The challenge of Smart Specialisation and synergies among ...€¦ · 19 January2015, Tirana,...

Andrea Di Anselmo – RCC workshop in Tirana-19 January 2015

Regional Conference - Networks of Excellence in South East Europe

SEE2020 Strategy R&D and innovation dimension

The challenge of Smart Specialisation and synergies

among programmes

Andrea Di Anselmo – META Group

19 January 2015, Tirana, Albania

Tirana International Hotel


META Group 25 years experience in ESIF

� META Group works daily with talents and innovation serviceproviders all over Europe, providing advice, coaching, financeand evaluating hundreds of research projects per year.

� Involved in RITTS RIS3 design and evaluation since 1994

� DG Regio and DG Research expert and service provider

� 100M EUR early stage funds currently under management inthe EU (Italy, Slovenia and Poland).


Smart Specialisation highlights


Background

“ As most regions and institutions cannot reach the frontier of science and innovation, they would be better to search for a suitable specialization in the global competitive landscape. It is most likely that this specialization will take place along applications, exploitingbusiness segments, niches, or markets that require adaptation of general technologies to specific user needs.”

Source: “The role of Community research policy in the knowledge-based economy.” Expert group report DG Research


WHAT IS SMART SPECIALISATION

Most advanced regions invest in the invention of generic technologies, others invest in the co-invention of applications of the generic technology in one or several important domains of the regional economy

Source: Dominique FORAY


DOMINIQUE FORAY’S ON S3

How to close the GAP on R&D+I:

� Any region should specialise its R&D+I efforts in sectors they have strong assets in.

� EU policy should support all regions to develop their own specificities (in reaction to support only spread investment timely across a lot of sectors).

� Entrepreneurial discovery process

� Partnership to define the most promising path and bottlenecks (bottom-upapproach and collaboration between enterprises, research centres, universities and public sectors)

Recipe:

� Better or more effective use of scarce public resources to leverage private

investment

� Strategic intelligence to identify high added value activities, public support services and tangible and intangible knowledge infrastructure


Cohesion Policy 2014-2020

ESIF and R&D+I

Key elements:

Thematic concentration to maximise the impact of investments (5

priorities)

Conditionalities and strengthened partnership to ensure effective

implementation


Investment Priority 1

Strengthening research, technological development and innovation

a) Enhancing research and innovation (R&I) infrastructure and

capacities to develop R&I excellence and promoting centres of

competence, in particular those of European interest (Up-stream);

b) Promoting business investment in R&D&I developing links and

synergies between enterprises, R&D centres and higher

education, in particular product and service development,

technology transfer, ….. through smart specialisation and supporting

technological and applied research, pilot lines, early product

validation actions, advanced manufacturing capabilities and first

production, in particular in Key Enabling Technologies and diffusion of

general purpose technologies (down-stream).


Investment Priority 1

Smart specialisation is a conditionality


Lesson learnt on RIS 3

� Silo approach

� Weak international positioning (inward looking)

� Old fashioned approach to selection / consensus building. No real «entrepreneurial process of discovery»

� SWOT not connected to selection process

� Wide focus, no real selection or «prioritsation»

� Technology driven vision

� «blurry» policy mix

� No real orientation towards implementation

� No indication on how to leverage on private resources

� Still «grant» oriented – No real engagement of «revolving» funding

� Monitoring and updating procedures to be still defined

� Quantification still to be determined


The RIS³ exercises often resulted in the identification of sectors showing a growth potentials for regional businesses through Triple Helix mechanisms.

� How many regions do have the necessary capacities to accomplish an objective of leadership in niche markets related to these sectors?

� How many regions look at their neighbours to cooperate?

More on lesson learnt on RIS 3

Most regions are struggling to fund the creation of new knowledge (R&D), while the majority of them should promote the absorption of knowledge by local businesses.

Most regions are struggling to fund the creation of new knowledge (R&D), while the majority of them should promote the absorption of knowledge by local businesses.


