Its a pre-requisit, as a wittness i call into court venecia, were free enterprise lead to the cities bloom and the return of the feudal ruling structure among its trade partners (osman empire) lead to the decline of this "italian" silicon valley back into obscurity.

https://www.britannica.com/place/Venice/The-commune

Which by deduction means, that you need a trade supporting eco-system, without taxation on the moving of goods. Oceans prefered. Which means, that hermit kingdoms waylaying is the biggest innovation embargo.