Joint Research Centre - EU Neighbours

The European Commission’sscience and knowledge service

Joint Research Centre

Smart Specialisation StrategiesBeyond EU

Monika MatusiakTbilisi, 1 October 2018

2

The concept of smart specialisation as a place-based innovation policy

3

Smart Specialisation Strategy (S3)

• Smart specialisation strategy = Research and Innovation Strategy for Smart Specialisation (RIS3)

• In the EU – connected with Structural Funds

• Implemented mostly at regional level (NUTS2)

• Guidance and support: S3 Platform, Guidebooks, Thematic Partnerships

4

Smart specialisation in the EUREGULATION (EU) 1303/2013Applies to the European Regional Development Fund (ERDF)

Ex-ante conditionalityA national or regional smart specialisation strategy is in place that:

• concentrate resources on a limited set of R&I priorities

• to maximise the positive impact on growth and jobs

over 120 smart specialisation strategies for ERDF prepared

more than EUR 67 billion allocated

to:• bring 15 000 new products to the

market• create 350 000 new jobs• create 140 000 start-upsby the end of the programming period

2014-2020 ERDF Eligibility map based on GDP per capita in PPS, 2007-2009

5

Smart specialisation in Enlargement and Neighbourhood countries

• Based on expression of interest

• JRC supportwherepossible

• Ownershipand involvementneeded

6

Smart specialisation worldwide

• Based on expression of interest

• JRC supportwherepossible

• Ownershipand involvementneeded

7

Concept of smart specialisation (S3)

Challenge S3 answerImpossibility to finance all the needs by public sector

Prioritisation

Need for impact and resultsInvestment in domains with critical mass, growth dynamics and highest

chance of impactLack of trust Open, transparent process, based on

evidence and dialogueComplexity of innovation

systems Combination of different sources of

data: economic, innovation, scientificLow efectiveness of

traditional ‘silos’ policiesCross-cutting approach: coordination

with research and innovation, industrial, cluster, education and

regional development policies

8

Innovation paradigm in less developedcountries and regions

‘The central process of innovation is not science but design. … …Thus, the notion that innovation is initiated by research is wrong most of the time. …’ (Kline, J. and Rosenberg, N, 1986: p2880).

In reality, there are no true “non-R&D-intensive sectors” > 17% of firms in high tech sectors do not do any R&D, 27% in the medium-tech sector and 58% in low tech sectors (Som, 2012) > over half of all innovative firms in Europe do not perform R&D (based on CIS)(Arundel, 2009)

Share of enterprises engaged continuously in in-house R&D activities: EU-CEE 18%; EU South-20%, EU-North-34%

Source: S. Radosevic, UCL

9

Different nature of innovation activities between the EU core and periphery

Structure of innovation expenditures 2010-2012 in EU28 regions

0.550.50

0.190.26

0.390.39

0.73 0.63

0.060.11 0.08 0.11

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

EASTERN EUROPE SOUTH NORTH EU28

Other expenditures

Expenditures on R&D

Expenditures in acquisition of machinery,equipment and software

Source: S. Radosevic, UCL

10

What is Smart Specialisation?

• National/Regional Research and Innovation Strategies forSmart Specialisation (RIS3 strategies) are integrated,place-based economic transformation agendas that:

• focus policy support and investments on keynational/regional priorities, challenges and needs forknowledge-based development.

• build on each country/region’s strengths, competitiveadvantages and potential for excellence.

• support technological as well as practice-based innovationand aim to stimulate private sector investment.

• get stakeholders fully involved and encourage innovationand experimentation.

• are evidence-based and include sound monitoring andevaluation systems.

11

Key notions of the smart specialisation concept

• Critical mass sufficient to start the transformationprocess

• Evidence supporting the policy choices

• Dialogue to really understand the needs

• Governance to make it happen

12


Economicpotential

Societalchallenges

Scientificpotential

Innovativepotential

Niches to compete on internationalmarkets

Opportunitiesto move upthe valuechains

Adding valueto existingactivities

Create newsolutions

13


Example:

Economic potential:High level of production

and employment in agriculture and food

processing

Scientific potential: Top level pharmaceutical

and biotechnology research

Societal challenge:Health – obesity and

cardiac disease

Innovative potential:Quickly growing bio-tech

cluster

S3 priority:Function foods for cardiac patients

14


Smart specialisation is:

• A knowledge-based economic transformation

• A place-based innovation policy

• A bottom-up process based on evidence

• A process of public-private dialogue on the bestallocation of public resources

15

2 key S3 processes

Institutional discovery:• Political mandate• Right coalition of ministries, departments, agencies and

other public institutions• Learning and adaptation process• Stability and consequence• Learning to talk to external stakeholders and build trust

Entrepreneurial discovery:• Process of discovering real business needs and

ways to address them based on knowledge and innovation

• Mobilising and enabling businesses to answersocietal challenges

• Quadruple helix: business, academia, civicsociety and public authorities

16

How we work

17

Smart specialisation – how to get there

•Who will initiate the process?•Who will be responsible for the process?•Who will take part in the process?•Who will ensure implementation and monitoring?

Ownership

•What are our strenghts and weakensses?•What challenges do we face?•What does the hard data say?•How should hard data be interpreted?

Knowledge

•With whom do we need to discuss to understand the situation and the way forward?

