Strategic
Localism & Civic Entrepreneurship
by Jeffrey Roy
A territorial order that could assure the bases of
sound economic and social development in the 21st century must
therefore be built simultaneously and synergetically, from the
bottom-up, in firms and communities...
{Storper 1997, p. 300}
1) Introduction
Strategic Localism is an attempt to capture the essence of a rapidly changing
socio-economy - one in which high-technology localities are important
laboratories for understanding the new and interlinked processes
of competition, learning, and collaboration. The subsequent objective
for all sectors engaged in local development strategies is a form
of integrative governance. We define integrative governance
as an effective alignment of the policy priorities and instruments
of each government (level) with the three types of synergistic
components - Market Linkages, Knowledge Infrastructure and Community
Culture.
At the nucleus of this system is a localized set of socio-economic actors,
rooted and connected by territorial proximity and collective determinants.
Consequently, local government's action is unique, as it emerges
from within these fluid boundaries. Integrative governance creates
a new and very different set of challenges for local government,
as it attempts to maximize the synergistic-based, positive externalities
derived from its interventions within a multi-sector setting.
In the past, interventions would be taken to be connected to industrial
policies, often formulated and delivered via federal actors. Today,
new forms of action are required locally.
Traditional approaches to local economic development emphasized a limited
set of policy instruments linked largely to planning (internal)
and promotion (external). While these elements remain significant
in what Best [1990] first described as the new competition, local
states must also be viewed as catalysts and strategic agents engaged
in new processes with changing, and more complex objectives. To
quote Stoker, "governance, with its bringing together in
partnership of governmental and non-governmental forces, makes
the simple prescriptions of public administration unsustainable"
[Stoker 1998, p. 48].
With respect to new processes, then, local government will be increasingly
engaged in multi-sectoral forums - the result being a heightened
interdependence with industry and civic actors. In this emerging
economic development and governance context, a critical dimension
of government action is the manner in which it both interacts
with other socio-economic sectors, and the degree to which it
prioritizes such interactions. These new processes also imply
a new division of tasks between local actors, as government turns
to networks and partnerships in search of more creative and collaborative
arrangements to achieve local objectives.
The case of civic entrepreneurship is illustrative here. These new types
of associative mechanisms appear to be much more capable than
traditional public sector actors of effectively engaging business,
leveraging private sector resources and commitment, and undertaking
collaborative-based projects. In this scenario, the according
challenge for the local state is to engage and partner with civic
associations in order to ensure that such activities co-evolve
within forums sensitive to both market forces and democratic accountabilities.
The resulting focus illustrates the converging conditions encompassing
local development strategy [Storper 1997], associative democracy
[Cohen and Rogers 1995] and distributed governance [Paquet 1997].
These types of strategies require a redefinition, and expansion of economic
development as a public sector focus. This point is particularly
relevant locally, where despite a growing empowerment of local
systems, and potential enabling roles played by proximity, local
governments have been slow to respond directly with strategies
designed to target synergistic governance and new types of mainly
concerted action.
A key variable is the mind set of many local politicians and officials
for whom economic development often remains associated with traditional processes such as land
zoning, official planning, hard infrastructure, and the like.
While these elements do not disappear in the new type of economic
development emerging from the synergies and interdependencies
of more synergistic forms of governance, they are no longer the
primary sorts of local advantages.
The new and different objectives, though more difficult to articulate in
a precise fashion, bring us closer to the specific policy challenges
of local governments as they formulate both policies and priorities.
The remaining discussion is devoted to building a response from
the preceding analysis, although its relevance extends to any
local example shaped by socio-economic forces tied to local action
and bottom-up solutions.
The key message is that good local governance [should] provide
a capacity for integrative local action [Stoker 1996].
2) Context
Internationally, there is a flourishing literature on industrial systems
and technology strategies from a local perspective. Terms such
as industrial and technology districts, and Local Industrial Systems
(LIS) have been used to denote subnational entities, their patterns
of coordination and learning, and their main determinants of
socio-economic development [Saxenian 1994].
