Alpine Cluster Innovation Express (ACIE) · entrepreneurial discovery process. S3-Synergy Diamonds...

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S3-4AlpClusters is cofinanced by the

European Regional Development Fund through the Interreg Alpine Space programme

S3-4AlpClusters is cofinanced by the European Regional Development Fund through the Interreg Alpine Space programme

Alpine Cluster Innovation Express (ACIE) Proposal for a Cross-regional Scheme to Support the Development of Transformative Activities in the Alpine Space

Gerd Meier zu Köcker, Mateja Dermastia, Michael Keller, Jacques Bersier

December 2018

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This report was produced within the framework of the S3-4AlpClusters project (output O.T1.2) funded by the Alpine Space INTERREG Programme of the European Commission. It was prepared by Dr. Gerd Meier zu Köcker (ClusterAgentur BW), Mateja Dermastia (Anteja ECG – Poly4emi), Michael Keller and Jacques Bersier (both University of Applied Sciences of Western Switzerland, School of Engineering and Architecture of Fribourg).

Disclaimer

The information and views set out in this Proposal are those of the authors and do not necessarily reflect the official opinion of the European Commission or the respective regions of the project partners. Neither the European Commission institutions and bodies nor any person acting on their behalf may be held responsible for the use that may be made of the information contained therein. Reproduction is authorised, provided the source is acknowledged, unless otherwise stated. Permission must be obtained for use or reproduction of third party copyrighted material which is specified as such.

The information in this report is provided without assuming any legal responsibility for correctness or completeness. The data presented in the report are based on the information given by the project partners and other sources cited.

For further information about the S3-4AlpClusters project, you will find a short description at the end of the document. To learn more and to download additional resources please refer to the project website http://www.alpine-space.eu/projects/s3-4alpclusters/en/home.

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Cross-regional Development of Transformative Activities The idea of transformative activities (TA) has been inherent in the concept of S3 since the latter was first formalised in 2009 by Foray et al. The practical experience with S3-implementation in European regions in recent years put a spotlight on the importance to focus the S3 process on TA (see Keller et al., 2018). Foray et al. (2018) note that “S3 should be understood as a process aimed at transforming the economic structures of a region or any other geographical unit through the formation and development of new activities based on a combination of existing capacities on the one hand and opportunities for structural transformations on the other” (p.3). The focus of S3 should not be on “sectors but on modes of transformation of sectors or of establishing new ones”. The outcome of the S3 process should neither be “an individual project nor a sector as a whole”, but a transformative activity (TA), understood as a “collection of innovation capacities and actions, that have been extracted from an existing structure or several structures, to which can be added extra-regional capacities and that is oriented towards a certain structural change” (Foray et al. 2018, p. 1). Extra-regional capacities are per definition included in the development of TA, which makes cross-regional cooperation for the assessment of complementarities and critical mass imperative in S3-implementation. The regions of the Alpine Space share similar capacities to address transformative opportunities. The development of TA to tap into these synergies across the Alpine Space and unearth opportunities for innovation and new value chains (VC) critically depends on cross-regional and cross-sectoral cooperation. As noted by Keller et al. (2018), “the focus on related broad priority areas across Alpine Space regions […] represents an untapped potential and common ground to jointly tackle Alpine Space related challenges (ranging from issues such as economic globalisation over demographic change to energy) through the development of cross-regional activities.

Regrettably, the analysis conducted within the S3-4AlpClusters project revealed a quasi-total absence of cross-regional cooperation to exploit such synergy potentials within the Alpine Space. Indeed, the business environments and framework conditions for cross-regional cooperation tend to be weak, poorly aligned between regions and completely lacking focus on need-based cooperation (see Meier zu Köcker and Dermastia, 2017 and Meier zu Köcker et al., 2017). A need-based approach to cross-regional cooperation would be particularly [but not exclusively] vital for regions that are too small to implement structural transformation on their own. Tapping into external capacities and bundling regional competences would allow them to generate necessary critical mass, especially for resources confronted with economies of scope, scale and indivisibilities. Opportunities for transformation are often present at the intersection between different existing traditional industries. Regions lacking a strong and broad industrial base crucially depend on need-based cooperation to succeed in gaining sufficient critical mass to implement S3 (see Meier zu Köcker et al., 2017) (p.6).”

