EU Cohesion Policy 2007-13 and public e-services development


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The presentation highlights the contribution of European Regional Policy to e-services development and diffusion across EU27. A principal component analysis is carried out in order to explore the different strategies adopted by European Regions in funding ICT and Information Society projects.

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EU Cohesion Policy 2007-13 and public e-services development

  1. 1. Technology Adoption and Innovation in Public Services(TAIPS) A project funded by Eiburs –European Investment Bank, University Research Sponsorship Programme Department of Economics and Quantitative Methods (DEQM), Università di URBINO p Q ( Q ), Dec 9 2010 EU Cohesion Policy 2007‐13 and  public e‐services development Luigi Reggi* and Sergio Scicchitano**University "La Sapienza", Department of Public Economics and Ministry for Economic Development, Department for theDevelopment and the Economic Cohesion.The views expressed in this article are those of the authors and, in particular, do not necessarily reflect those of the Ministry of EconomicDevelopment. 1
  2. 2. Outline• Regional policy and e‐services: institutional literature• The resources for e‐services and information  society• Empirical analysis: preliminary results – at national level – at regional level (cluster and factor analysis) at regional (cluster and factor 2
  3. 3. Cohesion Policy and ICT (1) Policy and ICT (1)COUNCIL DECISION of 6 October 2006 on Community strategic COUNCIL DECISION of 6 October 2006 on Comm nit strategic guidelines on cohesion:...“Guideline: Improving knowledge and innovation for growthThe guidelines for action are as follow:The guidelines for action are as follow:— Ensuring uptake of ICTs by firms and households and promoting  development through balanced support for the supply and demand of  ICT products and both public and private services, as well as through  ICT products and both public and private services as well as through increased investment in human capital…— Ensuring availability of ICT infrastructure and related services where  the market fails to provide it at an affordable cost and to an  the market fails to provide it at an affordable cost and to an adequate level to support the required services, especially in remote  and rural areas and in new Member States”. 3
  4. 4. Cohesion Policy and ICT (2) Policy and ICT (2)• “Th “Thus, resources are focused on all the regions coping with  f d ll th i i ith structural adjustment and on investment with a particular emphasis  on the cluster of activities around research, innovation, and the  information society”, p XV  EC (2007), Fourth report on economic and social cohesion• “Digital agenda: Member states should consider how to better use  the European Regional Development fund (ERDF ) to accelerate  achievement of the EU 2020 objectives for broadband access  including total coverage, making use of the different technologies  (fibre, adsl, wireless, satellite) available to suit the diverse  geographical needs and challenges of different regions across the  EU” EC (2010), Regional Policy contributing to smart growth in Europe  EC (2010) Regional Policy contributing to smart growth in Europe 2020, SEC(553)Final  4
  5. 5. Lisbon Strategy and Cohesion Policy“…Europe must renew the basis of its competitiveness, increase its growth potential and its productivityand strengthen social cohesion, placing the main emphasis on knowledge, innovation and the optimization of human capital To achieve these objectives, the Union must mobilize all appropriate national and Community resources – including the cohesion policy”.(European Spring Council 2005). “…In line with the re‐launch of the Lisbon strategy for Growth and Jobs, cohesion policy should focus on knowledge, research and innovation and human capital. Accordingly, the global financial effort in support of these fields of action should be significantly increased”.