PALGRAVE STUDIES IN DEMOCRACY, INNOVATION, AND ENTREPRENEURSHIP FOR GROWTH REVOLUTIONIZING ECONOMIC AND DEMOCRATIC SYSTEMS Reinventing the Third Way Kenneth Nordberg www.ebook3000.com Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth Series Editor Elias G Carayannis School of Business George Washington University Washington, DC, USA The central theme of this series is to explore why some geographic areas grow and others stagnate over time, and to measure the effects and implications in a trans-disciplinary context that takes both historical evolution and geographical location into account In other words, when, how, and why does the nature and dynamic of a political regime inform and shape the drivers of growth and especially innovation and entrepreneurship? In this socio-economic, socio-political, and socio-technical context, how could we best achieve growth, financially and environmentally? This series aims to address key questions framing policy and strategic decision-making at firm, industry, national, and regional levels, such as: How does technological advance occur, and what are the strategic processes and institutions involved? How are new businesses created? To what extent is intellectual property protected? Which cultural characteristics serve to promote or impede innovation? In what ways is wealth distributed or concentrated? A primary feature of the series is to consider the dynamics of innovation and entrepreneurship in the context of globalization, with particular respect to emerging markets, such as China, India, Russia, and Latin America (For example, what are the implications of China’s rapid transition from providing low-cost manufacturing and services to becoming an innovation powerhouse? How sustainable financially, technologically, socially, and environmentally will that transition prove? How the perspectives of history and geography explain this phenomenon?)Contributions from researchers in a wide variety of fields will connect and relate the relationships and inter-dependencies among Innovation, Political Regime, and Economic and Social Development.We will consider whether innovation is demonstrated differently across sectors (e.g., health, education, technology) and disciplines (e.g., social sciences, physical sciences), with an emphasis on discovering emerging patterns, factors, triggers, catalysts, and accelerators to innovation, and their impact on future research, practice, and policy This series will delve into what are the sustainable and sufficient growth mechanisms for the foreseeable future for developed, knowledge-based economies and societies (such as the EU and the US) in the context of multiple, concurrent, and inter-connected “tipping-point” effects with short (MENA) as well as long (China, India) term effects from a geo-strategic, geo-economic, geo-political, and geo-technological (GEO-STEP) set of perspectives This conceptualization lies at the heart of the series, and offers to explore the correlation between democracy, innovation, and entrepreneurship for growth Proposals should be sent to Elias Carayannis at caraye@gwu.edu More information about this series at http://www.springer.com/series/14635 www.ebook3000.com Kenneth Nordberg Revolutionizing Economic and Democratic Systems Reinventing the Third Way Kenneth Nordberg Åbo Akademi University Vasa, Finland Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth ISBN 978-3-319-40632-9 ISBN 978-3-319-40633-6 (eBook) DOI 10.1007/978-3-319-40633-6 Library of Congress Control Number: 2016947007 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Cover image © Tony Lilley / Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Springer International Publishing AG Switzerland www.ebook3000.com CONTENTS Introduction: Reinventing the Third Way Revolutionising Economic and Democratic Systems The Case of Ostrobothnia Conclusions: Politics in the Post-Fordist Economy Attempts at Regional Mobilisation in a Unitary State: Two Decades of Learning and Unlearning 59 85 91 On the Democracy and Relevance of Governance Networks: The Case of Ostrobothnia, Finland 127 Is There a Need for Transnational Learning? The Case of Restructuring in Small Industrial Towns 157 v vi CONTENTS Enabling Regional Growth in Peripheral Non-university Regions: The Impact of a Quadruple Helix Intermediate Organisation 185 Epilogue 219 Index 223 www.ebook3000.com CHAPTER Introduction: Reinventing the Third Way The first difficulty an analyst of society confronts is to define which system or part of society is relevant for the specific question posed This is a difficult task, since the different systems are often intertwined or linked to each other, and thus, changes in one system may often be derived from changes in another or many other systems During the last two to three decades, the role of politics in society has changed drastically, from a position where politics was implemented through nation-building and different governmental techniques, such as the development of welfare services, to a situation whereby the state attempts to achieve growth through market control rather than by governing the national territory In this way, the influence of the market and economics upon society has expanded, which affects the possibilities of politics Consequently, an understanding of the economic system is now required to be able to study the political system of today Similarly, when studying the political