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In the century transition, different analytical approaches were built aiming at explaining territorial development, innovation, entrepreneurship and sustainability. Arguably, the concept of systems of innovation has been the most influential and used as an analytical tool and a framework for policy orientation. In this theoretical tradition, the Local Innovation and Production System (LIPS) framework was developed. A growing literature on entrepreneurship ecosystems of innovation (EEI) has also entered policy circles focusing on local development and innovation. This chapter presents the LIPS approach and discusses its convergences and differences with EEI, highlighting the advantages of the former, including the adoption of the broad notion of systems of innovation, that focus on the territorial context, including society and nature, as crucial elements to innovation and local development and establishes a bridge between the micro, meso and macro spheres, integrating social, economic and political dimensions as well as hierarchies and power elements.
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