(E.C. 2005 Cohesion policy in support of growth and jobs. Community strategic guidelines, 2007‐2013 )“In the 2007‐2013 planning period the share of Structural Funds of the European Union allocated to Research and Innovation (the  Lisbon Agenda ) received the Union allocated to Research and Innovation (the “Lisbon Agenda”) received thelargest increase, in absolute and relative terms. It is no exaggeration to claim that, for many countries, the entire Lisbon Agenda rests on Structural Funds.”(Bonaccorsi A., 2010, Towards better use of conditionality in policies for research and innovation under (Bonaccorsi A 2010 Towards better use of conditionality in policies for research and innovation underStructural Funds: The intelligent policy challenge, working paper underlying Barca Report “An agenda for the reformed Cohesion Policy.)  5
  6. 6. Categories of expenditure• How to calculate the contribution of structural Funds  to each priority/sector?• COUNCIL REGULATION (EC) No 1083/2006 general:  86 categories of expenditure 86 categories of expenditure – Of which 6 are dedicated to the information Society • Of which 1 is dedicated to public E‐services Of which 1 is dedicated to public E services 6
  7. 7. 6 categories of expenditure for Information Society (IS)10. Broadband networks11. Information and communication technologies: access, g , security, interoperability, risk‐prevention, research, innovation, e‐content, etc.12.12 Information and communication technologies (TEN ICT) (TEN‐ICT)13. Services and applications for the citizen (e‐health, e‐ government, e‐learning, e‐inclusion, etc.) e learning, e inclusion,14. Services and applications for SMEs: e‐commerce, education and training, networking, etc.15. Other measures for improving access to and efficient use of ICT by SMEs 7
  8. 8. What do structural funds co‐finance?  European Regional Development fund (ERDF) European Regional Development fund (ERDF) Structural funds for e‐services are much more relevant in the  CONVERGENCE (CONV) RegionsREGULATION (EC) No 1080/2006 (ERDF)CONV “…information society, including development of electronic communications infrastructure, local content, services and applications, improvement of secure access to and development of on‐line public services; aid and services to SMEs to adopt and effectively use information and communication technologies (ICTs) or to exploit new ideas;” ideas;COMPETITIVE (COMP) “… “ promoting access to take up and efficient use of ICTs by SMEs by supporting access to networks the to, up, networks, establishment of public Internet access points, equipment, and the development of services and applications, including, in particular, the development of action plans for very small and craft enterprises.” 8
  9. 9. What do structural funds co‐finance?  EUROPEAN SOCIAL FUND (ESF) EUROPEAN SOCIAL FUND (ESF)ERDF exibitsERDF ibi a more important role compared to i l d the ESF in financing e‐servicesREGULATION (EC) No 1081/2006 (ESF) / “…the dissemination of information and communication technologies, e‐learning, eco‐friendly technologies and management skills, and the promotion of entrepreneurship and innovation and , p f p p business start‐ups”; 9
  10. 10. EU Cohesion policy: 2007‐13 EU Cohesion policy: 2007 13• 27 Member states• Almost 344 billion Euros: – 281 CONV, 56  COMP, 7 COOP – 278 ERDF 76 ESF 278 ERDF, 76 ESF – Almost 28 to ITALY • 21 CONV 6 2 COMP 0 8 COOP 21 CONV,  6.2 COMP,  0.8 COOP • 21 FESR, 7 SFE• M More than 15 billi E th 15 billion Euros t I f to Information Society ti S i t• More than 5 billion Euros to e‐Services 10
