The course focuses on a broad range of topics related to innovation and governance, such as (i) technological change and its social and economic consequences, (ii) the spatial effects which result from this, and (iii) the necessities for economic policies at different territorial levels. Since international competitiveness of industrialized economies cannot be based on cost advantages alone, future growth in the knowledge-based economy will be increasingly associated with capabilities related to creativity, knowledge generation and innovation. As a consequence, questions regarding the performance in innovation and effectiveness of policy support become decisive at the firm level, regional level and national level. The first part of the course deals with conceptual foundations of innovation processes, such as evolutionary and institutional views of innovation. In the second part, national configurations of innovation processes are investigated. The third part deals with innovation at the subnational level, focusing on regional clustering, institution building, multilevel governance, and regionalized innovation systems.