governance models and frameworks for smart specialisation ... · • a national network of 55...

GovernanceModelsandFrameworksforSmartSpecialisation:Thechallengeofimplementation.CasestudyoftheHunterRDARIS3initiativeDrJohnHoward,UniversityofTechnologySydney

RegionalDevelopmentAustralia(RDA)

• Anationalnetworkof55committees,madeupoflocalleaders• Expectedtoworkwithgovernments,businessandcommunitygroupstosupportdevelopment

oftheirregions• Funded(limited)bytheAustralianandState/territorygovernments.• Expected“tobuildpartnershipstodevelopstrategiesanddeliversustainableinfrastructure

andservicestotheirregions”-– promoteandparticipateinregionalprogramsandinitiatives– provideinformationandadviceontheirregiontogovernment,andsupportinformedregional

planning– DevelopaRegionalPlanwhichoutlinesprioritiesfortheregionandguidesthemin

strengtheningtheircommunities(notthesameasaRIS3plan)– Setpriorities,screen,andsupportgrantapplicationsfromtheircommunitiesfromtheRegional

DevelopmentAustraliaFund -• Mostrecentfundinground- 42grantsofbetween$0.5m$15mforprojectscovering

constructionofnewand/orupgradingofexistingsporting,cultural,artsandcommunityfacilities,airportsandroads.

• Supportforuniversityinfrastructureprojectsisnot withinscopeoftheFund.• ThispaperdrawsonexperienceintheHunterRegionofNSWintakingtheRDAframework

furtherintoaninnovationagenda

11/12/15 HunterSmartSpecialisationStrategy 2

RegionalDevelopmentAustraliaRegions


NSWRegions


TheHunterRegion.29,000sq kms.650,000people.160kms fromSydney.Mining– 22.3%ofGRP(butonly5%ofjobs).Manufacturing– 11.7%.Health– 7.7%(13.7%ofjobs).Finance- 6.5%.Construction– 6.0%.Knownasa‘steel’city

.Majordefencefacilities

.Globalorienteduniversity

.Stronginmedicalresearch

.Agribuisness

.Equine


RegionalInnovationSystemDynamics

CRICOS #00212K

Research&LearningInstitutionsIntegratedtertiaryeducationsystemNewknowledgeEducated&trainedgraduates

ProblemsolvingPublicspace

GovernmentInfrastructureIndustry&InnovationPolicyExpenditureProgramsPolicyR&D,Training

IndustryCompetitive

advantagethroughinnovation.KnowledgeIntensive

BusinessesIndustryR&D,Training,

FrameworkforInteractionsKnowledgeTransfer

CollaborationPartnershipsJointVentures

MemorandaofUnderstandingIntermediariesLeadership

ContemporarydynamicsoftheRegionalInnovationSystem

It’swhathappensinherethat

reallycounts

Everyonehasaplan,resources,andbudgets!Butnoregionalinnovation plan- untilRIS3

HunterRIS3PlanningNarrative

• RDAhastrackrecordofcommitmenttoinnovation- theHunterInnovationScorecard,HunterInnovationFestivals,STEMinschools,andBusinessInnovationHub

• Needtofindnewsourcesofgrowthandproductivityinapost-miningboomeconomy– butbuildingonthestrongmining,energy,andagriculturebaseandachievementsinmedicalresearch

• Advancesindigitalandotherenablingtechnologiesmakingmining,energyandagriculture‘hightech’andserviceoriented

• Respondtoandcapturetheopportunitiesofchangingpatternsofinternationaltrade,theclosereconomictieswithChina,IndiaandtheMiddleEast,aswellasthechallengesfromclimatechange,urbanisation,andsecuringasustainableenergyfuture.

• RIS3frameworkasacatalystfornewactivitiesaroundinnovationtostrengthentheeconomicdevelopmentoftheregion.

• TheRIS3frameworkhashelpeddefinecompetitiveadvantagesandestablishprioritiesforinvestmentandresearchthatmaximisedistinctivenessthroughinnovationandcollaboration.

