Abstract

Building a ‘knowledge economy’ is seen as a policy for many governments of old industrial regions. For example increasing the knowledge and technology transfer (KTT) from a region’s research establishments is seen as a strategy to overcome productivity problems. However, the models on which most of these strategies are based fall short in accounting for some factors which affect knowledge exchange in a particular context. This paper addresses the notions of proximity as a factor in KTT and offers alternative factors drawing on the recent analysis of Amin & Cohendet (2004). It concluded that many policymakers may be in danger of applying the lessons of previous models without first understanding the dynamics of their own region.