Small firm innovation networks in the Valencia region

Abstract

This article makes a contribution to the study of the role of regional authorities in the process of regional development by analyzing the case of the Valencia region, a Spanish peripheral region whose economic success was historically dependent upon the maintenance of low labour costs in traditional artisan manufacturing activities. This led to an extreme focus on products of poor quality. In order to overcome this situation, Valencian regional authorities have launched an important number of policies that aim at solving two of the most important weaknesses of the regions: the high dependence on a few manufacturing activities, and the lack of a technology policy that could help to enhance the quality of the Valencian products. The analysis of the measures adopted by the regional authorities in the region of Valencia is expected to be of interest for other peripheral regions characterized by a similar situation—i.e. a traditional lack of interest in technology and innovation.