I am writing an essay on MSc course, and I need to do a thorough analysis of the text. Basically, I struggle to understand the word polarisation and thus the whole meaning because of it. The dictionary does not help much as it refers to physics or either to two opposing groups of something.

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a. A process or state in which rays of light exhibit different properties in different directions, especially the state in which all the vibration takes place in one plane.

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In context, the author is commenting on the fact that resources (which in papers is often synonymous with money) being concentrated into certain small areas of special interest, instead of being spread thinly over the sector as a whole.

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The implication is that the process of technical change, at the firm level, is generally evolutionary. Firms that survive within the marketplace will move along a technical trajectory accumulating resource commitments and expertise that is generally heterogeneous in character. Knowledge is learnt actively, rather than gained from an exogenously defined set of blueprints. Edith Penrose appeared to have this point in mind when she choose to stress that a firm’s ability to compete successfully depended upon its resource base. Resources may be built up over time but incur opportunity costs. Those costs include an increasing polarisation of resources towards specific knowledge and expertise. Such polarisation may be particularly problematic when new technology threatens to disrupt established infrastructural and technical systems. With this in mind, Chesbrough and Teece’s distinction between autonomous and systemic innovation is helpful..

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Polarization has been badly used here. The author ought to have brought out two opposing subjects/ items, or just simply, two opposites opposite ideas.

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Here, in this sentence, I'm trying to say that lack of affordable housing will lead to a friction between the different social classes

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'.... trouble is looming if lack of affordable housing continues. If it leads to polarization, then our reforms have failed'

P.S I did my BSc in technical discipline and God how I struggle to understand business people who write academic papers with the sole idea of making it to look cool with fancy words...

b. The partial or complete polar separation of positive and negative electric charge in a nuclear, atomic, molecular, or chemical system.

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In your sentence, the author is (mis)using the second meaning. The author is attempting to invoke the concentration part of the definition without also making use of the two conflicting or contrasting positions part of the definition.

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