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Regional Innovation Policy for Small-Medium Enterprises

Edited by Bjørn T. Asheim, Arne Isaksen, Claire Nauwelaers and Franz Tödtling

This book provides an extensive evaluation of the numerous policy instruments used by regional governments in Europe to promote innovation activity in Small and Medium Enterprises (SMEs). The instruments are compared and benchmarked in order to identify ‘good practice’, in an effort to bridge the gap between the theory of regional innovation and real-world policy implementation.
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1. Camagni (1991) offers a related perspective to explain how firms translate external information into a language that the firm can understand via a ‘transcoding function’. According to Camagni: ‘These functions are perhaps the most critical, though widely overlooked by economic theory, in that they control the process of interfirm know-how transfer and information appropriation. Utilizing codified information, both freely available or costly, and merging it with chaotic and unordered “information” results in a firm-specific “knowledge” and possibly into potential business ideas at the disposal of the managerial decision-making’ (Camagni, 1991, p.127). 2. A third type of coordinated economies (not further discussed in the chapter) is the keiretsu- or chaebol-type coordination among groups of companies in industries in Japan and Korea. 3. Part of this chapter was first published in Musyck, B. and G. Garofoli (2001), ‘Innovation policies for SMEs in Europe: towards an interactive model?’, Regional Studies, 35(9), pp. 869–72. Reprinted with kind permission of the Taylor and Francis Group ( 4. The additionality of the policy tools is related to the changes that would not have occurred without its implementation. 5. LVBIC from the United Kingdom could also be included in this section. 6. Bl, LVCs and LVBIC from the United Kingdom could also be included in this section. 7. As an example the UK team found that some technological centres are catering for the needs of large firms as well as SMEs in their study of Regional Technology Initiatives (RTIs)...

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