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Social Innovation in Local Economic Development Strategies by Frank Moulaert and Jean Cedri Delvainquire

1. Introduction

Both in the America's and Western Europe, local economic development has been one of the major research themes in spatial analysis of the last decade (Moulaert and Demaziere, 194; Wilson, 194; Ganne, 1990). However, most of the literature is of the descriptive or the policy oriented type, while devoting little attention to the analysis of local economic development models.

Exceptions to this general trend are many of the contributions on industrial districts, on high technology areas (parks, districts, complexes) and on urban development based on the promotion of advanced producer services complexes (Pyke and Sengenberger, 192; Moulaert, Bruyelle et al., 1993).

However, as we pointed out in previous publications, these models do not take into account the socio-cultural specificity of restructuring localities. They blur the specificity of their socio-economic history and, therefore, are not an acceptable basis for the formulation of development strategies for so called socio-economically disintegrated regions or localities.

The notion of socio-economic disintegration refers to regions, localities or sections of localities which have missed opportunities for economic development in agriculture, manufacturing or service industries and, therefore, have become disintegrated in several respects. Without wanting to generalise, one can qualify disintegrating localities as localities whose socio-economic structure has fallen apart: the spatial cohesiveness as one can find it in an industrial district or an artisan production system is not existing in these localities. As a consequence, the socio-cultural and the political relationships are shaken as well and the strategies to turn these developments around are far from evident.

There is a real danger in the literature to define development strategies for disintegrating areas in similar terms as for areas which have experienced relatively successful socio-economic pathways over the last thirty years. In brief, such an approach consists of three steps: (i) expressing prosperous development experiences in terms of their basic mechanisms; (ii) translating decline in terms of the asymmetrical version of the prosperity generating mechanisms; (iii) proposing development strategies by putting together measures erasing the mechanisms of degradation (Moulaert 1994).

This symmetrical approach to problem solution does not work: mechanisms of decline are not just the opposite of mechanisms of growth. Once the former unroll, they generate vicious circles which can only be stopped and reversed after a detailed eamination of the specific socio-economic, socio-cultural and socio- political history of the localities at stake. When effectuating such a detailed analysis by use of the disintegrated locality model, for most regions and localities in decline, one comes to the conclusion that strategies for redevelopment must be formulated in more appropriate terms.

2. Alternative views on local socio economic development strategies

The purpose of this paper is not to lead a long discussion on new views on local socio-economic development. What I want to stress here is the broadening of the notion of innovation in economics in general, socio-economic development strategies in particular. Of course, a new view of innovation is only one ingredient - be it an important one - of an alternative approach to socio-economic development. Other ingredients are: the reorganisation of the local governance system: the collaboration between the private and public sector: new forms of networking between economic, social and political agents - identification of the socio-cultural heritage of the localities (Moulaert and Delvainquiere, 1994). Of course, the new approach to the concept of innovation which we support here, is not unambiguous: depending on the broadness of the concept, institutional and political innovation will be included in the concept or not (see Moulaert et al. 1993, 1994).

To think about suitable local development strategies for disintegrated localities, it is necessary to adopt a broader view of innovation. In the traditional view of innovation, it is the social structure that adapts to technology, makes it more or less easily adopted by the socio-economic system, and plays a determinant role in its integration in the organisation using it. This means innovation does not come from society nor its institutions, but from the technologies they adopt. The social and institutional factors remain subordinate to the technological factor...This perspective puts fundamental technologies at the basis of the technological paradigm and refers the socio-institutional one to an auxiliary role (Moulaert et al., 1993; Djella at al., 1993).

An alternative view of innovation considers technological innovation as part of a broader notion of socio-economic innovation which would have several dimensions: social, technological, institutional, cultural and political....From this perspective, it is possible to understand why and how specific communities have been unable to keep on developing along with the new technologies. Such a view also allows for the consideration of different possible social and spatial ways of integration of new technologies, as well as for the understanding of other types of innovation, besides technological innovation.

The socio-cultural but also socio-political dynamics inherited from the history and development process of the locality, reproduce local behaviour and socialisation patterns. These are related to the history of local economic sectors, including agriculture and crafts activities in addition to manufacturing and service industries. The relative equilibrium between formal and informal organisations of production as well as the level of development of family based activities are specific elements of the dynamics of the local socio-cultural reality of the locality.

