Supporting the entrepreneurial discovery process at regional level Brussels, 14th of December 2011 Christian SAUBLENS EURADA’s CEO

Integrated support for SMEs at regional level New challenges need new approaches Integrated support for SMEs at regional level Research Innovation Skills IPR Compliance with standards and safety rules Prototype Proof of concept (technology and market) Demonstration Market replication Clients (public procurement / private sale) Enabling technologies and service innovation Feasibility support for R&D proposals

Types of innovation New knowledge, competences, technologies New products, technical solutions, production processes New services New designs or brands New business operating models New systems and networks New life style ways New working practices, organisations or management models Public service realised in a new way

What is driving innovation ? Today, public policies are based on: Looking backwards Benchmarking Applying fashion concepts But how do enterprises innovate? Creating new ideas Re-using existing ideas in a new form Giving old ideas a new life Absorbing/ imitating innovative ideas Following new consumers’ demands

The dimensions of support for R&D+I 1. Approach to R&D+I 2. Nature of the support Research Activities Design & Prototyping Research centres Human Capital Infrastructure Science parks IP protection Incubators & networks Start ups Financial support Enterprises New products/services Enterprise growth Non-financial support New business models Training Public procurement Market Knowledge (people/talent) Skills Market replication Technology transfer Tourism Mentoring/coaching Sectors ICT & e-business Consultancy Enabling technologies Manufacturing

Implementing mechanism PURCHASE  Call to purchase a product/service/equipment  Procurement for innovation (outcome based challenge)  Pre-commercial procurement  Negotiated public procurement TAX HOLIDAYS  For R&D+I  For training  For investment including FDI In free-zones For private investors IN-HOUSE SERVICE    Recruit people to provide a service IN KIND SUPPORT Competition/reward Soft landing offices INDIRECT SUPPORT  Vitrine technologique  Living labs to showcase innovative products/services  Cofinance investment in human capital  Use of infrastructure as demo/labs for the testing of new products/services DIRECT FUNDING   Call to provide grants: 100%, 50%, 25% Repayable advance Vouchers Proof of concept DEVELOPERS  Build and rent (estate such as incubators, industry park, science park, …) Build and charge (utilities, networks,…)  Package of support to attract an investor (free zone, roads to a plant,…) OUTSOURCING  Create a fund (guarantee, seed, VC, micro-credit, loans, mezzanine, business angels side car fund…)  Create an intermediary organisation to provide services (RDA, RIA, FDIA, Technology centre, institute)  Support a structure to chanel support (pôle de compétititivité, cluster, BAN …)  Public-private partnership  Concession

Assets review Infrastructure (tangible and intangible) Human Financial R&D Innovation Natural and cultural Sustainable development Institutional and administrative Attractiveness for FDI & talent

Governance and strategy Source: EURADA

Triple to penta-helix model « Silicon Valley »-an model European model Universities and research centres Public & private Talent attractiveness Universities and research centres Public SMEs and civil society Private investors START-UP & SPIN-OFF CAPITAL RISQUE B.A. & V.C. LARGE ENTERPRISE PUBLIC GRANTS

The knowledge challenge Creation of new knowledge Technology Service innovation and/or non-technological innovation Commercialisation of new products/services based on new knowledge Knowledge-based region technology leaders start-ups gazelles licensing Others access to knowledge absorption of knowledge diffusion of knowledge

Knowledge cycle in a region Depreciation ? Relevance of RDTI Outsourcing Offshoring Delocation People Traditions, know-how Patents Existing Creation Customisation Exploitation Anchoring Research Experimentation Living labs Imitation Adaptation Partnership Knowledge transfer Talent attraction Knowledge take-up by enterprises Foresight Market intelligence Stakeholder interaction Licensing Innovative products/services Start-ups Clusters Source: EURADA

Cross-sectorial technology platforms Source: http://www.bayern-innovativ.de/fields/?Edition=en

Skills’ challenges: location/relocation Research Development Design Marketing and sales Global supply chain management Customisation Networks Digitalisation CREATIVE WORK Talent Outsourcing Automation ROUTINE WORK Done by machines ROUTINE WORK Done by people

Enterprise Competitiveness "Sandwich" Theory Niche iApple BMW Dyson Nespresso Mass Dell Acer Nokia General Motors Low Cost Dacia Easy Jet Ryanair ZTE

Regional Competitiveness "Sandwich" Theory Niche Toulouse, Cambridge, London, Milano… Knowledge creators Mass Wallonia Nord-Pas-de-Calais Midlands Low Cost Cantabria, Madeira, Andalusia, … Knowledge absorbers

The enterprise pipeline assessment matrix Sector Life cycle N° of enterprises Nature of the public support N° Trends Soft business support Finance Infrastructure Skills Social capital Market intelligence Research & innovation Networking Pre-venture Existence / Start-up Early growth Expansion Maturing International relocation Re-engineering process Decline Pre-failure / Closure

Four avenues of an entrepreneurial discovery process turning traditional sectors into new competitive areas Nord-Pas-de-Calais(F) in rail transport or Baden-Württemberg (D) from the automotive sector to mobility, or Friesland (NL): salt-resisting crops; modernising specialisation through new technology [Jyväskylä (FIN) in the paper industry with the integration of ICT, optoelectronics and nanotechnology]; diversifying, based on existing specialisation [whale tourism in Husavik (IS) from fisheries’ experience; eco-building in Lower Austria (A)]; radical change [Leuven (B) in microelectronics; Cambridge (UK) in biotechnology or Cantrabria (E) in marine science].

A commercialisation ecosystem for new ideas Concept factory • technological and scientific research • innovation in services • transfer of technology • knowledge uptake Incubation • high value-added venues and networks • business angels – seed capital – grants? • mentoring potential entrepreneurs (by serial entrepreneurs) • proof of concept • technological showcasing Development • venture capital – corporate venturing • all-out cooperation • prototyping • first client closure, including through pre-competitive tendering and new PPP formats Growth • internationalisation • profits enabling self-financing of future investment

The most pressing problem faced by euro area SMEs Source: European Central Bank

Is there a choice of the strategy’s ingredients? Florida or not Florida? ? ? ?

www.eurada.org – info@eurada.org For more information: Christian SAUBLENS EURADA www.eurada.org – info@eurada.org