How Science and Technology Parks Grow or Fail

A decade ago Knowledge Valley Theory explained the development of SMEs in terms of provoking innovation by knowledge sharing. In this paper the KVT model will be applied to the wider tech entrepreneurship ecosystem, in particular Science and Technology Parks (STPs). In developing KVT theory further, two new ideas will be incorporated; firstly, Nobel laureate Stiglitz showed that corporate structure determines how decisions are made and thus determines profitability. Secondly is the idea that adopting innovations uncritically can be very expensive, in fact the gain from adopting a useful innovation is much less than the concomitant loss experienced when a poor-fit innovation is mistakenly adopted.