Developing Regional Innovation Ecosystems through RIS3, Horizon 2020 and European Partnerships - Markku Markkula


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Slides from Markku Markkula presenting how to develop regional innovation ecosystems through RIS3, Horizon 2020 and European partnerships. Those slides are part of the conference "Position and strategies of the universities in the new European scenario of R&D and innovation: Horizon 2020, KICs and RIS3" held at Universitat Politècnica de València last December 18th 2013 as part of the VLC/CAMPUS activities

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  • Regions need new arenas as hotspots for innovation co-creation. These could be described as "innovation gardens" and "challenge platforms", which together form a prototype workspace for inventing the future. These are needed to address challenges - from small local challenges to major societal challenges at global level.
  • Developing Regional Innovation Ecosystems through RIS3, Horizon 2020 and European Partnerships - Markku Markkula

    1. 1. Markku Markkula • EU Committee of the Regions CoR, Rapporteur on H2020 • Aalto University, Advisor to the Aalto Presidents • Helsinki Region, Chair of the Steering Board for Using Structural Funds Developing Regional Innovation Ecosystems through RIS3, Horizon 2020 and European Partnerships My starting point for the presentation is the new programme period landscape painted by the following new drivers of change and new critical success factors: 1. Focus on impact, especially societal impact 2. More innovations out of research 3. User-driven development: citizens and communities of practice 4. Regional innovation strategies based on Smart Specialisation RIS3 5. From traditional clusters and triple helix to regional innovation ecosystems 6. More multi-disciplinary and breaking the boarders 7. Mindset/mentality is the most crucial success factor 8. Use of cohesion funds on innovation and capacity building 9. Synergy in using Horizon 2020 and Cohesion funds 10. Multi-financing
    2. 2. Smart Cities & Smart Regions Are Needed to Speed up and Scale up EU2020 Implementation – Key Elements Are More Societal Innovations Digitalized Real Life Test-beds Regional Innovation Ecosystems Pioneering EU2020 Open Innovation & Smart Specialization Urban Design Solutions Scientific Excellence & Industrial Leadership Markku Markkula, Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland
    3. 3. Horizon and Cohesion Funds Go Hand-in-Hand In addition to Scientific Excellence, H2020 will focus on industrial leadership and societal challenges, maximizing the competitiveness impact of R&I, as well as raising and spreading levels of excellence. Besides improving the innovation ecosystems, Cohesion policy will partly increase the capacity of regions to participate in H2020 and partly fund R&D&I activities in a region that can build on H2020. Both should have a strong base on European Partnerships RIS3 new opportunities are open for our use.
    4. 4. Guidelines for Combined Funding Within a programme, a project or a group of projects, the use of different EU funding sources with many types of local funding is encouraged. RIS3 seeks to exploit complementarities and synergies, however avoiding overlaps and excluding double-financing. Examples: • Joint use of H2020 and ESIF funds to cover different cost items in a single project. • Separate (not legally linked) projects financed through H2020 and ESIF and orchestrated to have synergic collaboration and stronger impact. • ESIF funding is not legally linked to H2020 project, but a regional authority decides to fund beneficiaries to enhance the H2020 project in the region. • ESIF to be used (with very little administration) to finance a project proposal which had a positive evaluation under H2020, but could not be funded due to a lack of H2020 funds under the call. Regions to apply these and other policy guidelines in their use and in partnering  RIS3 process on a continuous basis. RIS3 new opportunities are open for our use.
    5. 5. “Smart Specialization Strategies for Research and Innovation. Different regions different approaches” • Our CoR experiences coming from many regions give a strong support on the following Smart Specialisation Platform statements: “RIS3 is an economic transformation agenda. RIS3 is a dynamic and evolutionary process (not a structure) deeply grounded in an entrepreneurial discovery process (not a one-off action) where governments are rather facilitators than in a position of command and control. RIS3 is for innovation leaders and for those lagging behind.” • The smart specialisation approach is not just about a more focused and limited approach to cluster funding. RIS3 is a structural reform to upgrade the entire business environment and innovation ecosystem in the region. • Smart specialization is opening up important opportunities for joining forces, matching roadmaps and building more world-class clusters. • Regions can now spend up to 15% of their funds outside their programme area, if it is to the benefit of their territory. RIS3 new opportunities are open for our use.