•With whom do we need to discuss to secure implementation?•Who is necessary to build consensus?•Who is necessary to create leverage effect?

Dialogue

18

INSTITUTIONAL CAPACITY BUILDING

MAPPING EXERCISE

ENTREPRENEURIAL DISCOVERY PROCESS

INSTITUTIONAL CAPACITY FOR IMPLEMENTATION

FINAL S3 STRATEGY

Framework for smart specialisationwithin E&I Action

start

19

JRC Support

• Awareness events

• Training of national/regional S3 team for target countries/regions

• Methodological guidance

• Publications

• Expert support (depending on country agreements)

• Training of EDP coordinators and facilitators

• Help in identification of external financing sources

20

Institutional capacity

21

National/Regional Smart SpecialisationTeamInternal stakeholders External stakeholdersRepresentatives of national administration responsible for: Economic development Research&Innovation Clusters&Industrial

modernisation

Representatives of business: Associations Clusters Chambers of commerce Key companies Most innovative companies

Representatives of regional/local government

Representatives of science: Top universities/departments Research institutes Patent holders

Regional/local development agencies

Representatives of civic society: NGOs Educational institutions

22

National/Regional Smart SpecialisationTeam

Needs to be able to organize and oversee the process of drafting the strategy

Needs to be able to secure the implementation and monitoring

Should be formalized/appointed

Should have direct link with decision-makers

23

National Policy Framework

What will be the role of smart specialisation strategy?

Who will adopt it?

How will it be coordinated with other strategies/policies?

How will it be implemented and financed?

Who will hold responsibility for monitoring and updating?

24

Implementation measures

PUBLIC:What financing measures are available at regional/national

level?

Which EU programmes can be used?

Can financing from other international donors be helpful?

PRIVATE:Will businesses be willing to co-invest?

Can venture capitalists/business angels be interested?

25

Mapping exercise:evidence base for smart specialisation – quantitative and qualitative analyses

26

Quantitative and qualitative analyses

Economicpotential

Innovativepotential

Scientificpotential

Preliminary priority domains

Quantitativeanalysis

In-depth

interviews

Case studies

Qualitative analysis

Focus groups

27

Types of quantitative indicators

28

Economic potential

Top three sectors in the WB6 by revealedcomparative advantage

29

Economic potential

30

Innovative potential

31

Scientific potential

32


33


34


35

Qualitative inputs

• What is the innovation path in your target group?

• Where is the need for public intervention?

• How can you design appropriate instruments?

• What is the necessary policy mix to cover the ecosystem?

36

Entrepreneurial discovery process

37

Quadriple helix – who should take part in defining S3

Businessmanufacturing and

services, primary sectors, financial sector, creative industries, social sector,

large firms, SMEs, young entrepreneurs, students with business

ideas, cluster and business organisations, etc.

Researchpublic and private research bodies,

universities,science and technology

parks, NCPs,Technology transfer offices, Horizon2020 committee members,

regional R&I 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, Talents! etc.

Civil society / Users

Entrepreneurial in composition andspirit: (risk-taking, broader view

beyond boundaries …)

Businessmanufacturing and

services, primary sectors, financial sector, creative industries, social sector,

large firms, SMEs, young entrepreneurs, students with business

ideas, cluster and business organisations, etc.

Different departments,if relevant at different

government levels, agencies e.g. for regional development,

business advice, public procurement offices,

incubators, etc.Public administration

38

Why is it important to take partBus

ines

s •Opportunityto express real needs

•Chance to get targetedsupport

•Beterunderstanding of strategicchallenges of the sector

•Betterknowledge of value chains

•Chance to meetpartners and start newinitiatives

Rese

arch

•Chance to presentideas to the right target group

•Commercialisation of research

•Identificationof real business and societalneeds thatneedaddressing

•Technology transfer

•„Real life” research

Civ

icso

ciet

y •Chance to express needs and challenges

•Give userexperienceto proposednewsolutions

•Take part in creatingtransparent public policies

•Contributeto socialinnovation

Publ

ic a

utho

ritie

s •Creatingpolicies thataddress real needs

•Involve in meaningfuldialoguewith stakeholders

•Get feedbackfrom target group

•Createpolicies thatbring resultsand haveimpact

39

Entrepreneurial discovery process (EDP)

EDP is the essence of smart specialisation

It means discovering together with businesses, whatneeds and can be done to improve innovativeness and competitiveness

It should be a continuous, transparent and evidence-based dialogue

40

EDP is a continuous process

41

Sustaining an inclusive and continuous EDP

Role of stakeholders – Trust and participation • Commit to the strategic objectives identified in

S3 strategies• Engage in the different stages of the policy-

making process

Role of government – Inclusive governance• Enable platforms for targeted stakeholders’

interaction and policy coordination• Build flexible structures and incentives to allow

policies to evolve and adapt to a changing reality

42

Implementation

43

Implementation

Implementation structure showing responsibility for delivering objectives and actions

Governance scheme including internal and external stakeholders

Continued interministerial/interdepartamental dialogue

Policy mix – synchronised instriuments/measures that will enable the achievement of objectives

44

Good governance of S3:Seven Principles

45

More reading:

http://s3platform.jrc.ec.europa.eu/s3pguide

46

Thank you

[email protected]

Joint Research Centre - EU Neighbours

Documents