Co-evolution of the Finnish National and Local Innovation and Science Arenas: Towards a Dynamic Understanding of Multi-Level Governance Markku Sotarauta, Mika Kautonen To cite this version: Markku Sotarauta, Mika Kautonen. Co-evolution of the Finnish National and Local Innovation and Science Arenas: Towards a Dynamic Understanding of Multi-Level Governance. Regional Studies, 2007, 41 (08), pp.1085-1098. ￿10.1080/00343400701292284￿. ￿hal-00514675￿ HAL Id: hal-00514675 https://hal.archives-ouvertes.fr/hal-00514675 Submitted on 3 Sep 2010 HAL is a multi-disciplinary open access L’archive ouverte pluridisciplinaire HAL, est archive for the deposit and dissemination of sci- destinée au dépôt et à la diffusion de documents entific research documents, whether they are pub- scientifiques de niveau recherche, publiés ou non, lished or not. 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Regional Studies F o r P e e r R Co-evolution of the Finnish National and Local Innovation and Science Arenas: Towards a Dynamic Understanding of e Multi-Level Governance v i e Journal: Regional Studies Manuscript ID: CRES-2006-0104.R2 w Manuscript Type: Main Section O38 - Government Policy < O3 - Technological Change|Research O and Development < O - Economic Development, Technological Change, and Growth, R00 - General < R0 - General < R - Urban, Rural, and Regional Economics, R11 - Rengional Economic Activity: JEL codes: Growth, Development, and Changes < R1 - Gleneral Regional Economics < R - Urban, Rural, and Regional Economics, R58 - Regional Development Policy < R5 - Regional Gyovernment Analysis < R - Urban, Rural, and Regional Economics science policy, governance, innovation system, co-evolution, Keywords: regional development, innovation policy http://mc.manuscriptcentral.com/cres Email: [email protected] Page 1 of 77 Regional Studies 1 2 3 4 5 6 7 8 9 10 11 12 13 14 F 15 16 o 17 18 r 19 20 21 P 22 23 e 24 e 25 26 r 27 28 29 R 30 31 e 32 v 33 i 34 35 e 36 37 38 w 39 40 41 O 42 43 n 44 l 45 46 y 47 67x102mm (300 x 300 DPI) 48 49 50 51 52 53 54 55 56 57 58 59 60 http://mc.manuscriptcentral.com/cres Email: [email protected] Regional Studies Deleted: Markku SotarPauata g&e M i2ka. .o. [f1 ]77 Deleted: and National at the Finnish Deleted: on 1 Deleted: : A 2 Markku Sotarauta & Mika Kautonen Deleted: Prerequisite for Innovat.i.o. n[ 2] 3 Deleted: [Submitted to a special iss.u..e [o3n] 4 Co-evolution of the Finnish National and Local Innovation and Science Deleted: to 5 Arenas: Towards a Dynamic Understanding of Multi-Level Governance Deleted: innovation capacity 6 7 Deleted: as a whole, and…over th.e. .p [a4st] 8 Deleted: has 9 Deleted: have the main science, ... [5] 10 Deleted: , 11 Abstract Deleted: …which have …been ... [6] 12 Deleted: innovation 13 In Finland, science policy is in the hands of central government and regions/localities do not Deleted: ; 14 directly have any say in the formulation of science policies. However, Finnish city-regions have Deleted: , 15 influenced national science policies indirectly and the interaction of national and local policies has 16 unfolded in time in innovation and science arenas. This paper aims to provide answers to the Deleted: and F 17 following questions: a) how has the institutional basis for science and innovation evolved in Finland Deleted: has … in time ... [7] 18 over the past 50 years, especially in three Finnish case city-regions b) who have been the main Deleted: ; i.e. how have the roles an..d. [8] actors in the evolutioon of institutional capacity and what have their main strategies been c) how 19 Deleted: . 