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.     

Information without frontiers: Financial services,EC regulation and European cities

Using Castells' notion of the informational mode of development, this briefing investigates the changing hierarchy and function of European cities in the light of EC policies. The EC regulatory regime is identified as an integral part of the informational mode of development, setting the parameters within which the corporate sector operates. It is argued that the purpose of information flows is mainly control. A new constellation of European cities is anticipated which depends to a large extent upon the degree to which cities, competing against one another, are able to establish central urban complexes. These are based on the agglomeration economies between corporate headquarters, financial institutions and producer services at the urban level, and information flows at a global level of communications. Among the vast array of EC policies the paper identifies those in support of innovation and telecommunications, the deregulation of financial services, and regional policy as crucial for urban development. Given the requirements of infrastructure, institutions, professional skills and regulatory competence, existing metropolitan centres will capitalize on their comparative advantage and attempt to build on these in the future. These developments are likely to foster further concentration of capital and investment in a few major centres, thus counteracting other EC policies of regional equalization and harmonization. It is argued that these and other contradictions are an amplification of those already afflicting the capitalist state at both national and local levels. The paper also offers an opportunity to reassess aspects of traditional location theory, in particular central place models, in the light of these developments and finds them wanting. The same conclusion is reached regarding the cost‐benefit calculus of the Cecchini Report.     

Regional Innovation Support Systems: Recent Trends in Germany and East Asia

Since the beginning of the 1990s, one can observe a clear shift in the aims of regional policy in industrialized countries from reducing regional inequalities to developing endogenous small and medium-sized enterprises (SMEs) and innovation in regions through regional innovation support systems. Innovation support systems are defined as a group of actively cooperating organizations that support the innovativeness of SMEs. An innovation support system consists of all agencies found in three support stages, namely the provision of general information, technological advice and joint R&D projects, between firms (of which technology-following SMEs are the main group), higher education institutes (HEIs) and public research establishments (PREs). Agencies found in these stages try to help to solve innovation problems mainly of technology-following SMEs by either giving them advice themselves or by referring them to other agencies in a further stage of support. The agencies can be mainly supra-nationally, nationally or regionally initiated. This paper aims at comparing these regional innovation support systems in Germany and East Asia, that is Japan and South Korea, both concerning the instruments used, their impact on regional economic development, their level of organizational embeddedness in regions and the ability of regions to coordinate innovation support policies. The main conclusions of the paper are that there are similarities between the regional innovation support systems found in the countries when it comes to policy instruments, but that the countries differ concerning their level of regional embeddedness and the abilities of regions to coordinate innovation support policies. The paper also tentatively concludes that in countries where regions have the ability to coordinate policies into integrative innovation support systems, the impact on regional economic development tend to be larger than in countries where these abilities are lacking, that is where dirigiste and grassroots support systems prevail. One important explanation for the different coordinating abilities lies in the different political-administrative systems found in the studied countries (centralized in South Korea versus federal in Germany). Other factors explaining differences are: a time lag of development policies between countries, differences between the history of supporting SMEs in regions, supra-national support frameworks, the commitment of the political leaders in regions, collective trust and the size of countries.     

Votes and markets: Designing policies to increase the influence of individuals

The design of public policies is usually carried out from the perspective of policymakers. This paper views policy design from the perspective of ordinary individuals, seeking to identify ways in which policy design may increase the capacity of citizens to influence the provision of welfare services of significance to their everyday lives. The first section demonstrates that the phrase ‘welfare state’ is a constricting misnomer; welfare in society is the sum of activities in the household, the market and the state. Secondly, the paper considers characteristic consequences of the allocation of welfare by the state, the market and the household. On this basis, the third section reviews the implications for individual influence on public policies of policy designs that are intended to provide more popular participation; bring the state further in; and the use of market alternatives.     

Evolution of Innovation Policy in Emilia-Romagna and Valencia: Similar Reality,Similar Results?

This paper examines the evolution of regional innovation policy in Emilia-Romagna and Valencia, two regions with similar economic features that implemented close innovation policies in the 1970s and 1980s. We investigate whether their similarities have led to parallel targets, policy tools and governance developments. We show that innovation policy in both regions suffered from the effects of privatization, budget constraints and changes to manufacturing during the 1990s and we highlight the consequences. Although Emilia-Romagna experienced deeper changes to its innovation policy, privatizations and/or the replacement of public funds promoted commercial approaches and induced market failures in both regions. The worst effects of these policies were the implementation of less-risky innovation projects, the shift towards extra-regional projects and markets, and the favouring of large firms.     

New path development between innovation systems and individual actors

ABSTRACT

This special issue is devoted to studying mechanisms that may stimulate or hamper the renewal of existing industry paths and the growth of new paths. In this guest editorial, we look closely at the role of policy instruments in situations where the majority of regional industries are embedded in strong regional and/or national innovation systems. This theme is currently very relevant in (parts of) Norway, where the dominant oil sector is downsizing and new growth paths are required to maintain employment and welfare. The guest editorial presents a theoretical framework for new regional industrial path development, followed by a discussion on how two Norwegian policy tools contribute to new path development. The 10 articles of the special issue study different aspects of new regional industrial path development based on cases in Norway, Sweden and Spain. Some papers also discuss the role of policy in new path development. Based on the findings from these articles, we believe that new path development is fostered by policies that incorporate both actor-based and system-based elements. Such policy mix could provide a vital push towards new path development.     

