1. Regional Policy Smart Specialisation: Where are we heading? Gdansk, 21 April 2016 Jan Larosse Competence Centre Smart & Sustainable Growth DG Regional and Urban Policy European Commission

2. Regional Policy OVERVIEW Policy background for smart specialisation investment European Investment Plan Integrated approach for smart specialisation and cluster policy RIS3: major opportunity for Pomorskie 'RIS3' = research and innovation strategies for smart specialisation From smart intention to smart action RIS3 internationalisation Thematic Smart Specialisation Platforms: launch at High-Level Event on Smart Regions:1-2 June To do

3. Regional Policy The national or regional innovation strategies which: Smart Specialisation strategy as defined in the Common Provision Regulation 1303/2013 set priorities in order to build competitive advantage by developing and matching research and innovation own strengths to business needs in order to address emerging opportunities and market developments In SHORT: RIS3 is based on 4 'C'-s : Competitive advantage: match R&I potential with business needs and capacities for specialised diversification/ modernisation of sectors + explore emerging areas Choices (tough ones): select few priorities on basis of specialisation & integration in international value chains. Critical mass of resources & talent: cooperation between regions by avoiding duplication and fragmentation Collaborative Leadership: involve key stakeholders from academia, businesses, public administrations and civil society ("quadruple helix") for efficient innovation systems & synergies between funding instruments (EU, national, regional) +…Common sense = Integrated agenda for place-based economic transformation, driven by research, innovation and increasing access to ICT and its use In SHORT: RIS3 is based on 4 'C'-s : Competitive advantage: match R&I potential with business needs and capacities for specialised diversification/ modernisation of sectors + explore emerging areas Choices (tough ones): select few priorities on basis of specialisation & integration in international value chains. Critical mass of resources & talent: cooperation between regions by avoiding duplication and fragmentation Collaborative Leadership: involve key stakeholders from academia, businesses, public administrations and civil society ("quadruple helix") for efficient innovation systems & synergies between funding instruments (EU, national, regional) +…Common sense = Integrated agenda for place-based economic transformation, driven by research, innovation and increasing access to ICT and its use

4. Regional Policy Supporting the EC's top priority: the Investment Plan for Europe 4 Digital Agenda Circular Economy Energy Union European Fund Strategic Investments (EFSI) € 315 bn European Structural Investment Funds (ESIF) € 450 bn (incl. around € 100 bn for innovation) Increase effectiveness of investments ! Industrial Modernisation

5. Regional Policy Source: Final ESIF partnership agreements as of December 2015 Soon all open data available at: https://cohesiondata.ec.europa.eu/https://cohesiondata.ec.europa.eu/ ESIF programming 2014-20: State of Play In billion EUR EUR 454 billion of ESIF + EUR 183 billion of national co-financing 456 national and regional and 79 INTERREG cooperation programmes Concentration on 11 Thematic Objectives ca €121 billion ca €234 billion 5

6. Regional Policy Source: Final ESIF partnership agreements as of December 2015 Soon all open data available at: https://cohesiondata.ec.europa.eu/https://cohesiondata.ec.europa.eu/ How much do we invest? Total EU budget for RIS3: EUR 43.7 billion of ESIF Plus national EUR 22 billion EUR 10 billion in financial instruments / the rest in grants 6 More than 120 RIS3 (regional and national)

7. Regional Policy Main challenges to make RIS3 work: 7 Ensuring continuity RIS3 is conceived as an on-going (and reiterative) Process with stakeholder involvement (Entrepreneurial Discovery Process), Monitoring as management tool Evaluation of RIS3 Implementation tools & capacities Selection criteria/selection processes Appropriate support tools (participatory leadership methods) Administrative capacities to design such tools and manage them effectively and efficiently International opening and cooperation Generate critical mass via combining forces Complementing capacities and linking related regions Synergies with Horizon 2020 Art. 70 of CPR

