Professional Documents
Culture Documents
Territorial Innovation in
Less Developed Regions
Governance, Technologies,
and Sustainability
Edited by
Filipe Teles
Carlos Rodrigues
Fernando Ramos
Anabela Botelho
Palgrave Studies in Sub-National Governance
Series Editors
Linze Schaap, Tilburg University, Tilburg, The Netherlands
Jochen Franzke, University of Potsdam, Potsdam, Germany
Hanna Vakkala, Faculty of Social Sciences, University of Lapland,
Rovaniemi, Finland
Filipe Teles, University of Aveiro, Aveiro, Portugal
This series explores the formal organisation of sub-national government
and democracy on the one hand, and the necessities and practices of
regions and cities on the other hand. In monographs, edited volumes and
Palgrave Pivots, the series will consider the future of territorial governance
and of territory-based democracy; the impact of hybrid forms of territo-
rial government and functional governance on the traditional institutions
of government and representative democracy and on public values; what
improvements are possible and effective in local and regional democracy;
and, what framework conditions can be developed to encourage minority
groups to participate in urban decision-making. Books in the series will
also examine ways of governance, from ‘network governance’ to ‘triple
helix governance’, from ‘quadruple’ governance to the potential of ‘mul-
tiple helix’ governance. The series will also focus on societal issues, for
instance global warming and sustainability, energy transition, economic
growth, labour market, urban and regional development, immigration
and integration, and transport, as well as on adaptation and learning
in sub-national government. The series favours comparative studies, and
especially volumes that compare international trends, themes, and devel-
opments, preferably with an interdisciplinary angle. Country-by-country
comparisons may also be included in this series, provided that they contain
solid comparative analyses.
Filipe Teles · Carlos Rodrigues ·
Fernando Ramos · Anabela Botelho
Editors
Territorial Innovation
in Less Developed
Regions
Governance, Technologies, and Sustainability
Editors
Filipe Teles Carlos Rodrigues
University of Aveiro University of Aveiro
Porto, Portugal Porto, Portugal
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Acknowledgements
This volume stems from the work developed within the framework
of a research project focused on understanding the innovation poli-
cies in less developed regions in Europe.1 Despite the specific focus on
the Portuguese case of lagging regions, it aims at providing concep-
tual improvements useful to other geographies, as it fosters the debate
through the contribution from leading experts in the different topics
addressed.
From this debate and clash between well-established conceptual frame-
works and the experience resulting from several of the case studies, we
expect to provide new insights on how to assess the diverse approaches to
the processes of territorial innovation in European less developed regions,
as well as to the role of communities in such processes.
The editors would like to acknowledge and thank all the authors for
their contributions for this book. A word of appreciation to the different
research centres at the University of Aveiro that provided the support for
the research, and to the community of researchers and colleagues involved
in the project over the last years. A book is always a collective endeavour,
and this volume is ultimately the result of many contributions given to
v
vi ACKNOWLEDGEMENTS
the initial drafts of the chapters that were presented in multiple formats
in different settings.
We would like to acknowledge the important role of the main funding
partner, the Centro Region managing authority in Portugal, not only for
the financial support, but also for its involvement as an active player in
discussing results and opportunities stemming from this initiative.
The editors would like to thank especially Anna Dabrowska for her
attentive reading of the final manuscript.
The editors,
Filipe Teles
Carlos Rodrigues
Fernando Ramos
Anabela Botelho
Contents
Part I Models
2 New Models of Innovation in Old Industrial Regions 9
Kevin Morgan and Dylan Henderson
3 On the Performance of Regional Innovation Systems 31
Vitor Miguel Ribeiro, Celeste Varum, and Ana Dias Daniel
4 Social Tipping Dynamics for Disruptive Innovation
Policies Towards a Stable Climate Scenario 77
Sara Moreno Pires and Pedro Silva
5 Digital Technologies and Mediation in the Context
of Territorial Innovation 97
Oksana Tymoshchuk, Maria João Antunes,
Margarida Almeida, Luís Pedro, Fernando Ramos,
Eliza Oliveira, and Daniel Carvalho
vii
viii CONTENTS
Part II Tools
7 Digitalisation in a Multilevel Governance Context:
The Case of Cohesion Policy 141
Julie Pellegrin and Louis Colnot
8 Prototyping a Digital Platform to Promote
(Hyper)mediation Practices in the Territory 163
Eliza Oliveira, Daniel Carvalho, Fernando Ramos,
Luís Pedro, Maria João Antunes, Margarida Almeida,
and Oksana Tymoshchuk
9 The Role of Strategic Environmental Assessment
for Sustainability in Urban Systems Transformation 181
Alexandra Polido
Index 303
Notes on Contributors
xi
xii NOTES ON CONTRIBUTORS
Apart from his academic work, he has worked with the OECD, the Euro-
pean Commission’ DG Regio and regional governments and development
agencies throughout Europe.
Fernando Nogueira holds a Ph.D. in Social Sciences. He is an Assistant
Professor at the Department of Social, Political and Territorial Sciences
of the University of Aveiro. He teaches courses in the fields of urban
and regional planning, public administration, and public policy, and is
presently the Director of the M.Sc. in Urban and Regional Planning.
He is a collaborating member of the Research Unit GOVCOPP—
Governance, Competitiveness and Public Policy, where he has developed
research work on governance and territorialised policies, public participa-
tion and collaborative decision-making.
