kit territorial evidence and erdf roberta capello politecnico di milano
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KIT territorial evidence and ERDF Roberta Capello Politecnico di Milano. ESPON 2013 Programme European Territorial Evidence for EU Cohesion Policy and Programming 13-14 June 2012 Aalborg, Denmark. ERDF Reform 2009 - 2012. DG-Regio and ESPON 2006-2013. DG Research - 2009. - PowerPoint PPT PresentationTRANSCRIPT
KIT territorial evidence and ERDFRoberta Capello
Politecnico di Milano
ESPON 2013 Programme European Territorial Evidence for
EU Cohesion Policy and Programming
13-14 June 2012Aalborg, Denmark
State of the art in innovation policy debate
The KIT project is at the heart of an important policy debate.
ERDF Reform 2009 - 2012
DG-Regio and ESPON 2006-2013
DG Research - 2009 Europe 2020 - 2010
Barca Report
2009
KIT Project ‘Regional Patterns of Innovation’
2011-12
‘Smart Specialization’ in R&D policies
Smart Growth pillar ‘Innovation Europe’ Flagship Initiative
Smart Innovation Policies
Aim of the presentation
To underline the importance of the territorial evidence found by KIT for re-orienting regional innovation policies, by:
1.highlighting some general beliefs in the field of knowledge and innnovation;
2.providing territorial evidence from KIT that goes against the general beliefs, generating some unconventional policy warnings on how ERSF should be spent to boost innovation.
The Existence of a Knowledge Economy
knowledge is the most strategic asset on which comparative advantages of nations, regions and firms rest;
the knowledge economy is the present economic paradigm that pervades all economies.
The Existence of a Knowledge Economy: KIT evidence
The Knowledge Economy in Europe is a very fragmented picture.
What is striking from this map is the high number of regions in which the knowledge economy is still in its infancy.
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Acores
Guyane
Madeira
Réunion
Canarias
MartiniqueGuadeloupe
Valletta
Roma
Riga
Oslo
Bern
Wien
Kyiv
Vaduz
Paris
Praha
Minsk
Tounis
Lisboa
Athina
Skopje
Zagreb
Ankara
MadridTirana
Sofiya
London
Berlin
Dublin
Tallinn
Nicosia
Beograd
Vilnius
Kishinev
Sarajevo
Helsinki
Budapest
Warszawa
Podgorica
El-Jazair
Stockholm
Reykjavik
København
Bucuresti
Amsterdam
Luxembourg
Bruxelles/Brussel
Ljubljana
Bratislava
Regional level: NUTS2Source: Own elaboration, 2011
Origin of data: EUROSTAT and REGPAT, 2007© EuroGeographics Association for administrative boundaries
This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
The know ledge econom y in Europe
© Politecnico di Milano, ESPON KIT Project, 20120 520260
km
Legend
No data
None (137 regions)
TAR only (8 regions)
Scientific regions only (11 regions)
Networking regions only (43 regions)
TAR and scientific regions (3 regions)
TAR and networking regions (20 regions)
Scientific and networking regions (29 regions)
TAR, scientific and networking regions (31 regions)
Knowledge and the Flagship Initiative ‘Innovation Union’
A knowledge economy is the key driver to an ‘Innovation Europe’ Flagship Initiative.
General policy recommendation of the Agenda 2020: increase R&D / GDP to more than 3%.
Knowledge and the Flagship Initiative ‘Innovation Union’: KIT evidence
The KIT project shows that:
1.the invention-innovation short circuit is not in place everywhere;
2.an immediate interaction between R&D/high education facilities on one hand and innovative firms on the other does not take place everywhere.
Knowledge and the Flagship Initiative ‘Innovation Union’: KIT evidence
R&D expenditure / GDP Share of firms introducing product and/or process innovation
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Roma
Riga
Oslo
Bern
Wien
Kyiv
Vaduz
Paris
Praha
Minsk
Tounis
Lisboa
Skopje
Zagreb
Ankara
Madrid
Tirana
Sofiya
London Berlin
Dublin
Athinai
Tallinn
Nicosia
Beograd
Vilnius
Ar Ribat
Kishinev
Sarajevo
Helsinki
Budapest
Warszawa
Podgorica
El-Jazair
Ljubljana
Stockholm
Reykjavik
København
Bucuresti
Amsterdam
Bratislava
Luxembourg
Bruxelles/Brussel
Valletta
Acores
Guyane
Madeira
Réunion
Canarias
MartiniqueGuadeloupe
This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
0 500250km© Politecnico di Milano, Project KIT, 2011
Regional level: NUTS2Source: Politecnico di Milano, 2011
Origin of data: Community Innovation Survey 2004© EuroGeographics Association for administrative boundaries
KIT estimates
Share of both product and process innovationNA0 - 7.797.80 - 10.2410.25 - 13.1513.16 - 16.6916.70 - 21.3721.38 - 28.3428.35 - 42.6342.64 - 98.82
Iceland: CIS3 data.