8. Regional Policy Entrepreneurial discovery process is the core of RIS 3  Reiterative process  Creative thinking / combination  External view needed  Multiple formats of EDP depending on:  RIS3 stage (strategy design vs. Delivery mechanism design vs. Project level)  Theme / value chain specificities (e.g. pharmaceuticals vs digital innovations vs manufacturing ….) Business manufacturing and services, primary sectors, financial sector, creative industries, social sector, large firms, SMEs, young entrepreneurs, students with business ideas, cluster and business organisations, etc. Research public and private research bodies, universities, science and technology parks, NCPs, Technology transfer offices, Horizon2020 committee members, regional ESFRI roadmaps etc. Different departments, if relevant at different government levels, agencies e.g. for regional development, business advice, public procurement offices, incubators, etc. Public administration NGOs and citizens’ initiatives related to societal challenges for which innovative solutions would be helpful, consumers associations, trade unions, Talents! etc. Civil society / Users Entrepreneurial in: -Composition and -Spirit: (risk-taking, broader view beyond boundaries …) Entrepreneurial in: -Composition and -Spirit: (risk-taking, broader view beyond boundaries …) Continuity

9. Regional Policy 9 From smart intentions to smart actions Results will depend on the development of a capacity to convert strategic decisions into real measures This requires good governance and a continuouing entrepreneurial discovery process for: 1.Smart policy mix  Combining OPs with other support instruments in the region (education, infrastructures, smart city, foreign investment, …)  Aligning regional and national support policies  Looking for complementary European support (H2020) 2.Smart programming  New strategic initiatives with long-term horizon (10 years)  Reorienting existing programmes (adjusted criteria)  Match priorities among key actors (changing the research agendas)  Innovation infrastructures that serve the purpose  Strategic platforms to gather the stakeholders 3.Smart monitoring  Embedding learning in the programmes  Specific indicators for the specific domains Internationalisation of the RIS3!

10. Regional Policy Role for cluster organisations or other SME intermediaries Customised SME support Regional and International Strategy Regional and International Strategy Cross-sectoral Collaboration Cross-sectoral Collaboration V ALUE C HAIN I NNOVATION

11. Regional Policy Strategic interregional cooperation as driver for investments and growth 1. Support cross-sectoral and cross-border cooperation of innovation actors along the value chain 2. Promote the bottom-up role of regional authorities and cluster organisations in bringing these actors together 3. Accelerate the finer focussing of RIS3 priorities on comparative strengths through complementarity 4. Upscaling fragmented efforts at the level of European markets and feeding a European investment pipe-line 5. Aligning strategies and investments in strategic European growth areas and building synergies with other programmes

12. Regional Policy RIS3 supports inter-regional, inter-disciplinary, cross-sectoral areas to build competitive advantage Ca. 1300 RIS 3 related niches in: Agro-food Key Enabling Technologies (e.g. advanced manufacturing) Health Energy ICT/Digital Agenda Eco-innovation/Environment Creative industries Transport & Logistics Service innovation Ca. 1300 RIS 3 related niches in: Agro-food Key Enabling Technologies (e.g. advanced manufacturing) Health Energy ICT/Digital Agenda Eco-innovation/Environment Creative industries Transport & Logistics Service innovation

13. Regional Policy Thematic Smart Specialisation Platforms … Joint actions and investments Regional authorities Value chain Energy Agro- Food Digital Growth Industrial Modernisation (Health) (Circular Economy) Businesses KETs Digital transformation Value chain Ressource efficiency Value chain Service innovation 1. Set-up of a Thematic Smart Specialisation Platform on Industrial Modernisation and Investment How: Platform to be co-developed by REGIO, GROW & JRC, together with and to support lead regions committed to work together. What: Develop an innovation project pipeline focused on industrial modernisation areas, such as advanced manufacturing, digital transformation/industry 4.0, resource efficiency and service innovation. e.g. joint implementation of smart specialisation strategies, Innovation Deals, EFSI Investment Platforms, Important Projects of Common European Interest…

14. Regional Policy European Strategic Cluster Partnerships for Smart Specialisation Investments … Joint actions and investments Cluster organisations Value chain Businesses KETs Digital transformation Value chain Ressource efficiency Value chain Service innovation 2. Set-up of European Strategic Cluster Partnerships for Smart Specialisation Investments How: Bottom-up partnering through call for expression of interest, bringing together cluster organisations, technology centres and others What: Generating inter-regional innovation projects, strengthening industry participation in the implementation of smart specialisation strategies, and gathering feed-back on obstacles for innovation. e.g. joint strategy formulation, implementation roadmaps, matchmaking, joint activities, towards demonstration projects, preparation of bankable proposals, acceleration support…

