Multiple paths of development: knowledge bases and institutional characteristics of the Swedish food sector

The aim of this paper is to explore the relation between the critical knowledge base of firms and how firms respond to incentives embedded in the institutional framework surrounding them. The analysis gives us a better understanding of the complex development of the food sector in Southern Sweden in the past decades. Theoretically, the paper combines concepts of path dependency and knowledge bases, and applies this framework to a set of development trajectories of firms in the Scanian food sector. Three development paths are identified—path extension, path renewal and new path creation. Findings illustrate that these are rooted in different knowledge base combinations of firms, which make them respond differently to similar place- and sector-specific institutional conditions.