Their rising profile has generated a widening stream of literature that
reviews the experiences of European and North American subnational
localities - where development has been the result of forces increasingly
separate from national systems. Thus, a set of examples, including
but not limited to The Third Italy, The Four-Motors of Europe,
Sophia-Antipolis in France, and Silicon Valley in California become
fertile testing grounds for the localization of technology and
innovation policies, and socio-economic governance [Hilpert 1991].
Their growing importance is a consequence of a broader transformation
of the international political-economy, and the role of the nation-state
- shifts which Ahollow out@ national systems
and empower local ones@ [Jessop 1993, p. 10].
Localities with a high degree of technological innovation and knowledge
activity are at the forefront of socio-economic transformations
due to a number of factors. Such factors include a rapid degree
of innovation and change, and a simultaneous importance of globalizing
organizations and market spaces which, paradoxically, empower
local processes and bottom-up strategy [Jessop 1993; Naisbitt
1994]. The result is an emphasis on subnational units such as
cities and municipalities, and a de-emphasis of national jurisdictions
(and accompanying national industrial strategies from corresponding
governments). These forces underscore the empowerment of local
governance systems, and they raise new questions about the actions
and capacities of state actors within them.
The search for a new symmetry between government - the democratically-accountable
set of decision-making structures and organizations, and a variety
of new forms of multi-sectoral governance - mechanisms
which comprise the formal or informal participation of organizational
actors from more than one sector, represents a key challenge today.
The fluidity of the relationships between sectors today also provides
an important focal point in this study - namely the way in which
the public sector adapts to these new conditions, and the relative
strength of its capacities for policy-making, political leadership,
and partnering.
The separate rules, norms and accountabilities in each sector determine
the separate structures and strategies of public, private and
civic organizations. Today, of course, we continue to witness
an increasing amount of experimentation with initiatives and processes
designed to partner across these sectoral boundaries in search
of new forms of governance - often more multi-sectoral, fluid and
relational - in terms of participants and processes [Paquet 1997].
These interdependencies conjure ecological analogies which are
relevant to the synergistic forms of governance systems examined
in this study. The dynamics of learning and adaptation, central
to the complexities of ecological systems are increasingly used
as an analogy to governance relations between sectors in a knowledge
and technology intensive environment.
Bahrami and Evans [1996] point to processes of flexible recycling and high-technology
entrepreneurship in Silicon Valley - underscoring that in much
the same vein as a natural ecosystem, Silicon Valley's growth
and success can be attributed to the incessant formation of a
multitude of specialized, diverse entities which feed off, support,
and interact with one another. Moore [1996] directly extends the
same analogy to collaborative-based management which he views
as the need for business to manage its interdependencies, balance
competition with cooperation, and forge a set of formal and informal
linkages which comprise its own ecology.
Within both the international contours of a new political-economy and the
confines of governance locally, Saxenian's Local Industrial System
will provide a useful application which integrates much of the
research literatures reviewed in the subsequent chapter. Consistent
with notions of co-evolutionary governance, and shaped by attributes
of a particular collaborative ecology, her conceptualization is
both local and multi-sectoral in attempting to capture the critical
features of decision-making, coordination and adaptation with
a system denoted by spatial boundaries (i.e., Silicon Valley and
Route 128).
This importance of interdependent relations between market-based and non
market-based organizations, particularly those operating in close
proximity, creates an emphasis on partnership. A literature survey
of this field in the mid-1990s confirmed this shift, demonstrating
the evolution of local economic development into a complex mixture
of economic, social, and cultural factors: i) economic
- the development of local resources through numerous innovations
of products, markets, actions, and organizations; ii) social - local partnerships,
negotiation, and the formation of new relationships; and iii)
cultural - initiative and responsibility, citizenship,
creation, innovation, solidarity and self-confidence at both individual
and group levels [Fontan 1993; Fortin 1995]. This third stream
has been the most influential as of late - and is worthy of elaboration.
