The capacity of places to build their development path and respond, operate and adapt to global transformations rest on a great diversity of factors but it is the local processes which are at the core of resilience of places. The economic, social and political processes that operate in territories create the capacities to collectively respond to pressing sustainability crisis and challenges. The capability of territories to decide on their own future can confront the increasing concentration of economic power in few strong economic players that unavoidably shape social and environmental issues too.
In this context, the paper departs from the discussion of how the pillars of interpretation, deliberation and practice feature in action research and then focuses on which ways deliberative policy analysis (DPA) can inform a distinct approach to action research for territorial capability building. This is done based on the long-term experience of Orkestra-Basque Institute of Competitiveness in AR projects with policy makers in Gipuzkoa (Spain) in the field of innovation, competitiveness and economic development. The approach to AR used in the case (Action Research for Territorial Development, ARTD) is constructed in the interaction of AR and innovation system literature. The main argument in the paper is that the innovation system literature, though very popular among policy makers, lacks the policy perspective. By integrating specific features of DPA in ARTD the authors argue that a new step might be taken to construct a distinct approach to action research that contributes to the construction of territorial capabilities and, consequently, to the challenges of sustainability.
