An evolutionary approach to regional systems of innovation

This article examines how the birth and the development of regional systems of innovation are connected with economic selection and points to implications for regional-level policies. The research questions are explored using an evolutionary model, which emphasizes geographical spaces and production of intermediate goods. In particular, we are concerned with how cooperative behaviour of technology producers is affected by the need to protect technological secrecies and of being financially constrained by firms demanding innovative input. Based on the theoretical model, we provide an analysis using computer simulations. The primary findings are, first, that the model generates predictions suited for empirical research as to the way in which economic selection influences cooperative behavior of innovative actors. Second, we demonstrate how a region's entrepreneurial activity and growth can be controlled in a decentralized way by regions.