Aligning regional and business strategies: Looking inside the Basque Country entrepreneurial innovation ecosystem

The current socio-economic scenarios have generated several challenges for any organisation. Regional authorities have designed policies that combine supply-demand needs and innovative entrepreneurship programs. The alignment between regional and business strategies has become critical to ensure the necessary resources, skills and capabilities in the region. This paper analyses the alignment of regional strategies (entrepreneurial innovation ecosystems) and business strategies (development of new entrepreneurial innovations). By adopting mixed theoretical approaches, we proposed a conceptual model to understand the role of institutional strategies on the definition of business strategies. Given the nature of this study, our methodological design combines a case study approach and an action research approach. Our results provide insights into the positive outcomes generated when regional strategies and business strategies are aligned


Introduction
The current social and economic scenarios have generated several challenges for any organisation located across the globe. Several authors have recognised that we currently were embroiled in uncertain times (Stiglitz, 2010;Soros, 2008). In Europe, a good example is the allocation of public resources on mechanisms for stabilising the economy, kick-starting growth, and tackling systemic risks. This allocation strategy holds particular significance when the business density in European countries is integrated by small and medium-sized enterprises (SMEs) that contribute 66.5% of employment and 57.8% of the gross added value generated by the private sector (Foray et al., 2012). In this vein, it is essential to acknowledge the critical role played by SMEs on entrepreneurship, innovation, employment and economic growth.
Therefore, the entry, the exit and survival rates are strongly related to the quality of environmental conditions (Porter, 1980;Urbano et al., 2019b).
Both policymakers and academics have paid attention to the ecosystem conditions that encourage entrepreneurial innovations and high-potential entrepreneurship (Guerrero and Urbano, 2019). In the European context, policymakers have encouraged the smart specialisation on sectors/technologies as a strategy to be competitive and entrepreneurial (Foray et al., 2012;McCann and Ortega-Argilés, 2011), and configure entrepreneurial innovation ecosystems (Autio et al., 2016;Acs et al., 2017). In this vein, several academics have provided insights about how authorities design policies by combining mechanisms that support supply-demand needs and by configuring the most favourable conditions to boost innovative entrepreneurship (Foray et al., 2012;Autio et al., 2016;Guerrero et al., 2019a). During the last five years, the entrepreneurship literature has focused on the elements that integrate entrepreneurial innovation ecosystems (Acs et al., 2017), as well as on the contribution of diversity in entrepreneurship across contexts (Urbano et al., 2019). However, little is known about the way policymakers' strategies and organisations' strategies are aligned, as well as about the required regional and organisational capabilities (Carayannis andCampbell, 2009, 2015;Leydesdorff, 2012;Guerrero et al., 2017Guerrero et al., , 2019c. This paper analyses the alignment of regional strategies (entrepreneurial innovation ecosystems) and business strategies (development of new entrepreneurial innovations). By adopting mixed theoretical approaches, we proposed a conceptual model to understand the role of institutional strategies (North, 1990;Acs et al., 2017) on the definition of business strategies such as open innovation (Chesbrough, 2003) or corporate entrepreneurship perspectives (Antonic and Hisrich, 2001). Given the nature of this study, our methodological design consists of two phases: (i) a case study methodology (Yin, 1984;Eisenhardt, 1989); and (ii) an action research methodology (Greenwood and Levin, 1998). Two levels of analysis integrate our research setting: at the regional level is the Basque Country (Spain), and at the business-level is the spin-off created by two SMEs located in the Basque Country. According to De Otazu and Díaz (2008), the Basque Country has been identified as an innovative, risk-taking and entrepreneurial region throughout history. The Basque entrepreneurial ecosystem is characterised by an entrepreneurial mindset, the ability to identify opportunities, supporting infrastructure, a record for attracting talent/investors and conditions to access to international markets (Porter et al., 2012). Given these characteristics, in the recent financial crisis, the Basque Country had one of the lowest unemployment rates in Spain (Orkestra, 2013;SPRI, 2012). Our results provide insights into the positive outcomes generated when regional strategies and business strategies are aligned.
The paper is organised as follows: Section 2 introduces the theoretical framework. Section 3 describes the methodology used in the study. Section 4 addresses the results obtained in this exploratory study. Section 5 discusses the findings in light of previous studies. Section 6 shows the implications for decision-makers and introduces further research.

