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Evolutionary Economic Geography (EEG) tries to understand how economic agglomerations or clusters emerge from the bottom-up. This branch of economics draws significantly from principles of complexity and emergence, seeing the rise of particular regions as path-dependent, and looking to understand the forces that drive change for firms - seen as the agents evolving within an economic environment.
Evolutionary Economic Geography is a branch of economics that tries to understand how the same kinds of processes observed in evolution can be applied to geographically situated economic clusters. It shares some similarities to Relational Geography in that it sees the specificity of the physical environment as something that arises due to networks of driving flows. Where it differs is partially in terms of its specific focus - that of economic actors situated in urban contexts (that is firms with particular expertise and economic output) - rather than the broader multiplicity of actors found within cities. Further, the field forefronts more of the dynamics of complexity than relational geography: attuning in particular to the Bottom-up Agents (in the form of firms), that make up these economic systems, as well the dynamics underlying their Adaptive Capacity to become more fit. Accordingly, the field employs what is known as "General Darwinism": using principles of variation, selection and retention (VSR) that we see in organic evolving systems, and applying these same principles to non-organic systems.
Examples of the kinds of geographic phenomena that these evolutionary geographers might consider of interest would be the rise of Silicon Valley as a Tech hub, Holland's Tulip growing fields, or Taiwan's Orchid growing sector (see video below). These kinds of regions of specialized intensifications are called "agglomerations", and are described as arising in ways that conceptually correspond with Emergence. Thus, these kinds of intensities of expertise were not necessarily pre-planned from the top-down, but instead arose due to processes that are more akin to the evolutionary dynamics we see in nature. Furthermore, the ways in which these dynamics unfold are tied to how Bottom-up Agents in complex systems are steered towards fitness. Here, individual firms are seen as "agents" in an economic system, all of which are competing to find niches for success. These firms are steered not only by the Feedback gathered from monitoring the success of their own actions, but also the signals gathered by attuning to the actions of their nearest competitors.
Spill-overs and Negentropy
These signals help steer individual firm success, due to the benefits of what are known as "spill-over" effects. Another way to think about this is that, left to the their own independent devices, each firm needs to navigate the economic landscape with maximum uncertainty about how best to proceed in order to "harness" the Driving Flows of monetary gain. By co-locating near similar agents, the amount of uncertainty to achieve this can be reduced (see Information). Uncertainty in this case, might pertain to industry "best practices" that are coming to the fore, personnel that are knowledgeable and available in the region to be hired, and synergetic support businesses present and able to carry out aspects of the delivery model. Thus, the backdrop of Silicon Valley provides expertise and support "in the air" to give businesses in the region a competitive edge over others located in more isolated regions.
Intensifying Flows & Feedback
Some of the dynamics pertaining to why a particular economic agglomeration emerges involve the kinds of network effects seen in conditions of growth and Preferential Attachment. As certain business sectors begin - potentially at random - to co-locate in a particular region, other support services become attracted to that area, which then attract further businesses, and so on. We see again the mechanism of Positive Feedback reinforcing particular patterns, which then take hold as Attractor States for agents in the system.
Fitness
We can therefore consider firms in a regions as competing Bottom-up Agents, each trying to tweak the Variables of their business models so as to outcompete their neighbors. Yet even though they are engaged in competition, they nonetheless have some reliance on their competitors: it is through their co-presence that many simultaneous business protocol Iterations can be tested in parallel, with the overall expertise of the co-located enterprises being enhanced. Accordingly, agglomerations of these co-located competing firms are more likely to increase their Fitness than firms operating at a distance.
Enslavement or "Lock-in"
It becomes very difficult to disrupt an agglomeration once it has emerged. Too many of the flows related to a particular sector become concentrated in this geographic regions, meaning that massive structural shifts are required to rearrange these flows. This is not to say that this can never occur. Detroit, for example, was for many years the power-house for automotive manufacturing. It was only with the advent of major underlying shifts of flows - tied to such aspects as wages, access to cheaper workers, and lowered shipping costs - that these flows gradually reconstituted themselves in new geographic locations off-shore. But these major shifts are rare, with regions of expertise reproducing themselves over time, even in the face of other underlying disruptions. Such systems can be described as being in Enslaved States, or what is called "lock-in" by Evolutionary Economic Geographers.
The video below outlines an example of an emergent agglomeration: that of Orchid growing in Taiwan.
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