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Smart SpecialisationSmart Specialisationfor Smart Growth for Smart Growth
The general policy contextThe general policy context One of the deepest recessions in decades
Annual Growth Survey: Outlook in the absence of reform remains 1.5 % for the next decade (risk of “lost decade” scenario or “sluggish recovery” at best)
Europe with its high-cost economy must react to avoid decline and speed up productivity growth and increase its innovation capacity!
Europe 2020: a coordinated, comprehensive programme of reforms, driven by a long-term vision
3 dimensions: Smart, Sustainable, Inclusive Growth
Europe 2020: 3 pillars, 7 flagshipsEurope 2020: 3 pillars, 7 flagships
Smart GrowthSmart Growthdeveloping an economy based on knowledge and
innovation
Sustainable Sustainable GrowthGrowth
more efficient, greener and more competitive economy
Inclusive Growth Inclusive Growth fostering a high-
employment economy delivering social and territorial cohesion
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 2020 Headline indicator:
3% GDP for R&D
• Proposed new indicator for innovation:
Share of fast-growing innovative firm
s
Regional Innovation Scoreboard - 2009See: http://www.proinno-europe.eu/page/regional-innovation-scoreboard
Why Innovation
Union?
… too few innovative regions …
Regions!
Regions!
Involve all regions and avoid "innovation divide“
Too much funding allocated to overlapping projects or priorities where regions lack relative strength
Little is spent on pooling resources and expertise through trans-national projects (e.g. to support research infrastructures or emergence of world-class clusters)
MS to improve their use of existing SF for research & innovation projects, incl. skills development and smart specialisation strategies. Post-2013: MS should continue to increase their focus on innovation and smart specialisation
Cohesion Cohesion Policy Policy
Funding for Funding for RTD and RTD and
innovation innovation 2007-20132007-2013
… … more more needed … needed …
Smart Growth CommunicationSmart Growth Communication
Accompanies IU Communication = RP Upgrade
Joint Communication (REGIO, RTD, ENT, EDU)
RP as key delivery mechanism for EU2020
More ERDF for education, research, innovation
To act as catalyst for change in all regions based on development of smart specialisation strategies
SF R&I investments to be based on such strategies
Make more effective and synergetic use of public funds (ERDF, FP7, CIP, own funds).
Make more extensive use of financial engineering (venture/risk capital, loans, guarantees)
Use more peer-review and independent experts for ERDF-funded research projects
Use ERDF to fund shortlisted FP7 and CIP projects
Make more use of peer learning via platforms and networks for improving regional innovation policy
Further recommendations:Further recommendations:
Examples of recommended actionsExamples of recommended actions
Support to innovation clusters, science parks, incubators, voucher schemes
SME support services encompassing the whole innovation cycle from idea through R&D to exploitation and commercialisation
Promotion of entrepreneurship education and training and transversal competences such as creativity
Support to knowledge triangle and university-enterprise cooperation
Support to financial engineering: e.g. Jeremy holding funds in the regions
Development of attractive regional research infrastructure and/or supporting researchers to link into/make use of excellent research facilities (e.g. ESFRI – European Strategy Forum on Research Infrastructures)
Integration of cultural and creative industries as well as design into development strategies,
Investment in ICT, e.g. high-speed internet access
Use of pre-commercial type of public procurement for innovative products and services
Examples of recommended actionsExamples of recommended actions
Smart Specialisation Smart Specialisation StrategiesStrategies
= evidence-based: all assets
= 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
= get better/excel in area of specialisation
= not necessarily focus on a single sector, but cross-fertilisations
= focus investments on regional competitive advantage
= accumulation of critical mass
What is Smart Specialisation ?What is Smart Specialisation ?
In a nutshell
Smart Sp. Strategies – why?Smart Sp. Strategies – why?
Smart Sp. Strategies (why?) Smart Sp. Strategies (why?)
Smart Sp. Strategies (what?)Smart Sp. Strategies (what?)
Smart Sp. Strategies (what?)Smart Sp. Strategies (what?)
Smart Sp. Strategies (how?)Smart Sp. Strategies (how?)
Is this only for high-tech regions?Is this only for high-tech regions?
Surely not! It provides a strategy and global role for every regional economy, irrespective of whether they are innovation leaders, followers or catching-up, whether they are mainly driven by agriculture, manufacturing or services.
It is not only about research, but also about non-technological innovation (e.g. services, marketing, organisational innovation), and about open innovation.
It is also not only about a simple industrial specialisation of a region X in a particular sector but suggests to specialise in R&D and innovation to provide new impetus and growth potential for that sector and also to diversify by focussing on unlocking growth in complimentary sectors/activities.