Regional strategies and entrepreneurship ecosystems
In this manuscript, regional strategies are understood as the planning of actions/activities developed/implemented by regional governments to achieve their expected goals or satisfy the specific needs of the region (Blackburn, 2016). Institutions are the pillar of any regional strategy. This section explores the influence of institutions on the emergence of regional strategies as well as the influence of institutions on the configuration of entrepreneurship ecosystems.

An institutional perspective
According to North (2005), institutions are the driving forces behind social and economic development. Entrepreneurship literature recognises the role of institutions fostering entrepreneurial activity and producing an impact on the development of a region (Urbano et al., 2019a). Institutions are defined as "the rules of the game in a society" or, "the constraints that shape human interaction" (North, 1990:3). In this vein, there are formal institutions (laws, norms, regulations) and informal institutions (attitudes, values, culture). By adopting an institutional approach, it is possible to understand the conditional factors that influence entrepreneurial activity, as well as that shape entrepreneurial ecosystems in each region (Aidis et al., 2008;Audretsch and Keilbach, 2004;Guerrero and Urbano, 2011;Urbano et al., 2019b;Guerrero and Santamaria, 2020). Any entrepreneurial activity involves the perception of opportunities (Liñán et al., 2011;Guerrero et al., 2011), and channels which allow individuals/organisations to access the resources they need to carry out that innovative or 6 productive action (Baumol, 1990). According to Welter (2012), the environmental conditions that directly influence the individuals' intentions/actions are regulations (market, commercial, financial), norms (accepted values, behaviours and social standards) and cultural-cognitive rules (which represent how things are done).
By focusing on regulations, policymakers from advanced economies have experienced a gradual shift away from a "managed economy" towards an "entrepreneurial society" which reflects possible productive and social transformation through entrepreneurship (Audretsch, 2007). Consequently, governments have allocated public resources in the design/implementation of several strategies, policies and programs to promote regional growth efficiently via innovation and entrepreneurship (Guerrero and Urbano, 2019). The regional smart specialisation strategies promoted in the European Union during the last years is an example of aligning regional capabilities and regional priorities (Foray et al., 2012). The government initiatives for fostering entrepreneurship and innovation (European Commission, 2010; Europe 2020 Strategy) have also contributed to the development of entrepreneurship ecosystems' elements, as well as the interconnection among actors involved in the regional system (Cohen, 2006;Isenberg, 2010;Autio et al., 2016;Acs et al., 2017;Urbano et al., 2019aUrbano et al., , 2019b.

An eco-system perspective
An ecosystem (ecological system) comprises a biotic community, its physical environment, and all the interactions possible in the complex of living and non-living components (Tansley, 1935). Moore (1993) translated this concept into the management field as a metaphor for positioning the significance of relationships and interaction among suppliers, investors and customers for developing business activities. Then, Isenberg (2010) introduced this terminology into non-academic entrepreneurship audiences. Even though there is no consensus about the entrepreneurship ecosystem definition, previous studies have some conceptual agreements such as the interdependent relationships between different entrepreneurial actors that support entrepreneurial activities (Acs et al., 2017;Brown and Mason, 2017). According to Mason and Brown (2014, p.5), an entrepreneurial ecosystem could be understood as "a set of interconnected entrepreneurial actors (potential and existing), entrepreneurial organisations (firms, venture capitalists, business angels, banks), institutions (universities, public sector agencies, financial bodies) and entrepreneurial processes (business birth rate, high growth firms, serial entrepreneurs, entrepreneurial ambition) which formally and informally coalesce to connect, mediate and govern the performance within the local entrepreneurial environment" (p.5).
Based on this definition, Stam (2015) proposes a model that includes institutional arrangements (formal institutions, culture and networks), resource endowment components (the physical infrastructure, finance, leadership, talent, knowledge, intermediate services and demand elements), and the outputs (new value creation and captured by productive entrepreneurship).
By analysing the accumulation of knowledge about the ecosystems' elements, Cao and Shi (2020) argue that three logic constructs integrate regional entrepreneurship ecosystems: the interaction logic that emphasises the importance of structures and interactions among these structures (infrastructures, networks); the resource logic that underlines the allocation of resources and outcomes (the need, the access, the allocation); and the governance logic that recognises the necessity of system-and agent-driven perspectives to unlock entrepreneurshipdriven economic growth (design, implementation, agents, governance). Following these perspectives, the design and implementation of regional strategies are aligned to the proposed model of Stam (2015), the constructs proposed by Cao and Shi (2020) as well as to the 8 evolutionary stages of entrepreneurial ecosystems (Cantner et al., 2020). The literature has provided the foundations at the macro-level perspective which involves actions, strategies and contributions at the country or regional level. However, the micro-level perspective implies an in-depth analysis about how these general actions, strategies and contributions are made possible by the design of specific actions and strategies of business actors.

