European Regional Innovation

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Regional Innovation Strategies North East
Bulgaria Launch Conference Varna, Bulgaria, 7
October 2005
European Regional Innovation Policy and
Instruments
Marshall Hsia DG Enterprise and Industry European
Commission
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Globalisation and challenges for European Regions

• Increasing globalisation of economic activity is
  affecting the competitiveness of Europe and its
  regions.
• Investment considerations are increasingly
  influenced by availability of local and regional
  production factors e.g. transport and market
  access, availability of technical and human
  resources, quality of life issues.
• Regional policies need to take into account the
  processes which determine investment decisions
  and their impact on regional competitiveness and
  the business infrastructure (including regional
  innovation systems and clusters of economic
  activity).

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A New Strategic Goal for the Next Decade
The European Council of LISBON in March 2000 set
the goal for the EU to become the most
competitive and dynamic knowledge-based economy
in the world capable of sustainable economic
growth with more and better jobs and greater
social cohesion." Afterwards the BARCELONA
Council in March 2002 confirmed the importance
of increased investment in RD, setting ambitious
average EU target of 3 of GDP by 2010 with 2/3
coming from private sector
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International Competition

• Europe is behind the US in productivity growth
  (GDP per capita gap of 34)
• Lisbon objectives will not be achieved with the
  current speed of change
• Europe lags behind the US in 9 out of 12
  innovation indicators, e.g.
• Lower RD investment rates
• Less venture capital
• More US patent applications in Europe than from
  Europeans
• Disparities in economic development among
  European regions

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more than half of total EU RD expenditure is
concentrated in 28 out of 211 regions (EU15)
EU average RD Expenditure (2000) 1.93 of
GDP
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Innovating Regions in Europe (IRE) Network

• 200 member regions (started in 1996). Facilitates
  the exchange of experience and good practice in
  the field of regional innovation.
• Main actions
• implementation of Regional Innovation Strategies
  in New Member and Associated States
• pilot projects on regional innovation policy
  impact assessment and benchmarking
• projects to support the implementation of
  Regional Innovation Policies in New Member States
  and Associated States
• incorporates the Mutual Learning Platform for
  investing in research and innovation in the
  regions

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Innovating Regions in Europe (IRE) Network
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Innovating Regions in Europemembers
1995 5 countries 16 regions 2003 26
countries 200 regions 2005 32 countries 235
regions
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RIS Project Methodology

• Work under a steering committee composed of key
  regional actors
• Produce detailed analysis of needs and regional
  innovation system
• Agree on an innovation strategy for the regional
  development
• Adopt an action plan for the implementation of
  the strategy
• Develop a monitoring plan to assess
  implementation
• Establish the basis for co-operation with other
  regions in Europe

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RIS/RITTS methodology

• The project lasts 32 months.- Stage 0
  definition phase (approximately
  12 months)- Stage 1 analysis of innovation
  supply and demand
• (12 months)- Stage 2
  establishing regional priorities
  validation of stage 1 results
  implement some pilot actions (8
  months)

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RIS NÖ a step by step approach
RIS NÖ Regional Innovation Strategy
Niederösterreich
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Actions previously identified

• Actions promoting business networks, clusters
• building new interfaces between businesses and
  the knowledge base, including technology centres,
  universities
• improving the co-ordination of RTD and Innovation
  services and agencies for firms
• developing new financial instruments for the
  financing of innovation
• offering market intelligence for forecasting SME
  technology needs
• enhancing innovation projects in firms, in
  cooperation with universities, technology
  centres
• organising technology audits in SMEs and
  innovation management training for businessmen
• pushing university spin-offs and technology based
  start-ups

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Regional Innovation Strategy

• A starting point to develop an innovation policy
  at regional level or to reinforce the existing
  regional innovation system. Many regions
  developed these policies the first time ever.
• A move towards strategic thinking to steer
  regional development towards an
  innovation-oriented policy
• A regional dialogue to overcome geographic,
  cultural or institutional fragmentation and
  mobilise all innovation actors through a
  consultation process
• An innovation community to foster innovation as a
  driving force for regional competitiveness
• A clearer innovation support infrastructure to
  rationalise and adapt it to existing business
  needs

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Impact

• Regional actions have helped the decision
  makers at the regional level to be aware of the
  importance of innovation in the economic growth
  process
• The mobilisation effect achieved has been
  remarkable
• It brought in a much needed move towards for
  strategic thinking innovation- oriented regional
  development.
• RIS have helped widen the concept of innovation
  strengthened position within the regional policy
  agenda
• Have focused regional public expenditure towards
  a set of communities. Most regions have managed
  to increase public funding
• Allowed optimisation of the RTDI infrastructure

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RIS and RIS in West Midland

• Two notable achievements in the West Midlands
• WM Investment Fund
• Objective- establish funding mechanism to
  stimulate the creation of innovative ,
  technology- based high growth potential SMEs.
• Results - 8 deals completed, 4.9m invested 30
  jobs forecast
• MONTAGNE (Technology Audits, Grants and
  Exploration)
• Objective- Innovation and technology
  identification through technology/innovation
  audits and access to finance
• Results - 300 jobs created, 726 SMEs assisted,
  30 R and D projects supported, 50 products
  developed, 400 networking contacts

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Specific Networking Instruments

