Presentatition for faculty members at Zagreb University, 2012-10-31, on place management and development, European integration, smart specialization and regional economic growth.

1. Place Excellence in the European Context
Jörgen Eriksson - Miquel Barcelo – Lars-Göran Larsson
Zagreb, October 31, 2012
“Vision without action is merely a dream.
Action without vision merely passes the time.
Vision with action can change the world.”
- Joel Barker

2. Agenda
1. Introduction Matija Derk (10 min)
2. Perspectives Jörgen Eriksson (30 min)
3. How to create growth Jörgen Eriksson (30 min)
4. Europe Horizon 2020 Miquel Barcelo (60 min)
5. Coffee break (20 min)
6. How to implement Lars-Göran Larsson (45 min)
7. Q&A / Discussion (45 min)
2

3. Presenting today
Föreläsare Jörgen Eriksson, Founding Partner
in Bearing and adjunct Professor of
Innovation Management, resides in
France and consults internationally.
Miquel Barcelo,
PhD and
Has since 1995 led a large number of
associate
projects related to innovation systems,
Professor of
business development, restructuring
knowledge
and R&D in Europe, Africa, the Middle
economy.
East and the United States.
Former Director General of the
Catalan Institute of Technology
and former President of the 22@ Lars-Göran Larsson, Senior Advisor
district in Barcelona. in Bearing, resides in Sweden and
consults internationally.
Currently engaged by the European
Union as an expert on RIS3 to With more than 30 years
advice countries on its experience, he has focused on local
implementation. and regional innovation
development, specializing on strategy
and design of public-private
partnership (PPP) based growth.
3

4. Places where we have worked
5

5. Perspectives
Jörgen Eriksson

6. Croatia to enter the European Union
Croatia is set to become the 28th member
state of the European Union on 1 July 2013.
7

7. The European perspective
“Europe is facing a moment of transformation. The crises has wiped out
years of economic and social progress and exposed structural weaknesses
in Europe s economy.
In the meantime, the world is moving fast and long-term challenges such
as globalisation, pressure on resources, population ageing, are
intensifying.”
- Quote from Europe 2020 Strategy
8

8. The European perspective
The EU has set out its vision for Europe s economy in the Europe 2020
Strategy, which aims at confronting structural weaknesses through
progress in three mutually reinforcing priorities:
1. Smart Growth, based on knowledge
and innovation
2. Sustainable growth, promoting a more
resource efficient, greener and
competitive economy
3. Inclusive growth, fostering a high
employment economy delivering
economic, social and territorial
cohesion
9

9. The European perspective
Investing more in research, innovation and entrepreneurship is at the
heart of Europe 2020 and a crucial part of Europe s response to the
economic crises.
So is having a strategic and integrated approach to innovation that
maximizes European, national and regional research and innovation
potential.
It is about enhancing Europe s capacity to
deliver smart, sustainable and inclusive
growth, through the concept of smart
specialization.
10

10. Specialization in Europe
11

11. The European perspective
A national / regional strategy for smart specialization (RIS3) can be
designed following a number of practical steps:
1. The analysis of the national / regional context and potential for
innovation.
2. The set-up of a sound and inclusive governance structure.
3. The production of a shared vision about the future of the country /
region.
4. The selection of a limited number of priorities
for national / regional development.
5. The establishment of suitable policy mixes.
6. The integration of monitoring and evaluation
mechanisms.
12

12. Innovation
“Based on knowledge and innovation”
What do we mean with
Innovation?
13

13. A definition of innovation
Innovation is creative destruction, where
entrepreneurs combine existing elements in
new ways…
After Joseph Schumpeter (1883 – 1950)
14

14. What is Innovation?
Innovation ?
Innovation can be incremental or disruptive
Train Car Airplane
”Invention” => Innovation => Effect (Globally)
15

15. 4 Actors in an Innovation System
16

16. 4 Actors in an Innovation System
• Education – Produce Talents
• Research - Thought leadership
17
• Knowledge Transfer

