Thinking about space: regions and clusters in broader context

David A. Wolfe

Chapter 2 in The Governance of Innovation Spaces, 2026, pp 19-53 from Edward Elgar Publishing

Abstract: This chapter explores the geographic dimensions of economic development, analysing how governance arrangements at different spatial scales shape innovative performance. It begins by examining the role of knowledge – particularly the distinction between codified and tacit knowledge – as the central driver of economic development, demonstrating how the tacit dimension underpins the importance of geographic proximity and institutional embeddedness. It reviews how institutions and social learning govern innovative capacity, arguing that a region's innovative performance depends on its institutional infrastructure and capacity for reflexive learning. The chapter reviews the theoretical foundations of regional innovation systems (RIS) approach, tracing its development from its initial formulation in the early 1990s to its acceptance as the dominant framework for analysing regional governance and innovation policy. The concept of RIS is situated within the broader context of “nested scales”, recognizing that regional economies are embedded within national innovation systems and global innovation networks, with each level adding distinctive dimensions to knowledge creation, and diffusion. The chapter also discusses industrial clusters as concentrations of firms benefiting from agglomeration economies, tacit knowledge spillovers, and collaborative networks embedded within RIS – using Baden-Württemberg's dense networks of research institutions and SMEs, and Silicon Valley's successive waves of technological reinvention, to illustrate key dynamics. It concludes by linking cluster dynamics to the concept of “learning regions” – places that foster reflexive social learning through the collaborative engagement of firms, research institutions, and governance actors – emphasizing how governance arrangements are critical for the performance of both RIS and clusters.

Keywords: Regional Innovation Systems (RIS); Industrial Clusters; Tacit Knowledge; Agglomeration Economies; Learning Regions; Nested Scales (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035320783
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