1. Lecture 1 - Introduction: economic geography and its recent paradigms
Economic
Geography
and
Sustainability
WS 2021-20220
Lecture 3 – 10.11.2021

2. • 27-10: Introduction
• 03-11: Making progress towards the SDGs through the lens of
evolutionary economic geography (EEG)
• 10-11: Governance of sustainability transitions
• 17-11: Slow innovation and circular economy
• 24-11: Corporate social responsibility vs. corporate spatial
responsibility and Greenwashing effect
• 01-12: Mission-oriented innovation policies and sustainable
economic geography (e.g., degrowth; EU Green Deal)
Third lecture of this WS 2021-22
Direct link literature

3. I Part:
• A recap of last week’s lecture
• Defining (territorial) governance
• Why governance matters in the context of “Transitions”
:::10 minutes Break:::
II Part:
• Defining sustainability transitions (ST)
• Where EG stands in ST debates
• Socio-technical dimension
• Multi-level dimension
• Geographical dimension
III Part:
• Open debate, retrospective or forward looking
In today’s lecture
Sustainability
transitions

4. A recap of last week’s lecture
Grand sustainability challenges such as climate
change, degradation of ecosystems, biodiversity loss,
waste production and disposal, lack of clean water,
poverty, or socio-spatial inequality pose
extraordinary societal risks.
The global initiative to target 17 sustainable
development goals (SDGs) and the Paris
climate agreement, Green Deals etc.
Underline the urgency of these challenges

5. A recap of last week’s lecture
Evolutionary
economic geography
Sustainable development &
Sustainable Development Goals
Pluralism  multi- trans-disciplinary
(Barnes and Sheppard, 2010)
Understanding how the spatial
organization of economic processes –
production, distribution and
consumption – are transformed over
time (Boschma & Martin 2010; Hassink et al. 2009).
Why regional economies become
locked into development paths that
lose dynamism, whilst other regional
economies seem able to avoid this
danger? (Martin and Sunley, 2006).
Humanity must change its practices
production and consumption etc.,
quickly and strategically
Collective efforts + public and
private institutions play a role

6. A recap of last week’s lecture
Reducing the physical distance
production and consumption,
technological innovations and
new infrastructures
Establishing direct links
with consumers
Adding value to
local resources
Developing appropriate
communication strategies (Horlings et al 2020; Brunori and Galli, 2016)
Transition in
discourse and
practices from the
global to local

7. Small wins
approach as
a new
governance
strategy to
deal grand
societal
problems
Bours et al. 2021
Accelerating
bottom-up
initiatives
guided by
a shared
mission.

8. Integrating solutions to adapt territories for climate change
Lin et al. 2021

9. A recap of last week’s lecture
U.S. Energy Information Administration
• Norway compensates by intensive
investments in the transition to a carbon
capture and sequestration strategy.
• Energi21 is the Norwegian national
strategy for research, development,
demonstration, and commercialization of
new energy technology.
• Norway was among the pioneers in
exploring the potentials of wave and tidal
energy within their energy transition
strategy
• Critique…
Norway is the third largest exporter of
natural gas in the world and exports
around 2% of the world’s oil trade
(Norby et al, 2019)

10. Business as usual

11. Sustainability
Transitions
EG SD
SDG
Actors
Evolutionary
Governance
Space/
Scale
Research
expertise

12. In recent years, governments, NGOs, pressure groups
across the globe have developed environmentally
friendly plans to curb the economic and ecological
crisis. Broad societal and industrial transformations
should accelerate and widen in scope sustainable
modes of production and consumption.
Moving forward
(Markard et al 2020; Coenen & Truffer, 2012)
Sustainability transitions
a major opportunity (?)

