With or Without Clusters: Facilitating Innovation through a Differentiated and Combined Network Approach

Over the past decades, economic and innovation policy across Europe moved in the direction of creating regional clusters of related firms and institutions. Creating clusters through public policy is risky, complex and costly, however. Moreover, it is not necessary to rely on clusters to stimulate innovation. A differentiated and combined network approach to enhancing innovation and stimulating economic growth may be more efficient and effective, especially though not exclusively in regions lacking clusters. The challenge of such a policy is to mitigate the bottlenecks associated with “global pipeline”, “local buzz” and “stand alone” strategies used by innovative firms and to combine these strategies with a view to their complementarity in terms of knowledge effects. Private and semi-public brokers will be key in the evolving policy, as timely organizational change is crucial for continued innovation, while brokers also need to mitigate governance problems. This requires region-specific knowledge in terms of sectors, life cycles, institutional and socio-cultural factors, and yields spatially differentiated and differentiating adjustment strategies. The role of public policy is to assist in recruiting, provide start-up funding and monitor brokers. With this, policy moves towards a decentralized, process-based, region-specific, spatially diverging and multi-level system of innovation that is geared towards the evolving innovation strategies of firms.     

Knowledge Networks as a Regional Development Resource: A Network Analysis of the Interlinks between Scientific Institutions and Regional Firms in the Metropolitan region of Hanover,Germany

The debate on regional innovation potentials has concentrated in recent times upon the topic of regional knowledge networking. This article presents the findings of the first phase of a detailed network analysis of the cooperation relations between scientific institutions and firms in the “metropolitan region Hanover-Brunswick-Göttingen”. The research concentrated on the regional and supra-regional cooperation relations of approximately 500 science establishments of the region, including their interlinks with private sector firms. This analysis of a polycentric metropolitan region's knowledge networks in different fields of competence produced detailed information on the density of knowledge interlinking within the region, on the degree of connectivity between the region's scientific institutions and private sector firms, and on central network nodes within the regional innovation networks. The case study exemplifies the methodical approach of a regional network analysis and emphasizes the role of knowledge networks as a development resource which is of particular relevance to the region's innovation capacities.     

The Role of Interactive Learning to Close the “Innovation Gap” in SME-Based Local Economies: A Furniture Cluster in the Basque Country and its Key Policy Implications

This paper identifies an “innovation gap” in the (in)efficient relation between innovation structures and production systems in SME-based economies and, by elucidating an implicit aspect of key theoretical contributions from Lundvall and Cooke, among others, sets the basis for a policy focus that may help reducing those margins of inefficiency. In this work, we identify three interdependent drivers of innovation: the “critical mass” of firms in a specific geographical location; the formation of “organizations” devoted to the creation and diffusion of knowledge and innovations; the ignition of “learning processes” within the production system that help catalyse significant innovations within the local economy. We suggest that the importance of processes of codified knowledge flows needs to be complemented by interactive flows of tacit knowledge that help overcoming the “innovation gap” that often exists between firms and knowledge institutions. Since this gap represents the inefficiency of the innovation structures, we suggest that it should be targeted by policy-makers and business associations as a central issue for innovation promotion through actions that intensify interactions and learning processes through bottom-up initiatives. These elements are analysed in a furniture cluster in the Basque Country and are highlighted on the basis of successful micro-territorial experiences.     

Canada's Ocean Supercluster initiative: A national policy in regional clothing?

Since the late 1980s, there has been no explicit regional policy in Canada. Indirectly, though, equalization payments, industrial policies, as well as regional agencies encouraging the adoption of federal industrial and innovation policies, impact regional economies. In 2017, the federal government appeared to alter its approach: the Supercluster initiative was announced, drawing upon the idea that localized networks of interrelated firms can generate innovation and local development. In this paper, we discuss the mechanisms through which spatially focused industrial innovation policy can lead to regional development. We then focus on Canada's Ocean Supercluster initiative. The question we address is as follows: to what extent can this initiative (and, more widely, Canada's Supercluster policy) be understood as a regional development strategy driven by a coherent rationale for regional intervention? Apart from the fact that each Supercluster focuses on a pre-existing core of firms located within a region, there is little evidence that the Supercluster initiative has regional development objectives or impacts.     

Assessing Overall Network Structure in Regional Innovation Policies: A Case Study of Cluster Policy in the West Midlands in the UK

Revisiting the theoretical roots of the key concepts of “embeddedness” and “networks” that underpin many recent regional innovation polices, this paper strives to achieve a more systematic understanding of the overall network structure of geographic agglomerations, which helps to form a more convincing model of regional development based on learning. This also helps to establish an analytical framework with indicators to assess the overall network structure in regional innovation policies. Employing the framework, the examination of cluster policy in the West Midlands highlights its weakness in addressing the overall cluster network structure and the contingent factors influencing the structure. The analysis suggests that there may be similar weaknesses in other regional innovation policies and the theories underpinning them as they share a common weakness in addressing the structural characteristics of overall networks.     

