Lundin Gold April 2024 Corporate Presentation v4.pdf
Presentazione ithreu 1
1. 22/06/2017
ITHREU Project - Italy and Croatia: a partnership for Europe;
Initiative co-financed by the Ministry of Economic
Development – Law 84/2001
S3
Smart Specialisation Strategy
Zagabria 10-11 Settembre
Prof. Luciano Consolati
1
2. Il concetto e le motivazioni
Il concetto “Smart Specialisation” è stato sviluppato nei
policy brief del Gruppo “Knowledge for growth” e nel
“Rapporto Barca”, ed è ripreso nella Comunicazione della
Commissione sul contributo della politica regionale alla
“Smart Growth”.
E’ un concetto è utilizzato come raccomandazione :
• per migliorare l'efficacia dei sistemi nazionali e regionali
responsabili dell’attuazione delle politiche di ricerca e
innovazione
• per ripartire e mettere a sistema gli interventi dei Fondi
europei (HORIZON, COSME, Fondi strutturali) nel loro
sostegno all’innovazione
22/06/2017
3. strategie di “smart specialisation”
Le strategie di “smart specialisation” sono strategie
d’innovazione - flessibili e dinamiche - concepite a livello
regionale, ma valutate e messe a sistema a livello
nazionale.
Vanno valorizzati i settori/nicchie dove si dispongono chiari
vantaggi comparativi, ... che sono già facilmente
individuabili perché, per effetto della concorrenza, gli attori
economici si sono già specializzati e posizionati, o che
potranno essere sviluppati nel futuro grazie all’attività
imprenditoriale (il cosiddetto entrepreneurial process of
discovery)”.
22/06/2017
4. Risponde a tre questioni chiave
• Evitare la frammentazione e mettere a sistema gli
sforzi in materia di sostegno all’innovazione.
• Scoraggiare la tendenza alla replica di
specializzazioni in campi analoghi.
• Sviluppare strategie d’innovazione realiste ed
attuabili nelle regioni meno avanzate.
22/06/2017
5. Le motivazioni economiche
Sviluppare e implementare strategie per la trasformazione economica.
RIS3 richiede un processo integrato e basato sul territorio
all’elaborazione e all’attuazione delle politiche. Queste ultime devono
essere adattate al contesto locale, riconoscendo che l’innovazione e lo
sviluppo regionali possono essere realizzati seguendo percorsi diversi.
Tali percorso includono:
a) rinnovamento di settori tradizionali tramite attività a valore aggiunto
avanzate e nuove nicchie di mercato;
b) modernizzazione mediante l’adozione e la diffusione di nuove
tecnologie;
c) diversificazione tecnologica dalle specializzazioni esistenti in campi
correlati;
d) sviluppo di nuove attività economiche tramite cambiamenti
tecnologici radicali e innovazioni importanti;
e) sfruttamento di nuove forme di innovazione come l’innovazione
aperta e orientata verso l’utente, quella sociale e quella dei servizi.
22/06/2017
6. Gli Obiettivi Principali
- Rendere l’innovazione una priorità per tutte le regioni;
- Canalizzare gli investimenti e creare sinergie;
- Migliorare il processo di innovazione;
- Migliorare la governance e coinvolgere maggiormente i
soggetti interessati;
- Rispondere alle sfide economiche e sociali;
- Aumentare la visibilità delle regioni per gli investitori
internazionali;
- Migliorare i collegamenti interni ed esterni di una regione;
- Evitare sovrapposizioni e repliche nelle strategie di
sviluppo;
- Accumulare una «massa critica» di risorse.
22/06/2017
7. Proposte
Nell’ambito della politica di coesione dell’UE per il periodo 2014-2020, la
Commissione europea ha proposto che la specializzazione intelligente
diventi un requisito preliminare (la cosiddetta condizionalità ex ante)
per il supporto degli investimenti per due obiettivi politici chiave:
- rafforzare la ricerca, lo sviluppo tecnologico e l’innovazione (obiettivo
R&I);
- migliorare l’accesso alle tecnologie dell’informazione e della
comunicazione (TIC), nonché l’impiego e la qualità delle stesse (obiettivo
TIC).
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8. Risultati concreti
La condizionalità ex ante della politica RIS3 richiede alle regioni e agli
Stati membri dell’Unione europea di identificare le specializzazioni
relative alle conoscenze più adatte al loro potenziale di innovazione,
prendendo in considerazione le risorse e le capacità di cui dispongono.
Questa azione deve essere svolta attraverso un processo di «scoperta
imprenditoriale», ossia coinvolgendo imprese e protagonisti chiave
dell’innovazione.
Pertanto, anziché essere una strategia imposta dall’alto, la
specializzazione intelligente spinge le imprese, i centri di ricerca e le
università a collaborare per identificare le aree più promettenti di una
regione o di uno Stato membro ma anche i punti deboli che possono
ostacolare l’innovazione.
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9. La specializzazione intelligente non è una novità
Si tratta, piuttosto, del perfezionamento e dell’aggiornamento di una
metodologia esistente per la programmazione dei Fondi Strutturali. È
basata su 15 anni di esperienza nel sostegno alle strategie di
innovazione a livello regionale e sulle dottrine economiche di prima
linea delle principali istituzioni internazionali, come la Banca mondiale,
l’OCSE e il Fondo monetario internazionale (FMI).
La novità consiste nel fatto che la Commissione propone di imporre
tali strategie come condizione preliminare per l’accesso ai
finanziamenti FESR. Le regioni e gli Stati membri dell’UE devono
pertanto attuare le strategie RIS3 prima che i programmi operativi a
sostegno di questi investimenti vengano approvati.…
Più di 50 regioni europee sono già iscritte
•8 sono italiane (Piemonte, Lombardia, Emilia-Romagna, Toscana,
Umbria, Marche, Sardegna e Puglia).
