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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.

The article aims to identify the development phases in the process of the regional differentiation in the Czech Republic after 1989, & examines whether this differentiation trend is currently changing. The assumption the article's hypothesis is based on is that during recent development the basic 'parameters' of the principal features of the country's regional structure have been stabilized amidst the conditions of parliamentary democracy & a market economy. Unlike the first phases of socio- economic transition, when differentiating trends prevailed, a certain degree of stabilization can now be assumed, alongside the emergence of new trends. The development of regional differences was analyzed using indicators of GDP, the unemployment rate, entrepreneurial activity, & tax revenue from self- employed physical persons. The findings show that over the course of the 1990s regional differences intensified at both the mezo- regional (regional) level & the micro- regional level. It was also confirmed that at the turn of the millennium the phase of divergent regional development ended, & since that time regional differences have hovered around the same level.