The Design of Regional Innovation Systems

Abstract:     
Regional Innovation Systems are an analytical approach to better understand the organizational microstructure of innovation processes taking place inside a region and its connectedness with the outside world. Since traditional economic approaches primarily focus on markets its agents and the process of price formation there is a significant disregard of the institutional framework including non-market public institutions and governments as policy makers. Because of the interconnectedness between the communications and activities between these heterogeneous agents and the lack of a common target function the approach is more descriptive than analytic. The present paper outlines basic design principles for regional innovation systems derived from case studies of successful innovation clusters and regions like the Silicon Valley in the US, the Audio Valley in Germany and the Zhongguancun Science Park near Beijing. These experiences derives from such endeavours is that in general that these innovation systems reach far beyond the traditional framework of R&D, new technology generation but stress the importance of creating an innovation eco-system which includes as well the innovation business infrastructure and the regional links between generation of knowledge in a couple of research areas and the knowledge transfer into production for global markets. The creating of new knowledge often focused on high-tech innovation areas which are Big science and the implementation of these regional comparative advantages in this knowledge creating into business success meaning marketing new products and services for the global market has become a central long-term aim for regional innovation system design. It also makes clear that the necessity to reach a critical mass makes this strategy an impossible option for very few regions around the world. However, the EU member countries facing the stiff competition from abroad have to accept that the European research Area has to follow these lines to obtain long-term locational competitiveness in innovation at a global scale. Otherwise the ERA will fall behind other centres of excellence.

Number of Pages in PDF File: 19

Keywords: Regional innovation system, regional comparative advantage in innovation, globalization in innovation

JEL Classification: O2, O31, R11, R58, L52

working papers series