Transcript Global Entrepreneurship Monitor (GEM)

TRANSFORMING REGIONAL ECONOMIES:
INNOVATIVE PRACTICES
An analysis
or
BUSINESS AS USUAL ?
Prof. Panos H. KETIKIDIS, BSc, MSc, PhD
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About the presenter
Professor Panos H. Ketikidis, PhD
Department of Computer Science
The University of Sheffield International Faculty, CITY COLLEGE
Vice Principal
Innovation, Research and External Relations, CITY COLLEGE
Chairman
South East European Research Centre (SEERC)
President of the Triple Helix Association
Chapter of Greece
Emeritus President
The International Society of Logistics
Editor in Chief
The International Journal of Innovation and Regional Development
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Outline of the presentation
Why Innovation / innovation metrics
Regional Development (RD) / Issues in RD
Possible Solutions / what it can be done ?
Recommendations
Conclusions
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Competitiveness, Innovation,
Knowledge
Explain the differences among creativity,
innovation, and entrepreneurship.
•
Creativity is the ability to develop new
ideas and to discover new ways of looking
at problems and opportunities.
•
Innovation is the ability to apply creative
solutions to those problems and
opportunities to enhance or enrich
people’s lives.
•
Entrepreneurship is the ability of the
entrepreneur to succeed by doing things in
an innovative way.
Why to Innovate ? The context
to solve a
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new product
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create
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for
im
ys
ea
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existing
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new markets
me
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new jobs
m
o
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ain
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an
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leads to
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ak
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alth fo
tes we
p a ys
m
creativity
se
problem
customers
Innovation scoreboard
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Note: Average performance is measured using a composite indicator building on data for 24 indicators going
from a lowest possible performance of 0 to a maximum possible performance of 1. Average performance in
2011 reflects performance in 2009/2010 due to a lag in data availability.
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(Source: 2013 EU – Enterprise and Industry)
Click for
details
Situation in Bulgaria (1/2)
Source: Going for Smart Growth report January-12, World Bank
Situation in Bulgaria (2/2)
Source: Global Competitiveness report 2011-12, World Economic Forum
Dynamic performance and convergence trends
in innovation in the EU-27 and other countries
EU27 average growth
rate in 2005-09
0.750
Innovation performance (SII 2009)
0.700
Innovation leaders
0.650
SE
FI
0.600
0.550
Denmark, Finland, Germany, Sweden,
UK
CH
Austria, Belgium, Cyprus, Estonia,
France, Iceland, Ireland, Luxembourg,
Netherlands, Slovenia
DE
UK
DK
AT
LU
0.500
FR
BE
IE
NL
Innovation followers
EE
IS
CY
SI
0.450
CZ
0.400
NO
0.350
PT
ES
Moderate innovators
IT
HU
0.300
HR
PL
GR
MT
SK
Czech Republic, Greece, Hungary, Italy,
Lithuania, Malta, Norway, Poland,
Portugal, Slovakia and Spain
LT
RO
LV
0.250
TR
BG
Bulgaria, Croatia, Latvia, Romania,
Serbia and Turkey
Catching up
0.200
0.150
0.0%
EU27 innovation
performance in 2009
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
Average annual growth in innovation performance
Note : colour coding matches the groups of countries: green are the Innovation leaders, yellow are the Innovation
followers, orange are the Moderate innovators, blue are the Catching-up countries. Average annual growth rates as
calculated over a five-year period. The dotted lines show EU27 performance and growth.
The financial crisis
Visible outcomes
•
•
•
•
•
•
•
Less public resources
Volatile markets
Harsh economy
Business closure
Unemployment
Increased debt levels
Social crisis
(Source: Ketikidis, Innova Berlin, 2011)
The financial crisis has raised
critical questions as to whether
the current economic and
development models are still
able to reinvigorate the
competitiveness of European
regions ?
Questions – Financial crisis
• How can regions hit by the crisis transform their
structures by better exploiting their non-tangible
assets?
• How to capitalize on the strengths of the existing
business eco-system to support this process?
• What are the Global Challenges ?