Addressing cross-regional Cooperation through the S3-Innovation Model The S3-4AlpClusters project aims at enhancing smart industrial transition in the regions of the Alpine Space by facilitating innovation through cluster initiatives with special attention paid to

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initiating interregional cooperation. Its main output is the S3-Innovation Model1, which introduces a systematic process for the identification and development of transformative activities both within and across regions. It offers a set of tools for cluster initiatives and regions to explore capacities and opportunities for transformation and to develop actions to create critical mass in innovative new fields (see figure 1). The S3-Innovation Model includes dedicated tools for the development of transformative activities based on need-based cross-regional cooperation. The S3-Innovation Model is at the core of a Cluster Action Plan, published on the project website2 and describing the process and tools necessary to put the Model into practice.

Figure 1: The S3-Innovation Model

Source: S3-4AlpClusters

The process starts with the generation of a comprehensive base of evidence to guide the entrepreneurial discovery process. S3-Synergy Diamonds are a dedicated tool representing existing regional S3 priority areas and capacities in a way that facilitates the identification of transformative activities and captures opportunities for need-based interregional collaboration (see Meier zu Köcker et al., 2017). Synergies in regional S3 were identified and represented in four specific S3-synergy diamonds (figure 2) targeting opportunities for cross-regional transformative activities related to major common challenges for the alpine macro-region, as outlined in the EU Strategy for the Alpine Region (EUSALP).

Based on the generated evidence, transformative activities are properly identified in Entrepreneurial Discovery Workshops (EDW) based on a reflection about existing capacities on the one hand and opportunities represented by new technologies and challenges that can support and drive the process of structural transformation on the other3. This includes an assessment of existing critical mass and detecting and specifying needs for cross-regional cooperation. Cross-regional Entrepreneurial Discovery Workshops (cEDW) then propose a methodology allowing to identify complementary competences and needs from several regions 1 Download the policy memo on the S3-Innovation Model here: http://www.alpine-space.eu/projects/s3-4alpclusters/project-results/policy-memo_s3-innovation-model.pdf

2 Download: http://www.alpine-space.eu/projects/s3-4alpclusters/project-results/5-cluster-action-plan.pdf

3 For additional information on the EDW methodology see Foray et al. (2018). Foray, D., Keller, M., Bersier, J. and Meier zu Koecker, G. (2018). Transformative Activities for Smart Specialisation: Considerations on a Workshop Methodology. Working Paper EPFL, HES-SO HEIA-FR, ClusterAgentur. Download: https://www.innosquare.com/media/1205/foray-keller-bersier-and-meier-zu-koecker-2018.pdf.

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and to identify transformative activities that can be developed cross-regionally. The Cluster Action Plan (Meier zu Köcker et al., 2018) documents how to implement EDW cross-regionally by using the S3-synergy diamonds as a basis for jointly identifying “similar transformative activities which are of relevance to several regions” (p.14).

Figure 2: S3-Synergy Diamonds for the Alpine Space Macro-Region

Note: BAV: Bavaria, BW: Baden-Württemberg, FC: Franche-Comté, FR: Canton of Fribourg, LOM: Lombardy, PIE: Piedmont, S: Salzburg, SLO:

Slovenia, TN: Trentino, UA: Upper Austria, VEN: Veneto

Source: Keller et al., 2018.

Next in the process, Action Development Workshops (ADW) allow working out concrete actions - such as R&D projects, networking, cooperation schemes or development of critical skills – in order to gain critical mass for the identified transformative activities, both regionally and cross-regionally (cADW) 4 . The developed actions are then executed within and across regions, supported by cluster initiatives. Since both the identified transformative activities and the concrete developed actions are unknown ex ante, the S3-Innovation Model includes a broad set of best practices of cluster services covering transversal fields such as education, technology, growth, research or collaboration to support the implementation of transformative activities (see Antonioni et al., 2018).5 4 See Footnote 3 for additional information on the workshop methodology.