The challenge of leveraging on structural funds

Key message


Still a gap between R&D and Innovation


"Up-stream""Down-stream"

"Staircase to Excellence""Research

Excellence"

"Innovation Leadership”

National/RegionalR&D systems

Capacity Building Research & Development Exploitation Mar ket

National/RegionalInnovation

ecosystems

Horizon2020ESIF

€100 billion for innovation in wide sense

€ 79.4 billion

Find the right mix…….


� Obtaining more impact on competitiveness, jobs and growth by combining ESIF and Horizon2020

� Amplifying projects / initiatives under the other instrument

� Carrying further the projects of the other instrument towards market, e.g. SME instrument "seals of excellence"

� Exploit complementarities while at the same time avoid overlaps and exclude double-financing (fraud)

Build on synergies …


Funding from ERDF, the Academia of Science as well as bilateral cooperation (for instance with Switzerland, Ukraine, Belarus) is available and perceived as much easily obtainable than the one from FP7; difficulty of entering in EU15 consortia of excellence;

Lack of ambition for participating in FP7 projects. Furthermore, researchers are not rewarded for their involvement in FP7 projects;

Lithuania


Key elements for a synergic approach


A typical “logical intervention path”

Regional policy objectives

RIS³ priorities Means to be deployed Schemes Outputs

• Economic growth

• Sustainabledevelopment

• Job creation

• Social inclusion

• Supporting private investment in R&D

• Stimulating innovation

• Enhancing SME competitiveness

• Co-investing in R&D infrastructures

• Strengthening entrepreneurial approaches

• Promote contaminations

• Fostering internationalUniversity/ SME collaborations

• Transforming publicly funded knowledge into market applications

• Facilitating the introduction of new products/services into the market

• Encouraging the creation of new firms (spin-offs)

• Promoting the scale-up of product range

• Business support “open” infrastructure

• Support for regionalcooperation (Cross-border and international actions)

• Financial facilities

• Mentoring services

• Support to commer-cialization of innovative products/ services

• Key stakeholder matching

• Competence building on entrepreneurship

• Marketing of «Excellence»

• New skills

• Talents attracted (back)

• Start-ups/Jobs in new industries

• Internationalizationof existing companies

• Added value jobscreated

• Foreign direct investment attracted


Within the Smart Growth Pillar, SEE 2020 builds upon the efforts already done by the partner countries in developing a joint R&D strategy for innovation, the Western Balkans Regional R&D Strategy for Innovation (WBRIS).

Key Strategy Actions:

� Establish a Research Excellence Fund to strengthen research capabilities and promote research excellence

� Promote Networks of Excellence to strengthen excellence on a particular research topic

� Introduce a Technology Transfer Programme to stimulate industry-science collaboration, encourage marketable research results and value-creation

� Create an early stage startup programme using both non-financial and financial instruments to support a viable long-term market for innovation finance


SYNERGIES BETWEEN SEE 2020 & EUROPE 2020 STRATEGY

SEE 2020 was inspired by the EU’s own bold initiative, the Europe 2020 strategy.The spirit, orientation and content of SEE 2020 are close to those of Europe 2020.

The synergies create ground for close cooperation between the SEE and the EU inimplementing the two strategies. The outcome could result in wide range ofoptions for related joint initiatives, such as:

information sharing; policy learning; sharing of good practice; mutual leveraging oneach other’s initiatives; or undertaking joint initiatives in areas where there is closecommonality in objectives.

The SEE 2020 Strategy also sets the objective of establishing close cooperation tiesbetween the Strategy governance bodies and the governance bodies of Europe2020 flagship initiatives.


Summing up


The Co-investment facility


Key features of co-investment model

� Compliant with the EC “off the shelf” funds => no need for MAto notify the EC

� Investments are made on a deal by deal base (key to leverageat its best the contribution of the private sector)

� Funds are managed by a private management firm

� Investments are matched on a pari-passu base (10% private90% public)

� Co-investors are independent in their investment decisions:they are free to choose to co-invest together

� due-diligence can (not mandatory) be performed jointly

� Unique example of a public-private partnership involvingbusiness angels clubs, business Incubators, accelerators,corporate ventures, etc.


Equity Investment Fund for SMEs and start-up compan ies (Co-investment Facility)

Co-investment facility might be combined with other Fis e.g grants (services advice to improve impact (investment readiness etc.)