Eliza Oliveira completed her degree in 2011 at the Federal University
of Minas Gerais and holds a master’s degree in Informatics from the
Federal University of Paraíba (2015), both in Brazil. Currently, she is
a Ph.D. student and researcher at the DigiMedia research centre, where
she participated as a fellow in the CeNTER project.
Luís Pedro holds a Ph.D. on Didactics. He is an Assistant Professor
at the Department of Communication and Art, University of Aveiro,
Portugal, where he lectures in Communication Sciences and Technolo-
gies undergraduate, graduate and doctoral courses. His research interests
are related with participatory and social media development, integration
and assessment in educational and training contexts.
Julie Pellegrin is Senior Consultant in the Development and Evalua-
tion Unit at CSIL—Centre for Industrial Studies (Milan, Italy). She has
a longstanding experience in public policy analysis and evaluation, as
well as policy and technical advisory in the fields of local and regional
development, Cohesion policy and public policy delivery mechanisms
and governance. She has been having research and teaching experience
in various European Universities, including University of Milan (IT),
Université de Reims Champagne-Ardenne (FR), Maastricht University
(NL) and the University of Birmingham (UK).
Sara Moreno Pires is Assistant Professor of Public Policies at the Depart-
ment of Social, Political and Territorial Sciences of the University of
Aveiro and a member of the Research Unit on Governance, Competi-
tiveness and Public Policies (GOVCOPP). She holds a Ph.D. in Applied
xvi NOTES ON CONTRIBUTORS
June 2014, he was one of those responsible for preparing the regulation
parameters of the electricity sector for the regulatory cycle of 2015–2017.
He was also a member of ANACOM’s Council Support Department
between April 2015 and October 2016, where he carried out research in
the context of infrastructure sharing agreements and regulatory policy on
wholesale access markets 3a and 3b. After doing post-doctoral research
at the University of Manchester, Aveiro and Porto, he was Assistant
Researcher at Fundação Consuelo Vieira da Costa. Since September 2021,
he is Assistant Professor at the Faculty of Economics of the University
of Porto, where he is responsible to teach Econometrics (undergraduate
and graduate levels), Industrial Economics and Regulation of Utilities.
His main research interests are regulatory policy, theoretical and empirical
studies of multi-sided markets, theoretical and empirical econometrics,
efficiency analysis and computer science.
Carlos Rodrigues is Associate Professor at the Department of Social,
Political and Territorial Sciences of the University of Aveiro (Portugal).
He holds the position of head of department since 2015 and the coor-
dination of the University of Aveiro’s Center for Asian Studies and
Master in Chinese Studies since 2011. He is a member of the Research
Unit on Governance, Competitiveness and Public Policy—GOVCOPP.
His research focuses on territorial innovation systems, particularly on
the role science, technology and innovation policy and practice play in
systemic, territorially based development processes, and Asian studies,
particularly in the domains of EU-China relations, and sports, power and
development.
Pedro Silva holds a Ph.D. in Marketing and Strategy and teaches courses
in the field of management. Presently, he is a researcher at CeBER—
Centre for Business and Economics Research at University of Coimbra.
His research focuses on international business, strategic management,
marketing and regional innovation systems. He has authored several
articles in international peer-reviewed journals.
José Carlos Silva holds a bachelor’s degree in Tourism and a master’s
degree in Tourism Management and Planning. He presented a thesis
named “The importance of tourism for the development of low-density
territories”, focused on the effects that the tourism activity could have
in developing and improving territories. He has experience in creating
xviii NOTES ON CONTRIBUTORS
xix
xx LIST OF FIGURES
xxi
xxii LIST OF TABLES
xxiii
CHAPTER 1
over the world. Social innovation, for instance, has emerged in several
continents as a solution for the gaps left by the welfare state waning
and the inherent dismissal of the public sector as major provider of basic
social services (Starke, 2006). Moreover, sustainability goals have been
brought to the forefront of the innovation debate, extending the expec-
tations towards innovation from economic productivity concerns to the
wider realm of a (innovation-driven) sustainable development, harmo-
niously balancing the economic, social, and (mainly) environmental facets
of human societies (Polido et al., 2019).
This widening conceptual ground gave rise to a reinforced (and
broader) idea of innovation as a social and interactive endeavour, thus
highly dependent on territorial contexts. The need for place-based inclu-
sive and democratic modus cogitandi and modus operandi (e.g. Barca,
2009) to ignite and sustain innovative dynamics has been put at the heart
of innovation policy and practice. Smart specialisation, the inspirational
source of EU regional policy since 2010, provides a good illustration of
this trend, namely when taking into account the centrality of the so-
called entrepreneurial process of discovery. Furthermore, (place-based)
innovation policy and practice have been also wrapped up by a fuzzy
and shallow discursive veil, full of concepts and buzzwords lacking mean-
ingful substance and thus subject of fragile consensuses. The role of
communities in innovation has been particularly vulnerable to this rhetor-
ical entanglement. In fact, there is plenty of evidence (e.g. Raco, 2005)
showing the gap dividing a discourse pledging sustainability and inclusive-
ness and the outcome of subsequent action. Morgan (2004), purposefully,
talks about the imbalance of policy design and policy delivery capabili-
ties. Still, it would be unfair to look at the possibility of occurrence of
innovation-engaged communities in such a pessimistic vein. Dedicated to
community-led innovation, this book grounds this assertion.