5 Available for download on the project website: http://www.alpine-space.eu/projects/s3-4alpclusters/en/project-results/work-package-results/t2-s3-model-based-definition-for-cluster-innovation.

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Since its start in November 2016, the S3-4AlpClusters project served as a testbed for the systematic identification and development of transformative activities (TA), as sketched out in the S3-Innovation Model. 30 pilot clusters from 11 regions of the Alpine Space are currently involved in these pilot activities. A particular focus was put on implementing the process cross-regionally. The pilot experiences will be documented in a dedicated report published on the project website until the end of 2018.6 The experience from the S3-4AlpClusters project emphasizes the difficulty to actually implement actions for the development of TA on a cross-regional basis. Neither between the regions from different European countries, nor between different regions within individual countries did the actors involved in the S3-Innovation model estimate the existing funding schemes to be sufficient to support the developed cross-regional actions for new transformative activities. This finding is in line with Meier zu Köcker and Dermastia (2017) asserting that “aligning S3 and related policy instruments among neighboring regions is still a challenge” (p.24) and Meier zu Köcker et al. (2017) lamenting the absence of “dedicated support schemes” synchronized across regions for the development of cross-regional TA (p. 27). Multi-national governance structures for focused cooperation in S3-implementation are critically missing. There is a persistent funding gap for cross-regional RDI projects, targeting specific transformation opportunities of particular relevance for Alpine Regions and including the relevant actors of new VCs, from research to market (see Dermastia, forthcoming). Therefore, the S3-Innovation Model includes a proposal for an Alpine Cluster Innovation Express (ACIE) as an interregional cooperation scheme aiming at synchronizing existing funds from several regions who intend to support the development of the same transformative activities in a cross-regional effort.

Closing the Funding Gap - Alpine Cluster Innovation Express (ACIE) There are several programmes that support actors from Alpine Regions in cross-regional cooperation according to different modalities. Figure 3 groups these different modalities according to the extent to which regions can influence the scope of cross-border calls and number of different Alpine Regions (and related actors) able to cooperate within projects funded under a given call (see Dermastia, forthcoming). Cross-sectoral transformation processes depend on critical mass of actors and investments in innovation, which would significantly benefit from better cross-regional cooperation. Analysis and recent experience show that multi-national governance structures for focused cooperation in S3-implementation are critically missing (upper right quadrant in figure 3). There is a persistent funding gap which would allow actors from several Alpine regions to explore transformative activities identified in the Alpine Region context (Dermastia, forthcoming). There is no single instrument for cross-regional RDI projects, targeting specific transformation opportunities of particular relevance for Alpine Space regions. 6 Information on selected examples is also published in: Keller, M., Reingruber, I., Dermastia, M., Bersier, J. and Meier zu Koecker, G. (2018). Smart Specialization Strategies (S3) and Clusters – An Innovation Model for Transformative Activities. Full Paper for the Austrian EU Council Presidency Conference on “Impact of Research and Innovation Policy at the Crossroads of Policy Design, Implementation and Evaluation”. Download: https://www.innosquare.com/media/1214/s3-4alp-working-paper.pdf.

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Figure 3: The funding gap for cross-regional cooperation within the Alpine Region

Source: Dermastia, M. (Forthcoming). Study to prepare a Synchronised Funding Scheme for Bioeconomy Development in the Alpine Region, Ministry for Economic Affairs, Labour and Housing. Regions in the Alpine Space do not have necessary possibilities to influence current call programme designs and scopes. There is no modality currently in place where a group of Alpine Regions can decide to particularly support transformative activities between common AS priority areas across regions. To overcome this obstacle, the Alpine Cluster Innovation Express (ACIE) proposes a synchronization of already existing regional RDI calls into a cross-regional funding scheme to support the cross-regional development of transformative activities, leading to hands-on innovative projects covering entire new value chains from research (academia) to market (enterprises including SMEs). This would allow Alpine Regions to tap into external capacities and bundle regional competences to generate the necessary critical mass for transformative activities across the Alpine Region. Specific objectives, methodological approach and target groups of the proposed ACIE funding scheme are presented below. A draft ACIE Call is enclosed in the appendix. ACIE - Objectives: ACIE is a common funding scheme approach implemented by several regions aiming to support the development of the same transformative activities. Facilitating collaboration across-regions helps to gain critical mass to develop transformative activities by demand-driven collaboration across regions. Focus is placed on cross-border learning, competence development and innovation creation. Bundling different competencies from cluster actors from participating regions provides good framework conditions for cross-regional innovations. To allow for need-based collaboration and focus on transformative activities addressing common AS opportunities related to major challenges for the alpine macro-region, as outlined in the EU Strategy for the Alpine Region (EUSALP), ACIE calls should address transformative activities identified based on the specific S3-Synergy Diamonds, as proposed in the S3-Innovation Model (see figures 1 and 2 above). Figure 4 illustrates how ACIE calls relate to S3-Synergy Diamonds based on the example of the S3-Synergy Diamonds addressing demographic trends.

