European Regional Science Association
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European Regional Science Association
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The abstract for paper number 342:
Giuseppe Pace, Consiglio Nazionale delle Ricerche
Istituto di Studi sulle Società del Mediterraneo, Napoli, Italy
Intermediate institutions for innovation diffusion in a “governance” model: a theoretical approach
The erosion of the state-nation’s economic sovereignty contributed to a growing interdependence between economic globalisation and local development, and stimulated a rethinking of national governments role and their economic development policies. The multiplication of players and layers of negotiation has pressed to abandon a hierarchical model of State in favour of the governance model, based on organizational structures of partnership and/or open market. This process could take advantage by the development of trans-national, regional, and local networks, whereas intermediate institutions play a significant role. A revitalization of interest in economic growth models has led new models to gain ground. These models emphasized the endogenous character of technological processes, pointing out innovation as an evolutionary, non-linear and interactive process between the firm and its environment, and moreover focusing on the importance of interactions and co-operations between firms and other external actors, like other firms, intermediate institutions and public administrations. Concepts as “innovation system” and “learning region”, besides to consider economic development directly linked to innovation, reflect out knowledge as the most critical resource for innovation growth and the most important processes those that transform knowledge into learning. Taking into consideration a “network approach” that combines endogenous growth theory with the heterogeneity typical of exogenous growth models, this paper aims at describing the relevance of intermediate institutions for innovation diffusion in social contexts characterised by an advanced “governance”. Considering governance as the exercise of political, economic and administrative authority to manage a society's affairs, the paper makes reference to a multilevel governance operating through territorial and functional networks, transversal policy networks, a proliferation of technical bodies, distributive coalitions and organised economic groups. As a result, the paper put in evidence that: 1. spatial economic externalities, connected to technological heterogeneity and diffusive processes of innovation, can encourage a convergence process between advanced and backward regions; 2. a possible weakness of this process depend on political and market obstacles that reduce the spill-over effects of the technological diffusion process. In this sense, governance development and networking process become very significant. Therefore, the development of regional and local productive systems can be stimulated through the creation of innovation and knowledge networks. Government’s role should be of a facilitator, a catalytic force that enables the innovative sharing of responsibilities and creates enabling environments for the effectiveness of people and partners in pursuing their legitimate objectives.
Unfortunately full paper has not been submitted.