This article considers key barriers to the process of innovation, as identified in a survey of firms and research institutions in the Czech region of South Moravia, which has been trying for more than a decade to spur innovation via successive regional innovation strategies. The article makes particular reference to the nature of newly emerging regional innovation systems in postcommunist countries and contributes to debates concerning the significance of localized processes of knowledge creation and dissemination for the competitiveness of a region. The article is based upon 188 in-depth interviews with representatives of firms and 90 interviews with leaders of prominent research teams in the region. The in-depth interviews allowed the identification of a wide array of barriers to the innovation process, which proved to be systematically related to the level of a firm’s entrepreneurial ambition. The level of ambition of firm’s strategy also translates into differing extent, to which analytical knowledge is being employed. The analysis identifies factors that are not yet adequately reflected in national or regional innovation policies and strategies, and several associated policy recommendations are set out in the concluding section of the paper.
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