  11. 11. EU Cohesion policy 2007‐13: p yCategories of expenditure dedicated to Information  society  society10 Telephone infrastructures (including broadband networks) 2,257,722,464 15%11 + 12 Information and communication technologies (including TEN) Information and communication T N) 4, 4,121,115,554 , 5,554 27% 7%13 Services and applications for citizens (e‐health, e‐ 5,225,072,351 34% government, e‐learning, e‐inclusion, etc.)14 Services and applications for SMEs (e‐commerce, education  pp ( 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% 11
  12. 12. Member States:the national level 12
  13. 13. Resources allocated by Member State: absolute values (MEuro) 3,7141,800 1,6211,6001,4001,200 ,1,000 800 600 400 200 0 Note. Authors’ calculations on EC – DG Regio data Cat.13 (a.v) Cat 13 (a v) Tot IS (a.v.) Tot IS (a v ) 13
  14. 14. Resources allocated by Member State: % values10.00 % 8.00 % 6.00 % 4.00 % 2.00 % 0.00 % SK MA KR RM DK EE FR COOP IT BG AT HU FI SL LU GR CK ES PO EU (Mean) ND UK LV IR LT PT SE DE BE % cat 13 over tot SF % IS over tot. SF Note. Authors’ calculations on EC – DG Regio data 14
  15. 15. Correlation between Inf. soc. and E‐services: abs. values Correlation between Inf soc and E‐services: abs values 4,000,000,000 PO 3,500,000,000 3,000,000,000 R² = 0.800 2,500,000,000 t. Inf. soc. 2,000,000,000 IT GRTot 1,500,000,000 ES 1,000,000,000 FR SK CK DE HU 500,000,000 RM 0 0 200,000,000 400,000,000 600,000,000 800,000,000 1,000,000,000 Cat. 13 E‐services  Total Structural Funds Note. Authors’ calculations on EC – DG Regio data 15
  16. 16. RESOURCES ALLOCATED BY FUND (ERDF and ESF) AND OBJECTIVE  (CONV, COMP, COOP) Resources allocated by Fund (Meuro) Resources allocated by Objective (Meuro)7,000 2.00 % 2.00 % 1.91 % 12,000 1.80 %6,000 12,419 15,158 15 158 1.50 % 1 50 % 10,000 1.56 % 1 56 % 1.60 % 1 60 %5,0004,000 8,000 1.26 % 1.20 % 1.00 %3,000 6,000 5,135 5 135 0.80 % 0 80 %2,000 0.50 % 4,000 0.12 % 4,3881,000 696 141 0.40 % 128 2,000 90 2,312 554 0 0.00 % 0 0.00 % 0 00 % ERDF ESF CONV COMP COOP I.S.  CAT 13 CAT 13 / S.F. I.S.  CAT 13 CAT 13 / S.F. Note. Authors’ calculations on EC – DG Regio data g Note. Authors’ calculations on EC – DG Regio data g 16
  17. 17. Structural Funds regional allocation across EU27 Cluster analysis Cluster analysis 17
  18. 18. CLUSTER ANALYSIS ON ALL EUROPEAN REGIONS: TOTAL INFORMATION SOCIETY (CAT. 10‐15)  Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5ITF3 Italia GR11 CZ02 CZ01 Rep. Cec AT11 DEF0 Germania MT00 Malta GreciaPL12 GR30 CZ03 DEG0 Germania AT12 DK01 NL11 PoloniaPL22 ITF4 CZ04 EE00 Estonia AT21 DK02 NL12 ItaliaSK02 ITG1 CZ05 Rep. Cec ES12 AT22 Austria DK03 Danimarca NL13SK03 Rep. Slovac LT00 Lituania CZ06 ES30 AT31 DK04 NL21SK04 LV00 Lettonia CZ07 ES41 AT33 DK05 NL22 PL11 CZ08 ES42 Spagna AT34 ES13 NL23 Olanda PL21 ES11 ES43 BE10 ES21 NL31 PL31 ES52 ES62 BE21 ES22 NL32 Spagna PL32 ES61 ES63 BE22 ES23 Spagna NL33 PL33 ES70 ES64 BE23 ES24 NL34 Polonia PL34 GR14 FI13 BE24 ES51 NL41 Finlandia PL41 GR21 FI19 BE25 Belgio ES53 NL42 PL51 GR22 FR30 BE31 FI18 PT15 PL61 GR23 Grecia FR61 BE32 FI1A Finlandia PT17 Francia Portogallo PL62 GR25 FR71 BE33 FI20 PT20 PT11 GR41 FR91 BE34 FR10 PT30 Portogallo PT16 GR43 GR12 BE35 FR21 SE12 Grecia HU21 GR13 BG31 FR22 SE21 HU22 HU10 Ungheria BG32 FR23 SE22 Svezia HU23 ITF5 Italia BG33 FR24 SE32 Ungheria Bulgaria HU31 RO11 BG34 FR25 SE33 HU32 RO12 BG41 FR26 UKC1 HU33 RO21 BG42 FR41 UKC2 ITF6 RO22 CY00 Cipro FR42 UKD1 Italia Romania ITG2 RO31 DE21 FR43 UKD2 PL42 RO32 DE22 FR51 UKD3 Francia PL43 RO41 DE23 FR52 UKD4 Polonia PL52 RO42 DE24 FR53 UKD5 PL63 SE31 Svezia DE25 FR62 UKE1 PT18 Portogallo SI01 DE26 FR63 UKE2 Slovenia SI02 DE27 FR72 UKE3 SK01 Rep.Slov. DE30 FR81 UKE4 UKK3 DE41 FR82 UKF1 Gran Bret. UKL1 DE42 FR83 UKF2 DE50 FR92 UKF3 DE60 FR93 UKG1 DE71 FR94 UKG2 DE72 GR24 UKG3 Grecia DE73 GR42 UKH1 Gran Bret. DE80 IE01 UKH2 Irlanda DE91 Germania IE02 UKH3 DE92 ITC1 UKI1 DE93 ITC2 UKI2 DE94 ITC3 UKJ1 DEA1 ITC4 UKJ2 DEA2 ITD1 UKJ3 DEA3 ITD2 UKJ4 DEA4 ITD3 UKK1 DEA5 ITD4 Italia UKK2 DEB1 ITD5 UKK4 DEB2 ITE1 UKL2 DEB3 ITE2 UKM2 DEC0 ITE3 UKM3 DED1 ITE4 UKM5 DED2 ITF1 UKM6 18 DED3 ITF2 UKN0 DEE0 LU00 Lussemb.