Collaboration Matters:
As the emphasis on partnerships drives concertation, this latter, cultural
dimension augments the importance of a socio-economic capacity
to collaborate. The mix of competition and cooperation characterizing
the new governance is based on a deeper recognition of interdependence
- between individuals, organizations and sectors. For Putnam,
social capital is a measure of the underlying civic tissue, and
the propensity of people to form organizations that are not based
on kinship, but rather processes of more spontaneous socialibility
[Putnam 1993; Fukuyama 1995].
Putnam and Fukuyama both underscore how culture is at the nexus between
glocalization and community on the one hand, and the central importance
of collaborative ties on the other. The so-called new competition
therefore emerges as a simultaneous set of competitive and cooperative
relations, the latter shaped by cultures of trust [Best 1990;
Sabel 1993; Putnam 1993; Fukuyama 1995]. For Saxenian [1994],
this view of local culture, shaped by both formal and informal
institutions is similar to Moss Kanter's linking of the efficacy
of market-based organizations (firms) and their connectedness
to the surrounding community [1995]. This socialization of competitive
behaviour underscores both the interdependency and connectivity
between individual entrepreneurs, sectoral organizations and local
institutions.
Accordingly, civic entrepreneurs emerge as new and central catalysts, both
in forging alternative (non market, non state) organizations and
shaping local culture in ways that aim to generate civic-based
capacities for collaboration across sectors [Henton and al. 1997].
Foreshadowing somewhat the more recent rise of civic entrepreneurship
in North America, Johannisson distinguished between the autonomous
entrepreneur and the civic entrepreneur. Whereas the former considers
the community as a means to personal goals, the latter concentrates
on the development of community as a primary goal [Johannisson
1986].
Johannisson's territorial strategy is an integrative set of processes and
actors that coalesce around local mobilization. These three, interdependent
sectors are the following: i) the market - and the need for intrapreneurship
within the local context; ii) the state - and the importance of
a decentralized public sector capable of partnering (i.e., shifting
to governance); and iii) society - including the social entrepreneur
and a catalyst for cooperative revival to bring together different
interests from across the community [Johannisson 1986]. This latter
component is the basis of community action and collaborative culture.
The primary resource that the social entrepreneur mobilizes is
non-material - the strength of local identity, and the creativity
of community members. These works provide many elements of the
conceptual foundation for Saxenian's LIS, and the specific role
accorded to local culture.
3) The Strategic Localism Template
In order to help us situate how local government can make a difference
in a dynamic governance context, it is necessary to identify the
synergistic forms driving local systems of multi-sector governance.
The literatures on local and regional systems reveal three potential
forms of a local advantage.
i) Competitive Advantage (Market Linkages)
- Two
of Saxenian's three components are closely aligned with the logic
of an industrial cluster (industrial structure and corporate organization).
Models of industrial competitiveness point to the strength of
market forces within clusters [Porter 1991]. While both competition
and cooperation play roles in economic governance today, Market
Linkages stress the former [Best 1990; D=Cruz and Rugman 1992; Moore 1996].
ii) Innovative Advantage (Knowledge Infrastructure)
- The
role of both knowledge flows and innovation capacities is central
to local governance in a high-technology setting. This infrastructure
includes knowledge-generating institutions such as universities,
colleges, research institutes and laboratories, and various consortia
or partnership arrangements among them. The infrastructure also
includes the local labour pool of human resources and skills,
a critical determinant for technology-intensive industries.
iii) Collaborative Advantage (Community Culture)
- The notion of Community Culture provides a basis for the institutionalization
of shared practises and beliefs that emphasize connectivity and
reciprocity between members. These norms and values underpin collective
capacities for both institutional adaptation and socio-economic
inclusion. Civic entrepreneurs are organizations with a mandate
to build collaborative capacities, particularly in the form of
new and innovative initiatives joining socio-economic sectors.
Strategic Localism - Scope for Public Sector Action
In the template below,
the three synergistic components are identified, along with each
of the three levels of government.
