Transcript 20 years of EU Regional Policy on Innovation Strategies

"20 years of EU regional policy
on Innovation Strategies”
‘TRANSITION ECONOMICS MEETS NEW STRUCTURAL ECONOMICS’ on Tuesday June
25 – Wednesday June 26, 2013 in room 347, UCL SSEES, 16 Taviton Street, London WC1H 0BW
Dr. Mikel Landabaso
European Commission, DG REGIO
Head of Unit G1 - Competence Centre for Smart and Sustainable Growth
Index
1.
2.
3.
4.
5.
6.
Innovation and economic development:
•
What is it?
•
Why is important?
•
What to do about it?
Regional Policy, Innovation and EU 2020
R&I in the new Cohesion Policy Regulatory Framework
RIS³ - Research and Innovation Strategies for Smart Specialisation
Policy Conclusions
Annex:
•
RIS³ Steps
•
Horizontal issues and delivery instruments for RIS³
•
Support tools: OECD Study and RIS³ Platform
Economic rationale: …do not trust economists
« Sollow’s residual »
gY=p + &gL + (1-&)gK
•
gY (Output growth rate)
•
gK (Capital growth rate)
•
gL(Labour growth rate)
•
& (Output related to labour)
•
p (growth of multifactor productivity ~= Innovation)
"A change in multifactor productivity (or disembodied technical change) reflects the change in output that cannot be accounted for by the
change in combined inputs: labor, materials, and capital. As a result, multifactor productivity measures reflect the joint effects of many
factors including new technologies, economies of scale, managerial skill, and changes in the organization of production (Wikipedia)"
What is innovation?
An innovation is the implementation of a new or significantly improved product (good or
service), or process, a new marketing method, or a new organisational method in
business practices, workplace organisation or external relations (OECD, Oslo
Manual).
A product innovation is the introduction of a good or service that is new or significantly improved
with respect to its characteristics or intended uses. This includes significant improvements in
technical specifications, components and materials, incorporated software, user friendliness or
other functional characteristics.
A process innovation is the implementation of a new or significantly improved production or
delivery method. This includes significant changes in techniques, equipment and/or software.
An organisational innovation is the implementation of a new organisational method in the firm’s
business practices, workplace organisation or external relations.
A marketing innovation is the implementation of a new marketing method involving significant
changes in product design or packaging, product placement, product promotion or pricing.
Innovation and Economic
Development
“...in the last 50 years innovation has been responsible for at least half the economic growth of our
nation...”
(Neal Lane, Director National Science Foundation - NSF, February 1997, Seattle, U.S.A)
•
•
•
•
•
•
•
i) increases in growth rates (Solow 1957, Rothwell and Zegveld 1981: 29, Quintanilla 1992:
46),
ii) higher rates of exports and trade (OCDE 1982, 1986),
iii) gains in productivity (Mansfield 1965, Amable and Boyer 1992: 45),
iv) growth in income and output (Freeman 1982: 198),
v) bigger business profits and lower inflation rates (Goddard et al 1987: 10) ,
vi) increased firms international competitiveness (Nelson 1993:509)
vii) appearance of new or improved products and services (Mansfield 1988, Pavitt 1994), etc.
"Until the 1980s, technology and innovation were under recognised influences in the explanation of
differences in the rates of economic growth between regions in advanced industrial nations..."
(Townroe)
Is there a link between innovation
and regional growth?
“The general consensus…is that the driving force behind long-term economic growth is science, technology and
innovation in its different forms and facets” (OECD 2011: Regions and Innovation Policy)
70
Index of economic output
60
50
40
30
20
10
0
0
10
20
30
40
50
Index of innovative output
Source: Mikel Navarro et al, Basque Competitiveness Institute 2010.
60
70
Is there a link between innovation
and (exit from) the crisis?
7
Supply and/or Demand
policies for a Crisis?
How to increase aggregate demand for long term growth in the liquidity trap … Innovation Policy?
Y=C +
I+ G + (X-M)
A virtuous (Crisis exit) cycle: by increasing targeted government expenditure G (in innovation ecosystems and human capital skills) that leverages private co-funding I (on innovation: often intangible,
long-term, risky investments) which enhances their capacity to compete in global markets (raising
exports X), output grows driven by sustainable jobs, …thus public sector is only "advancing" money
that could be (partially) clawed back later through increased tax revenue and savings on
unemployment benefits, without burdening further public deficit in the long term… if this innovation
policy works!
"I have argued against short term stimulus packages…believing that instead we need a consistent, planned, decade long boost in public investments in people,
technology and infrastructure…it requires careful government programs, working alongside the private sector, and good coordination with state and
local government… J. Sachs, 3/9/13' in "Professor Krugman and crude keynesianism" HUFF Post"
How enterprises see
innovation?
See: GE Global Innnovation Barometer 2011: Interview of 1000 senior executives in 12 countries (December 2010 - January 2011)
Cohesion
Policy
The rationale for public intervention
to promote innovation
“… the most important job for economic policy is to create an institutional
environment that supports technological change. “ Paul Romer 1994
"Innovation is a critical factor for growth but a well-functioning market economy cannot generate by
itself the optimal levels of R&D" (World Bank , 2011), because of two main market failures:
•Partial appropriability (owing to knowledge spillovers - employee mobility and FDI - and positive
externalities) and "public good" nature of R&TD+i: innovators cannot capture the full benefits of
their investment and social returns from innovation may be far larger than private returns (Jaffe
1998)
•Information asymmetries and "funding gap": in the absence of demonstrated cash flows or collateral
there are barriers to traditional sources of finance – there is a significant gap between what an
innovator knows and what an external agent can gauge – Importance of F³: fools, friends and family
•
Climbing the development ladder calls for more
innovation in the policy mix
Necessary conditions:
Physical Infrastructure &
Human Capital
P
O
L
I
C
Y
Sufficient conditions:
Innovation & entrepreneurship
Extremadura
(Ri)
M
I
X
Baden-Württemberg
(Re)
P mix = f (NC, SF) adapted to each regional context: business culture, institutional setting,
sectoral/technology specialisation, firm size, inward investments, etc …
The strategic importance of public policy in creating efficient
Innovation Eco-Systems
Business
Public Sector
National/Regional
Administration
Consultants:
Services
Universities
Innovation Management
Techniques
Technology Audits
Technology Foresights
Intermediaries
Big Firms
Technology
Centres
Enterprise
SME
EE
E
FinanceBanks
Enterprise
SME
Firm competitiveness (SMEs in particular)
(also) depends on the quality of their
innovation environment!!!
Steve would not have made
it everywhere…
Innovation-friendly business environments vs
promoting R&D excellence
Innovation is not just R&D. For most companies and the majority of regions their competitiveness are
not mainly or primarily dependent on R&D efforts but on knowledge absorption (education and
training, advanced business services) and diffusion (technology transfer, ICT, entrepreneurship) largely
dependent on internal and external connectivity
•Proportion of innovation active enterprises with no R&D, 2006-2008
Sources: Eurostat CIS6; R.J. Adams, ‘The distribution of innovation activity across UK industry’, BIS (2010) from a presentation by Michael Kitson Judge
Business School, University of Cambridge and UK-Innovation Research Centre
"Innovation is not just science and technology; it is also the creation of a multitude of new products and services in all
sectors of the economy, new marketing methods and changes in the ways of organising businesses, in their business
practices, workplace organisation and external relations" (OECD 2010).
"Innovations are not just the results of scientific work in a laboratory-like environment…this is the exception rather than
the rule…the causality between science and innovation has proven weaker than expected…innovation emerge increasingly
in practice-based processes based on the ability to interact and build networks with other innovation agents" (V.
