Transcript EU Cohesion / Regional Policy

Competitiveness through Research & Innovation
(World Bank)
“Europe 2020” and the
Role of the EU Structural Funds
Sofia, 21 June 2010
Athanasios Sofos
Directorate General “Regional Policy”
European Commission
1
Content
• EU Cohesion / Regional Policy: Purpose, objectives,
budget, funds, interventions
• Implementation of Structural and Cohesion Funds in
Bulgaria today (challenges)
• « Europe 2020 »
• Future possibilities
2
EU Cohesion / Regional Policy - Purpose
• The EU is one of the world’s most prosperous economic
zones
BUT:
• Huge disparities exist among the 271 EU regions –
weakens the EU’s dynamism
HENCE:
• The political goal of reducing the gaps in development
3
EU Cohesion /
Regional Policy Purpose
<50
50 - 75
75 - 90
90 - 100
100 - 125
 125
Differences in
development in the EU-27
GDP per head as a % of the
community average
4
EU Cohesion / Regional Policy - Purpose
EU-27 GDP per capita in PPS in 2006
Source: Eurostat structural indicators
EU 27= 100
5
The EU Budget 2007-2013
1/3 of the budget (“1B”) aims at “Cohesion/Regional Policy”
(=Structural & Cohesion Funds): €347 billion over 7 years
50
47,4
45
2006
2013
40,4
40
35,7
32,1
35
30
25
20
15
10
9,9
6,6
6,5
5
0,9
6,4
5,6
6,1
1,5
0
1A Compétitivité
1B Cohésion
2 Ressources
naturelles
3 Justice
4 Acteur mondial
5 Administration
6
Cohesion/Regional Policy:
Structural & Cohesion Funds by sector 2007-13
European Regional Development Fund (ERDF)
and Cohesion Fund (CF) - €271 billion
Transport
Environment
Research / Innovation
Information society
Social infrastructure
Energy
Tourism
Culture
Institutional capacity
European Social Fund (ESF)
- €76 billion
Employment
Human capital
Adaptability of workers and firms
Social inclusion
Capacity building
Technical assistance
7
Structural Funds 2007-13 :
R&D + Innovation in the EU regions,
Other Research,
Technological Development
and Innovation projects
(A180)
9%
Innovation financial
engineering : seed and
venture capital (A165)
5%
Research, Technological
Development and
Innovation infrastructure
(A183)
2%
Incubator units and
creation of technology
based firms (A164)
15%
Clusters and business
networks : development
Business Advisory
SMEs innovation
of a regional innovation
services : Technology
projects with
strategy (A182)
forecasting and
Universities and
29%
Technology Audits in
Technology Centres
SMEs (A163)
(A181)
19%
21%
8
7th FP, CIP and Structural Funds: Complementarity
Total EU funding for research and innovation (annual average funding)
9
Bulgaria: General challenges - selection
•Lack of management culture and clear allocation of responsibility:
– Slow absorption of funding across the sectors
– Low administrative capacity
– Redundant reporting and control
– Complicated or unclear rules and procedures
– Slow or late payments to projects
•Project pipeline
•Regularity issues (corruptive environment, weak judiciary, conflict of
interest concept not always understood, procurement high risk)
•New financial perspectives (EU budget review)
•Budget deficit
10
Bulgaria: Business/Innovation/R&D challenges - selection
•
Lack of forward-thinking and a well targeted strategy.
•
Weak co-operation and co-ordination between institutions. (eg. Too many
universities/research institutes weaken cooperation ties).
•
Very slow implementation of measures in programmes.
•
No or limited regional/local approach to innovation.
•
Difficulties to secure funding for innovation.
•
Slow process for attribution of patents.
•
Knowledge transfer – benchmarking: Learn from others and apply in your
region/locally (German Länder example).
•
More effort needed to promote co-operation between private sector and
research institutions.
11
Europe 2020: successor to the Lisbon Strategy
RESULTS:
EMPLOYMENT: 66% in 2008 (compared
to 62% in 2000)
R&D (1.9% in 2008 from 1.82% in 2000)
KEY TARGETS
• 70 % of the population aged 20-64
should be employed
•3% of the EU's GDP should be invested
in Research & Development
12
Europe 2020: emerging from the crisis
The crisis has wiped out recent progress:
• GDP growth: - 4% in 2009, worst since the 1930s
• Industrial production: - 20% with the crisis, back to the 1990s
• Unemployment levels:
–
–
–
–
23 million people
7 million more unemployed in 20 months
expected to reach 10.3% in 2010 (back to 1990s level)
youth unemployment over 21%
13
Europe 2020: challenges ahead
•
Europe’s structural weaknesses have been
exposed: lower growth potential, productivity gap, high
and rising unemployment, ageing poverty, limited fiscal
room
•
Global challenges intensify: competition from
developed and emerging economies, global finance,
climate change and pressure on resources
14
Europe 2020: the EU new strategy for jobs and growth
« Communication » from the European Commission:
«Europe 2020 : A strategy for smart, sustainable and
inclusive growth”
COM(2010) 2020, of 3 March 2010
• 3 thematic priorities
• 5 EU headline targets – translated into national ones
• 7 flagship initiatives – from the Commission
+ 10 integrated guidelines for implementing reforms in
Member States
15
Europe 2020: 3 thematic interlinked priorities
1.) Smart growth: developing an economy based on
knowledge and innovation
2.) Sustainable growth: promoting a more efficient,
greener and more competitive economy
3.) Inclusive growth: fostering a high-employment
economy delivering social and territorial cohesion
16 16
Europe 2020: 5 EU headline targets (into national targets
