High-tech development for Left Behind places? Lessons-learnt from the Ruhr Cybersecurity Ecosystem

Abstract

New attention given to “left behind” places, such as lagging old industrial or rural regions, in policies and regional research has triggered a debate on their development. Researchers have criticised conventional growth-oriented economic thinking and its narrow policy prescriptions as being inadequate to develop left behind places and have called for alternative development strategies. It is argued, that development strategies should shift to the foundational economy and community-based social innovation, rather than prioritising cutting-edge research and development, technological innovation and high-tech sectors. Furthermore, universities, including those in lagging regions, should become engaged institutions and shift their third mission towards the needs of local communities. In sum, specific place-based development policies are proposed that address well-being, quality of life, positive identification and belonging.

While sympathetic with the suggested shift towards alternative development approaches, this paper elaborates on the limitations associated with this shift if orthodoxly applied in strategies to develop lagging regions. We argue that it would be misleading if the emphasis on alternative development and well-being leads to the perception that high-tech promotion and related research are misplaced in lagging regions. By creating high-tech and high-growth companies, entrepreneurial ecosystems can drive the economic development of regions. Advocates of alternative development approaches tend not to deny the economic impact of vibrant ecosystems but question their promotability in lagging regions. Our paper builds on theory advances on the role of change agency in initiating new regional industry paths. It elaborates on the contribution of cutting-edge R&D in high-tech industries for developing lagging regions. Our cybersecurity case study from the Ruhr in Germany shows the impact of a random private donation for research in triggering economic development. Researchers became change agents and stimulated a dynamic high-tech entrepreneurial ecosystem. (The presentation will be held in German.)