Knowledge, Innovation and Regional Development

For the past three decades the world has been fascinated by developments in “Silicon Valley.” The developments we have in mind are the ubiquitous creation of new product innovations in this part of the world. The valley has had an unprecedented record of success in the introduction of computers, software, semiconductors, telecommunications equipment and a host of other innovations that have come to dominate modern information technology. While this is not the only region of the world that has experienced an outflow of innovations, the truth of the matter is that regions that are innovative appear to grow faster (Suarez-Villa 2000). There is a growing consensus that innovation is the key driving force behind regional economic growth, standards of living, and international competitiveness (Acs 2002).

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