Innovation – From Ideas to Value

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.

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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.

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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

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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.

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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.