This article examines how the birth and the development of regional systems of innovation are connected with economic selection and points to implications for regional-level policies. The research questions are explored using an evolutionary model, which emphasises geographical spaces and production of intermediate goods. In particular we are concerned with how cooperative behaviour of technology producers is a¤ected by the need to protect technological secrecies and of being …nancially constrained by …rms demanding innovative input. Based on the theoretical model, we provide an analysis using computer simulations. The primary …ndings are, …rstly, that the model generates predictions suited for empirical research on how economic selection in ‡uences cooperative behaviour of innovative actors. Secondly, we demonstrate how a region's entrepreneurial activity and growth can be controlled in a decentralised way by regions

This article examines how the birth and the development of regional systems of innovation are connected with economic selection and points to implications for regional-level policies. The research questions are explored using an evolutionary model, which emphasises geographical spaces and production of intermediate goods. In particular we are concerned with how cooperative behaviour of technology producers is a¤ected by the need to protect technological secrecies and of being …nancially constrained by …rms demanding innovative input. Based on the theoretical model, we provide an analysis using computer simulations. The primary …ndings are, …rstly, that the model generates predictions suited for empirical research on how economic selection in ‡uences cooperative behaviour of innovative actors. Secondly, we demonstrate how a region's entrepreneurial activity and growth can be controlled in a decentralised way by regions