ABSTRACT
Regional government competition, which is achieved through the effective allocation of regional resource factors, can be interpreted in both the broad and narrow sense. Porter points out that a country’s economic development undergoes four phases, which are characterized as factor-driven, investment-driven, innovation-driven and wealth-driven. Infrastructure, which is a typical type of quasi-operational resource and the major object of competition for regional government, can be distinguished in the broad and the narrow sense. Innovation-driven economic development is based on the assumption that high-tech, management, organization and institution are primary resources. The resource allocation in the innovation-driven phase is mainly manifested by the inclination and aggregation of human resources, capital, technology, management, policy-making and others towards new technology, management, organization and institution. Regarding policies for resource allocation in organizational innovation, special attention should be paid to changes in governance structure and modes established as a result of new economy and new business modes, with all necessary support.
