Zukauskaite Et Al PDF
Zukauskaite Et Al PDF
Zukauskaite Et Al PDF
Centre for Innovation, Research and Competence in the Learning Economy (CIRCLE)
Lund University
P.O. Box 117, Slvegatan 16, S-221 00 Lund, SWEDEN
http://www.circle.lu.se/publications
WP 2016/1
Abstract
Over the last two decades, the notion of institutional thickness has become a key reference
for a large body of work that has sought to provide profound insights into the link between
institutions and regional development. However, only few attempts have been made to
reassess the concept, to improve its methodology and to reflect upon its empirical
application. The aim of this paper is to identify some crucial limitations of the theoretical and
empirical work on institutional thickness and to sketch out elements of a strategy that could
help to advance the debate on the notion. It is argued that much can by gained by (1)
employing a clear analytical distinction between the organizational and institutional
dimensions of thickness; (2) moving beyond overly static views on thickness; (3) developing
a multi-scalar approach to thickness; and (4) acknowledging that thickness can only be
assessed in relative terms.
Disclaimer: All the opinions expressed in this paper are the responsibility of the individual
author or authors and do not necessarily represent the views of other CIRCLE researchers.
Institutional Thickness Revisited
Elena Zukauskaite
CIRCLE, Lund University, P.O Box 117, SE-22100 Lund, Sweden.
Elena.Zukauskaite@circle.lu.se
Monica Plechero,
DEAMS, University of Trieste, Piazzale Europa 1 - 34127 Trieste.
CIRCLE, Lund University, P.O Box 117, SE-22100 Lund, Sweden.
Monica.Plechero@circle.lu.se
And
Michaela Trippl
CIRCLE, Lund University, P.O Box 117, SE-22100 Lund, Sweden.
Michaela.Trippl@circle.lu.se
1
Abstract
Over the last two decades, the notion of institutional thickness has become a key reference for
a large body of work that has sought to provide profound insights into the link between
institutions and regional development. However, only few attempts have been made to reassess
the concept, to improve its methodology and to reflect upon its empirical application. The aim of
this paper is to identify some crucial limitations of the theoretical and empirical work on
institutional thickness and to sketch out elements of a strategy that could help to advance the
debate on the notion. It is argued that much can by gained by (1) employing a clear analytical
distinction between the organizational and institutional dimensions of thickness; (2) moving
beyond overly static views on thickness; (3) developing a multi-scalar approach to thickness; and
2
1 Introduction
Explaining how institutions shape regional development has long been a recurring focus of
enquiry in economic geography and innovation studies. Scholarly work has highlighted that
condition, enable and constrain the economic vitality and innovation capacity of regions,
providing legal frameworks for actions, defining communication patterns and affecting learning
Many contributions dealing with the role of institutions in regional development refer to and
have been inspired by Amin and Thrifts (1994) work on institutional thickness. This concept
has become a key reference work of what has been called the institutional turn in economic
geography. Indeed, the notion of institutional thickness has been widely used, offering crucial
insights into a set of non-economic factors that underpin regional economic development.
Notwithstanding its enduring popularity, the concept of institutional thickness is not without its
shortcomings, and interestingly, apart from a few notable exceptions (see, for instance, MacLeod
2001; Coulson and Ferrario 2007), over the past twenty years surprisingly little has been done to
The aim of this paper is twofold: First, we intend to identify some crucial limitations of the
concept of institutional thickness and highlight a number of problems that have thus far remained
unresolved. Second, we seek to sketch elements of a strategy that could help advance the debate,
addressing some key conceptual and methodological issues. We contend that there are several
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key shortcomings that loom large in the debate on institutional thickness. Based on this critical
review, a number of suggestions for future work are offered. We see considerable value in (1)
We outline how these issues could be addressed in conceptual terms and highlight which
methodological improvements need to be made to gain new insights into the nexus between
The strategy sketched in this paper may not only contribute to a redefinition of the original
concept of institutional thickness. It could also enrich economic geography more broadly by
informing current attempts that aim to bring together institutional and evolutionary perspectives
to explain how institutions (and organizations) affect forms and directions of long-term regional
industrial change.
Amin and Thrifts (1994) work on institutional thickness is one of the most-cited contributions in
economic geography and regional studies that aim to treat institutions seriously. This section
offers a brief review and critical discussion of the original concept and of the theoretical and
empirical literature that has emerged since the notions introduction in the 1990s.
