Economic Ecosystems

In this paper we review the concept of ecosystems as applied to economic geography. We argue that taking the metaphor of the ecosystem more literally than has been done in the past may advance understanding of economic systems at the regional scale. We define an economic ecosystem as a dynamically stable network of interconnected firms and institutions within bounded geographical space. We propose that representing regional economic networks as ‘ecosystems' provides analytical structure and depth to theories of the sources of regional advantage, the role of entrepreneurs in regional development, and the determinants of resilience in regional economic systems. We frame regional economic change in terms of ecosystem dynamics, with reference to ecologically derived concepts of succession, speciation, diversity, resilience, and adaptation