Abstract
This chapter explores the literature on innovation in tourism and related sectors, paying particular attention to the role of external knowledge in the innovation process. Influential conceptualisations of knowledge flows and innovation, notably absorptive capacity, are explored and a wide range of empirical evidence evaluated. This is followed by a brief review of mainstream theorising on public policy formation and a discussion of the factors influencing tourism policy chance. The chapter concludes by noting that universities do not feature prominently in most accounts of commercial innovation or policy change in tourism. Combined with other arguments developed in this book, it suggests that the potential for academic research to have a sustained—as opposed to sporadic—impact on innovation (and competitiveness) in tourism and other marginal sectors is very limited.
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