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2.1 Original concept and its theoretical development
The origin of the institutional thickness concept can be found in the seminal work of Amin and
corporation of economic life, fostered and facilitated by particular institutional and cultural
traditions (Amin and Thrift 1994, 15). According to the authors, it is associated with four
factors: a strong local institutional presence; high levels of interaction between local
being involved in a common enterprise. A strong local institutional presence refers to the
governance organizations, unions, associations, and business service organizations. The second
factor points to the importance of formal and informal knowledge exchange and cooperation
among those organizations. Those interactions are often embedded in place-specific rules, norms,
and conventions. A structure of domination is defined by the relative power and power base of
different organizations. It is strongly influenced by their (access to) resources. Finally, the fourth
factor is the outcome of the other three. Through strong presence, interactions, and a certain
type of structure of dominations, the actors become aware that they are involved in a common
enterprise; they have a common agenda which they develop and depend on.
Amin and Thrift (1994) have applied the concept to local and regional levels, such as the City of
London or Silicon Valley, to explain why some locations are more successful than others in an
increasingly globalized world. The authors relate thickness to legitimacy, trust, and stimulation
of entrepreneurship, and argue that it appears to have been central to the generation of success
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institutional thickness may hinder the successful development of regions. This insight relates to a
negative lock-in when previously successful institutions become outdated and hamper renewal
While many studies in economic geography have later been directed to investigate the
institutional aspects of economic development, the research following Amin and Thrifts work
has until now only led to a limited theoretical advancement of the original concept. Scholarly
work has often settled for a short mention of institutional thickness when discussing or analyzing
institutions in economic geography (Farole, Rodriguez-Pose, and Storper 2011; MacKinnon et al.
2009; Storper 1997; Beer and Lester 2015). Moreover, many of these studies have primarily
focused on successful and well-known regions in developed economies (particularly in the EU).
Gibbs et al. (2001), in analyzing the institutional capacity in a peripheral region, argue that the
literature on institutional thickness has until now mainly focused on the presence of institutions
while underestimating the efficiency of those institutions. Rodriguez-Pose (2013) suggests, too,
that because of the role that informal institutions might play in development and the complex
not only difficult but also insufficient. Other scholars, such as Faulconbridge (2007), in
analyzing the effect of institutional thickness on collective learning processes, also suggests
investigating the efficiency (or what the author calls strength) of institutional thickness (as
Although most of the studies on institutional thickness focus on the institutional conditions in
specific regions, some more-recent contributions have underlined that in a globalized world
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regional economic development may indeed be also influenced by factors external to the region
establishments located in the region, institutions at higher spatial scales, and so on) (Fuller 2005;
Gertler 2010; Fromhold-Eisebith 2002; Crescenzi, Rodrguez-Pose, and Storper 2012; Yeung
2009). The idea of a multi-scalar approach to institutional thickness (see also section 3) is
supported by other authors. Jones and Clark (2000) advocate a refinement of institutional
institutions (formal), as well as accounting for the role of individuals in changing institutions.
Their analysis reveals the complexity of institutional thickness where institutions at different
geographical levels contradict each other in their goals, while powerful actors in the region
operate within this complexity and lead the process of transforming consensus institutions into
concrete institutions. This suggests that the power of dominance also depends on the ability of
actors to introduce new institutions which are binding on others. Beer and Lester (2015) add
history of success in engaging with external political and administrative processes as one of the
indicators for institutional thickness. According to the authors, such interaction is needed for
regions to achieve higher growth rates since central governments often are important providers
MacLeod and his colleagues also criticize the original concept of institutional thickness for
neglecting institutions at other geographical scales and for excluding the role of the state in the
Goodwin 1999) and on the Regulation Approach (MacLeod 2001), they highlight the importance
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of regulative institutions and conscious decisions by the state in constructing and mediating
institutional thickness at the regional level. They also warn that public support organizations
promoting networking activities (which appear to be among the preferred units of analysis in
studies of institutional thickness) will have little effect on regional development if not combined
with renewed regulatory and industrial practices. While their work makes a valuable contribution
to the use of new institutionalism in economic geography, their aim is not to reassess the concept
of institutional thickness.
