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Please be advised that this information was generated on 2021-09-28 and may be subject to change. WINDOW ON THE MEDIATING POLICY COMPETITION THROUGH CAMPUS DEVELOPMENT IN DUTCH

HENK-JAN KOOIJ Department of Human Geography, Institute for Management Research, Radboud University, PO Box 9108, 6500 HK Nijmegen, the Netherlands. E-mail: [email protected]

Received: June 2015; accepted November 2016

ABSTRACT Over the past decades, governments have switched from a managerial to an entrepreneurial style of governance in the strengthening of certain places at the expense of others. This coevolved with an increase in inter-urban and inter-regional competition for resources, also called ‘policy competition’. The issue for regional governments is how they balance their wish to strengthen their economic structure, without creating conflicts of unfair competition in the designation of ‘winners’ and ‘losers’. This paper addresses this balancing act in the Dutch Province of Limburg, where a multinational threatened to leave the region. The case is analysed with the help of actor-network-theory and follows the translations through which an innovative policy tool was constructed that allowed the Province to invest in real estate. Through the innovative ‘campus’ concept, the Province could comfort the vested interests of the multinational, while balancing out the interests of other economic cores in the region.

Key words: policy competition, campus development, innovation campus, Dutch Limburg, regional economic policy, actor-network-theory

INTRODUCTION prosperity within their region, but face chal- lenges to satisfy both the needs of local busi- How can regional governments strengthen nesses and of the EU rules on competition. their competitiveness without creating unfair Next to the formal EU rules of competition, competition? – One of the key questions for more informal and politically sensitive issues both national and regional governments is arise when specific companies benefit from how they can foster economic development in state measures to promote the competitiveness their jurisdiction, without violating the EU of regions (Bontje & Lawton 2013). rules for State Aid (Colomb & Santinha 2012). Theoretically, the debate has focused on This is even more pressing within areas facing the policy competition between governments economic decline, where any form of employ- in attracting resources from higher-tier gov- ment is carefully tended. While multinationals ernments within the context of the hollowing can shift employment to other regions, terri- out of the welfare state and, at the same tory bound governments are left with social time, a more entrepreneurial governance problems if no new employers appear. Against style (see Begg 1999; Malecki 2004; Jonas this relatively footloose situation of multina- et al. 2010; While et al. 2013; Addie 2015). tionals, territory bound governments develop The governance style of regional govern- strategies to maintain employment and thus ments has evolved from managerial to