15. Regional Policy Pilot actions for joint demonstration: 1. Advanced Manufacturing for energy applications 2. Efficient and sustainable manufacturing 3. High Performance Production with 3D Printing' 4. Bio-economy (non-food biomass) 5. Nano-enabled products 30 Regions with political commitment Leading-by- example

16. Regional Policy Application domains & challenges -Healthcare -Automotive -Aerospace -Machinery and instruments -Electronics and electr. devices -Creative industries -Textiles Application domains & challenges -Healthcare -Automotive -Aerospace -Machinery and instruments -Electronics and electr. devices -Creative industries -Textiles Methodology at work in 3D-printing Value Chain Mapping, Matching & 20 regions engage in Joint Demonstration Co-investing to accelerate uptake 3D-Printing Solutions in interregional value chains

17. Regional Policy 17 Thematic Smart Specialisation Platforms: How? Approach: Using smart specialisation as a coordinating mechanism to align efforts based on RIS3 analysis – including "lagging regions" and other "unusual suspects" foster opportunities for regions/MS to team up around value-chains (Horizon2020, COSME and INTERREG Europe could support networking costs) driven by motivated regions (e.g. in the Vanguard Initiative), not Commission entrepreneurial discovery at European level: inspired by Vanguard Initiative (Learn- Connect-Demonstrate-Commercialise) involving relevant clusters, intermediaries, thematically related EU level initiatives (such as the EIT-KICs, Joint Undertakings, ETPs, EIPs, etc.) support the development of project investment pipe-lines Facilitate access to "real money" for resulting projects (incl. EFSI, cooperation with EIAH, private investors, coordinating ESIF investments, Horizon2020 …) First Platform concerns energy:

18. Regional Policy European Strategic Cluster Partnerships for Smart Specialisation Investments Pr eparatory Phase Implementation Phase Investment Phase Partnership building Joint strategy formulation Implementation roadmap Matchmaking Joint activities, demonstration projects, pilots, preparation of bankable proposals Additional private/public financing Acceleration support Showcasing results ESIF - RIS3 EFSI Horizon2020 COSME INTERREG

19. Regional Policy A multiplier mechanism for investments in new value chains Cases for projects Partnerships Identified Search Areas Thematic Smart Specialisation Platforms SSP Industrial Modernisation Adv Manufacturing Efficient & Sustainable Manufacturing 3D Printing complex parts hybrid materials Nano-enabled production KETsClean Tech? Thematic Smart Specialisation Platforms and Strategic European Cluster Partnerships will support a project pipeline of investment projects for new business opportunities in growth domains The Vanguard Initiative has been piloting this aproach for the Pilot 'Advanced Manufacturing': at this moment 28 project cases are under development

20. Regional Policy Fueling an investment projects pipeline

21. Regional Policy 21 1 June 2016, WEDNESDAY Sessions 1-2: Smart specialisation - From Design to Implementation  Continuous Entrepreneurial Discovery  Governance settings  Selection criteria and selection process  Transnational cooperation and value chains  Monitoring and evaluation  Smart Specialisation Strategy experience outside EU Session 3: Thematic S mart S pecialisation P latforms  Industrial Modernisation  Agro-Food Value Chains  Energy Transition  … Session 4: Investment challenges 2 June 2016, THURSDAY Report and conclusions from day 1 Session 5: Align objectives for economic transformation (Stakeholders) Session 6: Implementation of RIS3 – Synergies in policy support for economic transformation (Commissioners) Continuous exhibition and networking 0 – 14:00Networking Lunch

22. Regional Policy NEXT STEPS April 2016: Call for expression of interest for European Strategic Cluster Partnerships and preparatory support 11 & 12 May : Information Days on SSP Industrial Modernisation & SSP Agro-Food 1-2 June 2016: Launch Thematic Platforms at High-Level Smart Specialisation event 1-2 December 2016: European Cluster Conference

23. Regional Policy Conclusions RIS3 Implementation: Opportunity! Acceleration of transformation RIS3 Implementation: Internationalisation! Positioning in international value chains RIS3 Implementation: Capacity building! Strategic partnering (modern cluster organisations)  'Made in Poland' (Pilot Project World Bank)  Baltic 2030 Strategy

24. Regional Policy 24 INFORMATION DAYS 11 & 12 MAY, BRUSSELS LAUNCH AT 1 JUNE: SMART REGIONS CONFERENCE, BRUSSELS

25. Regional Policy Questions and Answers 25