From regional innovation systems to local innovation systems: Evidence from Italian industrial districts

The theoretical concepts of industrial district and regional innovation system though closely related, capture different aspects of regional economic development. Given the “nestedness” of a system in other systems, one regional innovation system can support several districts. However, in some cases, districts may be considered as local innovation systems with independent innovation patterns. In fact, the socio-economic characters of industrial districts can be so specific that the region's size and institutional framework may be inadequate in fully describing their innovation processes. In the case of the Italian region of Lombardy, this “autonomous” local innovation system model proliferates.     

SMEs and Their Peripheral Innovation Environment: Reflections from a Finnish Case

As it has now been widely argued, innovation is ever more seldom the product of isolated firms but usually requires a combination of multiple technologies, skills and competences, part of which have to be acquired from outside the boundaries of the innovating firm. As the literature on regional systems of innovation and other territorial innovation models suggests, the region is the most appropriate spatial level for investigating and understanding the nature of firms’ external knowledge acquisition in their innovation processes, as well as for identifying the critical actors and factors contributing to them. Unlike the majority of studies focusing on the innovation activities of firms at the regional level, this paper focuses not on the actual importance of different location factors, but on the perceptions of small- and medium-sized firms entrepreneurs of the quality of different factors in their regional innovation environment. By identifying differences between the perceptions of innovative and less-innovative firms, this study contributes to the literature on innovation as a regional-level phenomenon, and also tentatively puts forward some managerial and policy implications, as well as suggestions for further research.     

R&D Cooperation in Innovation Systems—Some Lessons from the European Regional Innovation Survey (ERIS)

Our paper summarizes some of the main results of the European Regional Innovation Survey (ERIS) as far as they are discussed in this special issue of European Planning Studies . The overall target of the ERIS project is a quantitative and qualitative assessment of determinants crucial for the innovation potential of any region, i.e. innovative and non-innovative manufacturing firms, business services and research institutions, as well as the innovative linkages and networks between these actors. Empirical research is based upon almost 8600 questionnaires collected in 11 European regions. Results confirm some of the common hypotheses on the relationship between space and innovation networks but others are contrary to existing scientific knowledge. Obviously the impact of national innovation systems on the innovation activities of manufacturing firms in a given European region is-at least-as strong as the impact of the respective regional innovation system. The spatial range of innovative linkages significantly depends on the size, the type of the cooperation partner, the R&D intensity and the industry of the analysed manufacturing firm. For example, the higher the technology intensity of the industry, the greater is the need of each firm to use intraregional knowledge via innovation linkages. It is therefore an important task in regional innovation policy to promote network-building among firms and other actors of a regional innovation system and to interlink these intraregional networks with national and international knowledge sources.     

Renewable Energy Innovation and Governance in Wales: A Regional Innovation System Approach

This paper draws on research commissioned to investigate the regional innovation system of Wales on green innovation, focusing on the renewable energy sub-sectors of wind, solar and biomass. It shows how many innovative firms operate within regional networks, cooperating and interacting not only with other firms such as suppliers, customers and competitors, but also with research and technology resource organizations, innovation support agencies, venture capital funds, and local and regional government bodies. The paper argues that within the region there is the presence of various renewable energy production platforms, usually based on core technologies (wind, solar, biomass, marine, etc.) at different levels of development. They involve a mix of established energy utilities and new sustainable energy businesses that are positioned at different levels within the renewable energy supply chain. The research shows that the regional government is playing an important role in supporting the renewable energy industry; nevertheless, more needs to be done to facilitate planning control, provide skills and create new demands for renewable energy that will further foster business growth and further strengthen the existing manufacturing base and innovation in Wales. The paper identifies some weaknesses in the Welsh energy innovation system, not least that energy is not a devolved responsibility and it argues that there is some scope for the Welsh Assembly Government to further investigate gaps within the green innovation supply chain and act on strengthening regional capabilities within the industry but also to support and investigate further opportunities for inward investment.     

Smart specialization as a strategy to develop early-stage regional innovation systems

ABSTRACT

This paper discusses the role of smart specialization in catalyzing the development of early-stage regional innovation systems in less advanced regions, either by facilitating the emergence of some defining elements that were lacking or accelerating the development of others, such as: a regional knowledge base and a dynamic learning process, institutional structures, network integration mechanisms among key innovation actors, regional industrial specializations, and collective identities. The paper exemplifies this process with the case of Romania, a country where the research and innovation system is centralized at national level and regional innovation systems are in the early days. The transformations taking place in the Romanian regions within the process of implementing smart specialization, assisted by the European Commission's Joint Research Centre in the project “Targeted Support to Smart Specialization in Romania”, suggest a dynamic coagulation of institutional, financial, policy, and human factors that catalyzed the development of regional innovation systems in the country and introduced a novel approach to innovation policy.     

