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This paper analyses current developments in public intervention in local economies. The changing Fordist/Keynesian paradigm takes aside the dominance and hierarchy of public action and gives way to a new governance model where the public administration is one more agent among several. We take into account the social innovation view in the analysis of the keys for the deployment of socially inclusive governance policies. We focus on the development of social or institutional capital and the innovation of the governance itself as the main axis for the social innovation processes. Consequently, we will consider the case study of general scientific and technological policies and particularly those developed in the Basque Country as one of the most important areas of local economic intervention nowadays.
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