Global issues (1/2)
• Finding solutions for clean energy sustainability
• Wellbeing and assisted living. Health and ageing
• Finding solutions for climate change
• Providing safer water supplies & Food sustainability
• Managing demographic shifts
• Waste management & Green mobility
• Improving security
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Global issues (2/2)
• Transparency and trust on the political system
• Trust in the public administration
• Citizens mass participation
• Behaviour transformation
• Sense of belonging and identity
• Social inclusion and social integration
• World stability and Crisis of the world financial system
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Regional and economic
development (1/2)
• Regional development is about transforming a region or
locality, economically as well as socially.
• Berglund and Johansson (2007, p. 502) underline that
“regional development is about social change and
transformation, and, as change means to go from something
stable and known to something less stable and more unknown
we could imagine there are – depending on the degree of
stability – lots of interaction among the people involved”.
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Regional and economic
development (2/2)
• Simplified, Economic Development is about growth in GDP
and local income and net job creation and growth.
• Social regional development on the other hand may
contribute to:
 (i) regional learning (Florida 1995)
 (ii) “the development of cooperation, solidarity
participation and trust within a region by bringing various
groups and institutions together” (Seidl et al. 2003, p. 343), and
 (iii) the creation of pride in and support for the region, its
heritage and its economy (Anderson 2000a).
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Three types of regions
Type 1 – Peripheral regions
* traditional industries, low technology services sector and an
income below the national average.
Type 2 – Old industrial and decline
* old industrial regions under restructuring, with medium level
incomes.
Type 3 –Central regions
* relative high income economies and a pool of highly qualified
human capital resources.
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Issues in regional development (1/2)
• “How can regional development policy respond to the challanges
of a global, informational and networked economy “ (COLLABS, 2009)
• Is there a “transition from an industrial to a knowledge based
society” to overcome the crisis ? (Etzkowitz & Ranga, 2009)
• Do geographical borders between regions represent actual
barriers to economy or the business sector defines its own
application regions governed by its skills and competencies ? (COLLABS,
2009)
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Issues in regional development (2/2)
• How can development policies be global, national and local in
the same time ? (COLLABS, 2009)
• What interrelationships between different actors must appear ?
(COLLABS, 2009)
• Do current regional policies provide incentives for effective
innovations ?
• How can economic disparity among regions can be mitigated so
that poorer regions can be helped to overcome the crisis better ?
(Shankar & Shah, 2009)
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How to overcome these issues ?
EFFECTIVE POLICY
INNOVATION
GROWTH
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Thus, the main question:
Could traditional Economic and Development
models apply to emerging needs of the European
regions ?
• Can we still model the current models ?
• Are other business models needed ?
• Can we use models from other disciplines ?
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Think about it !
‘We are not students of some subject matter, but
students of problems. And problems may cut right
across the borders of any subject matter or discipline’
(Popper, 1963)
Innovation and the economy
• Old model for business success (efficient utilisation of capital
and labor) - no longer relevant in the next phase of the
economy.
• The new emerging - the creation and application of innovative
products, services and business models to serve the ever
changing world.
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The issue…
The financial crisis has raised critical questions as to
whether the current economic and development models
are still able to reinvigorate the competitiveness of
European regions, notably that are least performing and
often characterized by predominance of traditional
manufacturing industries and low-tech services.
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What can it be done ? (1/3)
Not simply switching from traditional
manufacturing or low to high-tech services
to
advanced
• Encouraging upgrading and innovation across existing areas of
regional economic activity
– For instance, low performing European regions, such as those
in SEE, must upgrade the level of entrepreneurship through
the dissemination of technological developments, training in
new technologies and improving the institutional
environment for firms
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What can it be done ? (2/3)
• To achieve this, the only real way forward for lagging regions is
to upgrade towards more knowledge-based economies.
• Through sustained exposure to international practices in other
regions, particularly through regionally focused projects, such as
those supported by the European Commission.
‘REGIONAL RESILIENCE’
Latin root – resilire – to leap back or to rebound.
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Regions of knowledge - WHAT
“The "Regions of Knowledge" responds to a need at
European level to increase the overall capacity of
regional players in enhancing innovation based on
science and technology based development in full
compliance with the priorities of the Europe 2020
strategy.“ (Jansen, 2012)
REGIONAL PURPOSE
“Its4 purpose is to enable regions to strengthen their
capacity for investing in and conducting research and
technological development activities in a way which can
contribute significantly to economic
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development.“ (Jansen, 2012)
Click for
details
Regions of knowledge - HOW
• Promote the emergence of world class clusters in Europe
• Create synergies between research, innovation and regional
development policies (Jansen, 2012)
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Click for
details
Also, focusing on the Triple Helix
Model (1/2)
•
Triple Helix of “Universities-Industry-Government” was introduced
by Etzkowitz* (1996). He sees University-Industry-Government
(UIG) relations as an interwoven network of relationships among
the three actors that influence each other.
