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Territorial Innovation in Less

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PALGRAVE STUDIES IN
SUB-NATIONAL GOVERNANCE

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

Fernando Ramos Anabela Botelho


University of Aveiro and University University of Aveiro
Portucalense Porto, Portugal
Porto, Portugal

ISSN 2523-8248 ISSN 2523-8256 (electronic)


Palgrave Studies in Sub-National Governance
ISBN 978-3-031-20576-7 ISBN 978-3-031-20577-4 (eBook)
https://doi.org/10.1007/978-3-031-20577-4

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer
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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

1 Research Program “CeNTER—Community-led Networks for Territorial Innovation”


(CENTRO-01-0145-FEDER-000002), funded by Programa Operacional Regional do
Centro (CENTRO 2020), through the ERDF and PT 2020. The funding source had
no involvement in the development of the research or in the preparation of this book.

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

1 Community-Led Innovation: Facts, Rhetoric,


and Policy Challenges 1
Carlos Rodrigues and Filipe Teles

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

6 Towards an Integrated Conceptual Framework


for Territorial Innovation in Less Developed Regions:
The Sustainable Regions’ Approach 113
Pedro Silva, Sara Moreno Pires, Alexandra Polido,
Carlos Rodrigues, and Filipe Teles

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

Part III Policy and Actors


10 The Role of State and Non-state Actors in Ensuring
the Effectiveness of Innovation Policy 199
Pedro Marques and Kevin Morgan
11 European Urban Agenda: The Predicaments
of Decentralised Coordinative Action 215
Fernando Nogueira
12 Local Development Through Entrepreneurship
and Innovation Ecosystems 245
João Almeida, Ana Dias Daniel, and Anabela Botelho
13 Tourism and Development in Lagging Regions 267
Rui Augusto da Costa, José Carlos Silva, and Diana Morais
CONTENTS ix

14 Territorial Cohesion and Innovation: A Needed


Dialogue 285
Pedro Chamusca and João Lourenço Marques

Index 303
Notes on Contributors

João Almeida holds an M.Sc. in Management, and he is currently a


Ph.D. candidate in Business & Economics (University of Aveiro). He
is a Research Fellow of the Research Unit on Governance, Compet-
itiveness and Public Policy (GOVCOPP), with a scholarship funded
by the Portuguese Science and Technology Foundation (FCT) for his
project “Entrepreneurial Ecosystems and Sustainable Local Develop-
ment of Portuguese Low-Density Municipalities”. His main research
interests are related to entrepreneurship, innovation and local/regional
development.
Margarida Almeida holds a Ph.D. in Communication Sciences and Tech-
nologies and has been developing research activities related to ‘digital
inclusion’, ‘media for all’ and ‘communication and health’. She is an
Associated Professor at the University of Aveiro and has been involved
in different research projects and scientific initiatives related to Digital
Media.
Maria João Antunes is an Assistant Professor at the Department of
Communication and Art, at the University of Aveiro, Portugal. She holds
her Ph.D. in Sciences and Technologies of Communication (2007). She
is a member of the Digital Media and Interaction Research Centre (Digi-
Media), where she develops research on transmedia-related topics. She
is currently director of the degree in Multimedia and Communication
Technologies at the UA.

xi
xii NOTES ON CONTRIBUTORS

Anabela Botelho is a Full Professor of Economics and currently serves


as the Director of the Department of Economics, Management and
Industrial Engineering, University of Aveiro, Portugal. A pioneer in the
introduction of teaching and research in Experimental Economics in the
Portuguese academy, she previously held teaching and/or research posi-
tions in several institutions. She has been, since 2019, a member of the
Scientific Committee of the Future Forum of the Calouste Gulbenkian
Foundation and, since 2008, an effective member of the Portuguese
Higher Statistical Council (CSE), nominated by the Portuguese Prime
Minister as indicated by the Council of Rectors of Portuguese Univer-
sities, and an effective member of the Standing Section of Statistical
Confidentiality of CSE. He received her Ph.D. in Economics (1998) from
the University of South Carolina, USA, and has published her research
in international journals such as Experimental Economics, Games and
Economic Behavior, Research in Experimental Economics, Contempo-
rary Economic Policy, Economics of Education Review, Public Choice,
etc.
Daniel Carvalho holds a graduation in New Communication Technolo-
gies and a master’s degree in Multimedia Communication both from the
University of Aveiro, Portugal. Currently, he is a research fellow in the
project CeNTER and a Ph.D. student in Information and Communica-
tion in Digital Platforms Ph.D. programme of the Universities of Aveiro
and Porto, Portugal. His research interests focus in user experience and
user centred design.
Pedro Chamusca holds Ph.D. in Geography at the Faculty of Arts and
Humanities of the University of Porto and is professionally qualified
in Geographic Information Systems (GIS). Presently, he is a University
Research Associate at the Communication and Society Research Centre
(CECS) of the University of Minho, where he develops research on topics
related to urban geography, territorial cohesion, GIS, governance, plan-
ning, tourism and spatial planning at the University of Minho. He teaches
several courses in the Geography Department. He is currently President
of the Portuguese Association of Geographers (APG).
Louis Colnot is a Researcher and Consultant in the Development and
Evaluation Unit of the CSIL—Centre for Industrial Studies (Milan,
Italy). He has specialised in regional and local economic development,
especially Cohesion Policy, as well as in RDI issues. He has notably
NOTES ON CONTRIBUTORS xiii

been involved in several policy-oriented research and consultancy projects


for different institutions, including the European Commission and the
European Parliament.
Rui Augusto da Costa holds a Ph.D. in Tourism. He is Assistant
Professor in the Department of Economics, Management, Industrial
Engineering and Tourism at University of Aveiro. He’s the coordinator
of Tourism and Development Research Group in the Research Unit
on Governance, Competitiveness and Public Policy. He develops his
research in the planning and project in tourism, networks, governance
and public policy and territorial dynamics of investment in the tourism
sector. He is also Associate Editor of the Journal of Tourism & Devel-
opment (SCOPUS) and member of the Organizing Committee of the
International Conference INVTUR.
Ana Dias Daniel is an Assistant Researcher at the University of Aveiro,
Portugal, where she has been lecturing courses on various subjects, such
as entrepreneurship, innovation and project management. Also, she is a
member of the Research Unit in Governance Competitiveness and Public
Policies, and as a researcher her main interests are on management issues
related to entrepreneurship, innovation and regional development. She is
member of the Editorial Board Member of the Journal of Small Business
and Enterprise Development, and member of the Organizing Committee
of the International Conference on Entrepreneurship Education. She
is/was also principal investigator of several national projects and European
funded projects.
Dylan Henderson is a Lecturer at Cardiff University and a member of
the Centre for Innovation Policy Research. His research and teaching span
business innovation, digital and regional development, where he is inter-
ested in the spatial dynamics of business and strategy development within
regional ecosystems. His research has been published in a range of leading
journals and policy publications and has included research for organisa-
tions such as the European Commission, Welsh Government, regional
development agencies and universities across Europe.
João Lourenço Marques is Assistant Professor at the Department of
Social, Political and Territorial Sciences of the University of Aveiro,
lecturing courses in the domain of the quantitative methods and tech-
niques to support decision-making, in planning and in public policy.
xiv NOTES ON CONTRIBUTORS

