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Suvi Konsti-Laakso, Satu Pekkarinen and Helinä Melkas

In this chapter, living labs are perceived as open networks through which new innovations can be developed. The study deals with innovation in the public sector and examines renewal of well-being services for citizens in a regional context, such as establishment of a social enterprise for mental and addiction rehabilitees; use of a service robot in public elderly care; new ways for dentists to increase participation of teenagers in dental care. Using a multiple case study design, a cross-section of 14 living lab initiatives in Lahti (Finland) is analysed and the outcomes presented. Four different outcome categories are identified and analysed: access, windows, new solutions and new capabilities. Specific attention is given to outcomes for utilisers. Furthermore, the results contribute to an improved understanding of regional living lab activities and key conditions for their success, as well as the success of public sector health services, often as an institutional innovation.

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A. Suut Doğruel, Fatma Doğruel and Yasemin Özerkek

Permanent duality across regions characterizes the regional disparities in Turkey. This duality exists in all dimensions of development, including the persistent unemployment problem. Throughout the last decade high unemployment rates were observed in all regions of the country. Focusing on unemployment in Turkey, the aim of the chapter is twofold. First, the chapter intends to capture the main determinants of the regional unemployment. To this end we define an excess supply function to estimate the determinants of regional unemployment combining the supply of and demand for labor. Second, the chapter scrutinizes the effects of external shocks on the regional variations in economic performance in Turkey. Regional unemployment and regional growth are defined as the basic economic performance indicators. For the first aim, migration is taken as the main source of the variations in the regional labor supply. On the demand side, we focus on the structural changes. The study defines two types of changes in the structure at the regional level: (1) The changes in the sectoral composition á la Kuznets; and (2) The Lilien index, which represents the dispersion in (or reallocation within) the sectors. For the second aim, we define two exogenous shocks: the 2008 crisis and the migration issue at the regional level. The 2008 crisis has a global character without any local dimension. Hence, its effects could be defined as completely exogenous. Migration can be affected partly by the regional factors. Therefore, we may assume that this shock is partially exogenous. In this part, the chapter will define the regions as flexible or rigid against these shocks. The results reveal that the adjustment potential to external shocks may be higher in the regions which have relatively simple economic structure.

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Patrizio Bianchi and Sandrine Labory

Chapter 2 examines the previous industrial revolutions, showing not only the important technological innovations introduced in each of them but also the deep impact they have on the society and culture. The main reason is that industrial revolutions are primarily transitions in prevailing production processes, or manufacturing regimes. Industrial revolutions are very complex phenomena and this has to be taken into account in the analysis of the fourth industrial revolution and its policy implications. Particular attention is paid to the deep changes in educational systems associated with industrial revolutions, as this might be a lesson in policy for the current – fourth – industrial revolution.

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Patrizio Bianchi and Sandrine Labory

Chapter 3 analyses the fourth industrial revolution: what technological innovations are involved, to what extent the speed of change in this revolution is faster than in previous revolutions, the impact on manufacturing systems and the position and efforts of different countries in this deep transformation. An important characteristic of this revolution is that data seems to be the raw material of this new development phase. Digitalisation and hyperconnection are thus key transforming strategic elements of socio-economic systems, and industry in particular. A new manufacturing regime seems to be emerging, after mass production and flexible production of the second and third revolutions respectively, namely mass customisation.

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Edited by Urban Gråsjö, Charlie Karlsson and Iréne Bernhard

Developed countries must be incredibly innovative to secure incomes and welfare so that they may successfully compete against international rivals. This book focuses on two specific but interrelated aspects of innovation by incumbent firms and entrepreneurs, the role of geography and of open innovation.
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Stephan Diek, Marina van Geenhuizen and Bart van Hulst

The chapter introduces a novel financial arrangement in healthcare services: Health Impact Bonds (HIBs). Transition aims at making healthcare services not only more affordable but also more efficient, the reason why HIBs focus on the performance (output) side of services (pay-for-success contract). The chapter describes the urgency and challenges in moving towards illness prevention, on the system (healthcare) and project levels. Next, it is explored how HIBs can improve situations of care investment that does not (fully) precipitate at the investor while preventing the rise of new problematic situations. Accordingly, a preliminary list of conditions is designed for the alignment of HIBs. Overall, it seems that HIBs provide substantial solutions by combining new contracts on paying-for-success in performance and a shared savings contract, although some questions remain regarding the involvement of investors. The concluding section includes a reflection on city involvement in HIBs.

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Industrial Policy for the Manufacturing Revolution

Perspectives on Digital Globalisation

Patrizio Bianchi and Sandrine Labory

This book offers a critical reflection on the meaning and expected impact of the fourth industrial revolution, and its implications for industrial policy. Industrial revolutions are considered not only in terms of technological progress, but also in the context of the changing relationship between market and production dynamics, and the social and political conditions enabling the development of new technologies. Industrial Policy for the Manufacturing Revolution aims to increase our capacity to anticipate and adapt to the forthcoming structural changes. A concrete illustration of this industrial policy is provided through an experience of its implementation at regional level.
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Valeria Szitasiova, Miroslav Sipikal and Monika Siserova

Regional prosperity depends on several factors while resilience appears as one of the most important determinants in recent decades. It is thus an ability to adapt to the threats and challenges that economic development brings. Such a threat was also the crisis manifested in the last years of the last decade. An extensive amount of analyses deals with the ability of regions to respond to these changes or to adapt to new trends. A significant part of the current literature addresses the role of innovation, which is seen as a key factor of economic development starting with Schumpeter’s theory to the current role of Smart Specialization. The present chapter deals with resilience in the context of innovation activity in regions of the Slovak Republic. As innovations in Slovakia are by a critical mass supported from the resources of the European Union, this work analyses the innovation support in terms of resilience on coming trends of economic development.

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Ana Santos Bravo

This chapter analyses the role of the creation and transfer of technology in the pharmaceutical industry and its role for regional competitiveness. Our case study focuses on the firms located in Oeiras, particularly the bio-pharmaceutical cluster, which gathers some of the most representative firms in terms of investment in R & D in Portugal. Therefore, this study focuses on the role of two of the factors that have influenced regional competitiveness in Portugal: clusters and knowledge/technology transfer.

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Patrizio Bianchi and Sandrine Labory

This introductory chapter to the book reviews global trends in markets, focusing on globalisation and digitalisation. It is argued that the global economy seems to have entered a new phase after the financial crisis, whereby flows of goods no longer exponentially rise while data flows boom. This new phase can therefore be called ‘digital globalisation’, spurred by the fourth industrial revolution, the meaning and implications this book aims at analysing, especially regarding industry and industrial policy.