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Thisbookisbasedonpaperspresentedataninternationalworkshoporganisedin Jonkoping,Sweden,inJune2005tocelebratethe60thbirthdayofProfessorBorje .. Johansson-adearfriendandadmiredcolleagueofours. Thebookprovidesa limited sample of Borje Johansson's broad ranging research interests. In this volume, some of his friends and colleagues have contributed chapters on the themeof"Innovation,DynamicRegions,andRegionalDynamics". Thisisa?eld ofresearchinwhichBorjeJohanssonhasbeenagreatinspirationtousall,andto whichhehim-selfhascontributedwithcharacteristicenthusiasmandinsightaspart ofhisprodigiousoutput. TheworkshopandthecreationofthisbookweresponsoredbytheAlfaSavings BankFoundationinJonkoping,JonkopingInternationalBusinessSchool,andthe SchoolofPublicPolicy,GeorgeMasonUniversity,Fairfax,VA. Wethankthemfor theirgeneroussupport. TheauthorsandtheeditorsthankKerstinFerroukhiforall her efforts to organise the workshop and Ulla Forslund-Johansson and Uma Kelekarforworkingtirelesslytogetthepapersrefereedandrevised,toputtogether multipleeditsofthisbookandforpreparingitforthepublisher. Itwouldhavebeen impossibletoproducethisbookwithouttheirdedicatedwork. Sweden CharlieKarlsson Sweden AkeE.Andersson UK PaulCheshire USA RogerRStough v Contents 1 Innovation,DynamicRegionsandRegionalDynamics...1 ? CharlieKarlsson,AkeE. Andersson,PaulCheshire,andR. R. Stough 2 ThePureTheoryofSpatialMarkets...35 MartinBeckmann 3 Smith-RicardoSpecializationinthePresenceofTiringEffects...47 TonuPuu 4 DynamicsofInnovationFieldswithEndogenousHeterogeneity ofPeople ...59 MasahisaFujita 5 EconomicsofCreativity ...79 ? AkeE. Andersson 6 SimpleMemesandComplexCulturalDynamics ...97 DavidBattenandRogerBradbury 7 TheFashioningofDynamicCompetitiveAdvantageof EntrepreneurialCities:RoleofSocialandPolitical Entrepreneurship ...107 LataChatterjeeandT. R. Lakshmanan 8 TheSocialCapitalofRegionalDynamics:APolicyPerspective...121 HansWestlund 9 HiddenOrderinTraf?cFlowsUsingApproximateEntropy: AnIllustration...143 KingsleyHaynes,RajendraKulkarni,andRogerStough vii viii Contents 10 RegionalInput-OutputwithEndogenousInternalandExternal NetworkFlows...161 JohnR. RoyandGeoffreyJ. D. Hewings 11 RegionalUnemploymentandWelfareEffectsoftheEU TransportPolicies:RecentResultsfromanAppliedGeneral EquilibriumModel ...177 ArtemKorzhenevychandJohannesBrocker 12 InfrastructureProductivitywithaLongPersistentEffect...197 TsukaiMakotoandKobayashiKiyoshi 13 ScienceParksandLocalKnowledgeCreation:AConceptual ApproachandanEmpiricalAnalysisinTwoItalianRealities ...221 RobertaCapelloandAndreaMorrison 14 TheLowParticipationofUrbanMigrantEntrepreneurs: ReasonsandPerceptionsofWeakInstitutionalEmbeddedness...247 EnnoMasurelandPeterNijkamp 15 TheLocationofIndustryR&DandtheLocationofUniversity R&D:HowAreTheyRelated?...267 CharlieKarlssonandMartinAndersson 16 GrowingUrbanGDPorAttractingPeople?DifferentCauses, DifferentConsequences ...291 PaulCheshireandStefanoMagrini 17 Urban-RuralDevelopmentinSweden...317 JohanKlaessonandLarsPettersson 18 Patents,PatentCitationsandtheGeographyofKnowledge SpilloversinEurope...331 ManfredMFischer,ThomasScherngell,andEvaJansenberger 19 Co-authorshipNetworksinDevelopmentofSolarCellTechnology: InternationalandRegionalKnowledgeInteraction ...347 KatarinaLarsen 20 Off-shoringofWorkandLondon'sSustainabilityasan InternationalFinancialCentre ...373 IanGordon,ColinHaslam,PhilipMcCannandBrianScott-Quinn 21 TheGenesisandEvolutionoftheStockholmMusicCluster ...385 PontusBraunerhjelm Index ...409 Contributors ? AkeE. Andersson ?JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, Gjuterigatan5,55318Jonkoping,Sweden,Ake. Andersson@ihh. hj. se MartinAndersson ? JonkopingInternationalBusinessSchool,JonkopingUniversity,Hogskoleomradet, ...Gjuterigatan5,55318Jonkoping,Sweden,Martin. Andersson@ihh. hj. se DavidBatten The Temaplan Group and CSIRO, CSIRO Marine and Atmospheric Research, PrivateBag1,Aspendale,Victoria3195,Melbourne,Australia David. Batten@csiro. au MartinBeckmann EconomicsDepartment,BrownUniversity,64Waterman StreetProvidence,RI 02912,USA,Lauren_Gallo@brown. edu RogerBradbury TjurungaandtheAustralianNationalUniversity,9ScottStreet,Narrabundah,ACT 2604,Canberra,Australia PontusBraunerhjelm DepartmentofEconomics,TheRoyalInstituteofTechnology,DrottningKristinas Vag30,10044Stockholm,Sweden,pontusb@infra. kth. se JohannesBrocker Institute for Regional Research, University of Kiel, Olshausenstrasse 40, 24098 Kiel,Germany RobertaCapello DepartmentofManagement,EconomicsandIndustrialEngineering,Politecnico diMilano,ViaGiuseppeColombo40,20133Milano,Italy Roberta. Capello@polimi.