European Regional Policy for the promotion of innovation: the Lisbon Agenda

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• European Regional Policy for the promotion of
  innovation the Lisbon Agenda
• Brussels, 24th July 2003
• Regions of Knowledge pilot action -DG RTD
• Dr. Mikel Landabaso
• EU Commission, DG Regio A1
• mikel.landabaso_at_cec.eu.int

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• European regional innovation policies
• In order to achieve Lisbon tap under-utilised
  regional innovation potential
• Cohesion and Competitiveness the two sides of
  the same coin
• An integrated territorial policy versus a narrow
  Sectoral approach
• An innovation policy of proximity which targets
  SMEs in particular

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• European regional innovation policies
• Opening mindsvsopening roads
• Promoting innovation building on intangibles vs
  traditional regional policies focusing on
  physical infrastructures
• Subsidiarity in action helping regions help
  themselves
• From top down dirigisme to leadership in
  partnership with the private sector
• Setting the foundations of regional innovation
  systems
• Exploring new policy avenues to translate the
  Lisbon objectives into regional realities

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• New objectives
• Policies must aim to make the regions business
  more competitive internationally, develop new
  higher added-value activities and exploit new
  niche markets
• not to reduce financial burden on local
  entrepreneurs,
• but to bring businesses into networks where
  they can co-operate,
• and have access to sources of knowledge and
  technology.

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• New objectives
• it is important to build an attractive Regional
  Image on the regions own identity in the global
  economy
• consolidate and attract a pool of talents
• effectively sell the quality of life and their
  educational, technological and research
  environment

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• New objectives
• Bring your brainsand your family too
• we have the socio-economic environment and the
  policies to valorise them
• instead of
• Bring your business to exploit our low labour
  costs and benefit from our low taxes

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• New instruments
• Microeconomic level
• Facilitate business innovation
• reducing time to market,
• improve the efficiency of production cycles,
• increasing quality, design,
• innovation knowledge management
• etc
• by appropriate bridging/linking policies to
  Knowledge technology resources...

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The Networked Economy
BusinessConsultantsServices
Public SectorNational/RegionalAdministration
Universities
Innovation ManagementTechniquesTechnology
AuditsTechnology Foresights
InnovationSupport SchemesBusiness Innovation
Centres
Graduate Placement SchemesUniversity-EnterpriseC
ooperation...
Intermediaries
Big Firms
TechnologyCentres
Value Chain ClustersMentoring Schemes...
EnterpriseSME
Technology Transfer ProjectsRD Valorisation
Cluster PolicyBusiness Forums
Seed Capitalventure CapitalBusiness Angels
EEEEnterpriseSME
Finance-Banks
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• New instruments
• Microeconomic level
• Reduce entry barriers for businesses,promote
  entrepreneurship and provide real business
  services to business networks
• in contrast to
• Public subsidies to individual businesses
  through horizontal and automatic programmes of
  public aid.

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• New instruments
• Mesoeconomic level
• Business climate that fosters the creation,
  dissemination and adaptation/adoption of
  knowledge (codified/tacit) that increases the
  regional competitiveness attractiveness.
• Social capital and institutional
  efficiency creating public-private partnerships,
  strengthening business co-operation networks
  (clusters), better matching existing RDTI
  resources and infrastructures to business
  innovation demand

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A fragmented regional economy Less favoured
regions
SMEs
Large firms
SMEs
SMEs
SMEs
SMEs
Large firms
SMEs
Sectoral Associations
Regional Government
Universities
SMEs
SMEs
SMEs
SMEs
Regional economy
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
Chamber of Commerce
SMEs
Technology Centers
SMEs
SMEs
Business Services
SMEs
Large firms
SMEs
SMEs
SMEs
SMEs
Technology Consultants
SMEs
SMEs
SMEs
SMEs
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Open gate International RD/academic excellence
networks
SMEs
SMEs
Cluster
SMEs
SMEs
SMEs
SMEs
Open gate International technology transfer
networks
SMEs
Large firms Tech. Centers Sect. Associa- tions
Valorisation of RD and Tech. Transfer Office
SMEs
Science base Universities Public
RD Laboratories
Regional economy
SMEs
Large firms
SMEs
Open gate International value chains
SMEs
Regional government
SMEs
Global economy
SMEs
SMEs
SMEs
Technology Centers
SMEs
Business intermediaries Cham. of Comm. Local
Agencies BICs
Business services tech. con- sultants
SMEs
SMEs
SMEs
Sectoral Associations
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
SMEs
Open gate International business consultants
specialized business services
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• New planning implementation systems
• The public sector as facilitator, broker,
  catalyst.
• provide leadership, rather than control
• promoter and catalyst for economic development
• not to be planned by a enlightened elite using
  a linear procedure (with expensive consultants)
• be amended on a permanent basis (learning by
  doing) pilot experimentation and evaluation,
  taking risks and learning from mistakes.
• have a very wide and multidisciplinary focus and
  permanently improving human capital through
  education and training.

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• New planning implementation systems
• Key role for Regional Governments in the
  conception implementation of these policies
• enjoying a strategic position for setting up
  public-private co-operation networks,
• creating a suitable climate for innovation,
  through consensus, partnership and
  co-ordination
• analysing the actual innovation needs of SMEs
  and of the principal obstacles facing them,
• raising awareness of the need for innovation.

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• New planning implementation systems
• Such policies cannot be effectively developed
• without the direct participation of the private
  sector in planning and in implementation
• without understanding and approaching the
  agendas of others active RTDI in the region,
  semi-public agencies, technology centers,
  universities and trade unions.

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Regional disparities in Europe in business
expenditures on RD (BERD)( of GDP)
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What measures European regions choose?Technologic
al innovation related measures within PRAI 2001-2
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• Proposed priorities
• contributing to the Lisbon Objectives
• 1. Regional Innovation Systems
• Clusters and Business Networks
• University-Enterprise connections
• Access to advanced business services knowledge
  and innovation management, technology auditing
  and forecasting, etc.
• 2. Entrepreneurship and new start-ups
• Support to spin-outs/spin-offs
• Innovation finance and incubation facilities

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New departures for a more efficient regional
innovation policy

• From RTD to innovation promotion
• Support all the necessary steps not only
  technology related ones.
• Change the emphasis from a "technology-push"
  into "demand-pull".
• From physical infrastructure developments to
  institutional support for the creation of
  innovative environments...
• Strengthening networks of co-operation which
  engender a collective process of learning that
  fosters innovation at regional level.

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New departures for a more efficient regional
innovation policy

• Indigenous research versus technology transfer
  accessing technology sources in the periphery
• Not only the generation of indigenous RTD
  activities but also facilitate access to
  technological developments elsewhere
• Facilitate technology transfer and the flow of
  knowledge, be it tacit or codified, across
  regions.
• The regions themselves playing the leading role
  in the promotion of innovation on the basis of
  subsidiarity and economic efficiency...
• Adapted to the particular features of the
  Innovation process in each region in which the
  regions themselves play the key role.

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New departures for a more efficient regional
innovation policy

• A coordinated and multidisciplinary approach
• Capable to link up with and integrate into the
  other industrial, technological and regional
  policies.
• Avoid exclusively a sectoral and "top-down"
  approaches and adopt a multidisciplinary and
  "bottom-up" one.