ABSTRACT
This chapter addresses the issue of the geography of innovation. It analyses the distinctive features of knowledge as an economic good and the role played by tacit knowledge in the territorial agglomeration of innovation. Tacit knowledge is generated by experiences gained in specific contexts and is embodied; that is, it is inextricably linked to the person who owns it and is transmitted through dense communication based on personal relationships. The chapter also discusses several research contributions that examine the function of knowledge spillovers and star-scientists in the localisation of innovative processes. Spillovers produce positive externalities which also benefit actors who have not contributed to the production of the knowledge. It also talks about the review of the studies on learning regions and regional innovation systems. The basic assumption of the literature on national innovation systems (NIS) is that economic structure and institutions shape innovation processes.
