Step 1: Analysis of regional potential for innovation-driven differentiation Step 2: RIS 3 process and governance – ensuring participation & ownership Step 3: Elaboration of an overall vision for the future of the region Step 4: Selection of priorities for RIS3 + definition of objectives Step 5: Definition of coherent policy mix and action plan, incl. budget Step 6: Integration of monitoring and evaluation mechanisms Step 7: Communication of the strategy Step 8: Self-assessment, peer-review and update of RIS3
The Challenge and the Opportunity of Smart Specialisation
The Challenge and the Opportunity of SmartSpecialisation (RIS³) for Europe’s regions:a place based agenda for economictransformation rooted on research andinnovationDr Dimitri CORPAKISHead of Unit, Regional Dimension of InnovationDG Research and InnovationEuropean CommissionHelsinki, 22/4/13
2Innovationperformance(2012)R&D expenditure inthe business sectoras % of GDP(2011)
Investment in R&D is part of the solutionto exit from the economic crisis
PolicyPolicyResearch andInnovationResearch andInnovationThe need for a new policy approachThe need for a new policy approachfor regional developmentfor regional development The knowledge economy is here – with a priceThe knowledge economy is here – with a price Globalisation has pushed the boundaries and has changedGlobalisation has pushed the boundaries and has changedtraditional ways for dealing with regional developmenttraditional ways for dealing with regional development Global value chains have redrawn the map of conceivingGlobal value chains have redrawn the map of conceivingand producing products and servicesand producing products and services Countries / regions that are not able to adapt will see theirCountries / regions that are not able to adapt will see theireconomies being marginalisedeconomies being marginalised Global positioning necessary – need for a thorough systemGlobal positioning necessary – need for a thorough systemof SWOT analysisof SWOT analysis Need for a new growth proposition based on knowledgeNeed for a new growth proposition based on knowledgeassetsassets
D.Foray, P.A. David and B.Hall : SmartSpecialisation: the ConceptKnowledge forGrowth expertgroup for the EC
PolicyPolicyResearch andInnovationResearch andInnovationA simple idea (KfG brief no 9, 2009)A simple idea (KfG brief no 9, 2009) “It should be understood at the outset that the idea of smartspecialisation does not call for imposing specialisation through someform of top-down industrial policy that is directed in accord with apre-conceived “grand plan”. Nor should the search for smartspecialisation involve a foresight exercise, ordered from a consultingfirm. We are suggesting an entrepreneurial process of discovery thatcan reveal what a country or region does best in terms ofscience and technology. That is, we are suggesting a learningprocess to discover the research and innovation domains in which aregion can hope to excel. In this learning process, entrepreneurialactors are likely to play leading roles in discovering promising areas offuture specialisation, not least because the needed adaptations tolocal skills, materials, environmental conditions, and market accessconditions are unlikely to be able to draw on codified, publicly sharedknowledge, and instead will entail gathering localized information andthe formation of social capital assets.”