To summarize, over the past 20 years or so only few attempts have been made to re-assess and
elaborate on the concept of institutional thickness. In a next step, we offer a brief review of the
empirically oriented literature and of some methodological issues that have been raised in the
Very seldom are all four factors of institutional thickness (as suggested by Amin and Thrift
(1994)) explored in empirical applications of the concept. Among the few exceptions is the study
by Henry and Pinch (2001), in which the four factors of institutional thickness are used as an
Our review of the empirical literature suggests that many analyses of institutional thickness focus
on a rather narrow set of organizations, namely business support organizations and the roles and
activities performed by them. Bassett et al. (2002), for instance, investigate institutional
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thickness in Bristols media cluster through an analysis of two types of support for companies:
the festival and the development of formal, technical networks between local firms. Another
good example is the contribution of Keeble et al. (1999) who have examined the level of
to assess support provided by the science park infrastructure and local services.
Drawing on single case studies appears to be the dominant method used in empirical applications
of the concept. Studying single cases might provide valuable insights into the institutional
structures of particular places. However, such an approach does not allow for validating tools for
measuring institutional thickness that are more general in nature or applicable to different
contexts. When a comparative approach has been applied, the analysis has only focused on some
aspects of the institutional thickness of specific clusters and industries. Sydow and Staber (2002),
agents and dynamics in time and space of project networks at the regional scale. Faulconbridge
advertising and law clusters in London and New York. Tdtling et al. (2011), through a survey,
have analyzed the ICT clusters in two Austrian regions (Vienna and Salzburg) and the spatial
pattern of firms knowledge links. In a similar vein, Chaminade and Plechero (2015) have
empirically investigated the relation between regional institutional thickness and global
innovation networks in developed and developing regions with a strong specialization in ICT.
Whilst these studies have yielded valuable insights into some dimensions of institutional
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thickness, they offer little inspiration for outlining the contours of a more comprehensive
comparative approach that takes all aspects of the notion into account.
Some attempts to develop quantitative indicators (Coulson and Ferrario 2007; Ersoy 2011;
Escobal and Ponce 2011; Beer and Lester 2015) can also be found in the literature. However, so
far these attempts have mainly focused on measuring the presence of organizations in regions.
The indicators used are very loosely related to the concept of institutional thickness and the
efficiency dimension has only partly been addressed. A notable exception is the work by
Coulson and Ferrario (2007), who have developed measures of all the factors that together form
institutional thickness. However, their work also suffers from several shortcomings. Coulson and
Ferrario (2007) reduce institutions to organizations and they do not discuss explicitly the relation
between presence and efficiency. Furthermore, they do not suggest any indicators for classifying
Twenty years after the introduction of the notion in the literature, research on institutional
thickness still shows ambiguities and limitations in terms of both the theoretical development of
the concept and analytical operationalization. In this section, we identify some of the main issues
and outline elements of a strategy that could help to redefine the concept.
presence. Amin and Thrift (1994) as well as many other scholars tend to equate institutional
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presence with the existence of a variety of different organizations in the region. Indeed, scholarly
work on institutional thickness conflates organizations and institutions (Coulson and Ferrario
2007) and does not discuss whether there is any difference between the two terms.
There is still no consensus in economic geography about the relation between organizations and
institutions. This is particularly visible in the innovation systems literature, which considers
institutions as eminently important for the development of regions or nations. Inspired by new
institutional economics (North 1990), many authors define institutions as rules of the game
which organizations (players) have to follow (Edquist and Johnson 1997; Asheim and Gertler
2005; Edquist 2005; Johnson 2010; Lundvall 2010). However, most of the empirical
organizations (such as research bodies, governments, and venture capital organizations) rather
than more broadly on the institutional environment (the legal system, norms, and so on) (Farole,
Rodriguez-Pose, and Storper 2011). In other words, attention is given to the presence of various
Some attempts to relate the notions of organizations and institutions have been made in
innovation studies and the literature on the geography of innovation. Following organizational
theorists (Meyer and Rowan 1977; DiMaggio and Powell 1983), Hollingsworth (2000, 619)
suggests that institutional rules, norms and conventions unfold in tandem with organizational
structures and therefore such an interrelated perception of institutions and organizations could
be useful for an institutional analysis of innovation. This idea is also supported by Gertler and
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Wolfe (2002), who perceive organizations as a part of (nested in) institutions in the form of rules,
The notion of institutional thickness retains a similar conflation of organizations with institutions
as shown above. According to Jessop (2001), when different organizations interact they generate
a shared understanding, common agenda, and trust. Thus, in the analysis of institutional
thickness, organizations are mechanisms via which institutions (such as trust, positive attitudes to
learning, and knowledge exchange) are created and mediated (Raco 1999; Faulconbridge 2007).