20 have national and local prolicies and developments co-evolved over time? The article focuses Deleted: We are especially interested in 21 particularly on how different policies, local and national, have co-evolved in the context of multi- level governance. Formatted ... [9] 22 Deleted: in time 23 P 24 1 Introduction Deleted: What makes Finland an ... [10] 25 e Deleted: and 26 During the last 50 years Finland first transformed from an agricultural into an industrial Deleted: along with some of its c.it.y. -[11] 27 economy and then quite rapidly intoe one of the foremost countries of the knowledge Deleted: brake 28 economy. At every level the public serctor, often in co-operation with research and Deleted: break out to a new path .a..n d[1 2] 29 educational institutes and firms, has aimed t o strengthen the innovation capacity of both Deleted: In Finland, science polic.y.. i s[ 1in3 ] 30 regions and firms through science, innovation and/or technology policies. We scrutinize Deleted: the 31 32 here how national and local efforts have co-evRolved in time and how they have influenced Deleted: central government, and. .. [14] 33 each other and the development of innovation capaecity both nationally and in various parts Deleted: regions and especially 34 of the country. The novelty of this paper relates to the focus on the interplay between Deleted: city-regions have influen.c..e d[ 15] 35 national and local efforts and policies to strengthen innovvation capacity. In Finland, science Deleted: development of innovat.io..n [ 16] 36 policy is in the hands of central government and regions/loicalities do not directly have any Deleted: ways the interaction of n..a.t i[o1n7al] 37 say in the formulation of science policies. However, we aim to show how regions, and Formatted ... [18] 38 e especially city-regions, have influenced science policies indirectly and the ways in which the Deleted: The change is vast, but i.t.s. [19] 39 interaction of national and local has unfolded over time in innovation and science arenas. Deleted: ¶ ... [20] 40 w 41 When discussing local developments we focus on three different Finnish city-regions. Formatted ... [21] 42 Tampere and Jyväskylä are traditional industrial cities that have been able to recreate Formatted ... [22] 43 themselves and rise to a key position amongst the group of cities which are utilizing the Deleted: and 44 possibilities of new technologies and science-based trajectories. SeinäjoOki, on the other Deleted: some of its city-regions, .h..a s[ 23] 45 Deleted: brake hand, is a small centre of a traditional agricultural region and, due to historical reasons, its 4467 institutional base supporting innovation is thin. Nevertheless, Seinäjoki nhas lcreated Deleted: break out to a new path .a..n d[2 4] Deleted: 48 solutions to strengthen its institutions and to link to major knowledge and innovation yDeleted: -oriented global framew.o.r.k [ w25as] 49 networks in Finland and beyond. We decided to focus on these three cases for two main Deleted: , partly, 50 reasons. First, the choice of city-regions has been determined by extensive case-study work 51 Deleted: of lucky timing, but also. .o.f [26] carried out in these localities. Second, Tampere and Jyväskylä are known to be proactive in 52 Deleted: On the c 53 Deleted: Contrary to the other ar.t.ic. le[s2 7o]f 54 Formatted ... [28] 55 Deleted: explicitly 56 Deleted: solely on regional scienc.e. . [29] 57 Deleted: the 58 59 ... [30] 60 ... [31] Formatted ... [32] ... [33] Formatted ... [34] http://mc.manuscriptcentral.com/cres Email: [email protected] Formatted ... [35] Deleted: therefore they Page 3 of 77 Regional Studies Formatted ... [38] Deleted: from 1 Formatted ... [39] 2 Deleted: also their local development efforts and are therefore representative of the co-evolution of local 3 Formatted ... [40] and national points of view. During the last ten years, Seinäjoki has also actively promoted 4 Deleted: the 5 economic development and been able to adapt to the changing external environment. Deleted: economic 6 Of course, other Finnish cases could have been selected. Oulu is a fairly well known and Formatted ... [41] 7 celebrated case through which many interesting observations about the co-evolution of Deleted: also 8 national and local developments could have been raised (for more about Oulu, see Tervo 9 Formatted ... [42] 2002; Männistö 2002). Relating to the field of biotechnology, Turku could also have been 10 Deleted: more about Oulu among the cases discussed here (see Höyssä 2004 et al.; Bruun 2002; Srinivas & Viljamaa 11 Deleted: , and especially in the 12 2003). Helsinki, of course, dominates the Finnish scene in science, innovation and Formatted ... [43] 13 technology development. However, being the only city-region in Finland that might be Deleted: 14 labelled metropolitan, it