Research Bulletin 21: innovation through public procurement?

Fostering Regional Development and Innovation: agency, institutions and intermediation

with Luís Carvalho (MARKINO)

Research in a Tweet: Peripheral regions can overcome traditional challenges to innovation and diversification by reconfiguring existing resources and adapting institutional frameworks. Public procurement practices can foster not only novel solutions to urban challenges but also institutional changes that facilitate innovation..

How do we harness the latent innovative potential of various locales to address their unique challenges? Luís Carvalho’s (MARKINO) research provides enlightening perspectives on this question, revealing the critical role of strategic collaboration, resource reconfiguration, institutional adaptation, and public procurement in driving innovation and development.


In an article with Mário Vale (ULisbon), Luís challenges the conventional wisdom within Economic Geography that looks at peripheral regions as backwaters of innovation. Focusing on the successful rise of the biotechnology sector in Portugal’s Centro region, Luís exemplifies how local actors can surmount inherent challenges by creatively leveraging existing assets and aligning strategic initiatives. Examples of this ‘bricolage’ in action include establishing Biocant Park, which pooled academic and research resources to form a biotech hub, or creating alliances between biotech firms, academia, and industry to facilitate resource sharing and knowledge transfer.


In conjunction with this, the successful emergence of the biotech sector was facilitated by borrowing and adapting institutional frameworks from related fields, such as engineering and IT, which were already embedded within the region. The transposition of established organizational models, technology transfer practices, and incubation strategies to the nascent biotech industry helped the region surmount the typical barriers peripheral areas face.


In another noteworthy contribution, this time with Willem van Winden (Amsterdam University of Applied Sciences), Luís delves into Amsterdam’s innovative Startup-in-Residence (SiR), a pioneering policy initiative aimed at leveraging the dynamism and creativity of startups to tackle urban sustainability challenges.


Luís highlights how city-based, public-affiliated intermediaries have facilitated effective conversations between startups and the local government. These intermediaries serve not just as connectors but also as moderators and influencers, ensuring that the dialogue leads to meaningful engagement and innovative solutions to urban challenges. The article argues that the essence of SiR’s triumph lies beyond merely generating direct solutions to specific challenges: it also catalyzes institutional innovations, such as new collaborative models and startup-friendly procurement processes.


Currently, Luís is working on re-assessing the role of knowledge as an asset for regional development in the face on-going sustainability transitions, namely under the auspices of the international research network TRAKR.

Click to learn more about this research

Luís Carvalho is Associate Professor at FEP and is currently Associate Editor of the journal Environmental Innovation and Societal Transitions (Elsevier). He may be reached at lcarvalho@fep.up.pt.

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