: Koschatzky, K.

Abstract
Based on theoretical reflections about importance of regions in firm innovation, it is the aim of this paper to assess the prohability, as well as the degree, that structural (firm internal) and regional characteristics, such as the type of region, agglomeration economies, regional and inter-regional networking account for the undertaking of product and process innovations. Guided by four core hypotheses incorporating different theoretical arguments. logistic regression models for urban, intermediate and peripheral regions are set up to test the explanatory contribution of firm-related and regional variables in the realisation of innovations in different regional environments. the data used in this paper originate from an industrial innovation survey carried out in several German regions and two French regions. It will be shown that firms located in the regions under investigation. "Space clearly" matters in innovation. However, this takes place more on a perceptive rather than on a politically defined basis.