A critical mass of actors is needed to both create and enact institutions (Zukauskaite 2013) since
too little organizational presence might hamper the successful development of regional
economies (Tdtling and Trippl 2005). Such a conflation, although it might be conceptually
explained, may also have some limitations. First, there is a risk that institutional thickness will
simply be equated with a large number of organizations, especially public and quasi-public
support organizations (Henry and Pinch 2001). Second, the fact that organizations might become
mechanisms for creating institutions does not mean that they by definition do that (Raco 1999).
Although organizations might be created relatively quickly and easily (with enough resources at
hand one can establish support organizations, research and education bodies, etc.), it might take a
much longer time to develop institutions since institutional change is often slow and incremental
(Mahoney and Thelen 2010). Third, institutional thickness might have dimensions other than
organizational thickness (MacLeod 2001). For example, normative institutions in the region
might support collective learning and knowledge exchange among actors without formal
associations or other support organizations promoting such activities. Such norms might emerge
through democratic values which are often enacted at local and regional levels (Amin and Thrift
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1995). There are thus some compelling reasons for analytically separating organizational and
institutional thickness.
Mapping institutions and organizations as separate entities would provide a more fine-grained
analysis of factors underpinning regional development since it would allow for a more precise
identification of the strengths and weaknesses of the specific context under analysis. Adopting
such a strategy might, for example, help to establish greater clarity and specification of the
factors hampering regional development: are they related to the lack of particular organizations
a distinction would also direct attention to the nature of the relation between institutional and
organizational thickness. For example, the establishment of new organizations that provide
support for networking activities in the region might be the result of specific institutions already
in place (openness for knowledge sharing, trust, and willingness to learn from others, and so on),
and it might foster the further development of such institutions, but it might instead have no
effect if actors are reluctant to get involved in such activities or, possibly, are not even aware of
the existence of such organizations (see, for instance, Martin, Moodysson, and Zukauskaite
2011). In other words: an increase of organizational thickness (at least in terms of efficiency)
might increase institutional thickness or not have any impact at all. The arguments raised above
could provoke a set of new questions that might be addressed in future research. When and how
(if at all) does organizational thickness contribute to the development of institutional thickness?
What are the mechanisms for creating institutional thickness in places that suffer from a lack of
well-functioning organizations?
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The possibility of differentiating between institutions and organizations is closely related to the
issue of finding indicators for measuring these two aspects with regard to presence and
efficiency. The differentiation is also crucial for assessing on what basis the region can be
concept is beyond the scope of this paper, though some suggestions can be made.
First, we argue for a broad understanding of organizations when discussing the notion of
organizational thickness. In contrast to many studies, which have mainly focused on business
and innovation support organizations, we see considerable value in taking account of the role
played by a larger variety of organizations. Indeed, actors other than support organizations might
be equally or even more important in affecting regional development (Henry and Pinch 2001). It
is therefore relevant to include firms and to take account of the structure of different industries
and the relation between large and small firms. Furthermore, due attention should also be given
diversity, the combination of large and small firms, and the presence of research and educational
bodies can provide some significant indications for the organizational efficiency of the region.
Regions with diversified industrial structures and hosting well-performing research and
education organizations are more likely to be innovative and show a strong performance of
economic development (Isaksen and Trippl 2014). In addition, the efficiency of the firms could
and, as suggested by Beer and Lester (2015), the level and type of education of employees. The
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used in university rankings, or in more qualitative ways, by investigating how these
organizations are perceived by other stakeholders in the region. The perception by other actors,
together with information about funds obtained for the development of the region, can help to
assess the efficiency of governmental and support organizations (Beer and Lester 2015).
We suggest defining institutions as rules of the games including formal and informal rules such
as regulations, laws, values, norms and attitudes (North 1990; Scott 2008) when discussing the
notion of institutional thickness. Some tools for assessing particular aspects of institutions
defined in such a way are already available. The Global Competitiveness Index and the
Worldwide Governance Indicators are instruments to measure and compare, for example, the
level of corruption, the quality of governance, attitudes toward collaboration, and knowledge
exchange. They might be complemented by other indicators which could be developed for a
concrete case region or for aspects and comparison not already covered by the available national
To sum up, we consider institutional thickness to be related to regulations, norms, values and
support and other organizations. The original concept of institutional thickness covers both
aspects, which are clearly distinguished from each other and referred to as organizational and
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3.2 Institutional and organizational thickness: statics or dynamics?
