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Although the literature provides a huge number of studies on specialized regions, such as clusters and industrial districts, most of them concern developed regions. Studies that focus on the initial processes and preconditions for the emergence of economic specialization in lagging regions are rare, and studies of this kind considering a large number of cases not existing. We use the information on 140 villages in lagging rural regions in Iran to examine the initializing processes and preconditions as well as the connection between the two. We find that the conditions that are present in the region affect the potential initial processes and developments that might lead to specialization. Thus, the findings support the application of place-based policies.

Prerequisites and initial developments for economic specialization in lagging regions—A study of specialized villages in Iran