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Abstract A new model of technology management and regional innovation based on the principle of systems integration is presented. The principle of systems integration is manifested in the organisational capability of firms, individually and networked, to foster rapid technological change. The effect is a network or cluster of entrepreneurial firms in which design is decentralised within the enterprise and diffused amongst networked enterprises. The combination of entrepreneurial firms and inter‐firm networks is shown to foster a range of dynamic cluster processes that, in turn, underlie the growth of Silicon Valley and the unexpected resurgence of Boston's Route 128.
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