Innovation

Abstract

This article provides an overview on theoretical explanations, empirical results, and policy implications of innovation in space and place. After a short definition of the term ‘innovation’ the author explicates how theories of economic geography try to explain why the geography of innovation is rather uneven. Both the locational aspects of innovation genesis and of the diffusion of innovation in space are considered. The innovation-driven product cycle theory, the theory of long waves of economic development, territorial-based systems of innovation approaches, the concept of learning regions, and the concept of innovative milieux are described. Third section deals with empirical results of research on regional innovation. Topics here are local geographical knowledge spillovers and the spatial range of innovation linkages. Finally, the rationale of regional innovation policies and related programs and targets is discussed considering the increasing popularity of such attempts among policy makers all over the world. This article clearly shows that due to various distance-sensitive processes related to innovation (transfer of tacit knowledge, knowledge spillover) space definitely matters for both innovation genesis and innovation diffusion.