1. singer_Open Days University,Brussels, October 2009 1 Triple Helix – social innovation: is Croatia ready for it? Slavica Singer J.J. Strossmayer University in Osijek, Croatia UNESCO Chair in Entrepreneurhsip www.pspefos.hr

2. singer_Open Days University,Brussels, October 2009 2 Are we ready to cope with… Global issues that are not avoided by anyone: –Poverty –Climate change –Energy –Recession Croatian local issues: –Low competitiveness, low innovativeness –Political and economic transitional processes – EU accession process –Regional development imbalances (uneven access to opportunities) How ? - Triple Helix model – PROBLEMS CANNOT BE SOLVED AT THE LEVEL AT WHICH THEY EMERGED – INNOVATION IS NEEDED www.pspefos.hr

3. singer_Open Days University,Brussels, October 2009 3 Triple Helix – social innovation From fragmented actions to cooperation From bilateral to trilateral cooperation From bureacratic structure to lateral, open innovation space

4. singer_Open Days University,Brussels, October 2009 4 Triple Helix Spiral model of innovation process - multiple relations in the capitalization of knowledge – HYBRIDIZATION (Etzkowitz, 2000): –Internal ENTREPRENEURIAL transformation of each of the actors University Business sector Government –Mutual influence of each of the actors –Creation of a new level of trilateral networks for creating new ideas and forms of high-tech, high- touch development www.pspefos.hr

5. singer_Open Days University,Brussels, October 2009 5 Triple Helix – where to start? From any stakeholder –University, government, business sector On any level –Subnational, national, international www.pspefos.hr

6. singer_Open Days University,Brussels, October 2009 6 Why is Triple Helix so important for Croatia? Short supply of everything (from educated people to roads) Sharp asymmetry of having less and needing more than others –Triple Helix – needed practical tool for rational usage of very limited soft (knowledge & commitment) and hard resources (money)

7. singer_Open Days University,Brussels, October 2009 7 How to survive in the globalized world – case of Croatia Mega changes of the political and economic system (1990ies) War (1991-1995), neither war nor peace (1995-1998) www.pspefos.hr

8. singer_Open Days University,Brussels, October 2009 8 Case of Croatia, 20 years later EU accession process Transition from resource-driven to innovation-driven economy –Why it is not faster? Low innovativeness – innovation performance EIS 2008: among the slowest catching-up countries Low share of growing businesses Low level of graduates Lack of government support for innovative ventures Lack of venture funding (business angels, venture capital)

9. singer_Open Days University,Brussels, October 2009. 9 www.pspefos.hr Croatia Brussels Osijek

10. singer_Open Days University,Brussels, October 2009 10 Eastern Croatia Rich in natural resources (soil, water, wood, climate) Higher unemployment (22% to 65%) More necessity based entrepreneurs (motivational index for entrepreneurial acitivity: TEA Opportunity / TEA Necessity): 0.5 vs. 1.16 in Croatia, 3.2 in Istria GDP/pc: 2,500 EUR vs. 8,000 EUR in Istria, or 19,000 EUR in Zagreb Young people are leaving Plus…. www.pspefos.hr

11. singer_Open Days University,Brussels, October 2009 11 Mine suspected areas in Croatia

12. singer_Open Days University,Brussels, October 2009 12 Vukovar 18 November 1991 www.pspefos.hr

13. singer_Open Days University,Brussels, October 2009 13 Case of Osijek: our answers, fragmented NOA, microcredit institution, 1996, USAID Center for Entrepreneurship, 1997, Open Society Institute –Franchise Center, 2003 –Family Business Forum, 2003 University based Master’s Degree Program in Entrepreneurship, 2000 Business Incubator, 2002 CEPOR, SME Policy Center, Zagreb, 2001 www.pspefos.hr

14. singer_Open Days University,Brussels, October 2009 14 Eastern Croatia: strategic choices, 2005 Strengths Education industry Natural resources Industrial and craft tradition Airport Opportunities EU accession Global trends Weaknesses Raw material providers Financially weak local government Politization instead of profesionalization Threats Young people leaving 1 2

15. singer_Open Days University,Brussels, October 2009 15 Case of Osijek Where we are now? –Lagging behind Where we want to be? –To become the region with the fastest growth rate of GDPpc in Croatia How to achieve it? –Strategic alliance for development

16. singer_Open Days University,Brussels, October 2009 16 Waiting for Godot, or… To develop an enterprising society based on individual and institutional capacity for: Innovativeness Competitiveness Cooperation www.pspefos.hr

17. singer_Open Days University,Brussels, October 2009 17 Case of Osijek: looking for proactive answers Strategic vision for the region 2005- 2015 –Osijek Baranya County: The County where young people want to live –Municipality of Osijek: From industrial to intelligent city www.pspefos.hr

18. singer_Open Days University,Brussels, October 2009 18 Case of Osijek– development scenarios City without changes City where young people want to live Dow Jones index for evaluating a business: –Attracting / losing talented people