13. Conditions for sustainability transitions
Governance dimension
Geographical
dimension
Socio-
technical
dimension
Co-evolution of
new technologies,
small niches
(satisfying specific
market needs)
(Coenen et al. 2015;
Smith et al., 2010)
Changes in
markets and
energy systems
Policy and cultural discourses & unavoidable interests

14. Sustainability transitions > research gaps
::::::::::::::::::::Governance dimension:::::::::::::::::::::
Globally there is an emerging movement where
innovative, new sustainable solutions are being
experimented, shared, scaled and translated -
requiring >new approaches< to spatial/territorial
governance, to accelerate sustainability transitions
(Loorbach et al. 2016)

15. Sustainability transitions > research gaps
::::::::::::::::::::Geographical dimension ::::::::::::::::::
Questions concerning where sustainability
transitions take place and why have remained largely
off the radar in this otherwise increasing field of
studies.
(Coenen & Truffer, 2012)

16. How do we define governance?

17. Positioning territorial governance
within spatial-multilevel governance
(link OLAT)

18. Defining territorial governance
sustainable spatial development
(link OLAT)
Disrupting established systems

20. Defining territorial governance
Going beyond government-based decision-making
MARIANA MAZZUCATO
Territorial
governance

21. In 2013, Mariana Mazzucato published her
seminal book The Entrepreneurial State in
which she shows the importance of state
intervention in the economy to foster
radical technological innovations
(Mazzucato, 2013).
The State (public admins.), she says,
has/have been behind every major
technological innovations of the past.
✓ Think of the Internet, biotechnology,
robotics, or even every major
component of the iPhone.
✓ Governments through various
initiatives/policies promote localized
technological innovations > foster entre.
Entrepreneurial State/Region: basics
(OLAT)

22. Entrepreneurial State
✓ Directly, the most famous example
being the program Defense
Advanced Research Projects Agency
(DARPA) in the United States;
Read more here
✓ Indirectly through massive tax-breaks
and public procurements +
investment infrastructures
(hard/soft), of which Tesla and
SpaceX are prime examples;
Indirectly public admin. support
(cold war period)

23. The State behind the iPhone
Steve Jobs highlights the fact that underlying the
success of a company like Apple – at the heart of the
Silicon Valley revolution – is not (just) the experience
and technical expertise of its staff, but (also) their
ability to be a bit ‘crazy’, take risks and give ‘design’ as
much importance as hardcore technology.
(Mazzucato, 2013).

24. Why territorial governance matters in the context of
Economic Geography and Sustainability transitions
Brings together
the terms ‘territory’, ‘space’ and ‘place’ (Elden 2010; Giddens 1981)
Devotes attention to
How knowledge of territorial specificities and the territorial impacts of various
courses of action are used in decision-making
Stead and Kovács, 2016; Lisa Van Well and Peter Schmitt, 2016
This includes ways in which the need for territorial knowledge (for
instance, technical knowledge of the impacts of climate change) is
identified, understood and integrated into governance.
Place-based decisions involving production, distribution and consumption
Supports active responses to
common societal challenges such as sustainable development, climate
change, social exclusion, territorial cohesion and competiveness

25. Why territorial governance matters in the context of EG
& Sustainability > territorial focus > examples
Baltic Sea Region
Danube Region
Multiple scales, territories (i.e., identities; political), cultures, interests,
ambitions, realities, various “economic geographies”
Changing
processes
across scales

26. Again, let’s look to the big picture here >
sustainability transitions
Doing things
differently
Institutional barriers are the
hardest for small wins
to overcome and
achieve wider impact

27. Critique > territorial governance > EG&S
The vision of these new, sustainable-oriented
territories valuing local tangible and intangible
elements is a result of the desire expressed by
an increasing number of consumers, often from
urban areas, anxious about environmental
issues, to preserve and contemplate natural
areas.
Torre and Traversac, 2011
They want to consume authentic food products,
products from sustainable farming practices with
SD as a vocation.
How local communities deal with this
contradictions of seeking calm environments
versus
sustain their families?

