ana filipa inovaÇÃo em turismo: o papel dos sistemas … · 2017-02-20 · to my supervisor...

Universidade de Aveiro

2014

Departamento de Economia, Gestão e Engenharia Industrial

ANA FILIPA FERNANDES AGUIAR BRANDÃO

INOVAÇÃO EM TURISMO: O PAPEL DOS SISTEMAS REGIONAIS DE INOVAÇÃO INNOVATION IN TOURISM: THE ROLE OF REGIONAL INNOVATION SYSTEMS

Universidade de Aveiro 2014

Departamento de Economia, Gestão e Engenharia Industrial

ANA FILIPA FERNANDES AGUIAR BRANDÃO

INOVAÇÃO EM TURISMO: O PAPEL DOS SISTEMAS REGIONAIS DE INOVAÇÃO INNOVATION IN TOURISM: THE ROLE OF REGIONAL INNOVATION SYSTEMS

Tese apresentada à Universidade de Aveiro para cumprimento dos requisitos necessários à obtenção do grau de Doutor em Turismo, realizada sob a orientação científica do Doutor Carlos Manuel Martins da Costa, Professor Catedrático do Departamento de Economia, Gestão e Engenharia Industrial da Universidade de Aveiro, e do Doutor Dimitrios Buhalis, Full Professor na Universidade de Bournemouth.

Apoio financeiro da FCT e do FSE/POPH no âmbito do QREN

I dedicate this thesis to my mother and father. Mum, my best friend... You are and always have been the highest example of the person I one day wish to become. Dad, thank you for being a warrior, for always making me laugh, for being by side at all times. You are my Guiding Star... Thank you both for nurturing such a loving and caring family!

o júri

presidente Prof. Doutor Manuel João Senos Matias

Professor Catedrático da Universidade de Aveiro

Prof. Doutor Carlos Manuel Martins da Costa Professor Catedrático da Universidade de Aveiro (orientador)

Prof. Doutor Norberto Nuno Pinto dos Santos Professor Associado com Agregação da Universidade de Coimbra

Prof. Doutor Francisco José Lopes de Sousa Diniz Professor Associado com Agregação Aposentado da Universidade de Trás-os-Montes e Alto Douro

Prof. Doutora Ana Maria Alves Pedro Ferreira Professor Associada da Universidade de Évora

Prof. Doutora Zélia Maria de Jesus Breda Professor Auxiliar da Universidade de Aveiro

acknowledgements

This thesis is about networks and innovation systems. Throughout the course of this work, I have learned important lessons, both from scientific knowledge and from life. The achievement of success is hardly possible without the support of a solid system and robust networks. I am very fortunate for having both. The accomplishment of this thesis would have never been possible without so many people, to whom I wish to express my deep gratefulness for all the support, guidance, patience, motivation and friendship. To my supervisor Professor Carlos Costa, I wish to thank him for all these years of shared wisdom. Besides the excellent scientific guidance, his friendship, support, motivation and enthusiasm are the “most central actors” of this thesis. Thank you so much for your geniality and for making me grow as a researcher and as a person. I am also deeply thankful to Professor Dimitrios Buhalis for the useful advices that highly contributed to the development of this work. To Zélia Breda and Rui Costa, thank you for always being there for me and for helping me to overcome the difficulties faced during this hard process. Your friendship and support were crucial in so many moments! Despite the ups and downs, being near or far, we are the dream team! To all the colleagues from the University of Aveiro and idtour, who gave me a warm welcome to this family some years ago. Isabel, José Mendes, Nuno, Carolina and José Miguel, thank you for being an important source of friendship and companionship. To my parents, boyfriend, sister, brother-in-law and uncle, I must thank you for always encouraging me to achieve my goals and to pursue my dreams. Your constant support was an undeniable determinant for doing this thesis, as well as for all other challenges in my life. You are the rock solid part of my world. I want to thank for the love and support of my friends, who always stood by me, despite my frequent absence in their lives. Sissi, Leonel, Carla, Lena, Cláudia, Lurdes, Ana Sousa, Ana Ramires, Susana, Nina, thank you for being in my life. This work also owes much to the people that kindly accepted to cooperate with it. Without the information provided, it would not have been possible to conclude this thesis. I must also express my gratitude to Fundação para a Ciência e Tecnologia for the financial support and to the University of Aveiro for providing the conditions that allowed me to successfully develop my research project.

palavras-chave Inovação, turismo, redes, conhecimento, sistemas regionais de inovação.

resumo

Esta tese tem como principal objetivo analisar as características, a importância e o papel da inovação territorial em turismo e o seu impacto no desenvolvimento dos destinos. Consiste num estudo multidisciplinar suportado numa exaustiva revisão da literatura sobre temas como desenvolvimento, inovação e modelos de inovação territorial. Com base nas principais conclusões de natureza conceptual, considerou-se o modelo dos sistemas regionais de inovação como o mais adequado para aplicação ao sistema turístico, e a constituição de redes como estruturas fundamentais para a sua operacionalização. A partir desta abordagem teórica, foi desenvolvido um quadro conceptual para a análise da inovação sistémica no sector do turismo. Esta abordagem permitiu a definição de um conjunto de hipóteses, as quais foram testadas através dos resultados da parte empírica da tese. Foram desenvolvidos dois estudos empíricos distintos, mas complementares nas regiões do Douro e de Aveiro. O primeiro teve como objetivo inquirir empresas turísticas, enquanto o segundo foi dirigido a instituições regionais com intervenção no sector do turismo ou na inovação. Os resultados obtidos conduziram a importantes conclusões sobre o desempenho das empresas e regiões em termos de inovação, os padrões de networking desenvolvidos no âmbito de processos de inovação, a importância do conhecimento existente nas regiões e os fatores específicos das mesmas para a inovação em turismo, a perceção das empresas turísticas sobre o ambiente de inovação e o seu contributo para a evolução e para o sucesso dos destinos turísticos. A tese recorre a uma abordagem quantitativa que inclui estatística descritiva e indutiva e ao método da análise de redes (sociometria). A combinação de métodos levou a importantes conclusões sobre a inovação em turismo, com uma focalização especial no que a relaciona com os sistemas regionais de inovação. As conclusões permitem avançar com um conjunto de implicações e sugestões para futuros projetos de investigação sobre o tema, bem como para a gestão dos destinos turísticos, uma vez que contribui para um maior e mais aprofundado conhecimento do fenómeno da inovação em turismo desenvolvida a nível regional. Os resultados demonstram que diferentes regiões apresentam sistemas regionais de inovação distintos. Assim, não existe um modelo único que possa ser aplicado indistintamente em todas as regiões. Contudo, as conclusões apontam para a existência de padrões e práticas que aperfeiçoam o seu funcionamento, aumentando o desempenho ao nível da inovação, bem como a competitividade global do destino.

