Connecting people, ideias and worlds to build a useful museology

 

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Lorena, Emanuel, Sancho

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Resilient Territories Innovation and Creativity for New Modes of Regional Development Edited by Hugo Pinto

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Resilient Territories: Innovation and Creativity for New Modes of Regional Development Edited by Hugo Pinto This book first published 2015 Cambridge Scholars Publishing Lady Stephenson Library, Newcastle upon Tyne, NE6 2PA, UK British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Copyright © 2015 by Hugo Pinto and contributors All rights for this book reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the copyright owner. ISBN (10): 1-4438-7230-X ISBN (13): 978-1-4438-7230-0

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TABLE OF CONTENTS List of Illustrations ..................................................................................... ix List of Tables .............................................................................................. xi Acknowledgments .................................................................................... xiii Introduction ................................................................................................. 1 Resilient Territories Ron Boschma and Hugo Pinto Part I: Innovation Chapter One ............................................................................................... 11 The Role of Social Capital in Resilient Territories: Mechanisms for Growth Eduardo Sisti, Mario Davide Parrilli and Arantza Zubiaurre Chapter Two .............................................................................................. 35 Which Factors Foster Resilience? Does Innovation Matter? Evidence from European Figures Sílvia Fernandes Chapter Three ............................................................................................ 53 Knowledge Transfer in Regional Innovation Systems: The Effects of Socioeconomic Structure Manuel Fernández-Esquinas and Manuel Pérez-Yruela Chapter Four .............................................................................................. 75 The Effects of Variety on Regional Economic Resilience: Evidence from French Metropolitan Regions Alessandro Elli

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vi Table of Contents Chapter Five .............................................................................................. 93 Human Capital and Regional Economy: A Preliminary Approach of the Portuguese Case Helena Almeida and Carla Nogueira Chapter Six .............................................................................................. 107 Financing and Business Innovation Processes Alicia Guerra Guerra Part II: Creativity Chapter Seven.......................................................................................... 131 Creative Dynamics, Local Identities and Innovative Milieus: Re-Focusing Regional Development Policies? Pedro Costa Chapter Eight ........................................................................................... 151 Resilience, Creative Careers and Creative Spaces: Bridging Vulnerable Artist’s Livelihoods and Adaptive Urban Change Roberta Comunian and Silvie Jacobi Chapter Nine............................................................................................ 167 Tracing Limits–Public and Private in the Cartography of Contemporary Cities: The Dialogue Boxes on Street Windows Project Mirian Tavares Chapter Ten ............................................................................................. 177 Creativity and Culture for the Territorial Innovation Carla Sedini, Arianna Vignati and Francesco Zurlo Chapter Eleven ........................................................................................ 195 MuT: Connecting People, Ideas and Worlds to Build a Useful Museology Lorena Sancho Querol and Emanuel Sancho Part III: New Modes of Regional Development Chapter Twelve ....................................................................................... 217 Governance and Sustainable Development: Building Capacity for Resilience in the Cities Ana Bela Bravo and José Pires Manso

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Resilient Territories vii Chapter Thirteen ...................................................................................... 233 Knowledge, Place and Economic Performance: Smart Specialisation and the Triple Helix framework in Amsterdam and Sapporo João Romão and Maki Ikegami Chapter Fourteen ..................................................................................... 247 The Regional Innovation Strategy in the Czech Republic and SMEs: Evidence from Moravia Radek Jurčík Chapter Fifteen ........................................................................................ 259 Implementing Doing-Using-Interacting Regional Innovation Policies: Smart Specialisation in a Tourism-Based Region Hugo Pinto, Ana Rita Cruz and Philip Cooke Bibliography ............................................................................................ 277 Appendices Appendix A ............................................................................................. 323 APPENDIX FOR CHAPTER SIX: Contingency Analysis Results Appendix B.............................................................................................. 329 APPENDIX FOR CHAPTER TWELVE: Indicators of Sustainable Development Contributors ............................................................................................. 331