• RDAHunteristhefirstregioninAustraliatoapplytheRIS3framework.

• LaunchedbythePrimeMinisterofAustraliainMarch2016


RDAHunterRegionalSmartSpecialisationStrategyInBrief

StrategicActions

PriorityGrowthAreas

AdvancedManufacturing

CreativeIndustries Defence Foodand

Agribusiness

MiningEquipment,

TechnologyandServices

MedicalTechnologiesandPharma-ceuticals

Oil,GasandEnergy

Resources

InclusiveLeadership Highimportance

ModerateImportance

Highimportance

Highimportance

Highimportance

Highimportance

Highimportance

EncourageEntrepreneurship

Highimportance

Highimportance

ModerateImportance

Highimportance Important Important Moderate

Importance

DevelopSkillsforInnovation

Highimportance

Highimportance Important High

importanceHigh

importance Important Highimportance

CoordinatePolicesandRegionalPrograms

Highimportance


importance

ModerateImportance

Highimportance

Highimportance

EstablishaHunterRegionalInitiativesFund

Highimportance

Highimportance

ModerateImportance

Highimportance

ModerateImportance Important Important

CommunicatetheStrategy

Highimportance


importanceHigh

importanceHigh

importanceHigh

importance


TheImplementationContext

• Absenceofaregionalgovernanceframework

• Verystrongandwellresourceduniversity:

– AAAcreditrating,strongbalancesheet,verypositivecashflow,capacitytoleveragepropertyportflio

– Hasbuiltworldclassresearchcapabilityingeoscience,resourcesengineering,biochemistry,medicalresearch(ERAassessments)

– Adoptingaleadroleintheindustrialtransformationoftheregionfromcoal,steelandheavymanufacturing,toaregionalandglobalknowledgehub,adriverofworldclassinnovationandacollaborativepartnerofchange(McMillan,2014)

– Tappingintointernationalknowledgeandexperienceaboutregionaltechnologyclustersemergingfrom‘rustbeltcities’

– Investmentsininnovationinfrastructureandhubs– particularlypropertycomponents

• Substantialgovernmentassistanceforbusinessandenterprisedevelopment

– 130governmentfundingprogrammes– agrantapplicationindustry

• Businessesarealsowellnetworked

– Numerous(competing)businessandindustryassociations

• Anintensive‘publicadministration’landscapefocusedonregionaldevelopment


ThePublicAdministrationLandscape

• CommonwealthandStateagencieshaveregionalstructuresondevolvedorganisationalmodels,regionalstatutoryauthorities,localgovernments(11)

• Multitudeofpublicsectorplansandstrategiesinclude-– TheEconomicProfile,preparedfortheEconomicDevelopmentStrategyforRegionalNSW,byNSWTradeand

Investment,2015– TheDraftHunterRegionalPlan,preparedbytheDepartmentofPlanningandEnvironment - providestheland

useframework– TheHunterEconomicInfrastructurePlan,preparedbyInfrastructure-NSWandRDAHunter– TheHunterStrategicInfrastructurePlan,preparedbytheHunterDevelopmentCorporation– HunterRegionalGrowthPlan2016-2019:EconomicDevelopmentStrategyfortheHunter– TheLocalLandServicesStrategicPlan,2016-21,preparedbyNSWLandServices– TheHunterRegionalTransportPlan,preparedbyTransportNSW- coversroad,railandpublictransport

investments– TheHunterNewEnglandLocalHealthDistrictStrategicPlan– ThePortofNewcastle,aprivatelyownedcorporation, iscurrentlydevelopinga90-hectaresiteforport

relatedactivities– NewcastleAirportMasterPlan– TheDepartmentofPrimaryIndustriesUpperHunterAgriculturalprofile identifiesimportantagricultural

resources,criticalfeaturesofregion’sleadingagriculturalindustries,theirpotentialdevelopmentandrelatedlanduseplanning

– Localgovernmenteconomicdevelopmentplans– TheUniversityofNewcastleNeW FuturesStrategicPlan– HunterTAFEStrategicPlan

• SowheredoesRIS3fitin?– Potentially“definecompetitiveadvantagesandestablishprioritiesforinvestmentandresearchthatmaximise

distinctivenessthroughinnovationandcollaboration”.– Buthowdoesitimplementandallocate?