system and the act of governing, this system is obviously dependent also on the social system, that is the way people act, react and behave In the academic literature of governance, which has grown abundantly during the last two decades, the act of governing has been described as being gradually relocated out of the hands of the government into more or less flexible and ad hoc networks of stakeholders The cause behind this shift is found in changes in the economic system, in the form of open innovation platforms and free trade, as well as in the social system, in the form of an increasing © The Author(s) 2017 K Nordberg, Revolutionizing Economic and Democratic Systems, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, DOI 10.1007/978-3-319-40633-6_1 K NORDBERG individualisation and reflexivity of people Consequently, when examining the system of governance, the benefit of including both the economic and the social systems, and not constricting the study to the political system alone, becomes apparent In political science, the incongruity of democracy and efficiency is a classic notion: that is when increasing inclusiveness, the number of participants and in turn the level of democracy is raised, while the level of efficiency has been said to drop proportionally However, by combining the theories found in both economic and democratic literature, this study suggests that this does not necessarily need to be the case In both strands of academic literature, increased inclusiveness and participation are viewed as being beneficial and may consequently be regarded as effective, both economically and democratically This blend of economic and democratic theory forms the foundation for the main task of this study, which is to reinvent the Third Way The search for a third way between or beyond socialism and capitalism may be traced back to the end of the nineteenth century and the socalled Bernstein debate, following the death of Friedrich Engels, where Karl Kautsky claimed that capitalistic exploitation eventually leads to collapse and the establishment of a socialist society, while Eduard Bernstein asserted that political steering tools, such as the introduction of labour legislation and universal suffrage, undermine class struggles, thus implying that political democracy and capitalistic exploitation are contradictory (Colletti 1968) A few decades later, in the 1940s, Karl Polanyi again highlighted the interconnectedness between the political, economic and social systems in his acclaimed work The Great Transformation (Polanyi 2001) The shift Polanyi identified is the rise of the market economy in England in the midnineteenth century, which Polanyi suggested was the first time in human history that the economic system had been completely separated from the other systems of society Polanyi’s general argument is that the economy needs to be embedded in both society and nature, a notion in direct opposition to economic liberalism and its idea of self-regulating markets In Polanyi’s view, the commodification of human activities (labour), nature (land) and purchasing power (money) will eventually lead to measures of social protection, understood as politically enforced regulations restricting the market Writing in relation to the economic depression in the 1930s and the outbreak of the Second World War, Polanyi identified both fascism and socialism as different models of social protection against the liberal economy, and while the first completely removed individual freedom, Polanyi suggested socialism, interpreted as the subordination of the self-regulating market to a democratic society, as a middle way (Castles et al 2011: 6–10) www.ebook3000.com INTRODUCTION: REINVENTING THE THIRD WAY In the 1990s, the concept of the Third Way referred to the model of action adopted by social democratic parties in Western countries One of the forefront theorists of the Third Way was Anthony Giddens (1994, 1998), who regarded contemporary socialism as not corresponding to the Marxian claim for the need of the abolition of capitalism, since, by the provision of social welfare, social democratic governments had already to a great length succeeded in removing the unfair elements capitalism had given rise to The Third Way represented the renewal of social democracy in the 1990s, a response to a changed globalised world, and concurrently, a response to both the interventionism of the Keynesian state as well as the idea of the free and unregulated market of neoliberalism Thus, the 1990s version of the Third Way could be regarded as a synthesis of capitalism and socialism, of the state and the market, advocating egalitarianism, not through traditional redistribution of income, but by affecting the “initial distribution of skills, capacities and productive endowments” (Lewis and Surender 2004: 4) While this was often comprehended as a compromise between capitalism and socialism, Giddens emphasised that the Third Way was not positioned between left and right but was beyond left and right, and that the Third Way rejected top-down socialism as it rejected neoliberalism According to Lewis and Surender (2004: 5), all Western countries and their social democratic parties have adapted their welfare policy in accordance to the Third Way, with a general restructuring of welfare as a result In practice, this has implied cuts in welfare benefits in order to achieve “targeted means-tested