Financing e-services in Europe: a regional perspective
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EU Structural Funds represent by far the main source of funding for innovation in general and for e-services in particular in the lagging regions of Europe classified into the “Convergence” ...

EU Structural Funds represent by far the main source of funding for innovation in general and for e-services in particular in the lagging regions of Europe classified into the “Convergence” objective. We explore for the first time the amount of resources dedicated to public e-Services and Information Society by elaborating European Commission data on programmed resources for the 2007-13 period. Our analysis highlighted a strong heterogeneity in the level of commitment towards e-services development both between and within countries. Such heterogeneity depends not only upon the total amount of resources available, which is connected to the degree of development of the various territories, but also upon different regional strategies.

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Financing e-services in Europe: a regional perspective Presentation Transcript

  • 1. Financing e-services in Europe: a regional perspective Luigi ReggiDepartment of Economics, Society and Politics, Urbino University and DG EU Regional Policy, Ministry of Economic Development, Italy Sergio ScicchitanoDepartment of Economics and Law, Sapienza University of Rome and DG EU Regional Policy, Ministry of Economic Development, Italy itAIS2011  Conference   Rome,  Italy  
  • 2. Agenda•  Relevant literature and research objectives•  EU Regional Policy and Information Society•  Empirical method•  Results•  Discussion and conclusions
  • 3. RELEVANT LITERATURE and RESEARCH OBJECTIVES Regional policies for innovation •  Growing regional percentage of public expenditure for Research and Innovation in most OECD countries, especially in those countries where regional governments have greater autonomy C3D/EA# @A6=.#BA931# >30719?# ;6<=9/1# 839710:# Source:  Authors’   2345/67# elabora=on  on   OECD  (2011),   -./01# Regional   Development   Policies  in  OECD   !"# $!"# %!"# &!"# !"# (!"# )!"# *!"# +!"# ,!"# $!!"# Countries  
  • 4. RELEVANT LITERATURE and RESEARCH OBJECTIVES Regional Innovation Systems •  The concept of RIS introduced since the early ’90s as an extension of the concept of National Innovation System (NIS) (Cooke, P. 1992, Cooke and Morgan 1998, Asheim and Isaksen, 1997) •  Three different types of RISs have been identified (Asheim and Gertler 2004). –  The territorially embedded regional innovation systems (TERIS), where firms operate without any strong interaction with knowledge organizations. –  The regionally networked innovation system (RNeIS), where firms and organizations are still implanted in a specific region and characterized by localized, interactive learning. –  The regionalized national innovation system (RNaIS) where the innovation activity takes place mostly in cooperation with actors outside the region at a both national and international level.
  • 5. RELEVANT LITERATURE and RESEARCH OBJECTIVES Research objective •  To explore the amount of public resources dedicated to ICT and e-services and the strategies that European public agencies are pursuing when allocating funding to local policy priorities
  • 6. REGIONAL POLICY Why Regional Policy? (1/2)•  Cohesion  policy:  aims  at  reducing  regional  dispari=es  •  Second  item  of  EU  budget:  347  billion  Euros  for   2007-­‐13  period  •  It  contributes  to  the  Digital  Agenda  of  EU2020  strategy  •  Common EU policy •  Multilevel governance –  all EU 27 Countries are Regional and/or National involved agencies are Managing –  full comparability: same rules Authorities of Operational and regulations Programmes
  • 7. REGIONAL POLICY Why Regional Policy? (2/2) “In  the  2007-­‐2013  planning  period  the  share  of  Structural  Funds  of  the   European  Union  allocated  to  Research  and  Innova.on  (the  “Lisbon   Agenda”)  received  the  largest  increase,  in  absolute  and  relaFve  terms.   It  is  no  exaggeraFon  to  claim  that,  for  many  countries,  the  en.re   Lisbon  Agenda  rests  on  Structural  Funds.”     (Bonaccorsi  A.,  2010,  Towards  beMer  use  of  condi=onality  in  policies  for  research  and  innova=on   under  Structural  Funds:  The  intelligent  policy  challenge,  working  paper  underlying  Barca  Report   “An  agenda  for  the  reformed  Cohesion  Policy.)    
  • 8. EMPIRICAL METHOD Data source •  Data source: official dataset on EU Structural Funds programmed resources for the period 2007-13 provided by the European Commission – DG Regional Policy •  It includes data on the amount of financial resources programmed by 434 Operational Programmes (OP)
