Geographical Origins ofRegional Innovation Systems

Dr. Phil CookeAdjunct Professor, Department of

Development & Planning, Aalborg University

The Classic Regional InnovationSystem

Regional socioeconomic and cultural setting

Knoweldge, resources and human capital flows and interactions

Knowledge application & exploitation subsystem

Knowledge generation & diffusion subsystem

firms

collaborators

customers

Competitors

contractors

Techno logy

mediating

organ isat ions

workforce

mediating

organ isat ions

Public Research

organ isat ions

Educational

organ isat ions

Fig 1. The Regional Innovation System: A schematic illustration

Three Tributaries• Its ‘theoretical distinctiveness’ attracts fascination for regional

innovation systems, which according to Carlsson (2007) is thedominant innovation studies field since refereed articles beganappearing in the mid-1990s (Cooke, 1992). Its key elements in thisregard are the following:

• 1) It is based in systems theory, an epistemology it shares withmuch actual science, engineering and technology, but proximatelywith the tradition of ‘systems theories of planning’ (McLoughlin, 1969;Chadwick, 1971)

• 2) It populates its perspective on the object of interest with coresystems concepts such as ‘networks, nodes and interactions’including feedback and ‘institutional learning’ (Lundvall & Johnson,1994)

• 3) It is influenced by the Neo-Marshallian ‘industrial districts’concepts of ‘localised production systems’, co-operative relations,and innovation support systems

Evolutionary Systems Innovation

• Accordingly, it is consciously evolutionary, having pioneered theintroduction of evolutionary economics thinking in regionalinnovation studies (Cooke, Uranga & Etxebarria, 1997; 1998) andhelped found the new and broader sub-field of ‘evolutionaryeconomic geography’, whose inaugural network meeting occurred inSt. Catharine’s College, Cambridge in April, 2006 (Boschma &Martin, 2008).

• Interestingly, it is open to small elements (increasing returns,asymmetric information, principal-agent relations, and possiblytransaction costs) but not the whole of neo-classical economics orspatial econometrics.

• This is owing to its Neo-Schumpeterian interest in variety, search,selection, routines, trust, embeddedness, collaboration, innovation,learning, path dependence, institutional change, disequilibrium andknowledge intermediation practices of institutions and organisations,including firms. These ‘bring life back into economic(s) geography’to paraphrase Hodgson (1993).

Inside the ‘Black Box’ in the InnovativeRIS Region

Regional Innovation System

RegionalSocialcapital

Regionalknowledge

culture

RegionalInstitutions

GlobalisingNetworkRelations

Policy

Cluster Variety

BiotechCluster

Knowledge Transfer and R&D Outsourcing

KnowledgeTransfer

R&DOutsourcing

KnowledgeCommunity ICT

Cluster

CreativeCluster

The Innovative Region

RIS Support System for Creative Region

KnowledgeEntrepreneurship

Financing Creativity & Innovation

Regional Innovation System

Creative Region

Cultural Economy &Creative Industries

Knowledge Transfer & R&D Outsourcing

Knowledge Exploitation

Knowledge Exploration

MAR and Jacobs

• Boschma, Frenken, Van Oort et al Utrecht• MAR ascribed view that sectoral or cluster

specialisation furthers innovativeness• Jacobs ascribed view that diversification of

sectors is key to innovativeness• Research by Cantwell/Iammarino (2003);

Utrecht Team; C. Ketels - suggests growthdynamics (including innovation) are moreassociated with ‘related variety’

Related Variety

• An evolutionary concept• Variety enhances health of species (cf. Dutch

elm disease; or contemporary devastation ofPonderosa pine forest in BC, Canada)

• Too much diversity makes ‘lateral absorptivecapacity’ difficult =‘cognitive dissonance’

• Neighbouring and proximate knowledgeinteraction ‘adds value’ to localised knowledgespillovers

• Clusters have some, but limited, related variety

Greater Boston/Massachusetts: ASpecialised MAR RIS

DBF Abroad

DBF Non - proximate

DBF Proximate

Research Institute Proximate

DBF R&D Organiser

Research Institute Non - proximate

Big Pharma Proxima te

Big Pharma Non - proximate

Big Pharma Abroad

Fig 1: Biotechnology Linkages: Massachusetts DBF R&D Organisations (Based on Orsenigo et al., 2001)

Sankyo (J), Kirin (J), Chugai (J), Roche (SW), Bayer (G), Pharmacia (SD), Rhone P oulenc (F), Hoechst (G)

Sankyo (CA), Kirin (CA), Chugai (CA), Monsanto (MO), Abbott (IL), Bayer (NC), Paine Webber (NJ), Roche (NJ), Pharmacia Upjohn (NJ), Wyeth (PA) Schering Plough (NJ), DuPont (DL), Rhone Poulenc (PA), Hoechst (NJ), Bristol Myers Squib b (NJ), Merck (NJ).