benefits” and “in-work benefits” The Third Way views civil society, the government and the market as interdependent and equal partners in the provision of welfare, and the duty of the state is accordingly to create a balance between these three actors The individual should be pushed to self-help and an active citizenship, while the state and the market should jointly contribute to economic and social cohesion Consequent to the loss in the election in 1992, the Labour Party in the UK sought a new strategy to win back its constituency in the upcoming election in 1997, and here, the Third Way seemed to make a good fit Tony Blair became one of the front runners of this new left-wing concept, advocating “social justice” as the new middle way, hoping to attract voters from both sides of the political spectrum In practice, the Third Way has implied a step to the right for social democratic parties and has consequently been criticised for causing the loss of the leftist alternative and ultimately for depoliticising politics (see example Mouffe 2005) 212 K NORDBERG The independence that came into effect in 2007 was the result of efforts to further improve innovation competences by connecting to R&D, thereby increasing the presence of the STI mode of innovation At the same time, close cooperation with firms maintained the DUI character of the innovation process KETEK is able to introduce STI types of innovation, such as nano technology, to traditionally DUI types of industries, such as the boat industry Thereby, the innovation process in the region exhibits characteristics of Mode 3, with the combination of STI and DUI, and the mediating role of KETEK channelling R&D to the region, while simultaneously reinforcing the network between firms and knowledge institutions by housing professorships, thus enabling the transferability of personnel etc 8.6 CONCLUSIONS The emphasis on metropolitan regions has been overwhelming in regional development and innovation literature As such, dense populations and large resources have been perceived as prerequisites for strong growth, especially when considering innovation processes The Smart Specialisation strategy of the EU, with its peer review approach, draws from the theoretical concepts presented in this chapter, i.e Mode 3, the Quadruple Helix and related variety In all likelihood, peripheral regions with undeveloped innovation systems should have most to benefit from such aid These concepts emphasise the value of allowing both high-tech and lowtech industries to partake in innovation processes Although the academic literature on innovation processes in peripheral regions has been scarce, some suggestions have been made that small regions are better fitted for the DUI type of innovation (Isaksen and Karlsen 2012), and at the same time, low-tech firms are said to be vital as partners in innovation processes (Hansen and Winther 2011) Thus, if peripheral regions get connected, both inwards and outwards, they might stay competitive and have a role to play in larger innovation networks Perhaps, proximity and the presence of informal networks in small regions might even benefit adaptation to the Quadruple Helix concept and the integration of the fourth helix in the innovation process, thereby enhancing the impact of an intermediate organisation and its ability to attune the region to creating innovations The question whether a peripheral region would be more sensitive to a fourth helix is difficult to establish definitely An extensive case comparison would perhaps shed light on this issue Using a fictional case of ENABLING REGIONAL GROWTH IN PERIPHERAL NON-UNIVERSITY REGIONS: 213 comparison, a metropolitan region could, based on the intent of a few large companies and a large educational organisation, invest, for instance, in coal or nuclear energy technology, although the region possesses renewable energy resources, knowledge of using it and a public will for sustainability The notion is that the effects of the policy responses in the case study, i.e the emergence of KETEK, have a greater impact in a small peripheral region, with perhaps a defunct innovation system A technology centre supported by society is able to initiate and run innovation development in a peripheral region, and in this activity channel both political and industrial views At the same time as society, understood as the macroeconomic environment and national policy, provides impulses, the case study also demonstrates how the co-evolution of the political and the knowledge systems alters the fourth helix and opens up the actors of the Triple Helix towards each other In this manner, an innovation system where an intermediate organisation receives a central position is constructed KETEK chooses its areas of specialisation through a dialogue with the local industry and authorities, at the same time as new technologies and innovations are accessed through innovation networks and, for instance, the OSKE programme of the national government The advancement of the areas of specialisation is based on existing competences within chemistry acting as a link between all areas Laser and nano technology are also used in different fields, and in this manner, the activity of KETEK is somewhat definable as furthering related variety An important attribute of KETEK, emphasised repeatedly by employees in interviews, is the mobility of its employees, who are able to advance the transfer