Tijdschrift voor Economische en Sociale Geografie – 2017, DOI:10.1111/tesg.12238, Vol. 00, No. 00, pp. 00–00. VC 2017 Royal Dutch Geographical Society KNAG 2 HENK-JAN KOOIJ entrepreneurial, focusing on fostering eco- public services such as Statistics Netherlands nomic growth within their territories (Harvey (Centraal Bureau voor de Statistiek), the Tax 1989). This new style co-evolved with an Administration (Belastingdienst) and Maas- increase in inter-urban and inter-regional tricht University (UM), its economic structure competition in the light of globalisation has been dominated by the chemical industry (Malecki 2004; Jonas et al. 2010). Cities in multinational the Dutch State Mines (DSM) growth regions such as Munich, Cambridge (Dohmen 2007; Elzerman & Bontje 2013; and Stockholm, struggle to shape a politics Jeannet & Schreuder 2015). that channels investments from state resour- This history of Limburg has fuelled the ces, at the expense of other less privileged need for economic development strategies regions (see While et al. 2013). Although through ‘cluster development’, which were encouraged by EU policies such as the Lis- launched through the ‘acceleration agenda’ bon Agenda of the 2000s, the implementa- of 2003, aimed at the strengthening of the tion of such an entrepreneurial style is ‘power clusters’ of ‘chemistry’, ‘health care & hardly straightforward, as conflicts arise from cure’, ‘agro-food/nutrition’ and ‘new energy’ ‘backing winners’ at the cost of other areas (Jacobs & Kooij 2013. These clusters mir- that equally deserve support (Begg 1999). In rored the economic cores of the province light of the recent modes of liberal thinking (i.e. DSM in Geleen, UM in , on government spending, such an entrepre- Greenport in Venlo and Solland Solar in neurial stance is under pressure and inevita- /Aachen on AVANTIS) and thus bal- bly leads to the support of some at the anced the interests of the economic cores. expense of others (While et al. 2013). The province’s policy was aimed at shaping While the debate has so far focused upon the right preconditions for these clusters more structural components of growth facili- through general provincial policies, for tation in terms of collective provision of example, mobility, labor market and educa- infrastructure, land and services (de Vor 2011; tion (Taskforce Versnellingsagenda 2005). Jonas et al. 2010; While et al. 2013; Addie However, in 2008, the Province developed 2015), the tactics of lower-tier governments in new policies for the development of specific policy competition remain underexplored. areas within these clusters, aimed at ‘campus This paper addresses this policy competition development’ (Jacobs & Kooij 2013), in which and the issues of regional governments and it prioritised the developments around DSM’s their balancing acts between unfair competi- Chemelot Campus in Geleen and around tion in general and binding multinationals to UM’s Health Science Campus in Maastricht, their region. Two important dimensions that above developments in Venlo and Heerlen. In shape these balancing acts are the economic contrast to the Province’s cluster policy context within the region, that is, what other between 2005 and 2008, two specific sites ben- firms or developments can claim resources efited from the province’s new policy. This from the region, and the dovetailing with paper focuses on this tension and analyses the broader policy discourses (Begg 1999; While policy development in the Province on a et al. 2013). Consequently, the research ques- micro-level to understand the issues involved tion is as follows: how can regional govern- with the balancing between unfair competi- ments strengthen their competitiveness tion and strengthening the competitiveness of through the facilitation of ‘winners’ without the region. It does so by focusing on the creating unfair competition? ‘translation’ and ‘net-working’ effects of the This research question is answered with the campus concept within the region of Lim- help of a case study on the Dutch Province of burg, with specific attention to the policy Limburg, a province in the south of the Neth- sphere of the Dutch Province of Limburg. erlands (see Figure 1). This region has faced serious economic and demographic decline Actor-network-theory as a way to understand since the end of the mining industry in 1973 the micro-politics and tactics in Limburg – (Elzerman & Bontje 2013). While some of the The mainstream literature on policy competi- pain has been remedied through bringing in tion is dedicated to comparative case studies

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Wageningen Renkum

Nijmegen

Oss Schaijk Cuijk Den Bosch Boxmeer

Tilburg

Helmond Deurne Eindhoven HTC Greenport Venlo Eersel

Dutch Province of Limburg

Roermond

Geleen Chemelot campus

Kerkrade Heerlen Maastricht AVANTIS Health campus Aachen

Legend

Active campus development Past or dormant campus development

Figure 1. Campuses and clusters in Dutch Limburg. [Colour figure can be viewed at wileyonlinelibrary.com] on a general level to equate collective provi- and issues of policy competition, but excludes sion competition in one region with another. detailed insights in the tactics and micro- This approach highlights the general patterns politics of policy competition. Therefore, this

