Purpose The purpose of this paper is to explore the link between collaborative governance arrangements for place-based competitiveness and public innovation. Design/methodology/approach The paper combines a conceptual discussion of the links between collaborative governance, competitiveness policy and public innovation with a case study analysis of a specific governance process that aims at adapting policy to respond to local competitiveness challenges in the Basque province of Biscay. Findings The conceptual discussion leads to the hypothesis of a new distinction with respect to how governance relates to public innovation. Innovation can occur in governance, through governance or with governance. The analysis of the case supports this distinction. Multi-actor collaboration for competitiveness policymaking (innovation in governance) has led to policy innovation (innovation through governance). This has also promoted emerging administrative changes that could be conducive to a more innovative public sector in general (innovation with governance). These findings validate arguments posed by proponents of collaborative innovation that suggest that multi-actor collaboration is a driver for public sector innovation. Originality/value The value of the paper rests on linking theoretically and empirically two relevant and currently popular phenomena: networked governance for place-based competitiveness policymaking and public sector innovation. The paper provides original insights from the practice of building a process for context-sensitive policymaking that can inspire practitioners with similar problems.
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