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Support for the coherent development of policies International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation.

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Presentation on theme: "Support for the coherent development of policies International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation."— Presentation transcript:

1 Support for the coherent development of policies International Conference on Entrepreneurship and Business Incubation - Strengthening the Regional Innovation Profile - Bremen October 2003

2 Support for the coherent development of policies Indicators for Regional Innovation Performance Fabienne Corvers European Commission DG Research

3 Support for the coherent development of policies Towards the knowledge-based economy l ERA (2000): European Research Area l Lisbon European Council (2000): vision ‘Europe to become the most competitive and dynamic knowledge- based economy in the world by 2010’ l 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’ l : RTDI top priority for EU

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

5 Support for the coherent development of policies Theoretical background New Economic Geography Source: Koschatzky, 2003

6 Support for the coherent development of policies  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 Support for the coherent development of policies Innovation is an interactive process The Chain-Linked Model of Innovation by Kline and Rosenberg, 1986

8 Support for the coherent development of policies The potential reach of public policies... 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 Source: Technopolis 2000, modified and extended by S. Kuhlmann, 2003

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

10 Support for the coherent development of policies Regional RTDI Indicators l Indicators: è powerful policy tool l Emphasis on input indicators è R&D expenditures by institutional sector è R&D personnel by institutional sector l Some output indicators è Patent and high tech patent applications è Employment in high tech sectors

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

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

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

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

15 Support for the coherent development of policies Source:Soete et al. 2001

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

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

18 Support for the coherent development of policies Source:FhG-ISI, 1995

19 Support for the coherent development of policies More information l Third European Report on Science and Technology Indicators ‘Towards a Knowledge-Based Economy’ l Communication on the Regional Dimension of the European Research Area adopted on europa.eu.int/comm/research/press/2001/pr0410en.html l ERA-NET Scheme net_en.html, net_en.html, l EUROSTAT


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