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.     

Enemies to Allies: The Role of Policy‐Design Adaptation in Facilitating a Farmer–Environmentalist Alliance

In the period 1985 to 1996, agricultural conservation policy in the United States underwent a fundamental transition from a focus on policy design elements that emphasized short‐term economic returns for farmers and long‐term productivity to a focus on design elements that emphasized systemic environmental concerns. Although farmers' concerns with the environment were doubtlessly real, this adaptation of design elements allowed the agriculture policy community to gain the support of the environmental community for programs that offered new ways to channel short‐term economic support to farmers. The adaptation of design elements was triggered by the severe economic threat farmers began to experience in the late 1970s. This article investigates the language adaptations that facilitated the changes in agricultural conservation policy by analyzing the five policy‐design elements developed by Ingram and Schneider.     

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.     

Policies of related variety in practice: the case Innovation Session Method

The article describes the foundations of related-variety policies in practice, delineating the roles that related variety and fruitful distances may play in innovation policy. The main focus is on methods of managing related variety. Three types of regional collaboration and renewal processes are identified. By presenting empirical research on the Innovation Session Method developed in the Lahti region of Finland, the article provides insights into the practical implementation of innovation policy based on related variety. This study finds that Innovation Sessions appear to function quite well in the related-variety context, serving as a practical implementation of innovation policy that is in transition. The role of an optimal combination of distances is highlighted. This study contributes to the development of effective methods for innovation policy.     

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.     

Regional Technology Initiatives: Some Insights from the English Regions

The paper presents findings from recent research on the policy role and experience of a number of Regional Technology Initiatives (RTIs) aimed at supporting innovation and technology transfer, particularly in small- and medium-sized enterprises (SMEs), in the English regions. The findings are discussed in relation to recent theoretical debates around innovation processes within SMEs, regional innovation systems and learning/actor networks. A primary concern is to understand the factors shaping the evolution of such initiatives and the lessons to be learnt from the experience to date. In this respect discussion focuses on four key issues: the funding driven nature of most of the initiatives; the move away from simply making new technology more accessible to a more client-need centred approach; the structural and cultural obstacles to improved links between academia and SMEs and how some of these can be ameliorated; and the issue of strategic integration between business support agencies within a region to support longer term economic development agendas. The paper concludes that the long-term viability of the RTIs will be dependent on their continuing capacity to anticipate and respond to an evolving, and to some extent uncertain, regional policy context.     

The Geography of Knowledge Transfer and Innovation in Biotechnology: The Cases of Scotland,Sweden and Denmark1

This paper addresses themes at the heart of policy debates on innovation systems and concentrates on the process of progressive transformation that has been affecting the therapeutic and diagnostic sectors as a result of the application of molecular biology. The focus is on the relationship between firms' locational choices, innovation policy and industrial dynamics. The issue of knowledge transfer is explored and the discussion addresses the theoretical controversy between two contrasting approaches: while some describe open networks and collaboration as means of enhancing competences for learning, others argue that, as intellectual assets are protected by property rights, knowledge adheres to specific locations mainly as a consequence of scientists' immobility. Then it is assessed whether knowledge transfer, in its different forms, is prevalently local or tends to occur on a global scale. Finally, the perceived effectiveness of some policy measures directed to enhance connectivity among players holding complementary knowledges is examined. Countries such as Sweden, Denmark and Scotland, who have pioneered the implementation of cluster thinking in Europe, provides an ideal setting to conduct this empirical study.     

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.     

The Implications of Policy Stability for Renewable Energy Innovation in the United States, 1974–2009

Government support and commitment are of particular importance for renewable energy technology innovation activities, which are highly contingent on policy and market uncertainty. The research focus of this article is to examine the relationship between policy stability in public resource allocation and policy outcomes in renewable energy technologies. With time‐series cross‐sectional analyses, we test effects of both the stability and magnitude of federal R&D expenditures on patent applications in five renewable energy sectors (i.e., solar, wind, hydropower, geothermal, and bioenergy) from 1974 to 2009. The findings show that technology innovation is affected by both the magnitude and stability of government financial commitment. Nevertheless, when industries perceive government support over longer time frames, the magnitude effect loses explanatory power to the stability effect. In addition to federal R&D expenditures, policies pertaining to technology commercialization and marketization are a critical determinant of innovation activities. This study demonstrates that incremental, predictable, and credible expenditures facilitate renewable energy technology development. Conversely, a boom‐bust cycle of resource support fails to translate policy goals into intended results.     

