THE REGIONAL INNOVATION SYSTEM IN BADEN-WURTTEMBERG

Baden-Wurttemberg has one of Germany's strongest regional economies. The robustness of the economic system rests on three key elements: dynamic vertical and horizontal networks between firms; a rich institutional system of vocational training; and substantial public and private investment in R&D, innovation and technology transfer. The paper analyses each of these in depth. It is concluded that networks of innovative economic activity between business and government are of key importance to the development process. Learning, monitoring and evaluation are crucial to the enhancement of the Baden-Wurttemberg innovation networks and lessons, suitably adapted, can be learned for application to less developed economies. Currently, the Land government and other key actors are engaged in a new round of learning which may lead to the further improvement of a system assailed by problems of global competition.