The book brings together the knowledge stemming from an orig-
inal research project on territorially based innovation, carried out at the
University of Aveiro, Portugal, with the purposeful insights of inter-
national acknowledged and leading experts in the field. As a result,
by setting well-established conceptual frames of reference against novel
perspectives built upon the learning experiences and findings of the
project, it provides a fresh approach to innovation and territory, with
emphasis on the multifaceted role (local) communities can play in the
mitigation of the effects inherent to the organisational and institutional
1 COMMUNITY-LED INNOVATION: FACTS, RHETORIC, … 3
unfolds. Morgan and Henderson, in the first chapter, use social innova-
tion, mission-oriented innovation and foundational economy as models
that acknowledge the challenges of engaging in innovation as a place-
based process, thus recognising the real needs of society, economy, and
the environment. The second chapter, authored by Ribeiro, Varum and
Daniel, presents the results of a literature review exercise, focused on
regional innovation systems, which soundly confirms the inadequacy of
‘one-size fits all’ approaches to innovation policy and, concomitantly,
the unlikely possibility of replicating success cases in different territo-
rial contexts, due to a wide range of specificities. The following chapter,
written by Pires and Silva, acknowledges the pressures faced by national,
regional, and local policymakers when attempting to design and imple-
ment effective innovation policies, powerful enough to respond to current
societal challenges, prompting the authors to bring forward the claim for
putting forward small changes that can cause disruptive systemic changes
through social tipping dynamics. Tymoshchuk, Antunes, Almeida, Pedro,
Ramos, and Oliveira e Carvalho propose a conceptual framework to build
up hypermediation technological platforms with the capacity to serve
as complementary mechanism supporting citizen involvement and active
participation in (community-led) innovation. Closing the first part, Silva,
Pires, Polido, Rodrigues, and Teles argue in favour of the integration of
broader and far-reaching goals in innovation models that are serving as
frame of reference for the regional development endeavour, namely in
less developed regions, thus going beyond the traditional and prevalent
targets of economic competitiveness and convergence.
The second part starts with Pellegrin and Colnot’s approach to the
ways public policies can impact on digitalisation, namely at the regional
level and a multilevel governance dynamic, suggesting, with basis on the
analysis of EU cohesion policy, the high relevance of tools favouring
collaborative governance. Oliveira, Carvalho, Ramos, Pedro, Antunes,
Almeida, and Tymoshchuk, in the seventh chapter, describe the design,
development, and validation processes of a prototyped hypermediation
platform, which aims at facilitating collaboration among networked agents
involved in community-led innovation initiatives. The last chapter of this
block, authored by Polido, introduces strategic environmental assess-
ment as a tool capable to support enhanced decision-making processes,
bringing sustainability to the forefront of territorially based policies and
thus benefits to the environment and communities.
1 COMMUNITY-LED INNOVATION: FACTS, RHETORIC, … 5
The third part opens with Marques’ sound statement that policy is not
a technocratic endeavour, but rather the outcome of specific power rela-
tions affected by dichotomic tensions between cooperation and conflict,
consensus and disagreement, trust and opportunistic behaviour, which,
because constantly changing due to endogenous and exogenous pres-
sures. Nogueira’s chapter provides a thorough discussion on integrated
urban sustainable development strategies with focus on governance and
scope ambiguities, underlining the gap dividing the consensual notion
of territorial cohesion as policy artefact and the real capacity of many
territorial contexts to materialise it, and claiming for increased and conse-
quent community involvement. On Chapter 11, Almeida, Daniel, and
Botelho bring over the challenges faced by rural and low-density territo-
ries and, drawing on a case study approach to policy and practices aimed
at counteracting decline, highlight the relevance of a multilevel, multi-
actor, and multifaceted mode to foster innovation and entrepreneurship
in those territorial contexts. The problem of low-density territories is
also discussed in Costa, Silva and Morais’ chapter, in which the authors
shed light over the role tourism activities play in mitigating the devel-
opment barriers these territories experience, while claiming for a better
understanding of the situation and its uniqueness and acknowledging
the central part to be played by local governments. The last chapter of
the book, authored by Chamusca and Marques, underlines, on the one
hand, the value of bottom-up approaches to innovation policy design and
implementation and, on the other hand, the need for monitoring and
evaluation mechanisms, endowed with the capacity to collect, process and
model large volumes of data, in order to generate relevant and timely
knowledge.
References
Asheim, B. T. (1999). Interactive learning and localised knowledge in globalising
learning economies. GeoJournal, 49(4), 345–352.
Barca, F. (2009). Pursuing equity through place-based development policies:
Rationale and the equity efficiency issue. In Proceedings of the OECD/TDPC
Symposium on Regional Policy (Vol. 2). Organisation for Economic Co-
operation and Development.
Cooke, P., & Morgan, K. (1999). The associational economy: Firms, regions, and
innovation. OUP Catalogue.
6 C. RODRIGUES AND F. TELES
Models
CHAPTER 2
K. Morgan (B)
School of Geography and Planning, Cardiff University, Cardiff, UK
e-mail: MorganKJ@cardiff.ac.uk
D. Henderson
Cardiff Business School, Cardiff University, Cardiff, UK
e-mail: hendersond3@cardiff.ac.uk
may also require new roles for the state in addressing complex and uncer-
tain social and ecological challenges, acting as a co-producer, targeted
finance, procurement and regulation (Healy & Morgan, 2012). This new
role for the state, however, will also require new metrics to assess the
returns from its purchasing support, based on ‘values for money’ rather
than traditional metrics of value for money that emphasise the lowest cost
(Morgan, 2019, p. 87).
