Innovation, Agglomeration and Regional Competition
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Innovation, Agglomeration and Regional Competition

Edited by Charlie Karlsson, Börje Johansson and Roger R. Stough

This book provides a state-of-the-art overview of current research on regional competition and co-operation. Developing our current understanding of the new role of regions and their behaviour, this book addresses questions such as: How and why do regions compete? How does competition between border regions operate? Which regions are successful and which regions fail? What are the implications of regional competition in terms of resource allocation, the location of economic activities and the distribution of incomes? The book illuminates a number of critical theoretical end empirical issues relating to the competitive and cooperative nature of regions, as well as highlighting a number of new case studies from a variety of countries.
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Chapter 13: Science-based Regional Development in a Small Region: Scope of Collective Action for Regional Governments

Knut Koschatzky


Knut Koschatzky INTRODUCTION 13.1 Within the European Research Area, a policy concept which reflects the rising importance of strong regional science and technology clusters and the political will to foster regional development in order to strengthen the competitiveness of Europe as a whole (European Commission, 2001), many regions entered a new form of global interregional competition for public funds, innovative companies and human capital. The increasing regionalism in science, technology and innovation policy is at least partly the result of the ‘re-discovery’ of space in economic theory, above all in the new growth and new trade theory and ‘new economic geography’ (Krugman, 1991), as well as the multi-faceted analyses of national, regional and new economy innovation systems and their political implications (Cooke 1992, 2001; Cooke et al., 2000; Nelson, 1993). Against the background of promoting the scientific and technological potential of specific regions as the backbone of national and even European innovation systems, regional governments and authorities are confronted with a new situation. On the one hand, the regions which receive national or even European policy support are privileged. On the other hand, the fight for public funds became harder for many regions, and in particular all those regions that rely heavily on knowledge resources for economic and social development entered a new form of global competition with similar regions. In this respect, a science-based, regional development strategy supporting strong interactions between the science and industrial sector is an important precondition for creating favourable location conditions, which not only attract...

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