ABSTRACT

Like South-West Wales and the eastern Ruhrgebiet, the Basque Country is an old industrial region that has been struggling for decades to find a new economic role. Moreover, like the Ruhr area, the Basque Country is a European region with a high institutional density and long-standing tradition of innovation policies. This has turned the region into a laboratory for examining in detail the evolution of regional innovation policies. Where the region differs from the case studies in the previous chapter is the political dimension. In many respects, the Basque Country has a governance system typical for southern Europe. The regional state intervenes in a top-down way, only allowing for selective participation from businesses and civil groups. Institutional links and policy processes are highly politicised. That is, they are strongly informed by the particular interests and power positions of parties and individuals involved. However, this particular political culture does not prevent many policy initiatives from having a strong impact on the regional development process. Despite some radical shifts in the political complexion of the regional government, the Basque Country has been able to develop a potent technology infrastructure and powerful planning machinery that perhaps serve as an example for other European countries and beyond. Within Europe, the Basque Country presents a meeting point for researchers and policy-makers on regional innovation that appears to matched only by some German and Italian regions. Even the most critical observers of this region cannot ignore the region’s appeal in this respect.