This paper examines how local-level policies can strengthen entrepreneurship and innovation in the region of Cambridgeshire and Peterborough in the United Kingdom. It investigates the quality of the local entrepreneurship ecosystem for generating innovative start-ups and scale-ups and the regional conditions for generating positive industry transitions by supporting the strategic sectors of life sciences, information technologies, agri-tech and advanced manufacturing. Key areas of focus are on skills development, entrepreneurship development and knowledge exchange for local economic development. A number of policy recommendations are offered based on the analysis together with international inspiring policy practice examples.