Varieties of Innovation Systems

emphasized at least a certain trend (if not pressure) towards liberalization of coordination even in those market economies previously organized in a different way (Deeg 2005; Hay 2005; Morgan et al. 2005; Streeck/Thelen 2005; Cerny et al. 2006; Deeg/Jackson 2007; Hall/Thelen 2009; Mahoney/Thelen 2010; Thelen 2010), the actually observable differences in the impact of the recent crisis raise more strongly than before the question of long-term sustainability in globalized capitalism, efficient structural models and comparative institutional advantages, not only, but especially when looking at the deficiencies of the financialized (neo-)liberal Anglo-Saxon model or of the state driven Mediterranean type of capitalism (Streeck 2010). Latest contributions and debates, not only in the field of political economy, vindicate in this connection for example the German coordinated market economy model, which is celebrated for its technological leadership in export intensive consumer durables and equipment goods, its innovative capacity and international competitiveness (The Economist 2010), revitalizing the varieties perspective and providing new impetus to deeply understand the roots of these distinct success stories.

Even stronger than before, in the context of the current crisis also the consequences of economic globalization on national market economies are debated, in which economic action is increasingly determined by boundless globalized markets, flows of trade, goods and communication, as well as internationalized competition (Giddens 1990; Hirst/Thompson 1996; Held et al. 1999; Robertson 2001; McMichael 2005). In this debate, there is a broad consensus that in contrast to the 1980s and 1990s, for firms in the developed industrial nations the reorganization of firm structures as well as the rationalization and flexibilization of production processes no longer stand in the focus of their entrepreneurial activities. Rather, it is now acknowledged that in a situation of global competition, it is of increasing importance for these firms to come up with marketable product, process and service innovations faster and faster (a.o. Archibugi et al. 1999; Streeck 2004; Archibugi/Iammarino 2010). The innovative ability of firms and, thus, whole national economies becomes the decisive factor for the competitiveness of firms in internationalized markets, giving those types of market economies competitive edges which provide adequate and efficient institutional environments to their economic actors to be innovative.

In the centre of these innovation activities stand processes of produc-ing and transferring knowledge and, thus, mutual learning. In the emer-gent "knowledge economy" (Cooke 2002), different forms of knowledge become quantitatively and qualitatively more and more important produc-tion factors, which is reflected by increasing knowledge related investments in R&D, education and software and is continuously pushed on by the proceeding expansion of information and communication technologies (Al-Laham 2003; Cooke et al. 2007; Godin 2006; Heidenreich 2002; 2003). It is, consequently, indispensible for firms and whole regional and national economies to efficiently create structures and mechanisms for transferring these different types of knowledge between different kinds of actors to enable successful learning and innovation processes, since it is the ability to learn which finally determines their sustainable development and economic success. It will be these structures and mechanisms of knowledge transfer in distinct institutional market economy environments that will be the main concern of this study, contributing with that to the deeper understanding of the institutional roots of distinct models of learning and innovation systems.

Guideline-Based Expert Interview as Research Method123

4.5 Selection of Experts as Units of Observation125

4.6 Evaluation Methods: Aggregation and Triangulation127

4.7 Quality Criteria and Analytical Generalization of the Results132

5. Germany-Knowledge Transfer Systems in a

Coordinated Economy137

5.1 The German Economy-Conserving Industrial Structures137

5.2 The Case of Baden-Württemberg144

5.2.1 Locating Baden-Württemberg in the German Context144

5.2.2 Structures and Mechanisms of Knowledge Transfer in

Baden-Württemberg: Six Governance Dimensions151

5.2.3 Summary.183

5.3 The Case of the Metropolitan Region Hannover Braunschweig

Göttingen Wolfsburg188

5.3.1 Locating the Metropolitan Region HBGW in the

German Context188

5.3.2 Structures and Mechanisms of Knowledge Transfer in the

Metropolitan Region HBGW: Six Governance Dimensions196

5.3.3 Summary230

5.4 Lessons from the German Case236



6. Spain-Knowledge Transfer Systems in a

Mediterranean Economy243

6.1 The Spanish Economy-Some Structural Facts.243

6.2 The Case of Catalonia250

6.2.1 Locating Catalonia in the Spanish Context250

6.2.2 Structures and Mechanisms of Knowledge Transfer in

Catalonia: Six Governance Dimensions256

6.2.3 Summary285

6.3 The Case of the Madrid Community292

6.3.1 Locating the Madrid Community in the Spanish Context292

6.3.2 Structures and Mechanisms of Knowledge Transfer the

Madrid Community: Six Governance Dimensions298

6.3.3 Summary327

6.4 Lessons from the Spanish Case332

7. UK-Knowledge Transfer Systems in a Liberal Market Economy340

7.1 The UK Economy-A Service Dominated Economy340

7.2 The East of England Case348

7.2.1 Locating the East of England in the UK Context348

7.2.2 Structures and Mechanisms of Knowledge Transfer in the

East of England: Six Governance Dimensions355

7.2.3 Summary382

7.3 The Greater London Case388

7.3.1 Locating the Greater London Region in the UK Context388

7.3.2 Structures and Mechanisms of Knowledge Transfer in

Greater London: Six Governance Dimensions395

7.3.3 Summary415

7.4 Lessons from the UK Case421

8. Conclusions430

8.1 Towards a Theory of Knowledge Transfer in Innovation Systems431

8.2 The Nature of Regional Variation in VoC440

8.3 Traditional Industrial vs. Metropolitan Knowledge Transfer

Settings446

8.4 Sectoral Foci as Drivers of Regional Variation450

8.5 Towards a Varieties-Centered Research Agenda on

Innovation and Knowledge Transfer453

8.6 Lessons for the VoC-Approach457

8.7 The Paths to Take-Policy Implications and Outlook459

Table Credits469

Figure Credits470

Bibliography473

Acknowledgements501

Index503