Path Renewal in Old Industrial Regions: Possibilities and Limitations for Regional Innovation Policy.

This paper analyses the potential, barriers and limitations for regional innovation policy to facilitate industrial renewal in old industrial regions. It draws on a case analysis of the policy programme ‘Biorefinery of the Future’ geared to promote renewal of the forest industry in Northern Sweden. It is shown that infusion of radical emergent technology is necessary for new regional path development, but not sufficient. To avoid a singular focus on technology-push, policy should pay more attention to complementary experimentation processes in relation to demand-side characteristics, firm strategies and business models as well as regulatory aspects. Moreover, coordination between regional innovation policy and adjacent domains and levels of policy-making is needed as some of the most pressing obstacles for renewal are not specific to the region but instead to the industry at large.