is quite a different case. It represents a complex and versatile Formatted ... [44] 15 metropolitan region, where truly proactive and collective local development efforts have Deleted: also 16 17 only started to Femerge slowly in the early 2000s, but where the institutional basis for Formatted ... [45] 18 innovation and corporate and research activities are very strong due to its capital status (for Deleted: 19 more about Helsinkio, see e.g. Pelkonen 2005; Boucher et al. 2001). Formatted ... [46] 20 In the Tampere caser, we draw on several earlier studies on innovation activities and Deleted: not until 21 economic development tha t have been carried out by ourselves or by other members of Deleted: only 22 our two research groups (see Kautonen et al. 2002; Kostiainen & Sotarauta 2003; Formatted ... [47] 23 P Kautonen et al. 2004; Schienstock et al. 1998; Schienstock et al. 2004; Martinez-Vela & Deleted: is 24 25 Viljamaa 2004; Kautonen 2006). Ien these studies over 100 interviews have been carried out Formatted ... [48] 26 and archival data was extensively used. The Jyväskylä case is based on a study focusing on Deleted: ,…and where corporate .a..n d[4 9] 27 the emergence of the information aned communication technology cluster (see Linnamaa Deleted: more about Helsinki 28 2002). In this study 25 interviews werer done and various written documents, such as Deleted: here … in Tampere…th.e.. [50] 29 strategic plans, memoranda, evaluations and overviews, were analysed (see Linnamaa 2002). Formatted ... [51] 30 In the Seinäjoki case, we draw on studies carried out by Sotarauta and Kosonen (Sotarauta Deleted: we are engaged 31 & Kosonen 2004; Kosonen 2005) through Rwhich 55 interviews were carried out and Deleted: to 32 archival data analysed. In each case, the key actors in respective development processes – Deleted: in …. ... [52] 33 e 34 representatives from firms, local, regional and national development agencies, local Formatted ... [53] Deleted: were made 35 government, research and educational institutes and scievnce parks - were interviewed. 36 i Formatted ... [54] 37 Deleted: . Also 38 e Formatted ... [55] 39 Deleted: made 40 w Formatted ... [56] 41 Deleted: , 42 Formatted ... [57] 43 44 O Deleted: .…In addition to archiva..l .d [a5ta8, ] 45 Formatted ... [59] 46 n Deleted: made in these studies 47 l Formatted ... [60] 48 Deleted: every y 49 Formatted ... [61] 50 Deleted: - 51 Formatted ... [62] 52 Deleted: r 53 54 Formatted ... [63] 55 2 Deleted: ¶ 56 Formatted ... [64] 57 58 59 60 http://mc.manuscriptcentral.com/cres Email: [email protected] Regional Studies Page 4 of 77 1 Formatted: Caption MS, Centered 2 Deleted: ¶ 3 4 Formatted: Font: 11 pt 5 6 Deleted: ¶ 7 Formatted: Ekakpl 8 Deleted: As we show below, g 9 Formatted: English (U.K.) 10 Deleted: 11 Deleted: claim 12 Deleted: propose that 13 14 Deleted: on 15 Deleted: for their part also … and therefore, at least to some extent, it is 16 F and not …, and that if ... [65] 17 Formatted: English (U.K.) 18 o Formatted: MS 19 20 r Deleted: to 21 FIGURE 1. The location of th e cases in Finland Deleted: as a whole and 22 Formatted ... [66] 23 Global and national developPments and policies are intertwined and they have clearly Deleted: case 24 influenced local developments. However, we also demonstrate how local developments Formatted: English (U.K.) 25 and policies have fed into larger deevelopmental patterns, making it possible to talk about Deleted: over the past 50 years, 26 Deleted: s the ‘co-evolution’ of national and locael developments, rather than simply about top-down 27 Deleted: been in this process 28 or bottom-up policies, or multi-level goverrnance. Our aim is not, however, to replace the Formatted: English (U.K.) 29 concept of multi-level governance with co-ev olution but to complement it, by showing that 30 the relationship between various levels is not a static but a dynamic one. At the same time, Deleted: , 31 Deleted: which if we want to better understand the role thRat various actors at various levels play in 32 Formatted ... [67] economic development, we need to be more sensitive to temporal issues. 