ESIC2A service to better exploit research resultsExploitation Strategy and Innovation Consultants (esic2) by DG Research and Innovation supports projects in the NMP in addressing non-technological exploitation issues


Process

1) Analysis of the information package by the appointed expert

2) Workshop with the project partners

3) Synthesis report and an Action plan with recommendations and suggestions by the appointed expert

4) Possible further services

Search for a business model not for a precooked solution to beimplemented


ESS searching for…

- Exploitation model

- Characterization of exploitable results

- Ground identification


Science is not innovation

Future will be different form the past, much more different from what we were used to

Things move faster, much faster than our capability to understand and act

We may face more risks to concentrate on sectors rather than on segments of the process that brings knowledge to markets

We need to trust younger entrepreneurial generations

Thank [email protected]


[email protected]

META Group - An international, dynamic and independent group dedicated to the creation and growth of Knowledge Intensive Companies, for the wealth of open, entrepreneurial regions. META works together with: policy makers and public executives that are focused on innovation and in promoting entrepreneurial activity to increase regional growth and competitiveness, entrepreneurs that are building and developing their businesses, researchers willing to exploit their research activities and investors interested in seed and start up capital.

To render the Knowledge to Market process effective and profitable is our mission!


Backslides


META Group

Key highlights


META Group 25 years experience in ESIF

� META Group works daily with talents and innovation serviceproviders all over Europe, providing advice, coaching, financeand evaluating hundreds of research projects per year.

� Involved in RITTS RIS3 design and evaluation since 1994

� DG Regio and DG Research expert

� 100M EUR early stage funds currently under management inthe EU (Italy, Slovenia and Poland).


META Group and regional strategies

Designing of strategies, roadmaps and implementation plans at regional level to foster

innovation including:

� mapping the process of translating knowledge into market solutions

� policy benchmarking and accessing practices

� road mapping

� design of entrepreneurship and innovation strategies through the analysis of the

friendliness of the process of turning knowledge into market of regional context

� preparation and execution of “Smart Specialisation Strategies” (ex Regional

Innovation Strategies), which are considered to be drivers of the regional economic

growth based on the experience and knowledge gained while working in and with

different European regions in Slovenia, Netherlands, France, Poland, Lithuania,

Hungary, Malta, Slovakia, Romania, Switzerland, Spain, and Italy.


Technical Assistance:

� Supporting the implementation of programmes and projects in the areas of

research & innovation and entrepreneurship through the successful delivery of:

� over 300 feasibility studies related to creation of new science parks,

accelerators and new early-stage financing mechanism

� pilot projects

� participation in a number of European projects


MIRRIS

� Mobilizing Institutional Reforms for Research and Innovation Systems

� A support action aiming at identifying the strengths and weaknesses of R&I

performance in ERA and Framework Programmes of the EU13 and proposing

solutions to improve performances and participation to H2020.

� MIRRIS is funded under FP7 SSH and is implemented by a consortium of 11 leading

organizations under coordination of META Group.

� MIRRIS will focus on the following countries: Bulgaria, Croatia, Cyprus, Czech

Republic, Estonia, Hungary, Latvia, Lithuania, Malta, Poland, Romania, Slovakia

and Slovenia.

http://www.mirrris.eu


XPLORER FUND

The first proof of concept type of fund based in Poland. It has been launched in 2014.

The fund will be operational in 4Q of 2014.

� 5 million EURO under management

� Resources are 80% public – 20% private

� It can finance technology driven projects or start-ups

� It focus mostly on high tech projects from ICT, life Science, cleantech, and energy

sector

� Investment period 3 years and management of 5 years

� 15% of the investment budget will be used to prove that innovation works

� Only invest in polish companies and foreign companies that will established

business in Poland.


Smart Specialisation Strategy – RIS3

Key highlights


PLACE BASED DIMENSION OF S3

1. Why is it important?

The S3 concept relies on the strengths of a region and its capability to build unique competitive advantages. All regions have to and should be able to detect areas of specialization. For most regions it will require adaptation of traditional assets by absorption of new or key enabling technologies.