VC 2017 Royal Dutch Geographical Society KNAG 4 HENK-JAN KOOIJ paper uses the perspective of actor-network- In what follows, this paper analyses the theory (ANT), drawing upon the work of Cal- translation of the campus across the region lon (1986), Law (1992, 2008) and Latour using the four moments of translation, from (1986, 2005). This approach focuses on the a private initiative of DSM in 2003, towards relations between actors to understand the the public embrace of the campus in 2014 by entities that we encounter in our world, such the Province of Limburg as an important pol- as organisations, machines, knowledge, docu- icy tool. ments etc. In ANT, both things and ideas are conceived of as actors, hence, actor-network- CAMPUS DEVELOPMENT IN LIMBURG theory (Murdoch 2006; Hendrikx 2014). Central is the emergence and disintegration The issue: the withdrawal of DSM – In 2003, of relations between entities that form actor- DSM decided to develop a ‘research campus’ networks, mainly analysed through tracing in Geleen, a ‘business campus’, distinct from relations between entities. The building of the conventional notion of ‘university cam- relations is referred to as ‘translation’, mean- ing the circulation, transformation and repre- pus’ (DSM & LIOF 2003; Netherlands Acad- sentation of ‘things’, which also includes the emy of Technology and Innovation 2003; orchestration, ordering and resistance of these DSM 2004b). This decision was a conse- processes.1 quence of DSM’s renewed strategy to with- The networks of actors can be traced by draw from bulk chemistry and to focus on following the actors and their flows (Latour life sciences and chemical materials, which 2005). This study traced the translations of eventually led to the sale of DSM’s petro- the campus concept by analysing policy docu- chemical businesses to Saudi Basic Industries ments, minutes of Provincial State meetings Corp (SABIC) in 2002 (DSM 2013). The and commission meetings, press releases and Research Campus was constructed as a place newspaper articles, all referred to in the text. to open up DSM’s work terrain to ‘techno Fourteen semi-structured interviews were car- starters’ and the research and development ried out with different actors involved in the (R&D) divisions of other companies. Open- campus plan, including civil servants of the ing up for other companies was framed as a province and officials working on particular step forward, but the action was mainly a campus developments, a member of the Pro- strategy to find new tenants for the site’s vincial Executive, and both present and for- vacant real estate, a financial problem for mer officials of the regional investment DSM (Netherlands Academy of Technology agency LIOF. and Innovation 2003; DSM & LIOF 2003; The analytical framework focuses on four DSM 2004b). Until 2005, this real estate initi- moments of translation: problematisation, inter- ative was essentially part of DSM’s private essement, enrolment and mobilisation (Callon strategy and -in contrast to the developments 1986). Problematisation is the process through later in the process – not one that was which an actor makes itself indispensable in actively supported by the government or the light of a constructed problem. Interesse- other actors. ment includes how allies are locked into place in the light of a problematisation. Enrolment Problematisation: how to keep DSM in the entails how roles of actors are defined and region? – DSM’s withdrawal from the region co-ordinated. Mobilisation implies the emer- was exemplified by its operation called gence of faithful and representative spokes- ‘Copernicus’ (2002–04). This was a restruc- men for the entire network. As mentioned turing operation that included the loss of before, translations and networking do not around 500 jobs in manufacturing and sup- occur in a vacuum, but ideas and things are port services (DSM 2004a). In 2004, the circulated through intermediaries in the operation led to protests from the trades form of texts, technical objects, embodied unions, which ultimately led to an agreement practices and money (Callon 1991; Latour between the unions, DSM, the municipality 1986). of -Geleen and the Province of

