Imaginaries, directionalities, agency and new path creation

Within the field of EEG, economic geographers aim at explaining “how regional industrial structures change through path creation, diversification, importation and renewal processes” (ebd.: p. 1). The EEG approach draws on insights from evolutionary economy, innovation economy and classical economic geography (Henning 2019, p. 603). In contrast to other approaches in economic geography, EEG takes a process perspective on regional economic development (Storper 2010) and includes evolutionary concepts (Nelson and Winter 2002). Accordingly, besides a basic analysis of the uneven distribution of economic activities in space, EEG focuses on historical aspects causing this distribution. In this sense, time and space are intrinsically connected in this approach (Frenken and Boschma 2007). As Dosi (1997, p. 1531) puts it: “the explanation to why something exists intimately rests on how it became what it is”. As indicated by this quote, a core concept within EEG is path dependence. In this context, path dependence means “that the development trajectories of technologies, firms, industries, places and regions are conditioned (primarily in a constraining sense) by the historical processes that created them” (Steen 2016: 1605). This explanation is closely related to the understanding of system selectivity (Miörner 2020).

In the early days of EEG, Boschma and Frenken (2006) suggested that new industries emerged in so-called windows of locational opportunity. This understanding implies that the whereabouts of new industrial development paths are relatively open as long as a set of generic conditions are fulfilled. The actual creation of a new path is however attributed to historical accidents. Martin and Sunley (2010, p. 20) argue differently by pointing out that

“place-specific factors and conditions (…) are not simply ‘accidental’ or random but are often the product of and reflect the economic, social, cultural, and institutional conditions inherited from the previous industrial and technological histories of a locality”.

The author shares the resulting assessment that new industrial paths draw on assets of previous or present industrial paths and are thus context-specific. MacKinnon (2012) points out that new paths can also form gradually through incremental changes and adaptation processes. Similarly, Isaksen (2015) highlights that most innovations—the basis of new industrial development paths—are incrementally developed within existing paths supporting continuous renewal and reorientation. Frenken and Boschma (2007) refer to this process as evolutionary branching, where former growth paths provide relevant input for new paths.

Garud and Karnøe (2001) shifted the debate towards agency, arguing that knowledgeable stakeholders and collective agency can change existing routines and trigger new social practices and technologies, thus allowing them to lever system selectivity. Garud and Gehman (2012) highlight that strategic agency—like expectations (van Lente 2012)—is simultaneously oriented towards the past and the future, making context and changes in context decisive.

Highlighting the significance of context, Melosi (2017) discusses the connection between path dependence, urban history and evolutionary economics, pointing out that path dependence theory focused his attention

“on the means by which choices are made by decision makers, the connection of those choices to future options and sequences of events, and to outcomes. (…) Many decisions are made without the ability to predict outcomes or to appreciate potential alternatives. Context is extremely important.” (ebd.: p. 171).

Grillitsch and Sotarauta (2019) further note that structural preconditions only partially explain the extent to which regions grow. Highlighting the importance of local agency, they argue that the two theoretical traditions in economic geography—evolutionary and institutional theory—provide little insight into micro-level processes and explanations regarding the emergence of new growth paths. They also have a blind spot concerning “the role of agency and its relation to structure” (ebd.: p. 2).

Further research on path renewal and change in recent years has led to a shift in perspective towards a more holistic path-as-process approach, including forces of both continuity and change (Martin 2010). That said, path creation is not limited to intentional action but “in most instances path creation will inevitably involve a complex admixture of deliberate agency and accidental and unintended emergence” (Martin and Sunley 2010, p. 79). Grillitsch et al. (2021: 306) perceptibly note the importance to distinguish between the impacts of (1) extra-regional changes in the course of time, (2) regional structural preconditions and (3) the (un)intended results of human agency in order to “understand the extent to which, and how regional stakeholders potentially contribute to shaping development trajectories” (ebd.: p. 306). This thinking emphasizes the importance of micro-level stakeholders for understanding path emergence from the bottom up.