Mission-oriented innovation policy: while the policy options for social
innovation remain underdeveloped, mission-oriented innovation policy
has emerged as a specific model to address long-term social challenges,
but also those related to ecological and economic challenges. These
missions were initially created in response to technological challenges,
such as the Manhattan project and the Apollo Mission (Mowery et al.,
2010). More recent work has broadened the notion of missions to
include climate change, environmental degradation, health and well-
being. Missions can be characterised by the following features:
for all citizens within a local area (The Foundational Economy Collective,
2018). They represent the daily services that are either purchased from
household income or delivered free at the point of use to households by
public services and private enterprises (Coenen & Morgan, 2020).
The everyday nature of the foundational economy services and their
localised production and consumption has been identified as an alter-
native to the competitiveness and growth model for the economy. By
their very nature of being everywhere it has been argued that the foun-
dational economy may have the potential to act as a stabiliser of the local
economy, with something to offer everyone everywhere (Engelen et al.,
2017; Morgan, 2019), immobile and shielded from the global economy
through regulations (Barbera et al., 2018). Some estimates suggest that
FE employment accounts for more than 40% of jobs in many devel-
oped countries. Proponents, however, argue that the metrics used to
assess the importance of the foundational economy need to move beyond
traditional indicators such as GDP and productivity and consider citizen
well-being (Froud et al., 2020).
The concept of the foundational economy challenges traditional,
neoliberal policy prescriptions for regions based on support for inward
investment, hi-tech firms, recognising that such firms do not always
diffuse benefits back to their local economies (Froud et al., 2020).
Instead of targeting leading firms, the foundational economy reverses this
approach and focuses on everyday sectors grounded in the economy and
collective consumption of these goods and services. While innovation may
be viewed as part of the traditional model of industrial policy, this repre-
sents a narrow conception of innovation (Morgan, 2019). Indeed rather
than being ‘luddites’ (Coenen & Morgan, 2020, p. 19), foundational
services can make use of advanced digital technologies in their delivery
to improve service delivery (Hansen, 2021; Reynolds et al., 2021). This
may not be the high-tech of Silicon Valley and other technology-based
regions, but the adoption, use and diffusion of social innovations to
help to improve the services and working conditions of foundational
economy employment and citizen well-being (MacKinnon et al., 2021).
But notwithstanding these advances in understanding of the founda-
tional economy, the potential role for innovation remains ambiguous
(Coenen & Morgan, 2020). Here concerns have been noted that this
literature has developed a ‘fixation on technical innovation for produc-
tivity gain within social innovation’ (Engelen et al., 2017, p. 420).
Elsewhere, broader concerns about the potential for technology-enabled
14 K. MORGAN AND D. HENDERSON
The traditional policy repertoire for old industrial regions has included
inward investment, infrastructure provision, skills and business support
(MacKinnon et al., 2021). While innovation policies have been devel-
oped in such regions (not least through programmes such as smart
specialisation), the new models of innovation offer possibilities for old
industrial regions to develop a social form of innovation that is better
attuned to their place-based context and challenges (Morgan, 2019).
In this respect, they highlight the potential of directionality and user
perspectives in innovation policy, offering old industrial regions an oppor-
tunity to ensure that social, economic and environmental challenges are
given prominence in place-based policies for innovation. This framing
may include elements of traditional science, technology and innovation
support, alongside social innovation and ecological innovation. As noted
above, the spatially dispersed nature of the foundational economy, for
example, provides a way of targeting support for innovation on the needs
of citizens, business and the environment.
The new models of innovation show that novel technology solutions
may not be the most important form of innovation in old industrial
regions, lacking, as many do, high-tech firms. Instead, it offers possibil-
ities for old industrial regions to diffuse existing technologies in their
economies (Reynolds et al., 2021). Such technologies, however, are
‘nested in a wider process of industrial transformation and institutional
adaptation’ (Coenen et al., 2015, p. 862). In the digital sphere, for
example, old industrial regions face both opportunities from such tech-
nologies (as has been highlighted during the pandemic), but also possible
regional disruptions. Here research has highlighted the potential for big
tech monopolies to suck economic value out of less developed regions,
and concentrate this in leading tech regions (Feldman et al., 2021). The
lack of headquarters in less developed regions has also been cited as
a factor limiting investment in novel green energy initiatives (Jones &
Munday, 2020).
The multiscalar nature of governance for innovation may provide addi-
tional challenges for deploying new models of innovation policy in old
industrial regions. Here the growing complexity of policies and levels of
governance have been found to present coordination challenges in such
regions (Magro et al., 2014; Nilsson & Moodysson, 2014). The broad
range of actors associated with policies for social and ecological innovation
also require policymakers to find new ways of interacting with users in the
design and delivery of such policies in old industrial regions. Introducing
16 K. MORGAN AND D. HENDERSON
such policies, however, faces barriers, given the dominance of the narrow
S&T narrative in many regions (Coenen & Morgan, 2020; Henderson,
2020).
