EURADA European Association of Development Agencies EUROPEERkick-off meeting EUROPEER kick-off meeting Bergen, December 2006 Christian SAUBLENS

Innovation in publicpolicy Innovation in public policy Traditional Awareness & legal framework Customised supporting services Basic services Grants Top-down approach based on supply One size fits for all New Intelligence and audit Standardised facilitating services (networking, interfaces). Added-value support services. Equity capital Bottom-up approach based on demand and needs Market segmentation - Pre start - Start - Growth - Gazelle - Stable - Lifestyle - Vulnerable - Low tech SMES - Minimum capability - Technology competences - Research competences

Determinants of innovation and technology-based competitiveness Education, skills, life-long learning –Entrepreneurship and SME creation –Creativity and innovation, design –Productivity Access to financial sources –Proof of concept –Seed and Business Angels –Venture capital –University spin-off/out funds –Repayable advances/grants –Public procurements IPR protection and valorisation Public and private investments in applied RTD Role of university in the regional innovation system Research centres attraction (FDI) Integrated approach

EU Policy Trends 2000 – 2004 Today o Mutual Learning through: -PAXIS -Gate to growth o Mutual doing through: - PRO-INNO INNO-Nets INNO-Actions - Europa Innova - Benchmarking = scoreboard o Mainstreaming of innovation in S.F. Early 1990 o Innovation Strategy RIS-RITTS o IRC

Pre-seed and early-stage financing Incubation models Spin-off/ technology transfer Entrepreneurship Innovation culture / political awareness PAXIS working areas of innovation excellence

Competitiveness and Innovation Framework Programme 2007 – 2013 CIP: four goals, three pillars Entrepreneurship and Innovation Programme (EIP) Intelligent Energy Europe Programme (IEE) Information and Communication Technology Policy Programme (ICT) 1. Enterprise (particularly SME) competitiveness 2. Innovation and eco-innovation 3. Competitive, innovative and inclusive information society 4. Energy efficiency and renewable energy sources

Topic ERDF Convergence ERDF Growth and Employment ERDF Territorial Cooperation ESFCIPEAFRDEFFFP7 Access to finance Article 4.1Article 5.1 dArticle 6.2 aArticle 11 Article 17.2 Article 18 Article 19 Article 20 RSFF (*) Capacities Networks and clustering Article 4.1Article 5.1 a Article 5.1 b Article 6.2 aArticle 3.1 d ii Article 12Capacities Supply of SME support services Article 4.1 Article 4.2 Article 4.4 Article 5.1 b Article 5.3 b Article 12 Article 21 Capacities SME support action EntrepreneurshipArticle 4.1Article 5.1 cArticle 6.1. aArticle 3.1 a i Article 10 Article 15 Article 49 a Support to innovation Article 4.1Article 5.1 Article 6.2 aArticle 3.1 d i Article 13 Article 14 Article 21 Article 22 Capacities R T DArticle 4.1Article 5.1Article 6.2 aArticle 3.2 a iii Article 37 jCapacities Human capitalArticle 4.10Article 6.1 dArticle 3.1 a i Capacities InvestmentArticle 3 Article 4.2 Article 3Article 28Article 49 aArticle 34Capacities (*) Risk Sharing Financial Facility through EIB loans Community Support at a glance

Value chain for innovation in SMEs Preconditions Awareness Intermediaries Profitability Public support Innovation Awareness & Audits Market pressure Outsourced RTD In-house innovation Risk shared innovation Seed capital Proof of concept IPR protection Investment in human capital Productive investment Market Tools Financial schemes Technology & technical centres IPR supports Clusters SME – Universities interface

What SMEs need from public policy? Competitive advantage = Research and innovation costs (capacities, capabilities, shared efforts) Access to technology and market knowledge Speed to entry new markets Access to talents and skills Access to funding sources Risk to introduce new products/services as well as commercialisation of new ideas or research results Disadvantage to be a SME (lack of critical mass, distrust of public procurements authorities, asymmetry of information, …) Lobbying for entry barriers to markets.

Main enterprises objectives and innovation Profit Growth Margin of profitSales CostsPrices Competition risk New market New product Product differentiation Process innovation Business model innovation Product or business model innovation Product innovation Product or business model innovation

Public funding to support innovation (I) Supply of funding: All money is not the same! Tax holidays Equity- BAN - Pre + seed capital - Venture Capital - Mezzanine Funding Finance- Loans - Grants - Guarantees Infrastructures - Incubators - Science parks - Technology centres Support services - Vouchers For advise - Skills availability

Public funding to support innovation (II) Demand improvement: Added value support services Investment readiness IPR Protection Networking Access to knowledge From ideas to market schemes (pre- commercial and commercial phase)

Publicfunding to support innovation (III) Public funding to support innovation (III) Intermediary support = Facilitators: no wrong door Innovation agency University – SME interface Mentors & coaches

Supporting the use of external consultants Patenting Economic intelligence and technology assessment Technology auditing and transfer Quality management Design, market research and product tests Prototyping and access to (benchmark) test stations Marketing of the outcomes of public and private research Partner search, joint venturing and internationalisation Access to business angels, seed capital and corporate venturing Spin-outs/spin-offs Coordination of clusters and technological parks Supply chain and cluster development Incorporation of new technologies in traditional products and processes International network eBusiness, broad band access, use of NICT Management and leadership capabilities in SMEs. List of advanced SME support services

Value chain Science Parks and Intensive Research Clusters Awareness & Investmen t readiness Private, Public and University RDT infrastructure Market- driven research activities Protection of intellectual property and availability of a technology transfer organisation Entrepreneuria l training and culture. Proof of concept Spin offs. Spin outs. Commercialisation of research outcomes Access to funding sources Market Prerequisites Public sector Interinstitutional collaboration Governance Leadership Vision Attractiveness Investment willingness Private sector Capacities Critical mass Sound financial enterprises Investment readiness Engagement in a research regional agenda Intermediaries Quality infrastructure Competences Capability Networking and clustering Implementation - Consensus building - Strategy design to support research intensive firms and commercialization of research results - Delivery mechanism of the strategy Tools - Finance including taxation holiday - Added value support services - Networks including interface between research centres/universities and enterprises - Infrastructures Skills. Education. Training. Placement of students into businesses RTDINSTRUMENTS OUTPUTS Capital Human Technology Financial Social

Favourable environment for entrepreneurship (I)  a strong science base  an entrepreneurial culture above the average  a capacity to generate fast growing start-ups (gazelles) and spin outs or spin offs  an attractiveness for talented people and students  a strong skilled workforce  availability of finance, especially seed and venture capital  a provision of added value business support services  a good location for research centres of big enterprises  availability of premises and high quality infrastructures  effective formal and informal networks  a supportive entrepreneurial environment  provision of international cooperation framework

 a strong leadership based on a few people sharing in common a vision, their willingness to make change happen, their agenda and their enthusiasm;  a few key goals;  a capacity to analyse the situation (SWOT, internal transparency);  a capability to draft and design the right strategy;  a will to build success and visible symbols;  a strong project management capability;  a good connectivity between major stakeholders. Favourable environment for entrepreneurship (II)

Main lessons learnt Integrated approach Good governance Innovation need to be embedded in the region and in enterprises Critical mass: talent, finance, entrepreneurs Top class support services Work through market segmentation –high growth potential start-ups –world champion in market niche.

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