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This volume provides a collection of theoretical articles and
empirical studies on innovation and location by focusing on the
institutions and systems that mediate knowledge spillovers. The
objective is to provide an international comparison using a variety
of approaches. The volume is organized around the three themes. The
first focuses on theoretical work that attempts to advance our
understanding of knowledge externalities and systems on innovation.
The second section provides empirical studies that attempt to
measure these impacts. The final section considers future
challenges to regional economic development policy in the face of
economic integration and globalization.
Science and technology have long been regarded as important
determinants of economic growth. Edwin Mansfield (1971, pp. 1- 2),
a pioneer in the economics of technological change, noted:
Technological change is an important, if not the most important,
factor responsible for economic growth . . . without question, [it]
is one of the most important determinants of the shape and
evolution of the American economy. Science and technology are even
more important in the "new economy," with its greater emphasis on
the role of intellectual property and knowledge transfer.
Therefore, it is unfortunate that most individuals rarely have the
opportunity to explore the economic implications of science and
technology. As a result, the antecedents and consequences of
technological change are poorly understood by many in the general
public. This lack of understanding is reflected in a recent survey
conducted by the National Science Board (2000), summarized in
Science & Engineering Indicators. ' As shown in Table 1. 1, the
findings of the survey indicated that many Americans, despite a
high level of interests in such matters, are not as well-informed
about technological issues as they are about other policy issues.
As shown in the table, individuals self assess, based on a scale
from 1 to 100, their interest in science and technology policy
issues as being relatively high, yet they self assess their
knowledge or informedness about these issues relatively lower.
Scholars in the science and technology field have not collectively
questioned, much less proposed, an agenda for policy makers. Now is
an appropriate time for such an undertaking. First, there is a
growing belief that the U.S. national research and development
system, like that of many industrial nations, is changing due to
global competitive pressures and advancements in information
technology and electronic commerce. Second, industry's R&D
relationship with the academic research community is changing not
only because of the global competition but also because of
alterations in the level of government support of fundamental
research. As a result, policy makers will need to rethink their
approaches to science and technology issues. This volume is a
collection of essays by scholars about innovative policy in the
knowledge-based economy. By knowledge-based economy we mean one for
which economic growth is based on the creation, distribution, and
use of technology. As such, innovation policy in such an economy
must enhance the creation, distribution, and use of knowledge that
leads to the creation, distribution, and use of technology. This
volume considers elements of an innovation policy: innovation
policy and academic research, innovation policy in electronic
commerce, and innovation policy and globalization issues.
This book offers a geographic dimension to the study of innovation
and product commercialization. Building on the literature in
economics and geography, this book demonstrates that product
innovation clusters spatially in regions which provide
concentrations of the knowledge needed for the commercialization
process. The book develops a conceptual model which links the
location of new product innovations to the sources of these
knowledge inputs. The geographic concentration of this knowledge
fonns a technological infrastructure which promotes infonnation
transfers, and lowers the risks and the costs of engaging in
innovative activity. Empirical estimation confinns that the
location of product innovation is related to the underlying
technological infrastructure, and that the location of the
knowledge inputs are mutually reinforcing in defining a region's
competitive advantage. The book concludes by considering the policy
implications of these fmdings for both private finns and state
governments. This work is intended for academics, policy
practitioners and students in the fields of innovation and
technological change, geography and regional science, and economic
development. This work is part of a larger research effort to
understand why the location of innovative activity varies
spatially, specifically the externalities and increasing returns
which accrue to location. xi Acknowledgements This work has
benefitted greatly from discussions with friends and colleagues. I
wish to specifically note the contribution of Mark Kamlet, Wes
Cohen, Richard Florida, Zoltan Acs and David Audretsch. I would
like to thank Gail Cohen Shaivitz for her dedication in editing the
final manuscript."
Science and technology have long been regarded as important
determinants of economic growth. Edwin Mansfield (1971, pp. 1- 2),
a pioneer in the economics of technological change, noted:
Technological change is an important, if not the most important,
factor responsible for economic growth . . . without question, [it]
is one of the most important determinants of the shape and
evolution of the American economy. Science and technology are even
more important in the "new economy," with its greater emphasis on
the role of intellectual property and knowledge transfer.
Therefore, it is unfortunate that most individuals rarely have the
opportunity to explore the economic implications of science and
technology. As a result, the antecedents and consequences of
technological change are poorly understood by many in the general
public. This lack of understanding is reflected in a recent survey
conducted by the National Science Board (2000), summarized in
Science & Engineering Indicators. ' As shown in Table 1. 1, the
findings of the survey indicated that many Americans, despite a
high level of interests in such matters, are not as well-informed
about technological issues as they are about other policy issues.
As shown in the table, individuals self assess, based on a scale
from 1 to 100, their interest in science and technology policy
issues as being relatively high, yet they self assess their
knowledge or informedness about these issues relatively lower.
This volume provides a collection of theoretical articles and
empirical studies on innovation and location by focusing on the
institutions and systems that mediate knowledge spillovers. The
objective is to provide an international comparison using a variety
of approaches. The volume is organized around the three themes. The
first focuses on theoretical work that attempts to advance our
understanding of knowledge externalities and systems on innovation.
The second section provides empirical studies that attempt to
measure these impacts. The final section considers future
challenges to regional economic development policy in the face of
economic integration and globalization.
Scholars in the science and technology field have not collectively
questioned, much less proposed, an agenda for policy makers. Now is
an appropriate time for such an undertaking. First, there is a
growing belief that the U.S. national research and development
system, like that of many industrial nations, is changing due to
global competitive pressures and advancements in information
technology and electronic commerce. Second, industry's R&D
relationship with the academic research community is changing not
only because of the global competition but also because of
alterations in the level of government support of fundamental
research. As a result, policy makers will need to rethink their
approaches to science and technology issues. This volume is a
collection of essays by scholars about innovative policy in the
knowledge-based economy. By knowledge-based economy we mean one for
which economic growth is based on the creation, distribution, and
use of technology. As such, innovation policy in such an economy
must enhance the creation, distribution, and use of knowledge that
leads to the creation, distribution, and use of technology. This
volume considers elements of an innovation policy: innovation
policy and academic research, innovation policy in electronic
commerce, and innovation policy and globalization issues.
This book offers a geographic dimension to the study of innovation
and product commercialization. Building on the literature in
economics and geography, this book demonstrates that product
innovation clusters spatially in regions which provide
concentrations of the knowledge needed for the commercialization
process. The book develops a conceptual model which links the
location of new product innovations to the sources of these
knowledge inputs. The geographic concentration of this knowledge
fonns a technological infrastructure which promotes infonnation
transfers, and lowers the risks and the costs of engaging in
innovative activity. Empirical estimation confinns that the
location of product innovation is related to the underlying
technological infrastructure, and that the location of the
knowledge inputs are mutually reinforcing in defining a region's
competitive advantage. The book concludes by considering the policy
implications of these fmdings for both private finns and state
governments. This work is intended for academics, policy
practitioners and students in the fields of innovation and
technological change, geography and regional science, and economic
development. This work is part of a larger research effort to
understand why the location of innovative activity varies
spatially, specifically the externalities and increasing returns
which accrue to location. xi Acknowledgements This work has
benefitted greatly from discussions with friends and colleagues. I
wish to specifically note the contribution of Mark Kamlet, Wes
Cohen, Richard Florida, Zoltan Acs and David Audretsch. I would
like to thank Gail Cohen Shaivitz for her dedication in editing the
final manuscript."
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