The geography of technological innovation systems - The case of forest-based biofuels in a Swedish region

Geographical proximity exerts a substantial influence on structural evolution, developmental trajectory, and pace of sociotechnical system growth. This study explores this aspect within the context of the development of forest biomass-based biofuel technology, employing a Technological Innovation System (TIS) framework with the lens of geographical proximity utilization of system components. The research employed a combination of document analysis and interviews with key system stakeholders as data collection methods. The analysis reveals that the close geographical proximity of the system components and technologies, encompassing both technical aspects and sectors, did not result in synergetic effects, in contrast to prior TIS research findings. Rather than fostering collaboration, it has engendered a competitive dynamic, partially driven by actors vying for knowledge leads and funding from both regional and national agencies. Consequently, the potential benefits of geographical proximity of system components remain largely untapped. In light of these results, this study offers practical recommendations for exploiting untapped opportunities, advocating for more strategic use of geographical proximity to foster system technology development and enhance its role in national TIS development. This case study enriches sustainability transition literature by providing valuable insights into the role of geographical proximity in innovation processes.