Fransman explains how innovation happens and which factors can help or hinder, by treating innovation as a systemic phenomenon, or ecosystem of players and processes. It will appeal to economists, other social scientists, business people, policy makers, and anyone interested in innovation and entrepreneurship.

Increasingly, researchers and policymakers alike recognize that innovations are generated by complex and dynamic national ecosystems that include government, industry, universities and schools.

This book discusses the importance of innovation and entrepreneurial ecosystems in supporting regional competitiveness. It also encourages academics, business professionals and policy-makers to rethink innovation ecosystems as drivers of regional competitiveness, demonstrating the complex interactions between regional economic and social actors, and their impact on regional competitiveness. Further, the book examines the role of entrepreneurship and innovation policies in different regions (e.g. lagging regions, rural regions, etc.), and describes critical success factors in multi-level technologies and innovation policies and strategies.

This book begins with a theoretical examination of regional innovation systems, agglomeration economics and knowledge spillovers, before going on to examine the same concepts within an empirical framework. Special emphasis is given to the importance of proximity in the formation of regional innovation systems. It concludes by considering innovation and human capital as determinants of regional economic growth. The concept of knowledge spillovers is used within the book to explain a number of major economic phenomena, including the geographical clustering of inventions; the social returns to R&D that significantly exceed private returns; and the sizeable disproportions that exist between firms in terms of their R&D inputs and outputs. The contributors identify that small firms are responsible for far more product innovations than large firms relative to their measurable knowledge resources. The book also stresses the importance of a catch-up mechanism that sees technological improvement as the combination of two distinct types of activity: innovation and imitation. In this way, the impact of human capital and other types of knowledge acquisition on economic growth is measured. The conclusions of the contributors are invaluably oriented to policy implications. This book will appeal to researchers and postgraduate students of regional science and innovation and knowledge, as well as policymakers.

First Published in 1999. The process of globalization is shaped and reinforced by a rapidly changing knowledge environment. As economies become less constrained national frontiers they become more geographically specialized. Thus, important elements of the innovation process tend to become regional rather than national. In this new environment, large corporations are weakening their links with their home country, spreading their innovation activities to source different regional systems of innovation. Regional networks of forms are creating new forms of learning and production. The aim of this book is to broaden, both conceptually and empirically, the 'national systems of innovation' approach, developed by Lundvall, Freeman, Nelson and others. While recognizing the creative nature of economic adjustment in a turbulent world and the highly uneven distribution of economic growth, the national systems approach lacks a mechanism by which to understand innovation when realistic unit of analysis is no longer the nation state. Written by leading scholars in the field, this book provides a ground-breaking examination of sub-regional systems of innovation in an interconnected global economy.