This thesis is a presentation of research on howentrepreneurship happens. The connection betweenindividuals and surroundings is under close scrutiny. It isargued that institutional systems exert importantinfluence on individuals’ willingness to engage inentrepreneurial activity. Consequently, effectiveinnovation strategies should include emphasis oncreating milieus conducive of entrepreneurship. Thechoice structure people relate to has to be constructedfavorable of innovative initiative, and efforts in directingpeople’s attention to the issue are essential for thefreeing of innovative potential.An empirical study of prospective entrepreneurs(students participating in the Norwegian School ofEntrepreneurship, Gründerskolen) and an assessment ofthe Norwegian climate for entrepreneurshipcompliments review of literature from a range of socialsciences. The thesis is interdisciplinary, explorative, androoted in the Science, Technology and Society tradition.The findings are compiled in an innovativeconceptualization of how individuals and systemsrecursively interact, and are illustrated in a set ofmodels, where the Spatial Model of Entrepreneurship ismy contribution to contemporary research onentrepreneurship.Key words: Innovation, entrepreneurship, culture, institutions,decision-making, entrepreneurial education, aspirations,Norwegian climate for entrepreneurship.