    6. 6. Manuel Palazuelos Martinez, Platforma S3 , IPTS (DG JRC), Comisión Europea, Sevilla 17.12.2013
    7. 7. Manuel Palazuelos Martinez, Platforma S3 , IPTS (DG JRC), Comisión Europea, Sevilla 17.12.2013 From RIS to RIS3 Building on the past • Widespread experience of national/regional innovation strategies in the framework of the EU Cohesion Policy • Achieved greater co-operation among private and public stakeholders and better communication between technology providers and clients Breaking with the past (weaknesses in the period 2007-2013) • Not in tune with the industrial and economic fabric of regions • Too narrow vision of 'technological' innovation • The best performing regions were just copied or resources spread across 'all sectors' • Lack of international and trans-regional perspective
    8. 8. Smart Specialisation Strategies as Iterative, Tailor-made Policy Processes The S3 design process can be described through “six steps”, each of which relates to the process rather than a theory or even any specific policy objective: Step 1: Analyse the regional context and potential for innovation; Step 2: Ensure participation and ownership; Step 3: Elaborate an overall vision for the future of the region; Step 4: Identify priorities; Step 5: Define a coherent policy mix and action plan; Step 6: Integrate monitoring and evaluation mechanisms. Markku Markkula CoR Innovation Union keynote on 27 Nov 2013, based on “The role of clusters in smart specialisation strategies”, DG Research and Innovation RIS3 new opportunities are open for our use.
    9. 9. Why Regional Innovation Ecosystems? Critical Aspects of Innovation and Value Creation 1. Professor C.K. Prahalad gave a clear message also to universities by defining three critical aspects of innovation and value creation (Source Open Innovation Yearbook 2012, DG INSFO): 1) Value will increasingly be co-created with customers. 2) No single firm has the knowledge, skills, and resources it needs to co-create value with customers. 3) The emerging markets can be a source of innovation. The competitive arena is shifting from a product-centric paradigm of value creation to a personalized experience-centric view of value creation. 2. Professor Erkki Ormala in his presentation EU Regions and Horizon 2020 (Source ManETEI final conference 4 December 2013 at Aalto): “From traditional large enterprise to extended enterprise (in which the role of partners is much larger) with orchestration capability”. We need to react on the changing innovation landscape. Universities need to learn from business life to modernize their operations. Markku Markkula, Chair CoR-EPP Task Force on Europe 2020, Aalto University, Finland
    10. 10. We need to react on the changing innovation landscape. Orchestration is the key for success. Erkki Ormala, Professor Aalto University, Former Vice-President, Business Environment, Nokia
    11. 11. Universities should analyse the ecosystems through several layers: Interacting Learning & Research & Innovation Activities Three Steps to Understand the System: Identify Societal / Market Needs & define system requirements & barriers Integrate Fundamental Research & Innovation Knowledge into Enabling Technologies Develop Useful Insights from Fundamental Knowledge We need to react on the changing innovation landscape. Professor Sir Mike Gregory, 13 Feb 2013 (E O’Sullivan: Adapted from NSF ERC Strategy Framework)
    12. 12. Transformation: the 3 Types of Innovation (In the past: the focus on innovations has been on business and technology. Now: also the cultural aspects are the drivers of change) Business Model Levers Value Value Proposition Chain Technology Levers Target Customer Product Process and Service Technology Enabling Technology Cultural Levers Regional Innovation Ecosystem Incremental innovations Space (Ba & Flow) Semi-radical innovations Design New Governance Culture Radical innovations Mindset Learning We need to react on the changing innovation landscape and create new governence culture Markkula M & Pirttivaara M, (2013). Adding the Cultural Levers. Developed from Davila T, Epstein MJ and Shelton RD, (2013), Making Innovation Work, FT Press, New Jersey.
