Automotive Toolmarking Textile Print]

Creating Networks for Regional Innovation and Growth

Open Days 2005, Workshop Regional Lisbon Governance,

Baden-Württemberg Representation13.10.2005

Veit Haug, Wirtschaftsförderung Region Stuttgart GmbH (WRS)

Agenda

1. Introduction of the Stuttgart Region

2. Regional Lisbon Governance?

3. Innovation- and Cluster-Policy in the Stuttgart Region

4. Regional Competence Centre Programme

5. Theses

1. The Stuttgart Region - Facts and Fígures

Population: 2.6 million from 170 countries

Area: 3.654 km²

Municipalities: 179

People in employment: 1,024,367

Members of the Regional Assembly: 93

Hours of sunshine: 1820 per year

Wine production: 42 million liters per year

Michelin stars: 13

Historic palaces and castles: 68

Liters of mineral water per day : 40 million

EU-Awards of Excellence for Innovative Regions: 3

1.2. Economic data of the Stuttgart Region

~155.000 companies

Gross domestic product: 88 billion Euro

Unemployment rate: ~6,5 %

Overseas Sales (Manufacturing): 44 billion Euro

Most important industries: Automotive, Engineering Tools, Medical…), Electrical, IT, Media,

Headquarter of corporate groups such as DaimlerChrysler, Porsche, Bosch, Festo, Trumpf, Behr, Alcatel-SEL, Dürr, Stihl, Celesio, Schuler, Allianz Life etc.

Extremely high research-density and -intensityR&D expenditure in the Stuttgart Region makes ~5,7 % of the GDP!

1.3. The Emergence of High-Technology Clusters in the Stuttgart Region

19001930

19601985

Future?

AutomotiveTelecomElectricalTextile

Radio/TVPrintAero

Automotive

Toolmaking

TextilePrint

19952005

AutomotiveTelecomElectrical

ComputersToolmakingMed techRadio/TV

PrintAerospace

AutomotiveElectrical

ComputersSoftwareTelecom

ToolmakingMed tech

MicrosystemsRadio/TVRobotics

Aerospace

AutomotiveTelecomElectrical

ComputersSoftwareMed tech

ToolmakingAutomation

RoboticsMechatronicAerospaceLogistics

AutomotiveTelecomsElectricalSoftware

ToolmakingAutomation

Simulation/VRMed tech

NanosystemsNanomaterialsTech. TextilesMechatronicAerospaceLogistics

Automotive?Nanosystems

FuelcellEnergy ConvertersSensors/actuatorsNeuroengineeringTissue Engineering

Drug modellingSentient computingAutonomous Sytems

...?

Matchstick, Portable Drilling Machine, Automobile, Spark Plug,

Perlon Stockings, Office Photocopier, Lever Arch File, Refrigerator,

Bra, Coffee- Machine, TV-Tower, Mainframe Computer, ABS, Airbag,

ESP…

1.4. The Stuttgart Region Economic Development Corporation (WRS)

Founded 1995 as a GmbH („Ltd.“) 33 full-time employees Subsidiaries for Biotech, Film etc. Budget 2004: 8 million Euro

Tasks:

1. Support for Investors

2. Location Marketing

3. Innovation-Policy, Network- and Cluster-Development

2.1. Lisbon Regions - Characteristics

Universities and centres of academic excellence Entrepreneurs with marketable ideas and

products Core of successful large companies Quality management teams and talent Sources of early stage venture capital Supportive infrastructure Affordable space for growing businesses Access to capital markets Attractive living environment and

accommodation

Compare with Prof. J.F. Gibbons - Stanford University 1998

„The Creative Class is moving away from traditional corporate communities, Working Class centers and even many Sunbelt regions to a set of places I call Creative Centers.” (p. 218)

Richard Florida: The Rise of the Creative Class And How It’s Transforming Work, Leisure, Community and Everyday Life

2.2. Regional Lisbon Governance is about...

Building new image! New visions! New locations! New regional economic circuits! Approaches and incentives to involve new

actors! New partnerships, new strategic alliances! New ways to think about regional

development! New decision-making processes! New ways to strengthen and manage

regional development! A supportive European Regional Policy!

Sources: Prof. Kunzmann, University of Dortmund, Prof. Alan Barrell, Cambridge

“You look at things and ask - why? But I dream of things that never were and ask – why not?”George Bernard Shaw

2.3. What can Regional Lisbon Policy help?

Support the development of an “Enterprise Society”

Enable and optimise transfer and cross-sectoral cooperation

Explore and trigger the development of clusters and sub-clusters

Initiate and/or coordinate large scale EU-projects

Improve access to finance Support network-managers Help attracting talent Build strong international Networks Promote Regional learning processes

2.4. What could interfere with the Regional Lisbon Process?

Lack of regional visions “Knowing-why-not” stakeholders Old claims and traditions Established (over-) regulation Inflexible finance institutions Backward looking regional opinion leaders Weak regional leadership Lack of creative knowledge based industries in

the region Uninterested regional/local media Populist innovation trend setters Low degree of internationalisation Lack of regional marketing and communications