17. 4 Actors in an Innovation System
International linkages for ideas,
student exchange, networking,
for the benefit / purpose of the
18
innovation system

18. Quad Helix
Why “Quad” Helix?
19

19. 4 The triple helix dilemma…
For 20 years we have
used the traditional
triple-helix model,
describing the crossing
of three worlds;
academia, business and
government
In the photo above we can see triple helix spiral
stairs from the cathedral in Santiago de
Compostela in Spain. They all start on the
ground floor and lead to different places. The
photograph illustrates the real-world difficulties of
making the business sector, the academic sector
and government understand each other and
20
cooperate.

20. 4 The ”drain pipes”…
Successful development can never thrive on an organizational
set up where the traditional institutional borders look like the
drain pipes.
Instead, an open and innovative cross fertilization is the winning
recipe. In summary: “context management” is a prerequisite.
21

21. 4 The Quad Helix model
The Quad-Helix model
recognizes that the drain
pipe approach is not
competitive
It also illustrates the key
importance of the central
context management
The Quad Helix model
approach is at the core
of our thinking
22

22. Key elements for creating business in an innovation system
23

23. The innovation system
How to involve the private
sector?
24

24. The innovation system
Hyper competition
We live in hypercompetitive global
markets
25

25. Some drivers of hyper competition
Why hyper competition?
 Globalisation – less trade barriers and efficient transport (e.g.
containers)
 Speed of hyper connected communication and the pace of modern
business A new technology that has a serious impact on the
status quo and changes the way people have been
 Disruptive Technologies something, perhaps for decades
dealing with
26

26. World dominance
In the year 1994, Motorola was world leader in (analogue) mobiles,
seven years later Nokia was world leader in (digital) mobiles
27

27. From #1 to crises in less than three years…
Why ?
28

28. Hyper competition
“Either you innovate or you’re in commodity hell. If you
do what everyone else does, you have a low-margin
business. That’s not where you want to be.”
Sam Palmisano, former CEO IBM
29

29. It is a matter of pace
For the private sector to be
engaged and involved
requires development of the
regions, places, innovation
system and clusters in a pace
that invites private actors at
all stages of development
30

30. Vision
The importance of Visions
31

31. The Power of Visions
“Vision without action
is merely a dream.
Action without vision
Vision
merely passes the
time.
Strategy
Vision with action can
change the world.” Plans and
implementation
- Joel Barker, Futurist, Author
32

32. Vision
A well known quote from Lewis Carrols Alice in
Wonderland, a children‟s book containing much
adult wisdom.
“Alice: Would you tell me, please, which way
I ought to go from here?
The Cheshire Cat: That depends a good deal
on where you want to get to.
Alice: I don‟t much care where.
The Cheshire Cat: Then it doesn‟t much matter
which way you go.
Alice: …So long as I get somewhere.
The Cheshire Cat: Oh, you‟re sure to do that, if
only you walk long enough.”
33

33. Quad Helix
Implementation
34

34. What is included in an innovation support system?
Innovation centers are a key.
This includes:
• Technology transfer centers at Universities
• Science parks
• Industry Cluster Organisations
• Business labs
• Business Incubators
• Business Acceleration Centers
• You also need Investors and Venture Capital!
35

35. Key elements for creating of an innovation system
Key elements (or “assets”) as Finance Know-how
the base for creation of a Growth companies
Venture and
innovation system industrial
Incubator
programs
capital
Start-up companies
Innovation centers are Business plan
Entrepreneur
Seed
the key: financing
skills and
training
Business idea
• Science parks
• Business labs Patent
• Incubation Pre-seeding
Advice and
scouting
• Acceleration Innovation
• Alumni organisations
• Growth
Research and education
36

