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Sustainable territorial development requires not only technical, but also social and institutional innovation. Promoting such innovation is the aim of the recent regional planning approaches, and it relies upon adapting the innovation processes developed in organisations. In this article, the relevance of this approach is discussed on the basis of lessons drawn from an action research conducted in a "fragile" territory: the "Alto Sertão do Piauí e Pernambuco", in the Brazilian Nordeste. Based on different elements taken from innovation theory, we analyze the results of this experiment and draw some insight in terms of public policy. We show the importance of building local competencies and strengthening the innovation capacity. One of the main challenges is the institutionalization of territorial governance arrangements.
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