and trajectories by 2020
• 75 % employment rate (% of population aged 20-64 years)
• 3% investment in R&D (% of EU’s GDP)
• “20/20/20” climate/energy targets met (incl. 30% emissions
reduction if conditions are right)
• < 10% early school leavers & min. 40% hold tertiary degree
• 20 million less people should be at risk of poverty
• BUT NO “ONE SIZE FITS ALL”
17
Europe 2020: 7 flagship initiatives underpin the targets
Smart Growth
Sustainable Growth
Inclusive Growth
Innovation
« Innovation Union »
Climate, energy and
mobility
« Resource efficient
Europe »
Employment and skills
« An agenda for new
skills and jobs »
Education
« Youth on the move »
Competitiveness
« An industrial policy
for the globalisation
era »
Fighting poverty
« European platform
against poverty »
Digital society
« A digital agenda for
Europe »
18
Europe 2020: 10 integrated guidelines
ECONOMIC
Smart and sustainable Growth
EMPLOYMENT
Inclusive growth
Guideline 1: Ensuring the quality and the
sustainability of public finances
Guideline 7: Increasing labour market
participation and reducing structural
unemployment
Guideline 2: Addressing macroeconomic
imbalances
Guideline 8: Developing a skilled workforce
responding to labour market needs, promoting
job quality and lifelong learning
Guideline 3: Reducing imbalances in the euro area
Guideline 9: Improving the performance of
education and training systems at all levels and
increasing participation in tertiary education
Guideline 4: Optimising support for R&D and
innovation, strengthening the knowledge triangle
and unleashing the potential of the digital
economy
Guideline 10: Promoting social inclusion and
combating poverty
Guideline 5: Improving resource efficiency and
reducing greenhouse gases emissions
Guideline 6: Improving the business and
consumer environment and modernising the
industrial base
19
Approaches to the regional /
sub-national innovation issues
• Innovation Union Communication:
– Transversal importance of regions & structural funds
– Focus on preparing new programme generation (post
2013) with more trans-national openness and higher share
for innovation & research
– Aligning structural funds more to Europe 2020 priorities
• Joint Communication 'Regional Policy
contributing to smart growth in Europe 2020':
– Improving impact on innovation under current financial
period and regulations
– Prepare MS & regions for future programmes
20
“Innovation Union”:
Main areas of action with regional dimension
• Strategic and integrated approach to R&D and innovation
by Member States and their regions
• Streamlining and simplification of EU innovation-related
programmes
• State Aid framework
• Public procurement as innovation driver
• European Innovation Partnerships
• Modernisation of universities, research training and
careers
• Launch of priority research infrastructures
• Benchmarks for research and innovation systems
21
What is “Smart specialisation”?
= evidence-based (SWOT): all assets
= no top-down decision, but
stakeholder discovery process
= global perspective on potential
competitive advantage & potential
for cooperation
= source-in knowledge, &
technologies etc. rather than reinventing the wheel
= priority setting in times of scarce
resources (not "coffee for all")
= getting better / excel with something
specific
= accumulation of critical mass
= not necessarily focus on a single
sector, but cross-fertilisations
 best way to exploit territorial potential through innovation
 foster interregional comparative advantage
22
Future Structural Funds (SF): Ongoing discussion
• Input from Evaluation of 2000-2010 period.
• Which relationship with Europe 2020?
• SF designed on geographic/territorial or sectoral
basis? What mix?
– “Place-based” approach (“Barca report”), “regional”
innovation,…….
– “Smart Specialisation”.
– Role of “macro-regions” (Baltic, Danube….)
• Which sectors for which regions?
– Infrastructure? (transport, environment, “green” energy)
– Innovation and R&D?
– Climate change, poverty, demographic changes, ……
23
Future Structural Funds (SF): Ongoing discussion-II
• What implementation and control systems?
– Need for efficiency and sound management of
funds.
– One system fits all? Case by case (EU27+)
– Regional vs. national?
– Subsidiarity (at EU, national, local level)
• What budget?
– EU Financial Perspectives 2014+ to be launched
in 2011.
24
Future Structural Funds (SF): Ongoing discussion III
• What does Bulgaria (and its regions
and territories) want ?
–
–
–
–
Identify needs in a pragmatic way
Establish your priorities
Draft your proposals
Make your alliances (with other Member
States)
– Set up task forces and negotiation teams of
high skills
– Be ready for the Council negotiations!
25
Thank You !
e-mail: [email protected]
Useful web sites:
http://europa.eu/index_en.htm
http://europa.eu/pol/index_en.htm
http://ec.europa.eu/regional_policy/index_en.htm
http://europa.eu/policies-activities/fundinggrants/index_en.htm
http://cordis.europa.eu/eu-fundingguide/home_en.html
26
SLIDES TO DISCUSS ONLY IF TIME ALLOWS
27
Scope of Innovation Union
From Idea to Market
European
Innovation
Partnerships
Knowledge Breakthrough
foundation
ideas
Access to
finance
Innovation
market
Principles for
•
•
Member State policies
International cooperation
•
Governance
28
From Idea to Market
Knowledge Breakthrough
foundation
ideas
Access to
finance
Innovation
market
29
Knowledge foundation
•
Issues