Models of development and strategies that would not take into account these features would have a hard time to work. When, for example, traditional manufacturing development trajectories were suddenly broken in localities where they had persisted for decades, a complete socio-political disintegration which paralysed local potentials of redevelopment occurred. The reconstitution of socio-political dynamics, then, can very well develop around issue movements, mobilising a variety of local groups. These movements focus usually on limited and specific issues, such as housing, or ecological concerns, but can also progressively turn to broader socio-economic concerns.

More social and culturally inspired views of innovation are more feasible to connect economic development strategy to social policy. Innovation dynamics can also be defined by taking into account the specific social dynamics of a locality. When thinking in terms of social innovation instead of technical innovation, one can also reason in terms of mobilising the particular assets, how specific or even modest they may be, existing within different types of cultural heritage may have a strong development and mobilisation potential.

The definition of local development strategies is then no longer an issue of adaptation of the local community and its environment to the requirements of pre-set and most of the times technology driven development processes, of new developing activities or the modernisation of the global economy, but it is a matter of a co-determination of the activities as well as the technologies they will use, that fit the characteristics of the area and of the people living there. In fact, society, local as it is, does not innovate just through integrating the new emerging technologies, but by social, organisational, institutional, cultural and political combined with technological innovation.

3. A provisional typology of social innovation in develoment strategies

The following provisional typology of social innovation in local development strategies is drawn from a detailed research on local development in 30 localities of the European Union. This typology is presented by use of examples.

A - Actions in favour of and based on the mobilisation of the local people and the

building up of a local "conscience"

In Almeida, besides direct help to people involved in extreme cases of poverty, the Poverty III action of the EEC/ DGV / C / 1 promotes development in an attempt to "prevent" the "manifestation" of poverty. It supports the creation of convalesce homes for the elderly and of kindergartens for children in pre-school age. This requires identification of the areas for "policy intervention". Such an approach may secure a more effective action, but also create a new local attitude towards participation and community involvement. There has also been the revitalisation of local associations at the village level through supporting their activities and helping them build a house to accommodate their 'office'. These associations have gradually widened their scope of intervention, from a recreational and more cultural focus to more social and economic concerns. There are now clear signs of unsuspected collective social energy.

B - Actions in favour of stronger links between economic strategies and social policies

In BARAKAIDO, as far as the "Strategic Plan for the Revitalisation of the Metropolitan Bilbao" is concerned, there is the recognition that the development strategy in the area must be "integral". This means, in particular, that interventions must not only deal with economic issues, but with cultural, social, etc. issues as well. In fact, any strategy must take into account the most important elements of the environment in which the local community "lives". In Barakaldo, taking into account the environment, means to include health or physical town planning concerns for instance, in any plan or action for the locality. These are concrete elements of importance in a polluted, overcrowded area, where many people suffer from professional diseases inherited from their active life.

In ANTWERP, people from B.O.M. (Association for the Development of the District of the North-East Antwerp) found access to a number of local institutions. They are now involved in projects which may significantly affect development strategies under way in the urban region. At the initiative of the Chamber of Commerce, a strategic plan has recently been defined. This strategic plan adds new objectives to traditional ones (communication towards foreign firms), like the access of the least privileged groups to employment. In the context, B.O.M. has delegated its project evaluator, Mrs. Chris Vanherpe, to the Chamber of Commerce. Several projects have already been set up. One example is "Interface" promoting collaborations between social organisations and employers' organisations...

C - Vocational training adapted to the needs and to the possibilities of the population

This action model occurs most frequently in our sample. The vocational training that has developed in some localities is adapted to the needs of the local population for two reasons at least. First, it is related to the availability of local jobs that people can realistically take after having completed the courses. Secondly, these courses take into account the qualification of the local people.

In MONTES DE ACA (Burgos), two "collaboration centres" offer secretarial courses with the use of computers for administrative purposes and "confection pattern makers" courses, directed to the well-developed local textile industry. One of the centres in Montes de Oca has begun a course on the maintenance of agricultural machinery. Two workshop schools have been established aiming at the professional skilling of youngsters, by a training formula which alternates with work for the rehabilitation of monumental, historical or natural heritage with the retrieval of art and craft profession. (1)

In HAMBURG, the "Johann Daniel Lawaetz Foundation" has been created in 1986 by the Senate in order to combine job-creation with urban-development. It is the most important link between private organisations and the city of Hamburg. It is engaged in several projects of reconstruction of buildings. In 1989, Hamburg obtained resources of the European Social Fund (ESF) for the establishment of three projects: one of the them is "FOCUS", an advertising project in favour of private initiatives, responsible especially for younger people in different urban neighbourhoods. The two others are "AQUA" (Arbeit und Qualifizierung), a consulting project in favour of the "socio-professionals", and "KIK" (Kontakt, Information and Kooperation), an advertising project in favour of the unemployed.