Level
of Government
National Provincial Key Zone
for
Jurisdiction Jurisdiction Local Advantage
(*)
|
national
framework
|
provincial
strategy
|
local
clusters
&
networks
(*)
|
Market
Linkages
|
|
research
infrastructure
|
training
&
education
|
innovation
processes
(*)
|
Knowledge
Infrastructure
|
|
indirect
|
indirect
|
learning
& collaboration
(*)
|
Community
Culture
|
(*)
key area of investigation to both explain new patterns
of local governance
and examine the response by local government (for this
study, we limit our
focus on local government to economic
development functions at the municipal
level - either as internal departments
or separate agencies)
Nurturing Local
Advantages:
In terms of guidling
principles, public sector action must first be mindful of what
it can realistically accomplish in attempting to strengthen the
three synergistic components driving socio-economic development
and local governance - Market Linkages, Knowledge Infrastructure
and Community Culture. At the same time, in undertaking specific
actions local government must also understand how to properly
align itself, and its resources, in a fashion conducive to these
new challenges of integrative governance.
This point means that
public sector agencies must devise strategic actions by leveraging
their own competencies (as well as an understanding of what these
competencies are), as well as those of private and civic partners.
The following guideposts are proposed as the basis for more specific
local government actions - in terms of how the public sector organizes
itself, the manner by which it engages with other socio-economic
partners, and the underlying priorities in pursuing such engagements.
Socio-economic boundaries - Much
like areas such as Silicon Valley and Canada's Technology Triangle,
it is critical to create the basis for governance around socio-economic
realities, overcoming more fragmented political boundaries.
Common and shared
identities - Closely connected to the preceding point, a shared
identity is fundamental for external promotion and recognition,
as well as basis to cultivate coordination and collective action
internally.
Multiple initiatives
and many mechanisms - Synergy-based governance implies (and
embraces) a multiplicity of initiatives, coordinated in a non-centralized
and networked fashion. Coordination supercedes centralization.
Entrepreneurship
is private, public and civic-rooted -The concept transcends
sectoral boundaries, suggesting an openness to input and engagement
from catalysts across public, private and civic sectors.
Focus locally and
leverage abroad - Mindful of the opportunity cost, global
marketing should be largely channelled and leveraged through provincial
and federal programs (with local action and resources inwardly
directed).
The central challenge
to local public authorities is first to adapt to a more synergistic-based
governance environment (i.e., Strategic Localism), and then facilitate
the formation of a multi-sector strategy that builds on these
guiding principles.
Market Linkages
(competitive Advantage):
From both the conceptual
underpinnings of clusters and the evidence in our most recent cases, we know that local government's
role here is indirect. Nonetheless, as every cluster model denotes,
government's role remains pivotal - in setting the stage for the
necessary socio-economic conditions which enable competitive clusters
of firms to thrive.
These broadly defined
conditions are relevant at the federal, provincial and local levels.
Clearly, however, in the latter case, proximity facilitates a
greater opportunity for local state actors to overcome potentially
negative externalities associated with imperfect information,
a lack of trust, inefficient planning and the like. Consequently,
local action within Market Linkages should include the following
points:
a) Interacting
and engaging sectoral networks - this central premise of Porter,
D'Cruz and Rugman, and Saxenian is necessary to foster strong
Market Linkages;
b) Promote (but
not necessarily organize) exchange - public agencies can facilitate
local networking by engaging private and civic partners in common
interests;
c) Communication
- narrowing the knowledge rift between local politicians and officials,
and the private sector is key to facilitate cooperative planning
and learning;
d) Information
- improving socio-economic data and information sources is crucial
to underpinning local decision-making; and
e) Specialization
- the preceding points should be applied to a select group of
established and/or emerging clusters with demonstrated potential.
Knowledge Infrastructure
(innovative advantage):
The growing importance
of human capital and the Knowledge Infrastructure is widely recognized.