Haarmaakopi et al 2008)
Science
pre-competitive activities
T he Science-Market Circuit :
a regional model of t he innovat ion process
Science Policy
Basic Research
T echnology needs by firms
New ideas about new products and/or improved processes
Univ. Departments
Public Research Institutes
Science Parks
New products demand
(different, better or cheaper)
Research without
immediate application
Demand
Knowledge
Demand
Industrial Policy/Regional Policy
Applied Research
Valorisation
T ec hnologic al development
Adapting/adoption
SMEs
Research Centres
T echnology Incubator
T echnology Park
T echnology T ransfer
Contract Research Organisations
RT Os.
Subcontracting
Firms
Innovation
Technology Transfer
Difussion
"Scientific Sub-system"
New or improved
product or process
Technology Policy
"Regional 'Innovative
Milieux': innovative
environments"
SMEs
("Followers /imitators ")
Innov ation
"Adaptative Res earc h"
Sourc e: Landabas o, M. 1993.
Clients
Market
Competition Policy
Public Procuring Policy
SMEs
SMEs
SMEs
SMEs
Large
firms
SMEs
SMEs
SMEs
SMEs
Large firms;
Tech. Centers;
Sect. Associations
Regional
economy
SMEs
SMEs
SMEs
SMEs
Regional
government
SMEs
SMEs
Technology
Centers
Business
services &
tech. consultants
SMEs
SMEs
Sectoral
Associations
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
Business
intermediaries:
Cham. of Comm.;
Local Agencies
BICs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
Open gate: International business consultants & specialized business services
Global economy
Science base:
Universities;
Public R&D;
Laboratories
Valorisation
of R&D
and Tech.
Transfer
Office
Cluster
Open gate: International value chains
Open gate: International technology transfer networks
Open gate: International R&D/academic excellence networks
A fragmented and inefficient regional economy opposing institutional change:
SMEs
SMEs
Large
firms
SMEs
SMEs
SMEs
SMEs
Sectoral
Associations
Regional
Government
Universities
Large
firms
SMEs
SMEs
SMEs
Regional economy
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
Business
Services
Large
firms
SMEs
SMEs
SMEs
SMEs
Chamber of
Commerce
SMEs
Technology
Centers
SMEs
SMEs
Technology
Consultants
SMEs
SMEs
SMEs
SMEs
SMEs
What enterprises think of public
innovation support …
Only 1/3 of enterprises are satisfied with
public support. The type of measures do not
correspond to their needs.
What do they need?
 Money, but not only grants, also credits,
guarantees, venture capital, etc..
 Clients, markets (domestic, global)
 Partners (development, value chains ...)
 Support for new forms of innovation (usercentred, combinations with services, ...)
 Quicker support and more tailor-made
measures
Cohesion
Policy
See: DG ENTR (2009)
http://ec.europa.eu/enterprise/policies/innovation/files
/swd_effectiveness_en.pdf
Is the Regional Dimension Important for
Innovation Policy?
•
“The capacity for developing human capital and interactions between firms, … is increasingly localised,… networks of
both formal and, mainly informal contacts…take place more easily at the regional level… synergies, or an innovative
‘surplus’ can arise from shared cultural, psychological or political perspectives arising from occupancy of a shared space or
region” (Lundvall & Borras, 1997).
•
“it is able to act on local knowledge, part of which is tacit, concerning the calibre of firms, the formal and informal
linkages between firms, the quality of the labour force and the capacity of the institutions… the most appropriate level at
which to build social capital…” (Morgan & Nauwelaers, 1997).
“Both global economic growth and social cohesion require increasing the competitiveness of regions, especially where potential is
highest. The comparative advantages that drive innovation and investment are as much a regional characteristic as a
national one. For regions to succeed, they must harness their own mix of assets, skills and ideas to compete in a global
market and develop unused potential.” OECD (Conclusions of the Chair, High level Meeting, Martigny, Switzerland,
July 2003)
“Proximity is important in fostering innovation. When different aspects of manufacturing – from R&D to production to
customer delivery – are located in the same region, they breed efficiencies in knowledge transfer that allow new
technologies to develop and business to innovate. Historically the co-location of manufacturing and product design has
been vital” (Report to the President on ensuring American leadership in advanced manufacturing, Executive Office of
the President, June 2011).
Europe 2020: 3 interlinked
priorities
1.) Smart growth: developing an economy based on knowledge and innovation
• 75 % employment rate (% of population aged 20-64 years)
• 3% investment in R&D (% of EU’s GDP)
2.) Sustainable growth: promoting a more efficient, greener and more competitive
•
economy
“20/20/20” climate/energy targets met (incl. 30% emissions reduction if
conditions are right)
3.) Inclusive growth: fostering a high-employment economy delivering social and
•
•
territorial cohesion
< 10% early school leavers & min. 40% hold tertiary degree
20 million less people should be at risk of poverty
« With the right vision for EU in 2020, we can harness Europe’s talents and assets, and reinvigorate the
inclusive social market economy that is the hallmark of the European way of life » (J. Barroso 2010
« Political Guidelines for the next Commission »)
EU 20209
7 flagship initiatives
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 »
« Europe’s political leaders and economic analysts must move from « why » to « how », from explaining why reforms are necessary, to
showing how they can be implemented » Anne Mettler – The Lisbon Council 2008
Smart Growth
Total expenditure on R&D, 2009
DE91
BE31
UKD2
FI1A
DE11
UKH1
DK01
DE21
SE22
DE14
Braunschweig
Prov. Brabant Wallon
Cheshire
Pohjois-Suomi
Stuttgart
East Anglia
Hovedstaden
Oberbayern
Sydsverige
Tübingen
7.99
7.66
6.60
6.57
6.34
5.57
5.31
4.66
4.65
4.58
FI20
GR24
RO22
ES63
BG31
GR22
BG32
GR42
GR13
PL43
Åland
Sterea Ellada
Sud-Est
Ciudad Autónoma de Ceuta
Severozapaden
Ionia Nisia
Severen tsentralen
Notio Aigaio
Dytiki Makedonia
Lubuskie
0.18
0.18
0.17
0.16
0.16
0.13
0.13
0.12
0.11
0.10
Smart Growth
NL31
DK01
NL32
UKI
SE11
FI18
NL33
FR10
NL41
UKJ1
Utrecht
Hovedstaden
Noord-Holland
London
Stockholm
Etelä Suomi
Zuid-Holland
Île de France
Noord-Brabant
Berkshire, Buckinghamshire and
Oxfordshire
100
95.9
95.4
94.3
94.3
92.6
92.4
92.1
91.4
90.1
RO41
GR42
RO22
BG31
GR22
ES63
PT20
GR41
ES64
FR93
Sud-Vest Oltenia
Notio Aigaio
Sud-Est
Severozapaden
Ionia Nisia
Ciudad Autónoma de Ceuta
Região Autónoma dos Açores
Voreio Aigaio
Ciudad Autónoma de Melilla
Guyane
12.7
12.5
12.2
12.1
9.5
8.9
8.8
8.0
5.1
0.0
Innovation Union
Scoreboard 2013
Performance changes since 2010 (grey column = 2010)
0.800
0.700
0.600
0.500
0.400
0.300
0.200
0.100
0.000
BG
RO
LV
PL
LT
MT
MODEST INNOVATORS
HU
SK
EL
CZ
PT
ES
IT
MODERATE INNOVATORS
EE
CY
SI
EU
FR
IE
INNOVATION FOLLOWERS
Regional & Urban
Policy
AT
UK
BE
LU
NL
FI
INNOVATION LEADERS
DK
DE
SE
Innovation Union
Scoreboard 2013
Human resources
0.80
0.70
Economic effects
0.60
Open, excellent research systems
0.50
0.40
0.30
Modest innovators
0.20
0.10
Innovators
Finance and support
0.00
Moderate innovators
Innovation followers
Innovation leaders
Intellectual assets
Firm investments
Linkages & entrepreneurship
Main differentiation between the innovation leaders and the followers are in
• intellectual assets (patent applications, trademarks, design),
• firm investments (business R&D and non-R&D innovation investments) and
• finance and support (public R&D, VC)
Regional & Urban
Policy
"One-size-fits-all" impossible!