Currently, he is integrated member of the Research Unit in Gover-


nance, Competitiveness and Public Policies (GOVCOPP), coordinating
the Group of Systems for Decision Support. In the Research Group
on Planning and Innovation (GETIN_UA), he has been conducting
and coordinating several research and projects in the fields of strategic
spatial planning, decision support systems, spatial competitiveness anal-
ysis, demographic dynamics and forecast, econometric and economic
models for regional development. He was member of the board of the
Portuguese Association of Urban Planners (APU) and of the board of
Portuguese Association of Spatial Planners (APPLA). Now he is member
of the board of the Portuguese Regional Science Association (APDR).
Pedro Marques holds a Ph.D. in Economic Geography from CURDS,
Newcastle University and an M.A. from the same University, as well as
a B.A. in Sociology awarded by ISCTE-IUL, Lisbon. Currently, he is a
research fellow at INGENIO, an institute in Valencia (Spain) specialised
in research on innovation and science policy. He is also a visiting fellow
at the Centre for Urban and Regional Development Studies(CURDS),
Newcastle University and an affiliated member at the Centre for Innova-
tion Research at Lund University (CIRCLE). Previously, he has worked
at Cardiff University, University of Kiel and Newcastle University. His
research interests are in regional development, inequality, politics and
development, and innovation.
Diana Morais holds a degree in Tourism from the University of Trás-
os-Montes e Alto and a Master in Tourism Management and Planning
from the University of Aveiro. In the professional context, she started
in the hotel industry, in the Reception department in different regions
of Portugal. Currently, she has recently started her career on board as a
Receptionist in a cruise line in the Douro Region.
Kevin Morgan is Professor of Governance and Development in the
School of Geography and Planning at Cardiff University, where he is also
the Dean of Engagement and Co-convenor of the Centre for Innovation
Policy Research. His research interests revolve around place-based innova-
tion strategies; multilevel governance systems; sustainable food networks;
and the foundational economy. He was part of the Joint Research Council
team that co-authored Partnerships for Regional Development—Play-
book, the European Commission’s new place-based innovation strategy.
NOTES ON CONTRIBUTORS xv

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

Environmental Sciences. Currently, she is the Deputy Director of the


ENGO Common Home of Humanity and the scientific coordinator of
the Ecological Footprint of Portuguese Municipalities project, awarded
in 2022 with the UA prize for Cooperation 2021, for the strong impact
in cooperation with society for environmental sustainability. She mainly
focuses her research on public policies for urban sustainability, green tran-
sition and territorial innovation, with a focus on local governance and
sustainability indicators.
Alexandra Polido holds a Ph.D. in Environmental and Sustainability
Sciences and teaches courses in the field of environment and sustainability
strategies. She is a full researcher in the Research Unit on Gover-
nance, Competitiveness and Public Policies (GOVCOPP), where she
develops research on environmental policies and planning for sustainable
transformation, institutional governance structures and urban systems
transformation. She is a fellow of the Robert Bosch Stiftung Postdoctoral
Academy for Transformational Leadership (2021–2023). She is funded by
the Portuguese Foundation for Science and Technology (FCT) through
CEECIND/01400/2017.
Fernando Ramos holds a degree on Electronics and Telecom-
munications Engineering (1979), a Ph.D. in Electrotechnical Engi-
neering/Telecommunications (1992), and the Aggregate title (habilita-
tion) in Communication and Art/Multimedia Communication (2001),
all from the University of Aveiro; Professor at the University of Aveiro,
Portugal, since 1982; Full Professor (tenure) in Communication Sciences
and Technologies at the Department of Communication and Art (2003–
2021); Invited Full Professor (since September 2021); Rector of the
University Portucalense Infante D. Henrique (since September 2021);
Author/co-author of more than 230 scientific and technical papers,
mainly, for the last 20 years, in the area of Digital Media and Learning
and Online Education in Higher Education. Co-author/organiser of 10
scientific books. His main research interests are: Digital Media for Knowl-
edge Building in Connected Communities; Online Education in Higher
Education; Digital Media and Territorial Innovation; Learning in Smart
Territories; and International Cooperation for Development.
Vitor Miguel Ribeiro holds a Ph.D. in Economics from the Univer-
sity of Porto since January 2015, where he developed research work in
the area of two-sided markets. Under the ERSE/FEP protocol, signed in
NOTES ON CONTRIBUTORS xvii

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

sustainable tourism experiences, developing strategies to improve busi-


nesses and in analysing and monitoring investment projects. Currently,
he is working as a freelancer in the travel sector.
Filipe Teles holds a Ph.D. in Political Sciences and teaches courses in
the field of comparative local governance. Presently, he is acting as Pro-
rector for Regional Development and Urban Policies at the University of
Aveiro. He is a member of the Research Unit on Governance, Competi-
tiveness and Public Policy (GOVCOPP), where he has developed research
work on governance and local administration, territorial reforms and
political leadership. He is currently President of the European Urban
Research Association (EURA) and member of the Steering Committee of
the standing group on Local Government and Politics of the European
Consortium for Political Research (ECPR).
Oksana Tymoshchuk is Assistant Researcher at the Digital
Media and Interaction research centre (DigiMedia) with reference
UIDP/05460/2020, supported by FCT. She has a degree in educational
psychology, a master’s degree in special education, and a Ph.D. in Multi-
media in Education. In March 2021, she completed the post-doctoral
programme in Communication Sciences and Technologies. Her present
research interests are related to Special Needs, Digital Technology,
Inclusion and Territorial Innovation.
Celeste Varum is CEO of the Matosinhos Future Hub at Galp. She holds
a Ph.D. in Economics (2002) and an M.Sc. in International Business and
Economic Integration (1996) from the University of Reading (UK). She
holds degree in Economics from University of Évora (1995). Associate
Professor with Habilitation at the University of Aveiro, where she teaches
since 2003. At the University of Aveiro, she has been director or vice-
director of several programmes, such as vice-director of the PHD in
Economics and Management Sciences, director of the Economics Master
Programme and of the Economics degree, as well as vice-coordinator of
the Research Line Competitiveness, Innovation and Sustainability from
the Research Unit, GOVCOPP, among others. She has published a
number of books and papers in international journals in fields related
to dynamics of firms, industries and regions. During her career, she
participated in several projects at national and international levels.
List of Figures

Fig. 3.1 Articles published in the RIS, NIS and innovation


research fields, by every three years, 1989–2017 44
Fig. 3.2 Weight of RIS performance articles on NIS articles,
by every three years, 1989–2017 45
Fig. 3.3 Number of RIS performance articles per scientific journal,
1989–2017 46
Fig. 3.4 Classification of RIS performance literature through
co-occurrence analysis, 1989–2017 56
Fig. 3.5 Evolution of the absolute and relative weight of empirical
articles relative to theoretical contributions in the RIS
performance research field, 1989–2017 65
Fig. 3.6 Classification of RIS performance articles by theme,
1989–2017 67
Fig. 4.1 Summary of social tipping dynamics for disruptive
innovation policies towards a stable climate scenario 88
Fig. 5.1 Project implementation roadmap 100
Fig. 5.2 Framework for networking and mediation strategies
in territorial innovation 108
Fig. 6.1 Dimensions of territorial innovation in LDRs 121
Fig. 7.1 Planned Cohesion Policy EU funding for digitalisation
by type of projects (Source European Parliament 2018) 149
Fig. 8.1 User centered design process 166
Fig. 8.2 Sample of sketches from the CeNTER platform (from left
to right): Main menu, map and details of an event
selected by the user 167

xix
xx LIST OF FIGURES

Fig. 8.3 Sample of the wireframes from the CeNTER platform


(from left to right): Main menu, map and details
of an event selected by the user 168
Fig. 8.4 Sample of screens from the CeNTER platform (from left
to right): Tutorial, main menu, map and details
of an event selected by the user 168
Fig. 12.1 The vicious declining cycle of Low-Density Territories
(Source Own) 247
List of Tables