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10. The policy challenges
- OECD countries have entered a period of slow
growth, high unemployment, low domestic
demand.
- A period of low demand, and hence, under-
investment in some sectors.
- Resurgent interest in “new industrial policy” in
OECD countries.
- Need for “New sources of Growth” in order to
make fiscal austerity economically feasible and
politically acceptable.
22/06/2017
11. Regions 2020
Globalizzazione: le regioni europee saranno esposte
a maggiore competizione globale, in particolare dei
Paesi emergenti
Demografia: le regioni europee registreranno un
invecchiamento della popolazione e un tasso di
dipendenza crescente (secondo al mondo solo al
Giappone)
Cambiamento climatico: le proiezioni scientifiche
indicano un peggioramento delle condizioni climatico-
ambientale nelle regioni mediterranee
Energia: le regioni europee dovranno andare verso
un’economia a basse emissioni, non basata su fonti
energetiche fossili
13. ITHREU Project - Italy and Croatia: a partnership for Europe; Initiative co-financed by the Ministry of Economic Development – Law 84/2001
14. 14
•Regions of
North-West
periphery well
placed;
• Southern and
Eastern regions
more exposed;
• Mixed
patterns in
Western and
Central Europe;
• Urban areas
better placed.
Globalisation vulnerability index
15. 15
•33 % of regions
will face population
decline
•Highest share of
elderly population
(aged 65+) in
Eastern Germany,
Finland, Northern
Spain, Italy
•Lowest share of
working-age
population (aged
15-64) in several
Finnish, Swedish
and German
regions
•Rural areas in less
favourable position
Demography vulnerability index
16. 16
• Southern
Europe most
vulnerable;
• 170 million
people live in
strongly
affected
regions;
• North and
Western
regions less
affected,
except
lowland
coastal
areas.
Climate change vulnerability index
17. 17
• determined
by national
energy policy
choices;
• Eastern and
southern
periphery
more affected
by security of
supply.
•Ireland,
Poland, Czech
Republic and
Bulgaria face
strong
challenges
Energy vulnerability index
19. OECD labour market conditions are no longer
improving
2008 2009 2010 2011 2012 2013
Employment (% change from previous period)
United States -0.5 -3.8 -0.6 0.5 1.2 1.5
Euro area 0.9 -1.8 -0.5 0.2 -0.3 0.2
Japan -0.4 -1.6 -0.4 -0.1 -0.4 -0.4
OECD 0.6 -1.8 0.3 1.2 0.5 0.8
Unemployment rate (% of labour force)
United States 5.8 9.3 9.6 9.0 8.9 8.6
Euro area 7.5 9.4 9.9 9.9 10.3 10.3
Japan 4.0 5.1 5.1 4.6 4.5 4.4
OECD 6.0 8.2 8.3 8.0 8.1 7.9
Source: OECD Economic Outlook, V2011/2
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20. Europa2020
inclusivesustainable
smart
Thematic objectives Europa 2020
1. Research and innovation
2. Information and Communication Technologies
3. Competitiveness of Small and Medium-Sized Enterprises
(SME)
4. Shift to a low-carbon economy
5. Climate change adaptation and risk management and
prevention
6. Environmental protection and resource efficiency
7. Sustainable transport and disposal of congestion on major
network infrastructure
8. Employment and support for labour mobility
9. Social inclusion and poverty reduction
10. Education, skills and lifelong learning
11. Increased institutional capacity and effectiveness of public
administration
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21. Europa 2020 - 5 target
22/06/2017
OCCUPAZIONE: 75% of the population aged 20-64 should be
employed;
R & INNOVAZIONE:
3% del PIL dei Paesi EU investito in R&D;
CLIMA / ENERGIA:
A reduction of CO2 emissions by 20%;
A share of renewable energies up to 20%
An increase in energy efficiency by 20%
FORMAZIONE:
The share of early school leavers should be under 10%
At least 40% of the younger generation should
have a degree or diploma.
POVERTA’: 20 million fewer people should be at risk of poverty
23. Scientific regions
In 2007 scientific
regions, hosting both
human capital and
research and activities
functions, are limited.
What is even more
striking is the high
number of regions with
no specialisation in
knowledge activities.
28. ITHREU Project - Italy and Croatia: a partnership for Europe; Initiative co-financed by the Ministry of Economic Development – Law 84/2001
Smart specialisation has recently gained a
significant importance as a base for the
european regional policy within the new “Europe
2020” strategy. In fact, in the new programming
period 2014-2020, the cohesion policy will be
subordinated to the development of Regional
Strategies based on Smart Specialisation
Strategy.
Smart Specialisation – A new concept
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29. Smart Specialisation - From concept to policy agenda
From its
launch in 2008, by D. Foray, P.A. David and B.H.
Hall…a rapid progression from “concept” to EU
policy agenda.
Born from innovation economics and thinking about
market failures, but a close cousin of “new”
industrial policy.
Conceptually, simple idea: to focus knowledge
investments.
Analytically and in practice, complex.
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30. What is Smart Specialisation ?
‘Knowledge for Growth’ expert group (DG RTD) launched concept
in the framework of ERA;
Problem: fragmentation/imitation/duplication of public R&D
investments;
Stresses role for all regions in the knowledge economy, if they
can identify comparative advantages in specific R &I
domains/clusters (not just winning sectors);
Challenges: Smart specialisation has to embrace the concept of
open innovation, not only investment in (basic) research.
