Innovation policy and strategic value for building a cross-border cluster in Denmark and Sweden

In a knowledge-based economy, the role of regions is regarded as very significant for creating and dispersing knowledge. Particularly, geographical clusters of firms in a single sub-national region and cross-border regions may contribute to transmitting certain kinds of knowledge between and among firms. In addition, markets prefer to favor specialized firms with a coherent body of knowledge when knowledge creation and the use of new knowledge become increasingly important for maintaining and improving a firm’s competitiveness. This means that regional policy makers may not interfere directly with markets and firms when the process of globalization pushes national economies into a world of learning and innovation because the institutional framework for market exchange favors knowledge exchange in a globalizing economic system. This paper argues how a cross-border cluster in the Öresund region between Denmark and Sweden has been created, and which strategies it focuses on in order to strengthen its competitiveness and to generate a further development that aims to become a global innovative cluster. Moreover, it discuses whether the Nordic cross-border cluster, the Medicon Valley is a unique approach in the EU context or not. Finally, it argues how it has created technology innovation as well as contributed to the regional economic growth.