Table 3.1 Elasticity of RIS performance literature over NIS


literature, by every three years, 1989–2017 46
Table 3.2 Test statistics 53
Table 3.3 Intra-cluster results 63
Table 3.4 Inter-cluster results 63
Table 6.1 Views of innovation in territorial innovation models 119
Table 6.2 Proposal for an integrated conceptual framework
for territorial innovation in less developed regions:
the sustainability regions approach 129
Table 7.1 Pillars of the Digital Agenda for Europe and their
main focus 146
Table 7.2 Cohesion Policy’s arrangements potentially
contributing to secure the expected benefits
of a multilevel and regionalised approach
towards digitalisation 155
Table 8.1 Number of Problems and Average Problem Severity
identified by each panel of evaluators 171
Table 8.2 Type of violated heuristics and average severity
identified by each panel of evaluators 173
Table 8.3 Expert’s inputs 174
Table 8.4 Priority of the inputs 175
Table 8.5 Level of effort for the improvement of the prototype 175
Table 8.6 Inputs according to the prototype interface 176
Table 10.1 Summary of state and non-state actors’ interests
in regional innovation policy in four case studies 210

xxi
xxii LIST OF TABLES

Table 11.1 ISUDS: Policy design and delivering dimensions 223


Table 11.2 Investment Priorities (IP) and thematic allocation
of funds in PEDU 234
Table 11.3 All PEDU’s implied PI and thematic allocation
of funds by agents 235
Table 12.1 List of interviewees (Source Own) 252
Table 12.2 Characteristics of the Municipality of Penela 254
Table 12.3 Characteristics of the Municipality of Fundão 256
Table 12.4 Characteristics of the Municipality of Abrantes 259
Table 12.5 Characteristics of the Municipality of Castelo Branco 261
Table 13.1 Questionnaire structure 272
Table 13.2 Territorial distribution per NUT II 272
Table 13.3 Importance of Low-Density Territories for development 273
Table 13.4 Severity of the problems associated with Low Density
Territories 274
Table 13.5 Capacity of Low-Density Territories to solve problems 274
Table 13.6 Main characteristics of Low-Density Territories 275
Table 13.7 Main solutions for Low-Density Territories 277
Table 13.8 Main characteristics of municipalities for tourism
activity—importance 278
Table 13.9 Main characteristics of municipalities for tourism
activity—quality 279
Table 13.10 Measures that should be taken by the stakeholders
of the Low-Density Territories to enable a further
development of tourism 281
Table 14.1 Guide of questions on Centro Portugal cohesiveness.
Source own elaboration 289
Table 14.2 Municipalities selected and its participation
on the case-study 290
List of Maps

Map 7.1 Case studies of digital projects funded by Cohesion


Policy (2014–2020) (Source European Parliament 2018) 143
Map 7.2 Cohesion Policy per capita funding for digitalisation
(2014–2020) (Source European Parliament 2018) 147
Map 7.3 Share of total Cohesion Policy funding for digitalisation
(2014–2020) (Source European Parliament 2018) 148
Map 7.4 Regional prioritisation of Cohesion Policy investments
for digitalisation by broad types of projects (2014–2020)
(Source European Parliament 2018) 151
Map 12.1 Portuguese LDTs (light green) and case studies selected
(dark green) 252
Map 14.1 Population density in Portugal (2021) (Source Own
elaboration, using INE data) 291
Map 14.2 Enterprises density in Portugal (2019) (Source Own
elaboration, using INE data) 292
Map 14.3 OECD functional areas in the Centro Region of Portug
(Source Own elaboration, using OECD data) 293

xxiii
CHAPTER 1

Community-Led Innovation: Facts, Rhetoric,


and Policy Challenges

Carlos Rodrigues and Filipe Teles

Innovation is consensually regarded as a key driver of regional socioeco-


nomic development. This consensus is well evidenced in the literature,
namely from the 1990s onwards, and, in addition, it has been under-
pinning a succession of policy discourses, programmes, and instruments.
A persistent science and technology-biased perspective of innovation, in
overall terms, did not fade away over time, despite the criticisms targeted
at the linear model (Malecki, 2021) and the rise of interactive learning as
backbone of innovative processes (e.g. Asheim, 1999; Cooke & Morgan,
1999; Lundvall & Johnson, 1994). Nevertheless, new conceptualisations
of innovation gained visibility and new or rekindled perspectives made
their way, not only in academia, but also in policy and political settings all

C. Rodrigues (B) · F. Teles


Department of Social, Political and Territorial Sciences, University of Aveiro,
Aveiro, Portugal
e-mail: cjose@ua.pt
F. Teles
e-mail: filipe.teles@ua.pt

© The Author(s), under exclusive license to Springer Nature 1


Switzerland AG 2023
F. Teles et al. (eds.), Territorial Innovation in Less Developed Regions,
Palgrave Studies in Sub-National Governance,
https://doi.org/10.1007/978-3-031-20577-4_1
2 C. RODRIGUES AND F. TELES

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

vulnerabilities that, in general, affect innovation capacity in less developed


territorial contexts.
The approach draws on the long-settled assumption that communities
are spatially bounded entities that, either in the form of loosely connected
individuals or through small, localised networks, either formal or infor-
mally, can emerge as innovation agents, thus allowing for enhanced
responses to local development challenges. Still, by bringing into play a
variety of disciplines, from political science, communication and digital
sciences, public administration, geography, economics, and regional and
spatial planning, it commingles an obvious conceptual discussion on the
role communities play in innovation with a multidisciplinary scrutiny
of the ways (i) local innovation ecosystems structure and function; (ii)
relevant policy design and implementation processes evolve in a forcibly
multilevel framework; (iii) technology-based mediating tools facilitate
the creation and consolidation of social networks that support commu-
nity involvement in innovation; (iv) community-led innovation impacts
on local development dynamics; and, finally, (v) community-led innova-
tion contributes for the higher calling for sustainable development and
territorial cohesion, namely in the context of less developed regions.
Accordingly, this book defies conventional approaches to territorial
innovation and sheds light over different aspects of the phenomenon. It
reveals facts, policy and delivery challenges, expectations, successes and
underachievements, and tensions, pictured with basis on the observa-
tion of active community agents engaged in collaborative networking and
attempting to take advantage of policy instruments in order to generate a
wide range of meaningful innovations. It also puts forward an extended
conceptual frame of reference necessary to give meaning to the debate on
community-led innovation, encompassing the idea that innovation can
occur in territorial contexts other than technologically and economically
advanced urban regions, it is not exclusive to high-tech firms and it is not
solely about science and technology breakthroughs, and its impact goes
beyond economic growth and productivity. Finally, quite obviously, the
construction places the local level of policy and practice at the core, thus
counteracting the underexplored nature of localness in innovation studies.
The book comprises 13 chapters, organised into three parts: models
(5 chapters), tools (3 chapters), and policy and actors (5 chapters). The
first part underpins a debate on the need to further extend the theo-
retical and conceptual ground upon which territorially based innovation
4 C. RODRIGUES AND F. TELES

