Tools for strategic governance of industrial innovation policy in Flanders Regions for Economic Change – Tools for smart regions 23 June 2011, Brussels Jan Larosse, EWI - Flemish Government

OVERVIEW Background on Flanders Developments in innovation policy Future strategy ‘Flanders in Action’ ‘Spearheads’: focussing innovation policy on 6 thematic clusters Recent developments in strategic governance Towards a more targeted innovation policy ‘New Industrial Policy’: an integrated policy for transformation Management Structure for NIP: new governance for targeted cluster policy Exploration of ‘smart specialisation’ OECD-project for new methodologies to support design and assessment of smart specialisation strategies Tools for designing smart specialisation strategies Call for collaboration in a S3 project: benchmarking strategic governance

FLANDERS: Key Figures Flanders: a prosperous region with an open economy in the core of Europe Population: 6.28 million (= 57.6% BEL) Language: Dutch (NL) Surface: 13.521 km² (= 45% BEL) GDP: €194 billion Export : 100.3% of GDP (BEL = 73.3%) GERD: €4.15 billion (+- 2/3 of BEL), of which €2.7 billion BERD (2009) % GERD/BBP: 2.12% (2009) Total public budget STI policy: €1.7 billion of which €1.07 billion R&D The region has constitutional competences on research, innovation and economic policy

Why ‘smart specialisation’ is important for Flanders ‘Flanders in Action’: strategic framework for a new growth path because of weakening competiveness and de-industrialisation Future project (starting 2006) of the Flemish government, supported by +100 stakeholder organisations (‘Pact 2020’), Responding to competitiveness problem; aiming at a ‘top 5 region’ position in Europe = transition towards an innovation driven growth model, Consensus that STI investments should be focussed on ‘spearheads’: domains that can position Flanders in future value chains with important societal and economic impact. STI Advisory Council (VRWI) selected 10 ‘spearheads’ (breakthrough initiatives) in 6 Cluster domains (still mainly technology driven) in 2008. The financial crisis imposed budget cuts. In 2011 the growth path resumed, but the budget constraint urges stronger prioritisation and focus.

Focussing on 10 spearhead initiatives in 6 ‘clusters’ Departure from pure ‘bottom-up’ innovation support policy Focussing public S&T resources on 6 ‘clusters’ identified by expert consultation Still large domains: how to make further choices? SWOT Analysis of Flanders vs EU EU Foresight Study with 15 key areas

NEW INDUSTRIAL POLICY: an integrated framework White Paper ‘New Industrial Policy (27 May 2011): Integrated policy platform for economic transformation A new Productivity Offensive Increase knowledge productivity in clusters (critical mass and specialisation) Support ‘lead companies’ ‘lead markets’ and ‘lead clusters’ Factory of the Future Transformational Sectoral Policy Focus on transformation strategies based on value chains, clusters and grand projects

Governance model for NIP Transformation needs new governance: ‘Innovation Direction Groups’ (R&I Advisory Council) to develop strategies for broad innovation areas (challenges) ‘Industry Board’ (international experts) will advise on targeted cluster policy to select lead clusters in these domains

‘Smart Specialisation’: exploring new methodologies Flemish innovation and industrial policy is in search of a method for making choices, to reach the targets of the Flemish ‘Pact 2020’, based on transformation of value chains, spearhead domains, lead-companies and open innovation, targeted cluster policy. Own frontrunner experiences: e.g. FISCH (Flanders Initiative for Sustainable Chemistry) Transformation strategy supported by broad mobilisation in sector = Strategic research; open innovation infrastructures; new bus. models Develop world-class industrial cluster via international benchmarking International policy learning: lead-role in new OECD project ‘Smart Specialisation in Global Value Chains’ Use of strategic monitoring & case-studies for ‘discovery’ of smart specialisation Aimed at criteria for identifying smart specialisations & design strategies S3 Platform: Call for Working Group on benchmarking strategic governance for smart specialisation, linked with OECD project

Tools for strategic monitoring: specialisation profiles 1. Benchmark comparative strengths in S&T and economic performance

Another tool: FOCUS MATRIX for Smart Specialisation Strategies 2. Identify smart specialisations at cross-road of regional innovation competences and market opportunities/societal challenges   DEMAND-SIDE SUPPLY-SIDE SOCIETAL CHALLENGES Energy/Resources/Health/Mobility/... MARKETS Value chain development Solutions Systems INTEGRATION P1 P2 TECHNOLOGY PLATFORMS Py Pz SMART SPECIALISATIONS CLUSTERS OPEN INNOVATION Competence development Education R&D Training LOCAL ATTRACTIVENESS COMPETITIVENESS EXCELLENCE

Another tool: cluster maps for smart specialisations 3. Map eco-systems for smart specialisations Idea Consult

Call for collaboration in S3 Platform What is new? Smart specialisation = interactive development of focus strategies in a (interdependent) knowledge-based economy Comparative advantage= a competitive and cooperative ‘positioning’ Joint ‘discovery process’, to align strategic partners in distinctive regional clusters (role of strategic intelligence) Multi-level policy framework (shared objectives, road maps, indicators) OECD project: design and assess smart specialisation strategies Discovery process, aided by strategic intelligence & adequate governance ‘Base-line’: measurement of specialisations and assessment of capabilities for developing smart specialisation strategies (templates) ‘Beyond the base-line’: real-life processes - case-studies on development of strategic cluster strategies; self-assessment tool for strategic governance Call for joint S3 project: benchmarking strategic governance (‘RIS 2.0’) Mobilising unexploited potential for value creation and productivity growth through complementarity of regions based on their comp. advantages Assessing & upgrading regional innovation strategies

Interested? Please contact me! Thank you Department of Economy, Science and Innovation (EWI) Koning Albert II-laan 35 box 10, 1030 Brussels www.ewi-vlaanderen.be | info@ewi.vlaanderen.be