Subsidiarity, Proximity, and Innovation

Abstract

The importance of developing regional innovation is prominent in the policy discourse throughout the European Union. Increasingly, how-ever, the notion of innovation that is used is too narrow: with a focus on R&D, high-technology manufacturing, and the commercialization of science (Christopherson et al., 2008). These are important parts of the innovation system but they are not a complete picture and often exclude wider forms of innovation. A more complete picture of innovation in a knowledge-based regional economy would include the development of innovative products and processes; innovation in business practices; innovation outside of the manufacturing sector including knowledge-intensive business services and the public and third (nonprofit) sectors; and the important role of universities and hospitals as regional economic actors and sources of knowledge. This broader notion of “total innovation” puts an emphasis on networks, cooperation, people interactions, and local governance. This indicates that Lombardy is well placed to increase its innovation performance building on its history of cooperation and local governance as portrayed and emphasized by subsidiarity. The future challenges are to extend and build new networks and to document and analyze the extent of “total innovation” in the region.