10Draft Common Provisions Regulations for Cohesion PolicyThematic Ex Ante ConditionalitiesThematic Objectives Ex Ante Conditionality Ex Ante Criteria for Fulfilment1. Strengthening research,Technological development andinnovation (R&D target)(referred to in Article 9(1) )1.1. Research and innovation:The existence of a national orregional research and innovationstrategy for smart specialisationin line with the National ReformProgram, to leverage privateresearch and innovationexpenditure, which complies withthe features of well-performingnational or regional research andinnovation systems.– A national or regional researchand innovation strategy for smartspecialisation is in place that:– is based on a SWOT analysis toconcentrate resources on a limitedset of research and innovationpriorities;– outlines measures to stimulateprivate RTD investment;– contains a monitoring andreview system.– A Member State has adopted aframework outlining availablebudgetary resources forresearch and innovation;– A Member State has adopted amulti-annual plan for budgetingand prioritization ofinvestments linked to EUpriorities (European StrategyForum on ResearchInfrastructures / ESFRI)
PolicyPolicyResearch andInnovationResearch andInnovationSmart Specialisation is notSmart Specialisation is notwhat you usually think it iswhat you usually think it is• It is not about pure specialisation – since this involvesIt is not about pure specialisation – since this involveshuge risks about potential lock-inshuge risks about potential lock-ins• It is not about selecting and favouring only a fewIt is not about selecting and favouring only a fewsectors – but this might be an intermediate stagesectors – but this might be an intermediate stage• It is rather about identifying the newIt is rather about identifying the newopportunities that often emerge at theopportunities that often emerge at theintersection of existing sectors and technologies –intersection of existing sectors and technologies –the target of the "entrepreneurial discoverythe target of the "entrepreneurial discoveryprocess"process"
12Smart Specialisation and RegionalDevelopment• In a regional context this translates to:- Embeddedness- Related variety- Connectivity• Philip McCann and Raquel Ortega-Argilés:Smart Specialisation, Regional Growth andApplications to EU Cohesion Policyhttp://ec.europa.eu/regional_policy/cooperate/regions_for_Courtesy Philip McCann
13Smart Specialisation and RegionalDevelopment• Embededness: can be captured by regionalCGE models, regional Input-Output models,location quotients, case studies, longevity, socialcapital etc.• Relatedness: It is not about sectoralspecialisation but diversification → specialisedtechnological diversification• Embededness + Relatedness =Relevant Size DomainCourtesy Philip McCann
PolicyPolicyResearch andInnovationResearch andInnovationKey points on Smart SpecialisationKey points on Smart Specialisation::• Stimulate innovation through entrepreneurship,modernisation, adaptation• Dare to introduce innovative governancesolutions• Think about strategic technologicaldiversification on areas of relative strength andpotential• Increase diversification – promote newlinkages, synergies and spilloversAdapted from Philip McCann (2012)
PolicyPolicyResearch andInnovationResearch andInnovationStep 1: Analysis of regional potential forinnovation-driven differentiationStep 2: RIS 3 design and governance –ensuring participation & ownershipStep 3: Elaboration of an overall vision forthe future of the regionStep 4: Selection of priorities for RIS3 +definition of objectivesStep 5: Definition of coherent policy mix,roadmaps and action planStep 6: Integration of monitoring andevaluation mechanismsSteps to RIS3Steps to RIS3(6) Monitoring(5) Policy mix(4) Priorities(3) Vision(2) Process(1) AnalysisRIS 3 Strategy
PolicyPolicyResearch andInnovationResearch andInnovationAssessment questions for RIS3 strategiesAssessment questions for RIS3 strategies1. Is the strategy based on an appropriate stakeholder involvement?How does it support the entrepreneurial discovery process oftesting possible new areas?2. Is the strategy evidence-based? How have areas of strength andfuture activity been identified?3. Does the strategy set innovation and knowledge-baseddevelopment priorities? How have potential areas of future activitybeen identified? How does it support the upgrading of existingactivities?4. Does the strategy identify appropriate actions? How good is thepolicy mix?5. Is the strategy outward looking and how does it promote criticalmass/potential?6. Does the strategy produce synergies between different policiesand funding sources? How does it align/leverageEU/national/regional policies to support upgrading in the identifiedareas of current and potential future strength?7. Does the strategy set achievable goals, measure progress? Howdoes it support a process of policy learning and adaptation?8. Can the strategy be regarded as a regional research andinnovation strategy for smart specialisation following the guidanceprovided by the EU Commission? Which advice can be given toimprove the strategy?