keywords

Innovation, tourism, networks, knowledge, regional innovation systems.

abstract

This thesis analysis the characteristics, importance and role of tourism innovation developed at territorial level and its impact on destination development. It is a multidisciplinary study based on an extensive literature review on development, innovation and territorial innovation models. Grounded on the main conceptual findings, the model of regional innovation systems is considered to be the most adequate for the tourism system, and the networks as important structures for its operationalisation. From this theoretical approach, a framework for the analysis of tourism innovation systems is developed, and several hypotheses are advanced and tested through the analysis of the results from the empirical part of the thesis. Two distinct but complementary empirical studies are conducted in the regions of Douro and Aveiro. The first is directed at tourism firms and the second to regional tourism organisations and innovation institutions. The results gathered allow unveiling important conclusions on the innovative performance of tourism firms and regions, the networking patterns developed within innovation processes, the importance of regional knowledge and regional specific factors for tourism innovation and the perception of tourism firms regarding the innovation environment and the contribution of innovation in the evolution and success of tourism destinations. The thesis makes use of a quantitative approach including descriptive and inductive statistics and social network analysis methods (sociometry). The combination of methods brings important insights on tourism innovation, with a special focus on regional tourism innovation systems. It allows advancing implications and suggestions for future research on the topic and for tourism destinations’ management, as it contributes to a better and in-depth understanding of the phenomenon of interactive tourism innovation at regional level. The results highlight that different regions present distinct regional innovation systems and thus there is no single inflexible framework to be applied to all tourism destinations. There are, however, conclusions that indicate that specific patterns and practices improve their functioning, increasing innovation performance and overall destination competitiveness.

Filipa Brandão Regional Tourism Innovation Systems

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TABLE OF CONTENTS

TABLE OF CONTENTS ...................................................................................................................... i

LIST OF FIGURES ......................................................................................................................... vii

LIST OF TABLES .......................................................................................................................... xiii

Chapter 1: Introduction ......................................................................................................... 17

1.1 Introduction ..................................................................................................................... 18

1.2 Scope of the thesis ........................................................................................................... 18

1.3 Overview of methodology and objectives ....................................................................... 19

1.4 Structure of the thesis ...................................................................................................... 21

Chapter 2: Development of tourism destinations .................................................................... 25

2.1 Introduction ..................................................................................................................... 26

2.2 The meaning of development .......................................................................................... 27

2.3 The development of tourism destinations ....................................................................... 34

2.3.1 Evolutionary theories and models: the development of tourism territories ........... 35

2.3.2 Butler’s Tourism Area Life-Cycle Model (TALC) ........................................................ 51

2.3.2.1 Limitations and criticisms to TALC model ............................................................ 65

2.3.3 Destination development and innovation ............................................................... 71

2.4 Conclusion ........................................................................................................................ 73

Chapter 3: Concepts and models of innovation: focusing on the territorial dimension ............. 77

3.1 Introduction ..................................................................................................................... 78

3.2 Conceptualising Innovation .............................................................................................. 78

3.2.1 Taxonomies of innovation ........................................................................................ 86

3.2.2 The evolution of the innovation concept ................................................................. 95

3.3 Innovation in tourism ..................................................................................................... 105

3.3.1 Determinants and barriers of tourism innovation ................................................. 111

3.3.2 A general overview of innovation in services ......................................................... 117

3.3.3 How do service firms innovate? ............................................................................. 122

3.4 The dynamics of territorial innovation: why firms agglomerate?.................................. 128

3.4.1 Proximity and innovation: a multi-dimensional analysis ....................................... 134

3.5 Territorial innovation models......................................................................................... 143

3.5.1 Innovative milieus .................................................................................................. 144

3.5.2 Industrial districts ................................................................................................... 147

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Regional Tourism Innovation Systems Filipa Brandão

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3.5.3 New industrial spaces ............................................................................................. 151

3.5.4 Regional technological complexes ......................................................................... 154

3.5.5 Clusters of innovation ............................................................................................ 156

3.6 Conclusion ...................................................................................................................... 166

Chapter 4: Progressing on regional tourism innovation .......................................................... 169

4.1 Introduction .................................................................................................................... 170

4.2 Conceptualising regional innovation systems ................................................................ 171

4.2.1 Components of regional innovation systems ......................................................... 178

4.2.2 Tourism as a system ............................................................................................... 183

4.2.3 Functions and activities of innovation systems ...................................................... 189

4.2.4 Boundaries: the importance of regions as the locus of tourism innovation .......... 193

4.2.5 Networks and relationships as the core of systemic innovation ........................... 201

4.2.5.1 Types of networks .............................................................................................. 207

4.2.5.2 Network structure: fundamental concepts and streams of research ................ 211

4.2.5.3 Networks properties and measures ................................................................... 219

4.2.5.4 Networks prompting tourism innovation ........................................................... 222

4.2.6 Knowledge and Learning within Tourism Innovation Systems .............................. 231

4.2.7 Learning Regions .................................................................................................... 245

4.3 Towards a Regional Tourism Innovation System ........................................................... 248

4.4 Conclusion ...................................................................................................................... 250

Chapter 5: Methodology ....................................................................................................... 253

5.1 Introduction .................................................................................................................... 254

5.2 Epistemology of scientific method ................................................................................. 254

5.2.1 Paradigms in social sciences ................................................................................... 258

5.3 The research framework ................................................................................................ 263

5.3.1 The research problem ............................................................................................ 266

5.3.2 Literature review: fields of study and objectives ................................................... 266

5.3.3 Theoretical framework: objectives and hypothesis ............................................... 268

5.3.4 Research process: used methods and techniques ................................................. 270

5.3.4.1 Regional innovation systems research ............................................................... 273

5.3.4.2 Social network analysis....................................................................................... 274

5.3.4.3 Tourism firms’ survey design .............................................................................. 288

5.3.4.4 Institutions’ survey design .................................................................................. 295

5.3.4.5 Pilot survey ......................................................................................................... 296

5.3.4.6 Selection of the regions ...................................................................................... 299

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5.3.4.7 Defining the population of tourism firms........................................................... 301

5.3.4.8 Defining the population of tourism institutions................................................. 311

5.3.4.9 Data collection .................................................................................................... 315

5.4 Data analysis procedures ............................................................................................... 318

5.5 Conclusion ...................................................................................................................... 322

Chapter 6: Tourism firms and regional innovation ................................................................. 325

6.1 Introduction ................................................................................................................... 326

6.2 Background of the Baixo Vouga and Douro Regions ..................................................... 326

6.3 Analysis of regional innovation developed by tourism firms ......................................... 335

6.3.1 Characteristics of respondents ............................................................................... 336

6.3.1.1 Type of tourism firms ......................................................................................... 338

6.3.1.2 Size of firms ........................................................................................................ 340

6.3.1.3 Age distribution .................................................................................................. 341