  20. 20. Information society (cat. 10‐15): first evidence from cluster analysis• Campania shows the largest amount of  Investments in Information Society (almost 535  Investments in Information Society (almost 535 milions of euros)• In the cluster 1: Západné Slovensko Stredné In the cluster 1: Západné Slovensko, Stredné Slovensko e Východné Slovensko (Slovack Republick – 367 milions of  euros each),  p Mazowieckie (341) e Slaskie (337) in Poland. • Cluster 2: Puglia (305), Sicily (258), Attiki and  Anatoliki Makedonia (Greece), Latvia, Lithuania,  Centro and Norte (Portugal), 10 Regions in  Poland.  Poland 20
  21. 21. CLUSTER ANALYSIS ON ALL EUROPEAN REGIONS: CAT. 13 “E‐SERVICES”  Cluster 1 Cluster 2 Cluster 3 Cluster 4 Cluster 5ES61 Spagna S ES12 CY00 Cipro Ci CZ01 BE33 Belgio B l i FR41 PT30 Portogallo P t llGR30 Grecia ES43 Spagna DE93 CZ02 BG31 FR42 SE21 GermaniaITF3 Italia ES62 DEG0 CZ03 BG32 FR43 SE22 SveziaSK02 FR30 Francia ES24 CZ04 BG33 FR51 SE31 Rep. Ceca BulgariaSK03 Rep. Slov. GR12 ES30 CZ05 BG34 FR52 SE32SK04 GR13 ES41 CZ06 BG41 FR53 UKC1 GR22 ES42 Spagna CZ07 BG42 FR62 UKC2 GR23 Grecia ES63 CZ08 DE21 FR63 UKD1 GR25 ES64 EE00 Estonia DE22 FR71 Francia UKD2 GR41 FR61 Francia ES11 DE23 FR72 UKD3 GR43 GR24 Grecia ES52 Spagna DE24 FR81 UKD4 HU31 Ungheria HU10 ES70 DE25 FR82 UKD5 ITG2 Italia HU21 GR11 DE26 FR91 UKE1 PL11 HU22 GR14 Grecia DE27 FR92 UKE2 Ungheria PL31 HU23 GR21 DE41 FR93 UKE3 PL33 HU32 LT00 Lituania DE42 Germania FR94 UKE4 PL34 HU33 PL12 DE50 GR42 Grecia UKF1 PL42 ITF4 PL21 DE60 ITC1 UKF2 Polonia PL43 ITF6 Italia PL22 DE91 ITC2 UKF3 Polonia PL52 ITG1 PL32 DE92 ITC3 UKG1 PL61 MT00 Malta PL41 DE94 ITD2 UKG2 Italia PL62 RO11 PL51 DEC0 ITE4 UKG3 PL63 RO12 PT11 DEE0 ITF1 UKH1 Gran Bret. RO21 PT16 Portogallo DEF0 ITF2 UKH2 RO22 PT18 ES13 ITF5 UKH3 Romania R i RO31 ES21 LV00 Lettonia UKI1 RO32 ES22 NL11 UKI2 Spagna RO41 ES23 NL12 UKJ1 RO42 ES51 NL13 UKJ2 SI01 ES53 NL21 UKJ3 Slovenia SI02 FI13 NL22 UKJ4 UKL1 Gran Bret. FI18 NL23 UKK1 Olanda FI19 Finlandia NL31 UKK2 FI1A NL32 UKK3 FI20 NL33 UKK4 FR10 NL34 UKL2 FR21 NL41 UKM2 FR22 NL42 UKM3 FR23 Francia PT15 UKM5 FR24 PT17 Portogallo UKM6 FR25 PT20 UKN0 21 FR26
  23. 23. E‐services: first evidenceE services: first evidence from cluster analysis cluster analysis• All the regions in Slovack Republic except  ll h i i Sl k bli Bratislavsky have planned high investments in e‐ services (more than 189 milion of euros) i ( th 189 ili f )• Campania (147,5 milion of euros), Andalucia (Spain)  and Attiki (Greece) also belong to the first cluster• 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 23
  24. 24. Resources for e‐services and information  society i an exploratory factor analysis p y y• What is the “allocation strategy” of EU  Regions?  • What is the relationship between the  resources for e services and the rest of the  resources for e‐services and the rest of the money allocated to “Information Society”?• Is there any difference between CONV and Is there any difference between CONV and  COMP Regions? 24
