Creating Competitiveness

Creating Competitiveness

Entrepreneurship and Innovation Policies for Growth

Edited by David B. Audretsch and Mary Lindenstein Walshok

Although competitiveness is typically associated with firms, they are not the only organizational body whose performance is dependent upon competitiveness. This poignant insightful book focuses on how the varied economic performance of cities and regions, both within nations as well as across nations, during the era of the ‘Great Recession’ also highlights the need for competitiveness.

Chapter 8: Evolving technologies and emerging regions: governance for growth and prosperity

Thomas Andersson

Subjects: business and management, entrepreneurship, organisational innovation


An extensive literature has examined the advance of globalization coupled with technical progress and the associated implications for growth and development. The focus has gradually shifted from the role of crossborder product and factor flows across the internationalization of firmspecific assets by transnational companies to the growing economic interdependency of countries and regions around the world (Dunning, 1977; Ohmae, 1995). A separate track has examined the scope for national or regional policies to attract mobile resources and create synergies between complementary assets and capabilities in the local environment. Examples are the works on competence blocs (Dahmén, 1950), industrial districts (Brusco, 1982), clusters (Porter, 1990), innovation systems (Lundvall, 1992), the Triple Helix (Etzkowitz and Leydesdorff, 1997), and even the creative class (Florida, 2002). In the case of developing countries, the early focus on gaining control of natural resource extraction and refining (Nurkse, 1953; Rostow, 1960) gave way to an emphasis on promoting industries capable of achieving competitiveness in world markets (Krueger, 1978). The importance of putting diverse local drivers for growth in place soon became evident for these countries as well. The so-called ‘four pillars’ proposed a comprehensive approach spanning regulatory and institutional reform, education, ICT, and innovation for developing countries to take advantage of the expanding global knowledge flows for development (World Bank, 1999/2000; Dahlman and Andersson, 2000).

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