The purpose of this chapter was to present a state-of-the-art review and a critical assessment of current research about RIS with special focus on their role in small and medium-sized regions. We were particularly interested in finding out what policy conclusions could be drawn for regional innovation policies in small and medium-sized regions. The results are partly disappointing. Current research on RIS suffers from a number of deficiencies. The theoretical base is not well developed and much of what has been written lacks the clarity that is necessary to really evaluate the research and formulate strong policy conclusions. It is inadequate to define a RIS as all those factors that influence the innovation process. Such definitions are not operational. For this reason, more and better research on RIS is necessary to be able to formulate guidelines for regional innovation policies, in particular, in small and medium-sized regions. However, a number of conclusions can be drawn in the light of the review and assessment. Firstly, it seems clear that for regional innovation policies to be meaningful the regions in question must already have either one or several clusters of SMEs or one or several larger leading companies surrounded by clusters of suppliers and/or customers. Secondly, since most small and medium-sized regions do not have public research institutions, developing strong links to research universities in other regions are of paramount importance. Thirdly, for those small and medium-sized regions that have one or several institutions of higher education it is important to take special measures to adapt the educational profile to fit with the needs of the regional innovation networks. Fourthly, problems to recruit qualified personnel seem to hamper the regional innovation systems in many small and medium-sized regions. Special measures may often be needed to facilitate the recruitment of qualified personnel. Fifthly, since RIS to a large extent function via collective learning it is necessary to improve existing arenas and meeting places and also create new arenas and meeting places. Sixthly, because many innovations are best realized within new firms it is vital for the regional innovation systems to offer broad support to new entrepreneurial ventures. Seventhly, as conditions in each region have unique traits, it is necessary to base all regional innovation policies upon careful studies of the existing regional innovation systems, the way they function as well as their weaknesses. Eighthly, administrative and functional regions normally do not coincide. Since the functional region is the relevant region from an economic point of view, it is therefore of great importance to see to it that regional innovation policies are formulated and executed for functional regions.
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