  25. 25. Principal component analysis: all regionsVariable cat. n. average min maxp_broadband (%) 10 263 14.134 0.000 100.000 Descriptivep_ICT (%) 11+12 263 27.831 0.000 100.000 statisticsp_e-services (%) 13 263 23.763 0.000 100.000p_SME1 (%) 14 263 19.218 0.000 100.000p_SME2 (%) 15 263 15.055 0.000 100.000Correlation matrix p_broadbVariable p_ICT p_e-gov p_SME1 p_SME2 andp_broadband 1.00 Correlation matrixp_ICT -0.37 1.00p_e-servicesp e ser ices -0.16 0 16 -0.30 0 30 1.00 1 00p_SME1 -0.17 -0.32 -0.30 1.00p_SME2 -0.22 -0.33 -0.28 0.02 1.00N. Eigenvalues g % Cum %1 1.5061 30.12 30.122 1.3866 27.73 57.85 Eigenvalues table3 1.1330 22.66 80.514 0.9744 19.49 100.005 0.0000 0 0000 0.00 100.00 0 00 100 00 distanceVar n dim1 dim2 from origin Coordinates ofObjective illustrative variables:C3= CONVERGENCE 99 0.28386 0.28 0.41C3= COMPETITIVENESS 164 0.10344 -0.17 -0.25 CONV & COMP 25
  26. 26. ALL REGIONS (CONV AND COMP) e‐services 26
  27. 27. ALL REGIONS (CONV AND COMP)Convergence obj.Competitiveness obj obj. e‐services CONV Regions COMP Regions 27
  28. 28. Principal component analysis: CONV regions Variable cat. n. average min max p_broadband (%) 10 263 15.049 0.000 100.000 Descriptive i i p_ICT (%) 11+12 263 25.452 0.000 100.000 statistics p_e-services (%) 13 263 33.058 0.000 100.000 p_SME1 (%) 14 263 16.466 0.000 100.000 p_SME2 (%) 15 263 9.975 0.000 100.000 Correlation matrix p_broadb Variable p_ICT p_e-gov p_SME1 p_SME2 and p_broadband 1.00 Correlation matrix p_ICT -0.43 1.00 p_e-services -0.23 -0.44 1.00 p_SME1 -0.03 -0.41 -0.32 1.00 p_SME2 -0.02 -0.44 -0.02 0.29 1.00 N. Eigenvalues % Cum % 1 1.8448 36.90 36.90 2 1.3606 27.21 64.11 Eigenvalues table 3 1.1293 1 1293 22.59 86.70 22 59 86 70 4 0.6652 13.30 100.00 5 0.0000 0.00 100.00 28
  29. 29. ONLY CONV. REGIONS Facteur 2 3.0 p e‐services p_e-gov e go i 1.5 0 p_SME2 p_broadband p_ICT p ICT p_SME1 -1.5 Example: Sicily has programmed a single  action for both e‐business and  -3.0 -1.5 0 broadband  1.5 Facteur 1 29
  30. 30. Factor analysis: preliminary evidence analysis: preliminary• Low correlation between e‐services and the other  categories of expenditure => Regions investing in  e‐services made a “clear choice”• CONV Regions tend to choose the “e‐services CONV Regions tend to choose the  e services  strategy” more frequently than COMP regions• I CONV R i In CONV Regions – where structural funds are the  h t t lf d th main source of funding for information society – the measures aimed at promoting e‐business are  h i d i b i often accompanied by the development of  broadband networks (see Sicily strategy) 30
  31. 31. Conclusion (1)1. Stylized f li d fatcs: European Cohesion Policy 2007‐ h i li 13 is a really ( in many cases, probably the  most) important source for financing e‐services in the CONV Regions. 2. Cluster analysis: As to the allocated resources of Structural funds for e‐services: a) Significant heterogeneity across Member States b) Significant heterogeneity within Member States and across European Regions 31
  32. 32. Conclusion (2)3. Factor analysis:  a) Allocated resources for e‐services stands alone:  ) an “e‐services strategy” could be identified. b) CONV Regions are more likely to adopt such a “e‐ CONV Regions are more likely a  e services strategy”. 32
  33. 33. Further research• What does determine the allocation of resources? • Which regional characteristics influence funding allocation? allocation? • Is there a significant difference between national and regional level among Member State 33