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The theoretical starting point of this paper is the academic debate on regional specialization, agglomeration and industrial clusters. The paper offers further insights into the industrial dynamics within regional contexts by combining two approaches: (1) an historical study of industrial agency focusing on entrepreneurship, diversification and specialization; (2) a study of the relations within contemporary industrial systems important for industrial upgrading. Methodical triangulation has provided longitudinal studies. Particular attention is paid to path dependence as well as entrepreneurial capacity in order to explain why the industrial trajectories of matching regions divide. As the paper discusses continuity and change, a more dynamic perspective on path dependency is introduced. The past is not just regarded as a constraint, but as heritage as well. The dynamics leading to cluster formation and upgrading as well as industrial fragmentation are investigated in detail. The developments of shipyards and related maritime industries of the two Norwegian regions compared are characterized by static continuity and dynamic continuity, respectively.
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