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

Lundvall, B. Ä., & Johnson, B. (1994). The learning economy. Journal of


Industry Studies, 1(2), 23–42.
Malecki, E. J. (2021). The geography of innovation. In M. Fischer & P. Nijkamp
(Eds.), Handbook of regional science. Springer.
Morgan, K. (2004). Sustainable regions: Governance, innovation and scale.
European Planning Studies, 12(6), 871–889.
Polido, A., Pires, S. M., Rodrigues, C., & Teles, F. (2019). Sustainable
development discourse in smart specialization strategies. Journal of Cleaner
Production, 240, 118224.
Raco, M. (2005). Sustainable development, rolled-out neoliberalism and sustain-
able communities. Antipode, 37 (2), 324–347.
Starke, P. (2006). The politics of welfare state retrenchment: A literature review.
Social Policy & Administration, 40(1), 104–120.
PART I

Models
CHAPTER 2

New Models of Innovation in Old Industrial


Regions

Kevin Morgan and Dylan Henderson

It is no exaggeration to say that regional innovation research has until


recently had its gaze overwhelmingly focused on the dynamic regions
of the world, with Silicon Valley being the most celebrated example
(Breznitz, 2021; Saxenian, 1996). However, this has tended to frame
innovation in narrow terms as a linear process relying on science and
technology (S&T). More recently, both academic and policy discourses
have begun to view innovation in much broader terms, incorporating
social and ecological forms of innovation (Coenen & Morgan, 2020;
Morgan, 2019). Such developments, we argue, have the potential to offer
greater possibilities for old industrial regions to engage in innovation as
a place-based process that respects the needs of society, economy and the

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

© The Author(s), under exclusive license to Springer Nature 9


Switzerland AG 2023
F. Teles et al. (eds.), Territorial Innovation in Less Developed Regions,
Palgrave Studies in Sub-National Governance,
https://doi.org/10.1007/978-3-031-20577-4_2
10 K. MORGAN AND D. HENDERSON

environment. In this chapter, we consider three such models—social inno-


vation, mission-oriented innovation and foundational economy—before
examining what they might mean for innovation in old industrial regions,
taking the Cardiff Capital Region as an example. We conclude by distilling
some of the wider implications for theory and practice.

The Advent of New Framings


of Innovation and Policy
Social innovation emphasises the potential for innovation to address
both identified and unmet social needs as well as the aspirations of
society (Moulaert et al., 2017). It draws attention to the role of social
innovation to contribute towards solutions to grand challenges such
as climate change, demographic challenges and health and well-being
(Benneworth & Cunha, 2015; Marques et al., 2017). By focusing on
societal needs this model of innovation offers the prospect of engaging
a greater range of citizens and places in the innovation process than the
S&T model. Benneworth and Cunha (2015, p. 512) identify social inno-
vation as a ‘socially innovative practice that delivers socially just outcomes
by developing novel solutions in border spanning learning communities
thereby; creating social value by promoting community development,
hence; forming wider collaborative networks; and challenging existing
social institutions through this collaborative action’. This highlights the
discursive nature of social innovation, but it also underlines its potential
to produce transformative outcomes (Coenen & Morgan, 2020).
Although some authors see social innovation as a distinct form of inno-
vation (Moulaert & Mehmood, 2020), it is argued that S&T and social
innovation have a potentially complementary role to play in addressing
system-wide challenges such as modernisation of public services and
supporting societal well-being (Coenen & Morgan, 2020). The inclusion
of social innovation in the official guidance for smart specialisation repre-
sents an important step in introducing (European) regional bodies to the
role of social innovation (Foray et al., 2012a). While the implementation
options for social innovation are not clear, proponents have called for
bottom-up activity to enable communities to respond to marginalisation
and deprivation, while ensuring they benefit (Benneworth et al., 2015).
The policy challenge is also one of scaling up and diffusing good practices
beyond these localised experiments to secure transformative change. It
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 11

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:

. Bold, inspirational with wide societal relevance


. A clear direction: targeted, measurable, and time-bound
. Ambitious but realistic research and innovation actions
. Cross-disciplinary, cross-sectoral, and cross-actor innovation
. Multiple, bottom-up solutions (Mazzucato, 2018b, pp. 14–15).

The mission-oriented approach to grand challenges calls for the


engagement of multiple actors, public, private, and non-profit organisa-
tions, and users alongside more decentralised governance arrangements
(Borrás & Edler, 2014). This represents a more complex and unstruc-
tured process than those of earlier technological missions (Foray et al.,
2012b; Wanzenböck et al., 2020). Mission governance also calls for
collaboration across multiple policy agendas and administrative bound-
aries (Weber & Rohracher, 2012). This highlights the complexity of such
missions, reflecting multiple demands, strategic direction for action and
funding. The addition of multiple interrelated projects within an over-
arching mission adds further to this complexity, but recognises that a
mixed portfolio of projects contributing to a mission can help to miti-
gate the risks associated with a single, large mission (Bours et al., 2021;
Mazzucato, 2018a).
12 K. MORGAN AND D. HENDERSON

Government is identified as playing a lead role in most accounts of


mission-oriented innovation. This role goes beyond that of mere funder
and can include a convening role, brokering and building trust, but
also the longer-term willingness to bear uncertainty. Here Mazzucato
(2018a) argues that focusing on cross-cutting grand challenges rather
than narrow sectoral interests is the most effective way of co-creating
missions. This contrasts with ‘picking winners’, with its attendant risks of
failure. Instead, mission-oriented innovation policies draw together public
and private actors that are ‘willing’ to engage in addressing challenges.
Others, however, argue that it is far from clear that mission-oriented
innovation policy will be able to avoid ‘regulatory capture’ and sectoral
lobbying (Brown, 2021).
The ambitious agenda set out for mission-oriented innovation policy
represents an important departure from conventional S&T conceptions
of the innovation process. This responds to the weaknesses of traditional
innovation policies to produce transformative changes (Hassink & Gong,
2019). In addressing this weakness the mission-oriented innovation liter-
ature has given greater attention to social and ecological innovation as
part of long-term policy endeavours seeking to address grand challenges
(Mazzucato, 2018b). However, while proving an attractive model for
policymakers its potential to address the challenges of creating and imple-
menting mission objectives, implying that new governance structures,
cultures and mechanisms on the part of government may be required
(Foray, 2018). Indeed, while mission-oriented innovation policy tends
to be viewed as a top-down endeavour, research has also shown how
missions can emerge in a self-organised manner in local areas, providing
the basis for a ‘gradual, yet in-depth change in a desired direction’, while
appearing less threatening to established interests (Bours et al., 2021,
p. 2).
The foundational economy represents a new model of social innovation
that, in contrast to mission-oriented innovation policy, places a firm focus
the parts of the economy concerned with the everyday provision of goods
and services at the local level (Barbera & Rees Jones, 2020; Bentham
et al., 2013). The foundational economy includes providential services
like healthcare, primary and secondary education and welfare support,
as well as material infrastructure comprising pipes and cables supplying
water, electricity, gas, telecommunications, as well as banks, construction
and food (Engelen et al., 2017). While seemingly unglamorous these
goods and services collectively comprise vital elements of a civilised life
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 13

