| Abstract: | It is proposed that developments in the commercialization of science and technology in "new economy" sectors such as telecommunications, information technology and biotechnology presage a new kind of systemic innovation. This is both regionalized and localized around hubs of knowledge-driven entrepreneurship, and subject to extremely rapid exploitation in consequence of search and invest activities of corporate venturing arms of large firms, venture capitalists and business angels. The millennium meltdown of Internet stocks has brought caution but also learning gains to new economy investors, but the underlying model remains robust. Unlike the typical European regional innovation system, which is supported by extensive public sector enterprise support activities, "New Economy Innovation Systems" are far less dependent on public enterprise support intervention. Learning this new, rapid mode of exploitation is essential if commercialization gaps between Europe and North America are to be reduced. The key questions concern the appropriate role of public innovation support, the commercialization advantages and limits of venture capital, and the prospects for the new approach in less-favoured regional settings. |
