This article examines innovation processes in forest recreational services on the basis of case studies in five European countries with differing institutional backgrounds of forest ownership and access rights. The analysis reveals that forest-related recreation services are developed under varying institutional conditions and on public as well as private land. Ideas for innovations in recreational services may come from within but often outside the forestry sector. Financing is provided from public and private sources. Both public and private spheres have important roles in providing natural, human and financial resources and usually a network of public and private actors are involved in innovation processes. Of particular importance are cross-sectoral interactions between forestry and tourism. related recreation services because the field is at an early stage of development. It is concluded that support should focus on providing ideas and financial resources for product development and on facilitating cross-sectoral interaction between forestry and tourism actors. A particular need is seen for development of models for durable interaction between land owners and tourism operators on a regional scale.

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There has been a revival of interest in recent years in the relationships between multinational corporations (hereafter MNCs) and the host regions in which they operate. The branch plant thesis which generally views inward investment by MNCs in a negative light -as reinforcing power relations between core and peripheral regions -has been challenged, with the suggestion that such developments can play a key role in linking up local economies to important flows of knowledge and information in a global economy. It has also been suggested that MNC branch plant activities are in practice often upgraded over time, leading to the development of important competitive advantages for host regions. In this paper, such claims are investigated through a case study of the Aberdeen oil region in the north east of Scotland. The changing position of Aberdeen within the oil industry's corporate division of labour is evaluated in terms of the wider theoretical debate.

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