Network-based innovation systems: A capital base for the Monterrey city-region, Mexico

• We advance a methodology to observe regional innovation systems within knowledge cities.
• We examine a regional innovation system in the light of capital systems, and four key drivers of relational-based models.
• We argue that system and network thinking contribute to our understanding of innovation processes.
• We suggest that identified drivers further support interactive approaches to innovation and knowledge city transformation.

This paper advances notions of interactive learning as one of the key drivers of the knowledge based-development perspective. The paper explores the strategic role and close relationship between social and institutional learning as critical processes in order to generate knowledge and innovation in an urban context—i.e., knowledge city. The research reported in this paper makes an account of: (i) considering a capitals system perspective for knowledge flows to add value for the development of knowledge cities and communities; (ii) learning interactive processes among actors that leverage institutional capacity within regional innovation systems, and; (iii) adopting a knowledge-based development framework for investigating the capital basis of the City of Monterrey, Mexico. This research sheds light on how knowledge-intensive elements—such as higher education institutions, research centers, firms and other local actors—are contributing community building in a knowledge-based urban context—i.e., knowledge city.