    13. 13. Helsinki Region Smart Specialisation The Helsinki regional RIS3 has the following steps (some already fulfilled, some on the process): 1. A collaborative scenario process was carried out 2012-2013 within the Greater Helsinki Region. 2. Main targets up to 2040 were defined by the Helsinki Regional Council in cooperation with the municipalities. 3. The process for the Helsinki Region policy programme was organized in 2013 with stakeholder hearings and open consultation. The outcome including the vision and strategy 2040, as well as the strategic priorities for 2014-2017 was approved by the Regional Council on 11 December 2014. 4. Implementation plan with the spearhead mega-endeavors is approved. 5. The re-organizing the activities of the Steering Board for using structural funds and running the RIS3 process. 6. The ongoing process phase is the defining in more detail the ecosystems and roadmaps for each spearhead mega-endeavor. All stakeholders are engaged. Universities and other innovation key actors are having the major role in this. 7. The most challenging activity is integrating the points 5 and 6 targeted to new RIS3 governance concepts which are based on orchestration and synergic implementation processes. These will lead to strong societal impact through each spearhead mega-endeavor. In this slide I see RIS3 as a process important for universities
    14. 14. The RIS3 Process: Six Challenges to Implement Smart Specialisation Strategies in Practice CHALLENGE 1: The “prioritization” challenge: how to select (and justify) priority intervention domains for S3? CHALLENGE 2: The “integrated policy” challenge: what are the adequate policies for S3? CHALLENGE 3: The “smart policy-making” challenge: what tools for evidencebased policy (measuring, assessing and learning in S3)? CHALLENGE 4: The “multi-level governance” challenge: how to align policies from national, regional, EU levels? CHALLENGE 5: The “cross-border collaboration” challenge: what is the appropriate territory to conduct a S3 and how to conduct polices that conform to it? CHALLENGE 6: The “stakeholders engagement” challenge: how to promote participation, engagement and commitment of the variety of stakeholders? Markku Markkula CoR Innovation Union keynote on 27 Nov 2013, based on “The role of clusters in smart specialisation strategies”, DG Research and Innovation RIS3 new opportunities are open for our use.
    15. 15. Espoo Innovation Garden T3 T3 is a largest concentration of science and technology based research and innovation in Northern Europe. It’s a unique area for collaboration and living that is based on a deep cultural heritage combined with a world-leading innovation ecosystem. Our innovation ecosystem contains all of the essentials, from universities and research organisations to investors to co-operative centres and organisations where people and businesses come together to better equip our future. • Within the area we have leading universities, global businesses and earlystage start-ups. • T3 area is built on ecological, economical and ethical sustainability. • All collaboration is based on the idea of multidisciplines contributing together. • T3 is a living community with 110 nationalities, 5 000 research scientists, over 800 companies, 16 000 students, and 43 000 residents.
