge Networks Affect Regional Resilience

Abstract

The paper develops an evolutionary framework of regional resilience with a primary focus on the structural properties of local knowledge networks. After a presentation of the network-based rationales of growth and structuring of clusters, we analyze under which structural conditions a regional cluster can mix short run competitiveness without compromising long run resilience capabilities. We show that degree distribution (the level of hierarchy) and degree correlation (the level of structural homophily) of regional knowledge networks are suited properties for studying how clusters succeed in combining technological lock-in and regional lock-out. We propose a simple model of cluster structuring in order to highlight these properties, and discuss the results on a policy-oriented analysis. We conclude showing that policies for regional resilience fit better with ex ante regional diagnosis and targeted interventions on particular missing links, rather than ex post myopic applications of policies based on an unconditional increase of network relational density.

Keywords: Resilience, clusters, degree distribution, assortativity, regional policy, networks

JEL Classification: B52, D85, O33, R11, R12