The paper interrogates regional competitiveness by analysing tourism innovation and networking as a case study example from the Western Cape region, South Africa. The economic significance of services and tourism to the region, as well as the innovation performance of tourism firms, and the policy environment which supports innovation and tourism are examined. An analysis of micro-data discloses that innovation is widespread and therefore is significant for the competitiveness of the regional tourism economy. The results of this investigation point to the critical need for regional policy to focus on strategic networking linkages to access global knowledge flows, as well as the need to develop tourism as core regional competency, and to strengthen the capacity of local institutions to foster regional innovation, competitiveness and growth in the Western Cape economy.
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