Dr. Renato Garcia (p), Dr Veneziano Araujo, Dra Suelene Mascarini, Ms Sarah Ferreira

Developing countries and lagging-behind regions often face persistent shortages of technological capabilities and skills. In this context, local actors increasingly rely on external sources of knowledge to foster innovation and structural change. Foreign Direct Investment (FDI) by multinational companies (MNCs) is widely recognised as a key channel through which advanced knowledge can be transferred to host economies, potentially generating learning processes and technological spillovers at the regional level. While previous studies have shown that inward FDI can stimulate innovation in both developed and developing countries, less is known about its role in shaping regional patterns of technological diversification and specialisation over time.
This paper examines whether and how inward FDI contributes to technological diversification and the emergence of new regional specialisations in an emerging economy context. Building on the literature on regional capabilities, relatedness, and knowledge recombination, we argue that external knowledge brought by MNCs can foster new technological combinations when integrated with existing regional capabilities, thereby supporting processes of industrial and technological upgrading.
Empirically, we combine data on greenfield investments by multinational companies from the fDi Markets database with regional patent data from the Brazilian National Institute of Industrial Property (INPI). Our analysis covers 133 Brazilian intermediate regions (comparable to EU NUTS-2) and spans the period 2003–2020. We geolocate inventors’ addresses to construct fractional patent counts and to measure regional technological specialisation and diversification dynamics.
Preliminary results suggest that inward FDI plays a significant role in shaping regional technological trajectories, being positively associated with the emergence of new technological specialisations and diversification patterns. These findings contribute to the literature on FDI, regional innovation systems, and place-based development by highlighting the role of multinational investment as a catalyst for capability building and structural transformation in lagging-behind regions. From a policy perspective, the results underscore the importance of aligning investment attraction strategies with regional innovation and industrial policies to maximise long-term developmental impacts.

Dr. Yihan Wang (p), Prof. Sébastien Bourdin, Dr. Emmanuelle Faure

This study explores how territorial governance antecedents affect the business model dynamics of innovation intermediaries as brokers, facilitators, mediators, orchestrators, and innovators in the regional innovation ecosystem. Specifically, we explore how territorial governance antecedents - captured here through (1) geographical location and (2) organizational logic grounded in similarity and belonging - shape changes in innovation intermediaries’ (1) value proposition, (2) value architecture, and (3) value capture, as intermediaries that enact brokerage, facilitation, mediation, orchestration, and innovation roles. For this purpose, we conduct a qualitative analysis of the determinants of the shifting business model change in two types of public innovation intermediaries (PIIs) in Normandy (France): nationally funded pôles de compétitivés (pôles) and regionally supported filières d’excellence (filières). Based on interviews, we aggregated four themes to bridge these subjects, including (1) Determination of geographical location; (2) Offset effect of organizational logic; (3) Presence and connection of influential stakeholders; (4) Diversification of financial sourcing. These themes show that proximities matter, but they matter through governance coalitions and role enactment: intermediaries adjust “what they offer,” “how they deliver,” and “how they sustain it financially” as territorial conditions and coalition composition evolve. We find that geographical proximity among members substantially affects the value proposition of innovation intermediaries. However, organizational logic based on similarity and belonging prevails as a more decisive factor in orchestrating large-scale cross-border collaboration networks. The social connection between innovation intermediaries and locally presented influential stakeholders plays a distinct role in value proposition and value architecture. At the same time, diversifying financial souring with alternative funders buffers the risk of reduced public financing and re-location of influential stakeholders in value capture of leading innovation projects.

Ms Ece Turna (p), Prof. Dr. Tüzin Baycan

The twin transition, referring to the simultaneous green and digital transformation, has become a central policy priority shaping contemporary urban and regional development pathways. While these transitions are widely promoted as drivers of sustainability, innovation, and competitiveness, they also risk generating new forms of socio-economic and spatial inequality across and within countries. Addressing these tensions is crucial in a transition era characterized by global uncertainty and uneven regional development.
This study investigates the relationship between twin transition dynamics and inequalities through a cross-country comparative framework, with particular attention to Türkiye’s relative position. The research is guided by three core questions: (i) To what extent do green and digital transitions influence cross-country inequalities? (ii) How do pre-existing structural inequalities shape national performance in the twin transition? and (iii) How does Türkiye perform compared to other countries in terms of twin transition-related inequality patterns?
To address these questions, the study develops an original composite Twin Transition Inequality Index, integrating indicators that capture both digital and green transition outcomes and the distributional inequalities embedded within these processes. The index is constructed using internationally comparable indicators drawn from OECD, World Bank, EU, UN, and related datasets, and is analyzed through quantitative methods supported by SPSS.
Methodologically, the research adopts a dual-direction analytical framework. It examines both the impact of twin transition dynamics on inequality and the constraining effects of inequality on countries’ twin transition capacities. This approach contributes to regional science debates by linking global transformation processes with persistent territorial disparities.
By situating Türkiye within a comparative international perspective, the study highlights the uneven geographies of twin transitions and identifies critical structural challenges shaping national and regional development trajectories. The findings provide policy-relevant insights for designing more inclusive, balanced, and territorially sensitive green and digital transition strategies. In doing so, the paper contributes to discussions on how countries respond to global twin transition processes.