Regional Innovation Scoreboard 2012
http://ec.europa.eu/enterprise/policies/innovation/policy/regional-innovation/index_en.htm
Innovation for all regions?
b
bb
Innovate in the 21st century:
new actors, new rules …
Productivity
GDP per person employed (EUR), 2010
UKI1
NL11
LU00
BE10
FR10
NL34
BE31
DK01
IE02
NL31
Inner London
Groningen
Luxembourg
Région de Bruxelles-Capitale
Île de France
Zeeland
Prov. Brabant Wallon
Hovedstaden
Southern and Eastern
Utrecht
RO11
RO22
RO31
RO41
BG34
BG33
BG31
RO21
BG32
BG42
Nord-Vest
Sud-Est
Sud - Muntenia
Sud-Vest Oltenia
Yugoiztochen
Severoiztochen
Severozapaden
Nord-Est
Severen tsentralen
Yuzhen tsentralen
387
315
255
228
226
213
213
212
211
209
28
27
27
23
21
20
19
18
17
17
Employment
Employment rate 2012, people aged 20-64
FI20
SE11
DE13
DE21
UKG1
SE21
NL31
DE14
DE27
UKJ1
Åland
Stockholm
Freiburg
Oberbayern
Herefordshire, Worcestershire and Warwickshire
Småland med öarna
Utrecht
Tübingen
Schwaben
Berkshire, Buckinghamshire and Oxfordshire
86.4
82.4
81.8
81.3
81.1
80.8
80.7
80.6
80.3
80.3
ES43
ES61
EL13
FR94
ES64
ITF4
ES63
ITF6
ITG1
ITF3
Extremadura
Andalucía
Dytiki Makedonia
Réunion
Ciudad Autónoma de Melilla
Puglia
Ciudad Autónoma de Ceuta
Calabria
Sicilia
Campania
50.4
50.1
49.8
49.6
49.4
48.8
45.9
45.2
44.9
43.7
Cohesion Policy funding
for R&I 2007-2013
Cohesion Policy
innovation
support over total
aid:
 4% in 89’-93’
 7% in 94’-99’
 11% in 00’-06’
 25% in 07’-13’
The Promotion of Innovation in European Regional Policy: a
silent (r)evolution
1989 -1993: approximately 4% for innovation (2 billion out of 50)
(L. Tsipouri, IPTS Report N° 40, 2004)
o
Community initiatives: Science and Technology for Regional Development - STRIDE,
TELEMATIQUE, ENVIREG, VALOREN…
1994-1999: approximately 7% for innovation (7,6 billion out of 110)
(L. Tsipouri, IPTS Report N° 40, 2004)
o
Pilot Projects: RIS, RIS+, RTTs, RISI, RISI2, IRISI, EBN, BICs
2000-2006: approximately 11% for innovation out of 195 billion
o
“Regions in the new Economy”: PRAIS – Regional Programs of Innovative Actions 400
million
2007-2013: approximately 25% for innovation (86 billion out of 345)
o
Article 5 of the ERDF: innovation as a priority for the “Competitiveness” objective 31.000 R&TD projects identified in only 95 ERDF Programs (40% of total budget)
(Nordregio 2009)
o
Regions for Economic Change
A history on EU regional innovation
networking
• European Business Network (EBN) linking BICs
• Innovating Regions in Europe: RIS (+) and RITTS
• Inter-regional Information Society Initiative RISI (+)
• Eris@ and IANIS
• RINNO
• ERIK linking PRAIs
• INTERREG IV C Networks
• CLOE linking Clusters
• Regions for Economic Change: mainstreaming through inter-regional
learning - RAPIDE, ERIK, PIKE and B3
…
Problems:
Cohesion Policy
2007-2013:
►Lack of institutional coordination
between levels of government and
across departments
► Strategies without external
perspective – duplication
► Lack of critical mass
► Measures mainly for R&I and
capacity building, but not for new
forms of innovation
► Focus on fashionable themes /
prestige projects
€86 billion for innovation:
- RTD incl infrastructures
- Entrepreneurship
- ICT development & up-take
- human capital
► Focus on existing industries and not
on emerging sectors and services
Cohesion
Policy
See: Regional Innovation Monitor www.rim-europa.eu
Lessons from regional innovation
strategies 1993-2000
•
“Inward looking” (parochial) without taking into account the global economy and European
Research Area.
•
Driven by external consultants: ownership by regional stakeholders?.
•
Excessive focus on "technological" supply and R&D emphasis.
•
A lack of understanding of the regional innovation system as an interaction of interdependent
players, policies and institutions.
•
"Study-oriented" approach vs. "applied-oriented" approach: credibility for businessmen?.
•
National/Regional governments might feel threatened by:
•
•
•
•
a transparent and inclusive bottom-up process.
analysis showing regional R&TD+i supply does not correspond to business demand;
new ideas, which cut across traditional power boundaries between Ministries;
project ideas which are not already in the "drawer" of a given Ministry
sustainable
inclusive
Europa 2020
smart
Thematic objectives
1.
2.
3.
4.
5.
6.
7.
Research and innovation
Information and Communication Technologies
Competitiveness of Small and Medium-Sized Enterprises (SME)
Shift to a low-carbon economy
Climate change adaptation and risk management and prevention
Environmental protection and resource efficiency
Sustainable transport and disposal of congestion on major network
infrastructure
8. Employment and support for labour mobility
9. Social inclusion and poverty reduction
10. Education, skills and lifelong learning
11. Increased institutional capacity and effectiveness of public
administration
Cohesion
Policy
Investment Priority R&I
(EP proposal)
(a) enhancing research and innovation infrastructure (R&I), technology and innovation services and
capacities to develop R&I excellence and promoting centres of competence, in particular those of
European interest and if there are potential synergies with other European programmes such as the
establishment of centres of excellence competition under Horizon 2020;
(b) promoting private and public business R&I investment, product and service development,
technology transfer, social innovation, eco-innovation, cultural and creative industries, public service
applications, demand stimulation, networking, clusters, science and technology parks, and open
innovation through smart specialisation;
(ba) developing links and synergies between enterprises, enhancing R&D centres and higher education, including
through business incubators;
(c) supporting research, pilot lines, early product validation actions, advanced manufacturing
capabilities and first production in particular in Key Enabling Technologies and diffusion of
general purpose technologies;
(ca) developing appropriate links and synergies with Horizon 2020;
Cohesion
Policy
Investment Priority SMEs
(Council + EP)
(3)
Enhancing the competitiveness of SMEs through:
(a)
promoting entrepreneurship, in particular by facilitating the economic
exploitation of new ideas and fostering the creation of new firms, including through
business incubators; venture capital type investments;
(b)
developing and implementing new business models and business skills for
SMEs, in particular including for the development of local markets and for
internationalisation;
(c)
supporting the creation and the extension of advanced capacities for
product and service development;
(d)
supporting the capacity of SMEs to engage in growth and innovation
processes;
Cohesion
Policy
Structural Funds
2014-20
eligible NUTS2 regions
1. Impact of the MFF decisions
… and evermore need to concentrate on investments on themes that enable
smart & sustainable growth
Research and Innovation
Energy efficiency and renewable energy
SMEs competitiveness
6%
60%
20%
44%
Developed regions and
transition regions
Less developed regions
Flexibility (different regions present different needs)
Special arrangements for the previously convergence regions
Cohesion
Policy
Thematic ex-ante conditionalities (1)
Thematic objectives
1.