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Limburg, which stated that DSM would make part of cluster development. One way to an effort to attract new job opportunities anchor campus development was to couple it (Chemelot 2013). with the rise of open innovation concepts This retreat was recognised by the provin- within the industry, a concept that was ce’s civil servants, who started to explore how embraced by DSM and Philips in 2003, but to bind DSM to the region. In the next part the development was also linked to DSM’s of this paper, we follow these civil servants vacant real estate problems and its problem- from the strategy department, because they atic retreat from the region. In looking for can be considered essential in the translation solutions, the civil servants tried to under- process. It was these civil servants that started stand what a provincial government could do to explore strategies to bind DSM to the to foster such a campus development. region. At that time, the ruling economic The province’s perspective on campus devel- policy was the cluster policy, and they opment was articulated in a memorandum for explored possibilities to bind DSM physically the Economic Provincial Council Commission to the region through cluster development, (Statencommissie Economisch Domein) in but these were not fit for this purpose. March 2008 (Provincie Limburg 2008), which From 2006, however, visits to Basel, con- was positively welcomed by the Commission tacts with Martin Hinoul of the Interuniver- (Statencommissie voor het Economisch sity Microelectronics Centre (IMEC) in Domein 2008). The positive receipt of this Leuven, and visits to the High Tech Campus perspective on campus development made it in Eindhoven (HTC) made the civil servants in theory possible to bind DSM to the region, realise that ‘campus development’ could play but this same possibility could also be used by a role in the cluster development. IMEC other economic players in the region. The Leuven and HTC in Eindhoven were prime civil servants had to restrict the extent to examples of a new style of campus develop- which the campus concept could be applied, ment also called the ‘innovation campus’ in order to avoid overexploitation of the cam- (see also Kooij 2015), in which innovation pus concept and hence overexploitation of and regional-economic policy materialised in financial resources. This was done through the form of buildings dedicated to research the memorandum, which was produced by the and development. Thus, in 2006 the provin- provincial civil servants and the provincial ce’s civil servants took a first step to translate executive to explicitly define the campus con- ‘campus development’ into existing regional cept. The memo was not written for purely policies and the acceleration agenda. At that semantic reasons because its aim was to distin- time, direct investments of the Province that guish between ‘real’ campuses and the ‘ordi- would bind DSM were not possible, because nary’ industrial and business estates that were the cluster policies were mainly focused on only using the campus label for marketing rea- mobility, job market and education, etc., and sons. Moreover, the memo detailed the prov- not on physical developments, so the civil ince’s commitment to ‘real’ campuses and to servants needed to find new opportunities to other initiatives that were not considered to link DSM to the region. be ‘real’. In the memo, the province ‘acknowl- edged’ two campus developments within the Interessement: from ‘power clusters’ to campus region: the ‘Research and Business Campus’ development – After the 2007 provincial elec- in Geleen and the ‘Health Sciences Campus’ tions, the ideas of the civil servants made it in Maastricht, through which the civil servants into the board of the province, since the new and the executive detailed roles for both the provincial executives continued the accelera- province and the two ‘real’ campuses in tion agenda and explored the possibilities for Geleen and Maastricht (Provincie Limburg campus development as the integration of dif- 2008). Other initiatives such as Greenport ferent sectoral policies, such as physical envi- Venlo or AVANTIS in Heerlen/Aachen were ronment, labour market, economic policy and not considered campuses by the province innovation policy. The province’s civil servants because they did not meet the criteria men- continued to explore campus development as tioned in the memo (cf. Jacobs & Kooij 2013).

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However, in line with most of the Dutch prov- involving the actors within the province with inces, the official policy was still aimed at clus- the national discourse, but the actors still ter development, and the decision in favour of needed to be enrolled to create and sustain campus development had to be democratically a stable network. Therefore, in 2010, the organised through the Provincial States. To Province enrolled DSM and UM into a con- align their ideas with the prevailing policy dis- sortium, and they started working on a mas- course, the civil servants had to find a way to ter plan for the ‘CHEMaterials’ cluster. The interest other actors to actively argue for cam- goal of the master plan was to develop the pus development, but how? ‘Chemelot Campus’ – as it was now called instead of ‘Research Campus’– to become Interessement: in sync with the national the Euro-regional and international location discourse – Two national reports on campus for businesses, education and research organ- development conducted for the Ministry of isations in the ‘CHEMaterials’ (Wagemans & Economic Affairs (EZ) in 2009 (BCI 2009; Przybylski 2011). The province would con- Boekholt et al. 2009) played an important role tribute 80 per cent of the funds for the cam- in aligning campus development in Limburg pus’ real estate while the other two with the national policy discourse. These consortium members, DSM and UM, would reports turned out to be well in line with Lim- each contribute 10 per cent of the funds, the burg’s vision, because the provincial civil serv- argument being ‘market failure’ (Provincie ants had actively contacted EZ and the Limburg 2011a). However, these plans had organisations working on the reports to to be approved by the provincial states, inform them about Limburg’s view and activ- which implied that they needed to be ities for campus development. This contact enrolled, which was not an easy task as the proved to be very productive for the province political landscape was scattered with three because the second of the two reports quali- parties in office and five in opposition. fied the ‘Research Campus’ in Geleen as a ‘mature campus’ of ‘national importance’ and Enrolment: the campus real estate plans in the ‘Maastricht Health Campus’ as a campus the provincial states – The preliminary work in its ‘growth-phase’ and ‘potentially of was done in a commission of the provincial national importance’ (BCI 2009). This report states, where the plans were discussed with aligned the Limburg memorandum on cam- the representatives of the eight political par- pus development with the networks of the ties. The members of the Economic Provin- national government, which made campus cial Council Commission criticised the real development a contemporary policy tool. estate investments of the province, because Very important for the Limburg case, the the province, in fact, was financing the solu- first report also explained the possible roles tion for DSM’s written-off real estate. How- for governments in campus development, with- ever, the provincial executive counter-argued out transgressing the European rules concern- that if the province did not participate in the ing state aid (Boekholt et al. 2009). According real estate of the Chemelot Campus, DSM to the report, it was possible for governments would probably leave the region (Statencom- to assist initiatives through investments in infra- missie voor het Economisch Domein 2011). structure such as roads, but real estate was con- What members of the commission doubted sidered to be the limit (Boekholt et al. 2009). specifically about the campus, however, was Moreover, because the reports were written for the amount of estimated jobs for ‘knowledge EZ and were in line with the province’s view workers’ and the consequences for semi and onthematter,theprovincecouldusethese unskilled workers in the region that the cam- reports to further prioritise the only two ‘real’ pus would bring. Job creation for semi and campuses in the province. unskilled workers was the key argument for the Province to invest in the campus plan Enrolment: from innovation of the regional and – indirectly – to support companies economy to real estate development – The and research institutes. However, in actuality, network of civil servants succeeded in these arguments were weak and based on