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

automation to impact positively, but also negatively on jobs, have been


identified (Arntz et al., 2016; Reynolds et al., 2018). This calls for careful
attention to be given to the nature and potential effects of technologies
in foundational economy interventions at the regional level. Other major
challenges facing the foundational economy include the urgent need to
decarbonise key sectors—particularly food and domestic energy—which
have high carbon footprints (Gough, 2017; Watkins, 2021).
Like other new models of innovation, the foundational economy
identifies the role of experimental approaches to inform policy options
(Barbera & Rees Jones, 2020; Coenen & Morgan, 2020). Such exper-
imentation is deemed to be particularly important to innovation in the
foundational economy given the lack of existing policy models. In this
respect, experimentation may open a new brokering role for the public
sector, with a focus on the selection and alignment of activities with
demand and supply. The challenge of scaling up good practice across
a region also remains, with calls for a ‘multilevel policy architecture’ to
diffuse such experiments beyond local areas (Coenen & Morgan, 2020).
Yet despite the prevalence of experimental approaches to the foundational
economy, there are concerns that this may be an overly cautious approach
(Froud et al., 2020). Here more mainstream policy options may exist
to support the material infrastructure of the foundational economy, such
as deployment of broadband to all parts of the region (Reynolds et al.,
2021), and measures such as energy efficiency. Indeed, policy may benefit
from a judicious mix of experimentalism and broad-based local innovation
diffusion.

Implications for Old Industrial Regions


Although old industrial regions and other ‘left behind places’ have not
been at the forefront of research in recent decades (MacKinnon et al.,
2021), the particular innovation challenges facing such regions have
recently come to the fore in research. Among other things, this has
highlighted the presence of declining or mature industries and limited
innovation capability amongst SMEs, all of which are reflected in limited
levels of business R&D activity, skilled human capital and low levels of
absorptive capacity (Rodríguez-Pose & Wilkie, 2019). All these factors
have been found to contribute towards ‘lock in’ of economic activity,
policies, fragmentation of linkages and organisational weakness (Grabher,
1993; Henderson, 2020; Tödtling & Trippl, 2005).
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 15

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.

Innovating in the Periphery---The


Cardiff Capital Region
The Cardiff Capital Region (CCR) has sought to combine social as well as
technological innovation in a regional development strategy that departs
in fundamental ways from traditional regional policy in the UK. In this
section, we address two of the most prominent aspects of this strategy: the
CCR governance system, which represents a form of institutional innova-
tion and the CCR development strategy, which we discuss with reference
to the CCR’s three thematic priorities—innovation, infrastructure and
challenges.
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 17

Fashioning Regional Capacity: The Rise of the Cardiff Capital Region


The launch of the Cardiff Capital Region in 2013 signalled a new era of
collaboration among the ten municipalities that created the city-region
because it symbolised a decisive break with a long history of conflict and
mistrust between the city and its surrounding region. Few cities have been
as dependent on their regional hinterland as Cardiff, the Welsh capital.
Without the dramatic growth of the coalfield in the South Wales valleys
subregion, there would have been no commercial logic to build port facil-
ities in the city and, without export facilities, Cardiff would never have
become a ‘coal metropolis’ in the early years of the twentieth century
(Daunton, 1977). Although the city and the valleys were mutually depen-
dent from the outset, the nature of this relationship changed radically
after 1920, when the coalfield peaked in employment terms. Thereafter
the economic flows from the valleys to the city were decreasingly of prod-
ucts in search of an export market and increasingly of people in search of
a labour market as Cardiff’s economy became more diversified and less
dependent on the coalfield. If the centre of economic gravity was shifting
from the coalfield to the coast, politicians in the coalfield were loath to
acknowledge the fact. Instead of capitalising on the growing interdepen-
dence between the city and the region, politicians in the valleys were
more likely to frame their interests in parochial and self-referential terms.
Framing regional development as a zero-sum game, they saw Cardiff’s
gains as the valleys’ losses, even though their respective labour markets
were becoming increasingly entwined (Morgan, 2014).
The concept of the city-region eventually made its political debut in
2004, when it was positively endorsed in the Wales Spatial Plan as a
strategy for South East Wales:

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

forefront of the argument that the Welsh Government needs to control


less and devolve more. The CCR summarised this view in its submission
to a public consultation exercise on the future of regional development
policy in Wales:

Welsh Government should not be at the centre of everything – leading


policy, managing delivery and evaluating outcomes. This is not the func-
tion of a modern, agile and interventionist government. WG must practice
more networked and facilitative leadership and develop its convening role.
This would mean ceding control – but ultimately increasing influence. This
needs a new kind of trust, respect and subsidiarity which is better described
as ‘regionalism’ – a spirit of partnership and flexibility, than ‘regionalisa-
tion’ – which sounds more authoritarian, rigid and top-down. We have to
shift from a focus on doing the same old things a little better to doing
fundamentally better things. This will mean developing a greater appetite
for innovation, adaptation and experimentation and recognising that whilst
not everything will work and there will be failure – failure by omission or
‘standing still’ is the more significant risk. (Cardiff Capital Region, 2020)

The CCR case underlines the importance of framing regional develop-


ment policies in multilevel polity terms because regional actors need to
negotiate with and mobilise resources from other levels of government, a
point to which we return in the conclusions.

The Real World of Regional Innovation Policy


When we turn from the world of regional governance to the real world
of regional innovation policy, we encounter one of the biggest challenges
facing less developed regions: the challenge of prioritisation. Who will be
responsible for identifying the priorities? Which metrics will be used to do
so? What projects are likely to be the most impactful in terms of jobs and
GVA? And where should investments be targeted, in the areas of greatest
social need or the areas of greatest economic potential? These are some
of the most difficult questions that arise when a new regional innova-
tion strategy is being designed, as the experience of smart specialisation
strategies demonstrated (S3 Platform).
In the case of the CCR, the prioritisation was a deliberative process
conducted at two levels: (a) the generic deliberation process involving all
three partners was designed to set targets, milestones and the rules of the
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 21

