Innovation policy has become an integral part of modern industrial policy. This paper considers the role of innovation and place through the lens of UK innovation policy. It argues that much of innovation policy is focused on the generation of innovations and not the diffusion and adoption of innovation throughout the economy. This focus will do little to slow or reverse regional diverges in economic performance. Innovation policy at the local level requires greater focus on innovation diffusion whilst adopting both a wider perspective to encompass the variety of innovation and a narrower perspective to focus on the specific innovation needs of individual regions or localities.