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This is the first study that attempts to assess the regional economic impacts of the European Institute of Innovation and Technology (EIT) investments in a spatially explicit macroeconomic model, which allows us to take into account all key direct, indirect and spatial spillover effects of EIT investments via inter-regional trade and investment linkages and a spatial diffusion of technology via an endogenously determined global knowledge frontier with endogenous growth engines driven by investments in knowledge and human capital. Our simulation results of highly detailed EIT expenditure data suggest that, besides sizable direct effects in those regions that receive the EIT investment support, there are also significant spatial spillover effects to other (non-supported) EU regions. Taking into account all key indirect and spatial spillover effects is a particular strength of the adopted spatial general equilibrium methodology; our results suggest that they are important indeed and need to be taken into account when assessing the impacts of EIT investment policies on regional economies.

This report analyses the feasibility of the European Institute of Technology (EIT) as proposed by the European Commission in the draft Regulation of November 2006 by positioning it in the context of existing universit ies, research establishments and institutions and programmes for supporting innovation and technology transfer in Europe. Because the EIT has been put forward as an important contribution to close the gap in growth and innovation with the US, the analysis draws extensively on the situation in the US and, too a much lesser degree, in Asia. As the conclusion is that the impact of this particular form of the EIT would suffer from too many constraints, the report puts forward in the concluding chapter an alternative, coined a cluster EIT consisting of multiple European Institutes of Technology in Fields X, Y, Z, etc. It proposes as well that the European Parliament advocates the creation of a European Innovation Fund.

Throughout the history of the political economy of innovation, the patterns of territory, competition/co-operation, knowledge production/distribution, and public action have been constantly re-organised. The trends in Europe, since the post-war period, are a good example of this. The political and economic space created by the EU and pan-European integration process has been modifying the context for innovation throughout these decades. The current paper examines these historical transformations, and provides a critical picture of the context in which innovative European firms operate today. In so doing, the study acknowledges that changes in the 'real world' of politics and economics are accompanied by changes in the 'cognitive framework', both in terms of how innovation is understood and how public action is designed accordingly. Consequently, it is the main claim of this paper that the political economy of innovation is as much the result of the constraints and dynamics imposed by the globalisation/acceleration of the innovation process, as it is the result of an active socio-political construction through the re-alignment of public actions following a new interpretative and institutionally negotiated framework. The conclusions identify open research lines.

The Queensland Institute of Technology caters for more than seven thousand five hundred students, enrolled in a wide range of vocational studies. Over one thousand three hundred academic, administrative, technical and ancillary staff are employed (both full-time and part-time) to provide an integrated service for these students and the general community. Although the Institute was granted autonomy in 1971, it is still financially dependent on, and accountable to, the community for the resources that it consumes. The total allocation of resources is determined by educational boards and commissions operating within government guidelines. How these resources are used to support our educational commitments is the responsibility of the Institute Council. The Council is the governing body of the Institute, and it has well defined powers granted by an Act of Parliament. It includes a number of community leaders who are appointed by the Minister for Education, four staff who are elected by staff of the Institute and two students who are elected by the student body. Council's role is to determine policy and keep it under review. Although it may appear quite remote, Council attempts to keep in touch with the mainstream of Institute Iife and it is interested in staff and students, not simply dollars and cents. The Institute's management function is delegated either to me or to certain elements constituted within the academic organisation. This organisation is based on the creation of professional schools and departments, presently in the fields of Applied Science, Built Environment, Business Studies, Engineering, Health Science, Law and Librarianship. These schools have a large measure of autonomy to conduct their academic affairs within policies laid down by Council. The Head of School is responsible to me for the administration of the School. Council has however, created for each School what is known as an Academic Board which consists of ex-officio members, elected staff and students, and in some cases, appointees from outside the Institute. The Head of School acts as Chairman of each of these Boards, which are very influential in determining such things as the design of courses, methods of assessment, review of examination results and the progression of individual students. Although considerable emphasis is placed on teaching excellence, many of the staff are engaged on a variety of research projects a number of which are funded under research grants or commissioned by local industry. Staff are encouraged to be innovative in their approach to teaching and learning and there is a high degree of staff participation in the academic administration of the Institute. The academic structure of the Institute is supported by many diverse groups of technical, administrative and ancillary staff. These staff are engaged in wide ranging duties in all sections of the Institute. The aim of this booklet is to provide some general information on the various sections of the Institute and their operations. A.M. FRASER Director