“Most advanced regions invest in the invention of general purpose technologies,
others invest in the co-invention of applications of the generic technology in one or
several important domains of the regional economy”
Dominique Foray 2010
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31. = evidence-based: all assets
= no top-down decision, but
dynamic/entrepreneurial
discovery process inv. key
stakeholders
= global perspective on potential
competitive advantage &
potential for cooperation
= source-in knowledge, &
technologies etc. rather than
re-inventing the wheel
= priority setting in times of scarce
resources
= getting better / excel with
something specific
= focus investments on regional
comparative advantage
= accumulation of critical mass
= not necessarily focus on a single
sector, but cross-fertilisations
What is Smart Specialisation ?
“…The elements of economic productivity – strong infrastructure, a skilled
workforce, and interrelated networks of firms – come together with smart
economic strategy on the regional level to drive prosperity”.
(Guidance on developing place-based policies for the USA FY 2012 Budget)
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32. Entrepreneurial discovery process
Today innovations are rarely the outcome of one ‘entrepreneurial
genius’ming up with an invention:
– Today our understanding of innovation relates to social processes;
– Relies on making combinations between technologies (e.g.
mechatronics and biomedicine) and cross-fertilisation;
– Relies on combining technologies, with new customer services,
design and new business models;
– Relies on the power to organise, network and taking leadership in
this process;
Thus: the entrepreneurial discovery process that has the scale and
impact to affect the region is likely to come from a combination of
entrepreneurial individuals and organisations rather than from
individual entrepreneurs.
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33. Innovation Strategies for Smart Specialisation
An economic transformation agenda based on 4Cs:
1. (Tough) Choices and Critical mass : limited number of priorities on the basis
of own strengths and international specialisation – avoid duplication and
fragmentation in European R&D Area
2. Competitive Advantage: mobilize talent by matching RTD + I capacities and
business needs through an entrepreneurial discovery process
3. Clusters and Connectivity: develop world class clusters and provide arenas
for related variety/cross-sectorial links internally in the region and externally,
which drive specialised technological diversification – match what you have with
what the rest of the world has
4. Collaborative Leadership: efficient innovation systems as a collective
endeavour based on public-private partnership (quadruple helix) – experimental
platform to give voice to un-usual suspects
«Innovation can not be dictated but it can be cultivated »
(The Federal Government and the growth of Regional Innovation Clusters,
J. Sallet et Al, 2009)
34. Why S3?
Making (hard) choices and defining a regional vision: Defining
where regions wants to go in terms of competitiveness through
innovation.
Focusing minds, efforts and (scarce) public resources on the
development of a limited number of thematic or (cross) sectoral
innovation priorities in each region.
Identify factors of competitiveness (critical mass) and bottlenecks,
enabling General Purpose technologies, and concentrate resources
on key priorities.
This is not about picking winners from above but about making sure
efforts are not wasted being too dispersed
Some are already developing these actions: need for review? -
others may wish to adjust and up-date their strategies in light of this
Communication.
The EU to set up a ‘Smart Specialisation Platform’ to provide
assistance and run pilots with interested regions.
“An entrepreneurial and dynamic process of discovery, based on
strategic intelligence, interaction and policy learning” D. Foray
22/06/2017 34
35. How RIS3
Regional innovation strategy focused on competitive advantage and
green growth with strong stakeholder involvement
- Positioning region in global context: International differentiation strategy and
specialised technology diversification.
- Supports the integration and exploitation of all sorts of R&I assets.
- Promotes ‘related variety’ by focusing on cross-sectoral linkages.
- Focus on private R&I investments, SMEs in particular, but include social
innovation.
- Top-down setting of objectives (EU2020, Innovation Union) and bottom-up
processes of entrepreneurial discovery.
- Involving experts, businesses, research centres, universities and other knowledge-
creating institutions and stakeholders.
- Sound SWOT analysis, identification of competitiveness factors, enabling
technologies and concentrating resources on key priorities.
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36. Governance of RIS3
as a collective social endeavour
•Set up a dedicated Steering Group/Knowledge Leadership Group,
a Management Team and Working groups…and flagship projects
•Process needs to be interactive, regionally driven and consensus-
based
•Collaborative leadership: know what, know who and know how.
•New demand-side perspectives given prominence: not just usual
public suspects but businesses in the driving seat
•Embrace social as well as ecological innovation
•Involve boundary spanners brokering new connections across
sectors, disciplines and institutions in order to explore « related-
variety »
•Link national, regional and EU funds: involve stakeholders
operating both outside and in the region.
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37. Research infrastructure/centres of
competence
Smart Guide to Innovation-Based Incubators (IBI) published by DG
REGIO/ENTER based on 25 years of incubation experience in the Union
Business and Innovation Centres for new entrepreneurs and SMEs that
intend to develop innovative ideas.
European Business Network started by the Commission in 1984 and
continuously supported by nearly 15 years: 100 BICs created between 1984 and
1998.
Support services to entrepreneurs, helping them to transform into reality their
innovative business ideas, and the delivery of tailored services to existing
SMEs, aimed at modernising and innovating them.
“To achieve a sustainable social market economy, a smarter greener economy...the EU
needs to provide more attractive framework conditions for innovation and
creativity…we need technical support to promote the incubation and growth of small
innovative firms…”
“22/06/2017
38. RIS3 is a process …
of «entrepreneurial discovery»: involving stakeholders
What do they need?
With whom to
cooperate?
Who are your
customers /
competitors?
Is there critical
mass / excelence?
