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.     

What Makes SMEs more Likely to Collaborate? Analysing the Role of Regional Innovation Policy

The last 20 years have witnessed the diffusion of regional innovation policies supporting networks of innovators. The underlying aim of these policies is to encourage firms, particularly small and medium-sized enterprises (SMEs), to undertake collaborations with organizations possessing complementary knowledge. Focusing on a set of SMEs that have participated, over time, in several innovation networks funded by the same regional government, the paper investigates how their relationships have evolved with respect to the following aspects: (i) reiteration of pre-existing relationships as opposed to experimentation with new relationships; (ii) collaboration with organizations possessing complementary rather than similar knowledge and competencies; (iii) creation of local relationships rather than experimentation with extra-local collaborations; (iv) reliance upon intermediaries to connect with other organizations. Our findings reveal that the involvement in these policy-supported networks changed the firms' relational patterns, leading them to collaborate with a wider variety of agents than those with whom they were linked before the policies. Sectoral heterogeneity had a negative effect on the probability of collaborating, while co-localization increased the likelihood of collaborating. Mutual involvement with intermediaries also had a positive effect. However, in the case of firm-to-university relationships only specialized intermediaries were likely to perform a positive role and, therefore, encourage networking.     

Do Regions Make a Difference? Regional Innovation Systems and Global Innovation Networks in the ICT Industry

Access to global innovation networks (GINs) has been unequal across the regions of the world. While certain regions are considered knowledge hubs in GINs, others still remain marginalized; this points to the role of regional innovation systems (RISs) in the emergence and development of GINs. Using firm-level data collected through a survey and case studies in 2009–2010, this paper systematically compares the patterns of global networks in the information and communications technology industry in a selection of European, Chinese and Indian regions. The results show that GINs are more common in regions which are not organizationally and institutionally thick, suggesting that GINs may be a compensatory mechanism for weaknesses in the RIS.     

Regional Innovation Systems and European Research Policy: Convergence or Misunderstanding?

In this article the question of interfacing, innovation policy and regional policy at the European level is addressed. Under which conditions will the new European research policy, relying on networks of centres of excellence, be compatible with 'cohesion' objectives? Since there will be no unique regional development scheme based on science and technology, how can policy-makers take into consideration the variety of local contexts? The analysis focuses on the fact that the concept of regional innovation system can be misleading for describing the territorial context. However, a cognitive approach seems possible, based on the notion of regional competence to innovate. The analyses are illustrated with empirical results concerning the French regions, and especially Alsace.     

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.     

Exploring the Multiple Roles of Lund University in Strengthening Scania's Regional Innovation System: Towards Institutional Learning?

Universities are increasingly seen as potential contributors to regional innovative capacity by serving as local knowledge conduits, bringing global state-of-the-art science and technology into the region. In practice, however, more active university engagement with their regional innovation systems is not as straightforward as it may seem. The article uses examples from a successful case by which less successful regions could be inspired. Our analysis considers how various forms of technological learning intersecting within Lund University around three distinct sectoral engagement efforts have been built up and how this created new structural regional innovation capacity.     

Innovation and Regional Development,Do European Structural Funds make a Difference?

The article draws on a thematic evaluation of Research Technological Development and Innovation (RTDI) related actions supported by the Structural Funds to assist declining industrial areas or Objective 2 regions, during the period between 1989 and 1999. Over the 10 year period, three main approaches were identified in Objective 2 regions, the last two becoming predominant during the latter part of the period: technology push with funding of large projects such as science parks and research facilities; technology transfer with measures to disseminate technology; and demand pull with clearly identified and self contained RTDI priorities. While drawing lessons from the last decade, the paper also integrates some preliminary observations on structural funds investments for innovation during the current 2000–2006 programming period and concludes with a review of possible scenarios for the further development of RTDI in lagging regions in the framework of the Lisbon Strategy.     

