Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” “Effectiveness of IST-RTD Impacts on the EU Innovation System” Experts Workshop, 14 th February 2007, Brussels ‘Vision Statement: from R&D to Growth’ Francesco Molinari, European Commission, DG Information Society and Media Directorate C “Lisbon Strategy and Policies for the Information Society” Unit C3 – “Evaluation and Monitoring” – BU31 00/52 Tender No. CPP 44A-2006 dated 22/07/2006

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” From R&D to Growth “Knowledge, meaning R&D, innovation and education, is a key driver of productivity growth. Knowledge is a critical factor with which Europe can ensure competitiveness in a global world where others compete with cheap labour or primary resources.” (Communication to the Spring European Council – “Working together for growth and jobs. A new start for the Lisbon Strategy” - Brussels, )

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” ICT role in R&D and Growth “The overall contribution to labour productivity growth from technical progress in the production of ICT goods and services has accounted for about 40% of EU labour productivity growth over the second half of the 1990s, compared with 60% in the US.” (The EU Economy: 2003 Review from Directorate General for Economic and Financial Affairs)

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Global Aim of this Study To assess how effectively IST-RTD and deployment initiatives are being exploited in systems of innovation at the Member State and Regional levels.

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Some Definitions Innovation is the local application of processed knowledge based on new information to existing production and commercial processes Hence it strictly relies upon learning processes Deployment is the typical process of innovation diffusion in economics, that is, the process by which new technologies spread across production systems over time Innovation is the first instant of a longer process of deployment Formalized and collective R&D is neither the only nor the prevalent component of innovation, especially for small firms and mature technologies System of Innovation: a set of organisations involved in the innovation process

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” The underlying “Vision”

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Scenario Overview Consortium P 1 B 1 B 2 B 3 B m… A 1 A 2 A n… Region A Region B Region C C 1 C 2 C 3 C 4 C n… Consortium P 2 Consortium P n Region J… J 1 J 2 J 3 J 4 J 5 J m… C1C1 C2C2 C3C3 CMCM Regional/Sectorial Clusters of Enterprises IST Research & Deployment Area Regional Systems of Innovation Business Community ? ? ? ? IMPACTIMPACT

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Our Theoretical Model At aggregate level, the growth of a business sector, region or country can be seen as the outcome of three sets of factors: (i) The creation of new idiosyncratic knowledge (autonomous innovation capacity); (ii) The sharing of codified knowledge within each network (networked innovation potential); (iii) The capacity to exploit the potential entailed by knowledge, independently of where it is created (knowledge spillovers absorption); (iv) A proactive learning and innovation environment These aspects will all be measured by analysing in a unified framework: IST-RTD and deployment networks, knowledge and socio-economic spillovers, locally grounded and hierarchically managed innovation systems.

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” To sum up, this Study… It’s an impact assessment exercise of EU-funded IST RTD and deployment at Member State and Regional level to economic growth and competitiveness It will be conducted at project level through an integrated VNA+PACE methodology at organisational level through IC measuring through direct interviews through case studies at regional level through VNA indicators and IC reporting at regional / Member State level through a statistical (macroeconomic) impact assessment

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Assumptions and Prior Research Findings From a systemic point of view, the processes involved in generating innovation at EU level are nonlinear, networked and with multiple feedback loops Knowledge spillovers are the ordinary way through which IST-RTD achievements are shared within the innovation networks and thus channelled towards market exploitation Therefore, traditional evaluative approaches, mainly focusing on the relation between inputs (e.g. mobilisation of additional finance) and outputs (e.g. number of patents generated, product innovations) are inadequate, as they leave the analysis of those dynamics relatively untouched IST-RTD is a complex, self-organising network of (networks of) organisations However, the research and deployment networks seem only partially overlapping to each other Collaboration in EU Framework is dominated by key ‘Knowledge Hubs’ (either Global or at Member State and Regional levels) that are mainly responsible in the generation and diffusion of scientific and technological knowledge

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Tender Requirements To assess, more systematically, whether and to which extent: IST-RTD and deployment results are integrated into local systems of innovation and deployment of Information Society initiatives. RTD, innovation and deployment activities strengthen European competitiveness at the Member State and regional level; EU, Member State and regional level institutional policy frameworks, actions and programs have a leverage effect on network creation and connectedness; Institutional incentives affect networks of innovators in the take-up of ICT; There are opportunities for greater synergy and linkage between RTD and deployment and how they could increase the impacts of current and future RTD and deployment activities; Systems of innovation feed back into research collaborations and where are located (if any) the common knowledge nodes/hubs or the overlaps between IST-RTD networks and IST deployment networks.

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Methodologies adopted The PACE Toolkit for Intangible Assets Evaluation See specific presentation by Apostolos Vontas Value Network Analysis See specific presentation by Verna Allee Intellectual Capital Reporting See specific presentation by Edna Pasher Case studies, Questionnaires / Interviews To complement the results of quantitative analysis Empirical investigation See next slides

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Methodologies adopted (foll.) PACE, VNA IC reporting, Case studies Macro Analysis

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Final Purposes of the Study To map, display and analyse the various networks of collaboration generated and supported by IST-RTD and deployment projects and programs (VNA and PACE); To understand the dynamics of value creation from participation in FP projects for the organisations and regions; To indicate what kind of policies have created more favourable environments for the innovation activity at regional level (case studies and questionnaires/interviews, IC reporting and VNA); To assess how the next EU programs supporting IST research, development and innovation activities can ensure an effective improvement of the local systems of innovation.

Experts Workshop Brussels, 14 th Feb 2007 “Effectiveness of IST-RTD Impacts on the EU Innovation System” Thanks for your kind attention Q&A