Clients
Markets
Services
Cooperation (value
chains)
Enterprises
Enterprises
Enterprises
Creativity Talents
Research Knowledge
Technologies
Money
Cohesion
Policy
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39. The race for RIS3: Different starting points
Process for RIS 3
Step 1: Analysis of regional potential for
innovation-driven differentiation
Step 2: RIS 3 design
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,
roadmaps and action plan
Step 6: Integration of
monitoring and evaluation
mechanisms
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40. Step 1 Analysis of Regional /National
potential for innovation
Analysis of the regional context:
A wide view of innovation, not only RTD-oriented
Assess existing regional assets
Identify regional competitive advantages
Detect emerging trends/niches with potential for smart
specialisation
Combine methods: regional profiling; SWOT approach;
surveys
41. Step 2 Governance: Ensuring
participation & ownership
Wide participation of stakeholders of different
types and levels:
Include demand-side perspectives Quadruple Helix
Collaborative leadership
Boundary spanning people/organizations
Dedicated Steering Group/Knowledge Leadership Group,
Management Team, Working groups
42. Step 3 Vision: Elaboration of an
overall vision for the future
Shared vision of the potential of the region
/country and main direction for its international
positioning:
Formulate different scenarios for regional development
Debate and choose where the region want to be in the
future
Produce a positive tension towards strategic goals
Guarantee long-term engagement of stakeholders
Mobilizing power
43. Step 4 Identification of priorities
Decision-making step, where top-down meets
bottom-up:
Focus on a limited number of areas with potential for
smart specialisation as emerged from entrepreneurial
discovery
Areas where the region realistically hope to excel
Horizontal priorities Digital Growth: Key Enabling
Technologies, Digital Agenda for a “connected region”
Avoid capture by interest groups!
44. Step 5 Definition of coherent policy
mixes, roadmaps & action plans
Organizing and detailing rules and tools:
Roadmap composed of:
Action plan target groups, objectives,
timeframes, indicators, sources of funding and
budget allocations
Pilot projects experiment unprecedented policy
mixes, critically reconsider the tools used in the
past, obtain inputs for updating the strategy
45. Step 6 Integration of monitoring &
evaluation mechanisms
Mechanisms integrated in the strategy:
Monitoring to verify the correct and efficient
implementation of activities
Evaluation to verify whether and how strategic goals
are met
Importance of ex-ante setting of measurable targets and
output/outcome indicators
46. Indicator-based specialisation profiles
To develop a standard model for assessing specialisations along the innovation trajectory, by
means of presently available databases:
– Possible indicators:
• Inputs (education, investment in R&D and innovation)
• Outputs (scientific publications, citations and patents)
• Economic activities (employment, value-added, exports);
– Critical points include the choice of the categories (such as
economic sectors, scientific disciplines, technology domains, …) and
the way the different category types can be cross-linked to one
another (e.g. as nodes in an innovation trajectory);
– Focus on the relation between national specialisation profiles for
the participating countries, and regional profiles that can identify
the clusters of specialisation in the case-studies;
– Include cross-border regional profiles;
– Specialisation profiles can be constructed for any administrative
region, going to NUTS 3 level.
46
47. Strategic governance profiles: template
Strategic intent and leadership of dominant actors, such as leading
companies or research institutes;
Priority setting that is taking place (both explicitly and implicitly);
Strategic governance of cluster policies;
Existence of specific governance capabilities (e.g. foresight);
Actions for appropriate framework conditions (including ‘quality of
life’ and “sustainable growth & development” in urban
environments);
Possible legal mechanisms that are deployed in support of cluster
policies;
Policy learning cycles.
…
47
48. Case-studies
One or two case-studies country involving in the project.
Presenting real-life experiences in developing and building smart specialisation strategies in
clusters and at the regional level, each in their specific country setting.
Including different types of strategies:
– Retooling or modernizing existing specialisations with new knowledge inputs
– Transforming existing specialisations into new (smart, inclusive and sustainable) growth
regimes
– Diversification into new specialisations
– Foundation of new specialisations from new knowledge creation
Some specific points of interest:
– Cross-border clusters (functional regions) and international networks of cluster nodes
– Combination of top-down and bottom-up management mechanisms required for
acceleration of economic restructuring towards a new growth regime driven by ‘smart’
specialisations
– Role of flagship companies and institutes to ‘brand’ a region to attract focused
investments
– Alignment between the different levels of regional, national and international
governance
– Role of shared Foresight and the use of early warning technology watch
Framework:
– Cases can be developed according to an ‘smart specialisation strategy matrix’
articulating the regional competence fields (technology platforms) with the global
societal and economic challenges (new markets and value chains)
48
49. The science classification scheme comprises the
following 12 major fields:
A: Agriculture & Environment
Z: Biology
B: Biosciences
R: Biomedical research
I: Clinical & Experimental Medicine I (General & Internal
Medicine)
M: Clinical & Experimental Medicine II (Non-Internal Medicine
Specialties)
N: Neuroscience & Behaviour
C: Chemistry
P: Physics
G: Geosciences & Space Sciences
E: Engineering
H: Mathematics
49
50. Dott.LucianoConsolati
The Four Main Phases
I. Build-up trust
II. System of relations/
connections
III. VISION / Management strategy
IV. Action and Feedback
51. Dott.LucianoConsolati–
The following is the logical course:
Strategies Effective
measures
Actions
study of the opportunities and problems of the concerned area;
identifying priorities, players and method of intervention;
fixing of strategic, clear, attainable and measurable objectives.
52. Typology of strategies
The S3 debate has introduced a typology of
strategies:
– Modernising existing specialisations with new knowledge inputs
– Diversification into new specialisations
– Radical foundation into new specialisations
– Transformation into new growth regimes (systemic innovations)
In practice the distinctions between the categories are permeable.
The strategy types introduced in the S3 discussion mix regional and
sectoral perspectives.
Regions should not choose exclusively for one type of strategy but find
the appropriate balance and adapt their policy mix.