  • 9. EMPIRICAL METHOD Programmed resources at NUTS2 level •  a matching with the Eurostat database of EU Regions (NUTS2 level) has been performed in order to estimate the programmed amount of resources at regional level. •  total amount of national and multiregional Programmes has been equally assigned to all regions directly involved in each Programme) Total regional resources = resources allocated by the regional Programmes + share of national or multiregional Programmes that have an impact on that specific region.
  • 10. EMPIRICAL METHOD Identifying resources dedicated to e-services and information society •  How to calculate the contribution of structural Funds to each priority/sector? •  COUNCIL REGULATION (EC) No 1083/2006 general: 86 categories of expenditure –  6 are dedicated to the information Society and 1 to the E-services
  • 11. RESULTS Financial resources for Information Society by category of expenditure                10   Telephone  infrastructures  (including  broadband  networks)   2,257,722,464   15%  11  +  12   Informa=on  and  communica=on  technologies  (including  TEN)   4,121,115,554   27%  13   Services  and  applica>ons  for  ci>zens  (e-­‐health,  e-­‐ 5,225,072,351   34%   government,  e-­‐learning,  e-­‐inclusion,  etc.)  14   Services  and  applica=ons  for  SMEs  (e-­‐commerce,  educa=on   2,144,358,160   14%   and  training,  networking,  etc.)  15   Other  measures  for  improving  access  to  and  efficient  use  of   1,537,162,147   10%   ICT  by  SMEs             15,285,430,676   100%  
  • 12. RESULTS Financial resources for Information Society by Member State Resources  allocated  by  Member  State  (in  %)  10.00  %   8.00  %   6.00  %   4.00  %   2.00  %   0.00  %   SK   GR   FI   KR   CK   EE   COOP   LT   PO   FR   EU  (Mean)   SL   IT   PT   HU   RM   ND   SE   UK   DE   BG   LV   BE   DK   IR   LU   AT   MA   ES   %  cat  13  over  tot  SF   %  IS  over  tot.  SF   Note.  Authors’  calcula=ons  on  EC  –  DG  Regio  data  
  • 13. RESULTS Financial resources for Information Society by Member State•  Significant variation in the amount of resources dedicated to e-services actions, especially if compared to the resources dedicated to other IS themes.•  For example: •  in Spain, Estonia, Malta or Slovak Republic e- services investment represents more than the half of IS total investment. •  Sweden, Denmark or Italy, seem to focus on other priorities classified into the remaining IS categories of expenditure (10, 11, 12, 14, 15).
  • 14. RESULTS Financial resources for public e-services at regional level: a cluster analysis Goodness  of  variance  fit  (GVF):  aims  at  minimizing  the   squared  devia=ons  of  the  class  means SSD  =sum  of  squared  difference  
  • 15. Financial  resources  for  public  e-­‐services     RESULTS Financial resources for Information Society at regional level
  • 16. RESULTS Financial resources for e-services at regional level•  In the 1st cluster: •  All the regions in Slovack Republic except Bratislavsky have planned high investments in e- services (more than 189 milion of euros) •  Campania (147,5 milion of euros), Andalucia (Spain) and Attiki (Greece)•  In the 2nd cluster: •  Sardinia in Italy, 3 Spanish, 7 Greek and 10 Polack Regions, Pas-de-Calais (France), Észak- Magyarország (Hungary)•  A number of COMP regions decided not to use structural funds to co-finance e-services development
  • 17. RESULTS Financial resources for Information Society at regional level: a cluster analysis Average amount of Cluster strong   resources (€) heterogeneity   Cluster 1 164,164,097 in  the  total   Cluster 2 73,442,227 amount  of   Cluster 3 50,298,301 resources   dedicated  to   Cluster 4 24,043,678 e-­‐services  by   Cluster 5 2,716,310 EU  regions    
  • 18. CONCLUSIONS Conclusions (1/2) •  Compared for the first time the financial resources dedicated to ICT and e-services at NUTS2 level •  Regional Policy funding represents a good proxy of the total amount of resources available to regional public policies, especially in the “convergence” objective
  • 19. CONCLUSIONS Conclusions (2/2) •  Strong heterogeneity in the level of commitment towards e-services development both between and within countries •  This is due to: –  huge variation in total amount of resources available (e.g. CONV vs. CRO objectives), connected to the degree of development of the territories –  different regional strategies: focused on e- services vs. focus on other priority themes
  • 20. DISCUSSION AND CONCLUSIONS Open questions •  Which strategies are followed by which kind of agency, Programme, territory, objective? •  How will these strategies evolve over time? •  What are the determinants of the allocation of resources to ICT / e-services? –  Regional context (size, innovation, ICT diffusion, etc.) –  Other economic variables (amount of funding, FEIs vs. grants..)
  • 21. Thank you! Luigi Reggi luigi.reggi@gmail.com www.luigireggi.eu