Center for Economic Development
Regional competitive advantages can be created by deploying processes, product innovations, and/or improving the performance of companies. The concept of increasing returns to scale due to technology advances and the modern growth theory suggest that knowledge spillovers are passed through networks of people. Dense co-location of companies different from industries in large urban areas creates an environment for deploying new knowledge and increasing productivity of companies. Although the presence of mature industries is more often considered to be a burden than a resource of regional growth, a fair judgment about their true influence on economic development can be made if we understand the role of these industries in regional economies, their impact on technology innovation, and their potential to create regional competitive advantage.
Lendel, Iryna and Kim, Songpyo, "Patenting by Cleveland's Inventors: Critical Areas and Knowledge Flows" (2008). Urban Publications. 0 1 2 3 225.