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

Cardiff University and a concentration of related firms that both produce


and apply the compound semiconductor technologies that are used in a
wide array of applications.
Since the initial investment the CSC project has leveraged a series
of additional investment, most notably the Compound Semiconductor
Applications Catapult, which is part of the UK-wide network of Cata-
pult Centres. The independent assessment of the CCR strategy said that
it “provides translational research facilities to accelerate the commer-
cialisation of compound semiconductors in a series of application areas,
including healthcare, energy, transport, space and defence and security”
(SQW, 2020). The CSC was launched in 2016 with UK Government
funding of £50 million and, while it has a UK-wide remit, it was located
in Cardiff in recognition of Cardiff University’s research capabilities and
the presence of IQE and other compound semiconductor firms in the
area.
Time alone will tell whether the CSC investment will help to nurture
a compound semiconductor cluster in the region as such clusters are
notoriously difficult to cultivate. All that can be said for the moment is
that, while the CCR has certainly made a bold decision, it has sought
to manage the risk in ways that radically depart from traditional regional
policy (a) by embedding the project in a wider series of ecosystem invest-
ments that straddle the full spectrum from R&D to commercial-scale
manufacture and (b) by using its funds as an investment rather than a
grant to ensure these funds can be recycled to support the growth of
other CCR clusters in MedTech, cyber security and fintech.
Although the South Wales Metro is the largest single infrastructure
investment in the CCR, it actually sits outside the City Deal due to its
ringfenced budget of £734 m. But the City Deal has designed a series
of Metro Plus investments to create a more integrated Metro transport
network, including park and ride schemes, new bus and rail interchanges
and improved stations and the like. Another significant component of the
infrastructure theme is affordable housing, and here the Housing Catalyst
Fund aims to address market failure in meeting housing need by providing
funding support to catalyse development in underserved areas. Digital
infrastructure is another key priority and here the CCR is working with
the UK and Welsh governments to deliver gigabit connectivity across the
region in as short a timeframe as possible.
Of all the thematic priorities, the most novel is the challenge priority.
The Challenge Fund is actually the most radical part of the CCR City
2 NEW MODELS OF INNOVATION IN OLD INDUSTRIAL REGIONS 23

Deal as it aims to help public services to source solutions to societal chal-


lenges. The concept of the CCR Challenge Fund has been shaped by a
number of different perspectives on social innovation theory and practice,
notably the Nesta Challenge Prize; the Small Business Research Initiative
(SBRI) and GovTech; and the new mission-oriented innovation litera-
ture (Mazzucato, 2021). The purpose of such a challenge programme,
according to the CCR, is to demonstrate how applying innovation to soci-
etal challenges can promote novel solutions and radical improvements.
It also aims to provide an important counter to the more conventional
approaches of ‘allocating’ R&D funding or grants which often fail to
provide the appropriate incentives for deeper experimentation.
The CCR was pressed by the UK Treasury about the Challenge Fund,
especially as to whether it would meet the conventional metrics of the
City Deal template, and CCR officers did well to defend their commit-
ment to the concept. But the CCR had to defend the concept within the
parameters of the City Deal, even though they thought these metrics were
too narrow. This delicate political balancing act clearly emerged when the
CCR made its business case for the Challenge Fund:

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)

The Challenge Fund aims to build local resilience in the CCR


economy, a regional economy that has been rendered more vulnerable
by the twin effects of Brexit and COVID-19. Focusing on local commu-
nity wealth building is also timely because it coincides with the Welsh
Government’s new commitment to the Foundational Economy, which
aims to re-build community infrastructure and support more creative
locally grown public services. The themes of the Challenge Fund have
been determined through dialogue with the municipal members of the
Another random document with
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“But Jimmy where are you going?” asked Roy. “Isnt this
something new?”
“Hasnt Helena got something to say about that?” put in Alice.
Herf turned red. “Why should she?” he said sharply.
“I just found there was nothing in it for me,” he found himself
saying a little later.
“Oh we none of us know what we want,” burst out Martin. “That’s
why we’re such a peewee generation.”
“I’m beginning to learn a few of the things I dont want,” said Herf
quietly. “At least I’m beginning to have the nerve to admit to myself
how much I dislike all the things I dont want.”
“But it’s wonderful,” cried Alice, “throwing away a career for an
ideal.”
“Excuse me,” said Herf pushing back his chair. In the toilet he
looked himself in the eye in the wavy lookingglass.
“Dont talk,” he whispered. “What you talk about you never do....”
His face had a drunken look. He filled the hollow of his two hands
with water and washed it. At the table they cheered when he sat
down.
“Yea for the wanderer,” said Roy.
Alice was eating cheese on long slices of pear. “I think it’s
thrilling,” she said.
“Roy is bored,” shouted Martin Schiff after a silence. His face with
its big eyes and bone glasses swam through the smoke of the
restaurant like a fish in a murky aquarium.
“I was just thinking of all the places I had to go to look for a job
tomorrow.”
“You want a job?” Martin went on melodramatically. “You want to
sell your soul to the highest bidder?”
“Jez if that’s all you had to sell....” moaned Roy.
“It’s my morning sleep that worries me.... Still it is lousy putting
over your personality and all that stuff. It’s not your ability to do the
work it’s your personality.”
“Prostitutes are the only honest ...”
“But good Lord a prostitute sells her personality.”
“She only rents it.”
“But Roy is bored.... You are all bored.... I’m boring you all.”
“We’re having the time of our lives,” insisted Alice. “Now Martin
we wouldn’t be sitting here if we were bored, would we?... I wish
Jimmy would tell us where he expected to go on his mysterious
travels.”
“No, you are saying to yourselves what a bore he is, what use is
he to society? He has no money, he has no pretty wife, no good
conversation, no tips on the stockmarket. He’s a useless fardel on
society.... The artist is a fardel.”
“That’s not so Martin.... You’re talking through your hat.”
Martin waved an arm across the table. Two wineglasses upset. A
scaredlooking waiter laid a napkin over the red streams. Without
noticing, Martin went on, “It’s all pretense.... When you talk you talk
with the little lying tips of your tongues. You dont dare lay bare your
real souls.... But now you must listen to me for the last time.... For
the last time I say.... Come here waiter you too, lean over and look
into the black pit of the soul of man. And Herf is bored. You are all
bored, bored flies buzzing on the windowpane. You think the
windowpane is the room. You dont know what there is deep black
inside.... I am very drunk. Waiter another bottle.”
“Say hold your horses Martin.... I dont know if we can pay the bill
as it is.... We dont need any more.”
“Waiter another bottle of wine and four grappas.”
“Well it looks as if we were in for a rough night,” groaned Roy.
“If there is need my body can pay.... Alice take off your mask....
You are a beautiful little child behind your mask.... Come with me to
the edge of the pit.... O I am too drunk to tell you what I feel.” He
brushed off his tortoiseshell glasses and crumpled them in his hand,
the lenses shot glittering across the floor. The gaping waiter ducked
among the tables after them.
For a moment Martin sat blinking. The rest of them looked at each
other. Then he shot to his feet. “I see your little smirking supercil-
superciliosity. No wonder we can no longer have decent dinners,
decent conversations.... I must prove my atavistic sincerity, prove....”
He started pulling at his necktie.
“Say Martin old man, pipe down,” Roy was reiterating.
“Nobody shall stop me.... I must run into the sincerity of black.... I
must run to the end of the black wharf on the East River and throw
myself off.”
Herf ran after him through the restaurant to the street. At the door
he threw off his coat, at the corner his vest.
“Gosh he runs like a deer,” panted Roy staggering against Herf’s
shoulder. Herf picked up the coat and vest, folded them under his
arm and went back to the restaurant. They were pale when they sat
down on either side of Alice.
“Will he really do it? Will he really do it?” she kept asking.
“No of course not,” said Roy. “He’ll go home; he was making fools
of us because we played up to him.”
“Suppose he really did it?”
“I’d hate to see him.... I like him very much. We named our kid
after him,” said Jimmy gloomily. “But if he really feels so terribly
unhappy what right have we to stop him?”
“Oh Jimmy,” sighed Alice, “do order some coffee.”
Outside a fire engine moaned throbbed roared down the street.
Their hands were cold. They sipped the coffee without speaking.
Francie came out of the side door of the Five and Ten into the six
o’clock goinghome end of the day crowd. Dutch Robertson was
waiting for her. He was smiling; there was color in his face.
“Why Dutch what’s ...” The words stuck in her throat.
“Dont you like it...?” They walked on down Fourteenth, a blur of
faces streamed by on either side of them. “Everything’s jake
Francie,” he was saying quietly. He wore a light gray spring overcoat
and a light felt hat to match. New red pointed Oxfords glowed on his
feet. “How do you like the outfit? I said to myself it wasnt no use tryin
to do anythin without a tony outside.”
“But Dutch how did you get it?”
“Stuck up a guy in a cigar store. Jez it was a cinch.”
“Ssh dont talk so loud; somebody might hear ye.”
“They wouldnt know what I was talkin about.”

