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Recognizing the impact of innovation on organizational performance, scholars from a number of disciplines have sought to identify the conditions that make innovation possible. Although these studies have served to identify a number of key variables, the relationship between these variables and innovation is complex. In this chapter, we argue that the apparent complexity of these relationships may be attributed to cross-level differences in the requirements for innovation and the existence of complex interactions among the phenomena operating at a given level of analysis. The implications of this multi-level perspective for understanding how innovation occurs in organizational settings are discussed.