Innovations in firms and cities drive regional economic growth evolution.
Evolutionary Economic Geography looks at how firms and cities change and grow over time. It focuses on how innovation drives this evolution, with both small and big changes playing a role. The theory explains why some areas develop faster than others and how different types of innovation impact growth. The research shows that the growth of regions is linked to the creation of new products and routines within firms and cities. By studying how firms enter, grow, exit, and move, we can understand why some places thrive while others struggle.