Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities PAULO GOMES Brussels, 7-8 March 2007

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership Territorial Cooperation Objective – a new strategic “status” “ European renewal cannot come only through a top-down approach. If innovation is to become the true driver for growth and jobs we must engage and exploit the local and regional potential of Knowdlege and cooperation. Only by taking into account the potential of Europe’s 268 regions, its cities, its rural and metropolitan areas, we will be able to make the Union more competitive and to generate growth and sustainable jobs. In the period , territorial cooperation has reached the status of “Objective” in contrast to its role as a “Community Initiative” for the past 15 years. This is an important political signal, placing cooperation on the same level as the Convergence and Competitiveness Objectives.” Danuta Hubner Conference of German Ministers responsible for spatial planning February, 2007

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership Strategic Guidelines of Cohesion – to align cohesion policy with the Lisbon agenda for growth and jobs Making Europe a more attractive place to invest and work Improve Knowdlege and innovation for growth More and better jobs

CSF III – The National economies in The Enlarged Europe (GDP per capita, UE-15 = 100, CSF III – )

The Regions in the Enlarged Europe (The National “mix” of the Regional Development Levels )

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership The 2006 Innovation Index

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership SII and Trends

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership Regional Development Performance ( ) Human Resources in Science and Technology-Core (% of pop.) Participation in Life-long learning per 100 pop. Aged Public R&D expenditures (% GDP) Business R&D expenditures (% GDP) Employment in medium-high and high-tech manufacturing (% of total workforce) Employment in high-tech services (% of total workforce) EPO patents per million population

Four key factors for understanding regional Innovation potential Public knowledge Urban services Private Tecnology Learning families  Almost half of difference in GDP per capita in 215 EU 27 regions is explained by the four factors!  Also explain variance in unemployment

Strategic groups of innovative regions F1 F2 F3F4

1) Global consolidation 2) Sustain competitive advantage

3) Boosting entrepreneurial knowledge 4) Enterning knowledge economy

Regional Innovation Systems (RIS) oA RIS is constituted by two sub-systems and the systemic interaction between them (and with non-local actors and agencies). oThe knowledge generation and diffusing sub-system (universities, technical colleges, R&D institutes, technology transfer agencies, business associations and finances institutions). oThe knowledge exploitation sub-system (firms in regional clusters as well as their support industries (customers and suppliers).

What is a RIS – broad definiton: oA system of organisations and institutions supporting learning and organisational innovation, and their interactions with local firms (learning regions). oAdaptive learning: competence building – (learning) work organisation. oDevelopmental learning: interactive learning (user- producer relationships) – inter-firm network. oA market/demand/user driven system generating incremental innovations

Regional knowledge infrastructure o(Regional) universities as producers of highly skilled people (human capital/talents). oSupplying highly skilled workforce, and thus providind absorptive capacity to local firms. oActors in the knowledge generation subsystem of RIS (industry-university collaboration) oProviding access for tapping into their knowledge reservoir for local firms. oActing as tecnhology transfer agencies for non-local knowledge.

Regional Policy Challenges oThe dilemma of regional innovation: from imitation to innovative adaptation. oIndustrial renewal takes place in-between and beyond existing sectors – need for transcending traditional sector policies (platform policy). oInnovation through combining existing knowledge, technologies and competencies with new generic technologies (IT, biotech (green and white). oHow to shape conditions for cross-fertilization?

Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership Major Keys Governance Clearer split of responsibilities amongst various political and administrative levels Exploiting EU level opportunities Focus on an innovation friendly environment Focus on applied research and product development Focus on Poles & Clusters

Major Keys Partnerships Focus on “downstream” collaborative research developed with view to the market - technology transfer most effective through personal mobility schemes. Regions for Economic Change : fostering competitiveness through innovative technologies, products and healthy communities Workshop 1 A – fostering regional governance and public private partnership PPPartnerships Still quite unsuccessful but very important Must emerge from a demand culture