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Critical Success Factors for a Knowledge-Based Economy: An Empirical Study into Background Factors of Economic Dynamism

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Book cover Innovation, Growth and Competitiveness

Part of the book series: Advances in Spatial Science ((ADVSPATIAL))

Abstract

During the past decade the notion of a knowledge-based economy has gained in popularity. The relationship between knowledge and economic growth is often studied in a conceptual and empirical context by addressing in particular the existence of correlations between factors of growth (on the basis of, for example, the new growth theory or endogenous growth theory). The present paper, however, takes an actor-oriented and more exploratory route to compare the knowledge-drivers in different regions. In our study, a sample of Dutch “knowledge experts” is used to identify the relative importance attached by these key-actors to the various factors that shape the force field of a knowledge-based economy, and their results are compared with those of a larger sample of European “knowledge-experts”. The study in particular distinguishes between developed regions, developing regions, and semi-developed regions. Starting from the notions of mainstream growth theory, a factor analysis is carried out to trace the main determinants of growth. Empirical analysis shows that Dutch experts are of the opinion that economic dynamism is explained by increasing returns to scale and knowledge and business network effects, rather than by international free trade in a global economy. In particular, competitiveness is related to the location of industries and economies of agglomeration (i.e. linkages), whereby also social, cultural and institutional factors in the spatial economy play an important role. Furthermore, statistical regression and multivariate factor analysis show that Dutch experts are supportive of the notion that it is especially the interplay between knowledge development and institutional dynamics which shapes the economic landscape of a particular region. We, therefore, conclude that a more evolutionary view instead of the new trade theory or new economic geography may offer promising new insights.

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Notes

  1. 1.

    For a more detailed survey of the literature on economic growth, we refer to http://www.esri.ie/research/current_research_projects/dynreg/papers/. Here, the reader will find an overview of the papers published for the DYNREG project, and in particular the papers of Petrakos et al. (2007) and Artelanis et al. (2006), referred to later in Sect.4.2.

  2. 2.

    This questionnaire is part of a larger research project entitled “Dynamic Regions in a Knowledge-Driven Global Economy: Lessons and Policy Implications for the EU (DYNREG)”, a European Commission project funded from the Sixth Framework. The programme partners are as follows: University of Cambridge (United Kingdom), London School of Economics (United Kingdom), The Economic and Social Research Institute (Ireland), University of Bonn (Germany), University of Thessaly (Greece), VU University Amsterdam (The Netherlands), Free University Brussels (Belgium), University of Economics and Business Administration (Austria), University “Luigi Bocconi” (Italy), and University of Ljubljana (Slovenia). More information about the project is available at http://www.esri.ie/research/current_research_projects/dynreg/

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Authors and Affiliations

  1. Center for Entrepreneurship, VU University Amsterdam, De Boelelaan 1105, 1081HV, Amsterdam, The Netherlands

    Patricia van Hemert

  2. Department of Spatial Economics, VU University Amsterdam, De Boelelaan 1105, 1081HV, Amsterdam, The Netherlands

    Peter Nijkamp

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  1. VU University Amsterdam, De Boelelaan 1105, Amsterdam, 1081 HV, Netherlands

    Peter Nijkamp

  2. (ESRI), Economic and Social Research Institute, Whitaker Square, Sir John Rogerson's Quay, Dublin, 2, Ireland

    Iulia Siedschlag

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van Hemert, P., Nijkamp, P. (2011). Critical Success Factors for a Knowledge-Based Economy: An Empirical Study into Background Factors of Economic Dynamism. In: Nijkamp, P., Siedschlag, I. (eds) Innovation, Growth and Competitiveness. Advances in Spatial Science. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-14965-8_4

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