Governance Innovation Research Articles

Government support for firm-level innovation in less innovation-intense regions

ABSTRACT Regional innovation intensity is a crucial external factor that influences firm-level innovation outcomes. Firms located in less innovation-intense regions typically under-perform equivalent firms in more innovation-intense regions. Research to-date suggests that the effectiveness of government support for firm-level innovation varies markedly, depending on a firms’ location. However, almost no evidence exists on the effectiveness of government innovation support, in the specific case of firms located in less innovation-intense regions. To fill this gap in the literature, this paper addresses the following research question: What impact does government innovation support have on firm-level innovation in less innovation-intense regions? The analysis draws on the World Bank’s 2010 Business Environment and Enterprise Performance Survey, for five South American countries. Results show that subsidised firms, located in less innovation-intense regions, significantly underperform matched-unsubsidised firms in higher innovation-intensity regions. This result suggests that regional innovation-intensity is a crucial factor in determining the effectiveness of government innovation subsidies.

Collaborative governance innovation in China’s higher vocational education in the digital era: Analyzing the direct and indirect impacts on organizational value creation

This study will explore the direct and indirect impacts of collaborative governance innovation on organizational value creation in higher vocational education in China in the context of the digital era. This paper employs a mixed research methodology to construct and validate a model of the relationship between collaborative governance, digital competence, value chain restructuring, and value creation. This study first adopted an exploratory sequential design. In the qualitative interviews, 15 experts from education, business, and other related fields were used as respondents to explore accurate variable factors and determine the value of the research framework. The quantitative research used structural equation analysis to analyze 979 valid online questionnaires. Finally, the rationality of the research results was verified through case studies. The findings are clear: collaborative governance significantly positively impacts value creation, indirectly affecting organizational value creation through value chain restructuring. Furthermore, digital capabilities significantly contribute to the value chain restructuring process. This paper provides a theoretical basis and practical guidance for higher vocational education organizations to improve their governance and innovation capabilities.

R&D project subsidy V.S. government innovation reward: The effectiveness on corporate innovation

This paper compares the effectiveness of R&D project subsidies and government innovation rewards. Using a dataset of China's listed companies from 2008 to 2019, we investigate the associations of these two innovation grants with corporate innovation. The results indicate that both R&D project subsidy and government innovation reward can increase corporate innovation output. However, only government innovation reward can encourage private R&D investment. In addition, R&D project subsidy serves as an incentive role through the governance and financing mechanisms, whereas the government innovation reward has only a governance mechanism. Furthermore, the R&D project subsidy has a relatively poor impact on large firms and state-owned enterprises (SOEs), whereas the government innovation reward can still motivate their innovation. This study contributes to the expanding body of literature by providing diverse evidence of innovation grants from the perspective of the government subsidizing stage.

POLICY ANALYSIS OF HUMAN FACTORS AND SOCIAL INNOVATION IN EU EASI PROGRAMME REPORTS (2015-2022)

Purpose. The Programme for Employment and Social Innovation (EaSI), launched by the EU (European Union), represents a financial instrument with the objective of addressing a range of policy analysis areas, as follows: (I) social protection and innovation; (II) social exclusion and social policies; (III) living and working conditions; and (IV) employment, job conditions, mobility, and social entrepreneurship settings under the European Social Fund Plus (ESF+). Objectives. Therefore, the current research aims to structure and analyse in a comparative framework a wide range of EU policies and governance applied to the EaSI reports launched in the period 2015-2022, considering the policy context, key actors, policy content, legal instruments, implementation and governance structures and impact assessment of societal challenges, the role of human factors and the need for social innovation. Methodology. The analysis utilises both quantitative and qualitative methods, building on the comparative legal analysis and developing a triple evaluation: social, economic and political. In order to monitor and review the policy outcomes contained in the EaSI reports, the current study will use the Text-Based Diagramming of the programme Mermaid v10.9.0 Live Editor. Results and findings. The results of the analysis will evaluate and measure the extent to which the three EaSI reports launched in the period 2015-2022 have met the requirements of social innovation by assessing the policy and governance implementation mechanisms and tracking the relevance of two determinants: EU societal challenges and human factors. Conclusion. The framework of the EaSI reports provides the evaluation findings on multi-level policy and strategy approaches and summarises the findings and broader perspectives of the three reports on the effectiveness of social innovation governance. The research findings highlight the societal challenges in the EU, the interdisciplinary circumstances and the evidence-based interplay between the policy framework and the adaptability of multi-level governance.