The increasing focus on the role of agency in new path creation in EEG has led to the development of several conceptualizations of agency in recent years (Miörner 2020, p. 2) . Amongst others, Grillitsch and Sotarauta (2019) define three types of change agency: innovative Schumpeterian entrepreneurship, institutional entrepreneurship and place-based leadership. The latter “captures actions that aim at transforming particular places by pooling competencies, powers and resources to benefit both agents’ individual objectives and a region more broadly” (ebd.: p. 5). With regard to change agency, another useful concept is dedicated to exploring different promoter types in transformation processes, including professional, power, process and relationship promoters (Kristof 2010).

Altogether, new path creation can best be explained by taking a holistic approach that does justice to the structure-agency dynamics at work, in line with what Miörner (2020, p. 3) calls for: the investigation of “historically developed regional context conditions, and the role they play in shaping the scope and nature of agency”. This dynamic perspective is inspired by the structure-agency debate, and especially by the strategic-relational approach formulated by Jessop (2001). He calls for a relational approach “to examine structure in relation to action and action in relation to structure, rather than bracketing one of them” (ebd.: p. 1223). Grillitsch and Sotarauta (2019, p. 10) refer to the connection between agency and structure via time as opportunity space, arguing that “not only history but also perceived futures influence agentic processes in the present and thus shape regional development paths” (ebd.: p. 1). Miörner (2020) takes up this point, arguing that stakeholders’ perception and interpretation of structures gives meaning to them and influences stakeholders’ perceived opportunity space.

This consideration is also reflected in the so-called Thomas theorem (Merton 1995; Thomas & Thomas 1928). In short, it reads as follows: “if men define situations as real, they are real in their consequences” (Thomas & Thomas 1928: 572). Accordingly, the interpretation of a situation, on the basis of which people act, is decisive, as the consequences of this action are real, regardless of how irrational, subjective or erroneous this interpretation turns out to be.

The significance of how a situation is interpreted is reflected in the behaviour of those concerned (agency). They may accept or reject measures, actively or passively confront structural change, become creative or persist in old patterns. Regarding the interpretation of a situation, the past is the major point of reference. Therefore, path dependences are inherent and reproduced. For instance, the socio-historical or economic imprint continues to have an effect on fundamental perceptions, conventions, mental representations, local identities and expectations regarding the future, thus imaginaries. The result is that this reference to the past unfolds its formative force by influencing—as a mortgage of the past—potential future paths or rather opportunity spaces.

However, the formation of directionalities is also impacted by future references. Referring to findings from the sociology of expectations (van Lente 2012; Borup et al. 2006), Steen (2016: 1607) highlights the temporal aspects of expectations and agency:

“seeing agency as simultaneously past- and future-oriented helps disentangle the micro-level processes underlying innovation and change, which are core to path creation and of relevance to path evolution more generally”

In the author’s understanding, expectations are at the interface of the past, present and future. While clearly pointing to future developments, they can be inspired by past circumstances (history) as well as anticipated current and future developments. Steen (2016: 1610) argues that expectations have very tangible effects on decision-making and company strategies. They are thus an important “generative mechanism in contributing to resource mobilization, experimentation, knowledge generation etc. linked to new industrial development paths” (ebd.: p. 1610).

As outlined in the introduction, local imaginaries and directionalities are essential elements of system selectivity (Miörner 2020). The first element, regional imaginaries, comprises the “fundamental perceptions, conventions, mental representations and world views” (ebd.: p. 4). They count not only within regional industrial paths but also at a fundamental system level. Those views or rather labels often describe the most basic and defining feature of a system’s economic structure. They include its main industry, and describe local stakeholders’ collective “perception of the region in which they are embedded, effectively shaping the point of departure in terms of their expectations about the future” (ebd.: p. 4). In connection with regional imaginaries, Miörner refers to Paasi (1991), the cultural geographer who introduced the concept of “regional identity” in his theory of the institutionalisation of regions (Paasi 1986, 2010). In the present paper, regional identity is conceived as an essential variable of system selectivity and assigned to the umbrella term of imaginaries. As Raagmaa (2002: 55) notes: “regional identity correlates with people’s volition in achieving common goals, raises their personal activity and influences due to that regional development”. This description perfectly captures the system-configuring features of regional identity or rather imaginaries. With reference to recent research on local identity (Kempa et al. 2020; Kempa & Krätzig 2020; Hilber and Datko 2012), the author presumes that this variable is also applicable to the urban level. Nevertheless, the distinction between local identity and local image seems important. The former is both much more profound and differentiated and strives for authenticity. By contrast, local image describes the figurehead with which a city wants to advertise itself to the outside world (Hilber and Datko 2012).