RW Johnson (SD)

Stanford (SV)

Burnham Institute (SD)

Alpha - Gene (G.Bos)

Genetics Institute (G. Bos)

ArQule (G. Bos)

Dyax (Camb)

Ariad

(Camb)

Gene Therapy (G. Bos)

Genzyme

(Camb)

Harvard

(Camb)

Ontogeny (Camb)

Acadia (SD)

ICA Gen (NC)

Aurora (SD)

Chiron (SF)

Scriptgen (SD)

Scios (SD)

Genentech (SF)

Signal (SD)

Affymax (PA)

Immunex (WA)

Corvas (SD)

Genovo (PA)

Cytogen (PA)

MorphoSys (G) Cambridge Antibody Tech. (UK) UK)

Solvay (BE)

Micro-elektronica

Nanotechnologie

TelematicaCommunicatie

E-security

Mechatronica

Feed – food

- health

Life

sciences

L-SEC

DSP-Valley

Leuven.Inc

A Jacobian RIS Platform

Researched RIS 1995-2004: NetworkingTendency

GRASSROOTS NETWORK DIRIGISTE

L

O

C

A

L

I

S

T

Tuscany

Tampere

Denmark

Slovenia

Tohoku

(Japan)

B

U

S

I

N

T

E

R

A

C

T

I

V

E

Catalonia

Baden -

Württemberg

Gyeonggi

(Korea)

I

N

E

S

S

I

N

N

O

V

G

L

O

B

A

L

I

S

E

D

Ontario

Brabant

(NL)

North Rhine -

Westphalia

Wales

Singapo re

A

T

I

O

N

GOVERNANCE OF ENTERPRISE INNOVATION SUPPORT

What de we not know?

• How to determine the ‘contextual’ effect on RIS& cluster performance….business cycle, etc.

• What are the real effects of RIS & cluster policyon innovation system evolution?

• Can RIS set-ups, work for traditional industry?

• What, if any RISs for rural areas in theknowledge economy

• Are undiscovered key intermediaries importantto RIS economic performance?

Terra Incognita: but some clues

• The ‘contextual effect’ is admitted to becrucial to the fate of cluster growth. E.g.400,000 jobs lost in Silicon Valley 2000-2002 (Ketels/Porter)

• This has significant effects on theinfluence of policy

• This explains some disaffection with &turning to RIS and away from ‘clusterpolicies’ e.g. Spain, UK

Tuscany & Traditional RIS 1& 2

• Wine Associations e.g. Chianti, Grossetto• Tuscany Region/‘Strade Del Vino’ – 16 Wine Tours• Hospitality Association – Benvenuti in Toscana• Enoteca Training, Fiesole (nr. Florence)• High School & University Cuisine Training• Racolta Organic Food Distribution• Cuisine Farms, Art Farms, Agro-Tourism• Etruscan, Roman Archaeology• 3 Eco-Museums, GeoParks• Orchestras, Music Schools (e.g. Limana), Art Institutions,

L’Accademia Fine Arts, Florence

Rogaland-Stavanger Culinary Innovation Platform

AquacultureResearch

Gastronomisk Institutt

‘ Meat and Drink Arena ’

University of StavangerHospitality and Tourism Management

Research on Omega 3 Food Enrichment

Regional, National and Global Supplier Industries (e .g . Horticulture, Organic Seafood and Meat, Non - organic Food, Ceramics, Wine, Beer and Spirits, Equity Finance, Culinary Law and Logistics, Chilling and Freezing, Restaurant Design)

Food Science Training Food High School Training

Government of Norway

Innovation NorwayRegions and Counties

Gourmet Chefs, Sommeliers & Waiters

Bocuse D ’Or European Cuisine Championships, “ Buffet ”Chef , “Young Chefs ” Competition s, “Green Fair, Gladmat , Food & Wine Festivals

Gourmet Restaurants ”Fusion ” Restaurants Etc.

Stavanger -Rogaland ”Norway ’s Finest Culinary Cluster ”

Tuscany & Traditional RIS 1& 2

• Wine Associations e.g. Chianti, Grossetto• Tuscany Region/‘Strade Del Vino’ – 16 Wine Tours• Hospitality Association – Benvenuti in Toscana• Enoteca Training, Fiesole (nr. Florence)• High School & University Cuisine Training• Racolta Organic Food Distribution• Cuisine Farms, Art Farms, Agro-Tourism• Etruscan, Roman Archaeology• 3 Eco-Museums, GeoParks• Orchestras, Music Schools (e.g. Limana), Art Institutions,

L’Accademia Fine Arts, Florence

-RubyRedLabs

-MusicToday-Ink.inc

-Androme-CreateThe- SpiDynamics-Pure Hacking-Ink.inc

-Thunderhead-Password

CrackersInc.

-Cisilion-SpiDynamics-Pure Hacking

-Cuttlefish Digital Arts-Thunderhead-RubyRed Labs-FFAB:UK-Magnetic One-1st Avenue Machine

DigitalMedia/IT

-IntellectualVentures

-Acacia-PAN-IP-Smileyworld-Stealth

Industries

-Intellectual VenturesPatent Trolls

-Innocentive-Deveraux &

Deloitte-Vantage Law

-Focalyst-Innocentive-Syngene

-Advanced FuelResearch Inc.

-InternationalTechnologicalUniversity

-Deveraux & Deloitte-Oxford Business Group-Future Farmers

Researchers

-What If!-Cambridge/MIT Institute-Yet2.com

-Transitions-Cambridge/MIT Institute-Honey Bee

Network-NineSigma-YourEncore

-Yet2.com-BrainStore-What If!-Brain Reactions-Big Idea Group

Seekers

Web-BasedStart UpMNCs

ExploitersChannelsConnect &Develop

Entrepreneur

EntrepreneurshipKNOWLEDGE

New Intermediaries: Knowledge Entrepreneurs?

Innovation & DesignKEs in Europe

Red= 1, Black= 4

Innovation & DesignKEs in US

Red= 1, Black= 4

Conclusions

• Economic geography and regional sciencehave progressed dramatically in the fifteenyears of RIS research and policy

• Plenty of new challenges face the newgenerations of spatial researchers

• Policy remains a challenge BUT we haveenlarged our knowledge base substantially

• Thus there is a good intellectual base forthe next ten years of RIS research