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There is increasing interest in the role academic institutions can play as catalysts of change within the territories in which they are located, by contributing proactively to shaping socio-economic development processes. This role for universities takes us beyond the typical focus on knowledge transfer activities or broad economic impacts. It highlights in particular the contributions of 'softer' disciplines such as management, economics, the humanities and public policy. This paper explores this proactive strategic role for academia in regional development by means of an analysis of a particular case of institutional entrepreneurship in the Basque Country region of Spain. The telling of such stories is critical if we are to reach a better understanding of the impact universities can have in their regions beyond a quantitative, market-focused analysis.

The discussion in this article focuses on how the gap between academic knowledge and regional development can be bridged, creating conditions for change processes between researchers and regional agents. Institutional entrepreneurs can create regional development organisations and research organisations, but in order to fulfil regional needs it is necessary to create processes where researchers and practitioners can connect and create a mutual change process. The analysis shows how new organisations have been used to create conditions for knowledge co-generation processes, a change in the language used and new work methods between researchers from Deusto University and Orkestra and regional actors over a period of 11 years in the Basque Country.