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In addressing the intersections between territory-based regional industrial development programs and the challenges faced by firms in the emerging information-based economy, a prerequisite for a more holistic approach to region-wide economic policy development and planning is a public-sector strategic outlook that itself is informed about economic, sectoral and strategic trends and which is built around an understanding of organizational learning. The requirement for public sector ‘know-how’ and ‘know-why’ deviates substantially from past practice wherein the knowledge of sectoral change and economic trends was embedded in separate programs created to provide services to firms. Absent from this model is a feedback loop which builds this understanding into policy making and program design.

The most common approach to sectoral programming, which involves linking sectoral problems with …