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Territorial servitization is a topic of interest due its impact on regional growth and innovation. Considering that the formation of new KIBS is a good indicator of such TS process and with the aim of contributing to the empirical literature on this topic, this study analyses to what extent the ‘manufacturing quality’ and ‘innovation environment’ profiles determined the different types of new knowledge intensive business services (KIBS).  The research tackles the creation of new KIBS in 17 Spanish regions for the period 2000 to 2016 in the respective regions. The results reveal that new KIBS were deeply affected by economic changes that happened as a result of the great 2008 crisis and some KIBS categories are more affected by the techno-economic environment than others.

Purpose This paper aims to analyze how integration into global value chains has impacted the evolution of the Basque machine tool cluster from the 1990s to the present day. Design/methodology/approach The study was carried out in three steps. First, a comparative analysis was made of the renewal process of the 1990s and the current situation. Next, a quantitative analysis was undertaken to test whether the cluster has entered a new maturity period, and finally, qualitative data was gathered about the past and present challenges facing the companies in the cluster. Findings The empirical evidence of the present study shows that integration into global value chains has led to a hierarchization of the strategic trajectories and performances of the companies in the cluster. Additionally, evidence of a sustained period of new maturity and decline has been observed. The period of maturity and foreseeable challenges of the coming years were mentioned repeatedly during the interviews. Research limitations/implications Although the participants in the interviews were relevant individuals with a broad view of the cluster’s situation, their limited number and the lack of representation of companies that closed down during the renewal process, despite the efforts made by the authors, could be considered a limitation. Practical implications This paper sheds some light on the renewal/transformation period facing the cluster. Several of the main challenges and two extreme, hypothetical scenarios are discussed. The companies in the cluster will have to establish a position somewhere between those two scenarios. Social implications This paper presents two possible cluster transformation scenarios. The authors offer suggestions as to how to go about transforming the cluster with a view to secure a better position for dealing with future challenges. Originality/value Using quantitative and qualitative data, the paper reflects on the hierarchization and decline of the Basque machine tool cluster and provides new insight into the transformation and renewal needs of the cluster in a globally competitive environment.

The article is written in the intersection of the fields of regional development and action research, which use different languages when referring to development. The first revolves around innovation revenues, market shares and competitiveness while the second focuses on emancipation, democratisation and empowerment. Based on an experience in Gipuzkoa, Basque Country (Spain), the case used in this paper tells us how a regional government, the Provincial Council of Gipuzkoa and eleven county development agencies are collaborating in order to avoid small firms falling behind in digitalisation processes. The main argument is that action research can help construct collaborative governance modes which, as well as helping specific firms become competitive, empower territorial actors as a collective subject that decides on its own future.