Business strategies and entrepreneurial innovations
In this manuscript, business strategies are understood as the fundamental characteristics of the match that a new/established organisation achieves among its resources, its capabilities, and the opportunities/threats in its internal/external environment that will enable it to achieve their goals/objectives (Chrisman et al., 1988;p. 414). Environmental conditions are crucial for designing/implementing business strategies, particularly if regional strategies represent new business opportunities or access to resources for enterprises. This section analyses the definition/implementation of business strategies based on the influence of regional strategies, institutions and ecosystems' elements.

An open innovation perspective
Entrepreneurial innovations occur as a result of interaction among different players (Von Hippel, 2009;Autio et al., 2014;Guerrero & Urbano, 2019). On the one hand, by the influence of uncertain environmental conditions, SMEs are not able to generate, manage and transfer knowledge/technologies. In these scenarios, an open innovation strategy allows small and medium-sized organisations to share risks/resources, develop entrepreneurial innovations, and capture value (Chesbrough, 2003;Gassmann et al., 2010;Guerrero & Urbano, 2019). In this vein, an open innovation strategy represents the ability of SMEs to collaborate with different agents involved in the regional entrepreneurial ecosystem (Chesbrough, 2006;Autio et al., 2014). On the other hand, regional strategies may positively influence the sensing, seizing and transformation capabilities of new/established businesses (Teece, 2012). We assume that the alignment of open innovation strategies to the regional strategies allows the exploration of new entrepreneurial and innovation opportunities (sensing), the access to resources and capabilities required to exploit these opportunities from partners (i.e., universities, scientific centres, Consequently, open innovation collaboration among actors enrolled in the entrepreneurial innovation ecosystem may generate externalities as regional capabilities that allow spillover effects as well as profitable outcomes (Autio et al., 2014).

A corporate entrepreneurship perspective
Corporate entrepreneurship represents the development of new entrepreneurial initiatives (i.e., the creation of corporate ventures under the organisational umbrella) as well as new entrepreneurial strategies (i.e., strategic entrepreneurship like the entry into new markets with new products/services) carried out by existing organisations to sustain competitive advantage (Antoncic and Hisrich, 20013;Burgelman, 1983;Covin and Miles, 1999;Guth and Ginsberg, 1990;Kuratko and Audretsch, 2013). In this vein, corporate entrepreneurship literature has found diversity in business strategies such as diversification (Burgelman, 1983), internal/external innovation processes (Guth and Ginsberg, 1990), the development of new products, new processes and administrative innovations (Covin and Miles, 1999), as well as the creation of ventures (spin-offs/start-ups) (Guerrero andPeña, 2013, 2019;Díaz et al., 2015).
As with any business strategy, corporate entrepreneurship will be highly influenced by external environmental conditions and internal resources/capabilities (Antoncic and Hisrich, 20013). Therefore, new/established firms located in regions characterised by favourable conditions towards entrepreneurship and innovation are more likely to develop corporate entrepreneurship initiatives (Bosma et al., 2013). The most favourable regional strategies for entrepreneurial innovation may significantly influence the re-definition of SMEs' corporate entrepreneurship strategies. It implies the development of entrepreneurial innovations aligned to the strategic priorities/objectives defined into regional policies, programs or initiatives. Consequently, at the organisational level, SMEs may develop an entrepreneurial culture as well as achieve a sustained competitive advantage (Bosma et al., 2013;Guerrero et al., 2019b). At the regional level, corporate entrepreneurship practices generate value added to the customer, increase competitiveness and economic growth (Antoncic and Hisrich, 2003M; Wennekers et al., 2008).
----Insert Figure 1 adobe here ---First, at the macro-level, the conceptual model helps us to explain how governments design regional strategies (actions, activities, allocation of resources, and goals) based on the priorities and the current institutional conditions. Directly or indirectly, these regional strategies will influence the (re)configuration of the entrepreneurial innovation ecosystem's elements (market, funding, culture, policies, human capital and business landscape, among others). Second, at the micro-level, the model helps us to explain how new/established organisations design business strategies (actions, activities, goals) based on their resources and capabilities and influenced by the external conditions (institutions, ecosystems and strategies in their region). Directly or indirectly, these regional strategies will influence business strategies during the exploration of entrepreneurial innovation opportunities, access to public/private resources in collaboration or alone, and the re-definition of their business innovation models depending on open innovation or corporate entrepreneurship practices. Consequently, the alignment of regional strategies and business strategies will achieve their specific goals, as well as generate impact upon the regional innovation/entrepreneurial ecosystem (what is known as an inverse or two-way relationship).