22/06/2017
53. A hypothesis for different roles by strategy type
Type Stakeholders Role of policy
Modernisation Strongly indigenous business
driven strategies
Role for technology centres
Role for sector organisations
Provide ‘traditional’ incentives
Fund applied technology centres, Support
innovation management skills and other
HR measures
Diversification Strongly indigenous business
driven strategies,
Role for wider cluster
organisations
Stimulate cross-fertilisation and
networking, attract foreign investors,
support with market and technology
intelligence, ….
Renewal Strong role for entrepreneurial
innovators
Strong role for entrepreneurial
universities and R&D centres
Launch emerging and multi-disciplinary
technology programmes & centres,
stimulate conditions for start-up and
business growth (eg capital), support with
market and technology intelligence,
support self-organising capacities….
Transition (systemic
innovations)
Needs involvement of actors
across the value chain, needs a
good grasp of potential barriers
across the system
Needs international actors to
ensure dissemination
Bring different stakeholder groups
together, develop more holistic
governance, add a strong policy vision,
act as launching customer & smart
regulator, ensure critical mass through
internationalisation
22/06/2017
54. Is this only for high-tech regions?
Surely not! It provides a strategy and global role for every
regional economy, irrespective of whether they are innovation
leaders, followers or catching-up, whether they are mainly
driven by agriculture, manufacturing or services.
It is not only about research, but also about non-technological
innovation (e.g. services, marketing, organisational
innovation), and about open innovation.
It is also not only about a simple industrial specialisation of a
region X in a particular sector but suggests to specialise in
R&D and innovation to provide new impetus and growth
potential for that sector and also to diversify by focussing on
unlocking growth in complimentary sectors/activities.
22/06/2017 54
55. What if you specialise in the next
declining sector?
decline in regions/countries because they are either
outcompeted or outsmarted by competitors or
because of disruptive innovation that puts their
traditional business model in the bin. In both cases
injecting innovation through smart specialisation
strategies can help avoid this fate.
In addition, one important element of smart
specialisation strategies should be that they help to
alleviate the economic dependence/lock-in of a
region on only a few sectors, as their goal is not only
to help these sectors innovate but to diversify
economic activities, embedding competencies in the
region and supporting success in new markets.
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56. How relevant is this for SMES?
There is not bias in the concept towards big or
small, high-tech or low-tech or towards any
sectors. The key about smart specialisation is
that it is based on a discovery process of new
opportunities in the regions and that it is done
with business for business.
SMES are key for Europe 2020 and EU Regional
Policy and they will have to be targeted through the
right policy mix and instruments (SME support
actions, clusters and centers of expertise, voucher
schemes, etc)
22/06/2017 56
57. Do you have evidence this works?
We know and there is evidence from analysis that
regional innovation strategies deliver employment
and growth for regions. Smart Specialisation is a
relatively new concept, building on and further
improving regional innovation strategies.
And we know that economic specialisation has
increased productivity based on an enhanced
knowledge and skills base in producing goods and
services.
Having said this there are no easy answers.
Innovation is systemic not linear and depends
on multiple variables and interactions. This
means that we have to get a multitude of things
right.
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58. The Place-Based Dimension of Smart
Specialisation
Process of discovery – entrepreneurial search –
involves experimentalism.
Entrepreneurs – firms, universities, inventors,
independent innovators.
Policy is to foster experimentalism, gather and
aggregate decentralised information, and to
promote what has been discovered.
Bottom-up approach and top-down.
22/06/2017
59. The Place-Based Dimension of Smart
Specialisation
- Learning and experimenting.
- Demonstration effects and dissemination.
- Trial and error is fundamental to all
processes of innovation.
- Hard and soft infrastructure.
- Capacity and capabilities.
- Incentives .
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60. The Place-Based Dimension of Smart
Specialisation
Smart Specialisation elements:
- Entrepreneurial search processes; -
Relevant domains;
- Connectedness
In a regional context this translates to:
- Embeddedness;
- Related variety;
- Connectivity.
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61. The Place-Based Dimension of Smart
Specialisation
Embeddedness: can be captured by regional
models, regional Input-Output models,
location quotients, case studies, longevity,
social capital etc.
Relatedness: It is not about specialisation
but diversification – specialised technological
diversification
Embeddedness + Relatedness =
Relevant Size Domain
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62. The Place-Based Dimension of Smart
Specialisation
Equally applicable to all dimensions of
Europe2020.
An integrated place-based approach is multi-
dimensional, tailored to place-specific
features and outcomes.
Innovation strategy – knowledge and
knowledge-application dimensions.
Environmental and energy dimensions.
Social and territorial inclusion dimensions.
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63. The Place-Based Dimension of Smart
Specialisation
Hypothetical Example 1:
Region A is a knowledge region, is primarily
urban in nature but is also situated on the coast,
and faces population growth and population
inflows.
Hypothetical Example 2:
Region B is an industrial production region, an
urban-coastal area, and a region which faces
population decline and population outflows.
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64. The Place-Based Dimension of Smart
Specialisation
Hypothetical Example 3:
Region C is a non-S&T-driven lagging region,
primarily urban region, and a region which faces
population decline and population outflows.
Hypothetical Example 4:
Region D is a rural area, a non-S&T-driven
region, which faces population growth and
population inflows.
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65. The Place-Based Dimension of Smart
Specialisation
Region A (knowledge region) Challenges:
transport and land-use congestion, social and
territorial segregation; environmental damage
including marine ecosystem.
Region A Opportunities and place-based policy
priorities:
multi-sectoral smart specialisation knowledge-
enhancing projects in advanced R&D sectors;
integrated infrastructure, environmental services;
housing and public transport provision.
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66. The Place-Based Dimension of Smart
Specialisation
Region B(industrial production region)
Challenges:
declining transport and land-use usage,
dereliction, non-operative real estate markets,
skills outflows, declining credit availability,
widespread reductions in social and territorial
cohesion; environmental damage including
marine ecosystem.