FAQs
What if you specialise in the next What if you specialise in the next declining sector?declining sector?
Sectors decline in regions/countries because they are either outcompeted or outsmarted by competitors or because of disruptive innovation that puts their traditional business model in the bin. In both cases injecting innovation through smart specialisation strategies can help avoid this fate.
In addition, one important element of smart specialisation strategies should be that they help to alleviate the economic dependence/lock-in of a region on only a few sectors, as their goal is not only to help these sectors innovate but to diversify economic activities, embedding competencies in the region and supporting success in new markets.
FAQs
How relevant is this for SMES?How relevant is this for SMES?
FAQs
There is not bias in the concept towards big or small, high-tech or low-tech or towards any sectors. The key about smart specialisation is that it is based on a discovery process of new opportunities in the regions and that it is done with business for business.
SMES are key for Europe 2020 and EU Regional Policy and they will have to be targeted through the right policy mix and instruments (SME support actions, clusters and centers of expertise, voucher schemes, etc. – see Smart Growth Communication for examples of ERDF funded actions).
FAQs
Do you have evidence this works?Do you have evidence this works?
We know and there is evidence from analysis that regional innovation strategies deliver employment and growth for regions. Smart Specialisation is a relatively new concept, building on and further improving regional innovation strategies.
And we know that economic specialisation has increased productivity based on an enhanced knowledge and skills base in producing goods and services.
Having said this there are no easy answers. Innovation is systemic not linear and depends on multiple variables and interactions. This means that we have to get a multitude of things right.
Example: Flanders
By 2020 Flanders wants to rank among the top five knowledge-intensive European regions.
A SWOT analysis combined with a European foresight study and a stakeholder and expert consultation (in 2006) resulted into six strategic technological and innovative clusters, specified in ten thematic “spearheads” = breakthrough initiatives)
Investments will focus on these areas with a variable budgetary basis combining direct funding, guarantees and loans, and strategic use of EU funds.
Regions towards SRegions towards S33
The six cluster domains for smart specialisation inFlanders are: 1) Transport - Logistics - Services - Supply chains; 2) ICT and Services in Healthcare (e-health);3) Healthcare: Translational Medicine, Nutrition;4) New Materials - Nanotechnology - Manufacturing industry -
Sustainable Chemistry;5) ICT for Socio-economic innovation (e-government, e-learning); 6) Energy and Environment for Services and Industry
Info: Department Economy, Science and Innovation (EWI), http://www.ewi-vlaanderen.be/
Regions towards SRegions towards S33
Investments will focus on these areas with a variable budgetary basis combining direct funding, guarantees and loans, and strategic use of EU funds.
Example: Navarra
Navarra has developed a vision and strategic regional plan (Navarra Moderna) to steer it from an industrial to a knowledge based economy and position it among the 20 leading European Regions by 2030 (GDP/Capita).
The plan is based on a comprehensive process including SWOT, international benchmarking, foresight and a broad citizen consultation. It involves clear targets and continuous monitoring and evaluation.
3 key areas are identified: Health Care economics, Eco-friendly economics and talent economics. It involves a strong education and human resources based and social component (social inclusiveness index).
Regions towards SRegions towards S33
Example: Lower Austria
Since mid-90s the region went through several strategic prioritisation exercises that led to a focus on a number of specialisations supported by four techopoles that promote the cooperation of industry with R&D
These are: 1) Biotech and regenerative medicine, 2) Agro- and environmental biotech, 3)Material, process technology, microsystems engineering and medical systems and 4) Bioenergy (under construction)
Strong cross-border dimension and outward orientation: CENTROPE region, cooperation on opening new markets and complementary value chains.
Regions towards SRegions towards S33
The SThe S33 platform platform To assist regions in the process of developing S3: strategic
intelligence, methods, experts, advice
To be set up and managed by a team established at JRC-IPTS in Seville. Steering Team incl. DG REGIO, RTD, ENTR, EAC, INFSO and SANCO
Develops smart specialisation guide
Elaborates peer-review methodology
Toolbox of indicators and case studies
Database of experts and practitioners for peer-review
Web-interface, learning events, etc.
Working with the regions: Platform to be structured and based on regional needs/input Involvement of European networks in ‘mirror group’ (e.g. ERRIN, EURADA, EBN, EEN,
UEAPME) First workshop on 10/11 March 2011 in the CoR: The S3 Platform: How to assist
regions in developing smart specialisation strategies? We are currently collecting declarations of interest from regions to cooperate with
the platform and to develop and implement smart specialisation strategies Launch of platform: Regions for Economic Change conference 23/24 June 2011
The SThe S33 platform platform
