Social Innovations and the Mountain Economy: The Case of 100% Valposchiavo and Its Influence on Small- and Medium-Sized Enterprises

Abstract

This article examines how social innovations influence the economic growth orientation of small- and medium-sized enterprises (SMEs) in mountain regions. Social innovations can help mountain regions solve local challenges by creating novel ideas to improve the situation. This, in turn, can have various effects on the mountain economy. However, there is still no consensus on the ways in which social innovations create economic impulses such as economic growth or even economic growth independence. This article aims to improve our understanding of social innovations and their impact on the local mountain economy. We examine the 100% Valposchiavo initiative, which aims to close regional value chains by bringing together economic actors in agriculture, production, and hospitality in a Swiss mountain region. In particular, the article examines the evolution of the initiative and its impact on local SMEs. We employed the novel method of innovation biographies and conducted narrative and guided interviews to examine the ways in which the initiative evolved and what its effects are on participating SMEs. The results show that 100% Valposchiavo induced potential growth effects through its focus on increased collaboration, whereas (re)localization created growth-independent effects. Some companies are growth dependent because of higher demand, junior management, modernization efforts, or a fast-growing market. The growth-independent companies pursue this strategy through personal contacts, their corporate philosophy, their management age, or their business form. Our study adds a postgrowth perspective to the discussion around the role of social innovations in mountain economies.