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67. The Place-Based Dimension of Smart
Specialisation
Region B Opportunities and place-based policy
priorities:
smart specialisation policies targeted both at high
and medium technology sectors and based on
specialised technological diversification strategies in
major embedded occupational and technological
classes.
local labour skills-enhancing programmes in related
technologies.
integrated land use reclamation and conversion
programmes.
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68. The Place-Based Dimension of Smart
Specialisation
Region C (non-S&T-driven lagging region)
Challenges: declining transport and land-use usage,
dereliction, non-operative real estate markets, skills
outflows, declining credit availability, widespread
reductions in social and territorial cohesion;
environmental damage including marine ecosystem
Region C Opportunities and place-based policy
priorities: smart specialisation policies based
focused on medium technology sectors; local labour
skills-enhancing programmes in related
technologies; integrated land use reclamation and
conversion programmes
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69. The Place-Based Dimension of Smart
Specialisation
Region D (rural area) Challenges: pressure on
local resources and land use; social and
territorial segregation; economic and geographic
isolation.
Region D Opportunities and place-based policy
priorities: smart specialisation policies based on
communications infrastructure; preservation and
upgrading of heritage and cultural assets; related
skills enhancement policies focused on tourism
and natural environmental arenas; renewable
energy policies; social and territorial cohesion
focused on integrated land use development and
public transport planning.
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70. The Place-Based Dimension of Smart
Specialisation
Smart specialisation emphasises strategic and
specialised diversification:
- a excellent tool for place-based policy
- promotes clear self-awareness of the key
bottlenecks and missing links
- powerful lens through which to ensure
thematic prioritisation and concentration
- engagement and institutional learning.
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71. The Place-Based Dimension of Smart
Specialisation
Need to avoid scattered sectoral rent-
seeking.
Smart specialisation is not just about
smart growth – but all aspects of growth
and development being smart.
Need to focus on integrated Europe2020
strategies.
Need to consider skills, opportunities,
environment, knowledge, institutions,
stakeholders, capabilities, sustainability.
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72. The Place-Based Dimension of Smart
Specialisation
- Consistent with the place-based approach.
- Appropriate and powerful for all regions.
- Tailoring medium-tech as well as hi-tech.
- Results/Outcome indicators are critical.
- Ex ante goals and ongoing monitoring and
evaluation.
- Awareness, belief and engagement.
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73. The Future of European Transnational Programmes
The future: Commission position
The future: SEE Programme
Questions and Answers
“20 years after the beginning of INTERREG and
European Territorial Co-operation this objective
has lost none of its importance. On the contrary,
the global financial and economic crisis clearly
showed that we need to step up our efforts to
overcome structural deficits and to work better
across national, regional and local borders”
74. Commission Position
proposed regulations (June/Oct 2011)
-integration of cooperation in overall strategic;
- thematic concentration (limited no. of thematic
objectives (4/11))
- support for development & implementation of Macro
Regional Strategies;
- increased budget proposed;
- synergies between programmes to be promoted
performance framework;
- simplification incl. greater harmonisation of rules; audit
- specific rules for the application of State Aid
coverage of regions both inside and outside EU
75. Territorial Cooperation
2007-2013 2014-2020
(proposal only)
Crossborder
Cooperation
5.6 Billion
Euro
8.6 Billion
Euro
Transnational
Cooperation
1.8 Billion
Euro
2.4 Billion
Euro
Interregional
Cooperation
445 Million
Euro
700 Million
Euro
76. Commission Position
proposed regulations (themes)
1. Strengthening research, technological development and innovation
2. Enhancing access to, and use and quality of, information and
communication technologies
3. Enhancing the competitiveness of small and medium-sized
enterprises, the agricultural sector (for the EAFRD) and the fisheries
and aquaculture sector (for the EMFF)
4. Supporting the shift towards a low-carbon economy in all sectors
5. Promoting climate change adaptation, and management
6. Protecting the environment and promoting resource efficiency
7. Promoting sustainable transport and removing bottlenecks in key
network infrastructures
8. Promoting employment and supporting labour mobility
9. Promoting social inclusion and combating poverty
10. Investing in education, skills and lifelong learning
11. Enhancing institutional capacity and an efficient public
administration
77. Themes/Investment Priorities
Regulation proposals
Priority Axis 1 Facilitation of innovation and entrepreneurship
Strengthening research,
technological development
and
innovation (Theme 1)
Enhancing research and innovation
infrastructure
(R&I) and capacities to develop R&I excellence
and promoting centres of competence, in
particular those of European interest
Promoting business R&I investment, product
and service development, technology
transfer, social innovation and public
service applications, demand stimulation,
networking, clusters and open innovation
through smart specialization
Supporting technological and applied research,
pilot lines, early product validation actions,
advanced manufacturing capabilities and
first production in Key Enabling
Technologies and diffusion of general
purpose technologies .
78. Themes/Investment Priorities
Regulation proposals
Priority Axis 1 Facilitation of innovation and entrepreneurship
Enhancing the
competitiveness
of SMEs (Theme 3)
Promoting entrepreneurship, in particular by
facilitating the economic exploitation of new
ideas and fostering the creation of new
firms.