33 e Deleted: been This paper aims to answer the following questions: a) how has the institutional basis for 34 Deleted: ,…has ... [68] 35 science and innovation evolved in Finland over the past v50 years, especially in three Finnish Deleted: 36 city-regions, and what have the main science, technology aind innovation policies been; b) Formatted: English (U.K.) 37 who have been the main actors in the evolution of institutional capacity and what have 38 e Deleted: in time their main strategies been; and c) how have national and local policies and developments 39 Formatted: Font color: Pink, English co-evolved over time, in terms of the extent to which the roles and policies of different (U.K.) 40 w administrative levels have influenced each other? We are especially interested in how Deleted: ; i.e. how have 41 42 different policies, local and national, have co-evolved in the context of multi-level Formatted ... [69] 43 governance. Deleted: in time…. ... [70] 44 O Formatted: English (U.K.) 45 2 Co-evolution instead of top-down or bottom-up Deleted: in time 46 n Formatted ... [71] 47 l Since the 1970s the interrelationship between global and local forces has aroused great Deleted: a) how has the innovation 48 capacity evolved in Finland as a who..l.e [a7n2d ] interest among regional scientists. In the 1970s, according to Machimura (1998),y local 49 Formatted ... [73] development was largely seen as the result of global forces (multinational corporations, 50 Deleted: 0’…’…it was seen that …...i s[ 74] 51 international capital, international division of labour, etc.). In the 1980s, a new “bottom-up- Deleted: more …a ... [75] 52 oriented development view” started to gain ground to counterbalance, or to challenge, the Deleted: ’… … ... [76] 53 54 55 3 56 57 58 59 60 http://mc.manuscriptcentral.com/cres Email: [email protected] Page 5 of 77 Regional Studies 1 2 earlier development paradigm. The new emphasis on regional and local levels became Deleted: view…the … …, in on.e. .w [a7y 7] 3 apparent, for instance, in the fact that development was increasingly seen to emerge from 4 Deleted: Florida (1995), for exam.p..l e[, 78] 5 the bottom-up (e.g. Stöhr 1981 and 1988), as well as in the many models of local Deleted: actually ended up …ing... [79] 6 development in the 1990s and 2000s which stressed the significance of locality in economic Formatted: Font color: Auto 7 development. Some commentators have even claimed that regions have replaced the Deleted: 8 nation-state as the centrepiece of economic activity (Ohmae 1995.) Deleted: . 9 In the mid-2000s, it has become clear that the voices that earlier prophesised the role of Deleted: Now, i 10 11 the state to fade away have been proven wrong, or at least have hugely exaggerated the Deleted: …’ ... [80] 12 situation. For example, the State of Finland still plays a crucial role in the various policy Deleted: we are able to say that …..d. o[o8m1] 13 fields, but it is also obvious that the role of regions, or rather sub-regions (and especially Deleted: ing 14 city-regions), has grown during the last 10–15 years. The role of the region in knowledge Deleted: ed 15 accumulation is relative (Amin and Tomaney 1995) and those commentators who only Formatted: Font color: Auto 16 stress regional iFnnovation systems, networks and/or learning regions, do not adequately Deleted: as …is ... [82] 17 take the role of national policies and decisions into consideration, or rather the co- Deleted: have …- ... [83] 18 19 evolution of variouso policies at various levels. These observations are especially valid from Deleted: As Amin and Tomaney .(.1.9 [9854) ] 20 the viewpoint of small crountries like Finland. As Kautonen and Schienstock (1998) and Deleted: 21 Kautonen (2006) have ob served, the Finnish innovation system is national–local in Deleted: 1990 22 character. Basically the Finnish system has a strong central government and local Deleted: ’ 23 government and what couldP be labelled as regional government is, in practice, state Deleted: s, …t…,…the …or …s.e.e. w[8e5ll ] 24 agencies at regional level and inter-municipal co-operation for organizing certain services Deleted: a 25 e 26 and functions beyond municipal borders. Deleted: seem to be …especially ... [86] 27 In regional development studies, tehere has been a tendency