Regional strategies to sustain radical innovation: Internet software
The varieties of capitalism approach focuses on explaining variation in industry specialization at the national level. However, much evidence from the field of economic geography suggests that industries tend to cluster within regional economies, and empirical evidence suggests that there are regions within coordinated market economies that have sustained clusters of radically innovative companies. Focusing on the successful wireless Internet and software cluster in Stockholm, Sweden, this chapter explores mechanisms by which alternative patterns of economic coordination may develop. The analysis focuses on the role of large companies, particularly in industries in which technical interdependencies between firms is strong in creating patterns of economic coordination that run counter to national models.
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