•
Insufficient supply & quality of research & innovation skills
Limited reforms in universities
Barriers to cross border flow of people, funding
Limited investment in strategic infrastructures
Areas of action
 ERA framework to remove obstacles to cross border flow of
people and funding
 Modernisation of universities, research training and
careers
 Launch of priority research infrastructures
30
Breakthrough ideas
•
Issues




•
Underinvestment in knowledge
Complex funding landscape
Costly EU patent system and unused patents
Little recognition of EU design strengths
Areas of action




Streamlining and simplification of EU programmes
EU patent
EU knowledge markets (DK and FR examples)
Recognition of excellence in design
31
Access to finance
•
Issues




•
Lack of finance is main constraint on innovative companies
Few European SMEs grow into major companies
Specific market gaps for start ups, high growth companies,
major research and innovation projects
Current EU instruments (RSFF, CIP Financial Instruments)
under funded.
Areas of action



Cohesion Funds for R&I and smart specialisation
EU financial instruments to address market gaps, notably
through EIB/EIF
State Aid framework
32
A Single Innovation Market
•
Issues



•
Lack of harmonised regulations for innovations (e.g. type
approvals of green vehicles)
EU standard setting too slow
Public procurers lack incentives, knowledge or scale to benefit
from innovation
Areas of action



Regulatory frameworks linked to Partnerships
Review of EU standardisation system
Procurement for innovation
33
European innovation partnerships
34
European innovation partnerships
• Issues
 Major societal challenges
 Many actions, uncoordinated
- R&D programmes / demand-side actions
- EU / national / regional (and global)
• To address these issues, European Innovation Partnerships will be:
 Not a new instrument alongside the others; but
 Frameworks bringing together main actors, policies and
actions at EU and national levels, from research to market,
around common objectives and targets
35
Principles for
• National policies
• International cooperation
• Governance
36
Principles for national policies
• Issues
 National policies essential for establishing a single market for
research and innovation
 National research and innovation systems more effective if they
share some broad characteristics, recognised as common to
well-performing systems
 « Integrated guidelines » under Europe 2020 are too general for
this purpose.
• To address these issues, common benchmarks for national
research and innovation systems could be developed and
agreed with the Member States
37
International cooperation
•
Issues
 Need to attract best talents from abroad.
 Need for stronger cooperation, notably on global challenges, but
with level playing field on reciprocal access, intellectual property,
interoperable standards, lifting trade barriers.
 EU and MS weakened by their lack of coordination.
•
Areas of action
 Make the most of visa directive and Blue Card
 Establish level playing field
 Common EU-national policy orientations for international
cooperation amongst major global research infrastructures
38
Implementation and governance
Commitment at all levels
 European Council
Overall steering
 EU Council
Policy orientations, codecision
 Eur. Parliament
Policy orientations, codecision
 Member States
Apply benchmarks, specialise smartly
 Regional and local authorities
Specialise and develop potential
 All actors
From business to citizens
39
Implementation and governance
Commission support
 Initiative of proposals
 Annual Progress Report (Europe 2020)
 with Country Specific Recommendations
 Independent peer reviews
 of national systems
 Technical assistance
 for smart specialisation
 Use of Structural Funds: programming, implementation, reporting
 Innovation Convention on state of Innovation Union (yearly)
 Scoreboard on research and innovation
40
RESULTS FROM 20 YEARS
