Lagging regions between economic restructuring and addressing societal challenges

Abstract In addition to continuously improving and renewing their economic structures to remain competitive, regions are increasingly called upon to address major societal challenges. Although this duality of structural and transformative change is becoming more widely recognised in the recent geographical innovation literature, there is still a lack of perspectives on economically lagging regions. This article empirically examines the opportunities for and obstacles to the nature, extent and direction of innovation-induced change in lagging regions. The analyses are based on qualitative case studies conducted in ten lagging regions in Germany that have received federal funding to implement alliances, develop innovation and steer change. The results suggest that regional structural laggardness, which is primarily expressed in a lack of actors and network relationships, limited innovation capacities as well as fragmented socio-demographic and institutional settings, seems to be a major barrier to induce transformative change. Put differently, lagging regions, already struggling to innovate, appear to be even more challenged to meet the demands of comprehensive transformation processes. As this dual challenge of innovation and transformation could increase spatial disparities, it seems necessary to consider economic restructuring and transformative change of structurally lagging regions in a more integrated way and to adapt policy instruments accordingly.