19. singer_Open Days University,Brussels, October 2009 19 Scenario 1: county/city without change Unemployment stays unchanged

20. singer_Open Days University,Brussels, October 2009 20 Scenario 2: Intelligent city Creating a technology-use culture Networking of institutions Vibrant entrepreneurial environment Entrepreneurial local self-government

21. singer_Open Days University,Brussels, October 2009 21 Recommendations 1 P1: Broadband coverage of Osijek P2: Investments in campus, Technology Park and International Center for Entrepreneurial studies P3: Services related to intellectual property rights + venture fund in partnership with the banks, business community and university

22. singer_Open Days University,Brussels, October 2009 22 Recommendations 2 P4: Development of digital democracy P5: International advisory board to the mayor P6: Branding strategy based on the vision of transformation of Osijek from industrial to intelligent city

23. singer_Open Days University,Brussels, October 2009 23 Risks Inability to create positive energy (lack of leadership capacity for leading positive change) Fear of changes Not knowing how to implement strategy Inability to network everyone responsible and everyone interested

24. singer_Open Days University,Brussels, October 2009 24 Accountability test 1 Learning region: is “value adding” process possible? Yes, but willingness and knowledge are needed in participants of the Triple Helix process www.pspefos.hr

25. singer_Open Days University,Brussels, October 2009 25 Accountability test 2 For the University: –To link the roles of teaching, research and community service by internal mechanisms –To introduce reality tests Employability of students Ability to participate in solving local development problems For the Local Government: –To cooperate with the university on all facets of the development process (skills enhancement, technological development and innovation, development of enterprising culture) For the business sector: –Strengthen the innovaton capacity www.pspefos.hr

26. singer_Open Days University,Brussels, October 2009 26 Triple Helix emerges if… –Public sector is decent (efficient, transparent, innovative) –University is autonomous and accountable, entrepreneurial –Business sector is competitive (productive, innovative, opportunity based) www.pspefos.hr

27. singer_Open Days University,Brussels, October 2009 27 But, why Triple Helix is not there, yet? Low innovation capacity of the business sector (low demand for knowledge) Teaching-oriented universities Governments overwhelmed with developmental issues, but without a strategic framework –Role of governments in transitional countries in supporting innovation climate was temporarily lost (Etzkowitz, 2006) –From too much government to idealistic “hands off” economy

28. singer_Open Days University,Brussels, October 2009 28 What is missing? Policy (strategic) framework Trust among major stakeholders –Business sector does not trust universities –Universities are waiting to be approached Interlinked mechanisms –E.g. technology parks, incubators… Public awareness of the importance of knowledge-based entrepreneurship

29. singer_Open Days University,Brussels, October 2009 29 Some conclusions Transitional costs of the slow catching-up process are huge Without Triple Helix there is NOT enough capacity to handle such scale and intensity of changes needed for catching-up Subsidiarity principle - everyone is accountable for establishing innovative society based on hybridization of knowledge

30. singer_Open Days University,Brussels, October 2009 30 Challenges Schumpeterian challenge - too little destruction, too little creation –The worst scenario Partnership for Growth and Jobs –The best scenario Changes are possible, but political will, expert leadership and knowledge are needed

31. singer_Open Days University,Brussels, October 2009 31 Can we… Implement the principle of CREATIVE DESTRUCTION for opening new ways of organizing knowledge and pedagogy on the campus (Schumpeter) Create entrepreneurial university culture based on the expectation that university should be a true MOBILIZER and EQUALIZER for empowering young people for opportunities in a society (Timmons) Develop entrepreneurial university organisation for PURSUING OPPORTUNITIES regardless of current resource limitations (Stevenson) Define the university mission as to equip young people with knowledge and skills for jobs of the 21st century: PROBLEM IDENTIFIERS, PROBLEM SOLVERS, IDEAS BROKERS (Reich) www.pspefos.hr

32. singer_Open Days University,Brussels, October 2009 32 In order … To move universities from ignoring and observing toward participating and leading positive change in their surroundings www.pspefos.hr

33. singer_Open Days University,Brussels, October 2009 33 Can you imagine… Universities that change themselves and the world around them Responsible governments that serve the needs of their citizens Business sector that is socially responsible

34. singer_Open Days University,Brussels, October 2009 34 Two calls for action On the institutional level: –Universities should be pushed, demanded… to become RELEVANT and ACCOUNTABLE –Free movement of students, faculty, researchers and administrators/leaders On the policy, national and EU levels: –Triple Helix to be used for developing consistent policies, programs and instruments to link together national and international efforts in helping developing countries to catch-up

35. singer_Open Days University,Brussels, October 2009 35 www.pspefos.hr Contact Slavica Singer J.J. Strossmayer University in Osijek UNESCO Chair in Entrepreneurship Gajev trg 7 HR-31000 Osijek, Croatia Phone: +385 31 224 444 Fax: +385 31 224 438 E-mail: singer@efos.hrsinger@efos.hr www.pspefos.hr