Strengthening
research,
technological
development and
innovation (R&D
target)
(referred to in
Article 9(1) )
Criteria for fulfilment
Ex ante conditionality
1.1. Research and innovation: The
existence of a national or regional
research and innovation strategy for
smart specialisation in line with the
National Reform Program, to
leverage private research and
innovation expenditure, which
complies with the features of wellperforming national or regional
research and innovation systems.
–
–
–
–
–
–
A national or regional research and
innovation
strategy
for
smart
specialisation is in place that:
is based on a SWOT analysis to
concentrate resources on a limited set
of research and innovation priorities;
outlines measures to stimulate private
RTD investment;
contains a monitoring and review
system.
A Member State has adopted a
framework
outlining
available
budgetary resources for research and
innovation;
A Member State has adopted a multiannual plan for budgeting and
prioritization of investments linked to
EU priorities (European Strategy
Forum on Research Infrastructures ESFRI).
Innovation Strategies for Smart
Specialisation
Innovation driven growth for economic diversification, modernisation or exploitation of (radically
new) emerging areas
An economic transformation agenda based on 4Cs +C:
 1. (Tough) Choices: limited number of priorities on the basis of own strengths and international
specialisation – avoid duplication and fragmentation in European R&D Area
 2. Competitive Advantage: mobilize talent by matching RTD + I capacities and business needs
through an entrepreneurial discovery process
 3. (Critical Mass) Clusters and Connectivity: develop world class clusters and provide arenas for
related variety/cross-sectorial links internally in the region and externally, which drive specialised
technological diversification
 4. Collaborative Leadership: efficient innovation systems as a collective endeavour based on publicprivate partnership (quadruple helix) – experimental platform to give voice to un-usual suspects
+… 5. Common sense
«Innovation can not be dictated but it can be cultivated »
(The Federal Government and the growth of Regional Innovation Clusters,
J. Sallet et Al, 2009)
Origins of Smart Specialisation
http://ec.europa.eu/research/era/publication_en.cfm

‘Knowledge for Growth’ expert group (DG RTD)
launched concept in the framework of ERA;

Problem: fragmentation/imitation/duplication
public R&D investments;

Stresses role for all regions in the knowledge
economy, if they can identify competitive advantages
in specific R &I domains/clusters (not just winning
sectors);

Challenges: Smart specialisation has to embrace the
concept of open innovation, not only investment in
(basic) research.
of
“Most advanced regions invest in the invention of general purpose technologies, others invest in the co-invention of
applications of the generic technology in one or several important domains of the regional economy”
Dominique Foray 2010
An explanation by
Professor D. Foray
 It is not a planning doctrine that would require a region to specialize in a
particular set of industries.
 It is an approach to policy that considers whether those activities already
strong or showing promise for a region can benefit from R&D and
innovation
 Regions need to focus on certain domains but being focussed is not enough
they need to focus by developing distinctive and original areas of
specialisation (not by imitating each other)
 Smart specialisation is largely about the policy process to select and prioritize
fields or areas where a cluster of activities should be developed: let
entrepreneurs discovering the right domains of future specialisations
Collège du Management de la Technologie – CDM
Chaire en Economie et Management de l'Innovation – CEMI
What does "specialisation"
actually mean?
Not about specialisation in a narrow sense ("lock-in")
•
•
•
It means avoiding duplication and fragmentation of effort with scarce public resources
within the Union, thus helping in deepening the single market through "open" RIS³ and
inter-regional connections across the EU.
It means being selective and support the R&I activities that are relevant in view of
existing conditions and assets (e.g. evidence based policy evaluation, sound SWOT,…) and
breaking away from established lobbies and rent-seekers.
• Relevant in the sense of assessing how R&I can help transform the existing
economic structure in order to face globalisation
• Relevant in the sense of selecting that R&I activities with the highest potential
for knowledge spill-overs to irrigate large sections of the economy (relatedvariety)
It is neither "coffee for all" nor "picking winners from above". It is not about selecting
firms or sectors but the R& (broad) I activities and/or generic technology(ies) that can help
a regional economy diversify into higher value added markets, modernise/rejuvenate or
exploit new/emerging economic activites.
What is Smart Specialisation ?
= evidence-based: all assets
= no top-down decision, but
dynamic/entrepreneurial discovery
process inv. key stakeholders
= global perspective on potential
competitive advantage & potential
for cooperation
= source-in knowledge, & technologies
etc. rather than re-inventing the
wheel
= priority setting in times of scarce
resources
= getting better / excel with something
specific
= focus investments on regional
comparative advantage
= accumulation of critical mass
= not necessarily focus on a single sector,
but cross-fertilisations
“…The elements of economic productivity – strong infrastructure, a skilled workforce, and interrelated
networks of firms – come together with smart economic strategy on the regional level to drive prosperity”.
(Guidance on developing place-based policies for the USA FY 2012 Budget)
Steps to RIS3
Step 1: Analysis of regional potential for
innovation-driven differentiation
Step 2: RIS 3 design and governance – ensuring
participation & ownership
(1) Analysis
Step 3: Elaboration of an overall vision for the
future of the region
Step 4: Selection of priorities for RIS3 +
definition of objectives
Step 5: Definition of coherent policy mix,
roadmaps and action plan
Step 6: Integration of monitoring and evaluation
mechanisms
(2) Process
(6) Monitoring
RIS 3 Strategy
(3) Vision
(5) Policy mix
(4) Priorities
Who prepares the RIS3?
The actors in an innovation system:
"knowledge triangle" & "triple / quadruple helix"
 Enterprises (SMEs, micro, large, industry & services, creative industries, ...),
including key innovators
 Research centres, universities
 Cluster initiatives, business networks ...
 NGOs, consumers / users ...
 Regional development agencies, financial, incubators ...
 National authorities and /or regional (from different departments: economics,
research, education, environment, social ...), Managing Authorities ...
Cohesion
Policy
RIS3 is a process … of «entrepreneurial discovery»
What do they need?
Clients
Markets
Cooperation
Money
(value chains)
Enterprises
Enterprises
Enterprises
Research
Knowledge
Technologies
Services
With whom to
cooperate?
Who are your
customers /
competitors?
Is there critical mass /
excelence?
Creativity
Talents
Cohesion
Policy
See:
http://www.oecd.org/document/20/0,3746,
en_2649_34413_44924372_1_1_1_1,00.html
Who does NOT prepare
your RIS3?
 Consultants, experts
 European Commission
 JASPERS
 World Bank
 OECD
... but they can accompany the process, provide contacts, data material,
information, methodologies, assist with trans-national comparisons ...
Cohesion
Policy
Example: Finnland
New specialisation from existing know-how
(and new links) in Denmark
[Mapping of Mega-Clusters in Denmark (FORA)]
Aerospace2.Ind.mécatroniques
MetalManufacturing
3.Construction
Automotive
Forrest
Information6. TIC
Products
TechnologyCommunic
Building
.
