Governance, institutions and innovation in rural territories: The case of Coruche innovation network

The paper presents the results of a research on governance and innovation dynamics involved in a Portuguese rural territory-Coruche, the so-called capital of cork. By presenting research on innovation dynamics using a particular raw material and a particular rural territory (Coruche), the research fulfils two objectives: (i) contribute to the extant literature, by addressing an empirical context that has been neglected by most innovation scholars, that is, rural territories and traditional sectors, namely agro-forest industry; and (ii) highlight different novelties and territorial dynamics related with cork production and transformation and governance aspects of this particular system of innovation. The use of a network analysis allows the characterization of this system, the different types of actors (multi-actor), their interactions framed by institutions, and operating at different territorial scales (multi-scale). The governance of cork-based activities in this territory includes important transformation companies, forest producers, professional and development associations, and public administration entities with competences in regulation and the development of the territory, including the management of European Funds. The local presence of a multinational enterprise introduces interesting issues related with its attachment to the territory including the creation of employment and the collaboration with local entities in activities and events related with cork production and transformation.