Abstract

Nowadays, the competitive advantage is derived from the creation and application of knowledge through learning. Furthermore, the knowledge economy is believed to have a distinctive geography - regional clusters of innovation, technology, and human and social capital, as illustrated by Silicon Valley or Cambridgeshire in the UK. Regional policy in the EU has changed accordingly in the recent years. The paper points out the reasons that regional economics should occupy a position at the core of economics. Also, the paper presents the advantages and disadvantages the countries in transition have in meeting the requirements of regional development and describes the steps needed for developing the regional technological infrastructure.

Key words: regional development, transition, learning regions

JEL Classification: R10