to see regional and local Deleted: for example, state, 28 agents acting within an overall frameworrk of national – and later also trans-national – Deleted: - 29 institutions and policies. At least implicitly , this kind of view indicates that local and Deleted: , and we might add that .i.t.s [87] 30 Deleted: , regional agents adapt and design their own strategies within that framework. The brief 31 discussion above suggests that another view oRn “top-down” vs. “bottom-up” discussion Deleted: s 32 may be adopted. As Halkier and Sagan (2005, 2) argue, the twin pitfall of “celebratory Deleted: Therefore we focus her.e. .o [n8 8] 33 e Deleted: 34 bottom-up worship”, on the one hand, and globalist or state-centric writing on sub- Deleted: 35 national phenomena, on the other hand, should be avovided and new approaches to study 36 the richness of actual developments ought to be found. i Deleted: state 37 Deleted: of 38 e Formatted: Font color: Auto 2.1 Framing the concept of multi-level governance 39 Deleted: f 40 w Deleted: “Governance” is concerned with co-operation transcending various borders, takes many 41 Formatted: Heading 2 goals into consideration and consists of constantly evolving combinations of teams 42 Formatted: Ekakpl 43 according to different situations. Governance also recognizes and acknowledges that many O Formatted ... [89] 44 activities have shifted from formal organizing to more informal networking, and therefore Deleted: , 45 network negotiation and co-ordination can be confounded by the political context in which 46 n Formatted ... [90] they are embedded. Governance can thus be defined as self-organizing, inter-organizational 47 l Deleted: s networks that are characterized by interdependence between organizations. Interactions in 48 Formatted ... [91] these networks are game-like, rooted in trust and regulated by the rules of the ygame 49 Deleted: .…. ... [92] 50 negotiated and agreed by network participants (Rhodes 2000, 61). As Hirst has pointed out, Formatted: English (U.K.) 51 complexity and interdependence embedded in modern governance raises two crucial Deleted: , 52 questions: first, “how to create an at least minimally effective division of labour in Formatted ... [93] 53 54 55 4 56 57 58 59 60 http://mc.manuscriptcentral.com/cres Email: [email protected] Formatted ... [94] Regional Studies Page 6 of 77 Formatted ... [95] Deleted: have 1 Formatted ... [96] 2 Deleted: the …especially ... [97] governance, one that will link together a complex of very different bodies that, even in 3 Deleted: combination, cannot be considered to be a ‘political community’”, and second, “how to 4 Formatted ... [98] 5 ensure at the different levels within this division of labour an effective presence of Deleted: …e ... [99] 6 democratic voice – so that the actions of a body at one level do not systematically negate Deleted: , as Bullman (1997) puts it, 7 decisions at another.“ (Hirst 2000, 25) 8 Formatted ... [100] In terms of governance issues in innovation systems, previous research has identified 9 Deleted: given by different types of regional innovation policy ranging from decentralized bottom-up modes 10 Formatted ... [101] of action to centralized top-down modes of co-ordination (Howells 2005). Especially in 11 Deleted: 12 the comparative analyses of regional innovation systems and policies, the concept of multi- Formatted ... [102] 13 level governance has gained ground (Cooke et al., 2000; Cooke et al. 2004), shifting Deleted: towards 14 attention towards the interrelationships between administrative levels in a multi-layered Formatted ... [103] 15 context. This need has arisen due to the nation-state falling under pressures ‘from above’ as Deleted: what Iammarino (2005.). .h a[s1 04] 16 17 well as ‘from Fbelow’ (Bullman 1997). Decentralization and regionalization have been Formatted ... [105] 18 strategic responses from nation-states to these pressures. The need to shift attention is also Deleted: She 19 raised by Hill and Foujita (2003) by showing how cities are embedded in multilevel spatial Formatted ... [106] 20 and institutional configurrations. Deleted: , 21 In spite of the growing interest in multi-level governances, the literature on