1. From coal mining to mind mining – towards a knowledge driven economy in the Silesia Voivodship Luk Palmen Project manager

2. Knowledge, Innovation, Growth  Globalisation and regionalisation  Regional Innovation Systems  Clusters and networks  Innovation culture Creating a knowledge driven economy:  Securing access to “global resources” of knowledge, finance and distribution networks  By embedding SMEs in regional innovation systems that are able to generate considerable new „added value” for regional economies in a European and global context

3. Silesia Voivodship

4. Main characteristics of the Silesia Voivodeship DescriptionSilesiaPoland Area (km 2 )12,331312,685 Population 31.XII.2002 r.4.7 mln38.2 mln Population density (people/ km²)384122 Urban Development rate (%)79.061.7 Demography: amount of people  in preproduction age  in production age  in post production age as a percentage of the total population 21.0 64.2 14.8 22.7 62.2 15.1

5. Main characteristics of the Silesia Voivodeship DescriptionSilesiaPoland GDP per capita (PLN)*21,206. 0 19,430. 0 Amount of people employed **1.5 mln12.5 mln Structure of working population (%)  agriculture, fishery  industry and construction  market services  non-market services 4.8 38.7 39.0 17.5 17.3 28.5 33.5 20.7 Employment rate41.943.7 Employment in the private sector (%)63.371.3 Employment in SMEs (%)**50.767.1 Unemployment rate (registered) (%)16.518.0 */ data for 2001 **/ situation on 31.XII.2002

6. Main characteristics of the Silesia Voivodeship DescriptionSilesiaPoland Amount of economic units on 1.000 inhabitants (units)88.390.7 Amount of companies with foreign capital on 10.000 inhabitants (unit) 8.212.3 Amount of SMEs on 10.000 inhabitants (unit)**853872 Production sold on 1 inhabitant in PLN  przemysłu  budowlano-montażowa 18,190 1,704 13,374 1,750 Amount of units in R&D sector97838 Employment in R&D sector on 1,000 people employed3,74,5 Expenditure on R&D:  per 1 inhabitant (PLN),  as relation GERD/GDP (%)* 73 0,39 120 0,65 IPR, amount of:  New patent applications  Patents registered and qualified 356 129 2313 834 */ data for 2001 **/ situation on 31.XII.2002

7. Main characteristics of the Silesia Voivodeship SME innovativeness in the Silesia Voivodeship Very innovative companies Medium innovative companies Low innovative companies Modern, open for innovation and active Innovative solutions are new on the domestic and international market Supra-local nature of sales structure (domestic and foreign markets dominate) High dynamics of changes in employment (rise) They have limited and less stable contacts with a small group of partners Lack of a determined development strategy Innovation is new only for the company itself, on the local and domestic market Medium dynamics of changes in employment (rise and fall) Focus on surviving Low interest in innovation Innovative solutions are new only to the company itself Local nature of sales structure (local sale markets dominate) Stagnation in employment Approx. 10% SMEApprox. 60% SMEApprox. 30% SME

8. Main characteristics of the Silesia Voivodeship Great share of SMEs in 10 sectors of industrial processing:  Production of chemicals, chemical articles, and synthetics,  Production of machines and equipment  Production of machines and electric apparatus  Production of mechanic vehicles, trailers and semi-trailers  Production of gum and plastic articles  Production of non-metal goods  Production of metal finished goods  Production of food and beverages  Textile industry  Production of cast and steel and iron alloys

9. Main characteristics of the Silesia Voivodeship Technologies of industrial automation and material engineering developed by the regional R&D sector are successfully integrated in traditional industry. 3 Centres for Advanced Technologies and several centres of excellence are currently developing integrated research teams with strong links to industry in the fields of  Biotechnology including bioengineering and health technologies.  Technologies for energy sector including technologies of energy production from renewable sources, combustion and thermal recycling of waste as well as energy saving.  Technology for environment protection including biogeochemical engineering and waste management.  Information and telecommunication technology.  Production and processing of materials including advanced materials.

10. Main challenges in the Silesia Voivodeship StrengthsWeaknesses High GDP per capita in comparison to the rest of Poland Large regional consumer market Large amount of foreign investments allocated in the region Diversified economy Large amount of supplier companies in Europe’s main industrial sectors Growing importance of service sector in creating added value in regional economy Large amount of R&D institutes and human resources in the R&D sector Large amount of business support organisations Technically high qualified workforce on the labour market Dense technical infrastructure (transport, telecommunication, etc) Low level of yearly GDP growth High amount of micro-companies generating only a small amount of added value in regional economy Most of small companies work on the local markets and are not prepared for international business activities Large amount of small companies that are dependent on large companies being restructured Low level of export activities in SMEs Low percentage of R&D investments in relation to regional GDP Negative image of the region abroad

11. Regional Innovation Strategy of the Silesia Voivodeship 2003-2013  Mission: Imagination creates Reality  Vision: Regional Innovation Strategy will support development of a constructive climate for innovation in the Silesia Voivodeship in a way that creativity and synergy through co-operation in the process of elaborating, improving and implementing innovative solutions will contribute to a raise of the region’s innovative level strengthening the competitiveness of the region’s economy in comparison to other regions in the European Union