Prof. Henry Etzkowitz, Stanford University, USA; President of
the Triple Helix Association.
• TH model widely
accepted by
policy-makers !
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Also, focusing on the Triple Helix
Model (2/2)
• University Industry Government (triple helix) interactions are the
key to the fast paced development of the knowledge based society
(i.e. western/northern EU countries, Silicon Valley)
(Semlinger, 2008; Etzkowitz & Leydesdorff, 2000; Etzkowitz, 2003a; Etzkowitz, 2003b; Cooke & Leydesdorff, 2006;
Farinha & Ferreira,2013)
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From Triple Helix “spheres“ to
“systems”
Innovation through dynamic, non-linear transitions
between the TH Spaces
Consensus Space
Government
Industry
University
Innovation at the
intersection of U-I-G
Etzkowitz and Leydesdorff (2000)
Innovation Space
Knowledge Space
time
Ranga and Etzkowitz (2013)
Triple Helix - Dissemination and
Networking
• Last conference finalized with great success in London !
– Theme: Bringing businesses, universities and governments
together to co-innovate and solve economic, social and
technological challenges
• Next Conference - in Tomsk, Russia at TUSUR University in 2014.
Useful Case studies sources:
– Wilson Review
– European Commission (University Business Cooperation case
studies)
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THA Chapter of Greece (1/2)
• The THA Chapter of Greece aims to:
– promote analyses and studies on the TH interactions
aimed at translating academic models into practical
achievements
– provide a common discussion framework for TH actors in
order to engage in regional development
– boost the innovation capacity, encourage and support
entrepreneurship and fight the regional brain drain
CO-PRODUCE with all the stakeholders !
Chapter of Greece
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Innovation models
OPEN INNOVATION
LIVING LABS
THE MOSH PIT MODEL
INNOVATION ECOSYSTEMS
INNOVATION CLUSTERS
FAST TRACK INNOVATION
MAINSTREAM INNOVATION
...
Scenarios
Scenario 1a Scenario 1b
Scenario 2
Scenario 3
Opinion visualisation
Living Labs
Crowd-sourcing
Simulation
Social networking
Mass collaboration/innovation
Scenario 6
Scenario 5
Scenario 4
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Scenario 1
CITIZENS’ STRONGER INVOLVEMENT IN POLICY ISSUES
•A complex societal problem is to be
solved
•Citizens can input solutions into a tool
which is able to process them
•Among 10,000 suggestions analysed,
the system identifies the best – or a
combination of the best
•The solution chosen helps deal with the
problem. Collaborative solution of a
complex problem
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Scenario 2
LIVING LABS: A POSSIBLE SOLUTION FOR REGIONAL DEVELOPMENT
 Living Labs
“open
eco-systems
engage
and
motivate
stakeholders, stimulate collaboration, create lead
markets and enable behaviour transformation”.
 Territorial Living Lab
“integrally applies the Living Lab approach to a
territory and its citizens, its governance model, and
its strategic plans for the future; in essence, it is a
new model for regional development ” (MedLab, 2011)
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Scenario 3 (1/2)
CREATIVE COMMUNITIES
The “Crowdsourcing” model
• Three main layers compose the innovation environment:
• creative people
• rules for collaborative innovation
• virtual spaces and digital media
• This is a common perspective of innovation combining bottomup people driven, ICT-enabled processes
• which is beyond the institutional paradigm of innovation
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Scenario 3 (2/2)
CREATIVE COMMUNITIES
New
innovation
environments
composed of three layers: (1)
creative people, (2) rules for
collaborative innovation, (3) virtual
spaces and digital media
New innovation: bottom-up, peopledriven, ICT-enabled processes.
Distributed knowledge; Distributed
problem-solving; Crowdsourcing;
Embedded spatial intelligence
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To consider: (1/3)
HOW CAN REGIONS HIT BY THE CRISIS TRANSFORM THEIR INDUSTRIAL
STRUCTURES BY BETTER EXPLOITING THEIR NON-TANGIBLE ASSETS?