Methodology
Given our research objective, our methodological design consists of two phases: (i) a case study methodology (Yin, 1984;Eisenhardt, 1989); and (ii) an action research methodology (Greenwood and Levin, 1998). Two levels of analysis integrate our research setting: at the regional level is the Basque Country (Spain) and at the business-level is the spin-off created by two SMEs located in the Basque Country.

Qualitative approach (Case study -Phase 1)
Phase 1 focused on the case study methodology for understanding issues that are complex and have yet to be studied in depth (Gartner & Birley, 2002). A case study methodology helps us to explore the regional strategies implemented in the Basque Country as well as the challenges faced by SMEs when aligning business strategies with regional strategies/policies (Yin, 1984;Eisenhardt, 1989;Glaser et al., 2018).
Regarding the data collection, validity and reliability were ensured by collecting information from several sources. At the regional level, we used external sources of information that allowed us to identify the evolution of the regulatory frameworks in Europe, Spain and the Basque Country (see Appendix 1). Concretely, we combined official documents (Basque Country, SPRI, European Commission), regional reports sponsored by the government about entrepreneurship, innovation and competitiveness (Orkestra, 2013;Navarro et al., 2013), and publications (Porter et al., 2012;González-Pernía et al., 2015). At the organisational level, the criteria to select the participating SMEs were: (i) interested in using open innovation practices as a diversification mechanism, (ii) have shown a strong commitment towards the region when developing new business models, and (iii) interested in the regional strategies applied in the Basque Country (Gassmann et al., 2010;Antoncic & Hisrich, 2003). We collect information using: (i) semi-structured interviews with two entrepreneurs, two managers and eleven agents of the OPEN-ADF Consortium (researchers, local development agents, users) with a duration of around 90-120 minutes based on a semi-structured protocol; (ii) internal sources from the SMEs such as brochures, financial reports and estimates were consulted; and (iii) external sources such as reports from official organisations which are related to the company. Table 1 shows the main characteristics of the two SMEs analysed that created "OPEN-ADF".
----Insert Table 1 adobe here ---Regarding the data analysis, a database was created with the information obtained from interviews and secondary information at regional and organisational levels. A logical, inductive and triangulation analysis was developed (Yin, 1984;Eisenhardt, 1989;Glaser et al., 2018).
Concretely, the triangulation helps us to triangulate the perception of interviewees with secondary sources of information. In this vein, the data analysis enabled us to assess the diversification needs of each SME, as well as its alignment with policies/strategies in the region.