Competing Legal Futures – “Commodification Bets” All the Way From Personal Data to AI

Abstract This Article explores the implications of Artificial Intelligence (AI)-driven innovation across sectors, highlighting the resulting legal uncertainties. Despite the transformative influence of AI in healthcare, retail, finance and more, regulatory responses to these developments are often contradictory, contributing to the opacity of the legal underpinnings of AI business. Our Article notes the common trend of commercializing AI tools amidst legal uncertainty, using innovative contractual solutions to secure claims. Over time, these innovations trigger overlooked legal conflicts, sometimes leading to outright bans on AI products due to negative impacts on some fundamental rights and democratic Governance. The core argument of our Article is that an over-reliance on co-regulatory strategies, such as those proposed by the European AI Act, exacerbates legal instability in emerging technological markets. This panorama creates an ’extended legal present’ when alternative legal expectations coexist, thus causing economic and political uncertainty that may elicit legal instability in the future. The concept of ’competing legal futures’ is introduced to illustrate how economic actors must bet on a legal future in the absence of guarantees that this future will materialize. To help analyze this complex narrative, we propose a theoretical framework for understanding legal, technological, and economic dynamics, highlighting anomalies in market exchanges within the co-regulatory model. Despite the focus on European developments, the practical and theoretical implications extend beyond the EU, making the Article relevant to a broader understanding of the legal-economic challenges posed by AI and digital innovation. We conclude by arguing for a course correction, proposing institutional diversification for resilient governance of legal innovation under uncertainty.

Public Sector Participation in Innovation Governance: Evidence from the Lolli Strategy Project

Public Sector Participation in Innovation Governance: Evidence from the Lolli Strategy Project

Public control of coal resources of the United States’ Powder River Basin for a managed decarbonization transition

Abstract The United States (US) has set aggressive targets for reaching a carbon pollution-free power sector by 2035 and a net-zero economy by 2050. Reaching these goals will require both rapid expansion of zero- and negative-carbon infrastructure and a phase-out of unabated fossil fuel infrastructure. New subsidy and regulatory actions focus on eliminating coal emissions at the point of consumption either through carbon capture and storage (CCS) or coal-fired power plant retirement. Yet, these pathways have opposite implications for coal production: CCS is coal intensive, while coal retirement is not. Despite a record of chaotic and harmful transition and significant social scientific research suggesting better outcomes from managed, coordinated decline, these mechanisms rely on uncoordinated private decision making by mine and plant owners. Coal mining has rapidly declined since peak production in 2008. Production has dropped by half; bankruptcies are the norm; and coal mine and power plant host communities have experienced highly disruptive decline as a result of this unmanaged transition. Given this history, we argue the current market-based, plant-driven governance approach could worsen transition challenges, including potentially stranding costly CCS investments. We argue that the US should complement its extensive investments in technology demonstrations with innovative governance demonstrations to facilitate a just energy transition. Specifically, we argue that the Powder River Basin, which is the US’ largest coal basin and consists primarily of federally leased coal, should be brought under public control for managed decline both to meet emissions reduction targets and advance a just energy transition.

