No mission without tension: governing trade-offs in regional innovation policy

Mission-oriented policies are central to addressing societal challenges, yet their regional implementation involves complex trade-offs. This paper develops a theoretical framework distinguishing tensions, binding trade-offs and dilemmas, and applies it to two strategies in the Basque Country region: Euskadi 2040 (regional level) and Etorkizuna Eraikiz (subregional level). We identify conflicts between growth, prosperity, inclusion, sustainability, cultural identity, welfare and governance. Our findings show that while some tensions can be managed through policy mixes, others require explicit prioritisation, highlighting regions as critical arenas for negotiating efficiency-equity dilemmas in mission-oriented policies.