While a market economy seeks equilibrium, a knowledge-based economy may upset this tendency towards stabilization by adding the feedback of globalization. The interaction among the three subdynamics of economic exchange, technological innovation, and institutional control can be captured with a...

This study investigates how local milieus foster innovation success of firms. We complement the common practice of linking firm performance indicators to regional characteristics with survey evidence on the perceived importance of locational factors. While the former approach assumes that...