Governance and socioeconomic innovation: Two european territories compared

This paper aims to analyse the emergence of forms of local welfare in territories under economic transformation. Traditionally welfare states have been conceived with a national dimension. Nevertheless, with the emergence of multi-level governance, local and regional levels are playing a stronger role in the delivery of social policies. The paper explores the decentralization of active employment policies in two subnational territories: the Black Country, in the West Midlands region of the UK and Vallès Occidental in the Barcelona metropolitan region. Local actors in these two areas have developed partnerships for economic development in order to tackle economic restructuration. The objective of these partnerships is to coordinate efforts between municipalities in local economic development and active employment policies. The paper analyses the ways in which public actors try to promote economic agglomeration and new industrial districts, and to what extent these partnerships create systems of local welfare in terms of employment. Finally, the paper analyses how new local identities are created to foster territorial cohesion. The conclusion is that although these partnerships bring more coordination and efficiency, their impact in welfare depend to a great extent on the national context. Variables such as the welfare tradition, the integration between levels of government, or labour market structure explain the consolidation and action of the partnerships. The role of national and regional governments providing material and immaterial resources is also key.