28. Key: discussing sustainability transitions is not only about
Urban, Rural or the Industrial > territories and connections
Sources Sources Sources
Transitions research would do well to take a closer look
at the geographical unevenness of transition processes
from the perspective of global networks to the local.
Coenen et al. 2012

29. Disentangle sustainability transitions
The need for spatial analyses of sustainability transitions (ST)
How do we define transitions ?

30. Transitions > from Latin transitionem
go or cross over
passage from one state, stage to another
evolution from one form to another
changeover
development
transformation
shift
realignment
turn
innovation

31. Transitions are defined as the result of co-evolving processes in economy,
society, ecology, and technology that progressively build up toward a
revolutionary systemic change on the very long term (Rotmans et al. 2001;
Frantzeskaki and de Haan 2009; Loorbach 2010).

32. Defining transitions
Transition is here understood as shifts or ‘system innovations’
between distinctive socio-technical configurations encompassing new
technologies but also corresponding changes in markets, user
practices, policy and cultural discourses as well as governance
configurations (Ehnert et al., 2018; Geels et al., 2008).
Geels and Schot (2010) characterize transitions according to:
(1) co-evolution and multiple changes in socio-technical
systems
(2) multi-actor interactions between social groups including
firms, user groups, scientific communities, policy makers,
social movements and special interest groups,
(3) ‘radical’ change in terms of scope/nature of change (but
not speed – doing things differently, strategically)
(4) long-term processes over 40–50-year periods.

33. Defining transitions
Transitions typically unfolds over distinct phases including…
Pre-formation / Start-up > formation of
new niche technologies / discovery
Acceleration > upscaling and massive
diffusion of those core technologies
(Geels and Schot 2010)
Example > in the case of energy transitions,
renewable energy technologies that help
achieve key environmental goals as
decarbonization (i.e., reduction or
elimination of carbon dioxide from energy
sources).
Stabilization > socio-technical
configuration stabilize

34. Most countries are still in the first two of these phases
which is also what research has been investigating
To address grand societal and sustainability challenges transitions
need to enter the acceleration phase.
Climate change > new tech
Food security > social inequality
High urbanization > densify/multi use/decarb
Biodiversity loss > nature conservation
(Markard et al 2020)

35. (Campbell et al 2018)
Transition within agriculture and food systems
Short- and long-term impacts need to be understood.

36. Transitions > sustainability transitions
Progress has been rather limited, because existing systems of provision and
consumption exhibit high degrees of inaction (Sachs et al 2019)
As a response: interdisciplinary field of research on ‘sustainability transitions’
emerged (Markard et al 2012).
Sustainability transitions are fundamental changes in socio-technical systems such
as energy, food or transport that aim to address grand challenges in a way that
meets the needs of the present without compromising the ability of future
generations to meet their own needs. (Geels 2011).
Sustainability transitions research investigates how radical innovations emerge,
struggle with incumbent/deeply rooted interests, and eventually lead to major
changes (Coenen et al 2011)

37. Current research within ST

38. Debate

39. Where EG stands in ST debates
While many sustainability challenges are global, transitions research often
focuses at the regional or local level, where situated innovations and
interactions between policymakers, firms, consumers, and civil society
organizations can be empirically analyzed. (Markard et al 2020)
EG is focused on
• Innovations, including the spatial organization of
novel technologies to explore wind or solar power
• Alternative business models (e.g., circular economy)
• Understanding changes in social practices and
linkage to territory (e.g., sharing or consuming less).
• Technological change is viewed as an integral
element of wider social, political and corporate
transformation processes and responsability
(Köhler et al 2019)

40. Where EG stands in ST debates
Space is relational (relational economic geography):
Distance between actors affects how they interact – regular interactions between
actors can build up into more solid connections, institutions and networks which in
turn can support further ‘remote’ relationships > new niches, new technologies.
(Bathelt and Glueckler, 2003)
Appreciation of the importance of overlapping relationships and networks,
alongside providing a set of conceptual tools for understanding their place-specific
impacts.
What a geographical analysis brings?
Explaining the uneven geographical landscape of innovation and technological change
Identifying key spatial dimensions of sustainability transitions > address inequalities
Understanding socio-technical systems as semi-coherently interrelated sets of actors,
networks institutions and technologies within a multi-level perspective (MLP)

