The "Product Space" refers to a conceptual framework that visualizes the relationships between different products based on their similarities and differences. It helps to understand how products can be grouped together, often based on shared characteristics, production processes, or market demands. This space can be represented as a multidimensional map where each product occupies a specific position relative to others. In the context of economics and innovation, the Product Space can also illustrate the potential for diversification and growth within an economy. By analyzing the proximity of products, policymakers and businesses can identify opportunities for developing new products or entering new markets, ultimately fostering economic development and competitiveness.