Transcript The Regional Innovation Paradox

Innovation in peripheral regions
Opportunities and challenges
Ian Hill
EU Policy and Development Officer
Cumbria County Council, UK
Content
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The issues affecting peripheral regions
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Approaches to development in peripheral
regions
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Processes that can assist development;
learning from EU-funded projects
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Future development paths
Connected or competitive?
Accessibility and
GDP
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Darkest red =
below-average
accessibility but
high GDP
What are the
characteristics of
these regions?
What strategies
have they followed?
Learning from EU projects: CRIPREDE
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EU Sixth Framework; ‘Regions
of Knowledge 2’
Project aims:
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www.criprede.com
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Understand the characteristics of
successful R&D regions
Audit our own regions against an
adaptive R&D model
Develop an RTD investment policy
and strategy for our respective
regions
The regional innovation paradox
“Lagging regions under invest in R+D and
innovation activity and appear to face
considerable difficulties in utilising public
resources earmarked for innovation”
The Regional Innovation Paradox
Oughton, Landabaso, and Morgan (2002)
Innovation and peripherality
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Innovation is not only the process of
companies developing new products and
services;
Innovation is the total of all of the new ideas
and approaches that accumulate in a territory
2 key sources exist for those new ideas:
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Collaboration by the actors within a territory
Collaboration with other regions in and beyond
that country
The two processes must not exist in isolation;
they are mutually reinforcing
Dare to be different…..
‘Real regional competitive advantage comes from
making a difference, not from doing the same things
other regions do. (…) Likewise, by investing in
similar technologies and copying ‘best practices’,
regions undermine their potential competitive
advantage and should not be surprised that in the
end a painful regional shake-out will occur.’
Hospers, G.-J. (2005): Best Practices and the Dilemma of Regional Cluster
Policy in Europe. Tijdschrift voor Economische en Sociale Geografie 96 (4).
The strengths and qualities of
peripherality
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Access to high-quality cheap land
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Good virtual or electronic accessibility
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High quality of life and environment
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Strong internal networks and knowledge
capital
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Resilience and problem-solving skills
Growth sectors for peripheral areas?
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Food and high-value agriculture-related produce
(e.g. northern England)
High-tech manufacturing
(e.g. central Finland)
Knowledge economy and ICT
(e.g. western Ireland)
Environmental technologies and energy
(e.g. western Scotland)
Tourism and recreation
(many examples…)
How? The process factors
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Knowledge and learning
Networks
Leadership
Regional actors
Place, (Spatial) Proximity and Embeddedness
(the process by which tacit knowledge gives
regional benefits)
“a case study of high-technology spin-offs in the North East of
England … question(s) the mainstream hypothesis that peripherality
is a disadvantage for regional RTD, instead drawing attention to the
influence of tradition and identity building.” (Welter and Kolb, 2006)
Messages for the future
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Competitiveness is not wholly dependent upon
physical connectivity
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Disparities in regional growth and competitiveness
continue to widen
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Competitive regions are those whose public and
private actors can collaborate within and beyond the
territory
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Leadership is a key ingredient
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Peripheral regions must utilise all forms of EU
support available; explore in particular the potential
of Regions of Knowledge (FP7)