Scientific Library on Regional Transformation

The lonely inventor or solitary eccentric genius—once romanticized figures, they are now a rare sight in today’s innovation landscape. Innovation now emerges within systems of actors, networks, and institutions that can be understood at regional, national, or sectoral levels. Researchers at Fraunhofer ISI, who study regional transformation amid structural change, analyze innovation systems through three key dimensions: the knowledge base of regional actors, their collaborations and connections both within and beyond the region, and the political and societal factors that facilitate or hinder innovati

Based on these insights, we develop recommendations to support the transformation of regional innovation systems, enabling the emergence of new development pathways.

The central question in regional transformation is: Where is a region heading? Regional economies often evolve along development paths shaped by specific industries, research areas, technologies, or prevailing narratives. Self-reinforcing dynamics mean that individuals, companies, and policymakers within a region tend to (often unconsciously) follow these established trajectories. At best, this leads to regional specialization and the formation of local industry clusters. At worst, past successes can become barriers to future progress.

When existing paths are pursued for too long despite no longer offering regional growth, as was the case in Germany’s Ruhr region during the 1960s and 1970s, the need to establish new development trajectories becomes especially urgent. In the context of regional path development, regions either build new economic focal points or transform existing ones. In academic terms, this process is referred to as regional diversification. A key question is the extent to which these new activities are connected to existing regional capabilities. Accordingly, regional diversification is divided into related and unrelated diversification.

Demographic change, digital transformation, climate change, and the energy transition are just a few of the major challenges of the 21st century—challenges that not only businesses and policymakers must address. Regions, too, are called upon to find local answers to global problems and to organize themselves accordingly.

• How do the numerous regions that are not the Silicon Valley, Munich, Berlin, or Leipzig find their place in the global knowledge economy?
• Which positions in global value chains best match their existing competencies?
• What new development paths can they pursue most effectively?
• What transformations in their regional innovation systems are required to make this possible?

These are the kinds of questions being explored, both scientifically and in practical collaboration with regional stakeholders from business, academia, and civil society, by researchers in the Regional Transformation and Innovation Policy Department.