PolicyPolicyResearch andInnovationResearch andInnovationHorizontal issues and policy delivery instruments for RIS³ Green Growth: only sustainable is smart – Eco-innovation & Energy efficiency Digital agenda: enabling knowledge flows throughout the territory –connectedregions Clusters for regional growth: business ecologies that drive innovation Innovation-friendly business environments for SMEs: good jobs in internationallycompetitive firms Social Innovation: new organisational forms to tackle societal challenges Stronger focus on financial engineering: not only grants Lifelong Learning in research and innovation: support knowledge triangle (KICs)and university-enterprise cooperation Key Enabling Technologies: systemic potential to induce structural change Research infrastructure/centres of competence: support to ESFRI and EU widediffusion of leading edge R&D results Creativity and cultural industries: innovation beyond technology and outsidemanufacturing Public Procurement for market pull: pre-competitive PP to open new innovationfriendly market niches
PolicyPolicyResearch andInnovationResearch andInnovationExample: Bremerhaven (DE)Example: Bremerhaven (DE) Economy based onEconomy based onshipbuilding & commercialshipbuilding & commercialfishing in strong downturnfishing in strong downturnend of 1990’send of 1990’s Selection of ‘offshore windSelection of ‘offshore windenergy’ as newenergy’ as newdevelopment: clear &development: clear &integrated industrialintegrated industrialstrategy and clustering ofstrategy and clustering ofcompetenciescompetencies Strong existing synergiesStrong existing synergiesbetween ‘shipyard’ &between ‘shipyard’ &‘offshore wind’ sectors‘offshore wind’ sectors Now Bremerhaven = majorNow Bremerhaven = majorhub of offshore wind in DE,hub of offshore wind in DE,4 major manufactures,4 major manufactures,already 1,000 jobs createdalready 1,000 jobs created
PolicyPolicyResearch andInnovationResearch andInnovationA three-stepentrepreneurialdiscovery processVisioning:with focus on societal challenges(transition management / startingexperiments)in Transition ArenasStrategy development:with focus on transformation byinnovationstrategies within innovation hubs)in Innovation Direction GroupsAction plan:with focus on investment projectsin consortia driven by frontrunners(promoted in Round Tables andTransformation and InnovationPlatforms)20VisionStrategyActionPlanJan Larosse, 2012The Flandersexample
2121EU R&D and InnovationEU R&D and InnovationPolicyPolicyfuture Horizon 2020future Horizon 2020EU Cohesion PolicyEU Cohesion PolicyDifferencesDifferencesBased largely onBased largely on individual R&D and innovationindividual R&D and innovationProjectsProjects of a pre-competitive nature aiming atof a pre-competitive nature aiming atadvancing knowledge and fostering innovation foradvancing knowledge and fostering innovation forgrowth and jobs, including but not exclusivelygrowth and jobs, including but not exclusivelyfrontierfrontier research (also co-funding national andresearch (also co-funding national andregional programmes)regional programmes)Based onBased on multiannual Programmesmultiannual Programmes aiming toaiming toreduce regional disparities, including throughreduce regional disparities, including through close toclose tothe market competitive R&D andthe market competitive R&D and innovationinnovationeffortseffortsAwardedAwarded directly to final beneficiariesdirectly to final beneficiaries (firms,(firms,public and private R&D centres and Universities,public and private R&D centres and Universities,including national and regional governments inincluding national and regional governments incertain cases – Art. 185, ERA-NET etc.)certain cases – Art. 185, ERA-NET etc.)AwardedAwarded throughthrough shared management exclusively toshared management exclusively tonational and regionalnational and regional public intermediariespublic intermediariesThrough transnational competitive callsThrough transnational competitive callsaddressed to international groupings through peeraddressed to international groupings through peerreviewreview based on excellencebased on excellence criteriacriteriaNon competitive attributionNon competitive attribution addressed to regionaladdressed to regionalplayersplayers based on strategic planningbased on strategic planning negotiationnegotiation(however competitive calls possible and rising at(however competitive calls possible and rising atnational or regional level)national or regional level)Synergies and ComplementaritiesSynergies and ComplementaritiesHorizon 2020Horizon 2020 will focus on tackling major societalwill focus on tackling major societalchallenges, maximising the competitiveness impactchallenges, maximising the competitiveness impactofof research and innovationresearch and innovation (Industrial(Industrialleadership) and raising and spreading levels ofleadership) and raising and spreading levels ofexcellenceexcellence in the research basein the research baseCohesion policyCohesion policy will focus on galvanisingwill focus on galvanising smartsmartspecialisationspecialisation that will act as athat will act as a capacity buildingcapacity buildinginstrument, based on learning mechanisms and theinstrument, based on learning mechanisms and thecreation of critical skills in regions and Member States.creation of critical skills in regions and Member States.
