The first part of this article examines the concept of regional innovation systems against the background of modern theories of innovation and regional policies. It is argued that the role of localized learning is of strategic importance in the promotion of endogenous regional development. With reference to current research on regional policy, the author also argues that sustainable regional strength is built on a continuously upgraded knowledge base, rather than on general factor endowment. By stimulating localized learning, the regional innovation systems have an important role to play and offer possibilities of producing regional competitive advantage. The author then suggests how regional innovation systems can be organized in order to increase innovation at various levels. Finally, some sketches are provided of various innovation strategies operating at the regional level from which lessons of direct policy relevance may be learned and adapted to the Portuguese context.
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