The Effectiveness of Industrial Parks in the Regional Economy

ABSTRACT The article discussed the role of knowledge, innovation, and human capital in the development of regional competitiveness. It is argued that although regions can compete on the basis of low taxes and wages, a higher level of competition can be achieved by implementing knowledge-based policies that promote entrepreneurship and economic development. By considering the World Competitiveness Index of Regions, we can see the extent to which knowledge is translated into economic value and higher standards of living. Once successful innovative industries begin to develop in a region, the process reinforces the prospects of an agglomeration economy and attracts other knowledge-based businesses. Thus, in the modern world, a central role is played by the formalization of relations between regions with the most innovative economies.