European CommissionEnterprise Directorate General

Innovation Policy

R&D and Innovation

in the Regional Operational Programs

Meeting with Regions

11 July 2006

European Commission

www.trendchart.org

Regional level is seen as the key for Lisbon strategy (1/2)

Source : European Commission / DG ENTR

In order for Europe to reach the Lisbon goal of becoming the world’s most competitive knowledge-based economy, innovation capacity and performance need to be substantially increased:

• Innovation requires long-term cooperation between investors, enterpreneurs, researchers, companies, public authorities and consumers

• such relations flourish more easily at regional level benefiting from short distances that facilitate both formal and informal contacts and allow for more effective communication structures.

• Regional-based cooperation networks are ideal knowledge sources and entry points to exchange information and to set up new ideas

Regional level is seen as the key for Lisbon strategy (2/2)

Source : European Commission / DG ENTR

The European Commission has been aware of the special importance of regional policy for economic growth. Since the early 90s it has promoted innovation and competitiveness at regional level and will do so in the future:

• the framework on Competitiveness and Innovation will contribute to the provision of innovation support services,

• regional innovation is strongly emphasised in the 7th Framework Programme for Research and Development

• the enhancement of innovation capacity and enterpreneurship should become and integral part of the Structural Funds from 2007 onwards

• In 1996 the “Innovating Regions in Europe” (IRE) network was set up. It includes 200 member regions with their Regional Innovation Strategy projects starting in 2005

Facts on Polish R&D and innovation performance (2004)

Source : European Commission / DG ENTR

• only 0.58% R&D intensity (BERD/GDP) in 2004; whereas: Sweden 3.74% or EU-25 avg. 1,9%

• about 30% of R&D spendings is funded by business; whereas: EU25 exactly opposite with more than 70%

• the contribution of private companies in R&D expenditures in higher education accounted only for 5%

• 90% of SMEs don’t cooperate with State R&D, universities or centres of technology transfers

• the share of S&T diplomas in the total number of students is shrinking 17% in 1990/91 to 5.7% in 2004/05

Innovation drivers

0.000.100.200.300.400.500.600.700.80

TR MTPTROCZHU IT SK EL PL LU LV BGCY ES DE AT SI LT EE IE FR NL BE IS UK CHNOUS DK SE JP FI

Knowledge creation

0.000.100.200.300.400.500.600.700.80

MTROSK LV PL CY EE EL LU PT CZ IE ES LT BGTR NO SI UK DK HU FRCH IT NL BE ATUS IS JP DE SE FI

Innovation & entrepreneurship

0.000.100.200.300.400.500.600.700.80

SK ES BG RO SI IT CZ EL HU NL LT PL LV MT FR NO UK LU AT BE PT DK DE IS EE FI SE CH

Application

0.000.100.200.300.400.500.600.700.80

CY LV EL LT BG EE RO PL IS ES NO PT SI NL CZ HU BE SK IT MT LU UK FR AT DE CH FI DK SE IE

Intellectual property

0.00

0.20

0.40

0.60

0.80

1.00

ROTR BGLV LT SK PL EL EE HU CZ PTMT SI CY IS NOES IT IE FRUK BE US JP AT NL LU DK FI DE SE CH

Source : European Commission

Innovation drivers

Output

Input Finland

Poland

Application

Intellectual property

Innovation & Entrepreneurship

Knowledge creation

Poland ranks 21st out of 25 in EIS2005

EIS 2005 – The correlation between GDP and Innovation performance

Source : European Commission / DG ENTR

NL

UKDE

DKSEFIBE

FR

AT

IS

LU

NO

IT

MT

IE

ES

EELV

BG

SK

HU

EL

PL

RO

CY SIPT

CZ

LT

20

40

60

80

100

120

140

160

180

0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80

2005 Summary Innovation Index

2004

Per

cap

ita G

DP

(E

U25

= 1

00)

High-income Low-income Linear (Low-income) Log. ("All countries")

R&D and innovation should be a key element of ROP

Source : European Commission / DG ENTR

Key challenges identified by the Commission in innovation in Poland:

• access to finance (loans) – for micro and SMEs

• industry-science cooperation – regional science in service of local SMEs or universities establishing links with industries through spin-off or technology transfers

• clustering – increase the level of innovation in the region by targeting and strengthening identified SME growth sectors and clusters

• coordination between national and regional innovation strategy – is it an issue?

R&D and innovation should be a key element of ROP

Source : European Commission / DG ENTR

Example of possible actions on regional level:

• facilitating access for regional firms to public sources of innovation through competence centres and expert dialogues

• an internet-based information system for innovation

• improved coordination of the innovation supporting network in the Region

• establishment of innovation assistants for SMEs

• setting up of business networks and clusters

• fostering the internationalisation of the local firms

• accelerating the start-up process for innovation-oriented company founders, especially in the pre-seed stage

We would also encourage you to incorporate EIS indicators in ROPs

Innovation Input (16)

Source : European Commission

Innovation Ouput (10)

Innovation Drivers

KnowledgeCreation

Innovation & Entrepreneurship

Innovation Applications

IntellectualProperty(6)

(5)

(5)

(5)

(5)

• S&E graduates• Population with 3rd education• Broadband access• Lifelong learning• Youth education attainment level

• Public R&D expenditures• Business R&D expenditures• Share of medium and high tech R&D• Share of firms receiving public funding• University R&D financed by private

• SMEs innovating in-house• Innovative SMEs cooperating• Innovation expenditures• Early-stage venture capital• ICT expenditures• Non technological change

• Employment high tech services• High tech exports• Sales of new to market products• Sales of new to firm products• Employment in medium & high tech manufacturing

• EPO patents• USPTO patents• Triadic patents• Community Trademarks• Community industrial designs

Detailed information and definition on www.trendchart.org

Source : European Commission / DG ENTR

Thank you for attention