Many studies provide snapshots of organizational and/or institutional thickness. However, the
organizations, and the relations between different types of institutions and between different
types of organizations) of the region often change over time, making a static analysis ill-suited to
The question of how institutional thickness evolves is still poorly understood. Jones and Clark
(2000) suggest analyzing institutional thickness as a process rather than a stable result. However,
they do not provide any tools for investigating changes in the four constitutive elements of the
original notion of thickness. Instead of conceptualizing the dynamics and evolution of thickness,
the concept is applied as a meta-term for institutional analysis. Jones and Clark (2000) focus on
consensus and concrete institutions and seek to explain institutional change by studying how
Analyzing changes of institutional thickness over time is a challenging task. One difficulty
concerns the direction of causality between thickness and the phenomenon under study (Coulson
and Ferrario 2007). Arguably, the problem of causality is not confined to the debate on
geography and other disciplines. Maskell and Malmberg (2007) point out that institutions are
often measured by their outcomes (that is, activities) which lead to circular arguments: the
territories that perform well are equipped with a well-functioning institutional structure, while a
well-functioning institutional structure is found in the territories that perform well. Farole,
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Rodriguez-Pose, and Storper (2011, 73) claim that the relation between institutions and
Institutions and economic growth co-evolve with changes in capacity building and
It is also important to bear in mind that institutions do not exist outside a specific context of
actions (Jessop 2001). Actions are shaped by specific institutional structures, while at the same
time actors have some freedom of choice and, therefore, can reflect upon and change institutions
(see also Hollingsworth 2000; Hodgson 2003). However, institutional change is slow and
incremental (Mahoney and Thelen 2010). Thus, in the short term, activities are most likely to be
an outcome of the institutional structures, while in the long term the impact of activities on
institutions can be identified. For example, Phillips et al. (2015) argue that initially organizations
changes in the institutions themselves. Furthermore, although the relation between institutions
and activities is endogenous, it is still worth analyzing how, when, and which institutions
influence different social phenomena in order to gain a better understanding of their development
(Farole, Rodriguez-Pose, and Storper 2011). Finally, if changes in institutions can be clearly
identified (for example, a change in a particular regulation), a time lag between the change in
address the issue of endogeneity (Srholec 2010; Goedhuys and Srholec 2015).
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Towards a dynamic view on institutional and organizational thickness
In order to analyze how institutional and organizational thickness evolves over time, we need to
gain a better understanding of the processes and mechanisms of institutional and organizational
change. Gertler (2010) suggests adapting the theoretical advancement made in historical
institutionalism, or, more concretely, the work done by Thelen and her colleagues, to the regional
emerge or decline overnight, but rather develop in a subtle, gradual process (Mahoney and
Thelen 2010). At the same time, there are strong reasons to assume that the pace and direction of
institutional change may differ markedly across regions. In places situated in developing
economies, institutional change could be expected to take place at a faster rate and being of a
more unpredictable nature than in areas located in developed countries (Wei, Li, and Wang
The literature offers various typologies to categorize different forms of institutional change. Hall
and Thelen (2009) argue that institutional change might happen through reform (when
government itself directs and endorses change), defection (when key actors withdraw from
organizations or no longer follow their rules), and reinterpretation (when actors gradually change
their interpretation of the rules without defecting or dismantling the institution itself). However,
this typology does not cover situations where new rules are created in combination with old ones
or where old rules are totally abolished. More recently, Mahoney and Thelen (2010, 15) have
introduced four modes of institutional change: displacement (the removal of existing rules and
the introduction of new ones); layering (the introduction of new rules on the top or alongside of
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existing ones); drift (the changed impact of existing rules due to shifts in the environment); and
conversion (the changed enactment of existing rules due to their strategic deployment). Campbell
(2006, 506) adds the notions of bricolage (new combinations of existing institutions) and
order to fit the already-existing framework). These different typologies point to a variety of ways
by which institutional change might happen and could offer novel insights into the evolution of
institutional thickness and the forms and directions it might take. It would be intriguing to
explore in future studies if particular types of institutional change are more likely to be observed
in some regions than in others. One could expect that layering and translation are common forms
of change in institutionally thin regions, while displacement and conversion are more likely to
take place in regions with thick but hampering institutions. Future studies could also benefit from
incorporating insights from the institutional entrepreneurship literature (Battilana, Leca, and
Boxenbaum 2009) to explore under which conditions and in what ways key individuals and
organizations (or groups of them) influence how institutional thickness changes over time.