• Identification of regional stock and flow of knowledge and then
utilising, transferring and commercialising these assets
• Key part of this culture relates to ‘risk-taking’, with many
regional stakeholders – both public and private – still averse to
investing time and resources in innovation, with a resulting lack
of risk capital.
• The non-tangible assets are key drivers to operate this
transformation and it is precisely these factors which need to
be addressed if regional economies are to effectively exploit
their intangible capital.
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To consider: (2/3)
HOW TO CAPITALISE ON THE STRENGTHS OF THE EXISTING
BUSINESS ECO-SYSTEM TO SUPPORT THIS PROCESS? (1/2)
May rely on alleviating a continuing gap between the scientific
community and the business community. There is need to better
connect regional actors.
The ecosystem also needs to be more outward looking and most
of the strengths and opportunities in these regions lie in the
increasing awareness of the need to open up the ‘innovation
system’ in terms of regional–global networking.
Key weaknesses and threats remain, especially the slow
domestic response in reforming education systems and
facilitating the commercialization potential of current and latent
innovation activity.
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To consider: (3/3)
WHICH NEW INSTITUTIONS AND ACTORS NEED TO BE INVOLVED IN
INDUSTRIAL AND REGIONAL POLICIES IN ORDER TO BETTER EXPLOIT
ALL FORMS OF KNOWLEDGE AND CREATIVITY?
No need to introduce new institutions and actors unless
absolutely necessary.
What is really needed is better leadership coordination across
existing actors.
The leadership of professional networks is critical for economic
development since the joint power of these organizations may
enable the creation and accessibility of regional assets.
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Video – Europe Innova 2011
TITLE
Annual Partnering Event: Ketikidis
10.14 minutes
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Conclusions and recommendations
(1/3)
 Regional policy development requires high coordination at
European, national and regional level (Varga & Pontikakis, 2009)
 Policies are often based on a “best-practice” approach rather
than develop their own context-specific and tailor made program.
 In order to increase the capacity of regional firms to innovate increase the absorption capacity of all actors in the region.
 Adaptation and change is a key process in the development of
regional economies.
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Conclusions and recommendations
(2/3)
• Untraditional methods are needed to reach SMEs and firms not
contingent to knowledge institutions.
• Networking and learning within the region are vital for
disseminating and creating knowledge as well as for redistributing
the attracted flows throughout the region (COLLABS, 2009)
• Incentivize university-industry-government collaborations
(Etzkowitz &
Ranga, 2009)
• Promote innovation and entrepreneurship, especially in the
community of the young generation of scientists and the future
R&D human capital including high school students.
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Conclusions and recommendations
(3/3)
• The overdependence of a region on only a main industry creates
a great disruption if that sector is affected by a global crisis. Thus,
industry diversification is needed. (Pavlinek&Zenka,2010)
• Re-orientation of regional policy and regional focus (Davis et al., 2010)
• Technological progress and dissemination is very important for
regional development and in this aspect, investing in human capital
proves to be a very sustainable action for the future
(Akcomak&Weel, 2007)
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Innovate out of the economic
downturn !
• Long term growth drivers:
INJECT CAPITAL
THINK Local – Act GLOBAL
SUPPORT TALENT
FOCUS ON PUBLIC PROGRAMS
Source: Sami Mahroum, Bloomberg Businessweek, 28.10.2008
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Innovate or be left behind !
• The faced challenges are so large and intertwined that
successfully tackle them requires dynamic new ways of working.
The global recession has had significant impacts on the financial,
economic and social fabric of the EU.
• Therefore,
– those businesses that will continuously innovate their
products, services and/or business models, will be able to
successfully compete in the market place while all others will
fall on the wayside
and FINALLY
‘BUSINEES AS USUAL IS NOT ENOUGH’
INNOVATE !
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University of Sheffield
About
Prof. Panos H. Ketikidis, PhD
THANK YOU !
Research Interests
 Innovation and Regional Development
 Supply Chain Management –
Information Systems
 ICT Policy and Research Strategy
 Health Informatics
Contact information: [email protected]
• Chief Editor of the International Journal of Innovation & Regional
Development
• Associate Editor of the International Journal of Logistics Economics and
Globalisation
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