Globalization, Innovation, and Regional Development

Abstract

Contemporary theoretical and empirical analysis of globalization and regionalization have remained relatively separate from each other: globalization is assumed precisely to transcend nation-state and region while industrial districts are presumed to be relatively self-contained. In contrast to these views, this paper examines the changing dynamics and new reciprocal interdependence of regional and innovation networks in Silicon Valley: integration with global networks has become essential to the long-term viability of regional innovation processes within the infamous region. The paper also summarizes how structural transformations have led to a new understanding of internationalization, transnationalization, and globalization in the world economy, and describes the problems with prevailing state-led counter movements to these processes. It then introduces a new model of problem-solving growth in a context of globalization, and suggests the need for the facilitative state whose role will be a new form of interstitial participation.

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