Local innovation refers to the dynamics of IK - the knowledge that grows within a social group, incorporating learning … from own experience over generations but also knowledge gained from other sources and fully internalized within local ways …

"Chen and Dahlman assess the effects of knowledge on economic growth. By using an array of indicators, each of which … represents an aspect of knowledge, as independent variables in cross-section regressions that span 92 countries for the period … 1960 to 2000, they show that knowledge is a significant determinant of long-term economic growth. In particular, the …