Developing cross-industry innovation capability: regional drivers and indicators within firms

ABSTRACT

The role of firms in the process of regional renewal and path development is a somewhat neglected area in the existing literature. With few exceptions, the literature is mainly concerned with aggregated development paths. To cover this gap, the current study turns its attention to cross-industry innovation capability (CIIC) building in firms and discusses how conditions for innovation and learning in a region drive this process. We introduce a new concept of CIIC – that is, the firm’s ability to transform knowledge and ideas from different industries into new products, processes and systems and/or its ability to adapt existing products, processes and systems to new industries – and identify its drivers and indicators. The discussion is supported by empirical studies of firms in three Norwegian case regions that undergo the restructuring process due to the recent severe decrease in oil prices. Our empirical data demonstrate that organizationally thick and diversified regions are more favourable for firms’ abilities to develop CIIC and cross-industry innovation activity. As a result, we emphasize that future regional policies should have a stronger focus on the linkages between internal firm characteristics and regional innovation systems to contribute to the firms’ absorptive capacity for developing cross-industry innovation.     

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.     

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.     

我国区域发展战略的回顾、评价与启示

建国以来,我国区域发展战略经历了均衡发展、非均衡发展和协调发展三个阶段。区域发展战略的演变呈显出主体多元化、内容多维度化、机制市场化和战略空间细化的趋势。与此同时,现行区域发展战略存在若干不足,有追求政策优惠忽视制度创新的倾向,区域发展战略之间缺乏宏观整体性衔接,阻碍区域协调发展的瓶颈远未取得突破,区域发展战略仍过于强调效率目标,对不发达地区关注不足。因而,未来区域发展战略的制定,不应追求数量,要注重是否真正有利于实现区域的改革创新;亟需制定一个全局性区域连接发展规划,或者以整合发展的理念对现有的区域发展战略规划进行统筹管理;中央应制定和出台针对性的法律法规保障要素的自由流动和区际自由公平贸易;国家级区域发展战略的地区选择应更注重公平目标。     

Cross-border regional innovation systems: conceptual backgrounds,empirical evidence and policy implications

The concept of cross-border regional innovation systems (CBRIS) surfaced in the literature on economic geography through discourses that highlighted the need for broadening innovation systems to cross-border contexts. Since these early discussions, the theoretical backgrounds of CBRIS have been elaborated through notions of geographical scale, proximity and related variety in a range of conceptual papers proposing CBRIS as a comprehensive framework for analysing regional cross-border integration. However, the empirical literature on CBRIS has failed to keep up with the advances in conceptualization. This paper discusses the reasons behind this mismatch, which means that the concept still rests upon and draws policy suggestions based on a thin evidence base. Directions for further research are pointed out by underlining the need for holistic empirical validation of the concept together with the need of understanding how suggested policy measures based on CBRIS reasoning have been implemented in border regions, and their effectiveness in promoting cross-border integration.     

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.     

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.     

Wishful thinking? Towards a more realistic role for universities in regional innovation policy

ABSTRACT

The past 30 years has seen an escalating interest in the potential role of universities in contributing to their regional economies, reflected in the increasing trend for regional innovation strategies to ascribe a central role for universities, particularly in peripheral, institutionally thin places. The global economic crisis and subsequent austerity measures implemented in many developed economies have put further pressure on universities from national and regional policymakers to become more explicitly involved in contributing to their local economies in order to justify their public funding. This paper will draw on the academic literature to consider how justified this focus is by questioning whether universities are willing or even able to play the roles expected of them in contributing to regional innovation. It will critique an approach to policymaking that often views universities as homogenous actors in the regional innovation system and places an over reliance on imitating success stories from other places without sufficient consideration of the specificities of local conditions. It will argue for a more realistic and nuanced approach to involving universities in regional innovation policy, concluding with key insights for both universities and policymakers.     

Network position and innovation capability in the regional innovation network

ABSTRACT

This paper investigates the positioning of actors characterized by different natures in a regional innovation network and explores how these actors improve their innovation capabilities by assuming prominence or brokering positions. Innovation capability is widely seen to be the driving force in building regional competitive advantage, therefore investigating how the positioning of actors improves their innovation-related activities is relevant in terms of regional competitiveness. This paper builds on a survey conducted on the Sicilian regional area in Italy. A questionnaire was used to collect data concerning the relationships established between actors and the extent to which these relationships impact actors’ innovation capability. Results suggest that regional actors cannot be considered as a homogeneous group regarding their positioning in a regional network and that the innovation benefits of assuming different network positions depend on their nature. This paper offers some theoretical implications to the literature on regional innovation network and practical suggestions to organizations and regional policy makers.     

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.     

Smart specialization policies: innovative performance models from European regions

ABSTRACT

This research seeks to identify the factors that best explain the performance of regional innovation in Europe, in the era of smart specialization. Data were collected from the Regional Innovation Scoreboard 2016 and a quantitative methodology was followed using linear regressions as statistical methods. The results allowed us to reach four explanatory models of performance innovation for Innovative Regions Leader, Strong, Moderate and Modest. Some policies have also been suggested as possible regional innovation measures that can help policy makers to clarify and improve the innovation performance of these regions.     

