The sources of knowledge are diverse, as each firm interacts with multiple actors in pursuing its mission: partners and strategic allies, suppliers, customers, competitors, specialist organizations such as knowledge-intensive business services, universities, technology centres, public research organizations, innovation intermediaries and public administration bodies. Different kinds of knowledge, both tacit and codified, are relevant for firms. Nevertheless, knowledge needs to be translated into the capacity to act. Hence, knowledge generation and absorption can be understood as two sides of the same coin and it is necessary to take factors that shape both facets into account, in addition to the relationship between the production, transfer and valorisation of knowledge. This article reviews crucial factors for knowledge in firms, aggregated as influential, contextual and internal. Influential factors are associated with knowledge tacitness and the existing knowledge base, whereas the internal characteristics of the firm are also crucial and concern aspects such as the existing innovation culture, leadership attributes and internal research and development capabilities. Finally, contextual factors, such as the territorial dynamics, are essential as environmental enablers for generating and absorbing knowledge. Together, these factors reinforce the dynamic capabilities of the firm and influence the decision to either engage in open innovation strategies or prioritize actions that protect and codify knowledge, thus affecting the firms’ competitiveness.

The state is facing turbulent times. Financial and economic turmoil, growing inequalities, disinvestment in public and social services, and political disenchantment are but a few problems that contemporary society is facing, while traditional policies are failing to deliver the desired results. Social innovation is a possible approach to deal with emergent social needs. Research and policy experimentation on social innovation increased in the last decade, but many questions remain open. One key interrogation regards the relation of social innovation with the state. How can the state, considering the multi-level interactions that necessarily exist between different stakeholders, promote these practices? Using the case of Portugal, and the recent implementation of a pioneer public programmed dedicated to social innovation—Portugal Social Innovation—, this article contributes to the understanding of the role the state in the promotion of social innovation and the challenges, tensions, and difficulties experienced by those involved in the sector, whether as practitioners of social innovation or as heads of public institutions responsible for assisting in the development and implementation of social innovations. The article presents data gathered from a focus group involving the representatives from key third sector associations and officials responsible for public institutions that support the implementation of social innovation at the relevant levels of government (national, regional, local). Results show opportunities and tensions between the third sector and the different levels of the state, and a difficulty to adapt the processes and practices of public administration to the dynamic and creative nature of social innovation.

Resilience is obtaining a considerable attention in social sciences. It has particular interest by regional studies as a bouncing forward characteristic of territories that are able to create new paths, based in their explicit and latent capabilities, to cope with shocks and disruptions. Inspired by the evolutionary perspective of resilience, this chapter debates the notion of resilience and presents its relevance to the understanding of innovation and knowledge transfer. Innovation is presented as a crucial collective process to create new possibilities to transform regional economies. Knowledge transfer, from public research organizations to firms, assumes a crucial function by structuring important networks, generating social capital and opening innovation to catalyze the social valorization of research results.

This chapter presents a case-study of tourism gentrification in a fishing town in Algarve, South Portugal. Olhão is a former industrial city that saw much of its fishing industry disappear since the 1980s. Over the last few years, hundreds of foreigners have moved into its historic centre. This rapid influx of citizens to derelict neighbours mostly comprised of old retirees and few active fishermen prompted a gentrification process. Olhão now faces the threat of mass displacements of its older and most vulnerable citizens, a fact that is worrying the foreigners that criticize the touristification of the city, with rents at historical highs and landlords forcing out the Portuguese residents in order to promote short-term rentals to tourists. The chapter presents the results obtained from an extensive mixed-methods research, ending with some notes about the future of the city and the implications that can be taken from this case.