Building Regional Competitive AdvantageLessons from U.S. Experience for Poland and Other New EU Member States

Dr. Edward F. StuartProfessor of Economics

Introductory Remarks

By way of an apology

A disclaimer

A new intellectual “law”

Stuart’s Law of Symmetric Ignorance

Static Version

Dynamic Version

Three Eras of Regional Policy

Industrial Recruitment

Cost Reduction/Deregulation

Clusters of Creative Class

New Economy Structures

Importance of innovation and new products

Regional competitiveness based on growth of new firms

Innovation dependent on creative workers

Nature of the Creative Class

Horizontal career paths

Weak tie social relationships

Short job tenure

Individual risk bearing

New Class Structure

Creative Class

Working Class

Service Class

Agricultural Class

Regional Competitive Advantages

Talent

Technology

Tolerance

Some Examples

Regional Losers Pittsburgh, Pennsylvania St. Louis, Missouri

Regional Winners Austin, Texas Seattle, Washington Boston, Massachusetts San Francisco/San Jose, California

Possible Lessons

Importance of universities

Importance of diverse cities

Importance of entrepreneurial cultural