Construction
Fixtures
Equipment
Materials
1.Alimentation
Production
Processed
Foods
Tobacco
Agricultural
Fishing Products
Santé
Heavy
Technology Machinery
Analytical
Instruments
Environnement
Power
Generation
Oil& Gas
Pharma
- Medical
ceuticals Devices
Heavy
Construction
Services
7.Mode & Design
Apparal
12.ChemicalProducts
5.Energies
4. Science de la vie
11. Business Services
Footwear
Leather
Jewelry Furniture
Publishing
&
Printing
13. Plastics
9. Transportation
10.Financial Services
Lighting
Textiles
Industries
créatives
Sporting
Hospitality
&
Entertain
- Tourism
ment
8.Loisirs et sports
50
Example: Berlin/Brandenburg
Conclusions on policy design
1)
Innovation is not just 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 university-enterprise 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)
Conclusions 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, place-based regional policies
Conclusions on the role of the public
sector: an honest broker
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): a new form of Public entrepreneurship?
(1) Analysis








Involves analysis, experimentation, debate and decision-making
SWOT: focus on potential for knowledge-based transformation
Wide view of innovation: embrace social as well as ecological innovation
Identify econ. differentiation potential, avenues for specialised techn. diversification
Support positioning of companies within international value chains and (niche) markets
‘Entrepreneurial discovery’ = tap existing entrepr. knowledge to identify priority domains
Use field knowledge of Universities and Tech Centres, incl. through practical exp.
Combine methods: foresight, surveys (delta), working groups, consultation within clusters, dedicated
experts, studies, pilot experimentation, structured interviews, evaluations, scenario making, etc.
TOP TECHNOLOGY REGION (TTR) - Eindhoven Leuven
Aachen (ELAt): The Swiss research firm BAK Basel was asked to
benchmark and map the economic strengths of this cross-border region.
The study identified and confirmed a number of the TTR’s strengths,
shown in the BAK Technology Competitive Index. The Index reveals the
technological strength of a region based on the scale and growth of the
relevant sector, the number of publications and the number of patents. 3
key sectors scoring consistently above average were identified. The aim is
now to enhance collaboration and clustering between these sectors.
(2) Process and governance
 Process needs to be interactive, regionally driven and consensus-based: ensure inclusive, open
prioritisation and avoid capture by vested interests
 Set up a dedicated Steering Group/Knowledge Leadership Group, a Management Team,
Working groups…and flagship projects, collaborative leadership: know what, know who and
know how.
 New demand-side perspectives given prominence: not just usual public suspects but businesses
in the driving seat
 Involve boundary spanners brokering new connections across sectors, disciplines and
institutions in order to explore « related-variety »
 Link national, regional and EU funds: involve stakeholders operating both outside and in the
region
Navarra: Navarra's modernisation strategy aims to lead the regional
structural transition from an industry-based economy to a knowledge-based
economy. It was developed through an in-depth SWOT analysis and visionbuilding process led by 33 high-level international experts. A concrete action
plan was developed in consultation with stakeholders, which was
subsequently discussed and approved by the Regional Parliament. All in all,
more than 5000 persons were involved in the strategy process.
(3) Vision
A shared, ambitious and realistic long-term vision: galvanise attention, facilitate priority-setting and
communication, motivate stakeholders and generates buy-in
Regional image linked to an economic transformation agenda: This is what we stand for! This is
where we have potential! This is where we want to go!
Linked to evidence-based analysis and focused on setting goals that are within reach: underpinned
with real substance, having the fundamentals in place.
Flanders: By 2020 Flanders wants to rank among the top five knowledgeintensive regions in Europe. To reach this target, the region has taken steps
towards a transformational policy approach. This focuses on value chains,
economic clusters, open innovation and ‘grand projects’, which are selective
investments in future-oriented domains with a high innovation and growth
potential and large societal impact. To reach this target ‘Vlaanderen in Actie’
was setup, a broadly-based initiative consisting of several breakthroughs in
the socio-economic domain. ViA is an action plan that entails more than a
moderated improvement or some growth percentage points. Namely, it
points to an evolution that fundamentally alters the landscape and society of
Flanders.
(4) Priorities
 Defines a limited number of innovation and knowledge-based development priorities in line with
existing/potential niches for smart specialisation
 Needs to be based on present and future competitive advantage and potential for excellence: defines
concrete, achievable objectives/goals
 In addition to technological, sectoral or cross-sectoral priority areas, horizontal priorities need to be
defined, e.g. (KETs and their difussion/application), social innovation, etc.
Berlin/Brandenburg: In 1998/99 a RITTS study laid the foundation for
an active innovation policy in Berlin. In 2007 it was decided to bundle
forces with the surrounding Brandenburg region. Five joint future Fields
of Excellence were identified: Biotechnologies and Medical technologies
and pharmacy; Energy technologies; ICT and new Media; Optical
technologies; Transport system technologies. These are underpinned by 4
cross-sectoral priorities: New materials, Production and automation
technology, Cleantech, Security. These fields present the regional strength
in regional publicly funded R&D and industrial activity. Innovation
support measures concentrate on strengthening private sector R&D and
knowledge transfer, especially for SMEs.
(5) Policy-mix/Action Plan
 Defines roadmaps and programme architecture, i.e. instruments,
projects (incl. project selection criteria) or pilots feeding priority
areas and objectives.
 Defines target groups, objectives/measurable targets, realistic
timeframes, results and outcome indicators, etc.
 Identifies sources of funding and presents indicative budget
allocations for actions.
 Trend towards holistic policy packages integrating support to
knowledge generation, diffusion and exploitation in single packages
targetting a variety of regional actors
OECD/European Commission guidance: Publications such as the joint
2011 OECD/European Commission book on “Regions and Innovation Policy”
or the 2011 EC Communication “Regional Policy for smart growth in Europe
2020” identify taxonomies of policy instrumetns and/or offer a catalogue of
possible innovation instruments and example from regions that have
successfully used them, which should act as an inspiration to regions to design
smart and efficient policy mixes.
(6) Monitoring & Evaluation
 Establishes monitoring and (on-going) evaluation process at level of strategy and at level of Action
Plan/Programme: assesses direct and indirect impact
 Measurable targets and qualitative and quantitative indicators (outputs and results)
 No standard menu: evaluations to be tailored to specific content and context of RIS³
 Measure progress and establish system of regular reporting, evaluation as learning process leading to
economic transformation towards higher value added activities and internationally competitive firms
 To be combined with peer-reviews for impartial, external advise (ex-ante and ongoing)
Lower Austria: The Innovation Assessment Methodology Lower Austria is a
comprehensive system of different monitoring and evaluation tools for Lower
Austria’s innovation policy. Its aim is to gain insight into results and impact of
innovation support services with the aim to improve policy instruments, justify
budgets spent and promote its success. One of the tools used is the BSC
Balanced Scorecard Methodology, a strategic performance management tool,
developed and heavily used in the private sector. In LA it is used to define the
objectives and target figures for the 6 pillars of Lower Austria’s economic
strategy (including innovation) and to break them down on intermediary level
as well as on program level.
EU /OECD project:
Designing smart specialisation strategies for cluster development in global
value chains
OECD (TIP group) and (Australia, AT – Lower and Upper Austria, BE -Flanders, FI -Lahti, DE Brandenburg, NL - Brainport, PL -Makopolska, ES – Andalucia, Basque Country and Murcia, UK – West
Midlands, Turkey, South Korea, CZ, EE, SW - Västra and South Africa): aims at identifying good
practices in policy development, methodologies and selection criteria for designing and assessing smart
specialisation strategies
Patents
Scientific Publications
A
1.6
Z
B
1.4
1.2
1
R
C
0.8
0.6
0.4
0.2
P
1998-2002
E
0
2003-2006
2007-2010
N
G
M
H
I
Employment
Questions for RIS3 analysis
1.