    16. 16. We Cannot Reach the Target by Incremental Small Steps: Metaphor of Gardening Inventing the future: Working and learning together Today Gardening to enable uniqueness Fruits of global pioneering to the use of all The upside-down tree metaphor originates 1992 by Leif Edvinsson We need to create “Joint Regional Innovation Ecosystems” The picture is based on the results of the Aalto Camp for Societal Innovation 2011: Markku Markkula
    17. 17. Entrepreneurship ecosystem Aalto Startup Center 80 companies in incubation/ 32 high growth Corporate partners Complementary Parties Coaches EIT ICT Labs EIT Nodes & partners in Europe PYK (Small Enterprise Center) Training for entrepreneurs Aalto Center for Entrepreneurship Around 200 innovation proposals/year -> 10-15 companies ->15-20 patent applications Research & AppCampus Startup Sauna AaltoES 2500 submissions reviewed in 18 mths 150 Investment decisions made 30 Applications launched, running rate 15-20 apps per month 30-40 companies in acceleration / year 20 million Euros raised 30 students trained with internships 9000 community members 100 activists Annually 8000 participates events SLUSH Established as the leading Start-Up event in Europe Aalto Ventures Program Problem based learning program to foster entrepreneurial mindset and skills Co-operation with Stanford Education
    18. 18. Mental entrepreneurial mindset with joint collaboration spaces and activities  Aalto Design Factory & Startup Sauna & Urban Mill  Aalto Innovation Garden (three old buildings)  Implementing Knowledge Triangle We need concepts to increase synergy. On-going joint process for defining and cocreating joint action themes and vision Physical space of real hectic action for research with experiments, dem os and prototypes BA & Flow, demo days & social media, other forms of effective communication, v irtual reality Bottom-up activities Passionate key persons, networking, processe s, platforms, focus on boundary objects
    19. 19. Aalto Campus is the Angry Birds’Nest… Selected as Global #1 Young Incubator July 2013, Silicon Valley Near 2,000 million downloads Fastest growing brand ever The ”Angry Birds“ Comes from Otaniemi Figure May 2013 (C) Otaniemi Marketing Ltd 2013
    20. 20. The Future is here: 1000 start-ups, 200 venture capitalists and other investors, 5000 participants Ilkka Paananen CEO Supercell Jyrki Katainen Prime Minister Finland Something outstanding: organised by students, based on Aalto Entrepreneurship Society & Startup Sauna
    21. 21. RIE is crucial for successful H2020 & ESIF projects . From Triple Helix to RIE (Regional Innovation Ecosystem): Using The Hubconcepts™ - Innovation Hub Framework First-class master plans & Innovation Hub concepts Anchors Growth SMEs Start-ups “Smart Handover” Company and forum driven activities complete each other Incubation Environments Living Labs / Test-Beds Public-private partnerships Cluster Policies & Programs Research & Development Activities Education (elementary to university) Physical Infrastructure and Service Structures National /Regional Innovation Policy Public policy driven activities Residential Zone Semiconductor Phase I Biotech & Pharma Phase I Technology Innovation Area Read the arcticle by Jukka Viitanen & Markku Markkula & Carlos Ripoll in the Knowledge Triangle Book 2013. Scientific Research and Education Zone Semiconductor Phase II Biotech & Pharma Phase II Based on Hubconcepts Inc / Jukka Viitanen: Copyright and all rights reserved.
    22. 22. The Changing Realities in the Systemic Development of Regional Innovation Ecosystems “From Triple Helix to RIE” Jukka Viitanen, Markku Markkula, Carlos Ripoll Soler (the article, 16 pages, gives a clear process guidelines from the city governance perspective): 1. Introduction 2. The Triple Helix Model Extended to the National and Global Contexts 3. New Foundations for the Regional Innovation Policy and the Development of Specialization Capacity 4. The Interplay and Matching of Parallel Interests in the Regional Innovation Ecosystems 5. The Comprehensive Bench-Learning Approach for the Functional RIEs 5.1. Grand Master Planning 5.2. Coordinating Service Provision 5.3. Smart Orchestration 5.4. Channeling Ecosystem Resources 6. Conclusions RIE is crucial for successful H2020 & ESIF projects.