Local directionalities form the second element influencing system selectivity. In contrast to local imaginaries, directionalities include a normative dimension. In this sense, directionalities are future-oriented and linked to new path creation, and especially “to the renewal of traditional industries based on sustainable innovations” (Miörner 2020, p. 5). A term used synonymously in this article is vision. However, it is impossible to draw a clear distinction between imaginaries and directionalities, as the latter are similarly fed by what happened in the past (see also van Lente 2012). Furthermore, directionalities are discussed in connection with the public institutions often responsible for their elaboration and dissemination (Miörner 2020, p. 5). With regard to a city, van Boom and Mommaas (2009: 49) describe the balancing act required of a vision as a “desire to give the city both a focus and the quality of an open evolutionary system geared to permanent change”.

Both elements—imaginaries and directionalities—are nurtured by and come to life through narratives. Recent publications, such as those of Roos and Reccius (2021) and Shiller (2020), indicate that it might be worth paying greater attention to the link between narratives and economic development. In political science, narratives are understood as meaningful stories that influence the way a situation is perceived and interpreted (Turowski & Mikfeld 2013). Narratives also convey emotions and values and can provide a means of social orientation. Furthermore, they form an important bridge between the communications of political and other elites and the everyday understanding of the general population (ebd.: p. 13–14). Referring to the latter aspect, narratives can help keep stakeholder groups together and form local identities. In this spirit, the author assumes that narratives can support the creation and continuance of alliances and cooperation projects.

Narratives also play an important role in the fields of urban development and planning. As part of scripts, they inject convincing stories into a world of sober planning that cannot do without a confidence-building vision (Buchenau and Gurr 2021). In line with this assessment, amongst others the following two success indicators for transformative narratives were identified: First, connectivity, an indicator relating to common ideas, concepts, categorizations and culturally shaped attitudes of dominant discourses and target groups. Second, historical embeddedness, an indicator referring to phrases, expressions and words showing the connection to historical events and situational circumstances (Espinosa et al. 2017: 29, 31).

In a case study comparing twelve European textile cities, van Boom and Mommaas (2009) investigate how development strategies are rooted in the local history of a city and what factors for success and failure can be determined. One of the five success factors for comeback strategies refers to the “role of leading urban attractors and the associated urban narrative” (ebd.: p. 53–54):

“[Cities] profile themselves with distinctive narratives. (…) ideally the narrative gives direction to development opportunities, seeking parties in the city and contributing to their joint mobilization. Solid narratives are stories which are supported by a range of urban parties, the products of studying individual development opportunities and of connecting the past with a search for potential futures. (…) cities should invest more forcefully in self-reflection and learning capacity”

The theoretical explanations given so far speak for the significance for new path creation of interpreting urban economic history. The discussion of the theoretical background supports two assumptions. First, new urban economic development paths do not arise by chance but feed on the local context, including structural and agency-related features as well as external changes. In this respect, the dynamic interaction of structure and agency is important for new path creation. Second, local imaginaries and directionalities reflect the urban economic heritage. Affecting local agency, they play a key role in reconfiguring existing structures in order to promote or inhibit new path creation.

Furthermore, the theoretical discussion provides some indications regarding the impact mechanisms of imaginaries and directionalities on agency and thus new path creation. First, local imaginaries and directionalities are nurtured by and come to life through narratives. Second, they help communicate ideas between different stakeholders, potentially supporting the creation and continuance of alliances and cooperation projects (impact mechanism: communication and cooperation). Third, they contribute to identity-building, thus creating motivation to impact on local settings, i.e. to drive system reconfiguration (impact mechanism: motivation). Fourth, directionalities feed on the past, present and future. A strong reference to the past can act like a mortgage on possible development paths, limiting the perceived opportunity space. Thus, the more future-oriented directionalities are, the greater the perceived opportunity space and thus the opportunity for creating a new path.