In NORTH-EAST-ANTWERP again, the B.O.M. sets up specific projects to revitalise the local economy. Partnerships with national or multinational firms have already been established: they provide financial support, or delegate an expert, or may be willing to subcontract unskilled work. In 1991, ATec, a training centre to acquire new technologies, has been established. The centre has eight employees, and provides two training programmes for unemployment and low-skilled people. In the past, ATec had done subcontracting work for two telecommunication firms, which gave the opportunity to some women trying to re-enter the labour market, to combine training in telematics with a part-time job. There is also open access for children of the neighbourhood in the evenings and during holidays. ATec is now collaborating with youth organisations. It also trains volunteers from neighbourhood associations in the use of software.

D - Actions developing specific activities, answering to local needs, with potential new jobs for local people

To meet the needs of old people, in MONTES DE OCA, a service of home aid is created. In order to give a qualification to the women who would work for this service, a training programme was proposed: a home-aid course as well as a mental-care course have started. Nursing and first aid courses have also begun. To avoid that some business outside the area begins to assume the responsibility of the delivery of this service, local actors have thought of creating a co-operative, involving local workers. A new course has already been designed that would help these workers in the creation of this co-operative and in its future management.

In HAMBURG, at the request of the Senate, the enterprise "Arbeit und Lernen Hamburg GmbH" was created in 1984 by the unions and the AWO (Arbeiterwohlfahrt, a workers' association), in order to employ disintegrated, untrained and elderly workers in the construction sector. Former workers from shut-down shipyards obtained new jobs in projects with an ecological touch in "oekologische Technik e.V."

These two institutions are co-operating training partners of ZEBRA (Zentrum zur Beruflichen Qualifizierung, Centre of professional qualification), that was founded in 1987 by the BAGS (the authority responsible for education, youth and professional qualification), as a central Hamburgian institution to train disintegrated people, even give them a general education. In particular, ZEBRA takes care of education and job training of never-employed or long term unemployed sent to the centre (ZEBRA) by two public companies: "Hamburger Arbeit" (HAB) and "Hamburg West GmbH" (hwb) which were funded by the state of Hamburg (in 1983) as employment companies. These companies are meant to solve problems of discriminated groups in the population by guiding the people to the labour market, out of poverty and isolation.

In DORTMUND, in 1985, the Co-operation centre of local unions and the University have initiated the "Entwicklungszentrum Dortmund" (Development Centre Dortmund). It is an association of unions, city administration, personnel managers of Hoesch and others. The activities are aimed at a combination of environmentally and socially useful employment creations. The centre received working space from Hoesch and financial support from the city. It has developed programs with resources from the Employment creation fund of the Federal labour office. Since 1984 North Rhine Westphalia has established a program for job creation for unemployed welfare recipients (long term unemployed). With the use of financial funds granted by both the Land and the city, 2,000 jobs have been created in Dortmund. These jobs are mainly unskilled jobs in welfare associations.

The B.O.M. in NORTH-EAST-ANTWERP, has also assisted with the setting-up of a business centre aiming at providing craftsmanship with premises and services (accounting, marketing, etc.) at a low price. It also contributed to the establishment of a firm which would deliver specific services to big firms, while hiring low skilled people.

4. Concluding remarks

These four types of action were found in several localities of our sample. But we still need a more systematic approach, in order to examine the relationship that can exist between these actions and socio- cultural and socio-political contexts. These actions already constitute visible attempts in favour of a better integration between economically and socially inspired strategies. They constitute the type of action that would avoid the trap of pursuing strictly economically oriented and new technology based policies, which are often completely unrealistic for the redevelopment of localities in disintegration.

5. Footnote

1. The similar objective can be found in Sykies, in Greece: to promote traditional activities, a cultural centre is being built, to work as a centre for the promotion of handicraft professions (marble workers, stone workers etc.)

6. Bibliography

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