Abstract
This article examines the processes of building innovation capacity, within a regional innovation system. We analyse a case study of technological development in a region, leading us to propose a conceptual model to explain how and why the development of a common resource pool of scientific and technological knowledge in turn leads to regional innovation capacity. The model visualises our proposition that a process of governance enables actors to exploit a set of regional resources (incentives, networks, and global relations), whereby collectively creating industrial opportunities. We thereby use the model to predict that the success and directionality of specific technology in the region is dependent on establishing an organisational structure for exploiting said resources collectively. This contributes to understanding the governance of innovation systems because our proposed organisational structure, once established, will protect and channel knowledge and resources to the heterogeneous participating actors (regional government, universities, and firms).
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