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The Triple Helix of university-industry-government relations is elaboratedinto a systemic model that accounts for interactions among three dimensions. Bydistinguishing between the respective micro-operations, this model enables usto recombine the "Mode 2" thesis of a new production of scientific knowledgeand the study of systems of innovation with the neo-classical perspective onthe dynamics of the market. The mutual information in three dimensions providesus with an indicator for the self-organization of the resulting networksystems. The probabilistic entropy in this mutual information can be negativein knowledge-based configurations. The knowledge base of an economy can beconsidered as a second-order interaction effect among interactions atinterfaces between institutions and functions in different spheres. Proximityenhances the chances for couplings and, therefore, the formation oftechnological trajectories. The next-order regime of the knowledge base,however, can be expected to remain pending as selection pressure.

"While a Storm is Raging on the Open Sea": Regional Development in a Knowledge-based Economy