Governanceandimplementation

• Absenceofaformalgovernanceframeworkfortheregion

• Visionof‘collaborativegovernance’oftenmentioned– Agenciesworkingcollaborativelytoachieveoutcomes

– Butexternalfundingagenciesrequireresponsibilityandaccountabilityframeworks

• RDAhaslimitedcapacityinpresentstructureforstrategyimplementation

• RDAgovernanceoptionsthatcouldbeexploredforimplementation– Networks– RDAasnetworkfacilitator/connector

– Associations- RDAasleadina‘collective’ofsharedinterests,purpose

– Alliances– RDAasabrokerofstrategicalliances

– Incorporatedentity– RegionalDevelopmentAuthority– oranexistingorganisation

• Wherewilltheuniversityfitin?



FrameworkforcollaborationgovernanceAttribute Governancestructure

Network Association StrategicAlliance IncorporatedEntity

Basisofgovernance Sharedinterest,informalconnections

Collectiveaction,membership

Jointactionindeedofagreement

ProvisionsoftheCorporationslaw

Levelofparticipantcommitment Loose,causal,voluntary Weak Strong,committed Enforceable

Mission Generalstatementsofpurpose

Specificstatementsofpurpose ClearStatementofpurpose Clearstatementof

objectives,resultsOutcome focus Limited Specific Focused StrongBreadthofagenda Narrow Specificinterests Focussed Encompassingstrategy

Governingboardinvolvement Casual Limited Strong Diligent

Decisionmakingprocesses Consensual Representative Contractual Corporate,judgemental,expert

RoleofChiefOfficer/Secretary Administrator,facilitator Administrator,adviser,broker Executive,manager,broker Executive(decisionmaker)

managerRoleofFinanceOfficer Absent,limitedfunding Important Significant Critical

Focusofoperations Communication,knowledgesharing Cooperation,consensus Coordination,alignment Corporate,integrated

CostofformationMinimalExchangeofletters,emails

LowRegistrationasNotforProfitAssociation

ModerateMayinvolvecontractlawyersandcounsel

HighExpensivelawyersandaccountants

Operatinginstruments Informal,consensus MemorandaofUnderstanding

Formalagreementsandobligations

Incorporation,legislation,deed

Basisofoperation Generalagreement,goodwill

StatementsofIntentMembershipfees

AgreedBusinessPlanandbudget LegalEntity

Costofoperation Minimal Low Moderate HighCapacitytodeliverlargeprograms/projects

Limited– smallspecificprojects Moderate– projectspecific High– projectspecific High– projectand

programmespecific

Accountabilitytostakeholders InformalreportingProjectacquittal

Formalreportinginfinancialstatements

Formalreportinginfinancialstatements

Formalreportingcoveredbylaw

Riskforstakeholders Minimal Low Moderate High

EmergingroleofregionaluniversitiesinRIS3

• Developmentofregionalinnovationsystemshasbeen‘bottomup’inAustralia-universitieshavetakenastrongleadrole– UniversitiesgottiredofwaitingforCommonwealthpolicyactionduring2013-15

• UoN (likeothers)complementingits‘global’researchrolewithinterestinregionaldevelopmentandinnovation

• EUreportsseeimportantroleforuniversitiesasdriversofsmartspecialisation(EuropeanCommission,2014) -– Translationalresearchfacilitiesandprogrammes– economicandsocial– One-stopadvisoryservicesforSMEs– Professionaldevelopmentprogrammes– People-basedmobilitybetweenHEandindustry– Graduateretentionandtalentattractionpoliciesalignedwithregionalpriorities