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ACKNOWLEDGMENTS This volume is the collective result and a direct consequence of the efforts of several participants in the 19th APDR – Associação Portuguesa para o Desenvolvimento Regional International Workshop on “Resilient territories: innovation and creativity for new modes of regional development”, held at the University of Algarve (Faro, Portugal), 29th November 2013. The event was partially supported by the European project HARVEST Atlantic – Harnessing all resources valuable to economies of seaside territories on the Atlantic - co‐financed by the European Cooperation Program INTERREG Atlantic Area, through the European Regional Development Fund (ERDF). The enthusiasm of the participants in the workshop on extending the topic of “resilience”, followed by their interest in producing improved and exciting chapters for a book, brought this volume to your hands (or to your screen) today. The preparation of the book was only possible with the financial support from the FCT – Fundação para a Ciência e a Tecnologia (Portugal). The grant to my post-doctoral research entitled “Resilience of Innovation Systems in the presence of Economic Turbulence” (SFRH/ BPD/84038/2012 financed by POPH - NSRF - Type 4.1 - Advanced Training, co-financed by the European Social Fund and by national funds of the Ministry of Education and Science) created the possibility for my dedication to the preparation of this book. The advice given by Dr Tiago Santos Pereira (Centre for Social Studies, University of Coimbra) has been paramount in the organisation of the book and in the implementation of my post-doctoral project. Special thanks go to Professor Ron Boschma (Utrecht University, The Netherlands & CIRCLE, Lund University, Sweden) and Professor Phil Cooke (University of Cardiff, UK), for all the inspiration and intellectual support in the development of the topic of regional resilience and territorial development. I am particularly grateful for the assistance given by Ana Rita Cruz (DINÂMIA’CET, ISCTE-IUL), Julie Porter-Knight (Loyola University Maryland and Towson University), and Jorge Graça in the preparation of the manuscript.

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xiv Acknowledgments My appreciation is extended to the Centre for Social Studies (University of Coimbra) and the Faculty of Economics and the Research Centre for Spatial and Organisational Dynamics (University of Algarve) for providing me with a supportive environment to carry on my research. January 2015 Hugo Pinto

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INTRODUCTION RESILIENT TERRITORIES RON BOSCHMA AND HUGO PINTO Today, Europe is in a delicate situation. Contrasts of growing competition and the lack of capacity to overcome challenges from the recent economic turbulence in specific regions and countries have created a sense of urgency to reflect on member-states’ cohesion. Questions arise regarding the diverse regional economies that compose the European Union (EU) and what this diversity means for adaptation to external shocks, resistance to negative impacts and evolution to new sociotechnical regimes. Essentially, academics, planners and decision makers are looking for a way to increase the resilience of the EU territory. Resilience can be understood as a non-equilibrium characteristic that facilitates a socioeconomic system to recover from a negative impact by reshaping a former trajectory or by adapting a new trajectory that successfully deals with the external pressures. These processes and characteristics have been studied in the recent past by regional scientists seeking to identify the set of dynamic conditions that create a more or less resilient territory. In the regional context, resilience is a concept adapted from the study of ecological systems and other fields of science that is applied to the understanding of geographically embedded socioeconomic systems. It is often a characteristic connected to a threshold of socioeconomic variety and specialisation that facilitates a smooth adaptation to the challenges faced in territories. With the recent crisis, some regions have dealt with this concept, by planning the adequate conditions for resilience. Regional resilience has also been connected, but not fully integrated in the literature, with more stabilised concepts, such as innovation and creativity (Pinto & Pereira, 2014). Innovation is often assumed as crucial for resilience. It was a central notion for the EU’s policies in the last decade and it was also very influential in science and technology (S&T) studies. In particular, innovation

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2 Introduction systems have been used as a framework to develop and implement policies in transnational, national, regional, local, and even sectoral contexts (OECD, 2005). An innovation system focuses on a specific area or sector, where a group of actors is interconnected, with the goal to innovate. The core of the system has the main function of innovation but also has a broader ambition for growth and development. Hence, when analysing the innovation system it is important to understand actors and linkages that are directly connected to S&T infrastructure but also the institutional architecture and a vast group of building blocks that are in the centre of the socio-economic profile of the territory, providing the range of possibilities for adaptation and evolution. In parallel, contributions for the role of creativity in regional resilience have increased since Richard Florida’s best-selling book ‘The Rise of the Creative Class’ gained media and city planners’ attention (Florida, 2002). The ‘creative class thesis’ argues that the basis for territorial advantage is talent, and that to enhance economic growth, places should develop, attract and retain creative people who can stimulate knowledge, technology and innovation, and thus, resilience. Creative people can be defined as a new, emerging collective, the creative class. Fundamental to talent attraction and retention is the quality of place, combining factors such as openness, diversity, street culture and environmental quality. Creative class members prefer places that are tolerant, diverse and open to new ideas. The place should provide an eco-system in which diverse forms of creativity can root and flourish. The existence of culture and leisure that support particular lifestyles provides incentives for the location of people who like this quotidian. These factors, more or less intangible, structure institutions and an environment of ‘cosmopolitanism’ that influences the locational decisions of talent. In this introduction, we will first provide a tentative framework for the notion of regional resilience by underlining that history, industrial variety, knowledge networks and institutions matter in this capacity. Second, we will provide a brief presentation of this book and its organisation. Regional Resilience: an Evolutionary Framework Regional resilience is a notion that has obtained a great deal of attention in the context of the economic crisis. In evolutionary economic geography, it is common to refute the equilibrium engineering-based concept of resilience, in which resilience is simply the response to external shocks and a movement towards a previous steady state. Instead, the focus is on the long-term capacity of territories to reconfigure their socio-

