How cluster, firm, and regional business environment influence different types of innovative activities in European Union

Abstract: As widely accepted, innovations are of great importance for regional and national economic growth and competitiveness. Innovation Union is one of flagship targets of European Union Horizon 2020 initiative. However, to understand innovation is still challenging, give its complicated nature; moreover, among factors within policy influence, which variable could help facilitate innovation is also inconclusive. This paper will carry out Regional Competitive Framework to understand how cluster, firm behavior, and business environment impact on innovations performance in a both static and dynamic way, and further provide policy implications for promoting innovations. In this paper, Innovation would be perceived as innovative activities from firms’ subjective views, measured from Community Innovation Survey (CIS). Consequently, six aspects of innovation activities would be discussed, with EPO patents as objective innovation measurement for reference.