Scandinavian Working Papers in Economics

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

No 144: Entrepreneurship and Innovation in Functional Regions

Charlie Karlsson (), Börje Johansson () and Roger Stough
Additional contact information
Charlie Karlsson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Börje Johansson: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Roger Stough: George Mason University

Abstract: The purpose of this paper is to discuss the role of entrepreneurship and innovations for economic development in functional regions and in doing that highlighting the different conditions offered for entrepreneurship and innovations in functional regions of various sizes. In conclusion, the conditions for entrepreneurship and innovations vary substantially between functional regions, since the necessary knowledge resources tend to be local and to cluster in certain regions and not others. Functional regions with a high capacity to generate new ideas, create knowledge, organizational learning and innovations are characterized as learning regions. Large functional regions offer a large market potential and a superior accessibility to knowledge and knowledge resources and they will further develop their creative capabilities due to an accumulation of innovative and entrepreneurial knowledge.

Keywords: Entrepreneurship; Innovations; Regional development; R&D; Knowledge Sources; Knowledge Flows; Knowledge Creation

JEL-codes: D21; M13; R10

15 pages, September 9, 2008

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