6.3.1.4 Employees’ education degree ............................................................................ 343

6.3.1.5 Education in tourism .......................................................................................... 346

6.3.2 Innovation performance ........................................................................................ 347

6.3.3 Networking and cooperative behaviour towards tourism innovation................... 361

6.3.3.1 Organisations involved in tourism innovation networks ................................... 363

6.3.3.2 Geographical scope of cooperation ................................................................... 367

6.3.3.3 Frequency of contact .......................................................................................... 373

6.3.3.4 Purpose of cooperation ...................................................................................... 378

6.3.3.5 Contribution of organisations for regional tourism innovation ......................... 383

6.3.4 Regional knowledge infrastructure ........................................................................ 387

6.3.5 Regional specific factors and innovation................................................................ 393

6.3.6 Perception of tourism firms regarding regional innovation environment ............. 399

6.4 Conclusion ...................................................................................................................... 405

Chapter 7: Institutional networks and regional tourism innovation systems ........................... 409

7.1 Introduction ................................................................................................................... 410

7.2 Patterns of institutional cooperation for regional tourism innovation: social network analysis ....................................................................................................................................... 411

7.2.1 Position of individual actors: analysis of centrality ................................................ 416

7.2.1.1 Degree centrality ................................................................................................ 417

7.2.1.2 Betweenness ...................................................................................................... 419

7.2.1.3 Closeness ............................................................................................................ 421

7.2.1.4 Network centralisation ....................................................................................... 423



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7.2.2 Network connectivity and cohesion ....................................................................... 424

7.2.2.1 Density ................................................................................................................ 424

7.2.2.2 Distance .............................................................................................................. 425

7.2.2.3 Maximum Flow ................................................................................................... 426

7.2.2.4 Point Connectivity .............................................................................................. 428

7.2.2.5 Clustering Coefficient ......................................................................................... 429

7.2.2.6 External – Internal Index .................................................................................... 432

7.2.3 Collaboration patterns by geographical scope ....................................................... 434

7.2.4 Collaboration patterns by type of organisations .................................................... 436

7.2.5 Structural Roles and Positions: divide to conquer? ............................................... 438

7.2.5.1 Structural Holes .................................................................................................. 438

7.2.5.2 Brokerage ........................................................................................................... 443

7.3 Comparison between the overall and the regionally-based actors networks ............... 456

7.4 The influential role of Small-World Networks for regional tourism innovation ............ 460

7.5 Networks within innovation specific activities ............................................................... 462

7.5.1 Knowledge sharing ................................................................................................. 463

7.5.2 Knowledge creation ................................................................................................ 467

7.5.3 New product development .................................................................................... 470

7.5.4 New process development ..................................................................................... 472

7.5.5 New marketing strategies ...................................................................................... 475

7.6 Conclusion ...................................................................................................................... 477

Chapter 8: Validation of hypothesis ...................................................................................... 481

8.1 Introduction .................................................................................................................... 482

8.2 Patterns of regional tourism innovation ........................................................................ 483

8.3 Networks structure......................................................................................................... 486

8.4 Regional embeddedness of tourism innovation ............................................................ 500

8.5 Importance of knowledge for tourism innovation ......................................................... 502

8.6 Regional Tourism Innovation Systems and destination development ........................... 504

8.7 Conclusion ...................................................................................................................... 506

Chapter 9: Main findings and conclusions ............................................................................. 509

9.1 Introduction .................................................................................................................... 510

9.2 Firm-level outcomes and regional innovation framework ............................................. 510

9.3 The contribution of institutional networks for regional tourism innovation systems ... 514

9.4 Thesis originality and contribution ................................................................................. 520

9.5 Limitations of the thesis and suggestions for future research ....................................... 523



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References ........................................................................................................................... 525

Appendices .......................................................................................................................... 567

Appendix 1 – Activities and functions of innovation systems .................................................... 568

Appendix 2 – Empirical studies on regional innovation systems ............................................... 571

Appendix 3 – Pilot survey (English version) ............................................................................... 579

Appendix 4 – Pilot Survey (Portuguese version) ........................................................................ 591

Appendix 5 – Firms’ Survey (English version)............................................................................. 603

Appendix 6 – Firms’ Survey (Portuguese version) ..................................................................... 615

Appendix 7 – Comparison between innovative and non-innovative tourism firms: statistical tests results ................................................................................................................................ 627

Appendix 8 – Comparison between the regions of Douro and Aveiro: statistical tests results 629



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LIST OF FIGURES

Figure 2.1– Rostow’s stages of economic development .................................................................. 30

Figure 2.2 – Stages of the spatial process of tourist development .................................................. 42

Figure 2.3 – Miossec’s model of tourist development ..................................................................... 44

Figure 2.4 – Spatio-temporal development of international seaside tourism ................................. 45

Figure 2.5– The resort development spectrum ............................................................................... 48

Figure 2.6– Destination development scenarios.............................................................................. 49

Figure 2.7 – The product life cycle ................................................................................................... 52

Figure 2.8– Roger’s adoption of innovations curve ......................................................................... 53

Figure 2.9 – Plog’s psychographic personality types ....................................................................... 54

Figures 2.10 and 2.11 –Promotional posters of Coney Island from the beginning of 20th century . 59

Figure 2.12 – Hypothetical evolution of a tourist area .................................................................... 60

Figure 2.13– Post-Stagnation stage scenarios ................................................................................. 62

Figure 2.14 – Alternative tourism area life cycle patterns ............................................................... 67

Figure 3.1 - Edquist’s taxonomy of innovations ............................................................................... 87

Figure 3.2– Abernathy-Clark Model ................................................................................................. 90

Figure 3.3– Tushman et al. Innovation Taxonomy Model ............................................................... 91

Figure 3.4– Henderson-Clark Model ................................................................................................ 92

Figure 3.5 – Chandy -Tellis Model .................................................................................................... 92

Figure 3.6 – Innovations according to technical change .................................................................. 93

Figure 3.7 – Technology-Push Model ............................................................................................... 95

Figure 3.8 – Demand-Pull Model...................................................................................................... 96

Figure 3.9 – Kline and Rosenberg’s Chained-Linked Model of Innovation ...................................... 98

Figure 3.10 – Coupling Model .......................................................................................................... 99

Figure 3.11 – Integrated Model ..................................................................................................... 100

Figure 3.12 – Networked and Systemic Model .............................................................................. 101

Figure 3.13 – Knowledge, Networking and Collective Learning Model ......................................... 103

Figure 3.14 – Main factors affecting innovation in a System of Innovation .................................. 105

Figure 3.15 – Framework for public participation as social innovation in tourism........................ 109

Figure 3.16 – Tourism perspective on Abernathy-Clark model ..................................................... 110

Figure 3.17 – Rate of types of innovations developed by Portuguese service and manufacturing firms, 2008-2010 (%) ...................................................................................................................... 124

