Abstract
Over the past decade there has been a strong emphasis on the analysis of local economic development. Current research on local development has strongly promoted endogenous growth mechanisms, stressing factors such as local entrepreneurship, social networks, synergy, innovativity, dynamic learning processes and factor flexibility. Accordingly, there has been an increasing interest in the role of innovations and their diffusion in regional development and growth. However, few studies have focused on lagging regions and the problems that they are faced with. This paper attempts to chart the existing regional differences in environments for enterprises in Finland following the concept of innovative milieu.
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