Furthermore, the theoretical discussion supports the idea that imaginaries and directionalities can be used purposefully to shape place-specific economic development patterns. The Thomas theorem describes the mechanism of how an interpretation of a situation leads to agency, regardless of actual facts (Thomas & Thomas 1928), i.e. both imaginaries and directionalities can be powerful tools to trigger agency and system reconfiguration. Directionalities in particular are already used in urban planning to build confidence in intended changes (Buchenau and Gurr 2021). Van Boom and Mommaas (2009) find that urban narratives, as vehicles of imaginaries and directionalities, are important success factors for comeback strategies, i.e. new path creation. Espinosa et al. (2017) describe how rooting transformational narratives in the local economic history instead of creating them in a vacuum without historical references makes them more fruitful (connectivity and historical embeddedness).

Therefore, the author suggests that both the reinterpretation of hindering imaginaries and the formulation of new directionalities can be used to level out system selectivity and trigger change agency.

The empirical case study seeks answers to the research questions by analysing the development of the textile and clothing industry in Mönchengladbach, a city in the German Federal State of North Rhine-Westphalia (NRW) with approximately 260,000 inhabitants (IT.NRW 2021). For more than five centuries, its economy was closely linked to the development of the textile and clothing industry (Quack 1963; Rouette 1996). The textile industry was the origin and motor of the city’s industrialisation, spawning the development of other industrial and economic sectors (Ostendorf 2011), in particular the manufacture of textile machinery. The textile and clothing industry reached its peak in the years 1900 to 1910. At that time, Mönchengladbach was even described as the “Rhenish Manchester” (Hamm and Wienert 1990, p. 239). It was a veritable textile stronghold, marking the peak of the city’s economic prosperity (Quack 1963).

A qualitative case study approach (Yin 2018) was chosen to examine the development of the textile and clothing industry in Mönchengladbach both in depth and in a historically informed manner. The process-oriented approach allowed us to capture the context relevant to new path creation. This also supported a better understanding of the interdependences between historic events, imaginaries, directionalities, agency and structures (MacKinnon et al. 2019; Jolly et al. 2020).

The selection of the city was based on the close interconnection between the city’s development and one dominant economic sector: the textile and clothing industry² with its great importance for the structural change processes. This facilitates a comparatively clear understanding and investigation of the aforementioned local imaginaries and directionalities and their impact on the city’s economic development. In the analysis, the city’s economic development and especially that of the textile and clothing industry is documented based on key events. The latter can be understood as expressions or manifestations of agency which were always the consequence or cause of specific imaginaries or directionalities.

The qualitative case study is based on two pillars. First, a document-based analysis provided important information and thus helped contextualize and verify findings. It was also used to create an initial overview of key events, dominant imaginaries and directionalities at the respective time. The analysis led to the three phases explained in the empirical part. The document-based analysis also served to identify relevant stakeholders to be approached for interviews. The secondary material included reports, strategic documents, newspaper articles, digital material such as websites and press releases, and secondary statistical data referring to the development of the textile and clothing industry in Mönchengladbach and the city’s economic development since the 1960s.³ Second, seven guideline-based interviews were conducted with local stakeholders, as described in Table 1.

Interviewees were selected according to the following three criteria. First, to capture key events and related imaginaries and directionalities as comprehensively as possible, at least one interviewee was chosen from each major city stakeholder group (Seebacher et al. 2018: 156; Reuter 2020). Second, interviewees should have at least double-digit years of experience in the textile industry and/or the economic development of Mönchengladbach. The idea behind this was to ensure that interviewees had relevant knowledge of the development of the textile and clothing industry in Mönchengladbach, of the city’s economic development as a whole, and of imaginaries and directionalities and potential changes. Third, in all stakeholder groups except the media and civil society, executives were specifically approached since they were expected to have the most comprehensive understanding of the context and the highest level of expertise. In the civil society and media groups, hierarchy seemed to be less important for a close connection to society and on-site developments. Therefore, the selection was based on the interviewees’ everyday experience with the relevant topics. Five of the interviews were conducted between May and June 2017. Two supplementary interviews took place in May 2021 to reflect recent developments, especially the foundation of the Textilakademie NRW and the project Textilfabrik 7.0.⁴

The interview guide covered the following topics: a brief self-introduction of the interviewees including their professional connections to the textile and clothing industry and the city of Mönchengladbach. A further batch of questions regarded the upswing and heyday of the textile and clothing industry and its development since the beginning of the textile crisis of the 1960s. Questions referred to concrete measures taken to cope with structural change and its effects in the industry as well as to the founding stories of the institutions that have shaped the textile and clothing industry in Mönchengladbach in recent years. Finally, a few supplementary questions helped capture the overall context of the city’s economic development. During the interviews, interviewees were repeatedly asked about the stakeholders and alliances involved, triggers and motives, historic outcomes and effects on local structures, and formative thought patterns, expectations and visions for the future.

