The document discusses the challenges facing the European Union in developing growth policies for its 27 member countries in the modern knowledge economy. It argues that traditional industrial policies focused on subsidies and grants will not be effective, and that modern growth policies require more collaboration between firms, governments, and universities. However, establishing these collaboration policies is difficult because the different organizations have different social capital in the form of norms, networks, and values. The document proposes measures at the EU, national, and regional levels to help overcome these obstacles and better coordinate growth policies across levels of governance for the knowledge economy.

1. A European Growth Policy for Twenty-seven Countries? Prospects and Problems for a Diversified Union Hans Westlund Professor in Regional Planning Royal Institute of Technology, Stockholm, Sweden Professor in Entrepreneurship Jönköping International Business School, Jönköping, Sweden

4. Why? “ We all know what we need to do, but we don’t know how to win elections after we have done it ” Jean-Claude Juncker Prime Minister of Luxemburg But this is only partly true…

8. Some key attributes of the knowledge and industrial societies and of the mercantilist era of the pre-industrial society Dirigist From hands-off to firm subsidies R&D, innovation & cluster policies Industrial and regional policies Agricultural region, market town Industrial town Metropolitan region Central spatial units Waterways and ports Land transportation systems Digital nets, social infrastructure, airports, roads, rail Infrastructure Patriarchal Emerging emancipation Growing equality Gender relations Vertical Vertical Horizontal, cooperative Management principles Landowners Capitalists The individuals Owners of decisive production factor Increase muscle power through population growth, organize trade Use of non-muscle power, division of labor Application of knowledge Central principle(s) Autocracy /oligarchy Nation-state democracy “ Supra-state” organizations increase in importance Polity Mainly local Mainly national Global Extent of markets Land and trading assets Physical capital, transportation Labor with knowledge and information, intellectual property Key assets / production factors Mercantilist era Industrial society Knowledge society Attribute

13. The traditional activity of the three organization types, O, and the activities expected by modern growth policies (o) ” What can I get from the others? What can I offer them?” O (o) (o) Product development and production for profit (o) O (o) Public infrastructure and service (o) (o) O Education & Research Firm Government University Activity Type of organization

23. The role of universities in regional development has just recently become a subject of European growth policies In the U.S. “…the idea that universities should have a regional function took firm root from the beginning” (Nevins 1962 p. 23) “ Colleges and universities have historically been sources of community boosterism and regional pride” (Feller 1999 p. 79)