The Local Environment as a Supportive Operator in Innovation Diffusion

Spatial pattems of technology diffusion determine the capacity of regions and cities to compete in a global market. It is therefore, important to know in what way the local environment can contribute to the attraction of new technology to business locations and what factors differentiate in the support of the local environment in this process. The article wil1 take its starting point in the knowledge capacity of cities. It wil1 then discuss conventional theory on spatial diffusion and review some merits of this theory. Furthermore. a focused approach wil1 be introduced by adopting a communication perspective on technology diffusion. This perspective allows for an exploration of potential barriers (and bridges) in the diffusion process. The article wil1 then present new empirical results on the supportive role of the local environment in technology diffusion on the basis of a large sample of innovative companies in various European cities. Particular attention wil1 be given to the role of the local institutes of higher‘ education and research. This article wil1 conclude with some policy recommendations on an improved use of the local environment in advancing the competitiveness of innovative companies.