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We assume that the territory of Germany is experiencing a reorganisation of functional division of labour in favour of the knowledge economy. New forms of network economies and functional differentiation between cities and towns can be observed. The in creasing importance of emerging network economies has introduced new lines of thinking about space, place and scale that interprets regions as unbounded, relational spaces. The key aim of the paper is to set out a theoretical context and then todoi:10.1007/s13147-011-0088-0 fatcat:6vz6ybebhbgjnbulhyvr5emkqe