36. A model for design and implementation of innovation systems
Competitive „clusters of competencies‟
obtain strengths by mastering available
resources, by constructing new
capabilities, and by attaining access to
clusters elsewhere and to global
business networks.
1. Actors: Typically, clusters are constituted
by innovative firms, R&D labs and
supporting institutions, investors, and, as
important stakeholders, resourceful
clients, lead customers, other user
groups.
2. Assets – particularly the capabilities for
invention, original design and prototyping,
and the related infrastructure of a cluster
– are enablers of innovation. Clusters
contain tangible as well as intangible
capabilities.
3. Activities – above all the processes in
support of innovation – are at the core of
the cluster, communicate its rationale, and
shape its success. 37

37. How to create growth
Jörgen Eriksson

38. To achieve Place Excellence requires innovation
39

39. The work model to achieve Place Excellence
Assets
Governance
Activities Actors
40

40. To achieve Place Excellence requires innovation
Work with the tools of place management / place branding / place
development…
…and with the RIS3 tools and processes from the European Union.
41

41. How to achieve Place Excellence
Place Branding
42

42. Always start with your target markets
Which are the target markets of your place?
43

43. Your Sweet Spot Defines Your Future Success
Where your city meets What?
target markets needs Where?
in a way in which your Why?
Competitive Customers’ competitors cannot How?
places needs
offerings
3
1
Sweet
Spot
2 Sweet spot = unique spot
How to protect/define boundary 1,2,3
Your own city
assets and
capabilities
44
llis & Rukstad (2008). Can You Say What Your Strategy Is?, HBR (April 2008)

44. Beyond the Traditional Facts and Figures
45

45. How to achieve Place Excellence
Place Management
46

46. Focus on the Innovative Place Managers!
47

47. You need to go Beyond Office
Space!
48

48. Seattle in the 1970s – a place in decline
In the 1970s Seattle became synonymous with urban decline
49

49. Seattle – example of success
World class institutions
and companies based in
Seattle:
- Microsoft (Redmond)
- Amazon.com
- Starbucks
- Nordstroms
Today, Seattle is one of the wealthier and most productive metropolitan
areas in the United States.
- Per-capita income is 25 percent above the average -
Per-capita productivity is 37 percent above the average
Cities like Seattle succeed by smart place management, by attracting
talented institutions and people who educate and employ one another
and by building sustainable innovation systems. 50

50. With or without Direction….
51

51. Winning Places Understand Trends and Place Climates
52

52. The changing place climate
53

53. What is around the corner? Place Managers must follow trends
54

54. Beyond knowledge of m2….
55

55. How to achieve Place Excellence
Place Development
64

56. Potential Competitors or Partners
65

57. Clusters are found Everywhere
150.000 communities x 3 clusters
in average in each = 450.000 clusters
Only 10 % survive on the international
marketplace = 45.000 clusters
66

58. Some European problems
• More of the same – “A Culture of Sameness”
• No clear and discussed visions and strategies
• Minimum of benchmarking
• A lack of place managers
• Afraid of “the Big Bad Wolf” => the private sector
• Target audiences unclear
• No innovative place branding plans at all
• No passion
• Too little focus on talent attraction
• Too much focus on ”Triple Helix” instead of ”Quad Helix”
67

59. Places must Differentiate
Competition is so intense that we must hammer out
more precise niches
68

60. Build Bridges Beyond Borders
69

61. One of the most important Life Science Clusters in the World
Talent Attraction is Frequently Prioritised Today
• Life science organisations in Medicon Valley act in a global market where one of the most
important factors for success is the ability to attract and keep skilled life science experts. If
their presence in Medicon Valley—from corporate R&D to venture financing to
production—is to be maintained in the years to come, the local scientific environments
must secure a steady stream of highly skilled scientists and other potential employees. To
attract the world's best scientists and experts, our local universities must in interaction
with the private companies provide an internationally competitive research and teaching
environment that creates optimal individual opportunities for foreigners.
• Medicon Valley Alliance has initiated a process with the aim of sharply improving the
international attractiveness of Medicon Valley.
---------------------------------------------------------------------------
• Approx. 80 biotech companies
• 20 pharma companies
• 100 medtech companies
• 7 science parks
• 6 incubators
70

