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Slides eurofound - innovation and employment - 13 feb 19

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Slides from NERI Seminar on 13th February, 2019 presented by Valentina Patrini, Research Officer, Eurofound

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Slides eurofound - innovation and employment - 13 feb 19

  1. 1. Valentina Patrini, Eurofound NERI seminar – Dublin, 13 February 2019 Employment effects of public innovation support measures for companies in Europe 1
  2. 2. Established in 1975 Budget of € 20.5 million 100 people Tripartite agency European Foundation for the Improvement of Living and Working Conditions 2 Eurofound
  3. 3. 3 Working conditions and sustainable work Industrial relations Quality of life and public services Labour market change Monitoring convergence in the EU The digital age: opportunities and challenges for work and employment Call for external experts https://www.eurofound.europa.eu/about-eurofound/procurement/call-for-external-experts Six strategic areas of intervention
  4. 4. • Background – EU struggling to achieve job-rich growth; role of competitiveness/innovation • Objectives – To explore the employment effects of public innovation support measures – To explore the mechanisms and effectiveness of specific (types of) instruments – To assess the availability and suitability of respective evaluations, assessments, data • Key concepts – Innovation – Innovation support – Employment effects • Methodology – Literature review – Mapping of relevant support instruments in the EU28 and Norway – Analysis of 15 support instruments; CMO model to face the challenge of assessing their effectiveness – Focus on AT, DK, EE, FR, DE, IT, NL, PL, SE, UK – Deriving policy pointers Employment effects of innovation support https://www.eurofound.europa.eu/publications/policy-brief/2018/employment-effects-of-innovation-support 4 About the project
  5. 5. • Realist evaluation (Pawson and Tilley, 1997): ‘How and why does this work, for whom and in what circumstances?’ vs. just ‘what works?’ • Theory-driven: programmes are products of human imagination  testing the veracity of that vision of change • CMO configurations: context, mechanisms, outcomes • Mixed methods: quantitative and qualitative evidence Activities Black box – something happens here Outcomes Realist evaluation works to unpack this black box 5 Realist evaluation
  6. 6. 6 Direct or indirect objectives conducive to employment effects Product innovation Process innovation Marketing innovation Organisation al innovation Social innovation (Short-term) employment-related outcomes Firm level Context Mechanisms Outcomes Capacity building in enterprises Strategic measures Building relations with partners Innovation activities Non- employment related outcomes No specific or implicit employment objective s (outside the scope of the study) Longer-term employment-related outcomes (impacts) Firm level and wider outcomes Innovation measures Interventions in other policy areas Employment Economic Knowledge, skills and capacities Working conditions Labour mobility Welfare The theoretical framework
  7. 7. 7 The context Public innovation support and employment links in Europe • Innovation key factor for EU competitiveness + need to address the threats that innovation poses on employment • European policies: EU 2020 strategy; flagship initiatives; H2020; Structural and investment funds • Evolution of support types Academic studies on innovation and employment • Unclear relationship – especially in the short-term • Zimmerman (2009): + effects on employment for product and process innovations in German SMEs, stronger for process • Ortega-Argilés et al (2015), cross-country perspective: product innovation labour- friendly, process labour-saving. Coad and Rao (2007): similar project on US high-tech manufacturing companies, different effects depending on company growth/size • Simpatic project (2014, annual Community Innovation Survey in Eurostat): + impact on job growth from product and marketing innovation, no significant impact from process innovation. All innovation types contributed to increase highly skilled jobs • Calvino and Virgillito (2018): product innovation labour friendly, process innovation controversial effects. Effects depend on country, sectoral and technological characteristics
  8. 8. Strategic measures Awareness raising Measures that are part of other strategies (e.g. innovative approaches to local economic development) Demand-side procurement for innovation Promotion of open innovation Smart specialisation Building relations with partners Networking/ Industry-academic cooperation Innovation infrastructures and platforms Innovation/ knowledge centres Industry clusters Support at the enterprise level Stand-alone measures Tax credits for R&I Encouraging entrepreneurship Innovation vouchers R&D programmes Capacity building Creation of innovation start- ups Business incubators Business advice and direct support 8 The measures
  9. 9. 9 Stand-alone measures Type Measure Key characteristics Tax credit Research tax credit (FR)  Promotion of an innovation-friendly business environment and increase of private sector innovation by reducing tax liability  Beneficial conditions for enterprises employing recent graduates WBSO R&D tax credit (NL)  Affecting employment directly by offering reductions in payroll taxes Encouraging entrepreneurship WAFF innovation and employment subsidy (AT)  Funding to SMEs for staff training and consultancy, and to pay for ‘innovation assistants’ needed to develop the projects Innovation voucher Innovation vouchers (EE)  Small instrument providing for initial cooperation but with potential to change perceptions
  10. 10. 10 Capacity building Type Measure Key characteristics Creation and development of innovative start- ups Smart&Start (IT)  Targeting very young start-ups through funding Incubators/ facilities Investment incubators (PL)  Advice, business development and access to finance to create a path of public support at the various development stages of a business venture  Aim of increasing the number of innovative businesses Business advice and direct support Growth Houses (DK)  Provision of a reliable ‘sparring partner’ to collaborate with enterprises and employers with an evident growth potential and ambition Enterprise Value: People (DE)  SME subsidy to carry out consultations to improve firm internal processes with the ultimate goal of retaining skilled personnel
