The entrepreneurial region? Evolving regional government roles in bioeconomy governance

The downscaling of environmental responsibilities poses new challenges for regional governments, necessitating an evolution in their roles to manage environmental policy alongside traditional local development duties. This paper draws on the concept of the entrepreneurial state and on the idea of the ‘entrepreneurial region’ to explore how local and regional governments implement bioeconomy policies and strategies, highlighting governance dynamics and assessing institutional capacity limitations in achieving sustainability outcomes. Our study focuses on the bioeconomy strategies in Lapland (Finland) and Västernorrland (Sweden), two sparsely populated, resource-rich northern regions where the bioeconomy is integral to regional development policies. We utilised qualitative data from semi-structured interviews, policy documents and relevant reports to address two key questions: How can we better understand the role of local and regional governments in regional bioeconomy strategies, and what implications do institutional capacity constraints have for sustainability outcomes? Findings indicate that the ability of regions to act ‘entrepreneurially’ is heavily reliant on the availability of competences, resources and vision. The notion of the entrepreneurial region illustrates that regional governments are increasingly expected to fulfil roles as coordinators, economic agents, market enablers and innovators, all of which necessitate significant institutional capacity. Although these roles foster opportunities for place-based innovation and bioeconomy advancement, they also expose tensions between mission-oriented goals and market-driven demands. Furthermore, uneven institutional capacities, fragmented governance structures and limited resources hinder the transformative potential of regional strategies.