Technological Change and Regional Development in Europe: An Introduction

Abstract

The current debate about knowledge-based economic development has been directing the interest of numerous scientific disciplines to the questions of how and where knowledge arises. The structural change triggered by globalisation is increasing the competitive pressure on firms, which have to put innovative products on the market at ever decreasing intervals. Increasing interaction between the different actors is required by the complexity of innovation processes. Successful development of new products, processes and organisational solutions is thus the result not solely of innovative decisions within an isolated firm, but depends on the whole business environment. Innovation is no longer understood as a straightforward linear sequence leading from basic research to production, as suggested by previous models of innovation. It is now recognised that innovation processes are far more complex. Within innovation economics, the chain-linked innovation model has become commonly accepted. In this model, each phase of the innovation process is linked to all the other phases, with a continuous exchange taking place between researchers, producers and customers. The concentration on core competences, which the need for flexible specialisation has made even more essential, is forcing firms to enter into innovation co-operation agreements with other actors, such as customers, suppliers, producer service firms, competitors and research institutions.