• Actions to foster clusters (EAP, FP6 networking
  sectoral clusters, IRC and IRE working groups)
• Innovation Relay Centres
• IPR Helpdesk (IP assistance for FP6 participants
  and SMEs)
• Gate2Growth (access to finance and networking)
• Regional innovation actions (PAXIS, IRE, RIS,
  Europe Innova)

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Technology transfer, IP and financial assistance

• IRC Network
• A trans-national technology transfer network,
  which drives innovation and competitiveness, by
  connecting knowledge, technologies and people and
  by building Technology Partnerships.
• Allowing SMEs access to RTD results
• Promoting innovative SME technologies (outward
  TT)
• Identifying innovative solutions for SMEs (inward
  TT)
• Promotion of trans-national technology
  co-operation

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IRC Network 2004 - 2008
71 IRCs and 219 organisations in 33 countries
EU, Iceland, Norway, Switzerland, Israel,
Bulgaria, Romania, Turkey, Chile
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Technology transfer, IP and financial assistance

• IPR Helpdesk
• Provide initial IP assistance to current and
  potential EU-RTD contractors
• Raise awareness of the importance of protecting
  and exploiting Europe's IPR assets
• Assist European researchers registering,
  protecting and exploiting their IPR
• Gate2Growth
• Provides access to private innovation financing
  and tools for better knowledge exploitation
• Encourages networking between venture
  capitalists, incubators, industrial liaison
  offices, etc

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CIP and the renewed Lisbon strategy

• A more attractive place to invest and work
• Knowledge and innovation are at the heart of
• European growth
• Allowing our businesses to create more and
• better jobs

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Policy context

• Re-launch of the Lisbon strategy of 2000 new
  strategy for jobs and growth
• Need for better co-ordination and synergies
  between policies and funding programmes
• Innovation and competitiveness policies to face
  global challenges

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CIP Structure
LEGAL ACT (Arts. 157(3), 175(1), 156)
Common Objectives Overall budget Instruments
Tech. Assistance
Entrepreneurship Innovation EIP committee
2.600 million
ICT Policy ICT committee 800 million
Intelligent Energy Europe IEE committee 780
million
Eco-innovation 520 million IEE
SMEs 3.385 million
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The Entrepreneurship Innovation programme
Entrepreneurship
Innovation
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Eco-Innovation in the EI Programme

• 520 million earmarked eco-innovation
• Access to finance (150 million for
  eco-innovation)
• Support to Venture Capital funds active in
  eco-innovation, and capacity building for the
  assessment of eco-innovation projects
• Examples of targeted sectors water management,
  waste treatment and recycling, soils remediation,
  energy (renewables, efficiency), clean production
  processes
• Innovation in enterprises (324 million for
  eco-innovation)
• Networks of enterprises, of national and regional
  programmes
• Pilot and market replication projects, in sectors
  such as water supply and sanitation, waste
  treatment and recycling, clean technologies,
  eco-design of products and services
• Innovation culture (46 million for
  eco-innovation)
• Business and innovation services and networks
• Example of eco-innovation related services
  technology testing and verification, centres of
  excellence, eco-design of products and services,
  environmental management systems

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CIP synergies with Structural Funds

• CIP and SF share a number of priorities linked
  to the Lisbon strategy
• - CIP aims at stimulating entrepreneurial
  initiative, innovation and technology transfer
• The SF main objective is to help lagging regions
  to catch up with innovation as a key priority
• but have different approaches
• - CIP mainly multi-lateral Commission driven
  for excellence
• ERDF mainly territorial (less than 4 for
  trans-nat. inter-reg. activities)
  decentralised to MS aiming at cohesion
• CIP and SF are complementary and mutually
  reinforcing
• - Synergies will be reinforced through close
  coordination, information of the MS and checks
  during implementation
• - Double funding will be excluded, however,
  complementary funding will be possible (e.g. in
  the area of venture capital funds and cooperation
  among business innovation programmes)

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The Entrepreneurship Innovation programme
FP7-RTD
CIP
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What innovation actions will continue under CIP ?

• in an improved form
• Innovation Relay Centres networks assistance
  for transnational technology transfer will be
  developed together with the EuroInfoCentres to
  offer a one-stop-shop for services in support of
  business and innovation.
• Trend Chart / European Innovation Scoreboard
  with constant adaptations of the indicator system
  and the policy monitoring
• Studies / analytical support, although in a more
  systematic form

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What will be different under CIP ?

• IRE Network of Innovating Regions in Europe
  Regions will be together with national innovation
  policy-makers for overarching networking for
  policy learning
• Innovation Portal the dissemination of the
  results of the project results and information
  will be improved and moved from Cordis into the
  mainstream of the Europa-server
• Eco-innovation intelligent energy
• - Placed clearly in the innovation and
  competitiveness context
• - Market replication projects and use of
  networking type of projects.
• - Use of financial instruments for
  eco-innovation

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What will be new under CIP and FP7?

• under CIP
• New risk capital instrument (the High Growth and
  Innovative Company Facility - GIF2) - non
  grant-based approach, aimed specifically at
  innovative and high growth SMEs. A significant
  proportion of resources will be dedicated to
  supporting SMEs developing or using environmental
  technologies.
• Scheme to support the co-operation between
  national and regional programmes for business
  innovation (BISS) will increase the opportunities
  for SMEs to benefit from creativity, know-how and
  market opportunities in other EU Member States
• under FP7
• JETIs (Joint European Technology Initiatives)
  under article 169 EC Treaty