This paper provides a new definition of territorial development based on two engines, production and governance relations, and linked to a broader conception of territorial innovation. Starting with a short survey of previous works, it presents the two major building blocks, and proposes a detailed categorisation of territorial innovations, their origin, and their contribution to production and governance dynamics. It then draws a definition and a description of territorial development processes based on these two engines, and in conclusion opens the way for future researches on bifurcations and ruptures of trajectories emerging from territorial innovations.