One of the important aspects of studying local innovation dynamics is associated with the tracking of the movements of the tacit knowledge that prevails in such localized environments and that is mostly insulated from outside world. These localized innovation systems do not always correspond to well-defined innovation parameters such as R&D expenditure or patents or publications, but instead they go much deeper to the psyche of individuals, groups, and society. In India, for example, we can observe how local innovation functions and adapts in an environment that is constrained by available resources.

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