For all the potential benefits offered by the new models of innova-
tion for old industrial regions a number of uncertainties remain. Firstly,
while these models might offer a more inclusive basis for innovation,
institutional capacity and the ability to design and implement innova-
tion initiatives in old industrial regions have been identified (Hassink &
Kiese, 2021). This is further reflected in the general constraints in the
availability of funding for education, health and social care in the public
sector (Coenen & Morgan, 2020). Second, although experiments have
been identified as providing a basis for learning and feedback, there is a
challenge of moving beyond this to scaling up successful examples. This
is an area where good practice has been noted as a ‘bad traveller’. Third,
social innovation may provide an attractive policy recipe, but this may not
be able to redress the dominance of the S&T policy narrative (even in old
industrial regions). In this respect, regional innovation policy prescrip-
tions have been found to persist over time with agents activity seeking
to support their maintenance (Henderson, 2020). In light of these chal-
lenges and the multilevel governance arrangements characterising regional
innovation policy, the question remains how and whether place-based
actors in old industrial regions can harness these new innovation models
to produce transformative improvements to social outcomes and address
the real needs of citizens.
The coastal zone is now the main economic driver, and its competitive-
ness needs to be sustained to help raise the economic potential of Wales
as a nation. The heavy commuting flows between the Valleys and the
coast mean that the area functions as an interdependent but unplanned
urban network… This needs to be built on constructively, making Cardiff
the focal point of a coherent and successful urban network in South East
Wales, enabling it to share its prosperity…The area will function as a single
networked city-region on a scale to realise its international potential, its
national role and to reduce inequalities. (Welsh Government, 2004)
18 K. MORGAN AND D. HENDERSON
However, almost a decade lapsed before any real progress was made
in creating “a single networked city-region” in South East Wales and
even then it took two extra-regional factors to disrupt the political status
quo in the region. The formation of the Manchester city-region in
2011 was the first external shock to the regional status quo, not least
because it provided compelling evidence that city-regionalism had estab-
lished itself on the UK political agenda in the UK. Ten local authorities
had forged a new strategic entity, the Greater Manchester Combined
Authority (GMCA), to promote economic development and to create a
more strategic space for the purposes of strategic planning for transport
and the like. The rise of the GMCA triggered the second external shock
as it persuaded the Welsh Government to launch a Task & Finish Group
to explore the potential of city-regionalism in Wales and the final report
recommended the formation of two new city-regions in South East Wales
and Swansea Bay. As well as identifying potential economic benefits, the
report argued that a city-region approach would also allow for a more
strategic approach to planning, learning and skills, transport and housing
allocation, all of which needed to be planned on a regional rather than a
local scale (Haywood, 2012).
The formation of the Cardiff Capital Region in 2013 was facilitated by
the financial incentive of a City Deal, one of the many such local deals
that central government was offering to city-regions throughout the UK
(Beel et al., 2021; Waite & Morgan, 2018). In the case of the CCR, the
City Deal was worth a total of £1.2 billion over twenty years, funded by
£500 m from UKG, £500 m from Welsh Government and £120 m from
the borrowing capacity of the ten local authority members. Although the
financial incentive of the City Deal helped the ten municipalities to create
a new regional institution—in the form of a Regional Cabinet—there
were still many political challenges to be overcome before a truly effec-
tive governance system could emerge among ten municipalities with such
widely different socio-economic circumstances. One of the earliest polit-
ical challenges revolved around the voting system: Should it be based on
one member one vote, as the smaller municipalities wanted, or should
voting rights be differentially weighted according to population size, as
the larger municipalities preferred?
This combustible issue of voting rights had the potential to undermine
all the political goodwill that had been carefully crafted in preceding years,
even though nine of the ten municipalities were controlled by the same
party, the Labour Party. In the event, an effective regional governance
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 19
system was fashioned through two key political decisions. Firstly, the
voting rights issue was eventually resolved in favour of one member one
vote regardless of the size of the authority and its financial contribution,
an outcome that secured the commitment of the smaller municipalities.
Secondly, each of the municipal leaders was allocated a thematic portfolio
in the Regional Cabinet in addition to their local mandate, a decision that
nurtured regionalism and tempered tribalism. An independent assessment
of the CCR City Deal noted that these institutional innovations helped
to create “a network rather than a hierarchy” (SQW, 2020, p. 22).
If a strong political consensus has been forged within the CCR region,
the same cannot be said of the other partners in the City Deal. Unlike the
City Deals in England, which are based on a bilateral partnership between
central government and the local leaders of the city-region, the City Deals
in Wales are part of a trilateral arrangement as the Welsh Government
and the UK Government are also partners (Waite & Morgan, 2018).
Although these two governmental partners are part of the wider gover-
nance system—as they have to approve the CCR’s funding through a
series of gateway reviews that assess progress against agreed targets—
they are embroiled in deep political arguments, with the result that the
CCR finds itself caught in the middle because it needs to maintain good
relations with both its higher level partners. The basic political conflict
revolves around “the new centralism”, whereby the UK Conservative
government is retaining for itself the powers that were repatriated from
Brussels after Brexit—even though many of these powers were meant
to be devolved to the nations of Scotland, Wales and Northern Ireland.
This post-Brexit political battle means that London and Cardiff are both
designing innovation and economic development policies for the CCR
region; but these policies are being designed and delivered in parallel
policy silos, making a mockery of the integrated regional development
strategy that was recommended for Wales by a recent OECD review
(OECD, 2020).
To appreciate the relationship between CCR and the Welsh Govern-
ment, it is necessary to understand that there are now two models of
devolution in the UK: the traditional model of national devolution,
involving the powers that have been devolved from London to the
devolved nations in Scotland, Wales and Northern Ireland, and the subna-
tional model, which involved devolution of powers and functions within
Wales to groups of municipalities that form the four new regions of Wales.
Being the largest and best resourced, the CCR often finds itself at the
20 K. MORGAN AND D. HENDERSON
game and (b) the granular deliberation process within the CCR itself was
designed to identify thematic areas and concrete projects.