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.”

Pursuit of happiness, unalienable pursuit ... right to life liberty


and.... A black moonless night; Jimmy Herf is walking alone up
South Street. Behind the wharfhouses ships raise shadowy
skeletons against the night. “By Jesus I admit that I’m stumped,” he
says aloud. All these April nights combing the streets alone a
skyscraper has obsessed him, a grooved building jutting up with
uncountable bright windows falling onto him out of a scudding sky.
Typewriters rain continual nickelplated confetti in his ears. Faces of
Follies girls, glorified by Ziegfeld, smile and beckon to him from the
windows. Ellie in a gold dress, Ellie made of thin gold foil absolutely
lifelike beckoning from every window. And he walks round blocks and
blocks looking for the door of the humming tinselwindowed
skyscraper, round blocks and blocks and still no door. Every time he
closes his eyes the dream has hold of him, every time he stops
arguing audibly with himself in pompous reasonable phrases the
dream has hold of him. Young man to save your sanity you’ve got to
do one of two things.... Please mister where’s the door to this
building? Round the block? Just round the block ... one of two
unalienable alternatives: go away in a dirty soft shirt or stay in a
clean Arrow collar. But what’s the use of spending your whole life
fleeing the City of Destruction? What about your unalienable right,
Thirteen Provinces? His mind unreeling phrases, he walks on
doggedly. There’s nowhere in particular he wants to go. If only I still
had faith in words.

“How do you do Mr. Goldstein?” the reporter breezily chanted as


he squeezed the thick flipper held out to him over the counter of the
cigar store. “My name’s Brewster.... I’m writing up the crime wave for
the News.”
Mr. Goldstein was a larvashaped man with a hooked nose a little
crooked in a gray face, behind which pink attentive ears stood out
unexpectedly. He looked at the reporter out of suspicious screwedup
eyes.
“If you’d be so good I’d like to have your story of last night’s little
... misadventure ...”
“Vont get no story from me young man. Vat vill you do but print it
so that other boys and goils vill get the same idear.”
“It’s too bad you feel that way Mr. Goldstein ... Will you give me a
Robert Burns please...? Publicity it seems to me is as necessary as
ventilation.... It lets in fresh air.” The reporter bit off the end of the
cigar, lit it, and stood looking thoughtfully at Mr. Goldstein through a
swirling ring of blue smoke. “You see Mr. Goldstein it’s this way,” he
began impressively. “We are handling this matter from the human
interest angle ... pity and tears ... you understand. A photographer
was on his way out here to get your photograph.... I bet you it would
increase your volume of business for the next couple of weeks.... I
suppose I’ll have to phone him not to come now.”
“Well this guy,” began Mr. Goldstein abruptly, “he’s a welldressed
lookin feller, new spring overcoat an all that and he comes in to buy
a package o Camels.... ‘A nice night,’ he says openin the package
an takin out a cigarette to smoke it. Then I notices the goil with him
had a veil on.”
“Then she didnt have bobbed hair?”
“All I seen was a kind o mournin veil. The foist thing I knew she
was behind the counter an had a gun stuck in my ribs an began
talkin ... you know kinder kiddin like ... and afore I knew what to think
the guy’d cleaned out the cashregister an says to me, ‘Got any cash
in your jeans Buddy?’ I’ll tell ye I was sweatin some ...”
“And that’s all?”
“Sure by the time I’d got hold of a cop they vere off to hell an
gone.”
“How much did they get?”
“Oh about fifty berries an six dollars off me.”
“Was the girl pretty?”
“I dunno, maybe she was. I’d like to smashed her face in. They
ought to make it the electric chair for those babies.... Aint no security
nowhere. Vy should anybody voirk if all you’ve got to do is get a gun
an stick up your neighbors?”
“You say they were welldressed ... like welltodo people?”
“Yare.”
“I’m working on the theory that he’s a college boy and that she’s a
society girl and that they do it for sport.”
“The feller vas a hardlookin bastard.”
“Well there are hardlooking college men.... You wait for the story
called ‘The Gilded Bandits’ in next Sunday’s paper Mr. Goldstein....
You take the News dont you?”
Mr. Goldstein shook his head.
“I’ll send you a copy anyway.”
“I want to see those babies convicted, do you understand? If
there’s anythin I can do I sure vill do it ... Aint no security no more....
I dont care about no Sunday supplement publicity.”
“Well the photographer’ll be right along. I’m sure you’ll consent to
pose Mr. Goldstein.... Well thank you very much.... Good day Mr.
Goldstein.”
Mr. Goldstein suddenly produced a shiny new revolver from under
the counter and pointed it at the reporter.
“Hay go easy with that.”
Mr. Goldstein laughed a sardonic laugh. “I’m ready for em next
time they come,” he shouted after the reporter who was already
making for the Subway.

