ABSTRACT
This chapter reviews the main issues of structural economic change and investigate their implications for regional development. Also policy aspects are considered because it is important to know the scope for action by regional and national governments that are confronted with the unbalances in the development of the regions. Specialization and free trade are the manifestation of borderless economy which permit division of labour and enhance the comparative advantage of regions. Regional comparative advantage reveals itself in lower input costs and a higher productivity of each unit of factor of production. The high-tech industrial complex has undergone tremendous expansion worldwide, stimulating a new wave of industrial growth. Policy makers view high-technology industries as crucial components of regional economic growth and an increasingly important part of a regional export base. In recent years researchers have become increasingly aware of the role of industrial innovation and the impact of its diffusion processes on regional development and economic growth.