Figure 3.18 – Engagement in innovation activities by Portuguese service and manufacturing firms, 2008-2010 (%) ................................................................................................................................ 125


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Figure 3.19 – Expenditure in innovation activities by Portuguese service and manufacturing firms, 2008-2010 (%) ................................................................................................................................ 126

Figure 3.20 – Sources of information and cooperation established for Portuguese service and manufacturing firms, according to the type of partner 2008-2010 (%) ......................................... 127

Figure 3.21 – Main factors hampering innovation in Portuguese firms 2008-2010 (%) ................ 128

Figure 3.22 –Dimensions of proximity at general and dyadic level ............................................... 135

Figure 3.23 – Territorial Innovation Models: theoretical roots ..................................................... 143

Figure 3.24 – Regional Clusters in Portugal .................................................................................... 163

Figure 4.1 – Actors and linkages in National Innovation Systems – a general framework ............ 171

Figure 4.2 – Generic National Innovation System .......................................................................... 172

Figure 4.3 – Components of a Regional Innovation System .......................................................... 179

Figure 4.4 – Leiper’s tourism system .............................................................................................. 184

Figure 4.5 – Elements of tourism system according to Gunn and Var ........................................... 185

Figure 4.6 – Mill and Morrison’s systemic perspective on tourism ............................................... 186

Figure 4.7 – The destination system .............................................................................................. 187

Figure 4.8 – Possible configurations of a tourism system .............................................................. 188

Figure 4.9 – The Product -Space Model ......................................................................................... 199

Figure 4.10 – Example of a Structural Hole .................................................................................... 214

Figure 4.11 – Example of a Broker ................................................................................................. 215

Figure 4.12 – Example of a node’s structural advantage within a network ................................... 216

Figure 4.13 – Framework of evolution of strong and weak ties along the innovation process ..... 227

Figure 4.14 – Diffusion of tourism research ................................................................................... 241

Figure 4.15 – Regional Tourism Innovation System’s Framework ................................................. 249

Figure 5.1 – Relationship between Epistemology, Theoretical Perspectives, Methodology and Research Methods .......................................................................................................................... 257

Figure 5.2 – Seven steps of scientific research............................................................................... 264

Figure 5.3 – Steps of Tourism Research Process ............................................................................ 265

Figure 5.4 – Literature review: main topics of analysis .................................................................. 267

Figure 5.5 – Framework of literature review ................................................................................. 268

Figure 5.6 – Adopted research process .......................................................................................... 272

Figure 5.7 – Regular, Random, Scale-Free and Small-World Network models .............................. 281

Figure 5.8 – Relation between hypothesis and survey questions .................................................. 294

Figure 5.9 – Form used to conduct the interview-questionnaires ................................................. 296

Figure 5.10 – UCINET matrix of network data ................................................................................ 320

Figure 6.1– Location and municipalities of the NUT III Baixo Vouga ............................................. 327

Figure 6.2 – Nights spent in hotel establishments of Aveiro region by country of usual residency in 2011 (%) .......................................................................................................................................... 328


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Figure 6.3 – Guests in hotel establishments of Aveiro region by country of usual residency in 2011 (%) .................................................................................................................................................. 329

Figure 6.4– Location and municipalities of the NUT III Douro ....................................................... 329

Figure 6.5 – Nights spent in hotel establishments of Douro region by country of usual residency in 2011 (%) ......................................................................................................................................... 331

Figure 6.6 – Guests in hotel establishments of Douro region by country of usual residency in 2011 (%) .................................................................................................................................................. 331

Figure 6.7– Evolution of lodging capacity (number of beds) of Douro and Aveiro (1990/2011)... 332

Figure 6.8– Evolution of lodging capacity (number of beds) of Douro and Aveiro (2000/2011)... 332

Figure 6.9 – Evolution of nights spent in the establishments of Douro and Aveiro (1990/2011) . 333

Figure 6.10 – Evolution of nights spent in the establishments of Douro and Aveiro (2000/2011) 333

Figure 6.11 – Evolution of the number of guests in the establishments of Douro and Aveiro (1990/2011) .................................................................................................................................... 334

Figure 6.12 – Evolution of the number of guests in the establishments of Douro and Aveiro (2000/2011) .................................................................................................................................... 334

Figure 6.13– Online survey vs. Phone survey, by region................................................................ 335

Figure 6.14 – Percentage of surveyed tourism firms, by region .................................................... 337

Figure 6.15 – Number of surveyed tourism firms, by municipality (Aveiro) .................................. 337

Figure 6.16 – Number of surveyed tourism firms, by municipality (Douro) .................................. 338

Figure 6.17 – Respondents in Douro, by tourism sub-sector ......................................................... 339

Figure 6.18 – Respondents in Aveiro, by tourism sub-sector ........................................................ 340

Figure 6.19 – Size of tourism firms (by number of employees) ..................................................... 341

Figure 6.20 – Overall number of firms, by age group .................................................................... 342

Figure 6.21 – Age of tourism firms ................................................................................................. 343

Figure 6.22 – Education level in Douro and Aveiro (%) .................................................................. 345

Figure 6.23 – Level of human resources with tourism degree in Douro and Aveiro (%) ............... 346

Figure 6.24 – Overall percentage of innovative tourism firms ...................................................... 347

Figure 6.25 – Rate of innovative tourism firms in Douro and Aveiro (%) ...................................... 348

Figure 6.26 – Rate of innovative tourism firms according to the employees’ education degree .. 349

Figure 6.27 – Number of firms that introduced tourism innovations, according to innovation type ........................................................................................................................................................ 350

Figure 6.28– Share of firms that introduced tourism innovations in Douro and Aveiro ............... 351

Figure 6.29 – Rate of innovative firms by tourism sub-sector ....................................................... 352

Figure 6.30 – Rate of innovative firms by tourism sub-sector in Douro and Aveiro ...................... 352

Figure 6.31 – Innovation intensity ................................................................................................. 355

Figure 6.32 – Level of innovativeness of new products ................................................................. 356

Figure 6.33 – Innovation activities ................................................................................................. 357

Figure 6.34 – Engagement in innovation networks ....................................................................... 362


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Figure 6.35 – Type of organisations in Douro and Aveiro with which firms cooperated towards innovation ...................................................................................................................................... 364

Figure 6.36– Geographical scope of cooperation towards innovation .......................................... 368

Figure 6.37 – Frequency of contact between Douro firms and organisations in their innovation network .......................................................................................................................................... 375

Figure 6.38 – Frequency of contact between Aveiro firms and organisations in their innovation network .......................................................................................................................................... 375

Figure 6.39 – Frequency of contact with cooperation partners from firms in Douro, by type of collaborator .................................................................................................................................... 376

Figure 6.40 – Frequency of contact with cooperation partners of firms in Aveiro, by type of collaborator .................................................................................................................................... 378

