TERRITORIAL TRANSFER of KNOWLEDGE in TERMS of CREATIVE DESTRUCTION

Abstract

'Creative destruction' is one of the most important analytical tools, taking into consideration both the economic and sociological characteristics of capitalist society. According to Schumpeter, in the long term, evolution gives rise to economic development resulting from batches of innovative solutions, leading to improvements in the standard of living. The innovation activity of firms is based on supply-side factors, hence it is large enterprises that excel in innovation since they strive to achieve a monopoly market position and above-average profits. Schumpeter attempts to combine two elements: the spread of monopolies and the continuation of economic development, both occurring through innovation, which is far more important than price competition. The Schumpeterian 'creative destruction' permeates the main aspects of macroeconomic activity, not only in the long term, but also in the area of economic fluctuations, structural changes, or the functioning of markets. As a result, it becomes a factor determining changes in the economic order. The purpose of this paper is to analyse the role of territories in the process of creating and using knowledge and its impact on the economic efficiency of the companies which function within their boundaries. Regional cooperation increases the involvement of business entities in innovation activities, which translates into higher competitiveness of firms. Moreover, the awareness of the necessity of cooperation and use of innovation capital tends to grow.