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This chapter explores the role of colleges and universities supporting regional and national economic development with emphasis on leveraging innovation and entrepreneurship. Key focuses for economic development support from higher education include human resources development, technical assistance, capacity building, economic research and analysis, research, technology transfer, and new business development.

We investigate regional differences in the level and the development of regional new business formation activity. There is a pronounced variance of start-up rates across the regions. The level of regional new firm formation is rather path-dependent resulting in relatively small changes. The main factors determining the level of regional start-ups are innovative activity and entrepreneurship. These factors are also responsible for changes in the level of regional new business formation. The growth of regional demand and regional unemployment do not play a significant role for the change of regional start-up activity. Steering innovation and creating an entrepreneurial atmosphere could be an appropriate starting point for policy measures that try to promote start-ups. Our empirical evidence strongly suggests that such measures may have significant effect only in the long run.

This chapter emphasizes the importance of potential and realized capabilities in building and sustaining social innovations. We present an assessment of the drivers and barriers to the development of social innovation ecosystems through the use of internal (absorptive capacities) and external organizational capabilities (open social innovation). A particular emphasis is placed on social innovation outcomes and impacts. The capability approach is particularly useful for measuring social innovation impacts and investigating the “micro-meso-macro” of linkages that underlie the process of social innovation.

Our methodological approach measures social innovations’ outcomes and impact through an aggregative model, which takes into consideration different forms of capabilities that are engendered in the process of or as a result of social innovation. This methodology highlights the importance of social innovation drivers and contexts in which knowledge exploration and exploitation lead to the creation of capabilities that help social innovators to respond to unfulfilled social needs.

The research presented in this chapter provides a new perspective on how the capability approach can be used to assess and measure individual and collective actions when facing social challenges.

Our research supports and complements the findings of the EU project SIMPACT an acronym for “Boosting the Impact of SI in Europe through Economic Underpinnings,” by highlighting the processes and outcomes and SI impact measurement.

The measurement of social innovation outcomes and impact has gained importance for policy makers and constitutes a strategic tool for designing policies in support of social entrepreneurs, social investors, and private and public organizations which participate in cocreating and implementing innovative projects.

The research presented in this chapter sheds light on the “micro-meso-macro” linkages that foster social innovation ecosystems, and offer valuable tools and guidelines to researchers, practitioners, and policymaker in the field of innovation in general and social innovation in particular.

Purpose – The aim of this study is to inquire into the circumstances and mechanisms that drive temporary systems to become permanent organizations.

Methodology/approach – This study is based on a retrospective longitudinal case study (1980–1995) and informed by research on organizational path dependence. Our research object is SEMATECH, the leading global semiconductor manufacturing consortium.

Findings – This longitudinal case study of the research and development consortium SEMATECH shows how and under what conditions a project, once its initial objective had been achieved, managed to turn itself into a permanent organization, that is, it terminated its institutionalized termination. Based on our findings, we argue that the postponing of this specific project's institutionalized termination can be understood by adopting a path dependence perspective that allows for the capturing of self-reinforcing processes to account for the stability of the (once temporary) system.

Originality/value of the paper – In this chapter, we question the certainty put forward in organizational studies of projects concerning the ephemeral nature of projects due to their built-in termination mechanism.

Using the framework of the philosophy of science, this chapter explores some basic theoretical issues that must be recognized and addressed in developing theory within the competence perspective. We first develop an overview of resource-based and competence-based research to highlight some fundamental theoretical issues. We then identify a set of basic assumptions for conducting a research program focused on development of a “competence-based theory of the firm.” Working from these basic assumptions, we argue for a shift in the epistemological aim of competence theory development from explaining market success to explaining firm competitiveness. We explain how such a shift theoretical focus and approach can remedy the problem of circular reasoning often observed in resource-based thinking that tries to contribute to the competence literature.