CIRCLE, Lund University, Sweden Discussion: REGIO-ERSA Joint Lecture by Prof. Kevin Morgan: The Public Animateur: Place-based Innovation and the Smart State Michaela Trippl CIRCLE, Lund University, Sweden Brussels, 17th June, 2016

Introduction Rethinking the role of governments and public policy: the entrepreneurial, experimentalist, smart state From glorifying the market towards glorifying the state? Acknowledging new elements in the discussion: integration of ideas from new industrial policy (NIP)

Overview The smart state is not a monolith The smart state and the challenge of inclusive governance The smart state in less-developed regions: the outward looking and anchoring state

The smart state is not a monolith Bewildering array of organisations / units at the municipal, regional, national and EU policy level Variety of public authorities & policy organisations directly or indirectly shape innovation & diversification capacities of regional economies Smart policy organisations do not suffice Coordination challenges: horizontal policy coordination (innovation policy does not suffice) & vertical policy coordination (MLG) Autonomy challenges - smart but powerless: smart regional policy actors located in centralist states?

The smart state and the challenges of inclusive governance Challenges of embedded autonomy: forging public- private interaction – avoiding policy capture by vested interest groups Coordination capacity of the private sector: a neglected theme? Experimenting with inclusive governance: beyond top- down policies and involvement of “usual suspects”

The smart state and the challenges of inclusive governance Challenges vary considerably across regions: Challenges in developed regions: balancing between established and new actors / giving voice to previously overlooked actors: beyond triple helix constellations Challenges in less-developed regions: absence of interlocutors: limited capabilities (SMEs) or limited interest (MNCs, universities)

The smart state in less-developed regions State: part of the solution or part of the problem? Poor quality of government: fundamental barrier to regional development & innovation  institutional reforms as core challenge Less-developed regions are not a homogeneous group: wide variation of potentials and challenges in LDRs in Southern, Eastern and Central / Northern parts of Europe

Structural change in LDRs Routes of path development New path creation Path importation Path branching Path upgrading Path extension Which route of diversification should LDRs choose? Path importation: an overlooked phenomenon? Which type of policy is required?

The smart state in less-developed regions The outward looking state … Activating endogenous potentials and harnessing exogenous sources of change Fundamental dilemma of LDRs: strong need for non- local knowledge but weak attraction and absorption capacities

Smart specialisation and non-local sources of transformation Exogenous sources of new regional industrial path development: the challenge for LDRs Smart specialisation and non-local sources of transformation Attraction capacity Anchoring capacity Need high low low Non-local knowledge links Trade linkages R&D collaborations Global innovation networks GVCs Arrival of new actors from outside the region Organizational actors: (Resettlement of firms, establishment of R&D bodies) Individual actors (highly skilled people, engineers, entrepreneurs, scientists) LDRs: thin RIS Thick & specialized RIS Thick & diversified RIS low high high

The smart state in less-developed regions The outward looking and anchoring state Creating a favourable regional environment for the local diffusion of incoming knowledge  policies promoting the absorption and anchoring capacity Combining actor-based and system-based policies

Many thanks for your attention ! michaela.trippl@circle.lu.se