ABSTRACT
Over the past ten years, two important lessons have emerged from research focusing on globalization and its influence on the distribution of economic activity. First, in the shift from an industrial to a knowledge-based economy, knowledge has become the most important resource. Drucker (1993) argues that knowledge is the only meaningful resource in achieving sustainable competitive advantage. Second, regional economies foster the creation of knowledge because they possess the fundamental attributes that are necessary to initiate the knowledge creation process. A shorter distance provides the basis for inter-firm relationships and thus, the transfer of knowledge between these firms. The purpose of this chapter is to review the concepts of region and knowledge and the relationship that exists between them.