of knowledge and competence between industries and knowledge institutions The aim of always including both knowledge and industry in its development projects, as well as combining close incremental cooperation with companies (DUI) and the search for codified scientific knowledge (STI) are all compatible characteristics with both Mode and Smart Specialisation Strategy Although KETEK has been able to bring new knowledge to the region, opening SMEs to cooperation is perhaps the greatest achievement of KETEK. The building of trust and long-term relationships is the key here, since SMEs and DUI types of firms are difficult to reach in this regard KETEK has been especially important to SMEs, since they generally not have the means to engage in developing innovations Studying the entire life cycle of KETEK, it has certainly been able to open up the business sector to cooperation and knowledge exchange Another lesson of the KETEK www.ebook3000.com 214 K NORDBERG case is the chosen independence of the organisation, by avoiding having companies as owners in order to engage in confidential partnerships, and distancing itself from education in order to raise the profile as a company client Additionally, the profile as an independent actor has enabled KETEK to voice its opinion and to become an actor for general regional development In the academic literature of the Quadruple Helix model, the fourth helix has been defined both as “a general backdrop” and as specific actors, such as users of technology and NGOs One of these need not necessarily exclude the other, although the first interpretation could be perceived as a passive entity while the other refers to active participators On the contrary, the fourth helix, understood as a “creative knowledge environment”, implies that society in general is activated, and here, the first interpretation coalesces with the other Accordingly, if an intermediate organisation should act in accordance with the Quadruple Helix model, the organisation should promote both the inclusion of firms, citizens and users while simultaneously improving the knowledge environment Even though this case study has succeeded in including firms, in order to correspond to the model of a Quadruple Helix intermediate organisation, the next step could be to include users and citizens in a Living Lab concept As depicted in this chapter, certain changes in society resulted in policy responses introducing R&D as central to general regional development Here, a Quadruple Helix intermediate organisation belongs at the centre of development, activating society and channelling all kinds of knowledge and preferences REFERENCES Afonso, O., Monteiro, S., Thompson, M (2010) A growth model for the quadruple helix innovation theory NIPE WP 12 Arnkil, R., Järvensivu, V., Koski, P., Piirainen, T., (2010) Exploring quadruple helix Outlining user-oriented innovation models Työraportteja 85/2010 Working Papers Tampere: University of Tampere, Institute for Social Research, Work Research Centre Asheim, B (2009, October) Guest editorial: Introduction to the creative class in European city regions Economic Geography, 85(4), 355–362 Asheim, B., Boschma, R., & Cooke, P (2011a) Constructing regional advantage: Platform policies based on related variety and differentiated knowledge bases ENABLING REGIONAL GROWTH IN PERIPHERAL NON-UNIVERSITY REGIONS: 215 Regional Studies Special Issue: Regional Innovation Systems: Theory, Empirics and Policy, 45(7), 893–904 Asheim, B., Moodysson, J., & Tödtling, F (2011b, July) Constructing regional advantage: Towards state-of-the-art regional innovation system policies in Europe? European Planning Studies, 19(7), 1133–1139 Björk, P (2014) The DNA of tourism service innovation: A quadruple helix approach Journal of Knowledge Economy, 5, 181–202 Boschma, R., & Iammarino, S (2009) Related variety, trade linkages, and regional growth in Italy Economic Geography, 85(3), 289–311 Campbell, D.  F J., & Güttel, W.  H (2005) Knowledge production of firms: Research networks and the “scientification” of business R&D International Journal of Technology Management, 31(1/2), 152–175 Carayannis, E. G., & Campbell, D. F J (2006) “Mode 3”: Meaning and implications from a knowledge systems perspective In E.  G Carayannis & D.  F J. Campbell (Eds.), Knowledge creation, diffusion, and use in innovation networks and knowledge clusters A comparative systems approach across the United States, Europe and Asia (pp. 1–25) Westport: Praeger Carayannis, E.  G., & Campbell, D.  F J (2009) “Mode 3” and “Quadruple Helix”: Toward a 21st century fractal innovation ecosystem International Journal of Technology Management, 46(3/4), 201–234 Carayannis, E. G., D. F J. Campbell (2012) Mode knowledge production in quadruple helix innovation systems Twenty-first-century democracy, innovation, and entrepreneurship for development (SpringerBriefs in Business 2012, VI, 63 p. 13 illus) New York: Springer Eriksson, M., Niitamo, V.