Economics and Value of Information Systems


Today, the most technologically advanced economies have utilised knowledge as a key factor in production by developinginitiatives that encourage continuous innovation for sustainable growth. However, the fruits of innovation are dependent onregional contextual factors that go beyond innovation per se. Regions that have successfully created and leveraged theirinnovation capacities have leveraged their favourable social contexts to support their growth. In this exploratory study, theauthor reviewed literature to define the knowledge economy for empirical analysis. He further analysed economic data onU.S. metropolitan regions from 2003 to 2008 to provide evidence in support of this argument. The findings suggest thatindustry innovation measures alone are not significant predictors of economic growth. The author discusses these findingstheoretically and proposes policy implications.