41. Socio-technical dimension of ST
Technological developments and social change
influence each other.
(Kemp, 1994; Rip and Kemp, 1998; Kemp et al. 1998; van den Ende and Kemp, 1999; Geels
and Schot, 2007; Rip, 2018; Romero-Lankao et al. 2018)
Sociotechnical and
Socioecological
Theories of
Transformation
Multilevel
processes through which
socioecological and
technical systems
experience
transformations

42. Socio-technical because
A technological
dimension
Changes in practices
in institutional
structures
Changes in cultural
meaning and
behaviour
Changes in
markets
in tech policy
(Schot and Kanger, 2016)

43. Example of a socio-technical system
Geels, 2005
Transportation

44. Socio-technical > current research
Analysing long-lasting transformation processes of socio-technical
systems, such as the transition from conventional to renewable energies
(good references are Frank Geels and Johan Schot)
Understanding better the relationships between the technical network, the
user, the environment, the institutions responsible, and society at large
(Furlong, 2010)
Explaining social preconditions for the development of socio-technical
systems as well as their impact on society (Truffer, 2008)
A commonly shared starting point on which all strands of
economic geography and SST research agree is related to
the importance of innovations in society.

45. Technological transitions as evolutionary
reconfiguration
From socio-technical systems
To the socio-technical transitions
Summary:
Socio-technical transitions do not only involve technological changes, but
also changes in elements such as user practices, regulation, industrial
networks, infrastructure, and symbolic meaning. (Geels, 2002)
Within a multi-level perspective (MLP)

46. The multi-level perspective (MLP)
The MLP can be regarded as a hybrid theoretical framework bridging science
and technology studies and evolutionary economics
Stabilizing influence of a
socio-technical regimes
(rule-set embedded in complex of practices)
(Coenen et al. 2012)
MLP in-depth understanding of the complexity of scientific
knowledge, engineering practices, production process
technologies, product characteristics, skills and procedures,
established user needs, regulatory requirements, institutions
and infrastructures > ‘strengthening’ socio-technical regimes
(Rip and Kemp, 1998).
The multi-level perspective (MLP) on
socio-technical transitions is about ‘consolidation’

47. The multi-level perspective (MLP) on
socio-technical transitions
(Geels, 2002)

48. Trying to simplify an otherwise complex endeavor
Idea
Novelty
Niche
Gap
Find a path
Fuel it
Accelerate it
Scale-up of local
solutions

49. Lin et al. 2021
Challenges of
implementing green
spaces?
> improve existing ones
Limited financial
resources?
> leverage existing
projects; pay for
ecosystems services;
ask the private sector

50. Your essay
Play between global and local
Research needs > accelerating local solutions

51. The MLP on socio-technical transitions >
From idea to market or practical application
External conditions
Governance
Configurations
i.e. coordination;
rooted practices;
know-how
Incubation rooms
for networks and
knowledge
Idea
Application
(Geels, 2002)
Lieferkettengesetz
Your essay?

52. The MLP on socio-technical transitions >
From idea to market or practical application
Multi-Actor-Network
(Geels, 2002)

53. (Geels, 2002)
Multi-Level Dynamics
Transition

54. Hence, transitions are
An outcome of multidimensional
interactions between radical niche-
innovations, an regimes (e.g. governance
configurations) and external
factors/conditions (Verbong and Geels 2010)
Multiple levels as a nested hierarchy

55. The multi-level perspective (MLP) on
socio-technical transitions
The MLP has been applied empirically in various historical cases
• Hygienic reform of wastewater disposal in Netherlands (Geels, 2006)
• The transition from horse-drawn carriages to automobiles in the US
1870–1930 (Geels, 2005)
• Emergence of renewable energy in the Netherlands (Verbong et al.,
2008).