Source: Prof. Kunzmann, University of Dortmund

3.1. Regional Lisbon Governance -Management of Knowledge-Based Regions like Stuttgart

Management

Source: Barbro Berg, City of Stockholm

3.2. Identifying Potential

Media

Automotive

Virtual Reality/Simulation

DesignICT

Toolmaking

ElectricalET

Fuelcell

Inhouse

Industry & Handicraft

MediaResearch & Developmen

t

Skilled Employees

International Relations

Europe

North America & Overseas

Media Region

StuttgartConsistency Job & Family

Handicraft

Energy & Environme

ntal Engineerin

g

Research Support

Information Technologi

es

Regional Competenc

e & Innovation

Centres

Job Market & Qualification

University & Entre-preneurs

Industrial Design

Animation & Visual Effects

Health Economy

Mobility & Automotive

Investor Support

Real Estate Services

Investor Services

KTMC: Telematics &

Mobile Computing

ITV: Technical Textiles

NAC: Online Services

Mechatronics

Mediafaktur Filder: Print, Publishing,

Communications & Media

BITZ: Telecommunications, Data Transmission

& Security Services

Fuel Cell Technology

Customer Care:

Customer Relationship Management

Facility Management

KURS: Environment

al Engineering

KLOK: Logistics

KISEM: Solar Technologies

& Energy Services

VDC: Virtual Reality &

Collaborative Engineering

VSC: Integrated

Voice Solutions

Business Angels Network

< C

oord

inati

on

Ou

tsou

rced

&

D

ecen

traliz

ed

Knowledge Base

Companies Universities

Non University Research Facilities

Intermediaries

Regional Competence & Innovation Centres

Horizontal Measures

Department

Department Department Department Department

Department

3.3. Applied Regional Innovation Strategy (by WRS)

Regional Clustermanagement

3.4. Example: Developing the Fuel-Cell Cluster in the Stuttgart Region

Companies (Examples): DaimlerChrysler AG Ballard Power Systems AG EnBW AG EvoBus StartUps like Escube, FuMaTech, Smart Suppliers like Behr, Mann + Hummel, Modine

Europe, Mahler AGS

Research (Examples): Fuel Cell Research Alliance Baden-Württemberg Center of Competence for Fuel Cell DLR, ZSW, ISI Universities, Fraunhofer and Max Planck

Institutes

3.4. Example: Steps in Fuel-Cell Cluster-Development

1. Analysis and contact to the Stakeholders

2. Developing a competence profile for the location

3. Developing a Mid-and Longterm Programme

4. Publishing the F-Cell Guide

5. Annual F-Cell- Conference

6. F-Cell Innovation Award

7. Starting EU-Projects

8. Optimizing financing for Fuel Cell Companies

9. Setting up a Competence Center

10.Embedding in European Platforms

11.International Co-Operation (Fuel-Cell Canada, Next Energy Michigan USA, California Fuel-Cell Partnership)

4.1. Regional Competence Centres

Well organized regional networks integrating all possible regional companies, universities, research facilities working in the same field of technology.

Transformation of results to negotiable products and services

Optimization of the use of innovative potentials of companies, universities and research facilities

Stimulation and and support of co-operations(including Private-Public) and support for start-ups

Platform for (large scale) projects 16 Competence Centres in different fields of

technology. > 360 companies (80% SME)

> 50 institutes and research facilities

Competence CentersCompetence Centers

Stuttgart RegionStuttgart Region

Speech Technologies

Vaihingen/EnzMarbach

Kornwestheim

Landeshaupt-stadt

Stuttgart

Backnang

Welzheim

Weinstadt

Esslingen

Göppingen

Geislingen/Steige

Nürtingen

Kirchheim/Teck

Denkendorf

OstfildernLeinfelden-

EchterdingenFilderstadt Kreis GöppingenKreis Böblingen

Kreis Ludwigsburg

Rems-Murr-Kreis

Technical Textiles

E-Government

Environmental Technologies

Logistics

Facility Management

Telecommunication

Mechatronics

Solar Technologies

MediatechnologiesMobile Computing

Online Services

Virtual Dimension Center

Simulation and Virtual Reality in Industrial Applications

4.2. Stuttgart Region Innovation- and Competence Centers

Fuelcell Technology

4.3. Regional Networks and Competence Centers – Lessons Learned:

The most important instrument: The „Network Manager“ who sets up and cultivates the network, keeping the partners’ participation and the know-how-transfer alive

The most important process: The communication between the partners which should be moderated by the network manager and supported by communication platforms

The most important constitutional element: The legal body for the network (e.g. a association) to ensure the partners’ commitment for financing and (net-) working

The most important task: Initiating concrete projects to ensure the partner’s perception of (net-)work advantages

Pierre Laffitte

4.4. Regional Networks – To dos...

Open regional networks to non-established actors!

Foster regional dialogue and regional communication!

Generate in-built innovation processes in regional institutions!

Establish partnerships for strategic regional planning!

Form strategic alliances for innovative development!

Promote catalytic projects for regional learning! Encourage the formation of international

networks! Secure participation of the next generation! Involve regional media in innovation strategies!

Source: Prof. Kunzmann, University of Dortmund

5. Theses for the Discussion on Regional Policy

Few „Lisbon Regions“ generate the major share of achievements in the Lisbon Process!(Employment, Expenditures in R&D…)

For further advancement, also the “Lisbon Regions” need EC-level support to solve their specific problems and to overcome restraints:

- In the field of infrastructure,

- In the field of innovation, cluster-development and networking.

We suggest programs and projects in expedient and well-defined fields of co-operation between “Lisbon Regions” and less developed regions (e.g. biomass-driven Fuel Cells in agricultural regions)

Vision without Action is a Daydream….

Action without Vision is a Nightmare….

Japanese Proverb - Anon

Thank you for your kind attention!

Veit Haug, Director

Wirtschaftsförderung Region Stuttgart GmbH