• ManyoftheseandotherinitiativesarebeingimplementedattheUniversityofNewcastle

• CommonwealthandStateGovernmentschannelling‘innovation’fundingthroughuniversities– Supportforinnovationhubs,incubators– currentproposalforR&Dtaxincentive


EmergingroleofregionaluniversitiesinRIS3

• Obstaclesandchallenges-– Integratingglobal,regional,andlocaldimensionsisstillachallengeformany

universitiesandacademics– Commitmenttodevelopinganengagementculture– Puttinginplaceorganisational,managerial,financial,andadministrativecapacity– Buildingconfidenceandtrustofbusinessandgovernments

• Concurrentglobalresearchandlocalengagementoutcomesarepossible– Commitmenttolongtermpartnershipapproach- overtransactional(‘fundingfor

research’)– Project/programmedesignandcommissioningcan havemultipleoutcomes

• UoN situation– Thelargestinvestorininnovation– Theonlyuniversityintheregion– Pursinginvestmentsinurbanrenewalanddevelopment– EmbracingRIS3inadefactosense– HastheresourcesandleveragetoimplementtheRDARIS3strategy

• Parallelsemerginguniversityrolesinotherstressedregions(Geelong,Wollongong,CentralQueensland,Tasmania)

• Maynotworkinregionswheretheareseveraluniversities– particularlyinnermetropolitanregions


OngoingroleofHunterRDA• RDAprogrammeiscurrentlyunderreview

• Stategovernmentcommitmentuncertain

• HunterRDAhas-– Changedtraditionalinfrastructureandjobcreationfocusofregionalpolicytoinnovation– Builtastrongnetworkingcapability– Developedareputationforindependenceratherthansectionallobbying– Regardedasaeffectiveadvocatefortheregion– DevelopedaRIS3focusedonoutcomes

• RDACommitteewouldalsoliketoseecommitmenttootheractivitiesinRDAMission

• Universitiescannot‘goitalone’– theyneedcommunity/stakeholder‘legitimacy’

• TheRDAcanbuildandstrengthenengagement betweentheUniversity,BusinessandGovernment

• Engagementismultifaceted

• Amountstoanimportantongoingintermediary roleforHunterRDAinthedevelopmentofRIS3

• But-– Wouldtherolebeembracedinthecomplexlocalpublicmanagementcontext?– Beagreedbystakeholdersfocusedonphysicalinfrastructureinvestment?Doesthismatter?– HowmuchiscontingentonRDAroleinaccesstofunding?

• CanHunterRDAexperiencebescaledupasageneralframeworkforRIS3implementationwithauniversityleadrole?


Conclude

• TheRIS3frameworkprovidesacontextforregionalinnovationstrategyformulationacrossacomplexbackdropoflargelyautonomouspublicandprivateorganisations.

• Thiscomplexityinorganisationalrolesandresponsibilitieshasapotentialforinnovationsystemsfailure whereresourceallocationandimplementationdecisionstakeninoneorganisationmayconflictwithdecisionstakeninothers.

• AsanintermediaryorganisationtheRDAhasthepotentialtoamelioratethesepotentialsystemfailures.

• RDAHunterhasawell-developedcapacityandcapabilityforcontinuingrepresentationandadvocacyfortheregiontonavigatethroughthecomplexpublicadministrationarrangementsthatexistattheregionallevel.

• RDAcanoperateasbotha‘topdown’instrumentforpublicpolicyimplementation,anda‘bottom-up’instrumentforon-the-groundcontactsthatgeneratesinputforthepublicpolicy.

• ImportantroleinpartnershipwiththeUniversityindevelopingtheinnovationdimensionofregionaleconomicdevelopmentstrategythroughRIS3.

• Universityhasakeyroleinimplementation;needstheRDAconnectiontobuildengagement

• RIS3document– animportantplaceholderthatprovidesbasisforcollaborationthinking

• TheHunterRegioniskeentolearnfromEUexperienceandpracticeinimplementationofRIS3


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