-P., & Kulkki, S (2005) State-of-the-art in utilizing living labs approach to user-centric ICT innovation  – A European approach Stockholm: Vinnova, Ministry of Enterprise, Energy and Communications Esmark, A (2011) Systems theory In B. Mark (Ed.), The SAGE handbook of governance Thousand Oaks: SAGE publications Etzkowitz, H., & Leyesdorff, L (2000) The dynamics of innovation: From National Systems and “Mode 2” to a Triple Helix of university–industry–government relations Research Policy, 29, 109–123 Florida, R (2002) The rise of the creative class: And how it’s transforming work, leisure, community, and everyday life Cambridge, MA: Basic Books Frenken, K., & Verburg, T (2007) Related variety, unrelated variety and regional economic growth Regional Studies, 41(5), 685–697 Goddard, J., Robertson, D., & Vallance, P (2012) Universities, technology and innovation centres and regional development: The case of the North-East of England Cambridge Journal of Economics, 36, 609–627 Gibbons, M., Limoges, C., Nowotny, H., Schwartzman, S., Scott, P., & Trow, M (1994) The new production of knowledge The dynamics of science and research in contemporary societies London: Sage www.ebook3000.com 216 K NORDBERG Hansen, T., & Winther, L (2011) Innovation, regional development and relations between high- and low-tech industries European Urban and Regional Studies, 18, 321–339 (Sage Publishing) Hemlin, S., Allwood, C. M., & Martin, B. R (2004) Creative knowledge environments The influences on creativity in research and innovation Cheltenham: Edward Elgar Isaksen, A., & Karlsen, J (2012) Can small regions construct regional advantages? The case of four Norwegian regions European Urban and Regional Studies, 20, 243 (Sage Publishing) Jacobs, J (1969) The economy of cities New York: Random House Jensen, M.  B., Johnson, B., Lorenz, E., & Lundvall, B.-Å (2007) Forms of knowledge and modes of innovation Research Policy, 36, 680–693 Johnson, B., Lorenz, E., & Lundvall, B. A (2002) Why all this fuss about codified and tacit knowledge? Industrial and Corporate Change, 11(2), 245–262 Kline, S. J., & Rosenberg, N (1986) An overview of innovation In R. Landau & N.  Rodenberg (Eds.), The positive sum strategy (pp.  275–304) Washington: National Academy Press Kristensen, P. H (2009) Conclusions: Developing comprehensive, enabling welfare states for offensive experimentalist business In New modes of globalizing: Experimentalism forms of economic organization and enabling welfare institutions Helsinki: Helsinki School of Economics Kristensen, P. H., & Lilja, K (2009) New modes of globalizing: Experimentalism forms of economic organization and enabling welfare institutions Helsinki: Helsinki School of Economics Kuhn, T. S (1962) The structure of scientific revolutions Chicago: The University of Chicago Press Landabaso, M (1997) The promotion of innovation in regional policy: Proposals for a regional innovation policy Entrepeneurship & Regional Development, 9(1), 1–24 Liljemark, T (2004) Innovation policy in Canada Strategy and realities Stockholm: Swedish Institute for Growth Policy Studies Luhmann, N (1997) Die Gesellschaft der Gesellschaft Frankfurt: Suhrkamp Marcovich, A., & Shinn, T (2011) From the Triple Helix to a Quadruple Helix? The case of dip-pen nanolithography Minerva, 49, 175–190 Marshall, A (1920) Principles of economics London: Macmillan Niemi, K., & Virkkala, S (2006) Innovative co-operation between Centria Ylivieska and the SME’s in Oulu South, Finland In K. Niemi & S. Virkkala (Eds.), Peripheral localities and innovation policies – Learning from good practices between the Nordic countries Oslo: Nordic Innovation Centre Nordberg, K (2014) On the democracy and relevance of governance networks Scandinavian Journal of Public Administration, 18(2), 23–48 Parsons, T (1951) The social system Glencoe: Free Press ENABLING REGIONAL GROWTH IN PERIPHERAL NON-UNIVERSITY REGIONS: 217 Schienstock, G., & Hämäläinen, T (2001) Transformation of the finnish innovation system: A network approach (Sitra Reports series, Vol 7) Helsinki: Sitra Schoonmaker, M. G., & Carayannis, E. G (2012) Mode 3: A proposed classification scheme for the knowledge economy and society Journal of the Knowledge Economy, 3(4), 556–577 Smart Specialisation Platform (2012) Guide to research and innovation strategies for smart specialisation (RIS 3) European Union Regional Policy Sørensen, E., & Torfing, J (2007) Theories of democratic network governance Hampshire: Palgrave Macmillan Virkkala, S (2013) Industrial development and competence building: Learning across converging trajectories In Å Mariussen & S. Virkkala (Eds.), Learning transnational learning London: Routledge www.ebook3000.com EPILOGUE One main feature distinguishing the globalised post-Fordist society from the Keynesian Fordist one is the presence and significance of functional regions, acting out of self-interest and often disregarding both national borders and policy This is of course in line with the economic logic of this era: local and regional bodies should strive to improve their global competitiveness and prosper on their own right However, this setup has also brought about the million-dollar question in social science today: how could democratic accountability structures and mechanisms be created that take notice of these functional and borderless networks? Humans are fundamentally social beings, constantly seeking affinity and social context The functional and flexible, rather than static and territorial, characteristics of societal features, as well as the increased mobility of people, certainly complicate community formation To illustrate this point, consider the way employment has changed during recent decades Previously, employment often lasted a lifetime; the profession and the colleagues formed an important part of the identity of the person and his or her social belonging Now, part-time