This paper develops a framework for competitiveness that incorporates path dependency within production regions. Patterns of technological innovation, product development, institutions, and market orientation follow a certain local path. This evolution creates regional economies that emerge with unexpected competitive advantage. The model draws on previous work looking at, among other things, induced innovation. The framework is applied here to the major regional tomato producers in North America. The paper examines the role of various institutions (grower associations, governments, research institutions, and support industry) in influencing the path along which a regional sector evolves.