Experimental Approach (Action Research -Phase 2)
We complement our case study methodology by applying the action research approach. Action research is an established research method in social sciences (Lewin, 1946;Perry & Zuber Skerrit, 1992;Sankaran et al., 2002;Neergaard & Ulhøi, 2007) that adopts an abductive perspective. Even though it has been heavily criticised (Bawden and Zuber-Skerritt, 2002;Coghlan and Brannick, 2001;Greenwood and Levin, 1998;Eden and Huxham, 1996;Kotnour, 2011), the abductive perspective is a method to test new ideas or to make sense of new Action research combines participants (OPEN ADF Consortium) and researchers (university and research centre) to provide a balance between practical experiences and theoretical explanations (Neergaard & Ulhøi, 2007). During twelve months, action research approach was used to understand/learn how two SMEs' entrepreneurs/managers adopted smart specialisation regional strategies in the Basque Country (social inclusion) as part of their open innovation strategy (collaboration with entrepreneurial innovation ecosystems' agents such as local development agents, researchers from universities and centres, and potential users) and redefined a business model via a corporate entrepreneurship strategy (creation of a corporate venture). After a diagnosis, the participants employed the universal design to define a value proposition (Waller et al., 2013) which promotes the social inclusion of the elderly population.
Open innovation strategy allowed sharing resources/capabilities among SMEs, local development agents, university researchers, and users (Benkler, 2006;Chesbrough 2006;Fosfuri et al., 2014;Poetz and Schreier, 2012), and at the same time provided insights about theoretical approaches (open innovation, corporate entrepreneurship, entrepreneurial ecosystem). Consequently, the action approach increases the empirical/theoretical understanding of the designed entrepreneurial innovations among the OPEN ADF consortium (producers, researchers, customers, public promoters) (Clarkson and Coleman, 2013). On the one hand, the approach meets the goals of regional strategies (offer a suitable way to satisfy the needs of individuals) and the goals of business strategies (covers the customers' needs and business' sustainability) (Waller et al., 2013). On the other hand, the analysed SMEs discovered the critical role of open innovation for improving business' capabilities and for creating competitive advantages that could be sustained over time (see Appendix 2).

Regional strategies and entrepreneurial ecosystem
According to Navarro et al. (2013), after becoming an autonomous Spanish region in 1980, the regional strategies of the Basque Country were defined by the regional government. Three stages characterised the autonomous era of the Basque Country. In the 1980s, the government focused on restructuring the industry. In the 1990s, the government aimed for quality and efficiency in factors affecting competitiveness. In the 2000s, the government strategies centred on R&D, innovation, diversification and international expansion. Over the last decade, government intervention was efficiently coordinated with measures implemented in other regions (the European Community and Spanish State). Promoted by the European Union, the Regional Policy 2020 was oriented towards smart growth based on a smart specialisation strategy (SEC 1183, EC 2010. In other words, structural funds will be allocated to transform regional economies. The goal is to achieve economic transformation based on an alignment between innovation, research and business initiatives (Basque Government, 2011: 65-82).
According to this regional strategy, the sectorial diversification will focus on two priority areas: (i) by markets: ageing, the digital world, science industry, transport and mobility, and energy; and (ii) by cross-cutting skills: bioscience, advanced manufacturing and nanoscience.
Regarding the ecosystem, the most favourable conditions towards entrepreneurship and innovation in the Basque Country have been physical/professional infrastructures, governmental aids/programs, public policies, while the less favourable conditions have been social norms and entrepreneurship education in primary/secondary schools (Peña-Legazkue et al., 2019). According to the institutional approach, the majority of formal conditions (infrastructures, policies, public programs) are the most favourable conditions concerning informal conditions (culture and social norms). By contrasting the evolution of regional strategies, we could observe that these strategies have established the bases of the most favourable elements of the entrepreneurial ecosystem (Appendix 1).