analyzing changes in organizational thickness, offering explanations of how new firms and
industries emerge in regions. For example, the notion of regional branching sheds light on how
old industries diversify into new but related ones (Boschma and Frenken 2011). Other scholars
(Martin and Sunley 2006; Trippl and Otto 2009; Isaksen and Trippl 2014; Dawley et al. 2015)
have distinguished between a broader set of types of regional industrial change, ranging from
path extension and upgrading, to path transplantation, and the rise of entirely new growth paths.
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Future studies could investigate how these different types of path development are related to and
As noted above, a common criticism levied against the original concept of institutional thickness
is the neglect of a multi-scalar perspective (Macleod and Goodwin 1999; MacLeod 2001; Jones
and Clark 2000). The importance of adopting a multi-scalar approach in institutional analyses of
regional development has been acknowledged by many scholars (see also section 2). Already
Martin (1994) has pointed out that regions are places where different institutionslocal,
The argument that it is eminently important to take the interrelatedness between institutions into
explicit account has become prominent in recent years. Advocates of the geography of
production approach have highlighted the complex institutional structures and power relations
among firms and other organizations that exist at different geographical levels and how they
shape spatial and social dynamics of development (Dicken et al. 2001; Henderson et al. 2002;
Coe et al. 2004). Interaction among actors is one of the key factors influencing institutional
thickness. Several studies on knowledge, production, and innovation networks suggest that such
linkages often transcend regional (and national) borders. Consequently, an exclusive focus on
local and regional networks does not suffice to explain the complex geography of interaction
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Gertler (2010) stresses the importance of institutions at local, national and global levels for
understanding regional economic change. Also, Asheim et al. (2011), in their analysis of regional
innovation systems, highlight the embeddedness of regions in national and global settings. Farole
at al. (2011) emphasize that a balance between society (formal) institutions (mainly found at the
national level) and community (informal) institutions (mainly found at the local and regional
To fully account for organizational and institutional thickness in the region, national and global
factors and influences must therefore be taken into account. Henry and Pinch (2001) underline
that the growth of Motorsport Valley benefits from previous state investments in the aircraft
industry (national-level policy decisions). According to Macleod and Goodwin (1999, 514),
national-level policy that influences the operation of those trying to construct an appropriate
Eventually, taking other geographical scales into account becomes especially relevant in
comparative analyses. For example, because of different national policies, the regions in
different countries are subject to different levels of decentralization (Macleod and Goodwin
1999) which in turn shapes the possibilities for regional policy makers to influence regional
development strategies, support innovation activities, and align diverse interests towards a
common agenda for the region (Cooke 2001; Dawley 2014; Dawley et al. 2015; Isaksen and
Trippl Forthcoming).
1
As mentioned earlier, MacLeod and his colleagues have made some efforts to introduce a multi-scalar perspective
into the analysis of institutional thickness. However, similarly to Jones and Clarks (2000) study, rather than
conceptually integrating different concepts, the authors discuss alternative frameworks (Regulation Approach, neo-
Gramscian state theory) as a response to the shortcomings of the institutional thickness framework.
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Towards a multi-scalar approach to institutional and organizational thickness
requires a revision of notion in theoretical and analytical terms. Since regional development
how those institutions are related to each other. According to Zukauskaite (2015) institutions can
institutions have different functions and incentives. Regulatory frameworks set rules and monitor
and sanction activities. Norms and values introduce prescriptive, evaluative, and obligatory
dimensions into social life. They prescribe how things should be done and might be applicable to
all members or just specific individuals of a certain collectivity (society, community, industry,
and so on) (Scott 2008). While performing these functions, institutions create different
incentives. For example, intellectual property rights create an incentive to invest in knowledge
creation and innovation (Edquist and Johnson 1997). Institutions are contradicting when they
provide different incentives. They are reinforcing when they provide similar incentives via
similar functions. They are complementary when they create similar incentives via different
functions. Analyzing the relation between different institutions would provide a better overview
of the institutional presence in the region, and would help to identify at which level supporting
Firms and other organizations operating at levels other than the local and regional ones (MNCs,
national and international funding and innovation agencies, industry organizations, and so on)
also have an impact on the development of organizational thickness and on the activities of the
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actors in the region. Paying attention to the importance of non-local actors and trans-local
networks for organizational thickness is particularly relevant when investigating regions which
base their development more on exogenous sources such as peripheral areas in developed
countries (Dawley 2014; Dawley et al. 2015; Isaksen and Trippl Forthcoming) and regions in
emerging economies (Yeung 2009; Fu, Pietrobelli, and Soete 2011). The networks of actors
located in these areas often cross regional and national boundaries to take advantage of well-
could provide valuable insights into the multi-scalar dimension of organizational thickness.