  11. 11. 11 Networking Type Measure Key characteristics Networking/ industry- academic cooperation Knowledge Transfer Partnerships (UK)  Mobility scheme, associate coming from one type of organisation (research institution) working in another (business)  Mutually beneficial and structured partnership between an academic institution and a business needing innovation input Building innovation infrastructures/ platforms Laura Bassi Centres of Expertise (AT)  Research centres - female research excellence  Links between centres and businesses interested in applied research Knowledge centres Competitiveness poles (FR)  Collaborations between businesses, start-ups, universities and public research laboratories on the same territory through common R&D projects, training, equipment, premises, finance Cluster promotion Danish Cluster Promotion (DK)  Help for enterprises to speed up their innovation processes and to achieve commercial success, by working in clusters  Target groups: enterprises and cluster managers
  12. 12. 12 Strategic measures Type Measure Key characteristics Measures that are part of other strategies Startup in residence Amsterdam (NL)  Demand side (public sector procurement) stimulation and training to (re)vitalise the city and its buying processes, while supporting the entrepreneurial culture and addressing social challenges Demand-side procurement for innovation Small Business Research Initiative (UK)  Funding of contracts through open procurement processes, involving the development of potential solutions (products and/or services) to public sector problems Smart specialisation Swedish Winter Sports Research Centre (SE)  Long-standing instrument redesigned to fit the Regional Innovation Strategy and Smart Specialisation strategy  R&D centre for winter sport, focused on education and teaching, research and innovation and testing, involving key actors in the territory
  13. 13. Strategic measures Environment boosting innovation and entrepreneurship Supportive environment for particular types of companies, such as start-ups Tackling obstacles in public sector (strategic policy directions, open- procurement) Building relations with partners Cooperation, promoting behavioural change and developing processes Exchanges of knowledge and staff to support mutual learning Specific collaborations in R&D activities (financing, training, equipment/facilities) Intensity and speed of innovation processes Support at the enterprise level Beneficial conditions to enable enterprises to hire skilled personnel Skills and competences development through staff training and consultancy Tools for companies to enhance workplace motivation/retain skilled staff Creating an entrepreneurial culture through awareness-raising/coaching 13 The mechanisms
  14. 14. Measure Country Job creation Employment of specific groups Employment of high-skilled staff Enhanced skills and competences Improved workplace practices Sustained effects Enterprise level WAFF Innovation and Employment Subsidy Austria √ √ Growth Houses Denmark √ √ Innovation vouchers Estonia √ √ √ √ Research tax credit France √ √ Enterprise Value: People Germany √ √ √ Smart&Start Italy √ √ √ Investment incubators Poland √ √ WBSO R&D tax credit Netherlands √ √ √ √ √ Network level Laura Bassi Centres of Expertise Austria √ √ Danish Cluster Promotion Denmark √ √ Competitiveness centres France √ Knowledge Transfer Partnerships UK √ √ √ Strategic level Winter Sports Research Centre SE √ √ √ Startup in residence Amsterdam Netherlands √ √ √ Small Business Research Initiative UK √ √ Main employment effects of the innovation-support measures 14 Key findings
  15. 15. • Job creation – Most common employment-related outcome – Objective, indicator of economic growth, monitored • Employment of specific groups – Gender, age; no other sociodemographic groups • Employment of highly skilled staff – Knowledge transfer, exchange of staff; bridging cultural gap industry/academia – High quality jobs (PhD/R&D profiles’ absorption in labour market) • Development of skills and competences – Regarded as a mechanism rather than an objective (programme design – monitoring) – Development of existing staff • Workplace improvements – Organisational learning and cultural change (research management; HR policies; better working milieu for knowledge workers) – Better working conditions (better job quality; more interesting jobs) • Sustained effects – Hints of sustained effects; no monitoring beyond measure duration – Improved, more innovative business environment Learning as key vector for behavioural change - Informal: networks - Formal: training 15 Employment-related outcomes
  16. 16. • Innovation support mainly aims at growth rather than employment specifically • Employment effects as by-products rather than explicit objectives • Job creation: assumption, but scattered evidence • Mainly product and process innovation; scarce support for organisational and marketing innovation (surprising, given policy pronouncements) • Generally, neglect of significant aspects of the human resources dimension of innovation, especially in relation to the existing workforce • Focus on highly skilled workers, little attention to other staff; limited gender effects • Hidden impact on skills and competences development (mechanisms rather than objectives) • (Evaluation) evidence is scarce and focused on objectives (vs mechanisms) • Country differences: innovativeness; unemployment rates 16 Conclusions
  17. 17. Implications for policy • Explicitly include employment goals in innovation policy • Pay more attention to the human factor in innovation • Extend the reach of measures (staff) • Tailor measures for the national context • Monitor and evaluate measures systematically Implications for policy research • Giving a structure (framework) to diverse evaluation evidence • Our research questions, the programme objectives and the evaluation questions • Strength of evaluation evidence (relevance, quality, availability and accessibility); relevant indicators • Mix methods: secondary analysis + collection of complementary information  role as evaluators? • Approach: similar to case studies? Focus on effectiveness and mechanisms • In-depth knowledge vs comparability and transferability (middle-range: e.g. country innovativeness, unemployment levels, …) • Exploratory vs focused research; risk of ‘anecdotal’ cases; setting the scene is key 17 Implications
  18. 18. • Are the measures covered broadly representative of innovation support across Europe? And in Ireland? • The main effects identified are on employment (especially highly skilled) and on skills and competences (and some gender effects). Would others be expected? • Is it possible to recommend any of the measures as good examples? • Is a technological bias/emphasis inevitable in innovation policy? • What would a more holistic approach to innovation support look like? • Are the implications of the analysis different for countries/regions at different levels of innovation development? • In view of the major flaw in most measures, can any of them be highlighted as good examples? • Can employment promotion be an objective of innovation policy? 18 Discussion questions
  19. 19. Thank you for your attention! Valentina.Patrini@eurofound.europa.eu 19

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