employments, a proliferation of temporal project recruitments and a general fluidity of the workforce have changed the social function of employment When the forces of globalisation without detour or mediation touch local communities, it seems that © The Author(s) 2017 K Nordberg, Revolutionizing Economic and Democratic Systems, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, DOI 10.1007/978-3-319-40633-6 219 220 EPILOGUE certain mechanisms lead up to a questioning of the national elite, and finally result in turbulence in society Sadly, and a bit paradoxically, the parallel proliferation of ICT seems to have only amplified rather than alleviated this turbulence The collective knowledge of the world is now available in almost every person’s pocket, a fact that may be regarded as nothing less than a paramount democratisation of knowledge This empowerment of knowledge should be a great asset to society, but instead, it often appears to result in a general defiant attitude and a weakened authority position Government top-down steering just seems to be the wrong strategy under these circumstances The question posed to social science is extremely complex, but at the same time cannot remain unanswered In people’s search for context, fundamentalist and populist movements are gaining ground, offering solutions involving closed borders and gated communities The necessity to choose between tribalism and cosmopolitanism just is not a good option, since we essentially want both: we want to live in open borderless societies where people are able to shape their lives at their own discretion, at the same time as we want the sense of belonging local social contexts offer The answer to the question posed is closely connected to the individualisation of society and seems to involve the empowerment of citizens, in other words, citizens having a part to play in local governance The great contemporary challenges are strikingly global to their nature—climate change, growing inequality and migration are issues that must be addressed on an international level These challenges seem to boil down to two main issues: how can we achieve (1) growth in a finite world and (2) democracy in a multilevel, borderless world? The multilevel aspect is fundamental for a global society to function, and although these challenges must be met globally, the implementation will always be local Unresponsive top-down steering may even counteract the intended objective, as is well illustrated by the example of environmental protection In the literature of the management of natural resources, the necessity of involving locals is well evidenced (see e.g Holling et al 1998) Mere legislative protection of certain territories or species without any communication with local communities may easily render locals to oppose the law and even destroy the natural values they sought to protect Enlightening the local communities about circumstances relating to the local environment is still only one half of the value of inclusion in this matter The other involves the fact that often, the knowledge of ecosystems is not universal, since every ecosystem may hold local specificities, and obviously, only local www.ebook3000.com EPILOGUE 221 communities may have knowledge of these special features It is just not possible for central governments or national research institutions to continuously update changes of the specific features of local ecosystems in every corner of the nation—this knowledge will always primarily be local Additionally, when seeking growth by making use of natural resources in simultaneously more productive and sustainable manners, as the EU is doing through its Blue Growth strategy for instance, innovative solutions depend on local knowledge of ecosystems Instances presented in this book suggest that while global challenges must be addressed, implementation should be carried out through empowering, legitimate and inclusive local self-governance Setting up a multilevel structure is complicated and a large hurdle to overcome, but we still need to keep looking for a system that works Digital participative platforms exhibit some promising features regarding this matter (see e.g Horelli 2013) Participation may through such kinds of platforms become more continuous and accessible, at the same time as the possibility of interactive visualisation, through models or maps, offer simplification of complicated matters The availability and visibility opinions receive through such platforms may serve as an impellent for civil servants to pursue their implementation, raising the legitimacy of the whole system Digital platforms may also operate as hubs for innovation systems, allowing researchers access to local knowledge previously hidden, and offering local entrepreneurs and decision-makers scientific ideas and solutions In fact, innovation systems have become central parts of the post-Fordist order—the development route mapped out by innovation strategies is certainly felt throughout society These strategies are written on local, regional, national and supra-national levels, instantiating the multilevel character of the globalised society In a way, strategies may be viewed as soft steering mechanisms, setting up global common objectives, and by financing opportunities, steering local and regional action in certain directions Still, regional innovation and development strategies to some extent offer a leeway