Kin state non‐interventionism: Albania and regional stability in the Western Balkans

This article provides a comprehensive analysis of Albanian regional policy from 1992 to 2013. Situated in a conflict‐ridden region and surrounded by co‐ethnics living in Kosovo, Macedonia, Montenegro and Serbia, Albania has successfully resisted pressure to undertake interventionist regional policies. However, there are no structured accounts as to how Albania fashioned its non‐interventionist regional policy. This article fills this gap and retraces the development of Albanian regional policy as a function of its inter‐mingled domestic politics and regional and international dynamics. The article concludes that the Albanian regional approach has been shaped by its legacy of communist isolation, pro‐Western predisposition and recognition that accommodation of Western interests would overcome its constraints and advance the rights of Albanians living in the Western Balkans. The analysis is important not just for understanding Albania's actions but also for disentangling the relationship between regional policy, nationalism and a kin state's domestic and international constraints.     

Balancing Competitiveness and Cohesion in Regional Innovation Policy: The Case of Finland

This article sheds light on the relationship and tension between competitiveness and cohesion as undercurrents and continuous causes of controversies in the regional innovation policy. The in-built problems in regional innovation policy that emerge because this policy is essentially a synthesis of different policies with different rationales are contemplated. Empirically, this article outlines the main phases of evolution and drivers of development in the Finnish regional innovation policy. It also discusses the recent developments from the perspective of regional (and national) competitiveness and cohesion nexus. These empirical outlines are then used to feed the views back into the discussion on a more theoretical level.     

When regional innovation policies meet policy rationales and evidence: a plea for policy analysis

In spite of recent advancements regarding regional innovation policy rationales and evidence, there are few analyses about the actual features of existing regional innovation policies. Nevertheless, a policy analysis perspective is important in order to recognize their distinctive patterns across regions, and to understand how rationales and evidence can be translated into policy-making. To this purpose, this paper develops a framework to study the extent to which regional innovation policies have changed during the past few years. Since the mid-2000s, there has been an important development of innovation policy rationales, advocating for more specialization; likewise, greater data availability at the regional level has allowed more sophisticated assessment of innovation performance. Finally, the crisis since 2008 has had ravaging effects in some regions, with job losses and severe economic sluggishness. Therefore, it is reasonable to expect transforming dynamics in regional innovation policies. Against this backdrop, the paper compares the institutional frameworks and budgetary priorities of four Spanish regions during the period 2001–2014: Catalonia, the Basque Country, Galicia and Andalusia. In so doing, it aims at studying the extent to which regional governments have readily addressed past and new challenges related to their regional innovation system, and if so, how.     

Creation and Alignment of the Eco-innovation Strategy Model to Regional Innovation Strategy: A Case from Lahti (Päijät-Häme Region), Finland

This study focuses on the importance of eco-innovation in regional innovation strategy and policy development. It is conducted to get an in-depth understanding and learning about eco-innovation at the regional level and to draw some principles that are important in creating and aligning the eco-innovation strategy model to regional innovation strategy. The study highlights the new eco-innovation strategy model called SAMPO which was created and developed through a series of multi-stakeholder consultations which embodied the strengthening of the region's expertise—learning and knowledge-generating environment, design and innovation. These three areas of regional expertise are translated in the SAMPO model as three spearheads of innovation activities categorized as practice-based innovation, eco-design and sustainable innovation. Some principles are derived from the creation of the SAMPO model and put forward as strategic learning points in regional innovation strategy. The SAMPO model as positively acknowledged by the Päijät-Häme Regional Council, business clusters, research institutes and academic organizations may serve as a new framework that is useful in formulating and recreating eco-innovation policy in the region.     

Innovation,R&D and Technology Transfer: Policies towards a Regional Innovation System. The Case of Lombardy

The evolution of Lombardy's economic structure and international position led the regional government to build up a network of public and private stakeholders in the effort of promoting the creation of new knowledge and supporting innovation at local level. In this article a technology picture of the region and the main policy actions undertaken in recent years in Lombardy to promote a nest of linkages within actors, moving along the approach of regional innovation systems are presented.     

Sectoral Versus Territorial Regional Planning and Development in Norway

New regional policies in Norway and many other countries try to empower their regions through creating a balance between central governing with emphasis on redistribution of activities and resources, and local mobilization with emphasis on self reliance, innovation and learning by doing. In Norway municipalities and counties have for a long period had this double function, but we now see that the vertical policy of implementing national welfare policy has grown and become dominant. As a consequence, the horizontal policy of social mobilization has been neglected, and has to some extent been taken over by inter-municipal and interregional organizations. Normally, these organizations are in practice organized as regional development agencies. They seem to be vulnerable political institutions that seek legitimacy from--and need acceptance and support from--both territorial and sectoral governments. The regional planning process is regarded as an important tool in their political institution building process. In this paper I want to explain how regional planning and institution building in Norway in practice have moved towards a two-parallel system.     

