ABSTRACT
This chapter focuses on how a knowledge-based economy affects balanced regional economic growth and vitality, and illustrates how the Danish government has structured regional policy to strengthen the knowledge-based economy in marginal regions. It explores an eclectic theory focused on learning culture, trust, cluster building, and inter-organizational competence to explain that under what circumstances Danish regional growth strategy can be effectively operationalized. Overall, the eclectic theory, with its emphasis on learning culture, trust, cluster building and inter-organizational competence, is useful in understanding Danish regional development strategy and its effects. Denmark does not hold any global high-tech industries and corporations. For a small nation, Denmark has achieved tremendous development in terms of industry and income per capita, which has contributed to creating a balanced regional growth. In sum, Denmark seems to be succeeding in creating balanced regional development based on a strategy to develop niche technologies across a wide variety of sectors.