Federalism and Entrepreneurship: Explaining American and Canadian Innovation in Pollution Prevention and Regulatory Integration

Conventional wisdom provides an increasingly strong endorsement of far-reaching decentralization and delegation of authority to bureaucratic agents as the most likely mechanisms to attain such central environmental policy goals as pollution prevention, cross-media regulatory integration, and development of reliable measures of environmental outcomes. Canada would appear an unusually fertile context for such Innovation, given its far-reaching deference to individual provinces and their environment ministries in environmental policy. Comparative analysis of select sub national governments in Canada and the United States suggests that the states in general are far ahead of their provincial counterparts in most of these areas of innovation. Despite all the opprobrium heaped on the American environmental policy system, a combination of federal policy tools and state policy entrepreneur ship appear to contribute directly to this innovation in some states and are almost completely absent in the Canadian system. These findings suggest a need for careful study of the mix of intergovernmental policy tools and principal-agent relations most likely to realize desired environmental policy goals.     

Finnish Mosaic of Regional Innovation System—Assessment of Thematic Regional Innovation Platforms Based on Related Variety

The emphasis of Finnish innovation policy has very much been on promoting actions that can be labelled as science–technology–innovation mode of innovation, which is based on the production and use of codified scientific and technical knowledge. However, recent research has emphasized also the importance of more experienced-based mode of learning and innovation, which can be labelled as doing–using–interacting mode of innovation. This study is an attempt to shed light on the current development phase of Finnish innovation system facing the new paradigm. The Finnish innovation system is seen as a mosaic of regional innovation systems. The regional innovation systems are analysed through a developed framework including elements of theories of innovation systems and cluster theories as well as two recent national-level strategy documents. One of the main concepts of the study is related variety in regional innovation platforms. This study also aims at creating a pragmatic framework for describing related variety at the regional level by combining aspects from two theoretical frameworks. The empirical data were gathered in a series of workshops in all the Finnish regions during the year 2008. The result maps Finnish thematic regional innovation platforms fuelled by related variety.     

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.     

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).     

REGIONALIZING “MODE 2”? THE ADOPTION OF CENTRES OF EXCELLENCE IN SWEDISH RESEARCH POLICY

This article contributes to the ongoing debate on the role of university research for innovation and economic growth, a debate highly influenced by concepts such as Mode 2 and regional innovation systems and clusters. A prominent trend in many EU and OECD countries is to direct research funding towards so‐called Centres of Excellence (CoEs) in order to stimulate the industrial output of scientific research. The implementation of the CoE approach is viewed as an attempt to bridge research and innovation policy. By using Sweden as an example and providing an overview and critical discussion concerning Swedish research policy during the period 2001 to 2007 we show that the rhetoric within research policy has changed and become increasingly intertwined with innovation policy. In practice, however, this is not as evident. The study draws on (a) an analysis of policy literature pointing out regulatory and organizational changes concerning the increasing emphasis on linking research to competitive industrial milieus, and (b) a comprehensive database including 110 CoEs, presenting a detailed picture of university‐industry collaboration, cross‐disciplinarity, and prioritized sectors. We fiind that the CoEs account for a relatively small share of government funding, but may however have a strengthening impact on particular research milieus and industries, especially in the life sciences. Additionally, although contemporary policy rhetoric appears to highlight steering funding to geographically‐concentrated milieus, thereby linking leading university research to regional industrial clusters, this has only been manifested in a few cases – notably in the Vinnväxt programme run by Vinnova, the national agency promoting innovation systems.     

Evaluation of RTD in regional systems of innovation

This paper focuses on the evaluation of research and technical development (RTD) in regional systems of innovation (RSIs). It is argued that regional systems of innovation are distinctly different from national systems of innovation, and, thus, different approaches are called for in the evaluation of RSIs. The most relevant aspects of RSIs, from the evaluation perspective, relate to their largely tacit and context‐specific character. In this paper, the concept and characteristics of RSIs are reviewed, and the implications of these for evaluation practice are discussed. Pointers for good practice in the evaluation of RTD in RSIs are listed.     

