How to create territorial entrepreneurial competencies?

Public managers’ role has hence become prominent: they are to gather all stakeholders around the table in order to produce both collective will, entrepreneurial enthusiasm and the coordination of all the resources necessary for the competencies to flourish

For the past few years, in an attempt to address the effects of globalisation, regions have played a central role in entrepreneurial vitality. They act, indeed, as an interface between local stakeholders and can help them mutualise their competencies and resources. Hence, observers have recently noted the emergence of the now so-called “Territorial Entrepreneurial Competencies” (TECs) and a team of four French researchers, including two Professors at ESSCA Business School, Juliette Evon and Franck Gavoille, have studied the process that may favour the emergence of these competencies.

In 2013, the Centre-Val de Loire Region, which is third in rank in the field of drug production in France, initiated a multidisciplinary programme called “Ambition Recherche et Développement – Biomédicaments (ARD) 2020” (Research and Development Ambition 2020 - Bio-pharmaceuticals), aimed at supporting the regional pharmaceutical industry challenged by the rise of generic drugs. All of the industry’s regional stakeholders were integrated into the project: universities, laboratories, clusters, foundations and training organisations.

The purpose of this project was straightforward: to develop the production of therapeutic innovations, namely Bio-pharmaceuticals, thanks to a research investment of over 7 million euros. The ambition was to ensure a better governance of public decisions in order to foster the innovations and the development of regional businesses.

The research team’s conclusions are clear. In view of creating entrepreneurial competencies on a territory, some ingredients are required: a regional culture that favours entrepreneurship, locally available resources (workforce, research, training, etc.), a territorial dynamics thanks to the geographical proximity of actors and their networking, and a territorial governance with access to financial resources and support to strong innovation dynamics.

Public managers’ role has hence become prominent: they are to gather all stakeholders around the table in order to produce both collective will, entrepreneurial enthusiasm and the coordination of all the resources necessary for the competencies to flourish.

This research enables to raise awareness on a refreshing reality: the old paradigm according to which Europe was bringing competencies to regions has evolved. Regions are now accountable for innovation and for providing private and public stakeholders with the adequate resources in order to pursue regional competitiveness.

These stakeholders will in turn endorse responsibility for their own competencies and innovations, yet also benefit from freedom of choice and action. What could be more appealing for young start-ups considering a settlement in a regional territory? The ultimate stage will be when these start-ups will feed the territory in return with their own knowledge and innovative processes. A new era of conversion is thus starting for the industrial network of small and medium businesses in the Centre-Val de Loire region.