Articles

Are Science Valleys and Clusters Panacea for a Knowledge Economy? An Investigation on Regional Innovation System (RIS)- Concepts, Theory and Empirical analysis

Munshi Naser Ibne Afzal

Abstract

This research elucidates the concept of regional innovation systems (RIS). It argues that RIS can be a platform to apply classroom innovation ideas into practical context. Key definitions are given and distinctions drawn between national and regional innovation systems. Then, by suggesting to a number of important variables portraying innovation such as education, knowledge transfer, linkage and communications, regulatory quality, cost of doing business, trade openness, R&D expenditure and high-tech export for twenty emerging and developed knowledge based economies from Asia-Pacific, Europe and Latin America are differentiate. We empirically study these features of innovative ability in our sample regions by applying nonparametric robust partial frontier order-m approach in cross-section data analysis collected from the WDI and WCY-2011 dataset for the period 2011. The empirical results highlight that South Korea, Singapore and Malaysia are the frontier region or best practice nations and follower region can emulate the best practice nations by learning their policy implications while building up a successful regional innovation system. Moreover, our study reveals that techno or science valleys and high-tech clusters are one of the panacea for a regional and thus overall economic development.

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