Developing new business models for SMEs, in
particular for internationalization
Promoting the production and distribution of
renewable energy sources
79. Specific Theme
Consideration
Innovation Union
-Common Strategic Agenda
Smart Specialisation
-efficient, effective and synergetic use of public investments
Macro Regional Strategies
- e.g. Danube Region
European Institute for Innovation &Technology
-integrated Knowledge Innovation Communities
-Public Private Partnership
80. EU Member States:
Austria, Bulgaria,
Greece, Hungary, Italy,
Slovakia, Slovenia,
Romania
Non-EU-member
States:
Albania, Bosnia-
Herzegovina, Croatia,
former Yugoslav
Republic of Macedonia,
Serbia, Montenegro,
Republic of Moldova,
Ukraine
(Italy and Ukraine do
not participate with its
whole territory)
The SEE Programme
81. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH:
CROATIA (The World bank April 2012)
FISCAL CONSOLIDATION IS AN URGENT PRIORITY
Past pro-cyclical fiscal policy, credit and domestic demand driven growth
model as well as limited progress in improving competitiveness built
large macroeconomic imbalances and have left behind limited policy
options available to deal with the current situation. Owing to past
current account deficits that averaged 6 percent of GDP, external debt
that equaled the GDP, and significant exposures to interest and exchange
rate risks, market confidence in Croatia deteriorated sharply in 2008 as
the crisis broke. In two subsequent years real GDP fell by over 7 percent,
led by large drops in investment and private consumption. Revenue
losses and inflexible spending structures widened the general
government deficit to above 5 percent of GDP with public debt,
including the stock of government guarantees, widening to 60 percent
of GDP.
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82. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
INCOMPLETE REFORM AGENDA NEEDS ATTENTION AND ACTION
While fiscal consolidation is imperative today, it must be done in ways
which will safeguard and support future growth. It is possible to
safeguard recovery by shoring-up fiscal sustainability and creating fiscal
space to support private sector-led growth and build fiscal buffers
against future shocks. Fiscal policy should focus on delivering savings
over the near to medium term and creating as much space as possible
for growth-enhancing expenditure. These efforts need to be
complemented by policies that both lift and shift growth: support the
creation of new jobs; capture the potential of sustainable and green
growth; and stimulate the private sector to innovate and create new
technologies
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83. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
Accelerating economic recovery in Croatia will require completing the
unfinished structural reform agenda and shifting to productivity-based,
private-sector-led growth.
Croatia‘s economic and social achievements before the global crisis
looked remarkable: high and sustained economic growth combined with
a decline in the population resulted in an increase in per capita income
from 1994 through 2008. However, that was mainly achieved through the
expansion of aggregate demand, including fiscal deficits, and of the non-
tradable sector (particularly real estate). The result was large current
account deficits and excessive dependence on foreign savings, even as
investors were becoming more risk-averse and financial resources
scarcer. Moreover, this growth did not reach the most vulnerable: at the
onset of the 2008 crisis, Croatia‘s poverty rate was still stubbornly high at
11 percent.
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84. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
Reducing the role of the state, which remains large, and thereby
creating space and an enabling environment for the private sector are
urgent priorities to facilitate recovery and growth. Improving the
investment climate by cutting red tape and strengthening the rule of
law would attract new entrepreneurs and foreign direct investment
(FDI), bring in new ideas, technology, and know-how and open new
export markets. Past government policies, visible in soft-budget constraints and high
subsidization (at 2.4 percent of GDP in 2010, the level of subsidies in Croatia is double the
EU15 average and three times the EU10 average.), limit enterprise restructuring and new
business initiatives. There are still over 800 companies in state ownership, of which many
could attract private interest and needed investments for modernization and growth. World
Economic Forum data suggest that Croatia is far behind the rest of Europe with respect to
knowledge-based development. The government can further reform product market
regulation; remove administrative barriers for investments; reduce the logistics costs in
trade; make the bankruptcy process more efficient; and modernize contract enforcement
and property rights. Unleashing the large untapped potential in the fragmented, mostly
public, research institutions, which are not doing enough to connect with markets and
commercialize their work, could also help close the gap between Croatia and EU
competitors in private sector productivity.
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85. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
Labor market reforms combined with education and social sector
reforms to increase flexicurity and address skill mismatches, should aim
to raise the labor force participation rate, currently among the lowest
in Europe.
The labor market needs to become more flexible to support employment
growth (currently at low 59 percent compared to the Europe 2020
Strategy target of 75 percent) and labor force participation, which is
particularly low among older workers, prime age men (25–54) and youth.
However, labor market reforms alone will not be enough to improve
employment outcomes. There must also be reforms of the social
protection system to incentivize work, and of the educational system to
make it more responsive to changing labor market demand, including
increasing the number of well-trained skills-appropriate graduates, which
in turn will require that education finance be addressed .
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86. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
Given the sluggish economy, making social safety nets more effective,
that is better targeted and focused on ―needs‖ and not ―entitlement‖
within a responsible fiscal framework, is an urgent task. Croatia as
noted spends much more on health and social protection than many
other countries in Europe. The share of categorical benefits and entitlements
– distributed according to the person‘s attributes rather than their income level –
is very high and the share of poverty-focused programs much lower. Rebalancing
this mix within social spending would not only contribute to fiscal consolidation
but encourage higher labor force participation. The level and quality of social
services currently fall short of what many Croatians would desire. However, this
is combined with costly social insurance programs, which reduce labor
competitiveness. Financial problems in pension and health systems weigh heavily
on the national deficit and present growing concerns as the population ages. As
the elderly population increases in Croatia, pressures will only increase.
Therefore, reform of the health system, including further hospital rationalization,
and deepened pension reforms to safeguard their adequacy will be critical
challenges.
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87. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
To start collecting dividends from its geographical position as a gateway
to Europe and to facilitate private sector growth, a careful prioritization
of investment is needed. To build on its unique potential to become a
regional logistics and distribution hub, Croatia would have to
modernize core infrastructure (railways, energy, and information
technology). Resources for renewing the railway infrastructure would need to
be found in improved operational and financial performance of the national
railway companies, including the appropriate setting of track access charge.
