Effects and responses of peripheral regions to financialization: Exploring an extension of the cluster approach

This article examines the implications and potential responses to financialization in peripheral regions, aiming to impact and boost the economic development of financial activity linked to the territory's needs. It uses a case analysis based on an action research process in the Basque Country. The results show that collaboration within peripheral regions can strengthen their local financial centres. We find learnings related to (i) the process of creating a new policy instrument; (ii) identifying specific challenges and opportunities for collaboration linked to the main consequences of financialization; and (iii) the role of the public sector in creating the conditions for a successful cluster-type policy that targets public-private partnership. The originality of the study lies in its focus on an understudied area, namely, the regional and peripheral financial centres. The experience analysed may be of interest to the academy as it is an innovative policy process in a peripheral and highly industrialised region.