to self-governance, and this is especially evident in the case of the EU, whose financing strategies largely slip past national state control, offering regions alternatives when choosing development path The model for setting up innovation system strategies is not the complete picture here, but in a society revolving around growth, the inclusive and democratic qualities of this system potentially play a large part in the general legitimacy of the society system 222 EPILOGUE A large portion of this book has been devoted to explaining the reason why direct forms of participation, introduced as responses to and alleviations of the legitimacy deficiency of contemporary politics, easily fall outside of the actual decision-making apparatus The hierarchic representative system is just not able to handle direct input in a justifiable manner Hopefully, the issues that have been highlighted here might aid in finding an operational form for participative functional networks; at the least, some kind of empowering of local and regional bodies seem to be necessary REFERENCES Etzioni-Halevy, Eva (1993) The elite connection: Problems and Potentials of Western democracy Cambridge: Polity Press Holling, C. S., Berkes, F., & Folke, C (1998) Science, sustainability and resource management In F.  Berkes & C.  Folke (Eds.), Linking social and ecological systems, 342–362 Cambridge: Cambridge University Press Horelli, L (Ed.) (2013) New approaches to urban planning  – Insights from participatory communities (Aalto University Publication series 10/2013) Helsinki: Aalto University Michels, Robert (2001) Political parties: a sociological study of the oligarchical tendencies of modern democracy, Ontario: Batoche Books www.ebook3000.com INDEX A agonism, 16, 17 agonistic planning theory, 131, 132 B Baltic states, 96 Bernstein debate, bottom-up development, 33, 95 bottom-up processes, 7, 8, 15, 29, 33, 50, 62, 65–7, 81, 82, 91, 92, 116, 123 See also bottom-up development Bretton Woods, 87 business development, 63, 79, 158, 161, 167, 168, 170, 171, 174, 175, 178, 179, 181, 182, 211 business development agency, 158, 167, 170, 174, 175, 179, 181, 182 intermediate organization, 80–2, 185–214 Keskipohjanmaan teknologiapalvelukeskus (KETEK), 202 technology development centre, 209 C Cohesion Fund (CF), 108, 121 connectedness, 46–8, 50, 73, 80, 81, 83, 116 See also networking culturification, 43 Czech Republic, 96 D decentralisation, 4, 74, 88, 92–4, 95, 97, 99–101, 115, 122 democracy theory, 8, 9, 11, 53 accountability, 23–5, 27, 128, 135–9, 145–7, 149, 151, 153, 165, 166 (see also (responsibility)) © The Author(s) 2017 K Nordberg, Revolutionizing Economic and Democratic Systems, Palgrave Studies in Democracy, Innovation, and Entrepreneurship for Growth, DOI 10.1007/978-3-319-40633-6 223 224 INDEX decentralisation (cont.) aggregative democracy, 9, 20, 63 audience democracy, 12–15, 17, 19, 20, 50, 51 classical democracy, 8, 10, 19, 20 deliberative democracy, 23, 128, 132, 133, 137, 138, 142, 150, 151, 153 demos, 8, 9, 12, 16, 17, 20, 50 integrative democracy, 9, 18, 20 legitimacy, 8, 11, 23, 24, 29, 51–3, 74, 77, 89, 92, 99, 122, 127, 133, 134, 138, 149, 151, 152, 167 liberal democracy, 8–12, 15, 16, 18–20, 23–6, 51–3, 128, 150, 151 parliamentary democracy, 12, 13, 20, 51 participation, 9–11, 16–20, 22–4, 28, 49, 50, 52, 53, 62–4, 66, 73, 77, 82, 83, 89, 93, 96, 122, 127, 131–3, 137–9, 141–3, 145, 147, 149, 150, 153, 165, 166, 172, 188, 207, 221, 222 parties democracy, 12, 14, 20, 51 post-liberal democracy, 9, 11, 15–20, 27, 51, 52, 89, 122 representative democracy, 8–10, 11–17, 20, 24, 99, 134, 135, 137, 153 European Regional Development Fund (ERDF), 73, 102, 108, 110, 118, 120, 175 European Social Fund (ESF), 73 European Union (EU), 26, 35, 37, 40, 44, 53, 62, 66–8, 69, 72, 73, 75–7, 80, 82, 91, 92, 94–6, 100–4, 105, 108, 109, 111, 113, 116, 117, 120–2, 161, 162, 168, 170, 172, 185, 203, 205, 206, 212, 221 See also Cohesion Fund (CF); European Agricultural Fund for Rural Development (EAFRD); European Maritime and Fisheries Fund; European Regional Development Fund (ERDF); European Social Fund (ESF) additionality principle, 95 Common Agriculture Policy (CAP), 102 Community Led Local Development (CLLD), 110 LEADER programme, 62, 102, 104, 110, 116 local action group, 105, 110 Smart Specialisation Strategy, 40, 67, 109, 185, 212, 213 Structural Funds Programme, 95–7, 100–2, 104, 110–12, 113, 116, 118, 119, 129, 162, 163, 170, 206, 211 experimentalism, 67, 187, 201 E ELY-centre, 62, 73, 105, 108, 109, 112, 114, 117, 118, 141, 143, 162, 163, 174 environmental protection, 220 European Agricultural Fund for Rural Development (EAFRD), 104, 108, 110 European Maritime and Fisheries Fund (EMFF), 108 F Finnish Funding Agency for Technology and Innovation (TEKES), 111, 120, 163, 202, 207 Florida, Richard, 44, 46, 59, 198, 201 Fordism, 29–31, 32–6, 48, 51, 64, 190, 191 post-Fordism, 29, 32–6, 48, 51, 190 Founding Fathers, 8, 10, 11 functional networks, 88, 99, 222 www.ebook3000.com INDEX G geoeconomic practices, 98 geopolitical practices, 98 Giddens, Anthony, 3, 50 globalisation, 16, 20, 21, 34, 62, 64, 66, 68, 85–91, 93, 98, 109 hyperglobalisation, 85, 86 governance, 1, 2, 4, 7, 8, 11, 15–29, 33, 38, 43, 46, 48, 49, 51–3, 54, 127–53 governance networks, 8, 16, 23–5, 27, 28, 51–3, 60, 62, 75, 77, 78, 80, 81, 88, 89, 100, 127–53, 159, 189, 211 governance network theory, 24, 127, 128, 133–8, 149, 150, 152 