This paper aims to examine empirically, through the application of the Knowledge Production Function, how the innovation in micro-region of S\ue3o Paulo can be affected for some territorial factors. In the literature, and assumed here, the innovative results, measured by patents, are linked to the quantity and quality of innovative inputs and characteristics of the regions that are configured as an input. In this sense, stands the importance of positive externalities that are generated by the spatial concentration of producers and support institutions that are able to contribute to the efforts of innovative firms. In addition, this paper emphasizes the role of local production structures in the regions of S\ue3o Paulo, since both the regional diversification and regional specialization are mentioned as important factors in the innovation process. The main results suggested that although the level of R&D investments were important for generating local innovation, ie, the generation of local patents, this relationship does not occur clearly in the regions of S\ue3o Paulo. In addition, local productive structure or density linkages of firms that interacts are certainly important factors and compensatory for innovation process
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