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International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile - Bremen 16-17 October 2003.

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Presentation on theme: "International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile - Bremen 16-17 October 2003."— Presentation transcript:

1 International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile - Bremen 16-17 October 2003

2 Indicators for Regional Innovation Performance
Fabienne Corvers European Commission DG Research

3 Towards the knowledge-based economy
ERA (2000): European Research Area Lisbon European Council (2000): vision ‘Europe to become the most competitive and dynamic knowledge- based economy in the world by 2010’ Barcelona European Council (2002): target ‘3% GDP average investment in R&D by 2010’ and ‘2/3 financed by business, 1/3 financed by government’ : RTDI top priority for EU

4 The European Research Area
New vision for European research Avoid 15 (25) + 1 policy framework Reduce fragmentation of effort Improve use of scarce resources Important role for regions Message: need to pay more attention to regional actors and factors within EU and MS research policy Role for regions: bridging the gap between knowledge creators and knowledge users in each region Starting point: identification of regional needs

5 Theoretical background
New Economic Geography Source: Koschatzky, 2003

6 Macro level: National innovation systems, ‘learning economy’: impacts of national institutional fabric on innovation processes and on the competitiveness of firms Meso level: regional innovation systems, learning regions: argue with governance structures/MLG relationships; public vs private, old vs new economy innovation systems Micro level: different cluster, network and milieu-oriented approaches: spatial proximity, external effects, knowledge spillovers, culture and identity, embeddedness

7 Innovation is an interactive process
The Chain-Linked Model of Innovation by Kline and Rosenberg, 1986

8 The innovation system model: a heuristic tool
Framework Conditions Financial environment; taxation and incentives; propensity to innovation and entrepreneurship; mobility ... Education and Research System Professional education and training Higher education and research Public sector research Industrial System Large companies Mature SMEs New, technology- based firms Intermediaries Research institutes Brokers Consumers (final demand) Producers (intermediate demand) Demand Banking, venture capital IPR and information Innovation and business support Standards and norms Infrastructure Political System Government Governance RTD policies The potential reach of public policies ... Source: Technopolis 2000, modified and extended by S. Kuhlmann, 2003

9 Regional innovation system
Science sector/ Technology supply innovation systems national and supranational Universities Engineering Research facilities Economic services TT Institutions Innovation Policies Financial support services Technology-related information and training Regional policies Networking Consultancy National/international policies between the Venture capital different elements of Technology centres/ Infrastructure science parks the regional Customers Industrial base Technical innovation Suppliers infrastructures system Competitors Potential and actual educational level of the workforce Sub-contractors Sectoral/ Technological Quality of living Cooperation Regional environment partners "Milieu" or environment R&D Inter- firms "innovative culture" innovation systems relations Investments Firm's branch Employee and size qualification Firms' R&D efforts Source: Koschatzky, 2003

10 Regional RTDI Indicators
powerful policy tool Emphasis on input indicators R&D expenditures by institutional sector R&D personnel by institutional sector Some output indicators Patent and high tech patent applications Employment in high tech sectors

11 More output indicators needed
Innovation expenditure as a percentage of turnover Increase in market share due to new/improved products or introduction of new/improved processes changes in labour productivity over the past 5 years Even more process indicators needed Linkages between knowledge creators and knowledge users within region (university-industry) Linkages of regional knowledge creators and users with those outside region (mobility, joint projects)

12 Advantages and Disadvantages
Input/Output indicators: Components of regional innovation system Focus on capacities in terms of resource endowment (‘knowledge stocks’) Criticism: static view of the region Regional data: available and EU-wide comparable Process indicators: Interfaces between components of RIS as well as between RIS and external world (‘knowledge flows’) Idea: quality of interfaces determines innovative capabilities of system (dynamic view) Limited availability of (EU-wide comparable) data

13 Four dimensions to measure the performance of innovation system
Research capacity: proportion of scientists and engineers (S&E) in the workforce; public investment in R&D (GOVERD and HERD); number of scientific publications produced per capita Social and Human capital: percentage of GDP spent on education; percentage of working population with third-level qualifications; the degree of participation in life-long learning

14 Technological and innovative performance:
amount of R&D performed by industry (BERD as a % of GDP); number of patents per capita; innovation expenditure as % sales Absorption capacity: capacity of firms to renew product ranges; improvements in labour productivity; overall trade performance

15 Source: Soete et al. 2001

16 Possibilities with regional RTDI indicators
Single dimension Top 10 of ... Matrix of two dimensions, e.g. regional GDP and R&D expenditure (GERD) R&D investments (GERD) and R&D performance (patents) R&D expenditures by institutional sector and source of funding by institutional sector More than 2 dimensions: single index and composite indicator

17 Combining RTDI indicators with other regionalised indicators, e.g.
share of total employment in agriculture share of youth unemployment share of highly qualified people on labour market Develop new indicators and design data collection methods (survey, expert panels, interviews, …) To measure quality of intra-RIS linkages To measure extent and nature of extra-RIS linkages (trade, import of equipment, foreign investments in region, investments by regional firms abroad, …)

18 Source: FhG-ISI, 1995

19 More information Third European Report on Science and Technology Indicators ‘Towards a Knowledge-Based Economy’ Communication on the Regional Dimension of the European Research Area adopted on ERA-NET Scheme EUROSTAT

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