Figure 6.41 – Purpose of cooperation for the development of innovation ................................... 380

Figure 6.42 – Purpose of cooperation for the development of innovation in Douro, by type of collaborator .................................................................................................................................... 381

Figure 6.43 – Purpose of cooperation for the development of innovation in Aveiro, by type of collaborator .................................................................................................................................... 382

Figure 6.44 – Effective importance of organisations for regional tourism innovation (average) .. 384

Figure 6.45 – Effective importance of organisations for regional tourism innovation in Douro, by type of organisation (%) ................................................................................................................. 385

Figure 6.46 – Effective importance of organisations for regional tourism innovation in Aveiro, by type of organisation (%) ................................................................................................................. 386

Figure 6.47 – Origin of human resources with tourism education ................................................ 388

Figure 6.48 – Importance of knowledge sources for tourism innovation ...................................... 390

Figure 6.49 – Importance of sources of knowledge for tourism innovation: geographical and sectoral dynamics - Douro .............................................................................................................. 391

Figure 6.50 – Importance of sources of knowledge for tourism innovation: geographical and sectoral dynamics - Aveiro ............................................................................................................. 392

Figure 6.51 – Importance of regional specific factors for innovation ............................................ 394

Figure 6.52 – Actors who usually introduce tourism innovations in Douro ................................... 398

Figure 7.1 –Douro institutional innovation network ...................................................................... 412

Figure 7.2 – Geographical scope of actors in Douro innovation network...................................... 413

Figure 7.3 – Organisational type of actors in Douro innovation network...................................... 414

Figure 7.4 –Aveiro institutional innovation network ..................................................................... 414

Figure 7.5 – Geographical scope of actors in Aveiro innovation network ..................................... 415

Figure 7.6 – Organisational type of actors in Aveiro innovation network ..................................... 416

Figure 7.7 – Actors with highest degree centrality in Douro network ........................................... 417

Figure 7.8 – Actors with highest degree centrality in Aveiro network........................................... 418

Figure 7.9 – Douro institutional innovation network: actors’ geographical scope ........................ 434

Figure 7.10 – Aveiro institutional innovation network: actors’ geographical scope ..................... 436


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Figure 7.11 – Douro institutional innovation network: organisational type ................................. 437

Figure 7.12 – Aveiro institutional innovation network: organisational type ................................. 438

Figure 7.13 –Douro regionally based-actors innovation network ................................................. 457

Figure 7.14 –Aveiro regionally based-actors innovation network ................................................. 458

Figure 7.15 –Douro knowledge sharing network ........................................................................... 465

Figure 7.16 – Aveiro knowledge sharing network .......................................................................... 466

Figure 7.17 – Douro knowledge creation network ........................................................................ 468

Figure 7.18 – Aveiro knowledge creation network ........................................................................ 469

Figure 7.19 – Douro new product development network ............................................................. 471

Figure 7.20 – Aveiro new product development network ............................................................. 472

Figure 7.21 – Douro new process development network .............................................................. 473

Figure 7.22 – Aveiro new process development network ............................................................. 474

Figure 7.23 – Douro new marketing strategies network ............................................................... 476

Figure 7.24 – Aveiro new marketing strategies network ............................................................... 477


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LIST OF TABLES

Table 2.1 – Applications of the concept of development ................................................................ 29

Table 2.2 – The interrelationship of development process stage models and the resort life cycle 38

Table 2.3– Cyclical process of destination’s development and decline ........................................... 46

Table 2.4 – Integration of resort cycle, product life cycle and tourist typologies ........................... 56

Table 2.5 – Index of tourist irritation ............................................................................................... 57

Table 2.6 – Destination life cycle and tourism impacts ................................................................... 64

Table 3.1 - Main definitions of innovation ....................................................................................... 84

Table 3.2 – Innovation taxonomies by innovation intensity and economic impact ........................ 94

Table 3.3 - Critical Innovation Factors .............................................................................................. 99

Table 3.4 – Main Features of the 6th Generation Innovation Model ............................................. 104

Table 3.5 - Taxonomy of tourism innovations................................................................................ 107

Table 3.6 – Determinants of innovation in tourism firms .............................................................. 116

Table 3.7 – Agglomeration externalities ........................................................................................ 132

Table 3.8 – Horizontal and vertical externalities classified against efficiency and innovation externalities .................................................................................................................................... 133

Table 3.9 – Types of possible proximities among organisations .................................................... 136

Table 3.10 – Main differences between Silicon Valley and Route 128 .......................................... 155

Table 3.11 – Features distinguishing networks from clusters ........................................................ 159

Table 4.1 – Criteria for higher and lower potential of Regional Innovation Systems .................... 177

Table 4.2 – Tourism economic structure (characteristic activities) ............................................... 198

Table 4.3 – Interconnectedness of formal and informal inter-organisational and interpersonal networks ......................................................................................................................................... 209

Table 4.4 – Types of knowledge and related learning processes .................................................. 236

Table 4.5 – From mass production to learning regions ................................................................. 246

Table 5.1 – Fundamental concepts related to epistemology of science ........................................ 255

Table 5.2 – Objectivist versus Constructivist Epistemologies ........................................................ 257

Table 5.3 – Differences between Positivism and Interpretivism paradigms ................................. 262

Table 5.4 – Relationship between Objectives, Hypothesis and Survey Questions ........................ 269

Table 5.5 – Network properties, measures and implications for innovation ................................ 285

Table 5.6 – Advantages and disadvantages of closed and open-ended questions ........................ 289

Table 5.7 – Types of scales used in the questionnaire ................................................................... 290

Table 5.8 – Interviewer versus respondent completion ................................................................ 291

Table 5.9 – Questionnaire sections, questions, data collected and expected results ................... 292

Table 5.10 – Regions selected for the empirical study .................................................................. 300


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Table 5.11 – Categories of the overall population of tourism firms .............................................. 303

Table 5.12 – Target Population: number of firms by detailed category and region ...................... 310

Table 5.13 – Target Population: number of institutions by category and region .......................... 312

Table 5.14 – Survey population and response rate, by region ....................................................... 316

Table 5.15 – Population and response rate in Douro, by tourism sub-sector ............................... 317

Table 5.16 – Population and response rate in Aveiro, by tourism sub-sector ............................... 317

Table 6.1 – Survey’s sections, questions and objectives ................................................................ 336

Table 6.2 – Survey population and response rate, by region ......................................................... 336

Table 6.3 – Surveyed firms by category and region ....................................................................... 339

Table 6.4 – Employees’ education degree ..................................................................................... 344

Table 6.5 – Overall level of education ............................................................................................ 344

Table 6.6 – Rate of innovative firms by innovation type ............................................................... 353

Table 6.7 – Rate of innovative firms by tourism sub-sector .......................................................... 354