Characteristics and Emerging Trends in International City Negotiations

The article examines key features, main directions, and current trends in international negotiations between subnational territorial units using the example of cities. In today’s world, where the global political system is undergoing epochal change, the international activities of non-governmental and subnational actors, including their participation in international negotiations, have intensified. One of the key features of international city negotiations is that they occur mainly in a multilevel and multilateral format. This is due to the hybrid nature of cities, which are both state and non-state entities. The balance of power between cities and states in international relations depends on factors such as the degree of autonomy granted to sub-national units by the central government, as well as the level of economic and political influence held by cities. Sometimes, the position of a city may differ significantly from that of the state it belongs to. At the international level, there are several specialized institutions and mechanisms that allow cities to coordinate their positions and develop common approaches. These include the World Association of United Cities and Local Authorities, the World Assembly of Local and Regional Authorities, and the Metropolis Association. The main topics of today’s multilateral negotiations between cities include combating climate change, ensuring protection from natural disasters, promoting the rights of migrants and other displaced people, and fostering innovation in urban environment and governance. In contrast, bilateral negotiations between cities, based on the institution of sister cities, focus more on the humanitarian, scientific, educational, and cultural spheres of cooperation. Finally, current trends in international city negotiations include the increasing use of digital technologies and the geographical reorientation of Russian cities’ partnerships towards the countries of the “global majority.”

Public sector readiness for value co-creation: the diffusion of a governance innovation

IMPACT Public services, particularly in sparsely populated areas, are increasingly required to demonstrate their value—especially in terms of the public benefits they provide to local communities. In Scandinavia, local civil society organizations have long been overlooked as key partners in creating public value together with municipalities. Since 2010, Sweden has been experimenting with collaborative co-creation models that involve both municipal and third sector service providers. This article explores the specifics and reception of such models in rural areas of Finland and identifies the key lessons learned. It delves into the impact of legal frameworks and entrenched public sector norms on the success of these initiatives. The aim is to enhance the understanding of the prerequisites for applying this model among public and civil society actors.

Positive Energy Districts: Fundamentals, Assessment Methodologies, Modeling and Research Gaps

The definition, characterization and implementation of Positive Energy Districts is crucial in the path towards urban decarbonization and energy transition. However, several issues still must be addressed: the need for a clear and comprehensive definition, and the settlement of a consistent design approach for Positive Energy Districts. As emerged throughout the workshop held during the fourth edition of Smart and Sustainable Planning for Cities and Regions Conference (SSPCR 2022) in Bolzano (Italy), further critical points are also linked to the planning, modeling and assessment steps, besides sustainability aspects and stakeholders’ involvement. The “World Café” methodology adopted during the workshop allowed for simple—but also effective and flexible—group discussions focused on the detection of key PED characteristics, such as morphologic, socio-economic, demographic, technological, quality-of-life and feasibility factors. Four main work groups were defined in order to allow them to share, compare and discuss around five main PED-related topics: energy efficiency, energy flexibility, e-mobility, soft mobility, and low-carbon generation. Indeed, to properly deal with PED challenges and crucial aspects, it is necessary to combine and balance these technologies with enabler factors like financing instruments, social innovation and involvement, innovative governance and far-sighted policies. This paper proposes, in a structured form, the main outcomes of the co-creation approach developed during the workshop. The importance of implementing a holistic approach was highlighted: it requires a systematic and consistent integration of economic, environmental and social aspects directly connected to an interdisciplinary cross-sectorial collaboration between researchers, policymakers, industries, municipalities, and citizens. Furthermore, it was reaffirmed that, to make informed and reasoned decisions throughout an effective PED design and planning process, social, ecological, and cultural factors (besides merely technical aspects) play a crucial role. Thanks to the valuable insights and recommendations gathered from the workshop participants, a conscious awareness of key issues in PED design and implementation emerged, and the fundamental role of stakeholders in the PED development path was confirmed.