SMEs strategies
According to the interviews, once Company A and Company B shared their capabilities, expectations and strategic objectives, both SMEs' managers identified synergies in their aims: the creation of products/services to assist physically disabled customers. This aim has been influenced by the priorities defined by the Basque Government strategies. Based on these synergies, the SMEs decided to create a consortium to reduce risk and optimise investment.
Regarding business capabilities, Company A contributes to commercial/networking capabilities, while Company B contributes to technological knowledge. By adopting the premises of the open innovation approach, to ensure the required resources/capabilities, the SMEs created the Open ADF Consortium with the participation of different agents involved in the regional entrepreneurial and innovation ecosystem. Concretely, Figure 2 shows that the Consortium was integrated by the two SMEs (Company A and Company B), university research centres (knowledge producers), a local development agency (public financial support), and several associations for elderly and physically disabled individuals (the potential users). This Consortium implemented two phases: the identification of opportunities (phase 1) and the design of the new collaborative business model (phase 2).
---Insert Figure 2 adobe here ---Influenced by the regional strategy, in the first phase (sensing/seizing entrepreneurial innovation opportunities), the consortium explored the physical disability assistance sector.
Concretely, this section was related to the design and manufacturing of products/services used to replace, increase, maintain, compensate or improve the functional capacities of individuals with impairments or disabilities (issues with motor, sensory or cognitive ability). In this vein, five actions were implemented: (i) analysing the new trends of the physical disability assistance sector as well as identifying trains on physical and motor-osteoarticular disorders that affect the upper limbs (García et al., 2002); (ii) identifying lead users and players in the sector; (iii) determining which physical needs of disabled people are not met and which potential solutions are available on the market (Savage et al., 1991); and (iv) defining the entrepreneurial innovations to be manufactured, the required skills and resources, as well as the new business model.
In the second phase (creating value of entrepreneurial innovation opportunities), the redefinition of the way to capture the value created and the specific market segment were the next stages. On the one hand, the value proposition represented the extended solution designed for each customer. It implied the development of prototypes that should be tested by the endusers. During the project, two functional prototypes were created by adopting co-design and testing sessions with lead users. On the other hand, the customer segment was defined based on the prototypes. The needs of each segment were considered to be hierarchically different. For example, the extreme users (disabled person) respond to deficit needs and require specific prototypes, whereas the average users satisfy their needs with a general prototype (Clarkson and Coleman, 2013). Therefore, it is essential to transfer the entrepreneurial innovations' value into a business model that satisfies the end-user (see value and impact) and the customer/distributor (justification of costs).
In the third phase (implementation), both SMEs carried out an internal analysis of the process for implementing the new business model. This model involves the creation of a new company (an independent legal entity with its rights) with the available resources for starting the entrepreneurial innovation initiative. The implementation/consolidation of the new Open ADF was characterised by critical/challenging elements: ensuring the financial capacity, the definition of an organisational structure, the definition of organisational routines, the inclusion of the consortium partnerships, and a new entrepreneurial innovation business model. Figure 3 shows the process of aligning regional strategies and business strategies. Diverse stages and participants integrate this process.

Strategic alignment between regional and SMEs
---Insert Figure 3 adobe here ---At the business level, the managers of both companies developed a strategic reflection process in order to define their priorities and map out their strategic focus. This process included an analysis of the institutional conditions (both globally and in their specific sector) and the current/potential resources and capabilities. It required a strategic focus that would enable them to harness their current strengths, using them as a foundation to build a new competitive advantage and continue to grow and develop. In this study, their strategic objective was to penetrate a specific niche in the market associated with inclusive regional strategies: elderly individuals.
At the entrepreneurial ecosystem level, the premise was to learn/improve entrepreneurial innovation capabilities based on the local development agency requests. Based on individual strategic reflections, companies A and B identified/complemented their resources/capabilities by pursuing a joint business strategy. The local development agency and research centres were focused on ensuring the achievement of the regional strategic priorities. The open innovation strategy helped to diversify their initial strategy with the support of the agents involved in the regional entrepreneurial and innovation ecosystems (Development Agency, Research centres related to management and design, lead users, customers).
The case study helps to reflect on the contribution to regional ecosystems' agents and SMEs actors when they are aligning strategies and objectives by adopting the criteria established by the Basque Science, Technology and Innovation Plan 2015 (ageing market as the core priorities). This convergence was made possible by the active participation of actors involved in the entrepreneurial and innovation ecosystem.

Discussion
Aligning regional and business strategies present a significant challenge for players in any entrepreneurial innovation ecosystem (Day, 2003;Dalton and Dalton, 2006). In this vein, our findings show three relevant insights.
Firstly, the critical role of public/private intermediaries in the effectiveness of the entrepreneurial innovation ecosystem. Previous studies have recognised that research centres have been an essential catalyst in socio-economic development (Carayannis and Campbell, 2009;Isenberg, 2010;Mccan and Ortega-Argilés, 2011;Leydesdorff, 2012;Armanios et al., 2017;Guerrero and Urbano, 2017). In particular, our insights contribute to the academic debate about the effectiveness of public policies (Guerrero and Urbano, 2019;Guerrero et al., 2019a) as well as on the crucial role of intermediaries on the evolution of entrepreneurial innovation ecosystems (Cantner et al., 2020;Cao and Shi, 2020). According to Vonortas (2002) and

