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This paper examines the incidence of innovation and the configuration of innovation systems in rural areas, which are viewed as possessing weak knowledge-generating subsystems. Drawing on the results of a microlevel study in rural Cumbria, North West England, the paper shows that entrepreneurs were able to access nonlocal knowledge infrastructure. Thus, the emergent actor-constructed regional innovation system stretched well beyond the confines of Cumbria. This configuration can be explained, in large part, by considering entrepreneurial origin. New arrivals (especially immigrants) demonstrated the greatest propensity to innovate, using innovation systems which cut across the regional and national boundaries. Locally born and returnee entrepreneurs demonstrated a low incidence of innovation. The paper concludes that a distinction between regional innovation systems (as macrolevel analytical units with a normative dimension) and actor-constructed regional innovation systems (as microlevel descriptive units) offers scope for the advancement of research in this field of study. [ABSTRACT FROM AUTHOR]

There is a growing realisation among scholars and policymakers of the role of local contextual factors and circumstances in influencing the behaviour of key economic agents, including the entrepreneur. This approach has stretched the boundaries of academic inquiry welt beyond mainstream conceptualisations of economic agency as isolated from its setting. An assumption that underpinned research and policymaking in the new learning is that economic activity is typically socially embedded, which is generally taken to imply local embeddedness. In our paper, drawing upon the findings of extensive research in rural Cumbria, we question this assumption. We argue that in the context of rural Cumbria, the conceptualisation of locality may go beyond territorial notions. This argument does not support a return to the notion of the isolated economic agent, but advocates a move forward to the detailed exploration of the interface between agency and context. [ABSTRACT FROM AUTHOR]