Brexit and labour governance: Authoritarian innovations in the United Kingdom

The concept of authoritarian innovations encourages a focus on authoritarian change at the meso-level of governance. At the same time, this article argues that such meso-level change can be best understood by taking into account macro-level (authoritarian) developments. In the UK, Brexit has generated a broader macro-level authoritarian innovation, creating cumulative effects at the level of politics, governance and jurisdiction. This macro-level development is reflected in authoritarian innovation at the meso-level of labour governance. The article first explains how Brexit relates to three key drivers for authoritarian innovations in labour governance, namely, general authoritarian inclination, neoliberal policy and electoral populist motivations. It then analyses the main authoritarian innovations in labour governance adopted since Brexit, namely, the approach to the legacy of EU protective standards and new policy measures limiting the right to strike. Using a discourse on democracy, acting against the ‘undemocratic EU’ and relying on ‘the referendum mandate’, UK governance post-Brexit is characterised by reducing pluralist processes and even parliamentary debate, enabling these authoritarian innovations. At the same time, due to the inherent contradictory forces inspiring Brexit, the long-term impact of Brexit on labour governance will likely remain modest.

Authoritarian innovations in the Polish industrial relations: From liberal to illiberal illusory corporatism?

The article addresses the problem of ‘authoritarian innovations’ in labour governance in Poland, understood as new government practices that maintain the semblance of social dialogue while limiting the influence of unions. Unlike most studies that analyse authoritarian practices since the right-wing Law and Justice Party came to power in Poland in 2015, this analysis takes a longer historical perspective. Drawing from Ost's thesis of ‘illusory corporatism’, it argues that a fundamental element of neoliberal transformation in Poland after 1989 was the introduction of weak tripartite institutions used to suppress social conflicts while complying with international standards. Based on documentary analysis and 37 expert interviews with social partners, the article shows how authoritarian innovations introduced in the 1990s have undermined worker participation and tripartite social dialogue in the context of two crises: the global financial crisis of 2008–12 and the COVID-19 pandemic of 2020–22. Comparing the role of social dialogue in shaping the responses of liberal and illiberal governments to these different external shocks, the analysis demonstrates the continuity and evolution of authoritarian innovations in labour governance in Poland and their implications for theoretical debates arounds corporatism.

Innovating Imihigo: a decentralisation and indigenous governance mechanism in Rwanda

ABSTRACT Imihigo, Rwanda’s flagship performance barometer, is praised for its cultural innovation while being criticised for instrumentalising the regime’s international credibility. Both views gloss over several thematic points, including the strategic self-criticism Imihigo affords. We triangulate fieldwork data collected from local government actors and non-state agents in four districts with secondary data to analyse the quotidian strategies undergirding the spread of, and governance responses to, Imihigo. Our analysis demonstrates three key points. First, the decentralisation reform offers the requisite institutional backdrop for officials to articulate Imihigo as a cultural innovation for local governance and regime legitimacy. The state’s reasonable support for Imihigo incentivises local service delivery, although this is used by the regime to control the local arena. Consequentially, Rwandans’ interest in Imihigo frames a forum for official criticism. Our study shows a paradoxical use of cultural and modern norms for contemporary governance through a strong state committed to producing results.

Inclusive Innovation Governance for Just Transitions: Insights from the Bean Agri-Food System in the Brunca Region of Costa Rica

This study explores how an inclusive governance of “niche” innovations with family farmers enables or limits the realization of just transitions in family farming at different scales, from the local to the national levels. The research focuses on a case study in the Brunca region of Costa Rica, which has pioneered innovations for bean research with family farmers. The primary source of information for the study was in-depth interviews with relevant stakeholders. Secondary information comes from a desk review of the relevant policies and strategic documents from the relevant authorities. Lastly, a semi-scoping review was conducted to explore gender and intergenerational gaps in plant breeding, as well as potential conflicts between plant breeding and on-farm agro-diversity. The inclusive governance of bean research contributes to the realization of just-transition dimensions of justice, such as recognitional, procedural, and distributional justice, as a result of farmers’ engagement in participatory plant-breeding processes, and due to the coordination between different institutions at the local and national levels. Progress has been made in terms of the recognition and participation of farmers in research and in decision-making locally. The findings show interactions between the local and national scales, in terms of the commercialization of farmers’ seeds. However, the Costa Rican program for bean research struggles to engage family farmers in national decision-making processes and falls short of addressing equality and intergenerational issues. It also faces challenges in reaching a balance between short-term income generation and long-term conservation of agro-biodiversity on the farm. Fostering just transitions in family farming would require a greater inclusion of women and youth by the Costa Rican bean system. This implies allocating resources to increase their capacities and participation in bean research, as well as in decision-making at all levels. This is imperative and could be achieved if the government and relevant stakeholders align their strategic objectives and priorities to shorten gender and intergenerational gaps within the bean production system.

