ABSTRACT
Paradoxically, heightened globalization and continuing European integration go hand in hand with the increasing significance of regional economies as entities of competitive rivalry (see Porter 1990, Amin & Thrift 1994a). Internationally orientated enterprises are more likely to move their business functions, whether this is production, research, distribution or administration, to those locations that fit best to their market needs or where added value is highest. The process of global sourcing has made firms more aware of the competitive advantages of particular nations or regions. At the same time, firms that have built up collaborative links in a particular region, with other firms, knowledge centres, educational institutes or government funding agencies, could choose to stay (partly) located in that area, to utilize these networks. Networks in this sense are an important source of innovative ideas, not only in terms of transfer of scientific and technological expertise, but also in terms of inter-and intra-firm organization.
