OPEN DAYS 2006 European Week of Regions and Cities

Agencies and sectors for technology and innovation

Brussels, 9-12 Octuber 2006

Innovation and Structural Funds, the engines of change in Andalusia

Miguel Angel Serrano www.agenciaidea.es

Brussels, 10th October 2006

CONTENTS

1.- ANDALUSIA

2.- THE NEW AGENCY

3.- THE ANDALUSIA GLOBAL GRANT (SGA)

4.- THE REGIONAL INNOVATION SYSTEM

5.- CONCLUSION

1.- ANDALUSIA

•Andalusian area: 87.268 m2 (17,3% of Spain; 2% of EU )

• The population is 7,8 M of inhabitants

• 500.000 and 700.000 live in the cities of Malaga and Seville respectively, in the East and West region.

• 8 administrative provinces: Almería, Cádiz, Córdoba, Granada, Huelva, Jaén, Málaga and Seville (capital city)

2.- THE NEW AGENCY

Agencia de Innovación y Desarrollo de Andalucía IDEA (Agencia IDEA), is a new model of regional development agency, attached to the Regional Ministry for Innovation, Science and Enterprise, which brings together the experience accumulated by the Instituto de Fomento de Andalucía (Andalucia Development Institute, created in 1987) and which marks out new ways in which to reach one consensual objective: to make Andalusia an avant-garde region in the field of the most advanced economies.

MISSION:To contribute to the economic and social development of our region, offering the best services to Andalusian companies, to the entrepreneurs and to the Junta de Andalucia (Andalucia Regional Government), encouraging business spirit, innovation, and co-operation within the system of science-technology-business and the competitiveness of our productive structure.

2.- THE NEW AGENCY

NEW STRATEGIC CONCEPTS:Governance. Innovation and territorial intelligence. Public private partnership. Entrepreneurship. Top class business support services.

The contribution of the Agencia IDEA to the development of Andalusia has been through two elements and with the support of the ERDF:

- The Andalusia Global Grants (SGA)

- The establishment of a Regional Innovation System

3.- SGA

- It belongs to the Integrated Operational Programme for Andalusia (IOPA 2000-2006).- AGENCIA IDEA= Intermediary body. - The procedures for the use of the global grant is the subject of an agreement between the managing authority and the intermediary body.- The Agencia IDEA has managed three global grants:•1991-1993 ( 78 Meuros)•1994-1999 ( 308 Meuros)•2000-2006 ( 446 Meuros – ERDF: 333,096 M€)- Its main objective is to support and promote regional SMEs- Typology:

-> Creation of companies-> Modernization of companies-> Competitive co-operation-> R+D+I

3.- SGA – Figures - Status as of June 30, 2006

Number of projects: 14,403Public spending:

Commitments: 469.16 M € Payments: 332.43 M €

Total investment: 4,140.94 M €New jobs created: 28,529

446,51

469,16

332,43

0,00 50,00 100,00 150,00 200,00 250,00 300,00 350,00 400,00 450,00 500,00

In millons of euros

Public Spending 2000-2006

Commitments

Payments

Andalusia Global Grant 2000-2006: Financial status of public spending as of June 30, 2006.

3.- SGA – FINANCIAL INSTRUMENTS (I)

-Venture Capital:1999 – Constitution of Andalucía 21 with the Andalusian savings banks (Total Funds:

18 M€; Agencia IDEA/EDRF: 9 M€ -50%-; Invested: 15,735 M€; Projects: 9)2002 – Constitution of Andalucía Capital Desarrollo with the participation of

European Investment Fund (Total Funds: 36 M€; Agencia IDEA /EDRF: 4 M€; EIF: 12,5 M€; Invested: 15,25 M€; Projects: 5)

2006 – In Constitution a new Fund “GED IBERIA SUR “ with an interregional coverage -Andalusia, Extremadura and South Portugal- (Target size: 50 M€; Agencia IDEA:12 M€; EIF: >7 M€)

-“CAMPUS instrument”It tries to give an answer to the universities’ and researchers’ need to transfer their

research results to the market. It also tries to promote the creation of new enterprises bus researchers, so that they can commercialize their research results. The project is aimed at creating technology based enterprises, based on new products or services resulting from research processes and funded trough seed capital (19 projects have been approved since 2004 for a total amount of Euros 963,218).

3.- SGA– FINANCIAL INSTRUMENTS (II)

-Reimbursable aidsAimed at young and women entrepreneurs, 21 M€ of participative loans has being

granted up to the date.

-Interest-rate subsidyAnnual Agreement signed with financial institutions since 1987.

-Support to Mutual Guarantee SchemesThrough agreement to support the reduction of the cost of guarantees.

-Grants

-Other forms of financing

4.- ESTABLISHMENT OF A REGIONAL INNOVATION SYSTEM (I)

Innovation constitutes one of the main driving forces of economic growthInnovation constitutes one of the main driving forces of economic growth and and favours the increase of productivity through the improvement of Andalusian enterprises favours the increase of productivity through the improvement of Andalusian enterprises competitiveness.competitiveness.

Agencia IDEA is encouraging the Innovation and its Protection in order to enhance the Agencia IDEA is encouraging the Innovation and its Protection in order to enhance the technology level of Andalusian enterprises and contributes to the establishment of a technology level of Andalusian enterprises and contributes to the establishment of a Regional Innovation System, in the majority of cases, with the co-financing from ERDF, Regional Innovation System, in the majority of cases, with the co-financing from ERDF, by means of:by means of:

Two Technological Parks (Seville and Malaga), an Industrial Park in Cadiz and an aeronautical industry Park in Seville.

Business Innovation Centres

Innovation and Technology Centres

4.- ESTABLISHMENT OF A REGIONAL INNOVATION SYSTEM (II)

Creation, impulse and/or management of half a dozen of business spaces.

Creation and development of clusters and local productive systems.

Participation in networks (EURADA) and European programs.

Innovation and Technology Transfer Centre in Andalusia (CITANDALUCIA)

Southern Europe Innovation Relay Centre (SEIRC)

The Technology Information Centre of Intellectual Property in Andalusia (CITPIA)

5.- CONCLUSION

1) The accomplishment of PPP helps to increase the efficiency in the utilization of the Funds.

2) The management of Venture Capital with criteria of market and the obtaining of capital gained derivative from the Funds, generate private investors’ confidence and will enable their participation in other Funds.

3) For certain typologies such as Seed Capital, it is very difficult to obtain the participation of private investors so they must be tackled through public funds (e.i. CAMPUS).

4) The Global Grant is an excellent tool for the implementation of measures in favour of SMEs because of its flexibility, specialization, stability and agility in the procedures.

5) The use of specialized instruments such as Global Grants or JEREMIE initiative seem adapted to support SMEs and Innovation in the next programming period.

Thank you for your attention

Miguel Angel Serrano www.agenciaidea.eswww.agenciaidea.es