metagovernance, 23–6, 27–9, 49, 51, 52, 54, 60, 82, 88, 89, 135, 136, 138, 140, 141, 149 Multi-level governance, 92, 94–7 New Governance, 7, 8, 16, 19–29, 33, 48, 49, 51, 62 self-governance, 16, 17, 25, 52, 61, 73, 77, 106, 129 I identity, 9, 14, 22, 97, 98, 121 regional identity, 97, 98 individualisation, 13, 19 industrial restructuring, 158–60, 163, 165, 166, 172 restructuring legislation, 159, 172, 180 restructuring policy, 158, 159, 163–72, 179 innovation, 1, 29–32, 34–40, 43, 44, 47, 48, 50, 53, 60, 64–6, 67, 70, 72, 73, 80–2, 87, 93, 104, 109–11, 120, 185–200–2, 203, 205–13, 221 Centre for Expertise Programme (OSKE), 103, 105, 110, 111, 113, 115, 117, 123, 163, 202, 203, 205, 207, 213 225 innovation modes, 40, 187, 190–2, 194, 196, 197 innovation systems, 35, 37, 43, 47, 48, 50, 67, 80, 185, 187–200–2, 203, 210–12, 213 Innovative Cities Programme (INKA), 66, 110, 111, 113, 115, 120 National Innovation Systems (NIS), 64–6, 67, 72 Quadruple Helix, 47, 53, 185–214 Quadruple Helix Intermediate Organisation, 185–214 regional innovation systems, 185, 186, 190, 196, 200–2, 203, 211 Triple Helix, 47, 53, 74, 80, 81, 186, 189, 197–9, 206, 211, 213 institutional thickness, 45 iPhone, 41–3, 48 J Jessop, Bob, 25, 33, 35, 36, 43, 44, 51, 76, 88, 97, 158, 181 K Keynesian economy, 20, 89 Fordist-Keynesian state, 33 Keynesian welfare state, 32, 33, 35, 51, 67, 75, 93 knowledge, 14, 17, 27–9, 30, 32, 34, 36–48, 50–2, 53, 59, 60, 65, 75, 77, 80, 81, 93, 94, 103, 109, 220, 221 diversified knowledge bases, 38, 187, 190–2, 194, 195 knowledge economy, 36–8, 44, 51, 52, 185, 187, 190, 199 knowledge networks, 185, 186, 190, 191, 195 knowledge society, 14 (see also (knowledge paradigm)) 226 INDEX knowledge (cont.) local knowledge, 27, 28, 48, 50, 51, 149, 151, 195 Mode Knowledge Production System, 47, 186, 190, 193–6 paradigm, 29, 32, 37, 38, 195 Kondriatev waves, 29–32, 47, 50 Nordic welfare state, 61, 67, 68, 210 Norway, 69, 78, 79, 152, 157–70, 176–9, 181 Scandinavia, 60, 61, 77, 78 Sweden, 61, 69, 200, 206 unitary states, 60, 74, 91, 96, 160 L learning, 27, 28, 33, 36, 40, 43–7, 48, 51, 53, 69, 70, 73–5, 78–80, 91–123, 191, 192, 201, 202 learning regions, 36, 40, 43–7, 53 localised learning, 36, 44–6 policy learning, 27, 28, 53 SECI model, 177, 179 social learning, 27, 28 transnational learning, 27, 28, 157–82 Living Labs, 200 O Ostrobothnia, 59–83, 92, 101–3, 113–15, 117, 118, 120–2, 127–53, 157, 158, 170, 173–6, 177–81, 204, 206, 209, 210 Kaskö, 157, 158, 170, 171, 173–81, 182 Kokkola-Jakobstad region, 71, 80, 81, 186, 202, 209 Southern Ostrobothnia, 78, 114, 157, 170, 173–5, 177–81 (see also (Syd-österbotten)) Vaasa region, 70–2, 113–15, 120 M Manin, Bernard, 9–15 Metsä-Botnia, 171, 173–5, 176, 179 modernism, 19, 51 post-modernism, 29, 51 N neoliberalism, 7, 21, 22, 33 networking, 37, 38, 43, 48, 50, 60, 67, 100, 101, 116, 117, 122, 165, 191, 192 Nordic countries, 67–71, 74, 78, 81, 103, 133, 186, 201 Denmark, 69, 202 Finland, 46, 59–64, 66–76, 79, 91, 92, 100–13, 114–21, 122, 127–53, 157–63, 170–9, 180–2, 202–4, 205, 209–11 P path dependency, 63, 76, 81, 97, 121, 158–60, 181 planning theory, 128, 131, 132, 138 pluricentrism, 15, 29, 50, 52, 81 Polanyi, Karl, 2, 85 Programme for Cohesion and Competition (KOKO), 105, 112–14, 117, 119, 120, 122 public administration, 22, 101, 127, 128, 160 New Institutionalism, 22 New Public Management, 21 New Public Service (NPS), 22, 23 regional administration, 63, 73, 101–3, 105–8, 128, 139, 158, 160–3, 162, 180 www.ebook3000.com INDEX R Reflexive modernization, 50 reflexivity, 2, 70 Regional Cohesion and Competitiveness Programme (COCO), 163, 170, 179 See also Programme for Cohesion and Competition (KOKO) Regional Council, 63, 70–2, 73, 75, 77, 100–3, 105, 106, 108–10, 112, 113, 115–19, 129–31, 139, 141, 143–5, 146, 148, 149, 162, 163, 174, 175, 179, 181, 206, 210, 211 regional development programme, 102–5, 112, 116, 117, 127, 129, 161, 163, 170 regions functional regions, 98, 99, 112, 121–3 (see also (functional networks)) regional development, 37, 44, 48, 51, 60–2, 65, 72, 73, 77, 78, 82, 96, 100–6, 111–13, 115–17, 121, 127–33, 142, 150, 151, 160–2, 163, 169, 170, 181, 187–90, 192, 193, 200, 201, 209–11, 212, 214 regionalism, 92, 97–9, 100 227 regional mobilization, 91–123 regional planning, 128–30 related variety, 40, 41, 46, 186, 187, 190, 192–4, 195, 212, 213 unrelated variety, 140, 193 responsibility, 2–7, 25, 61, 62, 79, 99–102, 106, 109, 111, 112, 134, 136, 139, 159, 161, 162, 167, 168, 171, 172, 178, 179, 182 S Schumpeterian Workfare State (SWS), 29, 35, 51, 53, 67, 75 Slovenia, 96 society systems, 49, 89, 187, 188 systems theory, 187 Sörensen, Eva, 8, 9, 15–18, 23, 25, 51 strategic relational approach (SRA), 94–7, 121, 158, 181 SWS See Schumpeterian Workfare State (SWS) Syd-österbotten, 70, 71, 73, 78–80 T The Third Way, 1–4 ... benefits” and “in-work benefits” The Third Way views civil society, the government and the market as interdependent and equal partners in the provision of welfare, and the duty of the state is... Manin compares the relationship between the people and the politicians to a theatre, where the politicians are the actors and directors and the people are the passive audience, hence the term audience... middle way (Castles et al 2011: 6–10) www.ebook3000.com INTRODUCTION: REINVENTING THE THIRD WAY In the 1990s, the concept of the Third Way referred to the model of action adopted by social democratic