PolicyPolicyResearch andInnovationResearch andInnovationResearch and InnovationResearch and InnovationInvestment proposed prioritiesInvestment proposed prioritiesfor the ERDFfor the ERDFStrengthening research, technological developmentStrengthening research, technological developmentand innovation:and innovation: Enhancing research and innovation infrastructure (R&I) andEnhancing research and innovation infrastructure (R&I) andcapacities to develop R&I excellence and promoting centres ofcapacities to develop R&I excellence and promoting centres ofcompetence, in particular those of European interestcompetence, in particular those of European interest Promoting business R&I investment, product and servicePromoting business R&I investment, product and servicedevelopment, technology transfer, social innovation and publicdevelopment, technology transfer, social innovation and publicservice application, demand simulation, networking, clusters andservice application, demand simulation, networking, clusters andopen innovation through smart specialisationopen innovation through smart specialisation Supporting technological and applied research, pilot lines, earlySupporting technological and applied research, pilot lines, earlyproduct validation actions, advanced manufacturing capabilities andproduct validation actions, advanced manufacturing capabilities andfirst production in Key Enabling Technologies and diffusion offirst production in Key Enabling Technologies and diffusion ofgeneral purpose technologiesgeneral purpose technologies
PolicyPolicyResearch andInnovationResearch andInnovationHorizon 2020 strategy:Building on the experience of researchers mobility actions,capacity building actions in FP7 like Research Potential andRegions of knowledge, the Commission will introduce inHorizon 2020 actions that will focus on two main directions:• “Structured Mobility", mobility of researchers that willobserve distinct organisational frameworks and willengage in twofold actions, first on raising excellence inthe institutions involved and second on stimulatingfurther regional innovation through smart specialisationstrategies in the context of future Cohesion policy.• The second family of measures will be more policyoriented and will provide specific support to nationaland regional governments on policy design andimplementation as well as an upgraded support servicethrough improved and scaled-up National Contact Pointsthat will have also better links and cooperation with theManaging Authorities of the Structural Funds, acrossEurope.
PolicyPolicyResearch andInnovationResearch andInnovationKeys to SynergiesKeys to SynergiesSmart SpecialisationSmart Specialisationex-ante conditionalityex-ante conditionalityThematic ConcentrationThematic Concentration(both under Cohesion policy)(both under Cohesion policy)
The Synergies and Smart Specialisation MatrixSTRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ONSTRUCTURAL FUNDS THEMATIC OBJECTIVE NO 1 ONSTRENGTHENING RESEARCH, TECHNOLOGICALSTRENGTHENING RESEARCH, TECHNOLOGICALDEVELOPMENT AND INNOVATIONDEVELOPMENT AND INNOVATIONHORIZON 2020 TOPHORIZON 2020 TOPDOWN RESEARCHDOWN RESEARCHAND INNOVATIONAND INNOVATIONPRIORITIESPRIORITIESINFLUENCINGINFLUENCINGNATIONAL ANDNATIONAL ANDREGIONALREGIONALPRIORITIESPRIORITIESTHEMATIC CONCENTRATION FORTHEMATIC CONCENTRATION FORMOST ADVANCED ANDMOST ADVANCED ANDTRANSITION REGIONS FORTRANSITION REGIONS FORALLOCATING 80% OF THE ERDFALLOCATING 80% OF THE ERDFMONEY FOR 4 OBJECTIVES: R&I,MONEY FOR 4 OBJECTIVES: R&I,ICT, SME COMPETITIVENESS ANDICT, SME COMPETITIVENESS ANDLOW CARBON ECONOMYLOW CARBON ECONOMYTHEMATIC CONCENTRATION FORTHEMATIC CONCENTRATION FORLESS ADVANCED REGIONS FORLESS ADVANCED REGIONS FORALLOCATING 50% OF THE ERDFALLOCATING 50% OF THE ERDFMONEY FOR 4 OBJECTIVES: R&I,MONEY FOR 4 OBJECTIVES: R&I,ICT, SME COMPETITIVENESS