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Lessons for a Policy Maker From Real-Life Self-Discovery in Economies With Weak Institutions
Chapter 10 presents several examples of real-life smart spacialization processes in middle-income economies (such as Russia, Israel, Argentina) with a significant knowledge base but weak institutions. These cases are framed within a three-stage model, which explains growt and structural changes from a first-mover problem tot he issue of collective action or regional custer coordination problem to the critical mass problem, or how to acquire or build a bundle of highly specialized and interrelated institutions. The examples show that regional development is usually a by-product of the national or global success of the private first-movers, but the key challenge is around their clustering. The models and the examples show that the policy agenda for advanced and less-developed regions must be designed and implemented differently.