12. Regional Innovation Strategy of the Silesia Voivodeship 2003-2013 Strategic fields and aims  Increasing the percentage of innovative SMEs: –Improving the business climate –Supporting excellence in SMEs  Accelerating and improving the use of the R&D potential: –Supporting excellence in the R&D sector –Providing into the R&D sector those technologies that are necessary to guarantee competitiveness of regional economy  Developing a regional innovation system based on trust, creativity and excellence: –Developing partnerships for innovation –Supporting development of new innovative products and companies

13. Initiatives - Information Situation:  Shorter product and technology life cycles  Information is key for decisions Challenge:  Regional economic intelligence systems  Improved access to information tailored to needs of specific SME groups and even on individual level Key-initiative:  Regional Information System - Consortium of business support and R&D institutions  INNOBSERVATOR SILESIA

14. Initiatives - Financing innovation Situation:  On average innovation activities for 70% financed with own resources  SMEs face difficulties in financing innovation related activities: purchase of new machines (production lines), certification, specialised services, use of specialised equipment and machines of R&D institutions Challenge:  Measures under Structural Funds – absorption capacity in SMEs… Key-initiative:  Support in preparing project proposals under Structural Funds  Regional and local loan funds  Seed Capital and Start-up Fund  Business Angels Network

15. Initiatives - Advice and training Situation:  Lack of integrated quality training and advisory offer in the field of strategic management and knowledge management  Lack of co-ordinated offer in the field of certified systems of quality, environment, labour safety management; certificates of conformity for goods, materials, machines, control and measurement apparatus Challenge:  Tailored advice and training offers of business support institutions to SME needs  Monitor SME needs Key-initiative:  Silesia Consortium of Business Support Organisations  Regional investment program in IT – training online

16. Initiatives - Industrial design Situation:  Ever-changing customer demands, customised products, identity, culture, experience  Industrial design and product developments are indispensable components for developing innovative products and services by SMEs that try to specialise Challenge:  Regional networks focussing on integrated offers in the field of industrial design and product development Key-initiative:  Silesia Design Network

17. Initiatives - Clusters and networks Situation:  Low social capital in CEEC prevents from enjoying full benefits of existing sectoral growth potentials  First initiatives of clusters, but still bilateral contacts remain most important way of communication Challenge:  Clusters and networks to promote common activity in: research, industrial design and product development, market research and human resources development  Creation of sub-contractors networks, FDI  Technology clusters as part of restructuring R&D sector Key-initiative:  Pilot initiative on cluster development programme  Network for Technology Commercialisation

18. Initiatives - R&D sector Situation:  R&D activities went through diversification process since 1990, however still lack of marketing attitude in R&D institutions  Lack of integrated research and complex services  Technology life cycle ever shorter, increased risk of technology success Challenge:  Integrated R&D centres focussing on strategic economic issues gathering scientists and companies around specific research subjects in clusters  International networking Key-initiative:  3 Centres of Advanced Technologies  Centres of Excellence  Technology Platforms

19. CAT: creating learning networks

20. Initiatives - Intellectual Property Rights Situation:  Positive changes in legal framework, but still long procedures  Many entrepreneurs and inventors resign from applying for trademark protection, patterns or inventions because of high costs connected to procedures  IPR is seen as a cost not as an investment Challenge:  Streamline promotion, information and advisory activities in the area of intellectual property rights  Patent Funds to speed up commercialisation of state-of-the-art technologies Key-initiative:  Developing a new model for IPR-management  Technologies as a value creator – Patent Fund

21. Initiatives - Technology transfer Situation:  Technology transfer through co-operation among companies  Technology transfer through mediation between economic and scientific environment (technology push and technology pull)  Technology transfer through exchange of personnel between R&D institutions and companies Challenge:  Networks of centres of innovation support and technology transfer  Technology parks to facilitate specialised technology transfer to high-tech SMEs Key-initiative:  IRC – KSI – Regional TT network  Network for Effective Technology Commercialisation

22. Initiatives - Innovative start-ups Situation:  Establishing innovative start-ups based on research outcomes of R&D sector is still not common in CEEC  “Academic grey market”  Lack of financial instruments (Seedcorn, Seed, start-up, early growth)  Technologies often not registered and misperception between technological value from the part of the inventor and actual market value Challenge:  Integrated regional service offer for innovative start-ups  Innovation culture in education and R&D institutions Key-initiative:  Network for Technology Commercialisation  Entrepreneurship promotion in institutions of higher education

23. Network for Effective Technology Commercialisation Seed Capital, Patent Fund, Business Angels Universities and R&D Institutes Incubators and Technology Parks Centres of Advanced Technologies Centres of Excellence Technology Platforms Technology based Start-ups Technology clusters Innovative Business Clusters Regional Technology Transfer Network Entrepreneurship Promotion Programme at Universities Regional Consortium of Business Support Organisations Silesia Design Network Regional and Local Loan Funds Large companies Micro and SMEs Special Economic Zone Industrial sites Regional government Local government Students, scientists, undergraduates, employees

24. Conclusions  Regional Innovation Strategy = consensus  Silesia Declaration on Developing a Creative Innovative Region = culture  Regional Innovation System = value creation  Knowledge Driven economy = competitiveness  Structural Funds 2004 – 2006= creating  Structural Funds 2007 – 2013= implementing  Networking people= Giving innovation a face Enabling people to experience success

25. Thank you for your attention Luk Palmen