2.
3.
4.
5.
6.
7.
8.
Is the strategy based on an appropriate stakeholder involvement? How
does it support the entrepreneurial discovery process of testing possible
new areas?
Is the strategy evidence-based? How have areas of strength and future
activity been identified?
Does the strategy set innovation and knowledge-based development
priorities? How have potential areas of future activity been identified?
How does it support the upgrading of existing activities?
Does the strategy identify appropriate actions? How good is the policy
mix?
Is the strategy outward looking and how does it promote critical
mass/potential?
Does the strategy produce synergies between different policies and
funding sources? How does it align/leverage EU/national/regional
policies to support upgrading in the identified areas of current and
potential future strength?
Does the strategy set achievable goals, measure progress? How does it
support a process of policy learning and adaptation?
Can the strategy be regarded as a regional research and innovation
strategy for smart specialisation following the guidance provided by the
EU Commission? Which advice can be given to improve the strategy?
Cohesion
Policy
To register in the list of experts:
http://ec.europa.eu/regional_policy/ten
der/expression_en.cfm
Dimensions of expert analysis
Cohesion
Policy
Source: Eurada
Register here:
Regional
Policy
http://s3platform.jrc.ec.europa.eu/registration
BELGIQUE
• Région de Bruxelles-Capitale
• Vlaanderen
• Wallonia
ČESKÁ REPUBLIKA
• Jihomoravský kraj
• Hlavní město Praha
CROATIA
CYPRUS
CZECH REPUBLIC
• Moravskoslezský kraj
DENMARK
• Region Midtjylland (Central Denmark)
• Nordjylland
DEUTSCHLAND
• Berlin Brandenburg
• Freistaat Sachsen
• Weser-Ems
• Sachsen-Anhalt
ELLADA
• Attiki
• Eastern Macedonia and Thrace
• Western Greece
• Crete
• Epirus
• Central Macedonia
ESPAÑA
• Andalucía
• Aragón
• Canarias
• Cantabria
• Castilla y León
• Castilla-La Mancha
• Catalunya
• Comunidad Valenciana
• Galicia
• La Rioja
• Madrid
• Navarra
• País Vasco
• Principado de Asturias
• Región de Murcia
• Illes Baleares
FINLAND
• Kainuu
• Päijät-Häme
• Pohjanmaa (Ostrobothnia)
• Satakunta
• Oulu
• Etelä-Pohjanmaa (South Ostrobothnia)
• Lapland
• Tampere region
• Uusimaa (FI, the Helsinki region).
• Varsinais-Suomi (Southwest Finland)
• Lappeenranta – Imatra
• Pohjois-Savo (Northern Savonia)
FRANCE
• Alsace
• Aquitaine
• Bretagne
• Centre
• Champagne-Ardenne
• Corse
• Guadalupe
• Guyane
• Languedoc-Rousillon
• La Réunion
• Limousin
• Martinique
• Bourgogne
• Nord-Pas-de-Calais
• Picardie
• Rhône-Alpes
• Franche-Comté
ITALIA
• Lombardia
• Marche
• Piemonte
• Puglia
• Sardinia
• Sicilia
• Emilia-Romagna
• Toscana
• Umbria
• Veneto
• Basilicata
• Liguria
• Abruzzo
• Calabria
• Autonome Provinz Bozen-Südtirol – Provincia Autonoma
Bolzano-Alto Adige
• Campania
• Lazio
• Molise
• Friuli – Venezia Giulia
LATVIA
LITHUANIA
MAGYARORSZÁG
• North-Hungarian Region – Miskolc
• Észak-Alföld
• Dél-Alföld
• Közép-Dunántúl (Central Transdanubia)
• Közép-Magyarország (Central Hungary)
• Dél-Dunántúl (South Transdanubia)
• Nyugat Dunántúl (West Transdanubia)
MALTA
NEDERLAND
• Noord Nederland
ÖSTERREICH
• Niederösterreich
• Oberösterreich
POLSKA
• Dolny Śląsk (Lower Silesia)
• Lubelskie
• Lubuskie
• Mazowieckie
• Podkarpackie
• Pomorskie
• Świętokrzyskie
• Wielkopolska
• Województwo Podlaskie
• Łódzkie
• Warminsko-Mazurskie
• Małopolskie
• Kujawsko-Pomorskie
PORTUGAL
• Alentejo (Alto, Baixo, Central e Litoral)
• Centro
• Norte
• Região Autónoma dos Açores
• Lisboa e Vale do Tejo
• Algarve
• Região Autónoma da Madeira
ROMÂNIA
• Vest
• Nord-Est
• Nord-Vest (North-West)
SLOVENIA
SLOVENSKÁ REPUBLIKA
• Bratislavský kraj
SVERIGE
• Skåne
• Västerbotten
• Västra Götaland
UNITED KINGDOM
• Buckinghamshire
• Cornwall and the Isles of Scilly
• Kent
• Northamptonshire
• Northern Ireland
• West Midland
• Wales
• Devon
• Greater Manchester
Observers
NORWAY • Nordland
SERBIA • Vojvodina
Commission
support for
RIS3:
S3Platform:
• 122 EU regions +
8 countires
(SK, LT, MT,
SI, HU, CY, HR, CZ)
World Bank
support for PL,
BG, RO
•28 peer-reviewed
• analysis & data
• training
• communication
RIS3 policy
events:
• 15 national
• 4 trans-national
Expert analysis
and support
Cohesion
Regional
Policy
Policy
13 national
62 regional
• thematic
• process
Horizontal issues & policy
delivery instruments











Green Growth: only sustainable is smart – Eco-innovation & Energy efficiency
Digital agenda: enabling knowledge flows throughout the territory –connected regions
Clusters for regional growth: business ecologies that drive innovation
Innovation-friendly business environments for SMEs: good jobs in internationally
competitive firms
Social Innovation: new organisational forms to tackle societal challenges
Stronger focus on financial engineering: not only grants
Lifelong Learning in research and innovation: support knowledge triangle (KICs) and
university-enterprise cooperation
Key Enabling Technologies: systemic potential to induce structural change
Research infrastructure/centres of competence: support to ESFRI and EU wide
diffusion of leading edge R&D results
Creativity and cultural industries: innovation beyond technology and outside
manufacturing
Public Procurement for market pull: Public procurement of innovative solutions for
lead customer effects
Cohesion
Policy
Thematic guides
 Incubators
 Universities & regional development
 Broadband
 Service innovation
 Creative industries
 Green growth
 Entrepreneurial mind-set
 Social innovation
Soon available:
► Clusters
► Public procurement for innovation
► Horizon2020, COSME – CSF funds
► SME innovation
► Technology Parks
Inspiration for innovation support:
•
Review of regional innovation (OECD)
https://community.oecd.org/community/smartspecialisation
•
State Aid framework for Research and Innovation
•
Analysis of regional innovation http://www.rim-europa.eu
•
EURADA • Directory of
"No-Nonsense" Activities to Build S³-minded Regions;
http://www.insme.org/files/3019
67
Smart Guide to Innovation-Based
Incubators (IBI)
Published by DG REGIO/ENTER based on 25 years of incubation
experience in the Union
 Business and Innovation Centres for new entrepreneurs and SMEs that
intend to develop innovative ideas.
 European Business Network started by the Commission in 1984 and
continuously supported by nearly 15 years: 100 BICs created between 1984 and
1998.
