ABSTRACT
This chapter contains an exploration of a particular dimension of territorial competitiveness and firms’ performance, i.e. the governance structure of local production systems. Governance is addressed on a threefold basis. Under which circumstances does governance structure make the territorial system perform better? What is the role of government within a territorial-specific governance structure? To what extent is the “institutionalisation” of loose mechanisms of interaction appropriate? The answers offered follow a four step articulation: (i) a distinction is made between local government and governance, the first being an “ingredient” of the latter, in order to reinforce and motivate the role of governance within the “active space” approach; (ii) we reflect briefly on the multidimensional space of application of the concept of governance; (iii) the role of “local” governance in “global” competition is highlighted; and, finally (iv) a research agenda is presented on the theme considered as a fundamental building block of territorial competitiveness and sustainable development of spatial aggregates of actors.