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Figure 4: ACIE calls targeting the S3-Synergy Diamond related to Demographic Change

Source: Dermastia, M. (Forthcoming). Based on S3-4AlpClusters ACIE - Methodological approach: ACIE calls are funded by already existing regional programs whose calls are synchronized accordingly. This means that there is no need to provide additional funding but rather to synchronize existing programs and calls. It is designed to support collaborative projects among several partners, all of whom apply according to their “home” funding role. The ACIE scheme has the significant advantage that funding does not cross any borders nor do any regional application procedures need to be changed. Due to the fact that already existing programs are involved, the ACIE scheme does not require additional money. By synchronizing existing programs, the calls that are directed at similar targets allow for an increase in the critical mass and a bundling of complementary regional competences. Thus, the targets can be reached faster and more efficiently than if different regions would each try to succeed separately. The focus of specific ACIE calls is placed on further developing transformative activities, which are high priorities for all the participating regions (see S3-Synergy Diamonds in figures 2 and 4 above). ACIE applications are evaluated based on the selection criteria set forth in specific ACIE calls along with criteria from regional/national funding organizations.

References Antonioni, S., Mion, L., Keller, M. and Bersier, J. (2018). Good Practice Report. Interreg Alpine Space – S3- 4AlpClusters. https://bit.ly/2PlGRtW. Dermastia, M. (Forthcoming). Study to prepare a Synchronised Funding Scheme for Bioeconomy Development in the Alpine Region, Ministry for Economic Affairs, Labour and Housing. Foray, D., Keller, M., Bersier, J. and Meier zu Köcker, G. (2018). Transformative Activities for Smart Specialisation: Considerations on a Workshop Methodology. Working paper EPFL / HES-SO HEIA-FR / ClusterAgentur. https://bit.ly/2yuTEAX.

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Keller, M., Reingruber, I., Dermastia, M., Bersier, J. and Meier zu Koecker, G. (2018). Smart Specialization Strategies (S3) and Clusters – An Innovation Model for Transformative Activities. Full Paper for the Austrian EU Council Presidency Conference on “Impact of Research and Innovation Policy at the Crossroads of Policy Design, Implementation and Evaluation”. Download: https://www.innosquare.com/media/1214/s3-4alp-working-paper.pdf. Meier zu Köcker, G., Keller, M., Dermastia, M. and Bersier, J. (2018). Cluster Action Plan: Transformative Activities for Regional Development. Interreg Alpine Space – S3-4AlpClusters. https://bit.ly/2EFqwMP. Meier zu Köcker, G. and Dermastia, M. (2017). StressTesting Regional Approaches Conducive to Implement S3 through Clusters. Interreg Alpine Space – S3-4AlpClusters. https://bit.ly/2ApFGl5. Meier zu Köcker, G., Dermastia, M. and Keller, M. (2017). Strategic Alpine Space Areas for Cross-regional Cooperation. Interreg Alpine Space – S3-4AlpClusters. https://bit.ly/2OIBgi2.

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Appendix: ACIE Draft Call

This document does not represent a real call, but presents the core outlines and elements of a potential call targeting transformative activities related to demographic change. By purpose, specific information, which can only be provided in the frame of a specific call, have been left out (see yellow marked parts of the document). The current document is intended for programme owners and shall contribute to

a better understanding of how a Joint ACIE Call might look like.