56. Geography of sustainability transitions

57. Importance of a spatial understanding
of transitions towards sustainability
Spatial distribution of ‘transitions’ (or benefits)
(Affolderbach and Schulz 2015; Bulkeley and Broto 2013; Hodson and Marvin 2009)
Importance of contexts for transition processes
(Bridge et al. 2013; Coenen and Truffer 2012; Faller 2015; Faller and Schulz 2017; Murphy 2015)
climate change experiment
production and disposal of waste
The energy challenge in the twenty-first century is to bring about a
new transition, towards a more sustainable energy system
characterized by universal access to energy services, and security
and reliability of supply from efficient, low-carbon sources.

58. Importance of a spatial understanding
of transitions towards sustainability
Spatial dimensions of networks (local to global to local)
(Binz et al. 2014; Coenen et al. 2012; Gibbs and O’Neill 2015)
Governance of transitions at across scales
(Coenen et al. 2012)
By tracking the activities of core actors over time, processes like
knowledge creation, entrepreneurial experimentation or market
formation can be related to specific spatial setups
Apart from showing where and when specific innovations develop and
diffuse, a - spatial perspective also sheds light on how innovation
processes might interrelate between seemingly unrelated places
Ability to work together locally, and persuade or compel sufficient
external agents to support their activities i.e., a coordinated response
and the availability of resources
Smith et al 2015

59. Example: Importance of a spatial understanding
of transitions towards sustainability
Christian Binz,
Bernhard Truffer and
Lars Coenen 2015
Mapping global
knowledge dynamics
of membrane
bioreactor
technology
-
Environmental
technology aiming
at biological
wastewater
treatment (1966)

60. Importance of a spatial understanding
of transitions towards sustainability
Transitions are spatially-constituted, a geographical perspective
on transition foregrounds questions about:
• spatial difference;
• relations of position and connection; and
• spatial configuration and scales of organization (Bridge et al 2013)
Two geographical concepts that are key to understanding
spatial difference of transitions:
• space > spatial embeddedness
• scale > multiscalar interactions
(Hansen and Coenen 2015)

61. Spatial embeddedness > creating/securing ties
Approaches in Economic Geography Spatial embeddedness
Evolutionary EG Regional industry structures > related and
unrelated variety > path dependence
Relational EG Relational embeddedness > historical ties
Institutional EG Formal and informal institutional
preconditions > territorial governance
Geographical political economy Economic organization under capitalism, the
role of the state > evolutionary governance
Proximity or nearness in geographic space
has been found to be extremely important
in technological development processes
whereby people make and break a
number of different types of relationships,
even at very local scales, may endure
subsequent geographical separation…
Habinek et al 2015

62. Summary
The origin of the current sustainability transitions theories
Where STs take place and why; two key concepts – space and scale;
lack of original theories – under investigation
• Energy production
• Food systems prime domains research/practice
• Transportation
Useful in tracing historically societal transformation; lacks spatial
dimension essential to understand maturation processes
Socio-technical systems
Multi-level perspective
Geography of sustainability transitions
Territorial governance
settings

63. Debate

64. Key ingredients:
sustainability
transitions

65. Key ingredients: ST in cities and regions
(Lars Coenen)
Clear, well-defined processes and strategies
1) Go beyond entrepreneurial discovery and knowledge exploitation
2) Towards open-ended, inclusive experimentalism based on
socio-technical innovation and socio-ecological innovation

66. Key ingredients: ST in cities and regions
(Lars Coenen)
Strong ‘experimentalism’ e.g., during COVID-19
Acuto et al 2020

67. Key ingredients: ST in cities and regions
(Lars Coenen)
Doing it with a purpose – doing it strategically
1) Beyond growth poles and uneven development assessments
2) Social and ecological impact of transitions (not only economic)
3) Foundational Economy (‘a new way of thinking which
challenges mainstream ideas about what economic policy
should be’) + collective responsibility
(Barbera et al. 2020)
Policy integration
1) Sustainable smart specialization strategies
2) Governance experimentation but locally-based and embedded
3) Pop up innovation systems – ‘our role’; ‘your role’
4) Challenge-oriented innovation policies (e.g., mission oriented)
(Wanzenbock and Frenken 2020)