62. What to do then?
You need an exciting and unique business direction!
For Croatia, for the regions of Croatia and for the cities and towns
71

63. Horizon 2020
EU Cohesion Policy and RIS3:
A new vision
Miquel Barceló

64. Europe Horizon 2020 - Content
1. New EU Cohesion Policy for 2014-2020
2. What is RIS3?
3. RIS3 implementation
4. Horizontal approaches
5. Case studies
6. Conclusions
73

65. Europe Horizon 2020
1.
New EU Cohesion Policy for
2014-2020
74

66. Cohesion Policy
On 6 October 2011, the European Commission adopted a draft legislative package that will
frame EU cohesion policy for the period 2014-2020.
The Commission proposed changes to the way cohesion policy is designed and
implemented:
• Deliver the Europe 2020 Strategy’s priorities of smart, sustainable and inclusive
growth;
• Maximise the impact of EU funding, "do more with less";
• Focus on results , not spending;
• Simplification
• Territorial cohesion;
• Integrated programming;
Funding ERDF ESF Cohesion EAFRD EMFF
European European Fund European European
Instruments: Regional Social Agricultural Maritime &
Development Fund Fund for Fisheries
Fund Rural Develop. Fund
75

67. Consequences of new regulation
Common rules applicable to all funds
1. Common principles applicable to all Funds. to maximise the
impact of
2. Thematic concentration on Europe investments
2020
3. Increased performance and conditionalities
4. Ex-ante conditionalities to ensure effective
implementation
5. Ex-post conditionalities
through
6. Macroeconomic conditionalities research and innovation
7. Common management arrangements strategies for smart
8. Supporting integrated programming specialisation (RIS3)
9. Increased use of financial instruments
10. Monitoring and Evaluation
11. Simplified and streamlined eligibility rules 76

68. The European Regional Development Fund
AIMS
To strengthen economic, social and territorial cohesion in the European Union by
correcting imbalances between regions
Detailed priorities to increase focus on
• research and development, and innovation;
• Information and communication technologies;
• climate change and moves towards a low-carbon economy;
• business support to SME’s;
• services of general economic interest;
• telecommunication, energy, and transport infrastructures;
• enhancing institutional capacity and effective public administration;
• health, education, and social infrastructures; and
• Sustainable urban development.
Priorities
• Less developed regions: at least 50% of ERDF resources to energy efficiency
and renewables, innovation and SME support.
• A minimum of 5% of ERDF resources for sustainable urban development.
77

69. The European Social Fund
Aims:
• Main financial instrument for investing in people
• It increases the employment opportunities of European citizens, promotes
better education, and improves the situation of the most vulnerable people
at risk of poverty.
The regulation proposes to target the ESF on four thematic objective
throughout the Union:
1. promoting employment and supporting labour mobility;
2. promoting social inclusion and combating poverty;
3. Investing in education, skills and lifelong learning; and
4. Enhancing institutional capacity and an efficient public administration.
78

70. The Cohesion Fund
Aims:
The Cohesion Fund helps Member States with a GNI (Gross National Income) per
inhabitant of less than 90% of the EU-27 average to invest in TEN-T transport
networks and the environment.
Priorities
• will support investment in climate change adaptation and risk prevention as
well as investment in the water and waste sectors, and the urban environment.
• In line with the Commission’s proposals on the Multi-Annual Financial
Framework, investment in energy would also be eligible for support, provided it
has positive environmental benefits.
• In the field of transport, in addition to the TEN-T network, the Cohesion Fund
will contribute to investments in low-carbon transport systems and urban
transport.
79

71. Budget for Cohesion Policy post–2013
80

72. Common rules applicable to all funds
NEW EU
MEMBER
STATE
81

73. 2.
What is RIS3
-Research and Innovation Strategies
for Smart Specialisation?
82

