Territorial Agglomeration as a Local Innovation Environment the Case of a Digital Media Agglomeration in Tampere, Finland

In this article the concept of territorial agglomeration is discussed and reflected from the point of view of innovation activities. From this same angle, some suggestions are also made as to how to bring some clarity to the complex issue of the relationship between companies and their local operational environment. One of the conclusions is that a territorial agglomeration can be a basis for stimulating the local innovation environment, although the agglomeration does not necessarily contribute directly to the innovation activities of companies belonging to it. It is argued that a local innovation environment consists of many interrelated elements ranging from the institutional setting to the behaviour of individuals. Also, a preliminary way to approach this complex issue is suggested. It is argued that a local innovation environment can be divided into three levels: 1. the structural and institutional level, 2. the level of organisational relationships, and 3. the level of individuals. The case of a digital media agglomeration in Tampere is used as an empirical illustration for the structural and institutional elements of a local innovation environment. The digital media agglomeration in Tampere has its roots quite far back in history, but it grew very rapidly and reached its current form in the 1990s. It is dominated by the business units of large international digital media companies, which is partly linked to its weak entrepreneurial atmosphere. Its major strengths, however, are its educational institutions and science and technology base. Additionally, several local collective actions have been taken by both private and public actors, often together, towards facilitating and strengthening the agglomeration's institutional setting and knowledge base. Still, it should be emphasised that structures and the institutional setting alone cannot guarantee the innovation performance of a territorial agglomeration or a region.