Adjustment of the marine ecological red lines in China

The marine ecological red lines (MERLs) is an institutional innovation of the Chinese government to seek a balance between ecological protection and social development. China’s MERLs was designated in 2017, but there are problems such as insufficient consideration of areas of high ecological importance and lack of convergence with marine functional zoning. This paper carries out the adjustment of the MERLs in China by constructing the methods of marine ecological importance assessment and human activities disposal assessment, and the results show that after the adjustment, the type and distribution pattern of China’s MERLs is more reasonable, the areas of high ecological importance in the MERLs increases significantly, the intensity of human activities in the MERLs declines significantly, and the unification with the use of marine space is realized. China’s adjustment of the MERLs is based on scientific assessment and realizes the coordination of development and protection, which can provide a reference for global marine ecological protection.

Factors influencing villagers’ willingness to participate in grassroots governance: evidence from the Chinese social survey

Village self-governance is becoming a crucial measure in advancing social governance innovation in China. It plays an irreplaceable role in promoting sustainable rural governance, yet some villagers’ willingness and capacity to participate in grassroots governance need cultivation and enhancement. To explore the factors influencing villagers’ willingness to participate in grassroots governance and the conditions under which these factors operate, this study tests its hypotheses using data from the 2019 Chinese Social Survey, which includes 7031 responses. The findings reveal that the positive relationship between political efficacy and villagers’ willingness to participate in grassroots governance is moderated by satisfaction with government performance. Additionally, the interaction effect between political efficacy and satisfaction with government performance on villagers’ willingness to participate in grassroots governance is further moderated by the higher-order effect of perceived social justice. This indicates that among villagers with a high sense of social justice, the interaction effect between political efficacy and satisfaction with government performance more strongly predicts their willingness to participate in grassroots governance.

Innovation governance in Poland. Technological trends with an outlook to 2030

The research problem of the article concerns adapting current innovation governance theories to assess national innovation systems. The operationalization of this task in the Polish context translated into identifying the most promising trends and technological areas for the Polish economy in the 2030 perspective. The study included a horizon scanning and trend radar variant, identifying seven trends: nanomaterials and nanotechnologies, smart grids and energy storage, Food Tech, smart/precision farming, drone technologies, telemedicine, application of hydrogen in steel, and the technological areas included in them. Results were further assessed based on CAWI surveys conducted on a sample of experts representing the Łukasiewicz Research Network. Smart/precision farming, telemedicine, smart grids and Food Tech proved the most promising for the Polish economy. The small difference in results leads us to believe that nanomaterials and nanotechnologies, drone technologies and hydrogen applications in steel production should also be in the spotlight, but special attention should be paid to the accompanying challenges, such as development costs or insufficient R&D infrastructure. The size and scope of the research make it unique and, at the same time, support the significance of the results for Polish technology, economy and science.