1. Introduction The ACIE Call scheme is a joint undertaking of the participating regions to bundle forces and synchronise existing strategies and programmes. The present ACIE Call aims to support innovation and transformative activities which emerge between Health applications, New materials, Digital industries and Food production. All of them can contribute to cope with one of the prevailing challenges of the Alpine Region, which is Demographic Change. As shown in the S3 Synergy Diamond below, most Alpine Regions tackle parts of it in their S3, but a systematic approach can only be implemented cross-regionally.

Prevailing Priority Areas and related Transformative Activities in the Alpine Region7

2. What is ACIE? The Alpine Cluster Innovation Express (ACIE) is a common Alpine Regional approach for supporting the implementation of S3 through cluster initiatives within the Alpine Region. The ACIE aims at facilitating cross-regional cooperation between cluster initiatives and related SMEs. Focus is given on cross-border learrning, competence development and innovation creation. Bundling different competencies from cluster actors from participating Alpine Regions provides good framework conditions for cross-regional innovations.

ACIE has been prepared within the framework of the S3-4AlpCluster-Project fully in line with the EUSALP (EU Strategy for the Alpine Region). ACIE is funded by national/regional programme owners (ACIE partners) to initiate, support or enhance cross-regional cluster cooperation activities to stimulate cross-regional innovations among their SME members. Applications will be

7 Meier zu Köcker, G., Dermastia, M. and Keller, M. (2017). Strategic Alpine Space Areas for Cross-regional Cooperation. S3-4AlpClusters

Report. doi:10.23776/001

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evaluated based on the selection criteria set in the ACIE along with criteria from regional/national funding organisations.

3. Scope and opening of the ACIE call Focus of this ACIE Call is on innovative ideas and related transformative activities which (1) are pivotal part of all regional S3 in the Alpine Space, (2) have a cross-regional dimension, (3) cannot sufficiently be covered by one region alone and (4) have a cross-sectorial character by addressing at least two of the following Priority Areas of

• Health Application

• ICT / Digital Industries

• New Materials

• Agrofood

ACIE partners will support proposals submitted by groups of cluster organisations and/or similar networks located in their geographical area and addressing cross-sectoral and cross-regional cooperation activities as defined above that benefit their cluster/network members.

A broad variety of innovation activities can be funded:

A. Thematic workshops (focus on transformative cross-regional activities)

B. Cross-Regional Entrepreneurial Development Workshops (EDW)

C. Networking activities

D. End market potential analysis

E. Roadmapping activities (technology, markets, society, regulations)

F. Mapping of Emerging cross-regional value chains

G. Training/ skill development / education

Please refer to the table of supported innovation activities for each funding partner (below), and get in touch with the relevant contact person for more detailed information.

ACIE partner Region Supported

activities Regional Contact Point

A, B, C, E, F, G 4. Application Process

4.1 Targeted beneficiaries

ACIE targets cluster organisations and/or other networkings gathering groups of SMEs, large companies, universities, research institutions and other regional innovation actors. The active involvement of companies in the project implementation is required. Eligible applicants cluster and/or networking organisations located within a geographical area where the ACIE partners are present. Proposals must be submitted by the representative of the cluster or networking organization.

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4.2 Eligibility criteria

Eligible project duration

The duration for all ACIE funded projects is between 6 and 12 months.

Eligible costs and co-financing rate

The overall budget of the ACIE, based on the individual regional contributions is about EUR xxx.xxx. The max. funding amount of any application is EUR 150.000 (eligible costs per project). The EU co-financing rate depends on the schemes applied in regional/national funding programmes.

Eligible Lead & Project Partners

Each ACIE project must be implemented by a project partnership consisting of:

• The applicant is a legal entity representing a cluster initiative or network.

• The applicant is located in a geographical area, which is supported by one of ACIE partners.

• Proposed activities must include the participation of at least 3 SMEs. (The participation of even more SMEs is strongly recommended. Participation of large companies, company associations, universities, research organisations, and other public organisations is encouraged)

• Applications must target another cluster initiative or network in at least one other ACIE partner region.