Croatia will have to make considerable and sustainable efforts to comply with the
EU environmental and climate change/energy acquis, which means that it should
rethink the financing model to incorporate more private participation and more
efficiently absorb EU funds. These investments would need to be supported by
utility sector governance reforms to reduce fragmentation and exploit economies
of scale. Although agriculture is vital for economic development, its large
environmental footprint should be reduced, farming systems made less
vulnerable to climate change, and agriculture harnessed to deliver more
environmental services.
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88. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE
GROWTH: CROATIA (The World bank April 2012)
MAXIMIZING THE BENEFITS OF EU MEMBERSHIP
Beyond ensuring macro stability and achieving smart, sustainable and
inclusive growth to raise Croatia’s competitiveness in the EU, the
Government faces the strategic challenge of maximizing the use of EU
Structural Funds.
Recent events in the eurozone suggest that access to a large market and the
political stability factor that EU accession implies, while crucial, are not sufficient
to raise country competitiveness by itself. EU membership generates both
opportunities and challenges, one of the latter being creation of a competitive
private sector. To take advantage of a large market, structural changes in social
sectors, education and the business climate are urgently needed. These
measures are all aligned with the Europe 2020 Agenda for Smart, Sustainable
and Inclusive Growth that Croatia will have to comply with after the accession.
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89. STRATEGY FOR SMART, SUSTAINABLE AND INCLUSIVE GROWTH:
CROATIA (The World bank April 2012)
A major priority for the coming two to three years will be to create
fiscal space to absorb EU funds and avoid being a net contributor to the
EU. Upon accession, the EU Structural and Cohesion funds available to
Croatia will exceed €1.5 billion a year.
At the same time, Croatia will also be obliged to contribute about €680 million
annually to the EU budget. A number of new member states have found it a
challenge to access and absorb EU funds effectively and efficiently. This requires
a lot of preparatory work to get projects ready now for the time when EU
Structural and Cohesion Funds can be accessed, as they represent a huge
increase over pre-accession funds and a great opportunity to address Croatia‘s
needs in transport and environment, as well as in innovation and modernization
of production.
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90. .
Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
Instead of conclusions: some remarks
The short overview of the policy measures for supporting research
innovation and entrepreneurship reveals that Croatia has a rather
complex NIS that consists of various institutions, programmes and
actions. However, it also reveals that the government prefers horizontal
and generic policy measures and state aid programmes while the
sectoral approach and support of the selected technology or research
areas are rather neglected. The entire strategy of economic and
technological development remains rather undefined and vague,
illustrating that political and economic elites have not yet succeeded in
defining priority areas and sectors that could be key drivers of progress.
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91. Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
A significant part of the goods and services that will be available in the
market in 2020 are as yet unknown, but the main driving force behind
their development will be the deployment of key enabling technologies
(KETs). Nations and regions mastering these technologies will be at the
forefront of managing the shift to a low carbon, knowledge-based
economy, which is a precondition for ensuring welfare, prosperity and
security of their citizens. Hence the deployment of KETs in the EU is not
only of strategic importance but is indispensible (EU, 2009).
Given these globalised processes, political and economic elites should
think about what Croatia and its regions are ‘good at producing’ and
which sectors could be the engines of growth. The simple imitation and
copying of the European strategic papers and action plans is not
sufficient for national development.
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92. Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
Priority interest could include various sectors that are similar to other EU
countries such as biotechnology (genomics, molecular biology,
nanobiotechnology, and bioinformatics), nanotechnology (new
materials, nanoelectronics including semiconductors), energy (new
sources of energy),water technologies and waste treatment, agriculture
and food, ICT and tourism. However, in the majority of these areas
Croatia should find specific niches of application of advanced
technologies coming from frontier research while innovation
breakthroughs are possible in a rather small portion. Yet, it would be
useful to decide which of those areas should be prioritised as the
engine of technological development and economic growth at least on
the regional level. Regional development supported by the pre-
structural funds (IPA) provides an excellent window of opportunity.
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93. Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
Smart specialisation can be understood as a new policy instrument that
can support this process.
Smart specialisation appears as a useful tool for Croatia to overcome the
current bundle of mainly horizontal policy measures that are usually not
only disconnected but also stand in mutual competition and can
sometimes create rivalries among the public institutions and
programmes and lead to a lack of synergy and
efficiency of public policies, undecided and hesitating development
strategies resulting in low impact on fostering technological
transformation and economic growth.
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94. Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
However, there are many obstacles to the process of smart
specialisation in technology follower countries like Croatia.
The principal one arises from the lack of interactions between
technology, institutions and social factors that commonly shape priorities
and specialisations through the mutual co-evolution process. Since
entrepreneurs, not public administration, should be the key players of
smart specialisation, it is extremely difficult to design and implement an
appropriate institutional framework and public policy supporting
programmes. From the theoretical point of view it is clear that
government should only encourage entrepreneurs to find their own way
of growth and provide general support like education and research.
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95. Smart specialisation: some considerations of the
Croatian practice
Emira Bečić*Jadranka Švarc
The right question for countries like Croatia with high unemployment,
underdeveloped markets and obsolete technology competences is: are
the entrepreneurs able to recognise the prospective areas of their
specialisation? Some recent examples like resistance to changes
in some declining industries such as shipyards or extremely slow
restructuring of the whole economy give rise to some serious doubts
about realistic self-positioning. On the other hand, the complex
government policies mainly oriented towards science and technology
presented in the paper have also not produced the hoped-for
transformation. Therefore, it seems reasonable to conclude that only
entrepreneurs and companies are the agents of change. They should
take a lead in future development through their institutional set-ups and
associations while smart specialisation would occur, very probably, as the
natural way of catching-up. The key to economic development is in their
hands, while government actions could produce results only by
complementing the initiatives of the private sector.
2008–22/06/2017