Localised learning and path dependency

The induced innovation theory and the evolutionary theory led to the theories of localised learning. Localised technological change results from the interplay between factor substitution and learning processes (Antonelli 1998). Localised 

Dosi (1982) combines the concept of technical trajectories by Nelson and Winter (1982) with scientific paradigms as a model for path dependence of technical change. A trajectory is the direction towards which the problem solving activities moves which a paradigm defines as relevant. 

The firm-level effects of path dependency can be easily translated onto the country-level. Most firms are more embedded in a domestic network than in an intcjr-national network. Second, regional spillovers, technical information derived fi om other firms located in the same region, make it more profitable for firms to follow the technological trajectory of the other firms in the region (David et ial. 1998). As a result, nations can follow different national paths of technical change (Lundvall 1993). 

These regional spillover effect were already mentioned by Marshall (1920, pp. 222-231). They lead to agglomerations of specialised industries. 

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