Table 6.8 – Innovation, cooperation and their economic significance .......................................... 359

Table 6.9 – Relation between the variable “organisations with which tourism firms cooperate towards innovation” and independent variables (X2) .................................................................... 366

Table 6.10 – Geographical scope of cooperation links with other organisations .......................... 369

Table 6.11 – Geographical scope of cooperation, by partners’ activity ......................................... 372

Table 6.12 – Scale of reliability of Cronbach’s Alpha (α) values..................................................... 374

Table 6.13 – Analysis of reliability: Cronbach’s Alpha (α) for Question II.6 ................................... 374

Table 6.14 – Purpose of cooperation: comparison between tourism firms and non-profit organisations in Douro and Aveiro (%) ........................................................................................... 383

Table 6.15 – Analysis of reliability: Cronbach’s Alpha (α) for Question II.6 ................................... 383

Table 6.16 – Overall importance given to organisations regarding regional tourism innovation . 387

Table 6.17 – Analysis of reliability: Cronbach’s Alpha (α) for Question IV.1 .................................. 394

Table 6.18 – Overall importance granted to regional specific factors ........................................... 397

Table 6.19 – Perception on the regions’ overall conditions to innovate ....................................... 399

Table 6.20 – Perception on the regional networks and tourism innovation ................................. 400

Table 6.21 – Perception on innovation and destination development .......................................... 403

Table 7.1 – Summary of main metrics computed for the whole Douro and Aveiro Tourism Innovation Networks ...................................................................................................................... 411

Table 7.2 – Actors with highest betweenness in Douro and Aveiro networks .............................. 420

Table 7.3 – Clustering Coefficient in Douro and Aveiro Real and Random Networks ................... 430

Table 7.4 – External-Internal Index of Douro and Aveiro networks – Organisational and Geographical Dimensions ............................................................................................................... 433

Table 7.5 – Structural holes measures for the Aveiro tourism innovation network ...................... 441

Table 7.6 – Structural holes measures for the Douro tourism innovation network ...................... 442


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Table 7.7 – Types of Brokers .......................................................................................................... 443

Table 7.8 –Brokerage roles (geographical level) in the tourism innovation network of Douro .... 445

Table 7.9 – Brokerage roles (geographical level) in the tourism innovation network of Aveiro ... 448

Table 7.10 –Brokerage roles (type of organisation) in the tourism innovation network of Douro 450

Table 7.11 – Brokerage roles (type of organisation) in the tourism innovation network of Aveiro ........................................................................................................................................................ 453

Table 7.12 – Main metrics of Douro and Aveiro overall and regional innovation networks ......... 456

Table 7.13 –Small World Coefficient of the Douro Network ......................................................... 461

Table 7.14 –Small World Coefficient of the Aveiro Network ......................................................... 461

Table 7.15 –Metrics regarding Douro’s specific innovation activities networks ........................... 462

Table 7.16 –Metrics of Aveiro’s specific innovation activities networks ....................................... 463

1

Introduction


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1.1 Introduction

This chapter intends to provide a general overview of the thesis. It is presented the relevance and

scope of this research within the most recent theories and trends on innovation, emphasising the

innovation in tourism and the importance of systemic and territorial approaches (section 1.2). The

following section provides a brief presentation and justification of the adopted research process

and the main objectives of the research project (section 1.3). Finally, in section 1.4, an overlook to

the structure of the thesis is made.

1.2 Scope of the thesis

This thesis looks into innovation in tourism and its territorial dimension at regional level. The early

studies on innovation focused mainly on manufacturing firms, which can be explained by the fact

that the world’s economy was based on industrial societies. As we evolved into service economy

and, more recently, into knowledge economy, the research on innovation started to embrace

service firms, in which tourism is included. Despite this, and the paramount importance that

tourism plays in worldwide economy, theoretical and empirical studies on tourism innovation are

still moderate and are mostly conceptual.

Besides this gap found in the literature, this thesis is also inspired by emerging work on interactive

and systemic innovation. The acknowledgement by the researcher of the importance that the

territory has in the evolution and development of tourism destinations, as these processes cannot

be detached from it, lead into a path focusing on the analysis of the relation among tourism

innovation, firms and destinations, conceptualised in an integrated whole. In fact, the evolution of

innovation models demonstrate that the practice of innovation in firms started from linear,

sequential and atomistic processes developed entirely within the scope of the firm, towards the

most recent models in which firms, in order to be successful, develop their innovation in a

networked environment, with strong patterns of cooperation not only with other businesses, but

also suppliers, customers, universities, research centres, etc. and highly supported by interactive

knowledge creation, knowledge sharing and collective learning. Thus, the territory in which

innovation develops has a critical role, as it provides the necessary conditions for it to develop.


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Bearing this and the discussion around the globalisation of economies and the importance of

regions in mind, it is concluded that the regional level is the privileged locus for the development

of successful and competitive innovations. The new paradigm is based on the understanding that

the key driver of a globalised competition results from innovation developed within innovation

systems. Considering that tourism is a fragmented and systemic industry, based on integrated

experiences comprising all the elements of the system and closely linked to the territory, it is

fundamental that innovation is developed at destination level. Moreover, tourism firms and

destinations should engage in constant innovation in order to response to the new generation of

tourists and their constantly evolving motivations. Here lies the importance of innovation

networks, nurtured in regions that offer the necessary conditions for innovative processes to

occur. Within this context, the regional innovation systems framework provides a model that, if

functioning correctly, may improve significantly the tourism destinations’ innovation performance

and have a significant impact in their development.

Thus, in overall terms, this thesis aims at contributing to the understanding of how regional

innovation systems may work in tourism industry and how they can be developed within

destinations in order to foster the creation of an environment supportive and conducive to

successful innovations and sustainable development.

1.3 Overview of methodology and objectives

The general objective of this thesis is to analyse how regional tourism innovation systems

influence innovation performance of tourism destinations and if they have an impact on their

development and competitiveness. Under this broad approach, some specific objectives are

defined that allow assessing key dimensions that contribute to clarify the research problem.

These are:

To characterise the patterns of tourism innovation at destination level, in terms of

performance, type, activities and sources of innovation;

To evaluate the characteristics of the relationships established within regional tourism

innovation systems that are on the basis of destination level innovation across regions;


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To evaluate the characteristics of the structure and of the relationships established

among tourism institutions within regional tourism innovation systems that are on the

basis of destination level innovation;

To determine the importance of the region and of regional specific factors for tourism

innovation;

To determine the importance of localised knowledge for tourism destinations’ innovation;

To evaluate how regional tourism innovation systems influence destination level

innovation as tourism destinations evolve.

The study of innovation systems is a complex task, as the model involves several dimensions.

Many studies focus on only one dimension or conduct the analysis based on secondary data,

mainly from Community Innovation Survey, Innovation Union Scoreboard or Regional Innovation

Scoreboard. However, these data does not fit in the objectives of this research, as well as it

provides mainly information at NUT II level.