An alternative policy approach to rural development in regions facing population decline

ABSTRACT

Many rural regions in Europe used to be characterized by weak economic performance and negative population development. While in a long-term perspective this is not any more valid for large parts of Western Europe, a number of rural regions face persistent population decline. By analysing the case of Austria, where approximately one-third of rural areas have experienced such negative population change over the past decades, this paper will examine the impact on economic performance, income levels and well-being patterns. Addressing the crucial and persistent obstacles to positive population trends, new theoretical approaches and perspectives are discussed for overcoming limitations in development. Future approaches for regional development have to go beyond strategies for targeting economic growth, but have to address issues of local participation, social innovation and establishing trust as preconditions to effectively impact well-being dimensions. Such a mobilization effort would be the result of a comprehensive social transition process which would foster an altered narrative for these rural regions compared to the current and predominant focus on compensation and growth policies. Despite strong interlinkages with other regions and actors, the needs of local people would be central and both would be a cornerstone for social innovation.     

区域创新系统的管治框架演化——来自深圳和东莞的对比实证

本文在电子企业问卷调查的基础上,对比分析深圳和东莞的区域创新机制,并进一步从管治角度构建区域创新机制差异的理论框架,在中国转型的体制背景下阐释管治的演化逻辑。结果显示,改革开放初期自上而下的管治模式相对于自下而上的管治,在各自向网络化管治模式演化的过程中,由于先发制度优势和组织能力禀赋,更能顺利的推动工业基础薄弱地区向区域创新系统的转变。最后指出,演化视角分析必须注重时间和地理的特殊性。     

Universities and regional advantage: Higher education and innovation policies in English regions

This paper examines the links developing between universities and their regions as observed in the UK. It highlights interactions between public policy and institutional behaviour in a multi-level governance (MLG) structure at sub-national, national and European levels. Different strategic processes of networking between universities and the developing links with the Regional Development Agencies (RDAs) in nine English regions are illustrated, in light of the recent government policies which influence the resources and strategies of universities. Universities' wide range of activities and strategies at different geographical levels need to be strategically incorporated as part of regional innovation systems.     

Embedding entrepreneurial regional innovation ecosystems: reflecting on the role of effectual entrepreneurial discovery processes

ABSTRACT

Collaboration between regional stakeholders is increasingly emphasized in innovation policy as a way to activate the inherent agency in a regional innovation system. Partnerships of diverse stakeholders have been identified as critical, being able to envisage and implement future pathways that in turn bring change to a region. Thus, the knowledge of various stakeholders is supposed to be combined in novel ways in order to define regional assets and possible future pathways. Nevertheless, it has been recognized that these agency activation approaches often fail to realize these long-term visions initially agreed by partners. We here draw on Sotarauta’s notion of policy ‘black holes’, where regional partners repeat past superficial successes rather than driving in to systemic change. We seek to understand the conditions under which regional stakeholders can build realistic and adaptable strategies that shift regional development trajectories. We explore this via a qualitative approach comparing entrepreneurial discovery processes in three peripheral regions, namely Twente (Netherlands), Aveiro (Portugal) and Lincolnshire (UK). We reflect on the potential value of more effectual (opportunistic/ flexible) approaches to entrepreneurial discovery. We argue that black hole problems may arise from the way agency activation strategies conceptualize long-term strategy development, if partners’ mind-sets are too causal and lacking flexibility to continually reorient strategies during implementation better towards these collective visions.     

Green industry development in different types of regions

ABSTRACT

At the regional level, the imperative of sustainable development often manifests itself in an emphasis on developing green industries. However, regions vary in their preconditions for achieving this. In this paper we link regional preconditions to various pathways for green industry development. This provides the foundation for identifying place-based policy implications for growing green industries in different types of regions, grounded in the emerging perspective in innovation studies on transformative innovation policy. The paper thereby helps to understand the pathways for greening the economy in different regional contexts and how such green pathways can be promoted through policy.     

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.     

What Kind of Entrepreneurship Drives Regional Development in European Non-core Regions? A Literature Review on Empirical Entrepreneurship Research

Regional policies across Europe aim at stimulating regional development in non-core regions through fostering entrepreneurship. However, the policies applied in non-core regions and the concepts of entrepreneurship these policies are based on differ. Therefore, the goal of this review is to identify different understandings of entrepreneurship and their role for regional development processes in European non-core regions. To this end, empirical studies investigating entrepreneurship in European non-core regions from 1999 to 2011 were analysed. The results of the analysis are presented along three drivers and outcomes of entrepreneurship identified inductively from the literature: innovation, social capital and institutional change. We made out seven different types of entrepreneurship in European non-core regions. These seven types of entrepreneurship comprise particular mechanisms through which they stimulate regional development. Further research should study the interplay between these different mechanisms of regional development in non-core regions which may induce a more territorial approach to understand entrepreneurship in non-core regions across Europe.     

Persistence in regional learning paradigms and trajectories: consequences for innovation policy design

Inspired by the first evaluation processes on how nations and regions have interpreted and specified the smart specialization strategy, this paper applies the lens of evolutionary economic theory to interpret the causes of the lock-in mechanisms in learning processes that seem to prevail in most regions. The paper elaborates the notion of regional learning paradigms and trajectories to interpret evolution in the way innovation occurs in regions. By identifying the sources of path-dependence in regional learning paradigms and trajectories, the paper explains the difficulties faced by regions in ‘jumping’ on a new paradigm/trajectory and initiating an explorative entrepreneurial discovery process. Once the reasons for lock-in are highlighted, the paper advances some suggestions on possible adjustments to the design of a smart specialization strategy.     

区域、竞争力与区域发展

竞争力概念本身具有抽象性和模糊性,尤其被用于地点的属性时,对其界定颇多争议。这导致在区域竞争政策应用中不可避免的出现某种程度的混乱。通过追踪竞争力的缘起,在对两种主要的区域竞争力概念来源进行理论述评的基础上,从竞争的一般概念角度阐述了区域竞争力存在的客观性及其本质涵义,并从企业和地点两个角度比较分析了竞争在区域发展中的作用及影响。