1. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Introductory notes on the Fraunhofer ISI-project PD Dr. Knut Koschatzky Fraunhofer Institute for Systems and Innovation Research

2. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Objectives of the Fraunhofer ISI-project General collaboration agreement between the Provincia Autonoma di Trento and the Fraunhofer-Gesellschaft (endorsed 2001) Regional foresight study "The Science and Technology Base of the Provincia Autonoma di Trento: Capacities, Trends and Opportunities” by Fraunhofer Institute for Systems and Innovation Research (ISI) Goals of the project: Generate appropriate information through the use of ”strategic intelligence" for research and innovation strategies and policies Provide support, impulses and suggestions for the development of the regional innovation system Formulation and elaboration of fitting research and innovation priorities and policies

3. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Project Steps and Working Packages Strengths and Weaknesses Profile: information about the current state of the innovation system, over 40 Interviews, April Workshop Policy Recommendations for strategic further development of research and higher education system Examples from international cases Regional Foresight: develop a joint "vision" for the future and work out specific measures to make the region one of the leading regions internationally Vertical Component: Regional Participation and Consensus building, Interaction with regional partners and institutions

4. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Innovative atmosphere and a learning orientation of firms and the whole population What makes a good regional (innovation) system work? Close networking between firms, universities, research institutes, intermediaries, financial organisations and other agencies Existence of a local capital market and a certain degree of autonomous public funding and priority setting (governance) Networking and structural coupling Research funding system Entrepreneurship and Business community Interview results: Strengths and Weaknesses of Trentino

5. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Strengths and Weaknesses of Trentino Networking and Structural Coupling  Close informal networks, institutional 'thickness' and embeddedness  Rich innovation infrastructure  Interaction strong in local traditional industries (low-tech) and with spin-offs (high-tech)  Incentives for cooperation between industry and science (e.g., good quality and fit of research) –Cooperation between science and industry and within business sector (sectoral fragmentation) expandable –Intransparent transfer infrastructure and transfer initiatives in view of the user –Low share of foreign students and scientists –Incongruity between wealth of knowledge produced by public institutions and less than average innovative activities by private sector

6. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Strengths and Weaknesses of Trentino Research funding system  Good funding system (R&D budget 2001: 84,87 million €)  Broad consensus on priority setting on research and higher education  Start-up financing for localisation of new technology and knowledge fields  Sheltered area for building up national and international competitiveness  System integrating a diversity of disciplines – Strong public sector and high propensity for subsidies – Strategic priority setting in the funding system so far only little developed (although a competitive allocation of project funding is being practised) – Weak private finance sector – Financing of industrial R&D projects mainly from equity capital

7. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Strengths and Weaknesses of Trentino Entrepreneurship and Business community  Quite good economic performances of most of the firms  Relatively stable and static firms population (sectors and numbers of firms)  Advantage of a diverse firm structure: risk diversification in case of sectoral crisis  Quite a few successful high-technology spin-off/ start-up companies with a better level of exchange with foreign countries –Little developed entrepreneurial culture –Risk averseness of the population and missing economic pressure for developing an entrepreneurial spirit –Small industrial base (648 companies, of which 406 manufacturing industry) and dominance of small firms with limited possibilities to realise economies of scale –Fragmented / segmented firm structure: horizontal and vertical division of labour within firm sector underdeveloped –Low R&D and high-tech intensity in the regional industry

8. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Own Perception of Future Technological/Sectoral Strengths Information & Communication Technology / Artificial Intelligence Tourism, Art, Culture Agrofood Environmental sciences Green Biotech Physics & Material Sciences Sensors Mechatronics Microsystems E-Government

9. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Technological Specialisation of PAT 1990-2000 by Patents Source: European Patents in patent database PATDPA Technological fields with positive RPA index

10. Fraunhofer ISI Institute Systems and Innovation Research Trentino plus 10 Foresight Workshop 14-15 July 2003 (Trento) Conclusion of Strengths and Weaknesses Profile Certain economic/technological areas in Trentino have the potential to form the basis for building sustainable, internationally competitive advantages Necessity of more focused strategy for further development of research and higher education system decisive Aim of Foresight workshop: catalyst for jointly developing such a strategy