In the generic deliberation process, the three partners—UKG, WG and
the CCR—agreed the broad targets and the gateway process for assessing
progress against the targets. The key targets that were finally agreed upon
were that the City Deal should aim to achieve a 5% uplift in regional gross
value added (GVA) and create an additional 25,000 jobs over its twenty-
year lifetime. To meet these targets the City Deal secured £1.2 billion,
of which £734 m is ringfenced for the South Wales Metro, a mass transit
system to integrate the city and its region, leaving a Wider Investment
Fund of £495 million to fund the CCR’s key priorities. The granular
deliberation process has been conducted within the CCR system, which
consists of the ten municipal leaders in the Regional Cabinet, supported
by the CCR executive officers and by the Economic Growth Partner-
ship (EGP), composed of the representatives of business, third sector,
education and local government. The EGP’s role is to advise the CCR
Regional Cabinet on investment decisions, using its expertise to identify
those projects that fit the CCR’s objective of creating a more innova-
tive region with sustainable jobs and resilient communities. Through a
combination of commissioned research and its own engagement activity,
the CCR identified three key thematic priorities for its Wider Investment
Fund—innovation, infrastructure and challenge.
On the innovation front the largest and most controversial investment
to date has been the Compound Semiconductor Cluster (CSC) project,
where £38.4 million was advanced towards the costs of a compound semi-
conductor foundry at Imperial Park, Newport, an investment that is being
matched with investment from IQE plc, a commercial manufacturer of
semiconductor wafers, which occupies the foundry. These priority invest-
ment decisions are driven by a combination of short-term and long-term
rationales. In the short term, the CSC project was deemed to be impor-
tant in securing IQE’s ongoing investment in the region as there was
a very high risk that investment could have been lost to an alternative
site in the United States had the Newport site not been made available.
But this was not a case of traditional regional policy using grants to lure
branch-plant factories, a strategy that was littered with failures such as
Inmos and LG Electronics. The longer-term rationale is for the project
to secure substantial commercial investment in manufacturing and devel-
opment and to support the development of a wider ‘cluster’ of compound
semiconductor activity in South Wales, linked with academic expertise at
22 K. MORGAN AND D. HENDERSON
GVA, jobs and private leverage are the key objectives most frequently
associated with City and Growth Deals. Challenge funds still deliver on
these – but intentionally don’t start out with the answer, the amount or
a specific project. Instead, they start with data and a problem statement.
Through exploration, the answer, solution or project is arrived at. The
process drives innovation and unlocks added value for both the problem
owner and problem solver(s). It is unlocking the added value, development
of the innovative end outcome and the creative processes therein, that
contribute to City Deal objectives. The focus of the proposed programme
is to re-build local economies for a post-Covid world, through solving soci-
etal challenges that have economic impact and potential commercial-scale
opportunities. (Cardiff Capital Region, 2020)
Mr. Densch sat in the corner of Mrs. Densch’s Louis XIV boudoir.
He sat all hunched up on a little gilt pinkbacked chair with his
potbelly resting on his knees. In his green sagging face the pudgy
nose and the folds that led from the flanges of the nostrils to the
corners of the wide mouth made two triangles. He had a pile of
telegrams in his hand, on top a decoded message on a blue slip that
read: Deficit Hamburg branch approximately $500,000; signed
Heintz. Everywhere he looked about the little room crowded with
fluffy glittery objects he saw the purple letters of approximately
jiggling in the air. Then he noticed that the maid, a pale mulatto in a
ruffled cap, had come into the room and was staring at him. His eye
lit on a large flat cardboard box she held in her hand.
“What’s that?”
“Somethin for the misses sir.”
“Bring it here.... Hickson’s ... and what does she want to be buying
more dresses for will you tell me that.... Hickson’s.... Open it up. If it
looks expensive I’ll send it back.”
The maid gingerly pulled off a layer of tissuepaper, uncovering a
peach and peagreen evening dress.
Mr. Densch got to his feet spluttering, “She must think the war’s
still on.... Tell em we will not receive it. Tell em there’s no such party
livin here.”
The maid picked up the box with a toss of the head and went out
with her nose in the air. Mr. Densch sat down in the little chair and
began looking over the telegrams again.
“Ann-ee, Ann-ee,” came a shrill voice from the inner room; this
was followed by a head in a lace cap shaped like a libertycap and a
big body in a shapeless ruffled negligée. “Why J. D. what are you
doing here at this time of the morning? I’m waiting for my
hairdresser.”
“It’s very important.... I just had a cable from Heintz. Serena my
dear, Blackhead and Densch is in a very bad way on both sides of
the water.”
“Yes ma’am,” came the maid’s voice from behind him.
He gave his shoulders a shrug and walked to the window. He felt
tired and sick and heavy with flesh. An errand boy on a bicycle
passed along the street; he was laughing and his cheeks were pink.
Densch saw himself, felt himself for a second hot and slender
running bareheaded down Pine Street years ago catching the girls’
ankles in the corner of his eye. He turned back into the room. The
maid had gone.
“Serena,” he began, “cant you understand the seriousness...? It’s
this slump. And on top of it all the bean market has gone to hell. It’s
ruin I tell you....”
“Well my dear I dont see what you expect me to do about it.”
“Economize ... economize. Look where the price of rubber’s gone
to.... That dress from Hickson’s....”
