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Regions, Absorptive Capacity and Strategic Coupling with High-Tech TNCs

Lessons from India and China

Jan Vang is Associate Professor, Copenhagen Institute of Technology, Lautrupvang 15 2750 Ballerup, Denmark; and at the Centre for Innovation, Research and Competence in the Learning Economy, Stora Algatan 4, 223 50 LUND, Sweden, e-mail: jan.vang-lauridsen{at}circle.lu.se

Bjørn Asheim

Bjørn Asheim is Professor, Department of Social and Economic Geography, Lund University, Sölvegatan 12, 223 62 Lund, Sweden.

This article is concerned with what conditions successful development of high-tech regions in developing countries. It argues that the recent regional turn in development studies should be welcomed as regions play an increasingly important role for high-tech industries in developed and developing countries. While acknowledging the insights stemming from the regional turn the article nevertheless argues the need to extent the theoretical perspectives and to apply a regional innovation systems (RIS) approach. RIS has its strength in theoretically linking regions and high-tech industries. This article contextualises RIS to the situations characterising developing countries. Special attention is paid to how regions in developing countries can engage in a strategic coupling with high-tech TNCs. The importance of RIS as an analytical approach and tool for policy prescription is illustrated by two Asian high-tech cases, namely Bangalore's IT RIS in India and Shanghai's high-tech RIS in China.

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