1.2.1 Innovation and local development

Even though innovation policy and development is regulated by innovation platforms on national level the main motor of innovative activities is at regional level where companies, work force and universities work closely related to each other. Therefore the real innovation hubs emerge and develop locally and regionally. Local environment with its many assets and actors are the fundaments of innovation potential and capacity.  One of those main actors - Micro companies with their entrepreneurship and innovative potential are the motor of economic development in local environments and the main innovative asset of communities. In this aspect innovation is a process that links regional knowledge, assets, resources and networks to transform basic ideas, insights and inventions into new processes, products and services that bring profits to local economies. The interaction between the main innovation assets creates the local innovation environment and brings outputs to local economies such as prosperity, productivity and growth.

Fig.1: Inputs and assets of the innovation environment