Do regional systems of innovation matter

The paper deals with the significant impact of location on innovation activity that has been found in many empirical studies. Main elements of such an explanation are the specific problems of a division of innovative labor. Based on an outline of these issues the concept of a regional innovation system is presented in some detail and an overview of results from recent research on regional innovation systems is given. The paper then discusses basic policy options and names a number of important questions for further research.

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