1. Audit of Innovation in the BMW Region An Evaluation of a Regional Knowledge Economy Gerry Finn, Director

2. 1.Why do an innovation Audit? 2.Approach Undertaken 3.The BMW Region Challenges & Opportunities 4.Performance of the Innovation System 5.Conclusion, Recommendations & Next Steps Presentation Overview

3. 1. Why do an Innovation Audit? Regional Innovation has been a key priority for the BMW Regional Assembly for many years Innovation, ICT & the Knowledge Economy is the 1 st Priority of the BMW Regional OP 2007-13 (€200m out of €458m)

4. 1. Why do an Innovation Audit? Regional Assembly has managed two Regional Programmes of Innovative Actions (€3.1m) Several submissions made to Government on RTDI policy e.g. Strategy for Science Technology and Innovation, Innovation Taskforce

5. 2004 Audit of Innovation Benchmarking Document for Innovation Update and Revisit Progress Achieved Funding to Update Awarded Under Inter- Regional project 1. Why do an Innovation Audit?

6. A strong innovation system is one of the hallmarks of a knowledge- based economy BMW Region Challenge - Creating Sustainable Jobs - Current Lack of Higher Value-Added jobs Importance of a Functioning Innovation System?

7. - Government Policy: Building Ireland’s ‘Smart’ Economy Strategy for Science, Technology and Innovation (€1bn+ invested since 2000), Innovation Taskforce Central to the Programme for Government 2011 – Ireland as an Innovation Hub Importance of a Functioning Innovation System?

8. 2. Research Approach Adopted

9. + CISC (Centre for Innovation & Structural Change, NUIG) 2010 Audit of Innovation

10. Methodology

11. KIS = Innovation Service Providers Organisations (public or private) that provide Innovation Services i.e. Knowledge-based support, including applied R&D, innovation activities Positive impact on business processes and activities - thereby assisting them to innovate and grow. What are Knowledge Intensive Services?

12. R&D services; prototyping and design services; technology transfer services.; ICT services; innovation management; strategic consultancy; Public: Institutes of Technology, Universities, Publicly Funded Research Centres Private: ICT, R&D and Management Services Examples of Innovation Services

13. Role of Sector in the Innovation System? Participants in the Innovation System Framework for Delivery Outputs for Economic Development

14. 3. The BMW Region Challenges & Opportunities

15. Challenges for the Region to Turn Potential into Job/Growth Rural Region – High Reliance on ‘Primary Sectors’ Recession has impacted heavily on the BMW Region: lags on a range of economic indicators compare to the EU27 & S&E Region Up-skilling a key challenge – move out of the low-skills equilibrium

16. Challenges for the Region to Turn Potential into Job/Growth BMW Region’s Share of Public R&D Expenditure Remains Low e.g. 13% Programme for Research in 3 rd Level 11% Science Foundation Ireland Funding 19% Enterprise Ireland BMW National Share Population 27% - Labour Force 25% - Output 19% (GVA)

17. Business Expenditure on R&D by region, 2007 BMW Region 19% of Total BERD Expenditure in the State

18. Headcount of Research Personnel (Number) by Region, Sex, Year and Type, 2007 BMW Region 21% of Total Research Personnel

19. NUI Galway (St. Angela’s College) Athlone IT, Dundalk IT, Galway/Mayo IT Letterkenny IT, Sligo IT The Marine Institute (Oranmore) Teagac Rural Economy Research Centre (Athenry) Líonra- Collaborative Research & Innovation Strategy Applied Research Centres & Incubation Centres

20. Dynamic Knowledge-Led Sectors Emerging in the BMW Region Companies in the Knowledge Intensive Services Sector worth €1bn to Regional Economy (ICT, R&D & Management Services) World Leading Medical Devices Cluster, Galway (Manufacturing of Medical Devices, employing circa 9,000)

21. Other Leading Technology Sector Identified: Computer & Communication Hardware (6,500) Pharmaceuticals (6,100) Software and Communication Services (5,300) Graduate Employee Levels High (78%) Dynamic Knowledge-Led Sectors Emerging in the BMW Region

22. 4. Performance of the Innovation System 4. Performance of the BMW Region’s Innovation System

23. Why are Companies Engaging in the Innovation Process? Grow Sales, Turnover and Market Share Develop the Capacity/Skills of Employees Necessary for Survival

24. How is the innovation system performing in the BMW Region? Knowledge Transfer & Innovation Support Activities are a Priority HOWEVER funding limitations & concerns around return-on-investments in innovation remain a challenges for private companies Networks & Networking identified as key sources of information for the KIS Sector

25. Innovation is market- led rather than grant driven However public grants remain a key consideration How is the innovation system performing in the BMW Region?

26. 92% 77%

27. Challenges for Public Sector Slowness of Response Culture Gap between Academia & Industry:- Not Sufficiently Business Orientated

28. Challenges for Public Sector Lack of Co-ordination/Appropriate Points of Contact Inadequate Delivery/ Quality Issues Poor Understanding of Needs/Different Expectations Regarding Research Outcomes

29. Further barriers in the innovation system included: Lack of awareness of available funding Opportunity Cost of Investing in Innovation/R&D Activities Difficulty in access appropriate services How is the innovation system performing in the BMW Region?

30. 5. Conclusions, Recommendations & Next Steps

31. Dynamic cluster of knowledge intensive services – leading transition to knowledge/smart economy in the BMW Region Opportunities to exploit potential and translate to jobs and growth Conclusions, Recommendations & Next Steps

32. National innovation policy – Needs a more Explicit Regional Dimension (reflect local & regional economic realities, linkages/networks) Lead to the development of Regional Innovation Strategies + robust monitoring & evaluation systems Single point of industry/academia to address barriers to accessing services A bottom-up approach Conclusions, Recommendations & Next Steps

33. Greater exploitation of regional assets – identify the evident regional comparative advantages along with the innovation and capacity required to deliver the optimum output (Smart Specialisation) Build upon Líonra Collaborative Strategy Conclusions, Recommendations & Next Steps

34. More sustained investment is required in Innovation Centres & Incubation Centre to Commercialise R&D Activity The role of HEIs in knowledge and technology transfer should be expanded - could yield more tangible returns for Government invest in R&D EU co-financed ERDF focus on Innovation should be maintained Conclusions, Recommendations & Next Steps

35. www.bmwassembly.ie