From technological to social innovation: Rehabilitating the state and civil society in the development debate

The convergence of innovation studies and regional development theory has generated some of the most stimulating debates in the social sciences about the rise of territorial innovation systems. But the literature that emerged from this convergence, while it acknowledged the role of institutional factors, also came at a cost. It privileged economic competitiveness at the expense of social solidarity and empowerment. It also neglected the broader capitalist forces that condition interregional dynamics. To redress these problems, this chapter pursues two aims. First, it contends that the work of Frank Moulaert and colleagues helped to remedy the first shortcoming by asserting the political role of social innovation in development. Second, it offers a critical reading of social innovation models - many of which are caught in the “local” trap - and suggests that the Foundational Economy can provide a multi-scalar strategy for overcoming the localist limits of mainstream territorial innovation models.