    23. 23. The Development Path of the Regional Innovation Ecosystem (RIE) This is the process we are applying in practice in the Espoo Innovation Garden regional ecosystem through the research program “Energizing Urban Ecosystems” (20 million euros in 4 years: industry driven 50% funding from industry, 50% from Finnish public funding) . RIE is crucial for successful H2020 & ESIF projects. Public support Stage 1: Creating pre-conditions Stage 2: Initiating transformation towards RIE Stage 3: Orchestration for global business Development of National or Regional Innovation System Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
    24. 24. The Development Path in More Detail Stage 1 Regional pre-conditions: 1. Potential of existing regional/international innovation system (=audits) 2. Willingness to utilise this potential (=active participation) Stage 2 Creating the innovation hub: 1. Joint R&D 2. Joint innovation capacity 3. Joint commercialization 4. Joint platforms RIE is crucial for successful H2020 & ESIF projects. Stage 3 Orchestrating RIE: 1. Mindset change 2. Implementing Knowledge Triangle 3. Integrating innovation activities with research programs Source: Jukka Viitanen & Markku Markkula & Carlos Ripoll, article in the Knowledge Triangle book, 2013
    25. 25. Added value for these projects Knowledge Triangle implementation Research Creating enablers for this project portfolio. Some projects are coordinated by Aalto and some by the others. Education Innovation Project 1 Project 2 Project 3 Project 4 Include flexibility through experimenting and spin-offs & spin-inns Project 5 Markku Markkula Aalto University Additional added value for the partners and stakeholders Outcomes of the projects Aalto frame for the EU Horizon Mega-Endeavour (orchestrating a project portfolio) We need concepts to increase synergy. Other impacts
    26. 26. How to make all this a reality? Methodological RDI We need concepts to increase synergy. (integrated with the university’s focus areas and the regional strategy) A. New concepts and activities need to be linked with RDI. B. Open Innovation integrates research, teaching, learning and different collaborative developments. It is a feature characterizing all these activities. Orchestration of the specific projects and general open innovation activities focusing on the regional spearhead topic. Societal Challenges 4. Living Environment C. In each topic the RDI areas in the picture can be different depending on the existing strengths of the faculty. 5. Leadership and Management Industrial Renewal University’s Focus Areas 2. ICT D. Orchestration also for European partnerships based on RIS3. This means that each region should locally organise the settings in a similar documented way. 6. Innovation Process Working Life Practices 1. Science & Society Interaction 3. Human Capital Individual innovativeness © Markku Markkula 31
    27. 27. We need new instruments such as ACSI Innovation Camps 2010-2013 Innovation culture New kinds of collaboration Urban test-beds Five perspectives Demonstrations in Real life & Virtual reality ICT Cluster Revolution & Job creation
    28. 28. Increasing collaboration between regions. Local Digital Agenda for the Helsinki Region based on Smart Specialisation – Draft (the process goes on) We will pioneer solutions to tackle Grand Societal Challenges. We will focus on: 1. Smart Urban Design, especially Open Data 2. Active and Healthy Ageing 3. Low Carbon Economy, especially Cleantech & Smart Traffic This means especially fueling Industrial Leadership by focusing on: 1. Regional Service Architecture and Modeling 2. Digitalization of System Processes, especially Services 3. Mindset and Other Enablers for Start-up and Growth Companies And this means scientific excellence focusing on: 1. Open Innovation Interlinked Ecosystems 2. Human Centered Living Environments: Integrating Real and Virtual Reality 3. Key Enabling Technologies and their multidisciplinary applications Draft by Markku Markkula Fall 2013: based on the CoR Horizon 2020 opinion, European collaboration on LDA activities, the EUE/RIE plans, the EU Smart Specialisation Mirror Group and Helsinki Region policy programmes.
