1. Smart Specialisation and Growth in the Baltic Sea Region Clusters and smart specialisation Kincsö Izsak, Technopolis Group, Brussels 5 April 2011

2. 2 European Union context The Commission will use its regional research and cluster initiatives and establish a "smart specialisation platform" by 2012, including further support for the emergence of world class clusters. (Commission Communication: Innovation Union, 2010) Clusters are an important element in smart specialisation strategies. (Commission Communication: Regional Policy contributing to smart growth, 2010) New Strategy for globally competitive Clusters and Networks including specific action to promote globally competitive clusters and networks in both traditional and emerging industries (Commission Communication: An industrial Policy, 2010)

3. Cluster policy as a tool for smart specialisation agendas Smart specialisation was, is and will be necessary to excel in a particular field. Clusters represent an effective organising principle to industrial, innovation, regional policies. Cluster policy can minimise distortions to competition, and is better aligned with the nature of competition in the modern economy. (Porter, 2007) 3

4. But what is new then? 4

5. New nature of specialisation Geography: The patterns of global value chains are changing calling for new types of transnational and international cluster cooperation. Reconfigurations: There is a need to look beyond own sectors and foster new configurations of business activities to happen through clusters that may result in new, emerging industries. Partners: Users, customers, social partners, non-profit organisations, etc. represent a new source of innovation and should be taken into account when designing cluster policies. … and Much stronger need for Effectiveness. 5

6. Geography Pieces of best knowledge are scattered globally and smart cluster policies build out a way to gather the world-class pieces. To reach critical mass clusters have to link up with other clusters to take advantage of economies of scale. There are few systematic international cluster strategies at present. International and transnational cluster cooperation should not become another fashion but aiming at real complementarities or clear joint targets. The power of weak links is to produce unexpected innovations. 6

7. Some examples: Transnational and international cluster cooperation 7 Berlin-Brandenburg Secure Identity Innovation Cluster BaltFood, ScanBalt, Öresund, Medicon Valley European Aerospace Cluster Partnership Memorandum of Understanding signed between the EU-Japan Centre for Industrial Cooperation and the European Cluster Collaboration Platform

8. Reconfigurations An essence of smart specialisation is to explore new cross-sectoral linkages that can become growth drivers. Clusters are cross-sectoral by nature concentrating related industries. Cluster programmes should be designed with a flexibility that allows spill-overs happen arriving outside of the immediate definition of the cluster. Cluster organisations can foster the deployment of key enabling technologies. 8

9. Example: Mobility industries 9 Source: European Cluster Observatory study by N.Andersson and Prof. J. Annerstedt

10. New partners Users and customers are a new source of inspiration involved directly in the co-creating of more and more values. Non-profit organisations, NGOs, public sector institutions are becoming stronger partners in developing solutions for societal challenges such as environmental problems or demographic changes. Cluster initiatives should be designed in ways to find and integrate these new collaborative partners into the cluster, moreover to include collaboration with living labs or design centres into their activities. 10

11. Effectiveness and more flexibility Clusters have been a popular tool for many years, but it is time and a must to raise their excellence both at the level of cluster policies and cluster management. The European Cluster Policy Group suggested the development of a methodological framework for benchmarking cluster organisations at a European level. Effective cluster policies is a key topic of the TACTICs INNO- Net/European Cluster Alliance. 11

12. But are these new challenges sufficiently addressed through cluster policies and regional innovation strategies? 12

13. Regional innovation support measures… include numerous support measures supporting clusters and networks, there are just a few addressing internationalisation there are very few supporting the diffusion of innovative technologies. There are several support measures targeting specific sectors or areas; popular ones are biotechnology, ICT, creative industries, eco-industries. There are just a few cross-cutting or interdisciplinary support measures. Source: analysis of Regional Innovation Monitor baseline profiles database 13

14. 14 Thank you Kincsö Izsak, Technopolis Group, Brussels kincso.izsak@technopolis-group.com technopolis |group| has offices in Amsterdam, Ankara, Brighton, Brussels, Frankfurt/Main, Paris, Stockholm, Tallinn and Vienna