Working Paper Series in Economics and Institutions of Innovation,
Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper focuses on the concept of knowledge and examines models depicting and explaining the role of knowledge in regional development and provides an assessment of empirical studies of how knowledge affects growth and development in functional regions. For this paper it is crucial to understand those factors that make knowledge spatially sticky and knowledge-production capacity trapped. It is equally important to explain the conditions for knowledge flows and diffusion. The presentation also widens the view by extending the analysis of knowledge creation to include aspects of creativity. Since location advantages and especially the knowledge-based advantages have the feature of moving in slowly path-dependent processes the regional policy needs to focus on structural adjustments of tangible and non-tangible infrastructure to succeed.

Keywords: knowledge; functional regions; regional growth; knowledge creativity; localization and spatiality processes

JEL-codes: D80; R11; R12

48 pages, September 14, 2006

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