INNOVATION IN THE EC
APPEARING ON SLIDE BUT NOT PRESENTED
IN THE WORKSHOP
41
Conclusions (1): on the conceptual framework
1)
Innovation is not R&D…and just R&D is not Innovation: promoting innovation-led regional
development is not primarily about increasing R&D excellence and R&TD infrastructures (supply
push) but first and foremost about a change of culture where efficient innovation systems
(demand pull) mobilize the intellectual and entrepreneurial capacities to create an innovation
friendly business environments, for SMEs in particular, in all regions and in all sectors (not just
high-tech)
thus
The linear model (from R&D to the market) is much less relevant for policy design than the
systemic or interactive model: not just patents but economic exploitation of talent and new ideas –
not just industry and big firms with R&D but also services, competitive research and open
innovation
because
Regional innovation capacities are much more about personal engagements, institutions,
networks, cooperation (social capital) than it is about narrowly focused science and
technology efforts: reinforcing triple helix – knowledge triangle, clusters and universityenterprise is key
Why?
Regional innovation for most regions in the EU is basically about knowledge absorption
(education and training, advanced business services) and diffusion (technology transfer, ICT,
entrepreneurship) than about knowledge generation (science efforts)
42
Conclusions (2): on policy design
2.
3.
4.
5.
6.
7.
Innovation has a strong territorial dimension (tacit knowledge-networked economy)
and there is no “one size fits all” innovation policy: regional diversity is an asset that
advocates for different routes to growth through innovation – smart specialization
Regional Innovation Paradox: big need, big money and no capacity
It is no longer about what or why but about how and who?
Opening minds is more difficult than opening roads – need for much strengthen
strategic planning capacities of regional/national governments (from design to ongoing
learning evaluation) and facilitate a culture of risk taking
R&D excellence and Regional innovation are complementary and we need both:
exploiting agglomeration and economies of scale is important (ERA) but also diffusion
and absorption mechanisms based on regional potential
Beyond R&D expenditure and patents: we still do not have the required indicators
for properly characterizing regional innovation potential or measure policy impact
Matching business demand (as a starting point) with RTD supply is vital
Microeconomic competitiveness problems can not be efficiently tackled by
overdoses of macroeconomic or sector based policies but by integrated, placebased regional policies
43
Conclusions (3): on the role of the public sector
8.
9.
10.
11.
12.
13.
14.
15.
Public sector should provide leadership and vision, rather than control, and catalyze
economic development by promoting new ideas and partnerships with the private sector:
not “for them but without them”
Support schemes must be long lasting, understandable and readily accessible by
SMEs
Place-based regional innovation strategies and action plans integrating multilevel
governance (national-regional) and horizontal (inter-ministerial) cooperation are a
necessary first step
Grassroots ownership of innovation strategies are required: consultants are useful but
not in the driving seat
Listen to Regional Development Agencies, Technology Centres, Technology Parks and
Incubator managers, Technology Transfer Offices…they are soldiers in the front line
Venture capital, business angels, soft loans, guarantees…financial engineering better
than grants and tax incentives although need for combination and a wide menu
Public procurement (green and innovation driven) is an important tool to consider
Innovation policies require risk taking, trial and error and sound evaluation on top of
deep pockets and long lead times (political consensus a plus)
44