The paper analysis the role of the Internet for different types of innovation not only focusing on the traditional set of product, process, organizational and marketing innovation, but also extending to innovation in the public sector. In addition to the role of the Internet for various types of innovations, it has also implications for new forms of innovation, especially for the new paradigm of open innovation, which involves collaborative efforts of numerous partners often with a heterogeneous background. The Internet reduces geographical distance, but its moderating effect on other forms of ‘distance’ relevant for innovation success, like institutional, organizational, technological, and relational distance is also elaborated. Finally, the implications for innovation at the regional level are derived. The paper concludes with a set of research questions and an integrative approach to measure Internet-enabled innovation at the regional level.