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In the two previous chapters, innovation has been considered as an evolutionary process as well as an interactive knowledge-based phenomenon. Nevertheless, until this point, the spatial dimension has (deliberately) not been encompassed in the discussion. This will be done in this chapter, which aims at introducing spatial determinants in the analysis of innovation interaction. These spatial determinants are based on two main concepts: (i) the proximity between actors ( i.e. considering interactions, the closeness according to different dimensions of interacting actors); and (ii) the territory on which actors are located ( i.e. the elements geographically identifiable as a set which constitutes the reference environment of the considered actors). This chapter examines firstly the concept of proximity with regard to knowledge and innovation. The second section deals with the influence of the territory on innovation activities, considered as a system from a national and regional perspective. The final section exposes a synthesis of the impact of territorial determinants on the evolution of SMEs and KIES. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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