Support services to entrepreneurs, helping them to transform into reality their
innovative business ideas, and the delivery of tailored services to existing SMEs,
aimed at modernising and innovating them.
“To achieve a sustainable social market economy, a smarter greener economy...the EU needs to
provide more attractive framework conditions for innovation and creativity…we need technical
support to promote the incubation and growth of small innovative firms…”
“European Union 2020 Strategy” COM 647 (2009)
http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/innovation_incubator.pdf
Connecting Universities to
Regional Growth
Mechanisms by which universities can and do
contribute to regional development:
• Enhancing regional innovation through their
research activities
• Promoting enterprise, business development and
growth
• Contributing to the development of regional
human capital and skills
• Improving social equality through regeneration
and cultural development
By John Goddard, emeritus Professor of Regional Development Studies, Centre for Urban and Regional
Development Studies Newcastle University (UK)
http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/documents/connecting_universities2011_en.pdf
Cohesion
Policy
69
Lifelong learning and Universityenterprise cooperation
Guide DG REGIO/EAC on “Connecting Universities to Regional Growth” at http://ec.europa.eu/regional_policy/themes/index_en.htm
Innovation Assistant Programme, Lower Austria, AT (2002):
Encouraged SMEs to include a strategic orientation in their business plans with help from
newly graduated students (University of Applied Sciences).
Until March 2007 the programme funded 52 Innovation Assistants. Average cost for each
action: 30,000 € (contributed by ERDF and regional funds).
- 60% of the SMEs a permanent post ‘innovation assistant’ was kept;
- 80% of the SMEs developed one or more new products during the project;
- 70% of the SMEs had increasing turnover based on the innovations;
- A significant number of new firms have grown and reached international markets in 2-3 years;
Results were passed on to 10 other regions through ERIK (ERDF funded network).
RegioStars 2013 winner: UPTEC
The Science & Technology Park of the University of Porto (PT)
Total investment: € 22m (€ 15.4m ERDF)
Identifying key innovation sectors, developing clusters and leveraging skills between academia and
local business:
4 innovation poles: creative industries sea technology & biotechnology, business, incubation
110 firms assisted – 95 start-ups, 5 large companies, 5 innovation centres
800 graduate jobs created
Why is it worth investing in CCI?
Cultural and Creative Industries (CCI) have a role to
promote smart, sustainable and inclusive growth
Why is it worth investing in CCI?
 Creating preconditions
 Strengthening CCIs
 Spill-over effects
A number of regions and countries have yet to recognise
the importance of CCIs and added value that they can
provide
Handbook highlights a number of examples which prove
that different governments have found effective ways to
set up working mechanisms to support CCIs
Handbook serves as an inspiration for those regions and
countries that have not yet succeeded in implementing
cultural and creative strategies.
Database of examples, online tool: everybody can submit
good examples, initiatives and practices on the webpage
www.creativeindustries.ee/omc
Creativity and cultural industries
Berlin, DE: regional revitalisation through creative industries (2008)
 Kreativ Coaching Centre (KCC) in Berlin, established in 2008 and supported by
ERDF;
 Helps emerging entrepreneurs in creative industries by providing individual
assistance: experienced coaches, qualified in business administration and creative
industries, who offer advice and expertise to young and growing companies to solve
their problems in a non bureaucratic, hands-on way.
Debrecen, HU – Creative Industry Incubator
 The university of Debrecen set up a Creative Industries Incubator in 2009
 Hosted in a former Soviet Army Camp (transformed into a top-notch facility
offering offices, attractive operation conditions, access to high-tech equipment).
By February 2010 85% of space was rented out to young and start-up companies
as well as spin-offs from the University at well below market rates
The incubator proved to be highly popular particularly among high-tech ICT for
which it provides a steady flow of knowledge and human resources from the
university, which is next door.
Design for user-centred innovation
Design support for SMEs, De Montfort Univ., East Midlands, UK
Design support: generation of over 40 commercial products and created over 50
new jobs for regional SMEs over the past 5 years.
 Partnerships with regional design consultancies and universities to meet the
needs of SMEs.
 An € 800 000 ERDF grant which provided a 7.5 x return on investment with
respect to GVA increase and increasing as more products are brought to market.
The SEE project (‘Sharing Experience Europe – Policy, Innovation, Design’
(ERDF INTERREG IV C)
 A network of 11 organisations sharing knowledge for developing new thinking,
disseminating good practice and influencing local, regional and national policies for
design and innovation.
 Members from UK, BE, DK, EE, FI, FR, IE, IT, PL, SI, ES and their regional
governments committed to exploring improvements in the delivery of innovation,
entrepreneurship and design through individual or joint policies
“When the arts are integrated with business and science, they can influence solutions and productivity:
Creative design provides a way to add a value to products in niche markets. That value is rooted in the
aesthetic or emotional appeal of these products to certain markets, which can create a brand loyalty”.
(‘Unveiling the Creative Economy in Arkansas’ 2009, Regional Technology Strategies Inc.)
The Smart Guide to Service
Innovation
Concepts of service innovation
10 Do’s and Don’ts
20 good examples …
of how to unlock the transformative power of innovation in
the service sector and innovation through innovative business
services for regional structural change and industrial
modernisation.
www.europe-innova.eu/web/guest/home/-/journal_content/56/10136/961034
http://s3platform.jrc.ec.europa.eu/guides
Smart & Sustainable
•
Innovation & sustainable growth are interdependent:
two sides of same coin!
•
Include key sectors such as energy efficiency &
renewables, eco-innovation, resource efficiency, water,
transport, bio-economy into RIS3
 Report & tool on carbon management of OP's
 GPP criteria on waste water infrastructure
“A green growth strategy is centred on mutually reinforcing
aspects of economic and environmental policy. It takes into
account the full value of natural capital as a factor of production
and its role in growth […] By pushing the frontier outward,
innovation can help to decouple growth from natural capital
depletion.”
OECD, Towards Green Growth, May 2011
Supporting resource efficiency
in SMEs
RegioStars 2013 winner: ENWORKS
North West England, UK
Total investment: € 14.8m (€ 7.4m ERDF)
- Boosting resource efficiency in SMEs
- 12.000 businesses assisted with converting environmental
challenges into competitive advantages by becoming
more resource efficient
- Reducing their carbon impact
- Increasing productivity
- Web-based support & toolkits
 Social innovations are social in both their ends and their means
(user-driven, co-creation, civil society involvement, …).
 Social innovations are new ideas (products, services and models)
that simultaneously meet social needs (care, education,
employment, work organisation, urban, environment …) more
effectively than alternatives and create new social relationships or
collaborations.
 They are innovations that are not only good for society but also
enhance society’s capacity to act.
The guide contains
• practical examples
• a 10 step model for methods that help developing and scaling up
social innovations
• information on ERDF and ESF (and PSCI) support possibilities
that can be seized in the forthcoming programming period
Entrepreneurial Mind-sets
and Skills
Transversal competences like creativity, sense of initiative and
entrepreneurship are vital for innovation to reach the market.
Entrepreneurship skills and attitudes should therefore be fostered
in students and researchers to develop their proactivity, flexibility,
autonomy, the capacity to manage projects and achieve results.
Entrepreneurship programmes provide an excellent opportunity to
connect the education systems to the local economy and gives
incentives for students to remain in a region.
