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This presentation explores how regions navigate this tension and express unique innovation cultures, while being part of the global economic and political landscape. Using the German state of Bavaria as an in-depth case study, we show how Bavaria enacts a particular imaginary of “conservative innovation” in keeping with existing sources of identity and social cohesion. Irrespective of Bavaria’s image as a haven of rural romanticism and tradition, for decades, the “innovation imperative” has been shaping the agendas and self-imagination of Munich, Germany’s second capital and one of the leading regional economies in Europe. Both the performances of identity and unique industrial structure lead to a particular imaginary of innovation. We call this imaginary “conservative innovation” – that is, a mode of innovation that aims to preserve traditional forms of socio-economic order rather than disrupt them; that is enacted from a perceived position of strength and leadership (at times even saturation); and that favors and safeguards political and economic incumbents rather than startup-like change. This imaginary suggests preserving traditional socio-economic orders rather than disrupting them; to favor and safeguard political and economic incumbents rather than enable new entrants; and to act from a perceived position of strength or even saturation rather than decline or emergency. Our research provides new support for a social-constructivist foundation of innovation theory, highlighting the unique local situatedness and inter-regional differences in the rationalization and practice of innovation policy. It provides a counterpoint to the persistent Universalist tendencies in innovation theory around models, systems, and best practices.