The Territorial Dimension of the Knowledge Economy

Abstract

Cities are the core of the far-reaching sectoral transformation of the national and international economy into the model of the “knowledge economy,” and the competitive advantage of cities and regions is determined by a faster adoption of innovation. This article considers the relationships between the changes in the spatial structure and the transition to the knowledge economy, as innovation affects the structure of the territory at the regional, national, and international level, but also how territorial structure and policies affect the patterns of innovation. It first illustrates the differences between the related concepts of information, knowledge, and learning economy. Then it defines the systemic and interactive nature of the process of knowledge creation and illustrates the methodology of territorial knowledge management. That highlights how spatial planning may affect the innovation potential of a region and the differences with respect to the traditional approach in industrial and innovation policies.