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This book provides an account of work in the Schumpeterian and evolutionary tradition of industrial dynamics and the evolution of industries. It is shown that over time industries evolve and change their structure. In this dynamic process, change is affected and sometimes constraint by many factors, including knowledge and technologies, the capabilities and incentives of actors, new products and processes, and institutions.

This book provides a account of work in the Schumpeterian and evolutionary tradition of industrial dynamics and the evolution of industries. It is shown that over time industries evolve and change their structure. In this dynamic process change is affected and sometimes constraint by many factors: knowledge and technologies, the capabilities and incentives of actors, new products and processes, and institutions. All these elements and their relations drive innovative activities and affect economic performance in an industry. Investigations into these complex phenomena show a deep interdependence between empirical work delivering a rich account of regularities and stylized facts in the structure of industries and their change, and theoretical analyses ranging from theoretical work to formal modeling.

Governments and regional authorities often express the belief that the key to prosperity and economic expansion is related to the ability of countries to sustain regional clusters of competitiveness and innovation. The book reviews the most important conceptual approaches to the analysis of the emergence, growth and evolution of clusters of innovation. Drawing from the different experiences of industrial districts and high-tech regions such as Silicon Valley, Boston's biotech region and Hsinchu-Taipei, the contributions in this book offer a broad interpretative framework and policy implications for the creations and strengthening of competitive clusters. Themes include: -The wide variety of existing clusters and the diversity on their emergence and growth q The international mobility of factors and demand linkages, -The role of different network types and the social setting, -The accumulation of capabilities on key large actors and the importance of spinoffs and new firm formation, -The role of different learning regimes and sectoral specificities, -The importance of social networks, labor mobility and face to face contacts as vehicles of knowledge spillovers, -Broad implications are drawn for the design of policies to encourage successful economic clusters in developed and developing clusters.