public organization, because it combined basic and applied research. On the otherhand, it did not propose any measures which would have complemented the DQPregimewith more marketable solutions.One might still ask, to what extend this peculiar infrastructure must be regarded as alocal recombination of national governance structures and thus whether it wouldproduce different outcomes elsewhere in Germany. A very close link betweenuniversity institutes and the local economy had indeed been established in 1989 inStuttgart, when the Centre for Innovative Technologies (ZFS) was founded. The ZFSis a very good example of collective action in the local economy, because it financesjoint projects of common concern for a number of local firms. As a foundation whichsigned a cooperative agreement with the University of Stuttgart, it coordinatesprojects which are carried out with the support of a number of specialized institutes,among them the IfW and ISW. These projects are financed by some firms incooperation with the Land government. Money can be obtained from the Land onlyif outcomes of general importance for economic performance of the Land areexpected, or if the project is of a ‘pre-competitive’ nature.The firms which have established this cooperation and form part of it are the biggestmachine tool firms of the local economy together with Bosch, Siemens, IBM,DaimlerChrysler and a few others. This again supports our perspective on Stuttgartas a networked firm model. While the above listed incentives for cooperationbetween public and private actors within local confines suggests that there exists avery special network of support institutions in Stuttgart, the only distinctive featurelies in the high sectoral specialization of these networks, not their generalorganizational structure. Another example may illustrate this: Among the instituteswhich cooperate in the ZFS is another university organization, the Institute for LaserTools (IFSW), which has specialized on the development and application of lasertechnique in industrial production. It is especially interested to diffuse thisknowledge in SMEs. Therefore it cooperates with specialized institutes in this fieldof innovation and chambers of commerce throughout the whole Land. As a result ofthese activities a Joint Council on Laser Technologies South West was founded.While the IFSW in Stuttgart coordinates the services of this Council, capacitiesoutside Baden-W├╝rttemberg are also involved, and specialized institutes from Hesseare incorporated into the Council. This network is financed by the Federal Ministryof Education and Research (BMB+F) as well as the Land government. As an initialstep to support innovation, SMEs are given free access to the services of this network

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