Government Management for Sustainable Economic Development and Innovation

Objective: The objective of this study is to analyze whether efficient and effective government management promotes sustainable economic growth and innovation. It seeks to understand how the income generated through GDP per capita is related to the effectiveness and efficiency with which the government of the State of Nayarit performs. Theoretical Framework: Effective and efficient government management, which uses innovative technologies to improve public administration, is the basis of the research. The relevance of economic diversification for resilience to external events is highlighted, based on the endogenous growth theory, which emphasizes the role of innovation and human capital in economic development. Transparency and citizen participation, which are fundamental for a modern and effective government, are promoted by open government innovation. Method: A non-experimental research of quantitative type was established, in which information was collected on the study variables (Hernández et al., 2014). Subsequently, a correlational type of research was conducted, considering four socioeconomic development indicators of the Mexican Institute for Competitiveness A.C. The research was conducted in Nayarit, Mexico, considering the periods from 2021 to 2023. Subsequently, Spearman's Rho correlation was performed because the Shapiro-Wilk normality test did not meet the normality assumption. Results and Discussion: The findings reveal important relationships and implications in the theory of efficient and effective government administration; first, it shows that improvements in tax collection efficiency are directly related to economic growth and diversification in Nayarit, Mexico. On the other hand, economic growth is driven by internal factors such as investment in human capital and innovation, further suggesting that greater economic complexity can lead to lower own revenues and ultimately to a lack of technological infrastructure or adequate public policies. Implications of the research: The practical and theoretical implications of this study highlight the importance of efficient and strategic government management, the need for economic diversification policies, and the re-evaluation of economic theory in specific contexts. The differences and limitations observed suggest areas for future research and improvements in data collection. Originality/Value: The present research contributes to the line of public administration and economic development, since the results found motivate the generation of sustainable growth and economic diversification policies. The above, adds to the content on state level income and GDP, in this particular case to the state of Nayarit, Mexico.

When authoritarian innovations fail: Labour governance in Myanmar's reform era and beyond

The concept of authoritarian innovations provides a means of interpreting labour governance practices that claim to uphold democratic values and international labour standards while restricting labour participation and genuine voice in the workplace. Two underexplored dimensions of this literature are (a) how authoritarian practices are utilised by power elites in ‘hybrid’ state formations and (b) under what conditions they may be discarded in favour of a return to direct forms of coercion and violence. In this article, we examine these questions with reference to Myanmar, where there was a decade of experimentation with democracy before a reversion to military-dominated authoritarian rule in February 2021. In the first half of that decade, space opened under a military-led government for decidedly more democratic labour relations, although labour governance reforms were designed and operationalised in ways that constrained the strength and reach of trade unions. In the second half, a democratically elected civilian-led government presided over the contraction of the space available to organised labour. By tracking the alignment of meso-level authoritarian practices against the changing macro-level character of Myanmar's political landscape, this article contributes to theoretical debates within the emerging literature on authoritarian innovations in labour governance.

Unpacking the agricultural innovation and diffusion for modernizing the smallholders in rural China: From the perspective of agricultural innovation system and its governance

Innovation is perceived as a crucial tool for addressing the serious global challenges faced by the agriculture sector. This paper focuses on a new local public agricultural innovation project in the context of rural China, and intends to capture the embodied agricultural innovation and dissemination network for modernizing the smallholders. Through integrating the concepts of Agricultural Innovation System and Agricultural Innovation Governance, we develop a comprehensive framework for understanding the partnerships between agri-technicians and small farmers within the network structured by innovation governance practices. In-depth interview and network analysis methods were used to scrutinize the linkages among actors engaged with the agricultural innovation programme in case area and detect the achievements in enabling smallholders to upgrade technical trajectories in production and fostering modern farmers at the local levels. Our empirical analysis suggests that the single-center and multi-level network produced in the agricultural innovation practices, which is distinctive to the previous simplistic linear model for technology transfer, demonstrates obvious effectiveness in diffusing the new knowledge both vertically and horizontally, and that the grassroots sub-network generates the interaction space between agronomic experts and farmers for building mutual trust and co-producing technologies suitable for local conditions. Through allocating financial resources and supervising the public agricultural innovation projects, the provincial government indirectly dominates the directionality of local agricultural innovation for enabling smallholders to learn emerging technologies and cultivating the new generation of professional farmers. Nevertheless, the current agricultural innovation practice in case area has not completely avoided the social selection bias due to the clear marginalization of some vulnerable smallholders, and the duration of innovation projects imposed negative influence on the persistent collaborations between agri-technicians and smallholders in places. It is argued that for meeting the national agenda of agricultural modernization and common prosperity in rural area, how to reform the management measures of public innovation projects and enable the vulnerable farmers to equally engage with the innovation activities and share the interests brought by new technologies are the urgent challenges need to be addressed in the future.