SOVEREIGNTY AND SOFTWARE

This article will critically appraise two approaches to cultural policy. The first focuses upon the need for a national cultural policy in order to establish a national “common culture” among its citizens, through measures to promote the arts and popular media sectors, and set limits to the flow of imported materials into the nation. This is what has been termed the “sovereignty” model, and has historically been the driver of cultural policy debates. The second approach, which is called the “software” approach, aims to create cultural infrastructure and other environmental factors to promote a creative economy, whether at local, regional, national or supra‐national levels. It questions the historical divides between “culture” and “industry”, and between “creativity” and “innovation”, and is focused upon the development of future ideas and creative concepts. It draws upon the very different conditions associated with the development of software to those of established arts and media sectors, and aims to extend the “software” model more widely into cultural and creative industries policy.     

Managing Long Distance and Localized Learning in the Emilia Romagna Life Science Cluster

The paper provides some empirical evidence of the effectiveness of the “open innovation” model in the life science cluster of Emilia Romagna (a region of Italy), comparing the network of R&D collaborative activities in public research organizations (PROs) and the network linked to R&D collaborative activities in private firms. By presenting the main results of a field research in the life science sector in Emilia Romagna, we are contributing to the recent debate focused on the crises of the old “closed innovation” model and the rise of the “open innovation” model. Our survey consists of both primary data deriving from face-to-face interviews with researchers and entrepreneurs, and secondary data extracted from the Internet, the PubMed database, and from the European Patent Office. Our work is based on the analysis of a representative sample of 30 research groups in PROs, 2173 scientific articles published by the interviewed scientists, and a representative sample of 78 private firms.     

Does Combinatorial Knowledge Lead to a Better Innovation Performance of Firms?

The knowledge base concept in the past was often applied in its “pure form”, i.e. it was assumed that there are dominant knowledge bases in particular sectors and firms shaping knowledge and innovation processes and related networks. For “analytical sectors” such as biotech, it has been argued that codified knowledge generated by universities and R&D organizations is the key for innovation, whereas “synthetic sectors” such as machinery innovate more incrementally by recombining existing knowledge often drawn from suppliers or service firms. Empirical literature has partly confirmed these patters, but also shown more complex knowledge processes. More recently it has been argued that combinations of different knowledge bases might enhance the innovation performance of firms. For example in “analytical sectors”, firms might benefit not just from new and basic knowledge generated by research, but also from recombining existing and applied knowledge or by drawing on symbolic knowledge. Combinatorial knowledge bases might also be relevant for “synthetic” and “symbolic sectors”, but in different forms. This study investigates for the ICT sector in regions of Austria if the reliance on combinatorial knowledge leads to a better innovation performance than the use of more narrow knowledge bases.     

Institutional Arrangements and Political Mobilization in the New Italian Regionalism: The Role of Spatial Policies in the Piedmont Region

The paper focuses on the resurgence of the regions as protagonists of the process of the state rescaling in many European countries. In the EU countries this process can be seen as a result of a mix of economic and institutional factors, which have been producing an increasing competition between the central governments and the regional authorities. The rise of the multi-level governance and of the so-called Euroregionalism has reinforced the role of the regional scale in the territorial development: on one hand, with new actors like agencies and organizations engaged in the economic development (FDI attraction, place marketing, innovation and learning), on the other hand by the resurgence of “old” actors, such as the regions, in many cases empowered by processes of institutional devolution. The literature has investigated this re-composition of the political space with regard to the “hollowing out” and the “rescaling” of the state. On the base of these theoretical underpinnings, we discuss some empirical evidence from the Italian experience, in order to show whether and how the regional structures are not only “spaces for policies”, but also “spaces for politics”. Over the last decade, the changes in legal framework, the external inputs from supranational levels of government—the European Commission—and the re-territorialization processes have introduced many elements of innovation in the role of the regions. By illustrating the case of the Piedmont Region, we try to demonstrate that the transition towards the region as an active space of politics can be mediated by the sphere of the policies, especially the spatial ones.     

Creating Critical Mass of Research Excellence in the Region: The Case of Scottish Research Pooling Initiatives

This article examines the recent development of, and policy rationale for “research pooling” initiatives in Scotland. Research pooling initiatives have been started with financial support from the Scottish Funding Council in order to form inter-organizational “international critical mass” of research excellence at universities at the regional level. This article examines the development of university cooperations at the regional level as vehicles for obtaining “strategic resources”. Then the “multi-level governance” structure of research pooling is explored in light of the future development of a Scottish regional innovation system (RIS). Particular attention is drawn to challenges concerning knowledge transfer, which is critical in integrating research pooling initiatives in the development of RIS in Scotland.     