regional Formatted ... [107] 22 innovation systems has a ‘national-bias’ (Iammarino 2005). Iammarino argues that this bias Deleted: is 23 P has strongly affected the identification of actors, relationships and attributes operating at Formatted ... [108] 24 25 the sub-national scale. Iammarineo further argues that the historical evolution of the Deleted: ,…,…propagate ... [109] 26 regional dimension has rarely been considered and that the complexity, heterogeneity and Formatted ... [110] 27 path dependency of multi-level goveernance in current innovation systems are often Deleted: also …the ... [111] 28 neglected. We fully endorse these views arnd furthermore support the need to also better Formatted ... [112] 29 understand the evolution of relationships w ithin multi-level governance contexts. Nested Deleted: “ 30 Deleted: , cities 31 As a concept, multi-level governance is stillR in a state of becoming. A volume of essays Formatted ... [113] 32 Deleted: as a concept it dedicated to multi-level governance suggests that the concept is useful in organizing 33 e Formatted ... [114] 34 descriptions of interdependent relations between different levels of government, rather Deleted: as well 35 than an analytical concept guiding research (Bache &v Flinders 2004). In many cases, it 36 simply refers to different administrative levels and structuries (local, regional, national and Formatted ... [115] 37 Deleted: in Europe transnational) of policies that are emerging (see e.g. Kitagawa 2005). However, there seems 38 e Deleted: z to be a clear need to analyse more deeply the roles that different levels of administration 39 Formatted ... [116] play in innovation arenas, their interrelationships and vertical co-ordination issues (see e.g. 40 w Deleted: 41 Kaiser & Prange 2004; Kitagawa 2004). There is also a need for greater sensitivity to the Deleted: ,()c 42 temporal dimension of the multi-level governance of science and innovation. In these Formatted ... [117] 43 respects, the concept of co-evolution may prove useful in the future efforts of regional O Deleted: to be 44 development scholars to get a better grasp on the reciprocal and two-way nature of multi- 45 Formatted ... [118] level governance over time. 46 n Deleted: e enough 47 l Formatted ... [119] 48 2.2 Framing the concept of co-evolution Deleted: -- y 49 Deleted: We propose that 50 Drawing on complex evolving systems and emergence (Mittleton-Kelly 2003; Johnson Formatted ... [120] 51 2002), global and national structures can be seen as actually produced by, on the one hand, Deleted: 52 local interaction and by global–national–local/regional interaction on the other hand. Formatted ... [121] 53 Deleted: in 54 55 5 Formatted ... [122] 56 Formatted ... [123] 57 Deleted: ¶ 58 Formatted ... [124] 59 60 ... [125] Formatted ... [126] Formatted ... [127] http://mc.manuscriptcentral.com/cres Email: [email protected] Page 7 of 77 Regional Studies Deleted: many …at the same tim..e. [128] Deleted: but …we argue that ….g..o [ 129] Deleted: more the kind of 1 Deleted: This interplay is ... [130] 2 Hence multiple agents create their environment and adapt to it at the same time. The Formatted ... [131] 3 influence of individual agents is, of course, minor, but if we aim to understand how policy Deleted: we see …taking ... [132] 4 Formatted ... [133] 5 and actual economic development influence each other, we need to study developments as Deleted: time in the respective agents 6 two-way dynamic processes. 7 Conceptually, co-evolution takes place if two or more agents and/or their environments Deleted: is…ing ... [134] 8 Formatted ... [135] influence each other’s selection and/or retention processes and if a series of variations 9 Deleted: , takes place in them. If an agent merely responds to another agent’s presence or activities by 10 Formatted ... [136] adaptation that is not seen as co-evolution, because co-evolution consists of a series of 11 Deleted: in 12 responses and can therefore be seen as a reciprocally induced evolutionary change between Formatted ... [137] 13 two or more agents and their environment over time (Murmann 2003; Lewin & Volberda Deleted: . 