From coal mining to mind mining

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From coal mining to mind mining towards a
knowledge driven economy in the Silesia
Voivodship

• Luk Palmen
• Project manager

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Knowledge, Innovation, Growth

• Globalisation and regionalisation
• Regional Innovation Systems
• Clusters and networks
• Innovation culture
• Creating a knowledge driven economy
• Securing access to global resources of
  knowledge, finance and distribution networks
• By embedding SMEs in regional innovation systems
  that are able to generate considerable new added
  value for regional economies in a European and
  global context

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Silesia Voivodship
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Main characteristics of the Silesia Voivodeship
Description Silesia Poland
Area (km2 ) 12,331 312,685
Population 31.XII.2002 r. 4.7 mln 38.2 mln
Population density (people/ km²) 384 122
Urban Development rate () 79.0 61.7
Demography amount of people in preproduction age in production age in post production age as a percentage of the total population 21.0 64.2 14.8 22.7 62.2 15.1
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Main characteristics of the Silesia Voivodeship
Description Silesia Poland
GDP per capita (PLN) 21,206.0 19,430.0
Amount of people employed 1.5 mln 12.5 mln
Structure of working population () agriculture, fishery industry and construction market services non-market services 4.8 38.7 39.0 17.5 17.3 28.5 33.5 20.7
Employment rate 41.9 43.7
Employment in the private sector () 63.3 71.3
Employment in SMEs () 50.7 67.1
Unemployment rate (registered) () 16.5 18.0
/ data for 2001 / situation on 31.XII.2002
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Main characteristics of the Silesia Voivodeship
Description Silesia Poland
Amount of economic units on 1.000 inhabitants (units) 88.3 90.7
Amount of companies with foreign capital on 10.000 inhabitants (unit) 8.2 12.3
Amount of SMEs on 10.000 inhabitants (unit) 853 872
Production sold on 1 inhabitant in PLN przemyslu budowlano-montazowa 18,190 1,704 13,374 1,750
Amount of units in RD sector 97 838
Employment in RD sector on 1,000 people employed 3,7 4,5
Expenditure on RD per 1 inhabitant (PLN), as relation GERD/GDP () 73 0,39 120 0,65
IPR, amount of New patent applications Patents registered and qualified 356 129 2313 834
/ data for 2001 / situation on 31.XII.2002
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Main characteristics of the Silesia Voivodeship
SME innovativeness in the Silesia Voivodeship SME innovativeness in the Silesia Voivodeship SME innovativeness in the Silesia Voivodeship
Very innovativecompanies Medium innovative companies Low innovative companies
Modern, open for innovation and active Innovative solutions are new on the domestic and international market Supra-local nature of sales structure (domestic and foreign markets dominate) High dynamics of changes in employment (rise) They have limited and less stable contacts with a small group of partners Lack of a determined development strategy Innovation is new only for the company itself, on the local and domestic market Medium dynamics of changes in employment (rise and fall) Focus on surviving Low interest in innovation Innovative solutions are new only to the company itself Local nature of sales structure (local sale markets dominate) Stagnation in employment
Approx. 10 SME Approx. 60 SME Approx. 30 SME
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Main characteristics of the Silesia Voivodeship

• Great share of SMEs in 10 sectors of industrial
  processing
• Production of chemicals, chemical articles, and
  synthetics,
• Production of machines and equipment
• Production of machines and electric apparatus
• Production of mechanic vehicles, trailers and
  semi-trailers
• Production of gum and plastic articles
• Production of non-metal goods
• Production of metal finished goods
• Production of food and beverages
• Textile industry
• Production of cast and steel and iron alloys

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Main characteristics of the Silesia Voivodeship

• Technologies of industrial automation and
  material engineering developed by the regional
  RD sector are successfully integratedin
  traditional industry.
• 3 Centres for Advanced Technologies and several
  centres of excellence are currently developing
  integrated research teams with strong links to
  industry in the fields of
• Biotechnology including bioengineering and health
  technologies.
• Technologies for energy sector including
  technologies of energy production from renewable
  sources, combustion and thermal recycling of
  waste as well as energy saving.
• Technology for environment protection including
  biogeochemical engineering and waste management.
• Information and telecommunication technology.
• Production and processing of materials including
  advanced materials.

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Main challenges in the Silesia Voivodeship
Strengths Weaknesses
High GDP per capita in comparison to the rest of Poland Large regional consumer market Large amount of foreign investments allocated in the region Diversified economy Large amount of supplier companies in Europes main industrial sectors Growing importance of service sector in creating added value in regional economy Large amount of RD institutes and human resources in the RD sector Large amount of business support organisations Technically high qualified workforce on the labour market Dense technical infrastructure (transport, telecommunication, etc) Low level of yearly GDP growth High amount of micro-companies generating only a small amount of added value in regional economy Most of small companies work on the local markets and are not prepared for international business activities Large amount of small companies that are dependent on large companies being restructured Low level of export activities in SMEs Low percentage of RD investments in relation to regional GDP Negative image of the region abroad

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Regional Innovation Strategy of the Silesia
Voivodeship 2003-2013

• Mission Imagination creates Reality
• Vision
• Regional Innovation Strategy will support
  development of a constructive climate for
  innovation in the Silesia Voivodeship in a way
  that creativity and synergy through co-operation
  in the process of elaborating, improving and
  implementing innovative solutions will contribute
  to a raiseof the regions innovative level
  strengthening the competitiveness of the regions
  economy in comparison to other regions in the
  European Union

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Regional Innovation Strategy of the Silesia
Voivodeship 2003-2013

