ABSTRACT
This chapter considers the major mechanisms which differentiate local level innovation. It examines the processes structuring major technological trajectories, before presentation of a typology of actual innovation areas. In many European regions, milieus are being formed, stimulated by the local Chamber of Commerce or other organisations, associations are being set up uniting the heads of local firms, and local networks are being created by local agencies striving to promote technology. A rigid labour market which was established a long time ago, is based on historic rather than evolving skills, and is run according to a codified social relations system, is often regarded as an obstacle to changes required by technological innovation. On a different level of analysis, an interesting distinction can be drawn between development stimulated by aspects of the supply capacity of a region and by the market. The chapter concludes by demonstrating the importance of a dynamic analysis of innovation areas.
