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Old industrial regions in many cases suffer from a predominance of basic and traditional industries as well as a lack of modern sectors and of innovation. Often we find this type of region oriented to traditional sectors and technology paths. The development of new sectors such as software might help to overcome such problems and contribute to diversification and a better innovation performance of such regions. In this context, we examine to what extent the different socioeconomic and institutional background of old industrial regions has an impact on firms’ innovation performance and knowledge sourcing in the new sector. For this purpose we compare software companies in the Czech region of Moravia-Silesia and in the Austrian region of Upper Austria. Both are regions with a considerable industrial tradition but with a quite different historical and institutional background. Whereas Moravia-Silesia region is a part of Czechia – a transformed country with a state socialism and central planning background – Upper Austria is a relatively wealthy region within an advanced market economy with a social partnership background. In this paper we investigate to what extent software firms in these two regions differ in their innovation activities and knowledge-sourcing patterns and how this is related to the institutional background and characteristics of their respective regional innovation systems.

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Urban shrinkage has become a common pathway (not only) in post-socialist cities, which represents new challenges for traditionally growth-oriented spatial planning. Though in the post-socialist area, the situation is even worse due to prevailing weak planning culture and resulting uncoordinated development. The case of the city of Ostrava illustrates how the problem of (in)efficient infrastructure operation, and maintenance, in already fragmented urban structure is exacerbated by the growing size of urban area (through low-intensity land-use) in combination with declining size of population (due to high rate of outmigration). Shrinkage, however, is, on the intra-urban level, spatially differentiated. Population, paradoxically, most intensively declines in the least financially demanding land-uses and grows in the most expensive land-uses for public administration. As population and urban structure development prove to have strong inertia, this land-use development constitutes a great challenge for a city’s future sustainability. The main objective of the paper is to explore the nexus between change in population density patterns in relation to urban shrinkage, and sustainability of public finance.