Innovation security of cross-border innovative Milieu

Innovative milieu is an elusive networking scheme established within geospatial, socio-economic, institutional, and knowledge types of boundaries that enable the actors involved to excel in particular field(s) of activity. Generally these are high-tech sectors of the economy, the so called smart and creative industries that are highly reliant on human capital, knowledge, and competences. Gradual expansion of interregional and international ties increases the possibility for synergies, fostering network diversification and intra-regional overspecialisation all at the same time. Along with numerous positive externalities, such as avoidance of the cognitive lock-in effect, regional clusters of excellence become dependent on their external counterparts, either within national or international domain. This dependence is caused by utilization of shared science and technology facilities, interdependent production processes, complementary technologies, etc. Unforeseen circumstances, such as temporal economic sanctions and product embargo can affect the sustainability of the innovation activity in the region and create structural holes along the value chain. Regional innovation policy should account for possible threats to the regional as well as national innovation systems. In this paper we examine different scenarios for the development of innovative milieus across borders. The study draws upon cross-border cooperation initiatives of European border regions, featuring brief case study examples for each of the negative development scenarios identified. There are three major types of threats to innovation security of a border region determined: a) disintegration and decay, b) internal asymmetries, c) unilateral integration initiatives. The article concludes with policy recommendations on innovation security strategy for the borderland regions. © 2018 by author(s) and VsI Entrepreneurship and Sustainability Center.