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Overcoming simplistic „urban vs. rural“ and „social vs. economic innovation distinctions Frank Waeltring Parallel Session 2.1: Cluster Models Worldwide. Unique Features, Co Challenges

TCI 2015 Overcoming simplistic „urban vs. rural“ and „social vs. economic innovation distinction

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Page 1: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Overcoming simplistic „urban vs. rural“ and

„social vs. economic innovation distinctions

Frank Waeltring

Parallel Session 2.1: Cluster Models Worldwide. Unique Features, Common Challenges

Page 2: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Promoting competitive territorial Living Spaces

Overcoming simplistic „urban vs. rural“ and

„social vs. economic innovation distinctions

18th TCI Conference in Daegu, 3.-6. Nov. 2015

Frank Waeltring, www.mesopartner.com

Page 3: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

❖ MY KEY MESSAGE:

❖ There is a Risk of taking a too strong cluster and agglomeration approach when we want to promote innovative living spaces!

Macro policies

Micro world

Meso.Inst.Territorial change

Page 4: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

The Rural-Urban Differentiation

❖ Classification by the OECD

❖ five types of regions: ❖ Predominantly Urban (PU),

❖ Intermediate Close to a city (INC)

❖ World Bank (2009)

❖ A classification of spaces

❖ Intermediate Remote (INR)

❖ Predominantly Rural Close to a city (PRC)

❖ Predominantly Rural Remote (PRR).

❖ Place neutral vs. place-based international approach discussion❖ agglomeration advantages of cities vs. space matters/local unique

advantages /„creative space making“

Page 5: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Rural-Urban Divide in Europe

❖ Europe

❖ Still high difference between rather urban or rural based population in Europe

❖ Trend in all countries towards urbanization

❖ Population increase in large cities, population loss in medium-sizedtowns

❖ bridging function of medium-sized towns to rural areas gets weaker

❖ Economic development efforts incluster promotion focuses more on vibrant agglomeration centers

Page 6: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Rural-Urban Divide in Germany

❖ Germany❖ Large cities grew around

2,8% between 2008 and 2013

❖ In medium-sized towns population decreases

❖ Even stronger population decrease in rural areas

Page 7: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Vicious circle of medium-sized cities and rural areas

❖ Loss of employment opportunities (employment rate)

❖ Migration (nr. of working population) ❖ Less local purchasing power

(income) ❖ Less demand for local products (turn

over of local businesses) ❖ Loss of tax incomes (budget revenues) ❖ Loss of welfare of community ❖ Increase of running costs

(infrastructure, health, supporting institutions)

❖ further closing of shops and businesses

Page 8: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Innovative strategies ❖ „Smart city“, Smart region“,

„Future region“ etc. ❖ a region as a living space with

its unique diverse advantages

❖ rural and urban areas as one competitive space that requires the promotion of different kinds of innovation

❖ search for inclusive strategies for rural and urban sustainable economic development

❖ requirement to combine economic and social innovation promotion

Page 9: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Stereotype example from Germany

❖ 3 medium-sized towns joint forces in structural change process

❖ challenges & potentials: ❖ closing of mine, atom-power station,

military base, automobile sector ❖ potentials: tourism, mobility,

decentralized energy system, conversion, creation of technology region

❖ Cooperation beyond administrative boundaries

middle centre

(e.g. Rheine)

middle centre

(e.g. Lingen etc. )

middle centre (e.g.

Ibbenbüren etc. )

Page 10: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

The success in creating new innovation space will depend on the city’s ability to follow a dynamic dual- innovation strategy by creating a highly attractive

living and innovation space

Dual = rural

and urban areas

as one space

Page 11: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Weaknesses of current perspectives

middle centre

(e.g. Rheine)

middle centre

(e.g. Lingen etc. )

middle centre (e.g.

Ibbenbüren etc. )

Focus on burning issues, mainly conversion and

infrastructure, not innovation

Lack of a clear living space orientation with different

priorities

Lack of involvement of their rural environment as factors of attractiveness and innovation

Joint but isolated approach

Page 12: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Sociallens

Econo-miclens

Environ-ment.lens

Page 13: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Examples of living space combinations

Cooperation between medium

town cities

Application of innovations in rural areas

Economic development

Green/social development

Strengthening of a local/regional innovation system with stronger SME

orientation and start-up activities

Innovative competence networks e.g. in climate-

friendly technologies, construction etc.

City Innovation Labs

energy-friendly renovation of suburbs and villages

New service delivery modelse.g. in the health sector

Organizational development promotion for NGOs, social and

business organizations to increase efficiency and innovation

orientation

Promotion of creative industry settlement in rural areas

Knowledge transfer between innovative and less-innovative enterprises in the countryside

Promotion of creative freelancers e.g. with Co-working spaces, matching platforms innovation and info centers

Increase education in the countryside through e.g. village academies, mobile laboratory spaces, life-long learning for entrepreneurs & employees

Coaching initiatives to assure basic services like small shopping

cooperatives in villages, to restructure social organizations and social clubs

Mobility projects (e.g. car sharing, e-buses, self-sufficient villages, mobile health centers

Promotion of new business models (e.g. in ecological agricultural

production, sustainable tourism, creative industries etc.)

Rural Impact Labs

Page 14: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

My key message

❖ „Promotion of creative economies and spaces require new lenses (beyond the agglomeration lens) “

❖ Consideration of a living space approach increases potential to combine innovation potentials

❖ Learnings between cities and rural areas can be very rich and provide us with new perspectives and increase of sustainable competitiveness

Page 15: TCI 2015 Overcoming simplistic  „urban vs. rural“ and  „social vs. economic  innovation  distinction

Thank you for your attention !

❖ Frank Waeltring, [email protected], www.mesopartner.com