ANDICT, SME COMPETITIVENESS ANDLOW CARBON ECONOMYLOW CARBON ECONOMYEXCELLENCEEXCELLENCE SMART SPECIALISATION EX-ANTE CONDITIONALITYSMART SPECIALISATION EX-ANTE CONDITIONALITYbased on a SWOT analysis to concentrate resources on abased on a SWOT analysis to concentrate resources on alimited set of research and innovation priorities inlimited set of research and innovation priorities incompliance with the NRP; measures to stimulate private RTDcompliance with the NRP; measures to stimulate private RTDinvestment; a monitoring and review system; a frameworkinvestment; a monitoring and review system; a frameworkoutlining available budgetary resources for research andoutlining available budgetary resources for research andinnovation; a multi-annual plan for budgeting andinnovation; a multi-annual plan for budgeting andprioritisation of investments linked to EU researchprioritisation of investments linked to EU researchinfrastructure priorities (European Strategy Forum oninfrastructure priorities (European Strategy Forum onResearch Infrastructures -ESFRI)Research Infrastructures -ESFRI)INDUSTRIALINDUSTRIALLEADERSHIPLEADERSHIPSOCIETALSOCIETALCHALLENGESCHALLENGES
PolicyPolicyResearch andInnovationResearch andInnovationPossible implications for H2020 Possible impact on Horizon 2020 future Work ProgrammesPossible impact on Horizon 2020 future Work Programmesin all Priorities (especially Industrial Leadership andin all Priorities (especially Industrial Leadership andSocietal Challenges)Societal Challenges) Feedback from National and Regional Research andFeedback from National and Regional Research andInnovation Strategies for Smart Specialisation couldInnovation Strategies for Smart Specialisation couldinfluence areas for future Topics and vice versainfluence areas for future Topics and vice versa Involvement of flagship Horizon 2020 projects andInvolvement of flagship Horizon 2020 projects andstakeholders in RIS3 should not be excluded although ofstakeholders in RIS3 should not be excluded although ofcourse not compulsory and largely unpredictable. But thiscourse not compulsory and largely unpredictable. But thisdepends also on policies by MS and regions involved (activedepends also on policies by MS and regions involved (activeinvolvement policies maybe supported by the Structuralinvolvement policies maybe supported by the StructuralFunds)Funds) RTDI projects can be simultaneously or consecutivelyRTDI projects can be simultaneously or consecutivelysupported by H2020 and the ESI Fundssupported by H2020 and the ESI Funds
PolicyPolicyResearch andInnovationResearch andInnovationNext steps in planning forNext steps in planning forMember States / regionsMember States / regions Perform a serious analysis of national, regional and localPerform a serious analysis of national, regional and localcharacteristicscharacteristics Position the Member State / Region in its particularPosition the Member State / Region in its particularinternational context and see what this implies for its futureinternational context and see what this implies for its futurepriorities (consider re-positioning)priorities (consider re-positioning) Lay out a strategy for smart specialisation, in a bottom-upLay out a strategy for smart specialisation, in a bottom-upprocess involving all relevant stakeholdersprocess involving all relevant stakeholders Prioritise, evaluate, and choosePrioritise, evaluate, and choose Consider possible governance adjustments if neededConsider possible governance adjustments if needed Formulate a clear plan with limited and specific priorities,Formulate a clear plan with limited and specific priorities,where an evaluation process has to be built-in, withwhere an evaluation process has to be built-in, withrelevant indicatorsrelevant indicators│ 27
PolicyPolicyResearch andInnovationResearch andInnovationThank you !Thank you !