Regional Innovation Strategies for Smart Specialisation 28 March 2017 Regional Innovation Strategies for Smart Specialisation How to Develop a RIS3 Xabier Goenaga Head of Unit Knowledge for Growth Institute for Prospective Technological Studies (IPTS) Joint Research Centre page 1 1

The current S3 Draft Guide Edited by JRC IPTS in association with DG REGIO and with contributions from: D. Foray, J. Goddard, P. McCann, K. Morgan, C. Nauwelars, R. Ortega-Argilés A number of Commission officials from various DGs Preliminary version circulated among ST and MG Dec 2011 and will be presented to regions in Jan 2012 To be reviewed in 2012 after feedback from users, MG, … The contents Policy rationale Governance issues Practical steps to design a RIS3 Peer review and monitoring Examples from case studies Policy instruments and horizontal dimensions

Policy intelligence pool Policy mix & pilots & targets 10 practical steps (non-sequential!) towards a RIS 3 – in a context of entrepreneurial process of discovery Analysis Scenarios Scope & process Policy intelligence pool Priorities Vision Policy mix & pilots & targets Review & Update Monitor& Evaluate Communication

Step 8: Strategic policy intelligence Running a RIS3 requires regional authorities to develop new skills and capacities Policy intelligence units with a qualified staff need to be established within the governance structure, to support the learning process of regional authorities An important mission of policy intelligence is to access and use knowledge from foreign regions and countries

Step 3 – Analysis of regional potential Analysing and assessing the potential crucial for prioritisation process Encourage and observe the outcome of the entrepreneurial process of discovery (EPD) Different regional typologies Build on advantages Supporting transformation

Step 1: Proposing a vision – “we have a dream” Shared Vision on the potential of the region and main direction for its international positioning: political endorsement mobilizing power ambitious but still credible A Top Technology Region! Unique cross-boarder region of Brabant, Limburg, Liège, and North Rhine-Westphalia The aim is to create a region that can compete internationally and thereby guarantee employment and prosperity for its inhabitants The focus is to close the gap in the “Knowledge-to-Skill-to-Till” chains in three specified sectors: Chemicals & Advanced Materials, High-Tech Systems, and Health Sciences

Step 4 – Scenarios Develop broad scenarios Discussion with wide regional audience Realistic view of the region’s position within an international perspective

Step 2: Process and governance – Ensuring participation and ownership Define its scope and its expected goal different stakeholders WILL have different expectations and agenda Encourage a EPD. Participation of the key actors A wide view of innovation Also services, public sector and non-technological innovation Collaborative leadership Lahti region in Finland Low level of education Low average household income No university Low in most innovation indexes. Inefficient Cluster policy environment New action model and new innovation environment! collaboration of all strategies, plans and bodies in the region Links to the most relevant R&D institutions outside the region expertise serving all industries and clusters among the most innovative regions in Finland design Practise based innovation

Step 5 – Selection of Priorities Decision-making step Clear criteria for filtering priorities Good governance is key Avoid risk of capture by interest groups and of lock in into traditional activities Outcome of EPD MODERNA - Navarra's New Economic Regional development model Identified new business opportunities in following sectors: Design and creativity Services to persons: related to active ageing, persons with difficulties, favour family life and work reconciliation Other: the audiovisual sector and personal safety, heritage and information.

The result of an entrepreneurial process of discovery (EPD) Reveals the domains of R&D and innovation in which a region is likely to excel given its existing capabilities and productive assets WHAT IT IS WHO IS INVOLVED “a self-discovery process¹” involving entrepreneurial trial and error as well as public policy to create more incentives for those entrepreneurs who are taking the risk of experimenting in new activities Entrepreneurs must be understood in a broad sense firms higher education institutions, public research institutes, independent inventors and innovators [1] R. Haussmann and D. Rodrik, “Economic development as self-discovery”, Journal of Development Economics, vol.72, December 2003

Step 6: Definition of policy packages The broad action lines corresponding to priorities Action Plan Pilot projects Experimentation of new policies to support good design Input for updating priorities The Action Plan should define: Programmes, instruments, initiatives to feed the actions Target groups Actors involved and their responsibilities Timeframes Funding resources for specific groups and projects

Step 10: (Peer) Review and update of RIS3 What to review? Being Place Based Achieving Critical Mass Entrepreneurial Discovery Being Outward-Oriented Being Future-Oriented Well performing system (IU self assessment tool) Formulating and implementing a RIS3 is a continuous process Need to regularly adapt and update the strategy Information and new insights are gathered during implementation and are incorporated into a new version of RIS3

Step 7: Monitoring and evaluation Monitoring aims at verifying the correct and efficient implementation of activities Evaluation aims at verifying whether and how policy goals are met – based on outcome indicators OUTCOME INDICATORS Each region chooses, according to agreed general principles, those indicators that are most suitable to track the progress of its own programmes towards place-based policy goals A strategy might be aimed at more than one outcome (i.e. different dimensions of well-being and progress) The choice of outcomes should be the result of a deliberative process Outcome targets are established whenever possible, i.e. the values of the outcome indicators which policy action aims to achieve

Step 9: Communication of the RIS3 Good communication is crucial: To ensure RIS3 endorsement by all stakeholders of the region To possibly embark new stakeholders, that are not yet part of the project Informing the public opinion of the necessity to support the development of knowledge-based businesses Communication is needed all along the process (in all the design steps) What is most needed 4 lessons from past RIS: Positioning the RIS3 project in a national and European context Identifying the different stakeholder groups and their different needs Traditional tools (press campaign, web, seminars …) Active tools (targeted visits to stakeholders, local meeting, discussions …)

Thank you! Knowledge for Growth Unit: http://ipts.jrc.ec.europa.eu/ataglance/knowledge_for_growth.cfm The Smart Specialisation Action website: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/s3platform.cfm Email: xabier.GOENAGA@ec.europa.eu