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The role of the local level in innovationThe case of the Basque Country
Researcher in Orkestra-Basque Institute of Competitiveness and University of Deusto
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AGRICULTURE,FORESTRY AND
FISHING
INDUSTRY ANDENERGY
CONSTRUCTION COMMERCE,HOSPITALITY
INDUSTRY ANDTRANSPORT
PUBLICADMINISTRATION,
EDUCATION, HEALTHCARE AND SOCIAL
SERVICES
OTHER SERVICES
GVA - Gross value added (2017, %)
Basque Country Spain UE-28
Main Industries Most representative Basque companies
Advanced MachineryBiggest European producers of machine tools (Danobat Group, Ibarmia, Izar, Fagor, Goizper, Lazpiur, Lantek, Ona , Zayer)
AutomotiveMore than 45% of the Spanish production volume (Mercedes,Gestamp, Irizar, CIE Automotive)
Aeronautical ITP/Rolls-Royce (half of all large commercial aricraft)
EnergyLeader company in wind energy Gamesa/Siemens (Iberdrola, Ingeteam, Sener, Petronor, Arteche)
MaritimeConcentration of shipbuildng industries (La Naval, Balenciaga, Murueta, Zamakona, Sener Naval, Vicinay Cadenas)
Railway Industry CAF
Eco-IndustriesEuropean reference in Eco-industries and Circular Economy(Basque Ecodesign Center, Indumental Recycling, Idom, Eko Rec, Acciona Agua)
Basque RIS3 prioritiesADVANCED
MANUFACTURING
ENERGY
Electricity
Oil
Gas
Renew. Sources
Opportunity niches
Creative and
Cultural Industries
Urban habitat
Ecosystems
Food
BIO-
SCIENCES HEALTH
Scie
nce
& T
ech
no
logy
cap
acit
ies
Business capacities
How do we connect SMEs to innovation?
By involving subregionalgovernment levels into innovation strategies the capacity to integrate firms and knowledge actors multiplies!
Working on the construction of effective multi-level governance (MLG) can help respond to these challenges. The local level has a role too!
Basque complexityBasque government: core competences in industrial policy
and science, technology and innovationProvincial Councils: complementary competences focused
on innovation (mainly SMEs) and economic development
Counties: no administrative or political competences; agencies use competences of municipalities for economic development
Municipalities/cities: though formally recognized competences for territorial development, very limited budget for innovation in most municipalities
Emergent multi-level governance of RIS3The ‘umbrella’ RIS3 and examples of subregional strategies
BASQUE GOVERNMENT
RIS3
Basque Country (umbrella
strategy)
Industry 4.0 in all
SMEs with
between 20 and 100
employees
PROVINCIAL
COUNCIL
GIPUZKOA
EtorkizunaEraikiz
DONOSTIA/SAN SEBASTIÁNRIS3 in KIBS
PROVINCIAL
COUNCIL
ARABARIS3
Infrastructures
Support for smart specialisation
infrastructures
VITORIA/GASTEIZ
RIS3 in Cultural
and Creative Industries
BILBAO
iBilbao 2020 (RIS3 in
Creative and cultural
industries, KIBS and
Digital Economy)
PROVINCIAL
COUNCIL
BIZKAIA
Bizkaia
Orekan
• Support for the
competitiveness of SMEs
• Analysis of sectorial
specialisation by zones
Industry 4.0 in SMEs through MLG in Gipuzkoa
The collaborative governance integrates local (through county development agencies) and provincial governments and administrations. Aims: efficiency of innovation programs and shared sense to decide on our own future. Links are being built with the Basque Government now.
Since 2009! 2013: Intercounty Table and the Facilitators Action Research process; 2014: two decree laws from co-generated proposals; 2017: agreement signed by the Provincial Council and county development agencies; since 2017: creating right conditions for industrial companies from 20 to 100 workers in the territory to adopt Industry 4.0 strategies.
425 SMEs (from 527) working in Industry 4.0
Lessons learnt on how to construct MLG✓ MLG is context dependent but always complex✓ Conflict is a natural situation in RIS3 strategies✓ Solutions will not be found but constructed✓ To construct solutions we need to deal with
emergence✓ Softer variables play a key role: the capability of
the actors involved in MLG of innovation strategies to solve problems together
✓ The construction of multilevel governance within innovation strategies require facilitators
✓ Research can play a new role in the development of innovation strategies
✓ Mutual recognition of each government level as a significant actor in innovation processes: reciprocity
Complexity
No simple framework to understand all different
levels and their interactions
The solution cannot "be found“ but "constructed“
All the actors in different territorial
levels have their own interpretation of innovation and
collaborate, but also use power play
Start experimenting and be ready to negotiate!
Dealing with emergence
We need to change from implementing the solutions to constructing them… this means accepting at the time of starting that we don’t
know what the result is!
It takes time!Communication of
emergent strategiesis different
Facilitationcapabilities should
be constructed
Facilitators Innovation strategies
Reflection on IE
Decisions on IE
Actions in IE
Reflections on
facilitation
Decisions on
facilitation
Actions in facilitation
Stakeholder role
Facilitation role
Context specificity
And softer variables such as COLLECTIVE KNOWING
the capability of the actors involved in MLG to solve problems together
Reciprocity
Each government needs to find its own unique role based on
complementarity
MLG is a kind of neuron network, not an archipielago!
Concluding remarks
Let’s learn from each other and avoid the ‘Best Practice Syndrome’ (Barca, 2009). Let’s work on “solving problems”
locally and not “importing solutions” from afar, because success builds capacity not vice versa (Marques and Morgan,
2018)