The guide includes:
 Key features of current practice in entrepreneurship
training
 Involvement of teachers, business and private
organisations
 The Oslo Manual to Entrepreneurship training
 Good practice examples
Clusters for regional growth
RegioStars 2013 finalist: SLIM III
"Systematic Leadership and Innovative Management"
Dalarna, Gävleborg and Värmland regions (SE)
Total investment: € 3.2m (€ 1.6m ERDF)
- 15 clusters: 700 companies, 60.000 employees
- 4 universities: 55.000 students, 3.000 researchers
- National authorities
•
A learning platform to stimulate business innovation by helping individual firms and
make them invest time and money in capacity building and R&D-activities
“ 38% of all European employees work in industries that concentrate regionally – in clusters…The focus of
cluster programmes needs to shift from capacity building…towards a clear orientation on excellence, focusing
on clusters with the ability to upgrade in the face of global competition and ensuring the consistent provision
of public knowledge infrastructure…”
(European Cluster Policy Group – Final recommendations – A call for Policy Action 2010)
Innovation-friendly business
environment for SMEs
ifex: Initiative for Start-ups and Business Transfer – Baden-Württemberg,
DE (European Enterprise Awards Winner in 2006)
 Online portal for start-up and business transfer policies, giving access to 1,400
providers to tailor-made educational and support services to specific target
groups (schools, universities, women, ethnic and minority groups).
 A permanent Unit in the State Ministry of Economic Affairs and managing
the nation-wide “German Agency for Women’s Start-ups” on behalf of three
federal Ministries.
Units for Intellectual Property Promotion (UIPP) PT, ERDF (2001-2007)
Bringing the National Patent Office closer to companies and universities.
Services to researchers, students and to SMEs for pre-diagnosis of IPR needs.
 Training, awareness activities and seminars, IPR advertising and dissemination,
technical assistance and advice by specialists.
 Partnerships network between 2 business associations, 10 universities, 7
technological centres and 3 science and technology parks.
2001-2007: the number of hi-tech patent applications to EPO per million
inhabitants increased from 0.4 to 7.5 in PT (European Innovation Scoreboard).
Innovation-friendly business
environment for SMEs
“Knowledge Vouchers: Tickets to success”, NL
IRE Award for best European Scheme
Limburg Regional Technology Plan 1997- 08’ ERDF pilot
Pioneering an innovative, hands-on approach to knowledge transfer
for SMEs.
 SMEs entitled to a number of consultancy or research days, and
allow for visiting large, knowledge providers besides the universities
(companies, research and educational institutions).
Huge impact on the province – improving money flows, solving
problems and creating opportunities and boosting cross-border
cooperation (NL, BE, DE).
« Policies need to distinguish clearly between a few highly innovative and high growth potential firms and the
great majority of SMEs, reflecting the different ways in which they innovate. The different needs can be
characterised by a distinction between Science, Technology and Innovation mode of innovation on the one
hand, focused on R&D and breakthrough innovation and Doing, Using and Interacting mode of innovation
on the other, focused on incremental innovation in the « ordinary » SME. Both must be encouraged » (OECD,
2010)
Stronger focus on financial
engineering
ACHIEVE MORE, UK:





A Joint Venture (Rivers Capital Partners & E-Synergy) to invest M€ 20 in 75 to 100 companies over
the next 5 years: € 8.5 M from the ERDF JEREMIE programme
A high leverage effect: an additional M€ 11 from Angel Investors across the UK.
Approach: evaluation of the variety of funding mechanisms used around the world
Results: a tool which ventures quicker (6 -10 weeks) helps in the selection of ventures that deserve
funding to get them early market revenues.
Replication: this model will be followed for the European Creative Industries Alliance and the
European Mobile and Mobility Industries Alliance
Key Enabling Technologies
(KETs)
KETs: Nanotechnology, Micro and Nanoelectronics, Industrial
Biotechnology, Photonics, Advanced Materials and Advanced
Manufacturing Systems
“Knowledge and capital intensive technologies associated with high R&D
intensity, rapid and integrated innovation cycles, high capital expenditure
and highly skilled employment. Their influence is pervasive, enabling
process, product and service innovation throughout the economy. They are
of systemic relevance, multidisciplinary and trans-sectorial, cutting across
many technology areas with a trend towards convergence, technological
integration and the potential to induce structural change”.
“…the nation requires a coherent innovation policy to ensure U.S. leadership…Private investment must be
complemented by public investment. Key opportunities to overcome market failures include investing in the
advancement of new technologies with transformative potential, supporting shared infrastructure and
accelerating the manufacturing process through targeted support for new methods and approaches”
“Report to the President on ensuring American leadership in advanced manufacturing” President’s Council
of Advisors on Science and Technology, June 2011
Five investment models provide a broad
spectrum of funding options
Public
sector owns
and
operates the
entire
network
Group of end users
oversee the contract to
build and operate their
own local network
Bottomup
Public
design
build
and
operate
Joint
venture
Ownership of the
network is split
between the public
and private sector
5 models
Private
design
build
and
operate
Public
outsourc
ing
Managing
Authority
provides a
grant to
private sector
to assist in
deployment
of new
network
Single contract for
construction and operation
of network, but public
sector retains ownership and
some control
http://s3platform.jrc.ec.europa.eu/home
Digital agenda
RegioStars winners
RegioStars 2010: http://ec.europa.eu/regional_policy/innovation/regiostars_en.htm
High Speed Broadband roll out in Auvergne 2006-9 (10 M€ ERDF)
 One of the most sparsely populated regions in France, launched the first
telecommunications public/private partnership in the country.
 EU funding: EUR 10 million ERDF grant to extend high-speed broadband coverage to all
households.
 Goal: extend high-speed broadband coverage to 100% of households. Mission
Accomplished: Some 99.6% of lines in Auvergne are now eligible for high-speed broadband
through DSL technology, while the other 0.4% have a satellite option.
Computer Literacy Basics for a Lithuanian e-Citizen, 2006-8
(EUR 2,694,534)
 Provides computer literacy training, in line with the objectives established by the national
Knowledge Society Council, establish Public Internet Access Points
Key target groups: people living in remote areas with little access to digital services, in
particular in rural regions, the elderly and those with disabilities.
 Private and public partnership with local municipalities made to reach directly persons
living in district centres and rural areas.
 Over 50,400 adults have completed the LIA courses - helping to boost the overall
competitiveness of Lithuania’s economy by upgrading skills.
“Freedom of location increased thanks to ICTs will emphasize the significance of features of place”.
(Talvitie, J. 2003)
Public Procurement for
innovation market pull
East of England pre-commercial procurement for health care innovations
 May 2009: first pre-commercial procurement of an innovative process, material, device,
product or service to help meet current health priorities in the region;
ERDF funded initiative: Up to £100,000 was awarded for winning tenders in a first phase
with the potential of further financial assistance to develop and evaluate projects in a second
phase.
The aim is to provide procurement opportunities for innovative health care businesses and
bring the benefits of new innovations and technologies to patients.
RAPIDE ERDF Fast Track Network of 12 regions from across the EU
Exploring how the public sector can influence innovation.
Lead by the Regional Development Agency of South West England (UK), between 2008-2010
selection and adaptation of:
1. Innovation Voucher Schemes
2. Pre-Commercial Procurement projects (PCP)
3. Business Angel Networks
4. Assessment tool for start-ups in incubators
5. Pitching tool (media-based) to bring innovators to investors
« The public sector constitutes an enormous market accounting up to 16% of GDP…public procurement is
potentially one of the most powerful levers for effecting behavioural change amongst its private sector
suppliers » Kevin Morgan 2010
 Designed to assist regions and Member States in developing RIS3 strategies
 Managed by a team established at JRC-IPTS in Seville
 Monitored by a Steering Team incl. DG REGIO, RTD, ENTR, EAC, INFSO and
SANCO
 Input from a Mirror Group of European high-level experts and network
representatives
http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/s3platform.cfm