2. How to achieve this?

Regions need to develop a sound analysis of the existing situation and emerging trends with regards to scientifical, technological and economic specialization as well as enterprise innovation capacities.

The analysis has to look at the overall entrepreneurial capability and the ability of the policy makers to identify the current and emerging sectors of specialization at the level of niche markets.

The analysis has to review the potential for cross-sectorial cooperation (interface between industries or clusters) and for knowledge/technology creation, transfer and absorption.


GOVERNANCE


A strategy can only be successfully implemented if stakeholders claim its ownership. In other words, all the stakeholders have to share the same vision and have to be willing to invest their energy to achieve the goals of that strategy.


Undertaking a wide consultation of all regional stakeholders (enterprises, higher education representatives, civil society, regional and local authorities, …). To do this, it is worth considering the creation of dedicated interest groups and the publication of a road map, the submission of surveys and papers to open consultations, the organization of workshops, …

The S3 needs collective effort by public and private bodies to adapt a lot of framework conditions as well as public support to match the needs of enterprises.


CRITICAL MASS


To make a significant difference, it is essential to engage the right volume of money and people. In other words, to avoid fragmentation and dusting.


Measuring the number of potential partners and the investment willingness and readiness of the industrial fabric, the clusters, the R&D competences and infrastructures, the number of innovative firms, the human capital (talent & skills), … for each choice / investment priority.


OUTWARD-ORIENTED ASPECTS


There is an intense global competition on every element of the value chain of an enterprise (R&D+I, production, distribution, services centre, …). Without assessing the strategy vis-à-vis competitor and partner regions, there is a risk that the perceived potential will be challenged by external competitors and efforts could thus be jeopardized.


Assess the strategy vis-à-vis other regions (use peer reviews or external consultants). Analyze the connections of key regional stakeholders to relevant institutions outside the regions and the position of regional enterprises in the global value chain of their industrial/service sector.


1. Why is it important?As indicated above, most regions need to acquire and adapt knowledge created elsewhere and to transform this into competitive advantage which provide new types of innovation.Some of the most admired enterprises such as Google, Amazon, Facebook and Apple didn’t invent the internet but were able to find an innovative use of it, which hasn’t been the case for a lot of European entrepreneurs.

2. How to achieve this?By assessing, supporting and enhancing:• People based activities (mobility; participation in networks; attending

conferences; coaching/mentoring/training; joint publications)• Community based activities (exhibitions/fairs; conferences/workshops;

technology showcases; clusters internationalization)• Technology activities (purchase of patents; licensing; spin out attraction;)• Enterprise based activities (joint research; joint ventures; co-development;

prototyping & testing; staff mobility; consultancy services; soft landing packages; feasibility studies)

FLOWS & ABSORPTION OF KNOWLEDGE


ACHIEVABLE GOALS, MEASURES OF PROGRESS AND EVALUATION


A strategy is not only an obligation of means, it also is about obligation of results which can be measured through output and result indicators.

Remember that framework conditions don’t create jobs and growth, only enterprises do.


Draft a roadmap with a list of concrete deliverables and milestones as well as the bodies responsible for the implementation of the foreseen actions. Put in place a sound monitoring system and a process of continuous policy learning and adaptation.


DELIVERY MECHANISMS


The implementation of the strategy is as important as its design. In nearly all EU regions, the implementation tools have to focus on 4 main issues: i) entrepreneurship spirit; ii) innovation (including managerial and service innovation) and internationalization; iii) access to finance; iv) shortening time to markets.


Review the product mix of financial (grants and financial engineering tools) and non-financial support services (advice and high added value support services) available and their relevance to the priorities (sector specific schemes).

Public procurement as a driver to support innovation (be prepared to fix an indicative budget allocation for that purpose).


SEE 2020 Strategy

Key highlights


THE MAIN OBJECTIVES OF SEE 2020 STRATEGYThe Regional Cooperation Council (RCC) Secretariat, on the request of thecountries of the Southeast Europe Cooperation Process (SEECP) as well as theEuropean Commission (EC), coordinated the development of the “South EastEurope 2020 Strategy – Jobs and Prosperity in a European Perspective (SEE 2020)”a regional growth strategy.