Innovating in Cluster/Cluster as Innovation: The Case of the Biotechvalley Cluster Initiative

It has been noted that innovation seems to take place to a higher degree in clusters than elsewhere and we have lately seen a worldwide wave of emerging cluster initiatives and similar innovation policy projects. Some of these are realistic efforts based on existing regional strengths and partly existing cluster structures. Most, however, are grasping at straws. The latter is especially true when it comes to technologies such as IT and biotech. We could subsequently add a new label—“pathetic clusters”—to the already existing list of embryonic, emerging, world-class or stagnating clusters. But what do we make of such “pathetic clusters” (are they really pathetic)? Although economic geographers often tend to explain innovation (competitiveness) by looking at cluster dynamics, in such accounts, the cluster concept itself can actually function as an innovation, imposing similar effects on the economy as more familiar types of innovation would, i.e. by creating a local competitive edge. It is reasonable to believe that if “pathetic clusters” play important roles in regional economies, then they do so in the form of social and organizational innovations rather than as Porterian drivers of innovation and industrial dynamics on a large scale. This function of the cluster concept—as a local innovation—is the focus of the paper at hand.     

Globalization,Modes of Innovation and Regional Knowledge Diffusion Infrastructures

Firms increasingly transcend the boundaries of regional innovation systems in their search for technology and complementary capabilities, and only rarely can they build their knowledge bases on science system output alone. Whereas the former decouple firms from regional user–producer networks, the latter raises important questions concerning the role of local science and education system actors in industrial development. By applying the “modes of innovation” concept on a Norwegian region, this paper discusses how science and education institutions can respond to the challenges of knowledge base complexity and globalization. It concludes that such institutions may play a vital role in supporting knowledge-based development, albeit different from that of academic knowledge exploration followed by linear technology transfer to industry.     

Mapping the Middle East from Within: (Counter‐)Cartographies of an Imperialist Construction

Abstract: The “Middle East” is a readily accepted geographical category throughout much of the world. However, within this ambiguous geographic entity, both the term and the idea of the “Middle East” are often rejected as western‐imperialist constructs. Through a critical examination of an extensive sample of maps produced within several Arab states of the “Middle East”, I found that the regional designation “Middle East” is nearly nonexistent, while the Arab Homeland is unequivocally a more common regional category. However, the “Middle East” did occasionally appear in a few maps. This paper provides an explanatory examination of the normative cartographic discourses in this region, and more focused analysis of the atypical maps of the “Middle East”. My analyses render unique insights into how the “Middle East” is both contested and re‐created from within a western‐imperialist defined region.     

Firm Performance,Innovation Modes and Territorial Embeddedness

This paper seeks to identify different innovation modes and their territorial embeddedness, relating them to firms’ innovative and economic performance. We also analyse the relationship between the different innovation modes and the economic impact of the crisis on firms’ performance. These relationships are tested by regression and latent class models for the Portuguese population of firms, using a sample of 397 firms classified according to technological intensity, size and region. Our results show three different innovation modes: a DUI (Doing, Using and Interacting) mode, an STI (Science, Technology and Innovation) mode and a TEI (Territorial Embeddedness Innovation) mode in which territory plays a key role. These innovative modes are related in different ways to firms’ economic and innovative performance and also have marked distinctions in terms of resilience to the economic crisis. These findings lead to a reflection on regional innovation policy in the European context.     

Regional Innovation Policies in the Czech Republic and the Case of Prague: An Emerging Role of a Regional Level?

The aim of the paper is to provide an overview of the development of Czech innovation policy which started to get its shape in the first years of the 21st century. The article traces its origins to a number of interlinked factors—the introduction of European regional policy in the Czech Republic, the increased inflow of foreign direct investment into R&D-intensive sectors and also the devolution of power to Czech regions that were established in 2001 and gave a new, regional dimension to research and innovation policy. It pays particular attention to the process through which the regionally-based innovation policy advocated by the European Union (EU) has been translated and adapted in the context of a new EU member state. As an illustration of the efforts at the regional level to make a better use of the potential of R&D and innovation in the regional development, a case study of a regional innovation strategy of the City of Prague is analysed. The City of Prague was selected for a critical analysis of an innovation system and innovation policy due to the fact that it is a region with significant but until now not fully exploited innovation potential and, in addition, its first innovation strategy has been recently adopted. The innovation strategy is closely scrutinized and the process of its elaboration is critically examined within the European and especially national context. The authors demonstrate that there is a lot of conceptual ambiguity and confusion associated with the process of transferring the experiences of Western European regions to the Czech Republic. The authors believe that at least some of their observations and analysis of weaknesses of the process through which the regional innovation strategy (RIS) has been carried out will have relevance for other Czech regions and even for other regions in the new EU member states.