Conclusion
This paper analysed the alignment of regional strategies (entrepreneurial and innovation ecosystems) and business strategies (development of new entrepreneurial innovations). By adopting mixed theoretical/methodological approaches, our conceptual model was analysed at the regional/individual level in the context of the Basque Country. Our results provide insights into the positive outcomes generated when regional strategies and business strategies are aligned among different agents enrolled in the entrepreneurial innovation ecosystem.
Our study has some limitations that may be the basis for future research agenda. Firstly, the role of intermediaries (local development agency) requires robust analysis, particularly the critical role of intermediaries in helping the economic entities that participate in the process to understand regional strategies. A natural extension of this study is an extended analysis of intermediaries supporting SMEs at national, regional and local levels. Secondly, the participation of market users requires a robust analysis given their substantial contribution during the configuration of the product and implementation of the business strategies. This argument is associated with the idea of an "entrepreneurial society" characterised by the need for productive and social change that should introduce these open innovation practices as part of the business and regional strategies (Audretsch, 2007). Thirdly, a robust analysis of the coherence between business and regional strategies, which has played a crucial role in terms of access to low-cost funding (subsidies), is also required (Guerrero et al., 2019a(Guerrero et al., , 2019b. Another issue to explore is associated with the most challenging task for companies today, that is, gaining access to the resources which are required in order to launch the business strategy.
SMEs work on the assumption that coherence between regional and organisational interests can have a positive impact on the process of obtaining such funding. It is essential to note that a critical factor of the assessment that takes place in competitive processes, especially in those which feature the participation of policymakers, is the presentation of business initiatives which directly respond to the strategic challenges of developing a region. Definition of the business strategy based on the regional strategies

Implementation:
Open innovation practices with internal and external actors

Marketing:
Definition of new business models (entrepreneurial innovation initiatives)

Benefits:
a. Performance b. Growth c. Regional impact Organisational level: design of business strategies Regional level: design of strategies for supporting priorities that also influence the configuration of ecosystems' elements

Institutions -Regional ecosystem
(the quality of formal and informal conditions determine the nature of the entrepreneurial and innovation ecosystem)

Characteristics and assessment of the organisation
Definition of the business strategy based on the regional strategies

Implementation:
Open innovation practices with internal and external actors

Marketing:
Definition of new business models (entrepreneurial innovation initiatives)

Benefits:
Performance Growth Regional impact

Management is involved in innovation
Innovation management is a topic which is included in the agenda of the Executive Board, but the management still does not have significant involvement in innovation activities.
Innovation management occasionally features in the agenda of the Executive Board.

Coherence between strategies and managerial behaviour
The company is firmly committed to innovation, but collaboration between departments is not promoted in the framework of innovation initiatives.
Collaboration between departments is promoted in the framework of innovation initiatives

Communication
The organisation does not communicate its policy, strategy, objectives and goals with regards to innovation.
Cases in which innovation-related content has been communicated through information provided by management have been few and far between. Capacity for change Several organisational changes have arisen as a result of being required to implement innovation management strategy and policy effectively, but the scope of these has been limited.
Several significant organisational changes have arisen as a result of being required to implement innovation management strategy and policy effectively.

Strategy
Mission and vision Strategic objectives related to innovation have been set out, but without being translated into specific action.
Strategic objectives related to innovation have been set out.
The strategy is outward-looking In commercial network operations, the most significant events are reported to the company by monitoring procedures. The company also has steady information about the competition and the development of markets. However, it has not systematically identified the environment.
The company has steady information about the competition and the development of markets. When reviewing the strategic plan, the company has taken into account information related to the environment that has been systematically identified.
Innovation as an essential strategy of the company The company strategy is proactive with regards to innovation. As a result, the company has launched business initiatives that break the status quo within its sector. It has also identified an opportunity for business diversification, thereby taking advantage of its strengths (knowhow).
The strategic planning process considers factors related to innovation and technological development, including measures with budgetary appropriation and an estimation as to their impact.

Coherence between strategy and systems
The procedures for implementing objectives include those related to innovation. However, the systems for measuring performance and recognition do not feature criteria related to innovation.
The Management Plan outlines interdepartmental objectives with regards to innovation.

People and participation
People management Innovation needs are identified, but they are not fully incorporated into selection plans: they only consider the development of individuals' innovation skills on an occasional and sporadic basis Innovation needs are identified, but they are not fully incorporated into selection plans: they only consider the development of individuals' innovation skills on an occasional and sporadic basis. Involvement and acceptance of responsibilities The organisation is contemplating the development of more open control systems, where individuals have increased freedom about action and more decision-making power.
The organisation is contemplating the development of more open control systems, where individuals have increased freedom concerning action and more decision-making power (initial stages). The tasks assigned to individuals may be either general or specific and have much variety. These involve innovative action.