Piloting Regional Innovation or Much Ado about Nothing?—Evaluating the R&D Policy Initiative of Nordland,Norway

This article evaluates the results of almost a decade of experience with regional R&D development and implementation for enhanced innovation in the county of Nordland, Norway. Following a 2002 national devolution initiative, the county of Nordland was the first among Norwegian counties to coin and implement a distinct R&D policy for business-related innovation and development. This was done by setting up a broad regional partnership, framing a regional strategy and by coordinating substantial budgetary resources to implement the strategy. The evaluation describes the results of this process as ambiguous. This article looks at the process from three perspectives. First, we look at the organizational side of how the policy formation and implementation processes have performed. Second, we evaluate the business community response to the policy initiative to see whether any signs of altered behaviour can be found. Third, we look at how the partnership dynamic can explain policy outcomes. Theoretically and policy-wise we then discuss how our findings contribute to new insights in the field of analysing and generating regional innovation policy.     

When Innovation Does Not Pay Off: Introducing the “European Regional Paradox”

In the last few decades, innovation has been widely recognized to be the engine of wealth and prosperity as it intensifies competition and increases productivity, which both in turn lead to significant economic benefits such as higher income per capita and increased employment. However, empirical evidence in this article illustrates that innovation seems not to have paid-off for some of the most innovative regions in Europe, as these regions, despite being highly innovative, grow at a slower pace than their national counterparts, as well as presenting poor economic outcomes such as low income per capita and high unemployment rates. The aim of this article is to communicate this intriguing observation to both innovation scholars and to policy-makers, since its very existence seems to cast doubt not only on one of the most principal assumptions in the field of innovation studies (i.e. innovation as the engine of growth) but also on one of the most fundamental pillars currently underpinning several regional, national and supranational economic policies.     

Innovation Networks and Regional Development—Evidence from the European Regional Innovation Survey (ERIS): Theoretical Concepts,Methodological Approach,Empirical Basis and Introduction to the Theme Issue

A general consensus exists in the debate on innovation-oriented regional development, in which cooperation in innovation between manufacturing firms, service firms and research institutions continues to grow in importance with respect to business success and the economic performance of a region—at least for some region types. The academic discussion, thus far, has been shaped by a large number of outstanding theoretical studies focusing on this topic from the perspective of the innovative milieu concept, the network theory (spatial version), the regional innovation systems approach or the transaction cost theory. Up to now, comparative empirical studies have not been performed evaluating the significance of innovation networks over a sufficiently large and statistically representative data set for the various types of regions. This is the goal of this issue of European Planning Studies, which is introduced in this article. Briefly, the basic concepts for explaining network-oriented regional development are described and the essential features of the European Regional Innovation Survey (ERIS) are presented—developed by a research team of German economic geographers and regional economists. Between 1995 and 1999 ERIS carried out three extensive surveys in 11 European regions with a total return of 8635 questionnaires, in an effort to identify, systematize, and quantify linkages between innovative players. The question of the range of such innovative linkages plays a central role in this analysis.     

Mapping the Geography of R&D: What Can We Learn for Regional Innovation Policy in the Czech Republic and Beyond?

Administrative regions do not necessarily correspond to areas that are homogenous in terms of innovation intensity. Although this has been recognized in the literature, quantitative evidence that explicitly considers this problem is rare. Using spatial exploratory analysis on detailed regional data derived from a census of R&D performers in the Czech Republic, we identify local spatial clusters of R&D activities and assess the extent of their (mis)match with administrative borders. Overall, the results support the arguments for regionalization of innovation policy. However, the existing policy units do not appear well suited for this purpose. On one hand, there is a need for policy coordination between multiple administrative regions. On the other hand, however, there are diverse patterns within them. Similar problems are likely to haunt the regionalization process in many other countries, which is alarming, as the regional accent of innovation policies becomes ever more vehement over time.     

The Micro-foundations of Regional Branching—the Case of Digitization of Publishing

Abstract

Theorizing within evolutionary economic geography on regional branching of industries has so far been depicted as evolving through routine replication among different economic actors that hold various degrees of relatedness. Methodologically, related variety and unrelated variety have been studied quantitatively, treating relatedness between economic agents as pre-defined industrial classifications. This represents a need for a complementary qualitative and in-depth understanding of how knowledge is re-combined in various settings. Based on a qualitative case study in the publishing industry, whose technological platforms and business models are currently facing severe challenges associated with digitization, this paper seeks to improve our understanding of how knowledge is re-combined and re-applied in various ways. The paper explores and discusses how this industry branches out into new activities, and reflects upon the channels through which these processes unfold. How is the old and the new in the economy bridged? How is the relationship between specialization and diversification played out? In this sense, the paper seeks to contribute to improving our understanding of the epistemic micro-foundations for regional branching and economic development.     

