Entrepreneurship, Innovation and Networks: Lessons for Regional Development Policy

Abstract

Innovation is commonly acknowledged\rto be a principal element in economic\rgrowth and competitiveness (Capello\rand Nijkamp, 2009; Harris, 2011).\rEntrepreneurship is also a key source\rof such growth (Audretsch et al. 2006).\rThere is a growing school of thought\rthat the networks facilitating flows of\rknowledge within and across regions\rare an important underpinning factor\r(Huggins and Izushi, 2007). Furthermore,\rregions are increasingly considered to be\rimportant foci of economic development\rand organisation in a globalised economy\r(Malecki, 2007; Fritsch and Mueller,\r2004). The ability of regions to gain from\rthe positive effects of entrepreneurship\ris likely to depend on their capability to\rturn knowledge into regional innovation\r(Audretsch and Keilbach, 2008). The\rinnovation systems literature, especially\rthe regional variety, highlights the flow\rof knowledge across organisations as\ra crucial factor for effective innovation\r(Cooke et al. 2011).\rThis article focuses on those three\rcontemporary determinants of\rdevelopment at the regional level:\rentrepreneurship; innovation and\rnetworks. Drawing on examples from\rSilicon Valley; Taiwan and Finland,\rit is argued that an open networked\renvironment, built upon global knowledge\rsearch, is central to successful innovation\rand entrepreneurship, and subsequently\rregional competitiveness. In particular,\rit contrasts the open model of economic\rdevelopment adopted by Taiwan,\respecially the activities of its diaspora,\rand the more closed model associated\rformerly with Finland. Also, it shows\rhow the enduring success of Silicon\rValley has occurred through processes of\rnetworked connectivity and recombinant\rinnovation.