ABSTRACT
Scholars engaged in research in the field of regional economics or economic geography have little doubt that regions do matter for research and development (R&D). For these experts, the real questions are deeper and concern issues like the relative importance of the impact of location, the ways in which the influence of location comes into effect and how regional conditions for innovation activity can be improved. This chapter deals with these questions. Its starting point is a brief overview of empirical findings about the spatial distribution of innovation activity. The following sections represent an attempt to explain this evidence based on the notion of labor division in the field of innovation. The main characteristics of such a division of innovative labor have significant implications for the spatial organization of innovation activity as well as for the analysis. The concept of regional innovation systems and the role of different actors in such a regional system are explained followed by an overview of results of recent research concerning regional innovation systems. Finally, an exposition of basic policy options is given and some important issues for further research are specified.