Therefore, it was chosen to engage in two different empirical studies that complement each other

and, together, allow fulfilling the objectives and testing the defined hypothesis. The first study

was directed to tourism firms located in Douro and Aveiro and aimed at understanding: (i) the

innovation performance of tourism firms; (ii) their networking patterns towards the development

of innovation; (iii) the importance of regional specific factors for tourism innovation; (iv) the role

of regional knowledge and related processes; and (v) the perception of tourism firms regarding

regional innovation environment and the influence of innovation within the development of

tourism destinations. This provided data that was analysed through descriptive and inductive

statistics based on parametric and non-parametric testes (computed in IBM SPSS), which allowed

drawing important conclusions on the perspective of tourism firms.

However, while firms may be the main agents of innovation, as they are the ones that develop

and commercialise them, the regional environment has a significant part in creating the necessary

conditions for firms to engage in innovation processes. Regional institutions are thus fundamental

in supporting or even engaging actively in the development of innovation for tourism

destinations. Therefore, a second study was launched, and a survey was applied to tourism

institutions with focus on tourism or on innovation development. The objective was to submit

these data to sociometric methods in order to characterise the networking patterns of these


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organisations. To do so, the UCINET and NETDRAW software for social network analysis were

used. Strong networks make institutional thickness emerge and create synergies that are

transferred to the territory (externalities), such as, for instance, knowledge spillovers. The

combination of both methods provided useful insights into the functioning of regional tourism

innovation systems. The adopted methodology is discussed in detail in chapter 5.

1.4 Structure of the thesis

The thesis is divided in three parts. The first part is composed by three chapters including the

literature review and provides the theoretical framework of the research by focusing on the

development of tourism destinations, innovation and the regional innovation systems model. The

second part includes four chapters and presents the methodological options and the adopted

research process, followed by the empirical analysis and the subsequent validation of the

hypothesis. The last part presents the main findings, the conclusions and implications of the

research.

In chapter 2, an analysis is made on the concept of development, introducing some initial

approaches on the role that innovation plays on the evolution of societies and economic systems.

This is followed by an in-depth review of the main models of tourism development, which allowed

concluding on the relevance of the Tourism Area Life Cycle model (Butler, 1980) as the most

comprehensive and widely used. This approach assumes that tourism destinations, at some stage,

inevitably enter in decline in terms of number of tourists and in their physical setting. This insight,

alongside some criticisms that postulate that different regions may follow different paths of

development, laid the ground for the analysis of the role that innovation plays in the evolution of

tourism destinations.

Thus, it is fundamental to understand what innovation is, how the practice of innovation

developed in the last decades and what are the most recent theories and models. This is achieved

on chapter 3. Subsequent to these initial topics, innovation in tourism is then analysed. It is found

that research on this matter is lacking, both at conceptual and empirical levels. Despite this, the

phenomenon is characterised, as well as a review is made on the determinants and barriers that


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tourism firms face when innovating. Services in general and tourism in particular are often seen

and non-innovative economic activities. While trying to assess the validity of this assumption, the

characteristics of innovation in services are overlooked, and data from the Community Innovation

Survey is analysed in order to establish a comparison between the patterns of innovation in

service and manufacturing firms. This chapter also introduces the importance of economic

agglomerations for economic growth, innovation and competitiveness of regions, namely by

analysing the externalities created by firms’ clusters, which unveils the relevance of innovation

processes developed in cooperation and linked to the territories. To conclude this line of though,

a thorough review of the different schools of thought regarding territorial innovation models is

presented.

Chapter 4 is entirely dedicated to the analysis of regional innovation systems. The several

dimensions of this model, which is considered to be the most adequate approach to tourism

industry, are studied in detail, namely its components, functions, the networks as the mechanisms

that underlie its functioning, the boundaries of innovation systems within tourism regions and the

role of knowledge in contributing to the increase of innovation performance. This allowed

developing a framework for the application of regional innovation systems to tourism and

provided a significant contribution for the design of the empirical study.

In chapter 5, a discussion is made on the adopted research process. It starts by presenting some

considerations on the epistemology of scientific method, aiming to frame this thesis within the

positivist paradigm and thus justifying the selected methods. Subsequently, it describes the

theoretical framework, namely the research question, the objectives and the related hypothesis.

The used methods and techniques are also discussed in detail by presenting process of the

surveys design, the criteria applied to the selection of the regions under study as well the

definition of population of tourism firms and institutions. It ends by explaining the data collection

process and data analysis procedures.

As mentioned, two different empirical studies were conducted in order to fulfil the research

objectives. The empirical results and analyses are discussed in detail in chapters 6 and 7. Chapter

6 focuses on the analysis of the surveys applied to tourism firms from the regions of Douro and

Aveiro. Its main objective is to characterise the innovation patterns and processes developed by

these organisations. In chapter 7, social network analysis methods are employed in order to


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analyse the network of institutions in both regions, in the perspective of how they engage in or

support regional innovation in tourism, by providing the basis for a well functioning regional

tourism innovation system.

The validation of the hypotheses is made in chapter 8. The decision to include the hypotheses

testing in a separate chapter results from the fact that, in order to validate them, the researcher

had to combine results from both empirical studies. It was considered that this way, a more

objective analysis could be made, facilitating the understanding of the process by the reader.

Finally, chapter 9 highlights the main findings and conclusions of the study and advances the

thesis contribution, both at academic and management levels. It ends by discussing the

limitations of the research and providing some suggestions for future research on this topic.

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2

Development of tourism destinations


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2.1 Introduction

Innovation is one of the most important engines of regional growth, development and

competitiveness. This thesis focuses on how regional innovation can influence the development

of tourism destinations. Bearing this in mind, this chapter aims at analysing the topic of

development, in a broader context, by reviewing the main concepts and theories, and the

development of tourism destinations, and by presenting the models that frame the evolution of

tourism territories. The main objective is to establish a context that allows understanding these

dynamics in order to subsequently analyse the role that innovation may play within regional

tourism development. In order to study territorial innovation, it is crucial to discuss how different

theories of spatial evolution and development of tourism destinations may influence the tourism

development process. It should be noted that a single innovation introduced by the supply side

may significantly impact on the development of the entire tourism destination.

Several changes occurring in society, markets and global economy led to the reducing of product

life cycles in terms of the time span over which they develop. Consequently, organisations have to

innovate in terms of products and services that are offered if they want to remain competitive

(Evans, Campbell, & Stonehouse, 2003). Tourism businesses and organisations play by the same

rule. New trends in demographics, life styles, consumption patterns, purchasing power, new

technologies and access to information, among other changes brought new trends for tourism

management and development (Buhalis & Costa, 2006a, b) and have, over the last decades,

influenced the shortening of tourism destinations life cycle. This demands for the development of

new products and, even more important, new travel experiences that must be introduced

throughout all stages of tourism area life cycle (Butler, 1980), so that the destination may

permanently reinvent itself. In manufacturing, the introduction of an innovation in the form of a

new product or process has important consequences, but that happens mostly to the firm itself.

