Transcript ARC FUND Presentaion

Mapping and Rebuilding the Local
Innovation System of the Regions: The Case
of the South-Central Region (SCR) in
Bulgaria
by Ruslan Stefanov
ARC Fund
KEF III, Budapest, March 24-26th, 2004
Outline
 Introduction
 Case Study Description
 institutions
 process
 results
 Knowledge Gained (Lessons Learnt)
Introduction – Why This Case
 Comes from KE Practice - Addresses a Core KE Pillar Innovation System – From Different View Points
 Reveals Insights on Country Region and Company Level
 Highlights the Importance of Processes and Institutions
 Underscores the Role of Trust and Public-Private
Partnerships
 Follows Local Demand and Conditions but Uses EC and
International Knowledge and Instruments
The Case -Background
Source: World Bank and author’s calculations
Knowledge Economy
Finland (1)
0.51
0.69
0.53
0.48
The Bulgarian Score vis-à-vis Finland
•Econ. Incent & Inst. Reg
•Information Infrastructure
•Education & Training
•Innovation Systems
The Case - Geography
Case Features
 Focus: Managing and Shaping Regional Innovation
System Change Through PPP - the Strategy as a Tool,
not an End
 Features
 Private Sector Lead, Bottom-Up Approach
 Learning and Knowledge Sharing Core
 Results: Knowledge on Different Management Levels
Institutional Setup
Advisory Committee [43]
International
Advisory Council
Steering Committee [18]
Management Unit [14]
6 Local Coordinators
Expert Council [19]
Industry Groups
Ad Hoc Working Groups
Process (1)
Involve Key Players
Know Supply &
Demand
Study the Region
Implement Projects
Institutionalize
Find Success Stories/
Leaders
Pilots
Outline Possible
Actions
Process (2)
 Involved in Carrying Out the Project : more than
40 organizations and 120 persons
 Indirectly Project Activities: more than 500
organizations and 1,200 persons
 Number of Public Meetings: 110
 Duration: 2,5 years
Results
 Internationally comparable knowledge and data bank on SCR’s
innovation system
 Direct knowledge transfer on innovation to some 400 companies
in the region
 10 technology audits and 6 international company matches
 Experience and knowledge transfer to the other 5 planning regions
in Bulgaria which now prepare to conducting RIS projects
 Trans-border knowledge transfer (e.g. Romanian organization
successfully consulted on adapting the RIS initiative)
Knowledge Gained – Management Level
 Create flexible and effective internal knowledge management
system – the organization evolves with the process
 Balance knowledge and management capabilities – outsource
when necessary
 Focus on local demand and conditions but know international
benchmarks – discrepancies are usually overwhelming
 Do not expect knowledge and interest from the other stakeholders
– inform and engage proactively; keep doors open
 International partners are good steering anchors but copying
practices should be avoided
Example – Level of Cooperation
Cooperation with Bulgarian partners in the innovation process
60,0
% of all projects/companies
55,0
50,0
40,0
32,0
30,0
25,5
20,3
20,0
12
11,6
10,0
7,5
5,3
4,6
7
5,3
2,8
1,0
2,9
0,5
1,7
0,0
suppliers
customers
consultants
associations
projects
universities
specialized
institute
research
institutes
companies
Source: Regional Innovation Strategy for South-Central Region of Bulgaria
other partners
Knowledge Gained – Macro Level
 Setting a predictable but flexible innovation policy
framework is fundamental for streamlining common
efforts
 Governments are stuck with rigid remnants of the old
innovation system – reform them, introduce competition
and complementarities
 Rule of thumb – governments should put an euro in
projects that attract at least another euro in private or
external funds
Example – R&D Expenditure
3,0
2,5
2,0
1,3
% 1,5
1,0
0,5
0,4
0,7
0,1
0,5
0,3
0,0
Public R&D/GDP
Business R&D/GDP
Source: European Innovation Scoreboard, 2002
Bulgaria
CC Average
EU Average
Knowledge Gained – Meso Level
 Regional governments tend to be outsiders to both
central and local developments
 But might be more flexible and cooperative
 Local authorities are more interested and eager to
participate but might often lack specific knowledge and
skills
 Active private sector associations are a key bridge to
involving the business at national and regional level
Knowledge Gained – Company Level
 Most companies are well behind theoretic and best
practice models – transfer knowledge, gather as much
data as possible
 Only a few, usually foreign owned play, at global markets
– motivate to share knowledge, highlight best practice
 Truly innovative companies are exceptionally rare – FDIs
and technology transfers precede genuine innovations
 Private companies are the most interested and long-term
ally in shaping the regional innovation system
Example - Companies
Average Expenditure per Company on Acquisition of
Technologies (in BGL thous.)
100,0
90,0
80,0
70,0
60,0
50,0
40,0
30,0
20,0
10,0
0,0
404,2
50,8
35,1
19,3
11,5
11,7
2,8 0,0
Patents
4,0 3,8 5,0
3,0
Licenses
Know -how
Samples and
models
on the internal market
Trade marks
5,5 5,0
Copy rights
10,4
Technical
documentation
on the intl market
Source: Regional Innovation Strategy for South-Central Region of Bulgaria
6,0
Other
THANK YOU
ARC Fund
5, Alexander Zhendov Str.
1113 Sofia
http://www.arc.online.bg
E-mail: [email protected]
Bulgaria KE Useful Links

http://www.bgrazvitie.net/bg/ke/
 http://www.developmentgateway.org/node/130667/sdm/docview?docid=364
943
 http://www.arc.online.bg
 http://www.bulgaria-gateway.org/
 http://www.vitosha-research.com/
 http://europa.eu.int/comm/lisbon_strategy/index_en.html
 http://www.helsinkikef.org
 http://www1.worldbank.org/gdlnscripts/programs/kam2002/kamscript.exe/show_page
 http://trendchart.cordis.lu/Scoreboard2002/index.html
 http://www.developmentgateway.org/node/130667/
Bulgaria KE Useful Documents
 “Towards a Knowledge-Based Economy, Bulgaria”, UNECE, 2002
 “A Preliminary Strategy to Develop a Knowledge Economy in EU
Accession Countries”, World Bank, 2002
 “Bulgaria, 2003 Special 301 Report”, International Intellectual
Property Alliance
 “Bulgaria, Country Report”, European Trend Chart, 2002
 “Bulgaria E-Readiness Assessment 2003”, ARC Fund, upcoming and
2002
 Bulgarian E-Government, ICT and Innovation Strategy
 “Inventory of Bulgaria’s Innovation System”, PHARE Project,
Upcoming