Changing regional systems of innovation in Greece: the impact of regional innovation strategy initiatives in peripheral areas of Europe

In the context of convergence and cohesion between the European regions, the promotion of innovation in regions that are in different phases of development has been a central objective of European regional policy. For this purpose, the European Commission has launched many innovation schemes and many European regions have conducted initiatives of this kind. In this article, based on the implementation of successive European regional innovation projects in three Objective 1 regions in Greece, namely Central Macedonia, Western Macedonia and Thessaly, the trajectory and the changes that have occurred in their system of innovation are examined. At the outset, considering the outcomes of the first phase of the RTP/RIS exercise, the obstacles in forming these regions' dynamic innovation systems are identified. Thereafter, upon the outcomes of the follow-up exercise of RIS+projects, an imminent change in these regions is observed, highlighting the marking of an innovation-oriented policy addressed to create a supporting institutional framework and shaping the regional innovation environment. Based on these observations, it is argued that European regional policy, via these innovation schemes, has significantly contributed to the reinforcement of innovation systems of participating regions.     

Embracing the future: path transformation and system reconfiguration for self-driving cars in West Sweden

ABSTRACT

The past years have witnessed a surge of academic interest into how new industrial paths are developed in regions. Transformation processes of existing regional industries have received less attention. This article focuses on radical innovation-based renewal processes of established paths and investigates how regional innovation systems are tackling challenges related to path transformation. Drawing on insights from the regional and technological innovation systems literatures, we develop an analytical framework that elucidates the relation between path transformation and system reconfiguration. The framework suggests that regional innovation system elements are created or adapted to (i) target the build-up of system functions regionally; (ii) link up to system functions in other locations, and (iii) transplant system functions from elsewhere. The analytical framework is applied to a case study of the transformation of the automotive industry in West Sweden towards self-driving cars. The empirical analysis provides support for the importance of the three types of system reconfiguration and emphasises the relevance of different types of assets. Furthermore, it highlights how actors tend to utilise previous networks and positions in global innovation systems rather than turning to the development of system functions regionally as the ‘default option’ of system reconfiguration.     

The Role of Universities in Regional Development: Conceptual Models and Policy Institutions in the UK,Sweden and Austria

The literature on universities’ contributions to regional development is broad and diverse. A precise understanding of how regions may draw advantages from various university activities and the role of public policy institutions in promoting such activities is still missing. The aim of this paper is to provide a framework for analysing universities’ contributions to regional economic and societal development in differing national contexts and the policy institutions that underpin them. To do this, we review four conceptual models: the entrepreneurial university model, the regional innovation system (RIS) model, the mode 2 university model and the engaged university model. The paper demonstrates that these four models emphasize very different activities and outputs by which universities are seen to benefit regional economy and society. It is also shown that these models differ markedly with respect to the policy implications and practice. Analysing some of the public policy imperatives and incentives in the UK, Austria and Sweden, the paper highlights that in the UK, policies encourage all four university models. In contrast, in Sweden and Austria, policy institutions tend to privilege the RIS university model, whilst at the same time, there is some evidence for increasing support of the entrepreneurial university model.     

Governance,Policy Innovation,and Local Economic Development in North Carolina

This article examines the extent to which local governments in North Carolina embrace innovation in their economic development activities. The study makes a distinctive theoretical contribution by examining the relationship between innovation in how economic development policies are administered and implemented (using concepts associated with governance and NPM), and innovation in what is substantively done (policy innovation). An analysis of the results from a statewide survey of local governments in North Carolina finds that certain governance/management variables are significant determinants of economic development policy innovation. An implication of this finding is that new ways of doing economic development may go hand‐in‐hand with new ways of governing and managing. Many of the governance/management variables are also positively associated with the use of a greater number of traditional economic development strategies and tools. This suggests that local governments may find it helpful to be innovative in how they implement economic development irrespective of the substantive policy orientation of particular strategies and tools.