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Andreas P. Cornett and Nils Karl Sørensen

This chapter examines how entrepreneurial activities and innovation can contribute to regional economic competitiveness and restructuring with point of departure in the existing factor endowment and potentials. The short as well as the long run implications are discussed and examined. Furthermore, long-term implications, and the costs and benefits of gradual transition versus the risks of being trapped in a trajectory not leading to a fundamental improvement, is discussed. Special attention is devoted to the three Scandinavian countries, Finland and Northern Germany. Findings indicate, that regions are affected differently, and that the time profile of measures usually is different. New economic growth theory anchored policy has usual a longer time horizon when used as vehicle for regional economic transition. Furthermore, sectoral and demographic factors interfere differently depending on the type of regions, the economic system and the regional potentials.

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Rannveig Edda Hjaltadóttir, Teemu Makkonen and Nils Karl Sørensen