This paper opposes the view which points to the declining importance of nat
ion states and the elimination of space and territory as an effect of the i
ncreased trends towards globalisation. The argument has its foundations in
the evolutionary approach of economic development and argues that the impor
tance of the national level grows within a globalised world which is becomi
ng increasingly complex, disorganised and, simultaneously, monotonous. Mono
tony can be reduced through the emergence of national diversity based on sp
ecific development paths of spatially defined regional economic systems, in
which creativeness and selective capacity generate innovation and replicat
ion processes. National and regional productive systems must be organised a
ccording to a triple helix model of institutional networking. This model ca
n be applied to the particular case of developing economies based on tradit
ional and mature sectors. These economies can start a catching up process b
y becoming creative users of technology and advanced users of telematics. T
he theoretical framework is used to discuss the innovative capacity of the
Portuguese economy and to point out some solutions to overcome barriers to
innovation. (C) 2000 Elsevier Science B.V. All rights reserved.