REGIONAL SYSTEMS OF INNOVATION AND REGIONAL POLICY IN EUROPE By KORRES, G. M.*

European integration leads to convergence as well as divergence between the countries included in the integration process. For example, increased technological spillovers lead to convergence of the production processes used in the EU-countries, whereas specialization leads to divergence on production and sectoral distribution. This paper uses intercountry data of European member states, and also it’s attempting to analyze the empirical patterns of convergence and divergence. Our aim is to address the problem of measuring how much of the convergence that we observe is due to convergence in technology. We will review the European model of regional development and the knowledge economy trying to examine and to measure the implications of innovation and technical change, in order to reach in some policy implications and in safe conclusions regarding the convergence and the catch-up process of European member states. By comparing these patterns with the theoretical expectations, the outcomes shed new light on the theories of regional policy and convergence in European Union. JEL classification: R11, O31