Latvia and Slovenija: CIS 2006 data.
Switzerland: share of product and process innovation.
Knowledge and the Flagship Initiative ‘Innovation Union’: KIT evidence
Product innovation
Process innovation
Product and/or process
innovation
Marketing and/or
organizational innovation
Household propensity to adopt
innovation
Environmental innovation
TAR 17,42 13,76 43,66 32,75 57 0,007
Scientific 18,16 13,48 43,71 29,51 62 0,007
Networking 16,19 13,2 44,24 31,95 57 0,007
Other 6,34 9,88 27,4 20,58 41 0,003
Smart specialization and the Flagship Initiative ‘Innovation Union’
Regional Policy Contributing to Smart Growth in Europe fully subscribes to the smart specialization strategy that claims that European policies should be targetted according to a core - periphery model:
- Core areas: where R&D activities should be concentrated.
- Peripheral areas: where co-application efforts should be concentrated.
Smart specialization and the Flagship Initiative ‘Innovation Union’ : KIT evidence
The geography of innovation is much more complex that a core-periphery model.
The preconditions for knowledge creation, for turning knowledge into innovation, and for turning innovation into growth are all embedded in the territorial culture of each region.
This means that each region follows its own path in performing the different abstract phases of the innovation process, depending on the context conditions: its own ‘pattern of innovation’, in our terminology.
Territorial patterns of innovation
Pattern 1= A European science-based area
Pattern 2 = An applied science area
Pattern 3 = A smart technological application area
Pattern 4 = A smart and creative diversification area
Pattern 5 = An imitative innovation area
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Acores
Guyane
Madeira
Réunion
Canarias
MartiniqueGuadeloupe
Valletta
Roma
Riga
Oslo
Bern
Wien
Kyiv
Vaduz
Paris
Praha
Minsk
Tounis
Lisboa
Athina
Skopje
Zagreb
Ankara
MadridTirana
Sofiya
London
Berlin
Dublin
Tallinn
Nicosia
Beograd
Vilnius
Kishinev
Sarajevo
Helsinki
Budapest
Warszawa
Podgorica
El-Jazair
Stockholm
Reykjavik
København
Bucuresti
Amsterdam
Luxembourg
Bruxelles/Brussel
Ljubljana
Bratislava
Regional level: NUTS2Source: Own elaboration, 2012
Origin of data: EUROSTAT, 2012© EuroGeographics Association for administrative boundaries
This map does notnecessarily reflect theopinion of the ESPONMonitoring Committee
Territoria l patterns o f innovation in Europe
© Politecnico di Milano, ESPON KIT Project, 20120 520260
km
Legend
No data
Imitative innovation area
Smart and creative diversification area
Smart technological application area
Applied science area
European science-based area
Knowledge production
Knowledge is the most strategic asset for a modern economy to be competitive.
An increase in R&D expenditure increases knowledge output.
Knowledge production: KIT evidence
The return of R&D expenditure to knowledge production increases by increasing R&D expenditure up to a certain level, then it starts decreasing.
R&D expenditure suffers from decreasing retuns
Knowledge production: KIT evidence
Map: Impact or R&D investments on knowledge production
The return of R&D investments to knowledge production increases by increasing R&D investments up to a certain level, then it starts decreasing.
Pattern 5
Pattern 1
Pattern 2
Pattern 4
Pattern 3
Knowledge and Smart Growth
Knowledge is the most strategic asset for a modern economy to grow, therefore:
1.Knowledge (and in particular R&D) explains factor productivity;
2.knowledge generates GDP growth.
Knowledge and Smart Growth: KIT evidence
Knowledge and Smart Growth: KIT evidence
Map: Elasticity of GDP to R&D by patterns
A critical mass is required in order to achieve increasing returns (U-shaped form).
Pattern 2
Pattern 1
Pattern 5
Pattern 3
Pattern 4
Knowledge and Smart Growth: KIT evidence
GDP growth (2005-2007)
R&D on GDP
Share of innovative firms
Elasticity of GDP growth to R&D
Elasticity of GDP growth to innovation
EU average 3.64 1.37 35.54 0.12 0.38
European science-based area (ESBA)
3.29 2.56 63.16 0.24 0.41
Applied science area (ASA) 3.65 1.84 46.92 0.15 0.49
Smart technological application area (STAA)
3.17 1.71 38.43 0.16 0.26
Smart and creative diversification area (SCDA)
3.85 0.97 27.69 0.10 0.22
Imitative innovation area (IIA)
4.2 0.41 18.14 Not significant Not significant
Key policy messages from KIT (1)
Unconventional policy warnings with regard to: -R&D expenditures as the right policy tools to develop new knowledge, innovation and growth;-a knowledge economy as the driver of growth opportunities everywhere;-external knowledge as an efficient knowledge input for all regions;-an innovation-driven economy as an outcome of a knowledge economy;-formal knowledge as the main and most strategic knowledge asset on which a knowledge economy rests.