    29. 29. Analysing the DigiBusiness Evolution: Rodmapping Wellfare Ageing Technological development Globalisation Sustainable development Quality of life EU / Helsinki Digital Agenda 2020 Climate change 2010 2007 Mindtrek Neogames ja Pelikehittäjät Ry New funding models(Mediatonic) Digital interaction(Kites) eLearning (eOppimiskeskus Ry) Tekes, TIVIT Demola 2012 ICT structural change Rovio – Angry Birds Arctic15 Slush EU Digital Think Tank Kites Ry Protomo Growth coaching International Business Programme Digital content creation / Creative industries Education Esport (Future Learning Finland) Digidemo Open data and citizen participation Service design and Helsinki WDC Tv/crossmedia – The Mill Sessions Silicon Valley Think Tank Russia Think Tank – ICT Cluster and digiTv Design Thinking Smart City New Factory Neogames – internationalization reward Digital packages Vision + Strategic cooperation (Tekes, TIVIT, VTT, Sitra, Finpro, TT, veturi- ja kasvuyritykset)
    30. 30. The Need to Take Virtual Reality in Use for Collaboration Introduction of the tool used by CoR Innovation Union Conference 27 Nov 2013 A 2.5D Networked virtual reality tool was used both during the Networking Lunch and the Workshops. One dedicated user in each of the groups was responsible for adding material to the virtual environment and presenting the outcomes. The virtual environment had dedicated working areas for each of the four groups, and one for the entire event, containing the material for each working group. Simple tools for adding web-based material were introduced, enabling people to add material in a fast and interactive manner. The Virtual reality tool was accessible with a web browser, using Meshmoon Webrocket-technology 2013 Markku Markkula, Juho-Pekka Virtanen, Lars Miikki, Ali Kämäräinen, Tommi Hollström, Marika Ahlavuo, Hannu Hyyppä, Hank Kune
    31. 31. Find synergies and create strong partnerships CoR: collaboration for Innovation 2.0
    32. 32. CoR: collaboration for Innovation 2.0 u2020-innovation-union.aspx CoR Innovation Union Flagship Conference 27 Nov 2013 / Some Conclusions: 1. Innovation communities operate as ecosystems through systemic value networking in a world without borders.  INNOVATION IS NOT ANY MORE A LINEAR PROCESS 2. Innovation processes are strongly based on demand-driven user orientation and customers as crucial players in innovations.  OPEN INNOVATION 2.0 MEANS PUBLIC&PRIVATE&PEOPLE PARTNERSHIPS 3. Innovation strategies focus on catalysing open innovation and encouraging individuals and communities towards discovery and effective use digitalised services.  CREATING FAVOURABLE CONDITIONS FOR CREATIVITY AND INNOVATION 4. Innovation is often based on experimenting and implementing demonstration projects by partnerships, using the best international knowledge and creating new innovative concepts.  EXPERIMENTING & RAPID PROTOTYPING
    33. 33. Summary Summary: Towards Smart Regions and Cities There is a huge gap between the latest research knowledge and real life practice. What do we need to do to fill it? CoR has defined the following guidelines: 1. Europe needs pioneering regions to be forerunners in implementing the EU2020 and through that to invent the desired future. 2. Lifelong learning and the full use of ICT are cornerstones for this change of mindset towards entrepreneurship and innovation. 3. We need the dynamic understanding of regional innovation ecosystems where public, private and third sector learn to operate together. Modernize Triple Helix. 4. We need methodologies to mobilize public private partnerships and encourage especially people participations: user-driven open innovation & living labs. 5. We need to speed up the change by scalability & implementation. Source: CoR Opinions 2011-2013
    34. 34. What new special is needed? Summary RIS3 & H2020  Modernizing Universities during the EU Programme Period 2014-2020 1. Europe needs more societal innovation: This can be achieved by developing the decision making processes needed to address societal challenges: using the best international knowledge and collaboration expertise, developing the required competencies and methods to support decision makers. 2. Europe needs more piloting and experimenting: This can be done by increasing testing and implementing demonstration projects related to smart and sustainable development: studying, piloting, demonstrating and verifying new models. 3. Europe needs mindset change towards entrepreneurial discovery: This means creating innovation gardens and challenge platforms for collaboration with the businesses, universities and research institutions within the region: to create a working together culture, innovative concepts and methods for partnerships. 4. Regional Innovation Ecosystems are based on modernizing the role of strong research based universities. 5. Universities and other knowledge actors need more synergy within their activities: This means orchestrating project portfolios and megaendeavours, as well as implementing the Knowledge Triangle principle in universities.