Arguably, the empirical execution of a study in which several geographical scales are taken into
account might become very complex, particularly when investigating the institutional dimension
of thickness. However, it should also be noted that not all institutions are equally important for
regional development and innovation (Macleod and Goodwin 1999). Thus, identifying the most
vital ones for consideration in empirical analyses might be a feasible strategy. For example,
when analyzing the impact of thickness on innovation activities, relevant institutions at the
national level could be funding schemes for innovation, tax policies related to innovation (such
studies might restrict themselves to taking only the most important organizations at the national
or international level into account (such as powerful governmental agencies responsible for
innovation or highly ranked research and education organizations with connections to regional
actors). The decision about what to include or exclude from the analysis will depend on the
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3.4 Institutional and organizational thickness or thinness?
In the analysis of organizational and institutional thickness, one of the key issues to address is
how to distinguish between thick and thin structures. This is a challenging endeavor. Many of the
intangible elements that compose the institutional and organizational thickness such as the
regional structure of domination and/or patterns of coalition, and the mutual awareness of being
(Rodrguez-Pose 2013; Chaminade and Plechero 2015). Moreover, it remains unclear how much
variety in organizational and institutional presence, interactions, and commonness in the agenda
there has to be for the region to qualify as thick. What is the relation between the presence and
efficiency of organizations and institutions? Although, as mentioned above, there have been
several attempts to develop indicators for efficiency (Coulson and Ferrario 2007; Beer and Lester
2015), the relation between presence and efficiency and the basis for calling a region thick
remains vague.
There have been attempts in the regional innovation systems literature to develop indicators for
ideal-type cases of organizationally thick or thin regions. Isaksen and Trippl (2014), for instance,
differentiate between thick and diversified, thick and specialized, and thin regions. Thick and
diversified regions host a large number of different industries as well as a variety of knowledge
and support organizations and they often benefit from intensive local and non-local networking.
Organizationally thick and specialized regions are characterized by the presence of one or a few
industries only, a highly specialized organizational support structure and a lower degree of non-
local networking activities. Organizationally thin regions suffer from weakly developed cluster
24
structures and are often poorly endowed with research, education and business support
organizations. This typology provides some useful indicators for discussing organizational
thickness, not only in terms of presence but also in terms of efficiency. It is applicable when
analyzing real-life examples which closely mirror the ideal cases described above.
Discussing organizational and institutional thickness in absolute terms is rather tricky. Is there
any minimum number of firms and support organizations which must be located in the region for
a place to qualify as thick? How much trust or how many interactions must there be? How well-
developed must the intellectual property rights and other laws and regulations be? The fact that
thickness may be time- and space-contingent (Jessop 2001) suggests that thickness can be best
determined in relative terms using comparative studies that analyze several regions at the same
time or the same location at different points in time. Thus, one region can be thicker or thinner in
relation to other regions or it might have become thicker and thinner compared to its own
previous states of development. This calls for a need to employ more comparative and
When analyzing thickness, it is important to deal with the question thick for what?. Amin and
Thrift (1994) discuss thickness in relation to general economic development. However, in further
applications, thickness is discussed with regard to a concrete industry in the region (for example,
motor industry, watch industry, or ICT industry), to collective learning activities (Glasmeier
1994; Henry and Pinch 2001; Faulconbridge 2007), or to innovation or global innovation
networks (Tdtling, Lengauer, and Hglinger 2011; Chaminade and Plechero 2015). These are
of course empirical decisions that depend on concrete research questions. However, making
25
these decisions explicit in the analytical framework might help to avoid ambiguity regarding, for
example, different positive or negative effects of thickness in relation to different phenomena but
also in relation to the specific organizational and institutional settings of a region. Opposite to
relatively thick institutional and organizational structures supporting regional development and
innovation is either a relatively thin infrastructure (lack of organizations and institutions, lack of
organizations and institutions which hamper regional development and innovation (imbalanced
power of dominance, joint vision opposing any renewal efforts, closed networks (old boys
networks, inward looking networks), and so on). Organizationally thin peripheral regions are
typical examples of the former, while locked-in old industrial regions are classical examples of
the latter, where existing institutions and organizations hamper possibilities for economic
institutional thickness do not bring per se advantages or disadvantages for regional development.
