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The interregional differences in the cost of production stem not only from differences in the classical cost elements. They are influenced also by conditions, which indicate the quality of life in a region beyond the material income position, such as culture, sports, societal specificity or environmental sustainability ("soft factors"). While clear-cut definition of soft factors is hard to give it seems to be easy to describe their working mechanism. The contributions compiled for this volume have been presented at an international workshop, which was organised by the Institute of Economic Policy Research of the University of Karlsruhe to honour its founder Professor Rolf Funck. Outstanding experts give foundations to and examples for the proposition of Rolf Funck that in the future soft factors are more and more decisive for the economic prosperity of regions. They give relevant case studies and new theoretical backgrounds for the uprising importance of soft factors.
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