SMART SPECIALISATION THE GOVERNMENT

PERSPECTIVE

- Cardiff University - 28 June 2012

BACKDROP - CHALLENGING TIMES Economic landscape : recession &

Eurozone crisis EU budget focus on driving high end

growth & maximising impact Concentration of investment on top

drivers of growth UK National Reform Plan targets Stronger performance management &

accountability More flexibility to align EU funds

(regional, social, rural and fisheries)

EU ‘COMMON STRATEGIC FRAMEWORK’ INVESTMENT THEMES

1. Innovation and R&D2. ICT: Improving access; quality and usage3. SMEs: Improving competitiveness, incl. in the

agricultural and aquaculture sectors 4. Shift to low carbon economy5. Climate change adaptation and risk management6. Environmental protection & resource efficiency7. Sustainable transport and unblocking key networks8. Employment and labour mobility9. Social inclusion and fighting poverty10. Education, skills and lifelong learning11. Improving institutional capacity for efficient

public administration

UK CHALLENGES FOR STRUCTURAL FUNDS

Increasing R&D spend & ‘localising’ national investment plans (TSB)

Improving access to finance for SMEs More renewable energy use NEETS / youth unemployment Higher level skills Financing through ‘financial

instruments’ (more loans / fewer grants)

‘LESS DEVELOPED’ REGIONS 2014-2020

GDP/head below 75% EU27 average

75%-85% EU co-financing available for wider range of activities

Safety net” of 2/3 of previous allocation for regions moving ‘up’ and out of this category

At least 25% spend must be from European Social Fund

Likely to be West Wales and the Valleys + Cornwall and Scilly Isles

‘TRANSITION’ REGIONS 2014-2020GDP/head between 75% and 90% of EU27

average60% EU co-financingSafety net” of 2/3 of previous allocation for

regions moving ‘upwards’ into this category

At least 40% spend must be from European Social Fund, of which 70% of each programme must focus on only 4 priorities, with 20% earmarked for tackling social exclusion at national level

80% ERDF to focus on only 3 priorities Likely to include :

– Devon– Lincolnshire– East Yorkshire & N. Lincolnshire– Shropshire & Staffordshire– South Yorkshire – Merseyside – Lancashire– Tees Valley & Durham– Highlands & Islands – Cumbria – Northern Ireland

MORE DEVELOPED’ REGIONS 2014-2020

GDP/head more than 90% EU27 average

50% EU co-financing

At least 52% spend must be from European Social Fund, of which 80% of each programme must focus on only 4 priorities

At least 20% ESF to focus on social exclusion at national level

80% ERDF to focus on only 3 priorities:InnovationSME competitivenessLow carbon and energy efficiency (at least 20%)

SMART SPECIALISATION: WHAT WE NEED VS WHAT WE WANT

UK strategy for stimulating R&D excellence Proven track record of world beating

innovation Smart specialisation as a ‘precondition’ for

receiving UK ERDF....does not apply...but We want....Locally transparent and locally

engaged innovation / R&D investment decisions.

We want....National innovation investment woven into local investment plans

NATIONAL LEVERS: TECHNOLOGY STRATEGY

Technology Strategy Board (UK national innovation agency) works with top companies in R&D to:Accelerate ‘the journey between concept and commercialisation’Connect the innovation landscapeTurn Government procurement into innovation driver & business opportunity Invest in priority areas based on potential to generate sustainable UK economic growth

TSB DELIVERS THROUGH....

Technology & Innovation (Catapult) Centres

Demonstrator Projects : Innovation Platforms (eg. Low Carbon Vehicles)

Support for networking & collaboration (incl. Knowledge Transfer Networks)

Support for SMEs (Grant for R&D, Knowledge Transfer Partnerships, Eurostars)

Procurement : driving innovation through government procurement

LOCAL LEVERS?

Universities Private sector R&D Social / business innovation?

? SMART SPECIALISATION: How do we deliver local impact from a partnership between national & local investment in innovation ?

Need to avoid cathedrals in the desert + sub-optimal fragmentation

KEY QUESTIONS What will shift the economic game?

How will the difference be measured?

How much & when?

Fuzzy boundaries?: o Different partnerships for different

issues? o Different geographies for different

issues?

Leadership? Governance?