“Well you wouldnt have me going to the Blackhead’s party looking
like a country schoolteacher, would you?”
Mr. Densch groaned and shook his head. “O you wont
understand; probably there wont be any party.... Look Serena there’s
no nonsense about this.... I want you to have a trunk packed so that
we can sail any day.... I need a rest. I’m thinking of going to
Marienbad for the cure.... It’ll do you good too.”
Her eye suddenly caught his. All the little wrinkles on her face
deepened; the skin under her eyes was like the skin of a shrunken
toy balloon. He went over to her and put his hand on her shoulder
and was puckering his lips to kiss her when suddenly she flared up.
“I wont have you meddling between me and my dressmakers.... I
wont have it ... I wont have it....”
“Oh have it your own way.” He left the room with his head
hunched between his thick sloping shoulders.
“Ann-ee!”
“Yes ma’am.” The maid came back into the room.
Mrs. Densch had sunk down in the middle of a little spindlelegged
sofa. Her face was green. “Annie please get me that bottle of sweet
spirits of ammonia and a little water.... And Annie you can call up
Hickson’s and tell them that that dress was sent back through a
mistake of ... of the butler’s and please to send it right back as I’ve
got to wear it tonight.”
S
eeping in red twilight out of the Gulf
Stream fog, throbbing brassthroat that
howls through the stiff-fingered streets,
prying open glazed eyes of skyscrapers,
splashing red lead on the girdered thighs of
the five bridges, teasing caterwauling
tugboats into heat under the toppling
smoketrees of the harbor.
Spring puckering our mouths, spring
giving us gooseflesh grows gigantic out of
the droning of sirens, crashes with
enormous scaring din through the halted
traffic, between attentive frozen tiptoe
blocks.
r. Densch with the collar of his woolly ulster up round his ears
M and a big English cap pulled down far over his eyes, walked
nervously back and forth on the damp boat deck of the
Volendam. He looked out through a drizzly rain at the gray wharf
houses and the waterfront buildings etched against a sky of
inconceivable bitterness. A ruined man, a ruined man, he kept
whispering to himself. At last the ship’s whistle boomed out for the
third time. Mr. Densch, his fingers in his ears, stood screened by a
lifeboat watching the rift of dirty water between the ship’s side and
the wharf widen, widen. The deck trembled under his feet as the
screws bit into the current. Gray like a photograph the buildings of
Manhattan began sliding by. Below decks the band was playing O
Titin-e Titin-e. Red ferryboats, carferries, tugs, sandscows,
lumberschooners, tramp steamers drifted between him and the
steaming towering city that gathered itself into a pyramid and began
to sink mistily into the browngreen water of the bay.
Mr. Densch went below to his stateroom. Mrs. Densch in a cloche
hat hung with a yellow veil was crying quietly with her head on a
basket of fruit. “Dont Serena,” he said huskily. “Dont.... We like
Marienbad.... We need a rest. Our position isnt so hopeless. I’ll go
and send Blackhead a radio.... After all it’s his stubbornness and
rashness that brought the firm to ... to this. That man thinks he’s a
king on earth.... This’ll ... this’ll get under his skin. If curses can kill I’ll
be a dead man tomorrow.” To his surprise he found the gray drawn
lines of his face cracking into a smile. Mrs. Densch lifted her head
and opened her mouth to speak to him, but the tears got the better of
her. He looked at himself in the glass, squared his shoulders and
adjusted his cap. “Well Serena,” he said with a trace of jauntiness in
his voice, “this is the end of my business career.... I’ll go send that
radio.”
Mother’s face swoops down and kisses him; his hands clutch her
dress, and she has gone leaving him in the dark, leaving a frail
lingering fragrance in the dark that makes him cry. Little Martin lies
tossing within the iron bars of his crib. Outside dark, and beyond
walls and outside again the horrible great dark of grownup people,
rumbling, jiggling, creeping in chunks through the windows, putting
fingers through the crack in the door. From outside above the roar of
wheels comes a strangling wail clutching his throat. Pyramids of dark
piled above him fall crumpling on top of him. He yells, gagging
between yells. Nounou walks towards the crib along a saving
gangplank of light “Dont you be scared ... that aint nothin.” Her black
face grins at him, her black hand straightens the covers. “Just a fire
engine passin.... You wouldn’t be sceered of a fire engine.”
Ellen leaned back in the taxi and closed her eyes for a second.
Not even the bath and the halfhour’s nap had washed out the
fagging memory of the office, the smell of it, the chirruping of
typewriters, the endlessly repeated phrases, faces, typewritten
sheets. She felt very tired; she must have rings under her eyes. The
taxi had stopped. There was a red light in the traffic tower ahead.
Fifth Avenue was jammed to the curbs with taxis, limousines,
motorbusses. She was late; she had left her watch at home. The
minutes hung about her neck leaden as hours. She sat up on the
edge of the seat, her fists so tightly clenched that she could feel
through her gloves her sharp nails digging into the palms of her
hands. At last the taxi jerked forward, there was a gust of exhausts
and whir of motors, the clot of traffic began moving up Murray Hill. At
a corner she caught sight of a clock. Quarter of eight. The traffic
stopped again, the brakes of the taxi shrieked, she was thrown
forward on the seat. She leaned back with her eyes closed, the
blood throbbing in her temples. All her nerves were sharp steel
jangled wires cutting into her. “What does it matter?” she kept asking
herself. “He’ll wait. I’m in no hurry to see him. Let’s see, how many
blocks?... Less than twenty, eighteen.” It must have been to keep
from going crazy people invented numbers. The multiplication table
better than Coué as a cure for jangled nerves. Probably that’s what
old Peter Stuyvesant thought, or whoever laid the city out in
numbers. She was smiling to herself. The taxi had started moving
again.
