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While economic geography has contributed deep insights into the knowledge-related determinants of industry emergence, less is known about the legitimacy that people confer to the new industries. Based on a comparative case study in the potable water reuse industry (California, United States) and the video games industry (Hamburg, Germany), this article explores the legitimation dynamics in regional industrial path development. We elaborate on how system-building/reconfiguration and institutional work processes differ between industries that are new-to-the-world versus new-to-the-region. Our framework contributes to specifying the embedded agency that supports legitimation and thus path development in these two distinct industry formation trajectories.

Legitimation dynamics in industrial path development: new-to-the-world versus new-to-the-region industries