Technological change at the regional level: the role of location, firm structure, and strategy

Because of the increasing globalisation of the economy and reinforced competition, technological change has become an important factor in the restructuring process and in the competitive position of firms and regions. In this paper the author investigates to what extent the innovation process is differentiated across space and in particular how this process is shaped by the locational conditions as well as by the structures and strategies of firms in selected regions. To develop a framework for the analysis, contrasting views about the innovation process at the regional level are presented. In the traditional linear innovation model (product-cycle theory and innovation diffusion) relevant locational factors are stressed and an hierarchical pattern of innovation in space is arrived at. More recent approaches such as the evolutionary and network theories point to the relevance of historically evolved firm structures and strategies. The analysis of the Austrian case demonstrates that each of these models has a certain relevance. -from Author