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Resilient Territories 3 economic structures and to develop new growth paths (e.g. Christopherson, Michie, & Tyler, 2010; Cooke, Parrilli, & Curbelo, 2012; Simmie & Martin, 2010). However, there is still little understanding of the long-term adaptive capacity of territories (Martin, 2012), and as such, an evolutionary notion of regional resilience is still under construction (Boschma, 2014). An evolutionary regional resilience concept abandons an equilibrium framework. Resilience is not only about short-term buffers, which prevent a territory to collapse. Territorial resilience should explicitly be about structural change and long-term economic renewal, as this is the way for territories to offset economic decline. It is therefore misleading to analyse territorial resilience merely as a mechanical response to shocks, without discussing it, let alone without analysing the main determinants of what makes a territory competitive. What sense does it make to talk about the resilience of the Greek economy without a fundamental analysis of how the Greek economy can improve its competitiveness? If we had understood that well, discussions about the future of the Greek economy would not have been narrowed down to austerity measures, and to how long it would take for the Greeks to pay back their debt. Instead, we would have had more fruitful discussions on how to improve the innovativeness of the Greek economy (to stimulate tourism, for instance, or to diversify into new activities), and what structural measures had to be taken to make that happen. We have to understand how history matters for regional resilience. History should be an integral part of an evolutionary notion of territorial resilience (see Boschma, 2014). Resilience in terms of the capacity of a region to develop new growth paths does not imply a movement away from former territorial trajectories, as if new growth pathways are disconnected from their past, and as if territories require a divergence from their history to achieve success. Our understanding is that history is central to comprehend the development of new growth pathways, as the past not only defines constraints (not any new path is feasible) but also provides opportunities to move into new economic and technological domains. Boschma (2014) proposed an evolutionary notion of territorial resilience in terms of how a shock affects the long-term determinants of regional competitiveness. In particular, Boschma (2014) focuses on how the shock affects the capacity of a territory to develop new growth paths. He distinguishes between three determinants of territorial resilience: industrial, knowledge networks and institutional structures in territories. These capture different dimensions of resilience in an integrative manner, which had been treated independently in the literature so far. Below, we briefly

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4 Introduction discuss the three dimensions of territorial resilience proposed by Boschma (2014). The industrial composition of territories matters for resilience. Specialised regions are less vulnerable to sector-specific shocks, but once hit, they have more damaging effects on the regional economy as a whole. Moreover, these regions are more likely to be dominated by powerful interests that may frustrate the development of new growth pathways. These territories also have a limited number of local options available to recombine different knowledge areas and to diversify related activities. To be resilient, specialised regions need to link to and activate casual redundancies (such as skills) in the territory, use their specialised knowledge base to diversify related activities, and connect to other territories from which new resources can be integrated in the local knowledge base. Diversified regions have a higher chance to be susceptible to sector-specific shocks, as they house many industries that might be potentially hit. And once hit, whether such territories are resilient or not, will depend on the extent to which local industries are economically integrated and skill-related. When their industries are more disconnected in terms of input-output relationships, and more skill-related, it improves their ability to absorb that part of the labour force that has become redundant because of the shock (Diodato & Weterings, 2012). Diversified regions also have more capacity to recombine a range of local industries (unrelated variety) and generate new growth pathways as a result. On top of that, these territories have a higher likelihood to benefit from overlapping areas between related industries: higher related variety implies a larger number of learning and recombinatory opportunities for local industries (Neffke et al., 2011). As a consequence, diversified regions are more resilient when they have a combination of unrelated variety and related variety, which guarantees that there is both focus within one knowledge domain, and variety between knowledge domains. Knowledge networks also affect regional resilience. Regional networks can be excessively inward-looking and actors in such a network too proximate, in particular in over-specialised regions. These networks will suffer from limited recombination possibilities and a high proportion of closely tied core actors. This also makes the network more vulnerable to shocks by preventing lock-outs. Resilient territories have knowledge networks that connect with more peripheral actors, preferably in related activities, or by rearranging their local knowledge networks to achieve the adequate levels of proximity between organisations, such as loosely coupled networks (Boschma & Frenken, 2010; Balland et al., 2013). In other situations, local knowledge networks may be very fragmented with