Indeed, thickness has to be related to the concrete phenomenon on which it might have either a
positive or a negative impact. Future studies could address these issues more explicitly to
enhance ones understanding of which organizations and institutions support and which ones
hinder development and how such processes differ across regions with thick and thin structures.
The arguments raised in the previous subsections can essentially enrich the discussion about the
four constitutive elements of the original concept of institutional thickness (Table 1). What
26
Strong institutional and organizational presence. Distinguishing between organizations and
institutions, as well as considering not only the mere presence but also the efficiency of
organizations and institutions, would provide a more differentiated picture of the strengths and
analyzing how organizations and institutions at different spatial scales evolve over time and to
what extent and in which ways they adapt to industrial and technological change could lead to a
High levels of interaction. Regional development is not only shaped by interactions among local
actors, but also between local actors and non-local actors. Consequently, analyses of the
organizational network for the specific case under consideration should include not only regional
but also national and global actors and the evolution/co-evolution of those interactions over time.
Structure of domination. Power lies within both institutions and organizations. Valuable insights
might be gained by examining at which scale important institutions are introduced and enacted,
which organizations at which geographical level have most power to influence regional
development, and to what extent, how and why power balance is changing over time.
Common agenda. While organizations play a vital role in setting the common agenda,
institutions establish the conditions that support (or not) the agenda. Applying a dynamic and/or
multi-scalar approach would allow to study how the common agenda evolves over time and to
27
Assessing the four constitutive elements of thickness in absolute terms is a difficult endeavor. As
mentioned above, a comparative approach may yield valuable insights. A careful analysis and
comparison of each of the four factors might have the potential to uncover relative strengths and
weaknesses of the regions under investigation. For example, one region could be thicker in terms
of organizational and institutional presence and levels of interactions, while another region could
have a more balanced structure of domination and a higher degree of commonness in its agenda.
28
Table 1: Strategies for redefining the four factors of thickness
29
4 Conclusions
Over the past 20 years, the notion of institutional thickness has been widely invoked by scholars
working in the field of economic geography, innovation studies, and related disciplines. The
concept directs attention to a set of place-specific factors (that is, institutional presence;
awareness of being involved in a common enterprise) and highlights how specific combinations
Although the literature on institutional thickness has to be acknowledged for sharpening our
view of how institutions and organizations promote or hinder regional development, there are
also limitations and criticisms that have to be leveled against it. Based on a literature review of
conceptual and empirical work, as well as a systematic account of major shortcomings and
unresolved problems, several elements of a strategy that could advance the debate on
thickness. Such a distinction lays the foundation for a more fine-grained analysis of the strengths
and weaknesses of the context under consideration and provokes some fundamental questions
about the complex relationship between the organizational and institutional dimensions of
thickness. Second, it was claimed that much could be gained by developing a dynamic
perspective, providing insights into how organizational and institutional thickness evolve over
time and adapt to changing context conditions and circumstances. Third, we emphasized the
need for a multi-scalar approach that puts due emphasis on how regional development
30
trajectories are shaped by the interplay of organizations and institutions at various geographical
levels, from the local/regional, to the national, to the global. Fourth, we advanced the idea that
the degree of organizational and institutional thickness should not be assessed in absolute but in
relative terms, calling for more longitudinal and comparative studies in the future.
Arguably, it was far beyond the scope of this paper to offer a comprehensive re-
agenda. Instead, we have highlighted some promising directions that future research may take
and we have discussed some conceptual and methodological challenges that are associated with
such an endeavor. The strategies and ideas sketched in this paper may not only contribute to a
redefinition of the original concept and its four constitutive elements. They could also enrich
economic geography more broadly by informing attempts that are currently underway to revive
and strengthen institutional perspectives within the discipline (see, for instance, Gertler 2010;
Rodrguez-Pose 2013). Furthermore, they could essentially inform the recent debate on forms
and mechanisms of regional industrial change, which has thus far underappreciated the role of
institutional (and organizational) thickness could help foreground this role, providing additional
levels of explanation of regional industrial change than that offered by evolutionary economic
geography.
31
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