• Other eligibility criteria may be applied by ACIE partners.

Application forms can be accessed via S3-4AlpCluster homepage (http://www.alpine-space.eu/projects/s3-4alpclusters/en/home).

Proposals must be in line funding conditions and guidelines outlined by the ACIE partners (to be found on ACIE partners’ own website). It is recommended that applicants contact their ACIE partners (see above) in order to be informed about funding conditions.

Application forms must be completed in English and submitted to [email protected] by xx.xx. 2019 at the latest.

4.3 Selection procedure and criteria

Application

Proposal are expected to

• fit into the ACIE call,

• contribute to the overall ACIE call objectives

• are in line with overall EUSALP8

• provide a level of novelty and innovation with cross-sectoral dimension

• address the designated transformative activities

• clearly address markets of the transformative activities 8 for further information: https://www.alpine-region.eu/

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• have clear objectives and aim to achieve impact on the development of the transformative activities are in line with the guidelines / funding rules outlined by the ACIE partners.

1. Formal Check

Project applications are submitted by the Lead Partner for the benefit of all participating cluster organisations/networks and their respective members – in accordance with them and driven by their innovation needs. The applications are to be directly submitted to ACIE managing body and will first undergo a formal check.

2. Assessment and decision

After having successfully passed the formal check the project applications are forwarded to the assessment procedure. This will be conducted by XX.XX.2019

5. ACIE Coordinating Body The ACIE Call will be coordinated by xxxxxxxxxx. For any question related to the ACIE Call (not related to specific funding rules of the ACIE partners) please use the hotline indicated below Hotline: + Mail: [email protected]

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S3-4AlpClusters in a nutshell Smart Specialisation with Smart Clusters

Smart Specialisation Strategies (S3) are a lever of EU Cohesion Policy. One of the biggest challenges is to make use of the interplay between S3 and clusters. How can S3 be used to foster innovation processes and spark entrepreneurship within clusters? How can S3 be implemented through clusters to gain sustainable and inclusive growth? There is a lack of experience among regions on how to use clusters in the implementation of S3 and how to develop implementation tools to fully benefit SMEs. In addition, alignment between and knowledge about other regions’ strategies are very limited.

This is exactly the focus of the S3-4AlpClusters project, which believes that the interplay between S3 and clusters is an innovative approach that could spread innovation in the whole Alpine Space. S3-4AlpClusters will launch cross-regional coordinated actions between the different sectors/regions involved and enhance transnational cluster cooperation. The final aim is to generate critical mass for SMEs and to improve the framework conditions for innovation in the Alpine Space.

S3-4AlpClusters will develop:

• A joint transnational cluster action plan to improve transnational, cluster-based cooperation

• An S3-based innovation model for cluster development • A fully synchronized call scheme • New services validated by pilot clusters

The S3-4AlpClusters community includes cluster managers, entrepreneurs, academics and policymakers, and is supported by public authorities and S3 experts.

The NUMBERS of S3-4ALPCLUSTERS

15 Partners 35 decision makers

More than 10 Observers 11 Alpine Regions

830 SME 10 pilot clusters to be involved

FOLLOW S3-4AlpClusters

www.alpine-space.eu/projects/s3-4alpclusters/en/home

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S3-4AlpClusters Partners

HES-SO // FR-HEIA-FR INNOSQUARE CLUSTERS

Business Upper Austria - OÖ Wirtschaftsagentur GmbH

ClusterAgentur Baden-Württemberg

Veneto Region - Research Clusters and Networks Unit

Poly4EMI hosts by Anteja ECG d.o.o

Innovation and Technology Transfer Salzburg GmbH

University of Franche-Comté - FEMTO-ST

PROPLAST - Consortium for the Plastic Culture Promotion

Cluster Technologies for Smart Cities & Communities Lombardy Foundation

Autonomous Province of Trento (PAT)

Trentino Innovation Hub

Lombardy Region Government

Bavarian Research Alliance GmbH

Government Office for Development and European Cohesion Policy

Veneto Innovazione S.p.A.

European Union

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