The main goal of the SEE 2020 Strategy is to help boost competitiveness and jobcreation, and underscore the European perspective of the region’s future.

By 2020, the region plans on achieving 11 ambitious headline targets in five maingrowth pillars of the Strategy – integrated, smart, sustainable and inclusive growth,underpinned by good governance.

Ministers in charge of economy of Albania, Bosnia and Herzegovina, Croatia, theFormer Yugoslav Republic of Macedonia, Kosovo, Montenegro and Serbia adoptedthe Strategy in Sarajevo in November 2013, entrusting the RCC with a role ofcoordinating and monitoring its implementation.


SEE 2020 5 STRATEGY PILLARS

� Integrated Growth: through the promotion of regional trade and investmentlinkages and policies that are non-discriminatory, transparent and predictable.

� Smart Growth: by committing to innovate and compete on value-added ratherthan labour costs.

� Sustainable Growth: by raising the level of competitiveness in the private sector,development of infrastructure and encouraging greener and more energy-efficient growth.

� Inclusive Growth: by placing greater emphasis on developing skills, creatingemployment, inclusive participation in the labour market and health andwellbeing.

� Governance for Growth: by enhancing the capacity of public administration tostrengthen the rule of law and reduce corruption, the creation of a businessfriendly environment and delivery of public services necessary for economicdevelopment.

The SEE 2020 Strategy provides a framework to assist governments in the regionto implement their individual development strategies, including EU accessionrelated goals, by enhancing national efforts through focused regional cooperation.


SEE 2020, with the Smart Growth Pillar, builds upon the efforts done by the partner countries with the Western Balkans Regional R&D Strategy for Innovation (WBRIS), a joint R&D strategy for innovation.

Key Strategy Actions:

� Establish a Research Excellence Fund to strengthen research capabilities and promote research excellence

� Promote Networks of Excellence to strengthen excellence on a particular research topic

� Introduce a Technology Transfer Programme to stimulate industry-science collaboration, encourage marketable research results and value-creation

� Create an early stage startup programme using both non-financial and financial instruments to support a viable long-term market for innovation finance


The Regional Programme on Networks of Excellence (NoE) is one of the priorities of the SEE 2020 Strategy within the second key Strategy action in the R&D and Innovation dimension.

The Regional Programme will target core research groups capable of achieving international standards of excellence by creating the conditions for more effective and efficient cross-border collaboration.

The NoE programme will facilitate research mobility within the region and outside, training of researchers and scientists and access to co-operation programmes and partnerships.


IMPORTANCE OF STAKEHOLDER ENGAGEMENT

The comprehensiveness of the SEE 2020 agenda also entails direct involvement ofregional structures and international stakeholders.

The key instruments for addressing the existing problems and achieving theStrategy objectives lie in the hands of national governments, through targetedreforms and policy measures.

The responsibility for Strategy implementation and monitoring will be shared andjointly mandated by the SEE governments and a number of regional structures andbodies associated with these structures that will be responsible for certain areas.

Both the implementation and the monitoring of SEE 2020 will in most cases requirean elaborate mechanism to delineate responsibility for the coordination betweennational public institutions and regional bodies and structures.

In order to ensure more efficient steering and better coordination the individualSEE governments appointed National Coordinators to oversee implementation ofthe policy reform agenda in their own country and coordinate implementation ofjoint regional measures with the other countries coordinators.


Europe 2020 Strategy

Key highlights


THE MAIN OBJECTIVES OF EUROPE 2020 STRATEGY

The Europe 2020 strategy addresses smart, sustainable and inclusive growth. Itaccounts for the 28 European Union member states and is important for candidateand potential candidate countries as well, contributing to a European perspectiveon growth.

Targets (European Commission 2014a):

� 75% of the 20-64 year-olds to be employed;

� 3% of the EU's GDP to be invested in R&D;

� greenhouse gas emissions 20% (or even 30%, if the conditions are right) lowerthan 1990; 20% of energy from renewables; 20% increase in energy efficiency

� reducing the rates of early school leaving below 10%; at least 40% of 30-34–year-olds completing third level education;

� at least 20 million fewer people in or at risk of poverty and social exclusion.