“Our business, my dear Mrs. Herf,” declaimed Mr. Harpsicourt,


looking sweetly in her eyes and smiling his gray Cheshire cat smile,
“is to roll ashore on the wave of fashion the second before it breaks,
like riding a surfboard.”
Ellen was delicately digging with her spoon into half an alligator
pear; she kept her eyes on her plate, her lips a little parted; she felt
cool and slender in the tightfitting darkblue dress, shyly alert in the
middle of the tangle of sideways glances and the singsong modish
talk of the restaurant.
“It’s a knack that I can prophesy in you more than in any girl, and
more charmingly than any girl I’ve ever known.”
“Prophesy?” asked Ellen, looking up at him laughing.
“You shouldnt pick up an old man’s word.... I’m expressing myself
badly.... That’s always a dangerous sign. No, you understand so
perfectly, though you disdain it a little ... admit that.... What we need
on such a periodical, that I’m sure you could explain it to me far
better.”
“Of course what you want to do is make every reader feel Johnny
on the spot in the center of things.”
“As if she were having lunch right here at the Algonquin.”
“Not today but tomorrow,” added Ellen.
Mr. Harpsicourt laughed his creaky little laugh and tried to look
deep among the laughing gold specs in her gray eyes. Blushing she
looked down into the gutted half of an alligator pear in her plate. Like
the sense of a mirror behind her she felt the smart probing glances
of men and women at the tables round about.
The pancakes were comfortably furry against his gin-bitten
tongue. Jimmy Herf sat in Child’s in the middle of a noisy drunken
company. Eyes, lips, evening dresses, the smell of bacon and coffee
blurred and throbbed about him. He ate the pancakes painstakingly,
called for more coffee. He felt better. He had been afraid he was
going to feel sick. He began reading the paper. The print swam and
spread like Japanese flowers. Then it was sharp again, orderly,
running in a smooth black and white paste over his orderly black and
white brain:
Misguided youth again took its toll of tragedy amid the
tinsel gayeties of Coney Island fresh painted for the season
when plainclothes men arrested “Dutch” Robinson and a girl
companion alleged to be the Flapper Bandit. The pair are
accused of committing more than a score of holdups in
Brooklyn and Queens. The police had been watching the
couple for some days. They had rented a small kitchenette
apartment at 7356 Seacroft Avenue. Suspicion was first
aroused when the girl, about to become a mother, was taken
in an ambulance to the Canarsie Presbyterian Hospital.
Hospital attendants were surprised by Robinson’s seemingly
endless supply of money. The girl had a private room,
expensive flowers and fruit were sent in to her daily, and a
well-known physician was called into consultation at the
man’s request. When it came to the point of registering the
name of the baby girl the young man admitted to the
physician that they were not married. One of the hospital
attendants, noticing that the woman answered to the
description published in the Evening Times of the flapper
bandit and her pal, telephoned the police. Plainclothes men
sleuthed the couple for some days after they had returned to
the apartment on Seacroft Avenue and this afternoon made
the arrests.
The arrest of the flapper bandit ...
A hot biscuit landed on Herf’s paper. He looked up with a start; a
darkeyed Jewish girl at the next table was making a face at him. He
nodded and took off an imaginary hat. “I thank thee lovely nymph,”
he said thickly and began eating the biscuit.
“Quit dat djer hear?” the young man who sat beside her, who
looked like a prizefighter’s trainer, bellowed in her ear.
The people at Herf’s table all had their mouths open laughing. He
picked up his check, vaguely said good night and walked out. The
clock over the cashier’s desk said three o’clock. Outside a rowdy
scattering of people still milled about Columbus Circle. A smell of
rainy pavements mingled with the exhausts of cars and occasionally
there was a whiff of wet earth and sprouting grass from the Park. He
stood a long time on the corner not knowing which way to go. These
nights he hated to go home. He felt vaguely sorry that the Flapper
Bandit and her pal had been arrested. He wished they could have
escaped. He had looked forward to reading their exploits every day
in the papers. Poor devils, he thought. And with a newborn baby too.
Meanwhile a rumpus had started behind him in Child’s. He went
back and looked through the window across the griddle where
sizzled three abandoned buttercakes. The waiters were struggling to
eject a tall man in a dress suit. The thickjawed friend of the Jewish
girl who had thrown the biscuit was being held back by his friends.
Then the bouncer elbowed his way through the crowd. He was a
small broadshouldered man with deepset tired monkey eyes. Calmly
and without enthusiasm he took hold of the tall man. In a flash he
had him shooting through the door. Out on the pavement the tall man
looked about him dazedly and tried to straighten his collar. At that
moment a police-wagon drove up jingling. Two policemen jumped
out and quickly arrested three Italians who stood chatting quietly on
the corner. Herf and the tall man in the dress suit looked at each
other, almost spoke and walked off greatly sobered in opposite
directions.
V. The Burthen of Nineveh

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.”

When Alice Sheffield dropped into the stream of women going


through the doors of Lord & Taylor’s and felt the close smell of stuffs
in her nostrils something went click in her head. First she went to the
glovecounter. The girl was very young and had long curved black
lashes and a pretty smile; they talked of permanent waves while
Alice tried on gray kids, white kids with a little fringe like a gauntlet.
Before she tried it on, the girl deftly powdered the inside of each
glove out of a longnecked wooden shaker. Alice ordered six pairs.
“Yes, Mrs. Roy Sheffield.... Yes I have a charge account, here’s
my card.... I’ll be having quite a lot of things sent.” And to herself she
said all the while: “Ridiculous how I’ve been going round in rags all
winter.... When the bill comes Roy’ll have to find some way of paying
it that’s all. Time he stopped mooning round anyway. I’ve paid
enough bills for him in my time, God knows.” Then she started
looking at fleshcolored silk stockings. She left the store her head still
in a whirl of long vistas of counters in a violet electric haze, of
braided embroidery and tassles and nasturtiumtinted silks; she had
ordered two summer dresses and an evening wrap.
At Maillard’s she met a tall blond Englishman with a coneshaped
head and pointed wisps of towcolored mustaches under his long
nose.
“Oh Buck I’m having the grandest time. I’ve been going berserk in
Lord & Taylor’s. Do you know that it must be a year and a half since
I’ve bought any clothes?”
“Poor old thing,” he said as he motioned her to a table. “Tell me
about it.”
She let herself flop into a chair suddenly whimpering, “Oh Buck
I’m so tired of it all.... I dont know how much longer I can stand it.”
“Well you cant blame me.... You know what I want you to do....”
“Well suppose I did?”
“It’d be topping, we’d hit it off like anything.... But you must have a
bit of beef tea or something. You need picking up.” She giggled. “You
old dear that’s just what I do need.”
“Well how about making tracks for Calgary? I know a fellow there
who’ll give me a job I think.”
“Oh let’s go right away. I dont care about clothes or anything....
Roy can send those things back to Lord & Taylor’s.... Got any money
Buck?”
A flush started on his cheekbones and spread over his temples to
his flat irregular ears. “I confess, Al darling, that I havent a penny. I
can pay for lunch.”
“Oh hell I’ll cash a check; the account’s in both our names.”
“They’ll cash it for me at the Biltmore, they know me there. When
we get to Canada everything will be quite all right I can assure you.
In His Majesty’s Dominion, the name of Buckminster has rather more
weight than in the U.S.”
“Oh I know darling, it’s nothing but money in New York.”
When they were walking up Fifth Avenue she hooked her arm in
his suddenly. “O Buck I have the most horrible thing to tell you. It
made me deathly ill.... You know what I told you about the awful
smell we had in the apartment we thought was rats? This morning I
met the woman who lives on the ground floor.... O it makes me sick
to think of it. Her face was green as that bus.... It seems they’ve
been having the plumbing examined by an inspector.... They
arrested the woman upstairs. O it’s too disgusting. I cant tell you
about it.... I’ll never go back there. I’d die if I did.... There wasnt a
drop of water in the house all day yesterday.”
“What was the matter?”
“It’s too horrible.”
“Tell it to popper.”
“Buck they wont know you when you get back home to Orpen
Manor.”
“But what was it?”
“There was a woman upstairs who did illegal operations,
abortions.... That was what stopped up the plumbing.”
“Good God.”
“Somehow that’s the last straw.... And Roy sitting limp over his
damn paper in the middle of that stench with that horrible adenoid
expression on his face.”
“Poor little girl.”
“But Buck I couldn’t cash a check for more than two hundred....
It’ll be an overdraft as it is. Will that get us to Calgary?”

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