14 1999; Sotarauta & Srinivas 2006). Evolutionary theory reasons that the emergence of new Deleted: 2004…; Volberda & L.e.w. i[n1 38] 15 basic varieties of policy is quite hard to predict. Policy makers have often witnessed how 16 Formatted ... [139] new developmeFnt paths cannot be planned and foreseen, but what they have also seen is Deleted: C 17 18 how new developments emerge quite spontaneously and unexpectedly in space (Boschma Formatted ... [140] 19 & Lambooy 1999; osee also Boschma 2004). More often than not, policy makers are Deleted: co-evolutionary approa.c..h ,[ 141] 20 therefore adapters ratherr than optimizers, pursuing a policy of trial-and-error (Metcalfe Deleted: n 21 1994.) For these reasons, e volutionary approaches stress adaptation to changing selection Formatted ... [142] 22 environments, but do not deny the role of human purpose and strategic action as forces Deleted: f the forces affecting re..g.i o[n1a4l 3] 23 P directing the evolution of organizations, regions and nations. The relationship between Formatted ... [144] 24 strategic intention and adaptation is one of the key issues in the co-evolutionary approach, Deleted: a 25 e 26 and thus it may add new insights into our understanding of path dependency as well. Formatted ... [145] 27 Especially important for regional deevelopment is the co-evolutionary notion that micro- Deleted: y 28 agent change leads to macro system evolurtion, i.e. before change at a macro level becomes Formatted ... [146] 29 visible, it has taken place at many micro le vels simultaneously (McKelvey 1999). This is Deleted: many times seen 30 usually the case in regional development; prior to any sign of changes at the regional level, Formatted ... [147] 31 many of the individuals and individual organizaRtions may have gone through major changes Deleted: actually 32 that in time also lead to changes at the regional level (Sotarauta & Srinivas 2006). Formatted ... [148] 33 e Deleted: , 34 We do not intend to discuss the evolutionary approach and the concept of co-evolution 35 in depth here, but it is important to note that the co-evvolutionary view suggests that both Formatted ... [149] 36 the environment and agency are important in the coursei of evolution. When regional Deleted: , and therefore p 37 Formatted ... [150] development issues are approached from a (co)evolutionary point of view, fresh insights 38 e Deleted: - are gained into questions such as how policy co-evolves, as a two-way process, with 39 Formatted ... [151] spontaneous economic development and how various agents and their policies co-evolve 40 w Deleted: more often than not 41 with each other and their environment. Formatted ... [152] 42 Deleted: . They pursue 43 3 Evolving times, evolving policies in Finland 44 O Formatted ... [153] 45 As Lemola (2002) states, there is always an interaction between industrial, economic and Deleted: . 46 n Formatted ... [154] social structure and public policy orientation that influences the structure of innovation 47 l Deleted: es systems and policies. Also theory and policy learning influence each other forming a co- 48 Formatted ... [155] evolving and interactive process (Mytelka & Smith 2002). Although there has been a cyertain 49 Deleted: it does 50 built-in inertia in Finnish policy institutions, they have also adapted to changes in their Formatted ... [156] 51 policy environment by deliberate learning and especially reacted to the experiences of other Deleted: on 52 countries, reinterpreting foreign models and initiatives for Finnish needs. Until the 1990s Formatted ... [157] 53 Deleted: on 54 55 6 Formatted ... [158] 56 Deleted: too 57 Deleted: ¶ ... [159] 58 Formatted ... [160] 59 Formatted ... [161] 60 ... [162] Formatted ... [163] http://mc.manuscriptcentral.com/cres Email: [email protected] Regional Studies Page 8 of 77 1 2 both the acquisition of foreign machinery and equipment by industry and the Deleted: in the …,…on the one hand, 3 ,…on the other hand, …a …ing… 4 implementation of absorbing policies and models created elsewhere played key roles in the process indeed. ... [166] 5 process of technological catch-up (Georghiou et al. 2003). As Georghiou et al. further Deleted: After being a copycat for a long period of time, today the Finnish 6 state, in addition to learning from abroad, Finnish policy-making has also reacted to innovation system is looked upon as a 7 changes in industrial structures both nationally and internationally. model to be learnt from. 8 The basic pillars of technology and science policies were partly built in the 1960s, but Deleted: . 