Arctic Yearbook 2014 - Page 151

151   Arctic Yearbook 2014   capital (Beyers & Lindahl 2001; Boschma 2005; Gradus & Lithwick 1996; Selada et al. 2011). Petrov (2007) identified creative ‘hot spots’ within peripheral regions of Canada. These areas are found to have the potential to attract creative capital and compete nationally. In order for peripheries to become ‘hot spots’ of innovation and economic growth there has to be a connection to localized knowledge and social setting that can be formed with institution building and formation of civic society (Aarsaether 2004; Petrov 2011). If that is the case, the question would be whether and in what form the idea of development based on local creative capital can be relevant and adaptable to the Arctic regions? A growing consensus among scholars (and, increasingly, among policymakers) is that social and economic development strategies in the Arctic must reconcile a postcolonial paradigm of the locally-oriented development and realities of the contemporary capitalism (including pressures and competition imposed by globalization). If one follows the argument of ‘constructive’ post-developmentalists (see Power 2003; Radcliffe 2005), an alternative development regime must be simultaneously based on emerging traditions of the post-industrial society, post-Fordist capitalism, and the postcolonial paradigm. In the Arctic regions, it also must be supplemented by the consensus between aboriginalism, environmentalism, industrialism and nationalism (Hayter et al. 2003). This complex task, in terms of regional policies, must result in ‘situatedness’, appreciation of local knowledge, promotion of local initiative, devolution of control, development of a knowledge-based economy, and so forth. In this respect, the alternative strategy based on utilizing local creative capital to foster economic development appears to be appealing. As it is described below, there is preliminary evidence that such a scenario can be seriously considered. However, any research into this matter faces the lack of basic knowledge about the spatial distribution, characteristics and utilization of the creative capital, as well as the lack of conceptual and methodological foundations for conducting such a study. Sections below discuss theories and evidence that help to fill some of these important gaps. Creative Capital and Economic Development in the Arctic: Theory In a resource economy the physical value of a resource, not the amount of knowledge used for its production,