The interviews were examined within the framework of a qualitative content analysis in accordance with Mayring (2015). The code tree shown in Fig. 1 was applied for each of the three time periods (see Fig. 2).

The resulting overview was compared and complemented with the results of the document-based analysis. This approach enabled a structured tracing of the key events and the development of the local imaginaries and directionalities. It also served for the comparison with the theoretical reflections presented in Chap. 2.

The analysis is subject to the typical limitations of a single case study. Though a limited number, the seven interviews were conducted in a very specific context, with the consistency between the statements of the interviewees suggesting that the research questions for this specific case study could be sufficiently clarified. When considering transferability, the specific economic, social and spatial context should be taken into account. Nevertheless, the analysis reveals fundamental mechanisms that are critically discussed in Chap. 5, acknowledging and extending existing theoretical approaches presented in Chap. 2.

This period is characterised by the onset of the textile crisis and its massive socio-economic impact in the first years of structural change. This period also includes the foundation of the University of Applied Sciences in Mönchengladbach, a decisive factor for the further course of events.

In the following, three historical events are presented to illustrate the change of perspective from rather negative local imaginaries to new directionalities. The events include the foundation of the business development agency, the definition of five lead sectors and the initiation of a textile recruitment fair.

This chapter examines the development of the textile and clothing industry in Mönchengladbach since the 2010s. The industry’s current position in Mönchengladbach is briefly described, followed by explanations regarding the emergence of a new directionality. Subsequently, the expectations and activities related to the new directionality are described by means of three key events.

The case study provides evidence of the lines of thought deriving from the theoretical discussion on the way the city’s economic history, manifested in imaginaries and directionalities, still affects agency. Fig. 3 shows how these factors take effect in the case study.

As indicated in the theoretical discussion, imaginaries and directionalities, transferred via narratives, help communicate ideas and concepts between different stakeholder groups, promoting the formation of networks and alliances and unifying otherwise disparate players under a shared belief, value, or vision. The case study suggests that directionalities in particular unfold their power and potential through stakeholder networks and strategic alliances of the willing, as illustrated by every event presented in the case study, all of which were realized by several groups working together. This illustrates that no stakeholder alone could have implemented the steps towards realizing the desired directionality, supporting the significance of place-based leadership. Moreover, the case study provides evidence of the “role of leading urban attractors and the associated urban narrative” described by van Boom and Mommaas (2009: 53–54). It also provides examples of all three types of change agency championed by Grillitsch and Sotarauta (2019). However, in almost all the described events, the driving force for change was the business community. Referring to Grillitsch and Sotarauta (2019), this finding underlines the innovative qualities of Schumpeterian entrepreneurship. However, the case study also shows how public-private-partnership (business development agency) was used to build a bridge to politics and administration. The business development agency in particular has taken on place-based leadership and was involved in almost all events (e.g. textile recruitment fair “MG Zieht An”, project “Textilfabrik 7.0”). Furthermore, Miörner’s (2020) argument that directionalities are developed and disseminated by public stakeholders can be retraced in the case study (e.g. the definition of 5 lead sectors, MG 3.0, the integration of the textile heritage into the official city development strategy MG+). Furthermore, the analysis shows that individual stakeholders often took on multiple roles, serving the different aspects of professional, power, process and relationship promotion (Kristof 2010).

Furthermore, the case study provides evidence of the motivating/demotivating effect of imaginaries and directionalities discussed in the theoretical chapter (Raagmaa 2002). While a troubled identification with one’s own city can be a hindrance, a positive identification can have a motivating effect on actively changing outdated structures and promoting new path creation. For example, in the case of the establishment of the textile recruitment fair, widespread belief in the decline of the textile industry had led to demotivation and a slump in applicant numbers.

