November 2014 Regional Innovation Policies
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New Series 12 | November 2014 November 2014 Regional Innovation Policies IN THIS ISSUE Regional Innovation Policies US Regional Innovation Policies and Cluster Dynamics: Some Thoughts by Roger R. Stough PAGE 03 Smart specialisation and the Regional Policy of the European Union by Riccardo Crescenzi PAGE 12 Promoting Innovation in Chile by Patricio Aroca PAGE 17 Centres of Regional Science: University of São Paulo, Brazil by Carlos R. Azzoni PAGE 15 RSAI Prize Winners Hirotada Kohno Award Martin Beckmann Award PAGE 8 Meet the Fellows Masahisa Fujita PAGE 9 New Series 12 | November 2014 1. Introduction enhancement of human wellbeing should be the guiding principle of our academic discourse and of 1.1 Welcome from the President our regionbased interventions and policies. by JeanClaude Thill Political instability forced us to cancel our World Congress last May in Bangkok/Ayutthaya, Thailand. Regions have been under a lot of Many of our scheduled participants were robbed of stress this year. On the one hand, the opportunity to meet and exchange their ideas we have experienced attempts at about their regions, our regions. We all feel a void as greater devolution in two a result. The newsletter that was scheduled to be countries of Western Europe, the distributed at the World Congress and again at the United Kingdom and Spain. In the European Congress in August never reached our former case, a referendum has members. We encourage you all to read the issue of confirmed the desire of a majority of the local May 2014 on the web site of the Regional Science population to stay put with the current institutional Association International at framework, while continuing to enjoy considerable http://regionalscience.org/images/PDF/Newsletter_2 autonomy. The case of Catalonia within the context 014_May_2.pdf or on our Facebook account. In fact, of the Spanish state is at odds with the British we hope you will “Like” us a lot and often! process since the referendum option is deemed As always, I welcome your comments and unconstitutional, at least at the time of the writing of suggestions on all matters contributing to making this note. At the other end of the European space, RSAI a better community for us all. My inbox is turbulence has brewed with the separation of Crimea waiting for you: Jean[email protected]. from Ukraine, and its attachment to Russia. Nearby, some regions of Eastern Ukraine are clamoring loud 1.2 Welcome to the 2014 NARSC and violently their right to be part of Russia. On the Congress other hand, further afield to the southeast, civil war by Neil Reid, Executive Director, North American Regional and violence fueled by certain interpretations of Science Council religious texts have rekindled old rivalries and new fanaticism aimed at creating new institutional Dear Colleagues: frameworks spanning multiple regions. These events On behalf of the North American should not leave us indifferent. Early regional Regional Science Council scientists were much concerned about the (NARSC) I extend to each of you connections between regional development, a very warm welcome to the balanced development, wellbeing, and peaceful Washington, D.C. region. These living. Walter Isard was not only the father of are the 61st annual North American Meetings of the Regional Science, but also worked actively for the Regional Science Association International (RSAI). creation of Peace Science, and of the Peace Science Based on registration numbers this will be the largest Society. Let us not forget this connection and this rich meeting of regional scientists ever to have been held heritage. Political neutrality should not be construed in North America with over 800 in attendance. As to mean indifference, passivity, and disregard for the such, this conference provides attendees with basic principle of humanity that makes us, human access to a wonderful diversity of individuals, ideas, beings, different from other animals. Respect and and perspectives and I hope that you will use the 1 New Series 12 | November 2014 next few days to broaden your intellectual horizons. strategic imperatives in global industries. Premised In addition to catching up with old friends and on theoretical advances in research into global colleagues I also hope that you will use this production networks (GPNs) and global value chains conference to expand your professional network. The (GVCs), a dynamic perspective of strategic coupling success of any conference is, to a large extent, the is further developed and reconstructed to result of considerable behindthescenes work. A demonstrate how regional development can result number of individuals, most notably our program from the interaction effects of these regional assets chair, Rachel Franklin (Brown University) and local and GPN logics. This perspective also points to organizers John Carrurthers (George Washington different modes of strategic coupling for University) and Meagan Cahill (The Urban Institute), understanding the changing pathways of regional have