9 Deleted: (2003) mostly in the 1970s and 1980s. In the early days of policy formulation, the goal was to raise 10 Deleted: the the technological level of Finnish industries and to reduce dependence on raw material- 11 Deleted: have …in the home country 12 driven production and exports. The one-sided structure of exports was regarded as a and ... [167] 13 problem. Not being among the richest countries in the world at that time, actual changes in Formatted: Font color: Auto 14 policies occurred step by step and, even if there were some visible changes in policy Formatted: Font: 15 thinking, Finland’s research and development (R&D) expenditure relative to gross Deleted: partly 16 domestic produFct (GDP) was still one of the lowest in the industrialized countries at the Deleted: the 17 end of the 1970s (Hermans et al. 2005, 136). The evolution of Finnish science, innovation Deleted: lift …the …upon …,…still at 18 19 and technology policoies can be divided into three major phases: the end of the 1970s, ….….…the ... [168] 20 • The era of buildingr the basic structures and institutions (from WWII to the 1970s) Deleted: the 21 Formatted: Indent: Left: 17.85 pt, • The era of technology orientation (1980s) Hanging: 17.85 pt, Space After: 6 22 23 • The era of building thPe knowledge-based society and the national innovation system p36t, pBtu +lle Tteadb +a fLteerv:e l5: 41 p+t A+l igInndeedn at ta: t: 24 (1990s) (slightly modified from Lemola 2002 and Georghiou et al. 2003). 54 pt, Tabs: 36 pt, List tab + Not at 54 pt 25 These three phases will next be anealysed from national and local points of view in order to Deleted: ¶ 26 demonstrate the co-evolution of policy in this domain. 27 e Deleted: 2001 28 r Deleted: . 4 The era of building the basic structures and institutions, post WWII – 1970s 29 Deleted: ¶ 30 Formatted: English (U.K.) 31 4.1 National developments R Formatted: Ekakpl 32 Formatted: Heading 2 33 In the 1950s and 1960s, Finnish science and techenology policies were still in their early Deleted: ’…’ ... [169] 34 stages of development. Kivinen et al. (1993) have labelled this period of Finnish higher 35 v Deleted: from the …point of vi.e.w. [170] education as reflecting an ‘academic–traditionalist’ doctrine. University autonomy, elitist 36 i Deleted: -…,…u…was ... [171] education and freedom of research and teaching were emphasized and no expectations 37 Deleted: ,…. ... [172] 38 towards the economic utility of university education or researech were expressed (Nieminen Deleted: At that time the University of 39 2005, 45). Helsinki dominated the higher education and research scene. Two thirds of the 40 In the early 1960s, science and technology policies were instituwtionalized, the aim being university students studied at UH i.n.. 1[915703, ] 41 to improve the conditions for industrial research and developm ent. According to Deleted: ’…s ... [174] 42 Georghiou et al. (2003), the most important changes over the 1960s and 1970s were: 1) Formatted: Font color: Auto 43 policy doctrines were created (the conceptual fundamentals of science and technology Deleted: ir O 44 policy); 2) the establishment of a ministerial committee on science in 1963, the Science Deleted: ’…’ ... [175] 45 46 Policy Council (from 1987 the Science and Technology Policy Councnil), for the Deleted: the … were created ... [176] 47 formulation and co-ordination of science and technology policy guidelines; 3) the lcreation Deleted: , 48 of new mechanisms for the planning, co-ordination and financing of university research Deleted: was established in 1963 y 49 (including the Academy of Finland and new universities); and 4) the development of higher Deleted: , 50 education in general playing a more significant role than previously (Georghiou et al. 2003, Deleted: ,…were created ... [177] 51 58). Deleted: , 52 Deleted: began to …earlier.….... 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