European Regional Studies: A Coming of Age?

This article reviews current developments in European regional studies. A brief history of settlement archaeology as practiced in Europe is followed by a discussion of new approaches to regional analysis and surface survey. I argue that recent, steady investments in the technology, methods, and theory of regional archaeological analysis and surface survey have stimulated advances in the study of settlement patterns and settlement pattern change through time in many parts of Europe. When innovative technologies (e.g., remote sensing, GPS, GIS), methods (e.g., geoarchaeology, “siteless” survey), and new theoretical frameworks (both processual and postprocessual) have been combined, breakthroughs in our understanding of European settlement have resulted. In the last half of the article, I describe some of these breakthroughs in a broad discussion of European settlement history, beginning with the earliest prehistory of Europe through the Middle Ages. Shifts in perspective are particularly apparent for phases of transition: from the Middle to Upper Paleolithic, Paleolithic to Mesolithic to Neolithic, and with the rise and expansion of states.     

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 and Function of the Terracotta Warriors of Emperor Qin Shi Huang’s Mausoleum

Terracotta warriors are an important part of the burial system of the Emperor Qin Shi Huang’s Mausoleum and are the funerary objects of military themes. The appearance of terracotta warriors broke through the architectural structure of burial pits in early tombs, expanded the scale and object of burial, and realized the complicated and hierarchical concept of burial. Its emergence is related to the blending of the pre-Qin tradition and the concepts at that time, such as the change of the concept of human sacrifice, the rise of the burial of figurines, the change of the concept of funerary objects and objects for the living, etc., together with the ruling strategy of the Qin Empire and Emperor Qin Shi Huang himself, which contributed to the formation of terracotta warriors.     

The Regional Allocation of Public Investment: Efficiency or Equity?

In this paper we examine the effect of public investment on the regional economies of Japan. The efficient policy for regional allocation of public capital is to invest in highly productive regions, whereas the actual policy pursues equity goals by allocating more public investment to depressed regions. We determine the effects of this equity- oriented allocation by estimating the aggregate regional production function and calculating the productivity of public capital stock for each region, using a cross-sectional time-series data set. Our results show that the marginal productivity of public capital has recently declined in most depressed regions, whereas the productivity in developed regions (e.g., Tokyo, Osaka) has increased slightly. We compare alternative policies of allocating public investment and their effects on the regional and national economies using numerical simulations. We then quantitatively describe the trade-off between the efficient and the equitable allocation of public investment.     

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.     

The End of the Beginning?: Welsh Regional Policy and Objective One

'West Wales and the Valleys' now qualify for EU Objective One status, entitled to draw down up to 1.3 billion in EU funds, matched from public and private sources between 2000 and 2006. However, there are many issues raised by the process of organizing the subsequent programme. There are questions over policy focus in the economically diverse Objective One areas, how governance of these policies will work, and the wider implications of Objective One in financial and political terms. There is also debate over previous regional policy initiatives in a Wales that for many years had access to a relatively large share of the UK's regional policy budget and EU funds, yet still faced falling GDP per head as a proportion of the UK average, west Wales and the Valleys' very Objective One status relying on GDP per capita under 75% of the EU average.     

Technology‐Led Innovation: The Non‐Linearity of US Jet Propulsion Development

Despite repeated announcements of its death or uselessness, the ‘linear model’ of science–technology relations persists, the notion that fundamental scientific research precedes applied studies that in time generate technological advances. This article undertakes first to revisit investigations and critiques of the model, and to remind historians of technology that intriguing alternatives to it have been developed. Second, using the case study of Cold War military jet propulsion, it argues that innovative, complex technologies have been created without reliable understanding of scientific fundamentals. These were messy, non‐linear, and failure‐filled processes, to be sure, yet they may well prove to have been more the rule than the exception, once scholars pursue richly textured studies of technical practice in experimental development. Ultimately, project needs to overcome engineering obstacles in technological innovation may provide the platforms and the funding to support basic scientific research as well, reversing the linear model’s expected flows.