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.     

Geographies of Monetary Exclusion in Kenyan Slums: Financial Inclusion in Question

Financial inclusion has become a prominent development policy objective. Its promotion rests on the understanding that poverty and underdevelopment mainly result from financial constraints that individuals face. Better access to financial services, in particular via the use of mobile money services, is supposed to lift these constraints and allow for growth and development. After outlining this dominant approach and detailing its theory of change, this article challenges it on the basis of the mesoeconomic study (at territorial level) of areas particularly targeted by financial inclusion policies: Kenyan informal settlements. The study of their geography of money shows how the socio-spatial flows of money shape people's economic constraints and opportunities. Based on this empirical account, it is argued that the poor are, first and foremost, in a situation of monetary exclusion, rather than being primarily financially constrained. The article conceptualizes monetary exclusion and highlights the theory and policy implications of this situation.     

Is there a need for a new cultural policy strategy in the Nordic welfare state?

Cultural policies have existed as a structural element of the Nordic welfare states from the very beginning. Today these policies are being re‐evaluated, and there are some indications that they may be gradually dismantled. Local cultural politicians in municipalities (cultural boards) and professionals (e.g. cultural secretaries) have become uncertain and anxious about their future role and legitimacy.

This new situation is addressed and analysed by using the ideas of Goffman's on‐and off‐stage representations, and Foucault's governmentality. Important background factors in the development of cultural policies both in the past, present and future are identified and used to explain the present unclear situation as a reflection of an existing cultural hierarchy or hegemony (see Gramsci). This paper also discusses the role of cultural professionals and local cultural politicians in the implementation of the Nordic cultural policies with references to examples from Finland and Sweden.     

Combined Innovation Policy: Linking Scientific and Practical Knowledge in Innovation Systems

New research indicates that firms combining the science-based STI (Science, Technology, Innovation) and the experience-based DUI (Doing, Using, Interacting) modes of innovation are more efficient when it comes to improving innovation capacity and competitiveness. With regard to innovation policy, the STI mode calls for a supply-driven policy, typically aimed to commercialize research results. The DUI mode suggests a demand-driven policy approach, such as supporting the development of new products or services to specific markets. This article analyses how the two types of innovation policies and the two innovation modes can be combined in regional innovation systems (RISs). The analysis builds on studies of the food industry and related knowledge organizations in two counties, Rogaland County (Norway) and Skåne County (Sweden), and two policy initiatives (NCE Culinology and Skåne Food Innovation Network) aimed at strengthening the innovative capability of the RISs. The analysis indicates that policies aimed to link science- and user-driven innovation activity should focus on building absorptive capacity of DUI firms (e.g. through increased scientific competence) and implementation capacity of STI firms (e.g. through increased market and process competence).     

From Cohesion to Territorial Policy Integration (TPI): Exploring the Governance Challenges in the European Union

The European Union (EU) is searching for new approaches to manage problems that span different policy sectors. In the regional policy field, incompatibilities between the EU's territorial development objectives and its transport, agricultural, competition and environmental policies, are well known. The need to integrate territorial policy concerns into these sectoral policies (territorial policy integration or “TPI”) has recently emerged as a key policy priority. This article examines the EU's capacity to implement TPI. It does so in relation to two member states (Germany and the Netherlands) and the European Commission. It finds that the administrative implications of implementing TPI are far more demanding than any of these actors are currently able to handle. Moreover, some EU-level networks are potentially relevant to TPI, but these are mostly focused on regional policy matters (i.e. they are relatively inward looking). If these administrative issues are not taken more seriously, “integration” will struggle to make headway in an EU which is notoriously sectorized.     

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.     

Transformation of regional innovation policies: from ‘traditional’ to ‘next generation’ models of incubation

This paper explores a widely employed instrument of regional innovation policy: the innovation incubator. It proposes that incubation approaches are moving away from a ‘traditional’ approach strongly premised on physical infrastructure and high-technology, to a more interactive, participatory and social mode of innovation, in line with broader developments in innovation policy and theory. To practically illustrate this shift, we take two cases: a ‘traditional’ style of incubation in Wales, UK, and a ‘next generation’ incubation programme in Finland. This paper reflects on incubators as a mode of regional innovation policy, both past developments and future trends, to ensure that new policies and programmes learn from best (and indeed, worst) practice and build on, rather than replicate, past approaches.     

Place-based innovation policy for industrial diversification in regions

New industrial innovation policies like smart specialization aim at boosting economic growth by diversification towards more complex and higher value economic activities. This paper proposes a conceptual and analytical framework to support the design and implementation of such policies considering place-specific preconditions, particularly the differentiation of the regional system of innovation and entrepreneurship and the degree of current industrial diversification. The paper expands on the links between these preconditions and the barriers and opportunities for industrial diversification. Consequently, it proposes an archetypical place-based policy framework covering overall policy objectives as well as measures at the level of actors, networks, and the institutional and organizational support structures.