Despite provincial and federal jurisdictions, this focus will
occupy a growing segment of local attention, particularly in those
localities well-endowed with centres of research and education.
We can say that if
the scope for local action and public policy is indirect, it
is much less indirect than in the preceding component. The local pool of human skills and ideas
is the critical driver within the new economy - and the need for
local catalysts to raise awareness, convene actors and facilitate
action is acute.
Thus, local strategy
within Knowledge Infrastructure should be based on the following
points:
a) Connectivity
and accessibility - a priority for local agencies must be
greater connectivity and accessibility to new knowledge sources
and learning technologies;
b) Civic and private
partnership - facilitating the preceding point, local government's
convening role and public leadership is key to local partnering;
c) Entrepreneurial
support - public
resources can facilitate a socializing of risk and resources for
better innovation and commercialization capacities;
d) Public exhortation
and leadership - local officials can mobilize awareness regarding
the importance of human capital and innovative advantage;
and
e) Inter-governmental
partnering - mindful of provincial jurisdictions, municipal
officials are critical intermediaries between local actors and
provincial decisions.
Community Culture
(Collaborative Advantage):
If intellectual capital
and the Knowledge Infrastructure are key drivers of the new economy,
Community Culture shapes local capacities to foster civic engagement
and socio-economic trust (and resulting ties across sectors),
key lubricants for enabling dynamic efficiencies. These elements
are likely to grow as distinguishing factors in enabling and sustaining
local capacities.
With a convergence
of proximity and connectivity, local government's relative capacity
(compared to provincial and federal levels) to nurture conditions
for collaboration is central. Thus, while Community Culture is
based on a mix of civic entrepreneurship, private engagement and
public action, government's role can be a positive determinant.
Cooperation between local government bodies themselves is an important
indicator, as is receptivity to civic partners.
Strategies better
able to accommodate private, public and civic networking will
be required to foster the socio-economic ties necessary to underpin
the adaptive capacities of a locality. Collaborative advantage
will therefore be rooted in the following elements:
a) Collective projects
- prioritizing collective action and collaboration is a key cognitive
foundation for synergistic governance;
b)Open and inclusive
processes - within a shared direction, local processes aim
to both encompass a multitude of initiatives and overcome unfamiliarity;
c) Tangible Investments
in civic entrepreneurship - an array of civic mechanisms is
required to mobilize private sector participation and leverage
public resources;
d) Public direction
- government alone cannot create a culture of engagement, though
its action can heighten recognition, importance and acceptance;
and
e) Trust and connectivity
- collaborative capacities require trust which is fostered by
open and inclusive local forums with state, market and civic representation.
4) Observations
and Challenges
A well-crafted role
for local government can prove to be a positive determinant. Efforts
to foster integrative governance, with connectivity between Market
Linkages, Knowledge Infrastructure, and Community Culture must
be based in forums of democratic, market and civic engagement.
Such forums must, in turn, offer the potential for broad participation
and support.
As these urban and
local forums continue to evolve into key venues for choices and
debates on all aspects of socio-economic development, local government's
role will primarily be to mobilize its own resources and competencies,
as well as assist in their alignment with those from other sectors.
Yet, the shift from government to governance, and the balance
between them, must be embraced cautiously, and with a nuance.
The new governance means reconfiguring the state and public sector
action. Within a local environment in transition, the most central
area for public action may be that of collective capacity-building.
The main priority
for guiding public sector action here is that of choosing coordination
before centralization: the corresponding policy issues then focus
on the types of associational partnerships and their purpose in
undertaking them. The logic here is that the most strategic action
of public sector actors locally should be to devise processes
and forums that leverage the energies and resources of other sectors
in collective mechanisms.
Public resources and
public direction are key factors in shaping the complex and multi-sector
governance patterns emerging today. The opportunities and constraints
of this assertion must be recognized. The prospective opportunity
is to develop local capacities that matter: the recommendations
to attempt to measure and benchmark performance, even in those
areas deemed intangible, are a case in point. At the same time,
such capacities must proceed in a manner that respects the premise
that local governments can devise ways to be accepting of both
interactive and interdependent relations with other sectors -
much more so than is the case with higher-order government levels.