SEVEN FLAGSHIP INITIATIVES-PRIORITIES AND ACTIONS

� “Innovation Union" to improve framework conditions and access to finance for researchand innovation so as to ensure that innovative ideas can be turned into products andservices that create growth and jobs;

� “Youth on the move" to enhance the performance of education systems and to facilitate the entry ofyoung people to the labour market;

� "A digital agenda for Europe" to speed up the roll-out of high-speed internet and reap the benefits of adigital single market for households and firms;

� "Resource efficient Europe" to help decouple economic growth from the use of resources, support theshift towards a low carbon economy, increase the use of renewable energy sources, modernise ourtransport sector and promote energy efficiency;

� “An industrial policy for the globalisation era" to improve the business environment, notably for SMEs,and to support the development of a strong and sustainable industrial base able to compete globally;

� "An agenda for new skills and jobs" to modernise labour markets and empower people by developingtheir of skills throughout the lifecycle with a view to increase labour participation and better matchlabour supply and demand, including through labour mobility;

� "European platform against poverty" to ensure social and territorial cohesion such that the benefits ofgrowth and jobs are widely shared and people experiencing poverty and social exclusion are enabled tolive in dignity and take an active part in society.


LEVEL OF INTERVENTION

The Europe 2020 strategy has a thematic approach as outlined above whichcombines combining priorities with targets. Additionally, member states developtheir own strategies concerning sustainable growth and public finances.Integrated guidelines at EU level cover the scope of EU priorities and targets.

The reporting of Europe 2020 and the Stability and Growth Pact evaluation arecarried out at the same time, while keeping the instruments separate andmaintaining the integrity of the Pact.

The European Council has a central role in the strategy, while the Commissionmonitors progress towards the targets, advocates policy exchange and makesrequired proposals to steer the process as well as fosters actions and advances EUflagship initiatives (TGG 2014).

The European Parliament, in turn, represents citizens and acts as co-legislator onkey initiatives. Its activities extend to a number of actors: EU committees, nationalparliaments, national, local and regional authorities, social partners andstakeholders and civil society.


OVERVIEW OF STRATEGY INDICATORS

� Research expenditure as per cent of GDP increased from 2005 (1.82) to 2012 (2.03)although it still trails from the target 3.00.

� The indicators on R&D as well as climate and energy targets reflect changes in economicactivity. When GDP decreases, as it did in all but one EU member states in 2009 and inmany after that, the share of R&D as per cent of GDP increases even if R&D fundingremains the same. Between 2003 and 2013, the EU-28 GDP grew only by an annualaverage of 1.1 per cent (Eurostat 2014).

� Shortcomings in the European economy also come forth in the other Europe 2020indicators, especially those concerning employment as well as poverty and social exclusion.Employment rates have not significantly approached the Europe 2020 target nor has thepercentage of people at risk of poverty or social exclusion (68.0 to 68.5, target 75.0; 123.9to 119.8, target 95.7).

� Education makes an exception in this respect as figures of early leavers from educationand training as well as tertiary educational attainment are steadily approaching targets(15.8 to 12.8, target under 10; 28.0 to 35.8, target at least 40.0). Again, slow economicgrowth is reflected in these figures, but education, nevertheless, forms a base for futureinnovation as well as supports inclusion in society.


SYNERGIES BETWEEN SEE 2020 & EUROPE 2020 STRATEGY

SEE 2020 was inspired by the EU’s own bold initiative, the Europe 2020 strategy.The spirit, orientation and content of SEE 2020 are close to those of Europe 2020.

The synergies create ground for close cooperation between the SEE and the EU inimplementing the two strategies, which outcome could result in wide range ofoptions for related joint initiatives, such as information sharing; policy learning;sharing of good practice; mutual leveraging on each other’s initiatives; orundertaking joint initiatives in areas where there is close commonality in objectives.

The SEE 2020 Strategy also sets the objective of establishing close cooperation tiesbetween the Strategy governance bodies and the governance bodies of Europe2020 flagship initiatives.


Per META-Group

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Per META-Group

The challenge of Smart Specialisation and synergies among ...€¦ · 19 January2015, Tirana,...

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