ABSTRACT
In the era of knowledge-based economy, the regional or local knowledge environment and innovation environments for specific business areas have become more important. In the knowledge-based economy, the base of knowledge constantly evolves institutionally. New institutions are taking part in the local innovation networks, shaping the technological change and transformation in the region for the benefits of all parties, local businesses, universities or other higher education institutions and local or national development authorities. The institutional evolution comes about by linking different kinds of knowledge creation institutions to the knowledge exploitation organizations and sub-systems through new kinds of knowledge-enhancing mechanisms, and mainly from the R&D conducted in relation to regional capabilities (see Cooke and Leydesdorff, 2006).
