ABSTRACT
Globalisation is at the core of understanding the dynamics of contemporary capitalism. Increasingly there is strong agreement that innovation is the key factor in promoting competitiveness in a globalizing knowledge economy (Lundvall 2008; Porter 1998). Competition based on innovation implies choosing the high road strategy, which is the only sustainable alternative for developed, highcost regional and national economies. For a long time, such a strategy was thought of as being identical with promoting high-tech, R&D-intensive industries in accordance with the linear view of innovation. More and more, the recognition has evolved that a broader and more comprehensive view on innovation has to be applied to retain and develop competitiveness in the heterogeneity of Europe’s regions. This implies that regional advantage has to be constructed more on the basis of the uniqueness of the capabilities of firms and regions than solely on the basis of R&D efforts (Asheim et al. 2006; Barney 1991; Eisenhardt and Martin 2000; Malmberg and Maskell 1999). This reflects recent research pointing to the complexity of modern products and their innovation processes (Lam 2002), which requires a differentiated knowledge base perspective (i.e. distinguishing between analytical, synthetic and symbolic knowledge) to be fully accommodated (Asheim and Gertler 2005; Asheim et al. 2007). Such a broad-based innovation policy is in line with the innovation system perspective of defining innovation as interactive learning combining an STI (Science, Technology, Innovation) and a DUI (Doing, Using, Interacting) mode of innovation (Lorenz and Lundvall 2006).