Reward and recognition
There is no structured recognition system in place that includes innovation as a factor. The system for measuring performance in the company features criteria related to innovation and strategic objectives.

Innovation culture
There is an active culture of experimentation within the company. Innovation is viewed as a responsibility in which customers and suppliers must be involved Innovation is viewed as being the responsibility of a small team.

Satisfaction of individuals There is little or no reference to factors which boost the satisfaction and involvement of individuals
The company is aware of the factors which promote satisfaction within the firm, but innovation does not resolutely feature in the improvement measures.

Collaborative Networks
Customer focus Specific operational agreements are made with the customer in order to improve the quality of service There is a plan in place to incorporate incentive mechanisms to ensure continued custom. Specific operational agreements are made with the customer in order to improve quality of service.

Awareness of customer needs
The company has implemented a system for compiling and analysing customer suggestions and complaints. The company contacts the customer afterwards in order to request information about company innovations and how they respond to their needs There are stable relationships with current and potential customers in order to understand their needs, as well as gather the relevant information to establish how the customer views the actions of the company. Cooperation with suppliers The company occasionally collaborates with its leading suppliers on projects to improve operations or the development of products and services: Specific operational changes suggested by suppliers have been adopted.
The company has no formal mechanism in place for evaluating the competence of its suppliers. Apart from providing material and technical services, suppliers do not participate in any other projects of mutual interest. Collaboration with players in the field of science and technology No possible opportunities for collaboration with external players or knowledge providers have been identified.
The company has occasional, non-deliberate contact with universities, technology centres and other players in the field of science and technology.

Organisation and roles
The descriptions for managerial responsibilities include tasks that relate to innovation. The company is beginning to use the first multidisciplinary teams involved in innovation on a sporadic basis The company is beginning to use the first multidisciplinary teams involved in innovation on a sporadic basis.

Systemic management of innovation processes
The processes for managing innovation have been established, and they include indicators related to performance, although there is no system in place for monitoring implementation The processes for managing innovation have been established and they include indicators related to performance, although there is no system in place for monitoring implementation. Scorecard There is the sporadic measuring of some critical indicators Objectives have been established for the main spheres of innovation, and these are used to make a comparative assessment of the results obtained. Generation of innovative ideas Innovative ideas are collected and analysed, but they are not managed in a sufficiently structured way Small-scale experiments are promoted in order to test the feasibility of concepts suggested by employees.

Innovation in operational processes
Initial work is being carried out into researching and gathering information in order to identify new process technologies The organisation has addressed redesigning its key operational processes by incorporating significant organisational and technological innovations. The company makes continued investment in order to improve operational processes and organise working methods. Innovation in the product or service The company makes small improvements to its range of services. Information is recorded with regards to the quality of service and performance throughout the cycle.
The company regularly launches new ranges of services, incorporating incremental improvements, new features or functions

Innovation in management processes
The company is starting to research innovative organisational methodologies in order to put them into practice possibly.
The organisation has addressed redesign with regards to some of the critical processes of its business management.

Financial and economic resources
The Management Plan includes a budget for innovation, but this is employed erratically over time The Management Plan includes a budget for innovation, but this is employed erratically over time.
Infrastructure and equipment The company has material resources which are underused The company systemically plans for the addition or renewal of material resources. The company takes full advantage of its material resources, and the rate of use is high.

Information and communication technology
The scope of ICT is restricted to internal business processes The company makes significant and continued investment in ICT.

Technology management
The current technology base is exploited Limited knowledge of sources of external expertise and the possibility of suppliers providing technology The company has significant knowledge of sources of expertise Technology transfer Little or no contact with sources of technology transfer Links have been forged with external players in order to receive technology Management of Intellectual Property Property management is an essential element of industrial, commercial or market positioning strategy The company has made contact with licensing and technology experts in order to evaluate the protection of technological property.

Market
There is some unverified understanding of the market size, share and segmentation. There is some unverified understanding of the market size, share and segmentation.

Competitors
There is some knowledge as to local competitors and appreciation of the strengths and weaknesses of global competition The company has information about its leading global competitors and the implications are understood, although no response strategies have been formulated.

Socio-Economic Context
Changes in consumer trends are analysed and taken into account when making decisions about services and markets The company assesses the economic environment in order to ascertain the impact on the business before making decisions.