• Strategic fields and aims
• Increasing the percentage of innovative SMEs
• Improving the business climate
• Supporting excellence in SMEs
• Accelerating and improving the use of the RD
  potential
• Supporting excellence in the RD sector
• Providing into the RD sector those technologies
  that are necessary to guarantee competitiveness
  of regional economy
• Developing a regional innovation system based on
  trust, creativity and excellence
• Developing partnerships for innovation
• Supporting development of new innovative products
  and companies

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Initiatives - Information

• Situation
• Shorter product and technology life cycles
• Information is key for decisions
• Challenge
• Regional economic intelligence systems
• Improved access to information tailored to needs
  of specific SME groups and even on individual
  level
• Key-initiative
• Regional Information System - Consortium of
  business support and RD institutions
• INNOBSERVATOR SILESIA

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Initiatives - Financing innovation

• Situation
• On average innovation activities for 70 financed
  with own resources
• SMEs face difficulties in financing innovation
  related activities purchase of new machines
  (production lines), certification, specialised
  services, use of specialised equipment and
  machines of RD institutions
• Challenge
• Measures under Structural Funds absorption
  capacity in SMEs
• Key-initiative
• Support in preparing project proposals under
  Structural Funds
• Regional and local loan funds
• Seed Capital and Start-up Fund
• Business Angels Network

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Initiatives - Advice and training

• Situation
• Lack of integrated quality training and advisory
  offer in the field of strategic management and
  knowledge management
• Lack of co-ordinated offer in the field of
  certified systems of quality, environment, labour
  safety management certificates of conformity
  for goods, materials, machines, control and
  measurement apparatus
• Challenge 
• Tailored advice and training offers of business
  support institutions to SME needs
• Monitor SME needs
• Key-initiative
• Silesia Consortium of Business Support
  Organisations
• Regional investment program in IT training
  online

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Initiatives - Industrial design

• Situation
• Ever-changing customer demands, customised
  products, identity, culture, experience
• Industrial design and product developments are
  indispensable components for developing
  innovative products and services by SMEs that try
  to specialise
• Challenge
• Regional networks focussing on integrated offers
  in the field of industrial design and product
  development
• Key-initiative
• Silesia Design Network

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Initiatives - Clusters and networks

• Situation
• Low social capital in CEEC prevents from enjoying
  full benefits of existing sectoral growth
  potentials
• First initiatives of clusters, but still
  bilateral contacts remain most important way of
  communication
• Challenge
• Clusters and networks to promote common activity
  in research, industrial design and product
  development, market research and human resources
  development
• Creation of sub-contractors networks, FDI
• Technology clusters as part of restructuring RD
  sector
• Key-initiative
• Pilot initiative on cluster development programme
• Network for Technology Commercialisation

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Initiatives - RD sector

• Situation
• RD activities went through diversification
  process since 1990, however still lack of
  marketing attitude in RD institutions
• Lack of integrated research and complex services
• Technology life cycle ever shorter, increased
  risk of technology success
• Challenge
• Integrated RD centres focussing on strategic
  economic issues gatheringscientists and
  companies around specific research subjects in
  clusters
• International networking
• Key-initiative
• 3 Centres of Advanced Technologies
• Centres of Excellence
• Technology Platforms

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CAT creating learning networks
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Initiatives - Intellectual Property Rights

• Situation
• Positive changes in legal framework, but still
  long procedures
• Many entrepreneurs and inventors resign from
  applying for trademark protection, patterns or
  inventions because of high costs connected to
  procedures
• IPR is seen as a cost not as an investment
• Challenge
• Streamline promotion, information and advisory
  activities in the area of intellectual property
  rights
• Patent Funds to speed up commercialisation of
  state-of-the-art technologies
• Key-initiative
• Developing a new model for IPR-management
• Technologies as a value creator Patent Fund

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Initiatives - Technology transfer

• Situation
• Technology transfer through co-operation among
  companies
• Technology transfer through mediation between
  economic and scientific environment (technology
  push and technology pull)
• Technology transfer through exchange of personnel
  between RD institutions and companies
• Challenge
• Networks of centres of innovation support and
  technology transfer
• Technology parks to facilitate specialised
  technology transfer to high-tech SMEs
• Key-initiative
• IRC KSI Regional TT network
• Network for Effective Technology Commercialisation

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Initiatives - Innovative start-ups

• Situation
• Establishing innovative start-ups based on
  research outcomes of RD sector is still not
  common in CEEC
• Academic grey market
• Lack of financial instruments (Seedcorn, Seed,
  start-up, early growth)
• Technologies often not registered and
  misperception between technological value from
  the part of the inventor and actual market value
• Challenge
• Integrated regional service offer for innovative
  start-ups
• Innovation culture in education and RD
  institutions
• Key-initiative
• Network for Technology Commercialisation
• Entrepreneurship promotion in institutions of
  higher education

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Seed Capital, Patent Fund, Business Angels
Incubators and Technology Parks
Regional government Local government
Technology based Start-ups
Students, scientists, undergraduates, employees
Special Economic Zone Industrial sites
Network for Effective Technology Commercialisation
Technology clusters
Large companies
Micro and SMEs
Centres of Advanced Technologies Centres of
Excellence Technology Platforms
Regional Technology Transfer Network
Innovative Business Clusters
Universities and RD Institutes
Regional Consortium of Business Support
Organisations
Entrepreneurship Promotion Programme at
Universities
Regional and Local Loan Funds
Silesia Design Network
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Conclusions

• Regional Innovation Strategy consensus
• Silesia Declaration on Developing a Creative
  Innovative Region culture
• Regional Innovation System value creation
• Knowledge Driven economy competitiveness
• Structural Funds 2004 2006 creating
  
• Structural Funds 2007 2013 implementing
• Networking people Giving innovation a face
• Enabling people to experience success

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Thank you for your attention

• Luk Palmen