68. Key ingredients: acceleration of
sustainability transitions Markard et al 2020
Challenge-oriented approach > addressing acceleration challenges
Complementary interactions between multiple innovation
systems
In Germany, for example, there is a lack of transmission grid capacity
to transport electricity from wind parks in the North to the centers of
consumption further south, hampering the acceleration of the
renewable energy transition.
In electricity, the integration of renewable energies is a key issue in this
regard. Solar or wind require complementary storage technologies
such as batteries or hydropower to provide back-up capacity
Overcoming tensions as interactions between different systems
intensify
For example, Norway, a country with an abundance of hydropower,
is pursuing a strategy to electrify transportation, heating and
industrial production for deep decarbonization. This may create
tensions, e.g., as different sectors compete for the same resource.

69. Key ingredients: acceleration of
sustainability transitions Markard et al 2020
Challenge-oriented approach > addressing acceleration challenges
Think strategically phase-out policies – integrated planning
Accomplish wider societal support for long-term transition targets and
to form broad constituencies of actors who are in favor of the transition,
e.g., as they benefit from jobs in clean-tech industry.
In Germany, for example, policymakers are helping regions suffering
from the decline of lignite mining by providing financial compensation,
establishing innovation parks (e.g., on energy efficiency), and supporting
new industries.
Focus on consumers and social practices
• For instance, electric vehicles presently require changes in trip
planning and refueling practices.
• Reducing levels of consumption is desirable but difficult.

70. Key ingredients: acceleration of
sustainability transitions Markard et al 2020
Reducing levels of consumption is desirable but difficult
….are important for sustainability reasons.
But such demand reductions are culturally and politically
challenging because consumption is closely related to social
norms (e.g., freedom; democratic principles) and
established practices around work, family and identity.
(Dubois et al 2019)
Climate policies targeting household consumption
and behavioral decisions

71. Relationship between acceptance and environmental
improvements of different consumer practice changes
(Dubois et al 2019)
The reduction of
consumption levels is
more challenging,
because policymakers
and environmentalists
are cautious about
lecturing consumers
about their lifestyles as
this may evoke
resistance, hinder
economic growth, or
threaten jobs.

72. Key ingredients: acceleration of
sustainability transitions Markard et al 2020
Governance > political power > lobbies
The acceleration of sustainability transitions is not only associated with
public policies that stimulate innovation or target decline, but also with
broader governance challenges
The European Commission, for instance, can formulate ambitious
visions (e.g., Energy Union, Circular Economy policies, Green Deal),
but has relatively limited financial resources (capped at 1% of
European GDP) to realize them.
Sustainability transitions require a shift from a neo-liberal policy
paradigm and hands-off policy style towards a more interventionist
approach with a stronger role for policymakers in shaping markets
stimulating innovation, launching larger missions, building infrastructure,
and regulating businesses.
(Roberts and Geels 2019).

73. How economic policymaking may accelerate transitions towards sustainability by
overcoming ‘transition failures’, with reference to policy learning and experimentation;
Reflections > and a call for critical work
What economic actors (organizations; entrepreneurs; investors) as well as the public
sector can instigate a particular direction of change/transformation across multiple
sectors amidst political contestation, including facilitating phase-out of environmentally
unsustainable activities;
How to deal with social backlashes against sustainability transition strategies;
Considering how transitions towards sustainability can not only ensure
decarbonization – to avoid breaching planetary boundaries – but also compensate
those who stand to ‘‘lose’’ from energy transition will be crucial for identifying
politically feasible transition pathways or elaborate roadmaps;

74. Lecture 1 - Introduction: economic geography and its recent paradigms
Next week > 17-11: Global production networks, slow
innovation and geographies of circular economy and
EU Green Deal