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Resilient Territories 5 an excessive number of actors with few linkages between them. These local networks provide opportunities to accommodate shocks and to get access to new and non-redundant information, but there is no regional cohesiveness. In addition, there is a low rate of efficiency and control of collective behaviour within the network. Resilient territories are expected to have a core/periphery network structure with an adequate balance between embedded relationships and strategic ‘structural holes’ linkages, as proposed by Fleming, King & Juda (2007). Institutional structures may also be directly linked to territorial resilience. Territories may be hostages of institutional lock-in, when the institutional architecture is mainly focused on the specific needs of very dominant local industries. This problem is reinforced when the local political elite is part of this tight and rigid institutional constellation (Hassink, 2010). Such territories are expected to suffer from institutional inertia in which institutions are non-responsive to new growth pathways and cannot adapt to accommodate the growth of new trajectories. This may be overcome by institutional plasticity (Strambach, 2008), in which new institutions emerge without directly challenging the overall institutional framework. In diversified regions, it is unlikely that powerful actors can completely dominate and take over the design of regional institutions. Diversified regions have a more developed capacity for institutional change but they also lack cohesiveness with too many interests that may harm local commitment and control. Instead, resilient territories are expected to be open, with a decentralised institutional framework that responds to and accepts newcomers, but in parallel is also supportive and responsive to the needs of particular industries. Territories with a certain degree of institutional overlap between local industries are more capable of developing new growth paths, as new institution-building is less likely to be opposed by local institutional players, and existing institutions may even be put to effective use in this respect (Boschma, 2014). Organisation of the Book The book ‘Resilient Territories: Innovation and Creativity for New Modes of Regional Development’ intends to contribute to the definition and advance the scientific agenda of topics such as: regional resilience, innovation and creativity. The stabilisation of this research agenda and the informed discussion about different conceptualisations of regional resilience is crucial for the alignment and engagement of the scientific community in the study of these crucial topics. The book is also focused

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6 Introduction on informing policy and decision-makers, in different levels of action, about the advancements of conceptualisation in these domains. This may have a significant impact on the process of planning and designing new policy measures and instruments, specifically for the implementation of Research and Innovation Strategies for Smart Specialisation (RIS3) that can help the construction of more resilient territories in Europe. The book is organised in three main parts: ‘Part I – Innovation’ collects six chapters that discuss the connections of innovation with regional resilience. These chapters are based on traditional approaches to innovation in Regional Science. The first chapter “The role of social capital in resilient territories: mechanisms for growth” by Sisti, Parrilli and Zubiaurre, underlines the importance of social capital in the evolution of localised patterns of economic activities and in the growth dynamics, using the cluster concept as a framework, and providing empirical evidence with the study of several regions. The second chapter “Which factors foster resilience? Does innovation matter? Evidence from European Figures” by Fernandes provides a summary of recent research on the linkages of innovation and resilience, giving emphasis to firms and to the national innovation systems’ response to the recent economic crisis. In the third chapter “Knowledge transfer in Regional Innovation Systems: The effects of socio-economic structure”, Fernández-Esquinas and PérezYruela structure a framework to understand the influences of regional socioeconomics in the knowledge transfer process, understood as the systemic connections between knowledge producers, in particular universities and public research organisations, and the knowledge users, specifically the firms. Chapter 4 “The effects of variety in regional resilience: Evidence from French metropolitan regions” by Elli explores the effects of different types of variety in regional resilience showing that simplistic visions of the positive impacts of related variety in economic dynamics requires additional discussion. In Chapter 5 “Human capital and regional economy: a preliminary approach of the Portuguese case” Almeida and Nogueira present the fundamental concepts of intellectual capital as constituted by human capital, structural capital and relational capital, and an empirical example using the Portuguese case. Chapter 6 “Financing and business innovation processes” presents empirical evidence of firms’ innovative behaviour, relevant barriers and their relation to policy instruments, using information from the Spanish region of Extremadura. ‘Part II – Creativity’ collects five chapters focusing on the relevance of culture in creative dynamics, providing insights about the impacts of this domain in regional resilience. Chapter 7 “Creative dynamics, local identities and innovative milieus: re-focusing regional development

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