To become effective
capacity-builders, public sector agencies must begin from such
a starting point, and look to foster means to strengthen local
components of governance where attention is most warranted. As
a key example, our findings point to various elements of Community
Culture where the values, identities and forums across different
sectors must be joined by both common purpose and collective action.
While this cultural
notion often remains intangible (like so much of what is valued
in the new economy) localities will be increasingly forced to
understand these new variables and demonstrate their importance
through operational measures or indices. The growing sustainable
city movement, across Europe and North America, and similar initiatives
closer to home, present a case in point.
A complementary perspective
comes from broader considerations of what is deemed to be the
quality of life factor in a locality which emphasizes not only traditional indicators of
industrial output, but also a broader discussion and assessment
of what it means to achieve and preserve local prosperity. The
glocalization parameters around this investigation suggest that
this type of discussion is increasingly relevant to local governance.
Moreover, public sector agents at that
level must play instrumental roles in designing discursive forums.
Through ongoing dialogues the issues associated with competition,
innovation and collaboration may be translated into a strategy
for local development that wrestles openly with the need for a
new mix of market promotion, civic engagement, and public accountability.
Public direction and support can play a key (but not exclusive)
role, as can the leveraging of such support with civic entrepreneurs
who, in turn, provide a potentially useful mechanism to foster
linkages to business. While statistics and benchmarks and other
metrics may well prove rough gauges of what are, at the very least,
partially intangible performance features, there is also truth
to the managerial mind set that what gets measured - gets managed.
The purpose of evaluative
mechanisms and local scorecards on these fronts is to provide
clearer parameters to widen and guide the set of issues under
consideration and review. Such forms of local initiative underline
the need for empowered civic partnerships, as a basis to create
non-governmental mechanisms likely to be more flexible and apt
to experimentation, and better connect them with the private sector
in collective projects.
In terms of division
of tasks, local government might view its role as broadly directive
and educational. Civic actors (perhaps assisted at the outset
by limited public resources) could then assume delivery functions
in a synergistic sense. In the case of Community Culture, this
approach would see public leaders prioritizing collaboration and
a better understanding of its importance. Accordingly, strategically
sponsored civic partners could undertake local programs aimed
at inter-sectoral partnerships - leveraging private resources
to do so.
There is also a close
relationship between the existence of collective capacities and
other components of local governance. Public resources and direction
are key determinants of local performance through the positive
externalities produced from synergistic interactions translating
into concrete programs and initiatives. A necessary strategy for
the public sector is to find progressive ways to design new governance
mechanisms that leverage private resources and civic energies
in collaborative efforts which further the collective interest.
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This point re-invokes the work and message
of Marcel Cote in the 1980s (Part I). For him, Growing the
Next Silicon Valley, rather than implying that all localities will produce computer electronics
and software, makes the point that local entrepreneurship, innovation,
and governance are common and necessary challenges to all.
This template is adapted
from the initial version developed jointly as part of a collaborative
research project with MITEL Corporation [Roy and Wilson 1996/1997].
This point may not
be clear cut, as there is a tension between specialization on
the one hand, and diversity on the other. These tensions will
be discussed, and the two views might best be viewed as end-points
along a continuum where the challenge is to strike a workable
and progressive balance.
A variety of local initiatives, like those
in Silicon Valley and Route 128 are emerging in cities such
as Seattle and Calgary to gauge quality of life and overall
collective performance. In Ontario, the Social Planning Network
engaged a variety of local partners to produce similar report
cards on the quality of life of localities across the
province. There remains, however, a real distinction between
their focus and the efforts to measure distributive trends linked
specifically to industry composition, and a technology emphasis
in particular. When one is present without the other, obviously
the critical next step is to link the two and integrate the
result within local development strategies that must be multi-sector.
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