Innovation – From Ideas to Value
Innovation is the process of turning new ideas into value, whether through products, services, business models, or novel ways of doing things. It is a complex process that goes beyond mere creativity or invention, encompassing the practical steps necessary for adoption and diffusion. Innovation builds on existing knowledge and previous solutions, fueling productivity, competitiveness, and economic growth.
Truly innovative firms and territories can
significantly impact business, society, and the environment, outperforming
their peers across multiple dimensions. This article draws on insights from
IESE Business School’s Entrepreneurship and Innovation Center and the World
Economic Forum’s Expert Network, providing a theoretical foundation for
understanding innovation as a multidimensional and place-based process.
Innovation is inherently systemic: it requires the
alignment of ideas, resources, governance, and adoption pathways. Each initiative—whether
technological, organizational, or social—interacts with others, shaping broader
territorial, urban, and economic outcomes.
Innovation as a Horizontal System
Territorial, Urban, and Local
Economic Innovation
Territorial innovation provides the strategic and
spatial foundation for development. It is rooted in the specific assets of a
place—its geography, natural capital, cultural identity, institutional
capacity, and human capital—and defines how a territory positions itself within
wider national, regional, and global systems. Rather than pursuing short-term
growth, territorial innovation establishes long-term direction, coherence, and
purpose. Integrating climate resilience and environmental monitoring at this
level ensures that strategic choices remain robust against ecological and
social shocks. Digital innovation and data-driven approaches further
support territorial planning by providing real-time insights into
environmental, demographic, and economic trends.
Urban innovation translates this territorial vision
into the everyday functioning of cities and towns. Once territorial direction
and identity are clearly defined, innovation naturally shifts to the urban
scale, where strategic choices materialize within the physical, social, and functional
fabric of the city. Through sustainable mobility, climate-resilient public
spaces, energy-efficient buildings, circular waste management, and
participatory governance, urban innovation turns abstract strategies into lived
experience. Smart city solutions and active community engagement enhance the
impact of urban interventions, ensuring they are inclusive, adaptive, and
responsive to citizens’ needs.
Urban transformation, however, can only be
sustained if it is supported by a dynamic and adaptive local economy, making
local economic innovation the essential link between spatial change and
long-term value creation. Local economic innovation concerns how businesses,
entrepreneurs, social enterprises, and public–private partnerships generate
value, create employment, and retain benefits within the community. When
aligned with territorial assets and urban priorities, it strengthens
competitiveness while reinforcing social cohesion. Feedback loops among the
three dimensions enable lessons learned in one domain to inform and enhance
interventions in the others, facilitating scalable and replicable solutions.
Taken together, these three dimensions form a
coherent innovation pathway, in which place, city, and economy evolve through
mutual reinforcement rather than in isolation. Strategic collaboration with
neighboring regions and international partners can further amplify impact,
supporting cross-border initiatives, knowledge exchange, and regional
development synergies.
Horizontal Innovation Framework
(Conceptual Table)
|
Dimension |
Focus |
Key Actions |
Policy / Funding Link |
|
Territorial Innovation |
Strategic
spatial planning, identity, positioning |
Integrated
planning, climate resilience, digital tools, ecosystem protection |
EU
Cohesion Policy, Green Deal, IPA III |
|
Urban Innovation |
Implementation
in the city, lived experience |
Sustainable
mobility, climate-resilient public spaces, energy-efficient buildings,
participatory governance |
Green
Deal urban initiatives, IPA III urban development |
|
Local Economic Innovation |
Value
creation, local competitiveness, social inclusion |
Business
models in sustainable tourism, blue economy, renewable energy, agri-food
systems, skills development, public-private partnerships |
IPA III
economic development, EU Cohesion Policy, cross-border collaboration |
Vlora as a Living Laboratory for
Territorial, Urban, and Local Economic Innovation
Aligning Local Transformation
with EU Cohesion Policy, IPA III, and the European Green Deal
Innovation in Vlora begins at the territorial
level, where long-term direction, identity, and positioning are defined. As a
coastal territory with strategic access to the Adriatic and Ionian seas, rich
biodiversity, and strong cultural capital, Vlora is experiencing growing
development pressures alongside increasing environmental risks.
In line with the place-based approach of EU
Cohesion Policy, territorial innovation in Vlora emphasizes integrated spatial
planning, sustainable coastal governance, and recognition of land and sea as
finite resources. This territorial perspective aligns closely with the European
Green Deal, particularly regarding climate adaptation, ecosystem protection,
and sustainable use of marine and coastal assets. Within the IPA III framework,
such an approach strengthens territorial cohesion and enhances the city’s
capacity to absorb and effectively utilize European funds. Digital tools and
data-driven planning increasingly support the territorial strategy, providing
actionable insights for decision-making and monitoring.
Once territorial direction is established,
innovation moves to the urban scale, where strategic priorities are translated
into concrete interventions. Urban innovation in Vlora focuses on
climate-resilient waterfront development, sustainable mobility systems, energy
efficiency, circular waste management, and high-quality public spaces. These
urban transformations reflect both local needs and EU policy priorities,
reinforcing Green Deal objectives and IPA III investments in green
infrastructure and inclusive urban services. Community engagement and
participatory governance ensure that urban innovations respond to citizens’
needs and aspirations, fostering inclusion, adaptability, and social cohesion.
Urban and territorial transformation ultimately
require a strong economic foundation. Local economic innovation in Vlora
ensures that spatial and environmental improvements translate into durable
economic and social outcomes. This involves fostering new business models and
value chains in sustainable tourism, the blue economy, renewable energy,
agri-food systems linked to the hinterland, and creative industries. Through
skills development, entrepreneurship support, and public–private partnerships,
local economic innovation contributes to job creation, competitiveness, and
social inclusion—core objectives of both IPA III and EU Cohesion Policy. Feedback
loops allow lessons learned from economic initiatives to inform urban and
territorial strategies, ensuring that growth is sustainable, resilient, and
inclusive.
References (selected, for
publication-ready version)
- Siota,
J., Prats, M. J., Zott, C., Klueter, T., & Pacheco, D. (2021). Innovation:
Turning ideas into value. IESE Business School – Entrepreneurship
& Innovation Center.
- World
Economic Forum. (2021). The Global Innovation Index and Expert Network
Insights.
- OECD.
(2019). Territorial Innovation and Regional Development.
- European
Commission. (2020). European Green Deal: Territorial and Urban
Implications.
- Forcada,
N., & Prats, M. J. (2020). Urban Innovation and Smart Cities:
Linking Governance, Technology, and Place.
- European
Commission. (2021). IPA III Programming Document.
- European
Commission. (2020). Cohesion Policy in Practice: Place-Based
Innovation.