In what regards tourism, the introduction of a new product often has an impact on the image of

the whole destination and influences the global tourism experience. This is one of the reasons

why the development of tourism innovation networks within tourism territories as being

particularly important.

This chapter begins by analysing the overall concept of development (section 2.2) and the

development of tourism destinations (section 2.3) focusing on the main theories and models


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explaining these processes (section 2.3.1). It is found that Butler’s Tourism Area Life Cycle (Butler,

1980) remains the most comprehensive and used approach, and thus a detailed review of this

model is included on section 2.3.2, as well as its main limitations (section 2.3.2.1) which, in some

cases, provide significant insights on alternative development paths for tourism territories.

Despite the lack of conceptual studies and empirical evidence on this matter, the role of

innovation in the evolution of tourism destinations is briefly revised in section 2.3.3, laying the

grounds for a deeper analysis, conducted in the following chapters.

2.2 The meaning of development

The concept of “development” is a rather ambiguous one, subject to different interpretations

depending on the perspective taken. According to Goulet (1968, cit in Pearce, 1989), development

can be seen both as a process of social change, and a state or condition whenever a society is

considered to be developed or underdeveloped.

Traditionally, development was understood in a strictly economic perspective, measured in terms

of economic growth, namely through the increase and sustenance of Gross Domestic Product or,

in alternative, the growth of the income per capita which allowed analysing the ability of a

country to enlarge its outputs at a rate faster than the population growth rate. Another related

issue was the reducing of the structure of production and employment in agriculture, transferring

them into manufactures and services, as a result of rapid industrialisation as a development

strategy (Todaro & Smith, 2008). Due to the fact that the concepts of growth and development

demonstrate a strong connection, the distinction between the two is hardly easy. Therefore,

many of the development theories and models were first connected to the economic growth

theories.

Development implies change and is tied to the process of economic and social transformation of

societies. Economic growth is a pre-condition for development. However, development implies

more than the increase in national income. It must be a sustained rise of GDP alongside the

necessary changes in societies’ attitudes and traditions that, in the past, may have prevented

society from progressing, and must integrate a broader concept of human welfare embracing


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social, political and cultural goals, implications and values (Ingham, 1995; Seers, 1969; Thirlwall,

1989). In order to the process of development to happen, the economic growth must always be

accompanied by a long-term and irreversible structural change (Coffey & Polése, 1985). According

to Thirlwall, Goulet’s definition seems to be the best attempt to do so, as it discriminates three

main interrelated components: life-sustenance, self-esteem and freedom. The first is related with

the provision of basic needs, while self-esteem concerns with the improvement of standard of

living (higher incomes, education, employment, cultural and humanistic values), and freedom “(…)

refers to freedom from the three evils of ‘want, ignorance and squalor’ so that people are more

able to determine their own destiny” so that societies and countries are not dependent on others

(Goulet, 1971, cit in Thirlwall, 1989, p. 8). In this perspective, development must be understood

as:

“(…) a multidimensional process involving major changes in social structures, popular attitudes,

and national institutions, as well as the acceleration of economic growth, the reduction of

inequality, and the eradication of poverty. Development, in its sense, must represent the whole

gamut of change by which an entire social system, tuned to the diverse basic needs and desires of

individuals and social groups within that system, moves away from a condition of life widely

perceived as unsatisfactory toward a situation and or condition of life regarded as materially and

spiritually better” (Todaro & Smith, 2008, p. 16).

The term development has been used with many different meanings. Mabogunje (1980)

identified four main dimensions of application of the concept and introduced a fifth definition, as

summarised in table 2.1.

Over the last decades, the increasing awareness of the environmental problems moved the

concept further in order to include and debate the issue of sustainability. Concerning about the

deterioration of environment and natural resources and its consequences for economic and social

development, the Brundtland Report, launched the most cited definition of sustainable

development as “development that meets the needs of the present without compromising the

ability of future generations to meet their own needs” (World Commission on Environment and

Development [WCED], 1987, p. 43). Nonetheless, sustainable development does not focus

exclusively on environmental issues. The United Nations’ 2005 World Summit acknowledges that

the concept encompasses three “interdependent and mutually reinforcing pillars”: economic

development, social development and environmental protection (United Nations [UN], 2005).


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Table 2.1 – Applications of the concept of development

Development as… Meaning

Economic growth After Second World War, development meant economic growth, focusing on the increasing of production outputs, rather than on people involved in producing it.

Modernisation

Although still related to economic growth, development included a social dimension related to modernisation. Here, the emphasis was on the process of developing individuals based on education (a critical aspect of social change). However, modernisation also incorporated the notion of consumption of goods and services manufactured in advanced industrial countries.

Distributive justice

Development incorporates a strong social dimension, namely the reducing of poverty, social justice, nature of goods and services provided to populations, accessibility of public goods to all social classes, how the externalities of development can be shared among the classes. The concern is not only who benefits, but also who pays for development. During this period (1960’s), regional development planning emerges as strategy for distributive justice.

Socio-economic transformation

The issues related to distribution and social justice cannot be resolved independently of mechanisms governing production and distribution. The shifts in any of the aspects of production can trigger modifications which may culminate in changes in the relative importance of social classes. This socio-economic transformation constitutes development. This interpretation highlights the relationships between development and underdevelopment, with metropolitan centres enriching at the cost of underdeveloped peripheral regions.

Spatial reorganisation

Spatial forms represent physical realisations of patterns of social relations; therefore, spatial reorganisation is understood as a synonymous of development. The need for a pattern of social relations which can introduce new production processes requires the reconstruction of spatial structures of a country. Certain types of spatial arrangement can better contribute to the reaching of specific goals than others.

Source: Mabogunje (1980)

After the Second World War, some development paradigms emerged: Modernisation,

Dependency, Economic Neoliberalism and Alternative Development (Telfer, 2002). Modernisation

dominated the period after Second World War and is defined as the socioeconomic development

that makes societies evolve from a traditional to a modern framework, embodying a high degree

of state intervention. It is seen by some authors as a process of ‘westernisation’, as the structures

of developing societies follow the patterns of those of the western countries (Harrison, 1992, cit

in Telfer, 2002). The application of modernisation theory to regional development stresses the

strategies of transmission or diffusion of growth impulses [see Schumpeter (1934, 1961) and

Perroux’s (1988) development poles, or pôles de croissance, namely their application to

geographical space).

Rostow’s model (or the Rostovian Model of Economic Growth) remains one of the most widely

cited development theories, fitting in modernisation paradigm. The economist and political


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