In addition to the mechanisms derived from the theoretical discussion, the case study revealed two others. First, imaginaries and directionalities related to training and employment aspects can have an impact on agency. The case study provides at least three examples: the foundation of the University of Applied Sciences, the establishment of the textile recruitment fair and the foundation of the training and further education academy for textile (training) professions. The aforementioned example of the establishment of the textile recruitment fair shows how textile entrepreneurs were prompted to actively counteract a negative imaginary regarding poor job prospects in the textile and clothing industry. To prevent it becoming a self-fulfilling prophecy, they had to highlight future prospects and invest in young talents. In this sense, addressing the issue of talent has driven agency and led to new impetus for the textile and clothing industry. Second, the imaginaries and directionalities related to Mönchengladbach being a hotspot for textile and clothing knowhow were also helpful in promoting agency with regard to research and innovation, e.g. the project Textilfabrik 7.0. The narrative of being the largest academic institution for the textile and clothing industry in Europe has contributed to gaining more students and boosting reputation and funding over the years.

The case study’s empirical chapter provides evidence that the theoretically derived assumption that both the reinterpretation of hindering imaginaries and the formulation of new directionalities can be used to balance system selectivity and trigger change agency. The case study illustrates how local stakeholders understood the negative effects of deficit-oriented local imaginaries and chose to counteract them. A reinterpretation of the economic history occurred, moving away from deficit-oriented imaginaries towards more appreciative imaginaries. The latter highlight pride in the city’s economic heritage and interpret it as a valuable asset. This reframing of the past supports the emergence of positive new directionalities, promoting new path creation. In this regard, the analysis suggests that a process perspective is needed (Martin 2010) when it comes to imaginaries and directionalities. If the latter are handled without reflection and continuous review, they can soon become outdated imaginaries, in turn hindering new path creation. This finding supports van Boom and Mommaas’ (2009) statement on the balancing act between focusing and promoting an open evolutionary system.

Moreover, the analysis suggests that expectations are key elements of directionalities. It illustrates how expectations and thus directionalities can have an inhibiting effect when over-relying on past experiences. As shown in the analysis, this was the case at the beginning of the textile crisis when adherence to obsolete imaginaries prevented textile entrepreneurs from implementing adjustments. One positive example of the integration of future-oriented expectations is the definition and promotion of the five lead sectors in 2001. This decision upheld the economic heritage of the textile and clothing industry, while taking up new elements, such as expansion of the logistics sector. This approach made it possible to break path dependence and open the door to new path creation. In particular, the effect of directionalities on agency seems to depend strongly on how much new impetus they allow and absorb. This finding shows parallels with the considerations of the absorptive capacity explained by Martin and Simmie (2008). The case study illustrates how past-oriented imaginaries needed to be supplemented by new impulses to expand the perceived opportunity space (Grillitsch and Sotarauta 2019).

The case study provides evidence for imaginaries and directionalities being important success factors for revitalization strategies (van Boom & Mommaas 2009). Nonetheless, it should be critically noted that the application of this knowledge is complex, as noted by Friedrichs (2004: 33). The fine line between discarding, reinterpreting and integrating ideas and values constitutes a challenge when attempting to disseminate them in the urban community.

In addition to the two core elements of the research questions, both the theoretical discussion in the research field of EEG and the case study highlight another important aspect: the significance of context. For instance, the analysis shows that other vision development processes can have an impact on the emergence of new directionalities, cross-fertilising each other to a certain extent. In the case study, for example, this applies to the process of developing the city’s vision MG 3.0 and to that for the surrounding lignite mining area. In this regard, changes in the surrounding context can broaden the perceived opportunity space and support new path creation. Another example is the role of the University of Applied Sciences with its textile and clothing faculty, which turned out to be the most important structural element in the case study. Its foundation and development over time illustrate the persistent yet flexible role educational institutions can play in an urban system and how closely they are interconnected with agency. Over the years, the university and faculty have become an important anchor for the city’s textile and clothing heritage and industry, providing continuity, new impetus from research and development and significantly influencing the location decisions of later institutions, such as the Textilakademie (int. 6). Without the University of Applied Sciences in Mönchengladbach, hence without local, research-inspired impetus, the latest signs of “the renaissance of the textile city” seem rather unlikely. Indeed, it can be assumed that the imaginaries and directionalities might have otherwise evolved differently.