Key policy messages from KIT (2)
If innovation policies have to support modernization in all European regions, they have:
- to diversify their approach in order to comply with the specificities and potentials of the single regions, and;
- to avoid the opposite risks of dispersion of public resources in un-differentiated ways, or
- to concentrate all resources in a few regions where the traditional policy action, namely R&D support, is due to grant the highest returns.
Key policy messages from KIT (3)
The five differentiated patterns of innovation can be the way towards a renewed, spatially sound inclusion of the smart specialization strategy in R&D policies into an appropriate regional innovation policy framework.
Smart innovation policies: definition
Smart innovation policies may be defined as those policies able to increase the innovation capability of an area by boosting effectiveness of accumulated knowledge and fostering territorial applications and diversification, on the basis of local specificities and the characteristics of already established innovation patterns in each region.
Smart innovation policies: tools
Embeddedness: policies have to be embedded in the local reality, in local assets and strategic design capabilities.
Connectedness: policies have to guarantee the achievement of external knowledge through strong and virtuous linkages with the external world.
Differentiated for the different territorial patterns of innovation.
Smart innovation policies Territorial patterns of innovation
Policy aspectsEuropean science-
based area(Pattern 1)
Applied science area
(Pattern 2)
Smart technological
application area(Pattern 3)
Smart and creative
diversification area(Pattern 4)
Imitative innovation area
(Pattern 5)
Policy goals Maximum return to R&D investmentsMaximum return to applications and co-
operation in applicationsMaximum return to imitation
Policy actions for local knowledge generation
(Embeddedness)
Support to R&D in: Support to creative application, shifting capacity from old to new uses, improving
productivity in existing uses, through:
Fast diffusion of existing innovation
Enhancing receptivity of existing
innovation
New basic fields
General Purpose Technologies
Specialized technological fields
Variety in applications
Incentives to technological
development and upgrading
Variety creation
Identification of international best
practices
Support to search in product/market
diversification
Support to entrepreneurial
creativity
Support to local firms for
complementary projects with MNCs
Support to local firms for specialized
subcontracting
Policy actions for exploitation of knowledge spillovers
(Connectedness)
Incentives to inventors attraction and mobility
Support of research cooperation in:
Incentives for creative applications through: Incentives for MNCs attraction
GPT and trans-territorial projects (ERA)
specific technologies and trans-
territorial projects (ERA), in related sectors/domains
Encouraging of labour mobility among related sectors/domains
Co-operative research activities
among related sectors
Co-operative search for new
technological solutions
Participation of local actors to
specialized international fairs
Attraction of “star” researchers even
for short periods
Work experience in best practice
Knowledge creation firms of the same
domains
Bargaining on innovative ‘local
content’ procurement by MNCs
Smart innovation policy styles (1)
- Justification of the spatial allocation of funds and of differentiation of policy tools;
- tripartite co-operation between universities, research centres and firms in main R&D projects;
- peer assessment of R&D programmes and projects, - continuity in public support subject to intermediate and
ex-post assessment of outcomes;- tapping creativity and entrepreneurial spirit; - definition of informal but also lightly structured local
processes of ‘strategic industrial planning’.
Smart innovation policy styles (2)
Policy style Reach a critical mass in R&D activities through concentration of public support
Priority to triangular projects by Universities-Research Centres-Enterprises
Peer assessment of R&D research programmes
Support to knowledge and technological transfer mechanisms to related sectors
Thematical/ regional orientation of R&D funding:
Ex-ante careful assessment of innovation and differentiation strategies
and projects
Continuity in public support, subject to in-itinere and ex-post assessment of
outcomes
Support to bottom-up identification of industrial vocations, by raising awareness
on local capabilities and potentials (‘strategic industrial planning’)
Thematical/regional orientation of innovation funding, in order to:
Favour local spill-overs of
managerial and technological
knowledge from MNCs
Support to co-operation projects
between MNCs and local firms
in general purpose technologies
in specific fields of research and technological
specialization of the area
strengthen present formal and
tacit knowledge through co-
operation with strong external partners in the specialization
sectors
enhance local technological receptivity,
creativity and product
differentiation capability in
specializ. sectors
Support to technological transfer and
diffusion
Territorial patterns of innovation
Policy aspectsEuropean
science-based area(Pattern 1)
Applied science area
(Pattern 2)
Smart technological
application area(Pattern 3)
Smart and creative
diversification area
(Pattern 4)
Imitative innovation area
(Pattern 5)
Evolutionary smart innovation policies
- Some regions could be able to ‘jump’ over different and more advanced Innovation Patterns;
- ‘evolutionary’ policies could support these paths, with extreme attention and careful assessments, provided that context conditions and reliability of actors and strategies/projects could reduce risks of failure.
Thank you very muchfor your attention!