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The main contribution of this paper is a theory-based conceptual framework of innovation spaces, and how firms must navigate through them to innovate. The concept of innovation systems - at the regional, sectoral and national levels - have been highly influential. Previous literature developing the concept of innovation systems has stressed the importance of institutions, networks and knowledge bases at the regional, sectoral and national levels. This paper primarily draws upon an evolutionary and Schumpeterian economics perspective, in the following three senses. The conceptualization of 'innnovation spaces' focuses upon how and why firm search for innovations is influenced the opportunities within certain geographical contexts. This means that the firm create opportunities and can span different context, but they are influence by the context in term of the access, flow and co-evolution of ideas, resources, technology, people and knowledge, which help stimulate business innovation in terms of products, process and services. The paper concludes with an agenda for future research and especially the need to focus on globalization as a process of intensifying linkages across the globe.

journal of evolutionary economics

Firms navigating through innovation spaces: a conceptualization of how firms search and perceive technological, market and productive opportunities globally