VC 2017 Royal Dutch Geographical Society KNAG POLICY COMPETITION IN DUTCH LIMBURG 7 projections. In general, the commission mem- advanced shared services on the Chemelot bers’ doubts were about the project’s goals site (enabling technologies) (Provincie Lim- and assessments, so the provincial executive burg 2012a, 2012b). decided to monitor and assess the project’s Ultimately, these decisions by the provin- progress and thus the consequences for the cial states, together with the internal deci- labour market via a regular reporting system sions of DSM and UM, led to the creation of (Provincie Limburg 2011b; Statencommissie Chemelot Vastgoed (real estate) CV (Limited voor het Economisch Domein 2011). partnership) on 16 October 2012, owned for The promises of the Executive were suffi- almost 80 per cent by the Province of Lim- cient to bring the plans to the provincial burg (Provincie Limburg 2013). This meant states where the decisions had to be made. that DSM was successfully tied to the region, During the meeting, the members of the pro- and with the launch of a new brand in 2014, vincial states no longer had substantial cri- ‘Brightlands’, a representative spokesperson tique on the campus plans and on the was created for the network of DSM, UM, province’s financial commitment, an invest- Chemelot Vastgoed, the Chemelot Campus, ment of about e65 million. However, because the Maastricht Health Campus and the Prov- none of the parties in the consortium of ince of Limburg (Brightlands 2014). DSM, UM and the Province of Limburg wanted to directly invest in real estate, a real estate company was established with the CONCLUSION three parties as the only shareholders. The Province would participate in 80 per cent of This paper dealt with the issue of policy com- the investments and DSM and UM would be petition that comes with an entrepreneurial responsible for 10 per cent each (Provincie governance style and picking ‘winners’ and Limburg 2011c; Statencommissie voor het ‘losers’. More specifically, it dealt with the Economisch Domein 2011). Financial resour- balancing act of a regional government ces were enrolled and a stable network – as between unfair competition on the one detailed in the interessement phase – hand, and the looming retreat of a multina- materialised. tional on the other. These issues were explored in a region in decline: the Dutch Mobilisation: the Limburg Campus Plan and Province of Limburg. The analysis drew tickets to Limburg’s bright future – The cre- upon an analytical framework developed by ated network was represented through the Callon (1986), Law (1992, 2008) and Latour launch of a joint campus plan. This ‘Lim- (1986, 2005), and focused upon the various burg Campus Plan’ was discussed at length moments of translation to understand the in the media through joint press releases of stabilisation of a network dedicated to the the consortium, and it was publicly presented binding of a multinational to the region. to the minister of EZ in The Hague with Initially in 2005, the DSM Research Cam- much media fanfare (Provincie Limburg pus in Geleen was a private real estate devel- 2011a), including ‘4D movies’ and interviews opment of DSM to counterbalance DSM’s with all the consortium’s leading figures (e.g. empty real estate caused by its switch from CampusplanLimburg 2011). bulk chemistry to life sciences and materials. In 2011, the campus master plans were fur- Until then, the Province was not engaged in ther translated into business plans, and at campus development but only in cluster poli- the start of 2012, these plans were discussed cies. The problematisation that was formu- in the provincial states and they approved lated by the provincial civil servants was the financing of another e34,650,000. Rang- triggered by DSM’s Copernicus operation: ing from loans to participations, these funds how to bind DSM to the region? Next, a were for the real estate of the Chemelot cam- moment of translation, interessement, con- pus, the participation of a new venture fund sisted of various ways to involve other actors, (Limburg Ventures II), the development of a such as the province, DSM, UM to create a science programme and the establishment of network. This was carried out through the

