The growth potential of countries increasingly depends on the effectiveness of their innovation systems in creating …, diffusing and using knowledge. A large share of market-based or informal knowledge flows occur within industrial clusters that … can be seen as reduced-form innovation systems. Policies to stimulate innovation at national and local levels must both …

progress, need to understand how innovation works in order to better stimulate it. The paradox of innovation is that it uses co …-operation to enhance competition and to link many different actors in innovative clusters. In a knowledge-based economy, these … clusters of innovative firms form around sources of knowledge. They are based on a sophisticated infrastructure in which …