In order to be competitive in the globalising knowledge economy, the OECD countries need to invest in their innovation systems at the national and regional levels. As countries are turning their production towards value-added segments and knowledge-intensive products and services, there is greater dependency on access to new technologies, knowledge and skills. And, with the parallel processes of globalisation and localisation, the local availability of knowledge and skills is becoming increasingly important. OECD countries are thus putting considerable emphasis on meeting regional development goals, by nurturing the unique assets and circumstances of each region, particularly in developing knowledge-based industries. As key sources of knowledge and innovation, higher education institutions (HEIs) can be central to this process.