Green path development: The agency of the City of Vaasa in establishing the battery industry

Abstract

Empirical studies on agency in green path development (GPD) have underexplored non-firm actors' roles. Through a semi-structured interview, this article provides insight into how the City of Vaasa exercises agency toward developing the battery industry and the concomitant effects. The findings reveal that the City of Vaasa provides place-based leadership, for example, through a local-based initiative, that is, the GigaVaasa, as a platform to increase participation and coordinate the actions of public and private actors. As an institutional entrepreneur, they govern the issuance of operating licenses to optimize their economic interest; as innovative entrepreneur, they strategically plan and coordinate infrastructure development to increase the region's attractiveness to external investors and talents. The City of Vaasa agency increases the chances for the region to participate in the global battery market and stimulate the region's economic development. Nonetheless, environmental sustainability concerns remain a profound unintended effect. Conceptually, the article introduces the agency cyclicality and synchronization model to enhance the understanding of the interplay and effect of agency in an emerging green industry's development trajectory.