George Baldwin was walking back and forth in the lobby of the
hotel, taking short puffs of a cigarette. Now and then he glanced at
the clock. His whole body was screwed up taut like a high
violinstring. He was hungry and full up with things he wanted to say;
he hated waiting for people. When she walked in, cool and silky and
smiling, he wanted to go up to her and hit her in the face.
“George do you realize that it’s only because numbers are so cold
and emotionless that we’re not all crazy?” she said giving him a little
pat on the arm.
“Fortyfive minutes waiting is enough to drive anybody crazy, that’s
all I know.”
“I must explain it. It’s a system. I thought it all up coming up in the
taxi.... You go in and order anything you like. I’m going to the ladies’
room a minute.... And please have me a Martini. I’m dead tonight,
just dead.”
“You poor little thing, of course I will.... And dont be long please.”
His knees were weak under him, he felt like melting ice as he
went into the gilt ponderously ornamented diningroom. Good lord
Baldwin you’re acting like a hobbledehoy of seventeen ... after all
these years too. Never get anywhere that way.... “Well Joseph what
are you going to give us to eat tonight? I’m hungry.... But first you
can get Fred to make the best Martini cocktail he ever made in his
life.”
“Tres bien monsieur,” said the longnosed Roumanian waiter and
handed him the menu with a flourish.
Ellen stayed a long time looking in the mirror, dabbing a little
superfluous powder off her face, trying to make up her mind. She
kept winding up a hypothetical dollself and setting it in various
positions. Tiny gestures ensued, acted out on various model stages.
Suddenly she turned away from the mirror with a shrug of her
toowhite shoulders and hurried to the diningroom.
“Oh George I’m starved, simply starved.”
“So am I” he said in a crackling voice. “And Elaine I’ve got news
for you,” he went on hurriedly as if he were afraid she’d interrupt him.
“Cecily has consented to a divorce. We’re going to rush it through
quietly in Paris this summer. Now what I want to know is, will you...?”
She leaned over and patted his hand that grasped the edge of the
table. “George lets eat our dinner first.... We’ve got to be sensible.
God knows we’ve messed things up enough in the past both of us....
Let’s drink to the crime wave.” The smooth infinitesimal foam of the
cocktail was soothing in her tongue and throat, glowed gradually
warmly through her. She looked at him laughing with sparkling eyes.
He drank his at a gulp.
“By gad Elaine,” he said flaming up helplessly, “you’re the most
wonderful thing in the world.”
Through dinner she felt a gradual icy coldness stealing through
her like novocaine. She had made up her mind. It seemed as if she
had set the photograph of herself in her own place, forever frozen
into a single gesture. An invisible silk band of bitterness was
tightening round her throat, strangling. Beyond the plates, the ivory
pink lamp, the broken pieces of bread, his face above the blank
shirtfront jerked and nodded; the flush grew on his cheeks; his nose
caught the light now on one side, now on the other, his taut lips
moved eloquently over his yellow teeth. Ellen felt herself sitting with
her ankles crossed, rigid as a porcelain figure under her clothes,
everything about her seemed to be growing hard and enameled, the
air bluestreaked with cigarettesmoke, was turning to glass. His
wooden face of a marionette waggled senselessly in front of her. She
shuddered and hunched up her shoulders.
“What’s the matter, Elaine?” he burst out. She lied:
“Nothing George.... Somebody walked over my grave I guess.”
“Couldnt I get you a wrap or something?”
She shook her head.
“Well what about it?” he said as they got up from the table.
“What?” she asked smiling. “After Paris?”
“I guess I can stand it if you can George,” she said quietly.
He was waiting for her, standing at the open door of a taxi. She
saw him poised spry against the darkness in a tan felt hat and a light
tan overcoat, smiling like some celebrity in the rotogravure section of
a Sunday paper. Mechanically she squeezed the hand that helped
her into the cab.
“Elaine,” he said shakily, “life’s going to mean something to me
now.... God if you knew how empty life had been for so many years.
I’ve been like a tin mechanical toy, all hollow inside.”
“Let’s not talk about mechanical toys,” she said in a strangled
voice.
“No let’s talk about our happiness,” he shouted.
Inexorably his lips closed on to hers. Beyond the shaking glass
window of the taxi, like someone drowning, she saw out of a corner
of an eye whirling faces, streetlights, zooming nickleglinting wheels.
The old man in the checked cap sits on the brownstone stoop with
his face in his hands. With the glare of Broadway in their backs there
is a continual flickering of people past him towards the theaters down
the street. The old man is sobbing through his fingers in a sour reek
of gin. Once in a while he raises his head and shouts hoarsely, “I
cant, dont you see I cant?” The voice is inhuman like the splitting of
a plank. Footsteps quicken. Middleaged people look the other way.
Two girls giggle shrilly as they look at him. Streeturchins nudging
each other peer in and out through the dark crowd. “Bum Hootch.”
“He’ll get his when the cop on the block comes by.” “Prohibition
liquor.” The old man lifts his wet face out of his hands, staring out of
sightless bloodyrimmed eyes. People back off, step on the feet of the
people behind them. Like splintering wood the voice comes out of
him. “Don’t you see I cant...? I cant ... I cant.”