VC 2017 Royal Dutch Geographical Society KNAG 8 HENK-JAN KOOIJ concept of ‘campus development’, a new pol- processes around spatial-economic concepts icy practice dedicated to the strengthening show that seemingly innocent concepts have of R&D infrastructure. Important in the inter- far reaching economic consequences for a essement phase was the aligning with the region. It allows us to understand the far national discourse to justify the campus pol- from straightforward issues of governments in icy for the Provincial States of Limburg. Dur- attempts to strengthen their territories, and in ing the third moment, enrolment, actors this case, that innovative policy concepts were enrolled to form a network around needed to be developed to comfort the vested campus development, and specifically around interests within the region. the DSM campus ‘Chemelot’ in Geleen and the Health Campus in Maastricht. Plans were Acknowledgements developed by a consortium of DSM, UM and I would like to thank Arnoud Lagendijk, Joren the provincial civil servants, which had to Jacobs, Daan Boezeman and the anonymous pass the provincial states. Through aligning with the national discourse on campuses (see reviewers for their valuable comments and sugges- Figure 1 and Kooij 2015), and threats that tions to improve the quality of the paper. In addi- DSM would leave the region, the plans were tion, I would like to thank all the respondents for politically approved which led to the provin- their cooperation and valuable input and time for ce’s active participation in the real estate this study. development of the Chemelot Campus for an Note 80 per cent share. Mobilisation occurred in the first instance through representatives 1. In this paper, translation is thus broader con- from the consortium, but soon through the ceived than just merely translating words or launch of a new spokesperson called ‘Bright- texts into another language or medium, see lands’ which represented the campus network Law 1992, 2008. and helped to stabilise it. In conclusion, the campus case in Limburg shows that overcoming the issues of policy REFERENCES competition was realised through a set of strategies that worked on network-building ADDIE, J.-P. D. (2015), On the road to the in- within the province, as well as networking between city: Excavating peripheral urbanisation with national discourses on campus develop- in Chicago’s ‘Crosstown Corridor’. Environment ment. Both network-building internally within and Planning A 48, pp. 825–843 the region, and externally to assure alignment BCI (2009), Fysieke investeringsopgaven voor campus- with broader policy discourses was crucial in sen van nationaal belang. Nijmegen: BCI. creating a stable actor-network that could BEGG, I. (1999), Cities and Competitiveness. Urban channel resources towards two ‘winners’, that Studies, 36, pp. 795–809. is, Chemelot and Health Campus Maastricht. BOEKHOLT, P., NAGLE,M.&ZUIJDAM, F. (2009), The role of the civil servants in this matter Campusvorming. Studie naar de meerwaarde was crucial in the stabilisation of the networks, van campussen en de rol van de overheid met betrek- although their capacities stem from their net- king tot campusvorming. Amsterdam: Technopolis. worked position instead of unique talents. BONTJE, M. & P. LAWTON, P. (2013), Mobile poli- They worked ‘behind the screens’ to develop cies and shifting contexts: city-regional competi- a new policy tool to bind businesses to the tiveness strategies in Amsterdam and Dublin. region, which was at the same time politically Tijdschrift voor economische en sociale geografie, 104, acceptable. This policy innovation was only pp. 397–409. possible through the networking of the actors, BRIGHTLANDS (2014), Brightlands announced in The through which practices and ideas from other Hague. Geleen and Maastricht: Brightlands. campuses were translated into new financial CALLON, M. (1986), Some elements of a sociology constructions to invest in real estate to bind of translation: domestication of the scallops and multinational DSM to the region. If under- the fishermen of St. Brieuc Bay. In:LAW,J. stood through an ANT-lens, the translation (ed.) Power, action and belief. A new sociology of

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