The paradox of innovation: Why regional innovation systems produce so little innovation (and so few jobs)

The concept of “innovation systems” emerged in an important branch of the strategic management literature that addresses industrial transformation in advanced economies. These “systems” are composed of networks of firms and the institutional infrastructure that supports them. Two premises underpin the idea that innovation systems can serve as the basis for an economic development strategy not only in advanced economies but also in emerging economies that hope to “leapfrog” into knowledge-based industries.