Learning regions as a framework for innovation policy: A review of the issues

Abstract Much of the contemporary discussion of innovation and learning assumes that knowledge sharing is more likely to occur between physically proximate parties than among those who are geographically remote from each other. The importance of localised learning forms part of the claim for the existence of regional innovation systems or learning regions. This review identifi es how the importance of localised learning relies on assumptions about the forms of knowledge transmission, the relative importance of diff erent types of knowledge and the role of workers as knowledge bearers. It argues that theories of localised learning imply that knowledge is transferred independent of business transactions, that knowledge is a public good and that knowledge is most effectively transferred through face-to-face interaction. These assumptions contrast with changes that have occurred in the organisation of economic activity. Drawing on the concept of collective invention, it is suggested that localised learning may occur when there is a high level of technological uncertainty.