worked countless hours to ensure that the development. Several key issues for regional policy conference goes smoothly and is enjoyed by all. If and practice are outlined to substantiate this call for you see Rachel, John, and Meagan during the a shift towards a dynamic and multiscalar view of conference please take a few seconds to thank them regional development in today’s global economy. for all their hard work. With my very best wishes for a very enjoyable and 1.4 Welcome from the Editors productive conference. by Andrea Caragliu and Graham Clarke 1.3 RSPP lecture at the 2014 NARSC congress by Henry Yeung Regional development in the global economy: a dynamic perspective of strategic coupling in Andrea Caragliu Graham Clarke global production networks A Regional Science: Policy & Practice lecture to be Welcome to another RSAI newsletter. This issue presented at the Annual North American Meeting of revolves mainly around regional innovation policies. the Regional Science Association International, The changing nature of globalization and the Washington, DC, 1215 November 2014. prolonged economic slump are responsible for exposing the weaknesses of advanced countries in Henry Waichung Yeung terms of innovation and knowledge generation ([email protected]) capacity. While the US and the EU have been Professor of Economic Geography; increasing their R&D expenditure (even during the Department of Geography, National ‘crisis’ years), challenges to their established position University of Singapore are coming from developing countries whose R&D has been growing even faster. Limited public In this lecture, Prof. Yeung presents a rethinking of resources, also because of the prolonged economic the trajectories of regional development in an era of contraction, call for sound allocation methods. economic globalization. He argues for a more To this aim, Roger Stough (George Mason dynamic perspective on regional development that University) discusses recent evolutions in US incorporates both endogenous regional assets and innovation policies. Several examples of the 2 New Series 12 | November 2014 increasing complexity of these policies are provided represents a crucial asset for the university, and the territorial microfoundations of regional especially because of the frantic development innovation systems (and the associated place pattern of Brazil and the large (and persistent) specific elements) are discussed in his article. economic disparities across different areas of the An additional article on the issue of regional Country. Within this framework, NEREUS members innovation policies discusses the EU’s Smart strive to offer regional policymakers scientifically Specialisation Strategies (S3). Riccardo Crescenzi sound advice. (London School of Economics) guides us through the An innovation in the format of the Newsletter starts history of this concept and the way it has actually from this issue. Elisabete Martins takes over as been deployed in the EU context. Because of the person in charge of formatting the newsletter. She large amount of money being disbursed on the basis proposed a new format which, we hope, will increase of this policy, a thorough discussion of S3 and its the newsletter readability. merits and limitations may well start from Riccardo’s Once again, we would like to thank all authors, who synthesis. continuously feed interesting articles and we are A final article by Patricio Aroca (Universidad Adolfo confident our readers, by going through the Ibáñez, Chile) discusses the recent developments in Newsletter, will find pleasure in maintaining a close regional innovation policies in Chile, as a case study relationship with the Association, irrespective of their for the diversified picture of the Latin American location. If you believe a regional policy may be of continent. After the inception of democracy, the interest and hasn't been covered yet on the growth pace of the Country has been fast and Newsletter, please let us know by writing us relatively steady. Patricio summarizes the main steps ([email protected] and [email protected]). made by the Chilean government to further stimulate As finally for the Association’s News, Section 3 growth by enhancing a worldclass innovation reports some new developments and discusses a system and sketches a set of possible bottlenecks few recent RSAI events. these policies should be facing if policymakers want We both hope you will enjoy the read! to maximize the returns to this investment. In the second part of the Newsletter we fly to Kyoto. 2. Regional Innovation Policies I: For the ‘Meet the Fellows’ column, Prof. Masahisa US Regional Innovation Policies Fujita (Kyoto University) talks about his lifetime and Cluster Dynamics: Some career – from his childhood spent in a village in Thoughts Western Honshu, through his first encounter with by Roger R. Stough, George Mason University, School of Walter Isard at UPenn, to his research Policy, Government and International Affairs achievements. We found his tale fascinating and we are sure you will share our opinion! Innovation is the process of Finally, Prof.