74. What is Smart Specialisation?
What is Smart Specialisation ?
• Evidence-based considering all assets = Differentiation: SWOT analysis (all types
and problems in a region, incl. External of assets), competitive advantages,
perspective / internal / global market potential for excellence, opportunities
(critical mass? Opportunities?
= Concentration of resources on priorities,
excellence? cooperation? Value chains?)
problems and core needs (no sprinkler
• No top-down decision, but dynamic principle, no picking the winners, yes to
/entrepreneurial discovery process catalytic investments)
uniting key stakeholders around shared
= Place-based economic transformation:
vision
rejuvenating traditional sectors through
• Mobilisation of investments and higher value-added activities, cross-sectoral
synergies across different departments links, new market niches by sourcing-in and
and governance levels (EU-national- disseminating new technologies rather than
regional) re-inventing the wheel; exploiting new
forms of innovation
• All forms of innovation – no only
technology driven 83

75. What is RIS3?
Integrated agenda for regional economic
transformation, strengthening RTD, innovation and
increasing access to ICT and its use
• Based on SWOT analysis (including ICT)
• Concentrate resources on a limited set of priorities
• Encourages private investment in innovation
• Monitoring and review system
• If thematic objective 2: Chapter on digital growth:
balance of support to the demand and supply of ICT
technologies; objectives "e-“
+ derived from the NRPs: national level multi-annual
plan for budgeting and prioritisation of investments
linked to EU priorities.
84

76. RIS3 based on 4 Cs
Competitive advantage: match R&I potential with business needs
and capacities & develop cross-cutting links between sectors ; adoption
of technologies (cutting-edge / tested) to for specialised diversification of
sectors
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)
85

77. 3.
RIS3 implementation
86

78. RIS3 is a process …
… to identify areas of specialisation and
differentiation
What do they
Clients need?
Markets
With whom to
Cooperation (value cooperate?
chains)
Money
Who are your
Enterprises customers /
Enterprises competitors?
Enterprises
Services
Is there critical
Research
mass / excelence?
Knowledge
Technologies Creativity Talents
87

79. Check-box to assure successful proposals
1. Appropriate stakeholder involvement? How does it support the
entrepreneurial discovery process of testing possible new areas?
2. Evidence-based? How have areas of strength and future activity been
identified?
3. Innovation and knowledge-based development priorities? How have
potential areas of future activity been identified? How does it support the
upgrading of existing activities?
4. Appropriate actions identified? How good is the policy mix?
5. Is strategy outward looking? How does it promote critical mass/ potential?
6. Synergies between different policies and funding sources? How does it
align/leverage EU/national/regional policies to support upgrading in the identified
areas of current and potential future strength?
7. Achievable goals set to measure progress? How does it support a process of
policy learning and adaptation?
8. Conform with CP ex-ante conditionality? Which advice can be given to
improve the strategy? 88

80. Important remarks about the new rules
• Only SMEs … Large companies only in relation to Research, Development
and Innovation -Art.3 (ERDF Reg.): "The ERDF shall support productive
investment, which contributes to creating and safeguarding sustainable jobs, through direct aid
to investment in SMEs"
• No investment in physical infrastructures in developed regions -Art. 3 (ERDF
Reg.): "In more developed regions, the ERDF shall not support investments in infrastructure
providing basic services to citizens in the areas of environment, transport, and ICT"
• Synergies with Horizon 2020 -Art. 55.8 (CPR Reg.): "An operation may receive
support from one or more CSF Funds and from other Union instruments, provided that the
expenditure item included in a request for payment for reimbursement by one of the CSF Funds
does not receive support from another Fund or Union instrument,…"
• Internationalization -60.2 (b) (CPR Reg.): "The total amount allocated under the
programme to operations located outside the programme area does not exceed 10% of the
support from the ERDF…"
• Interregional and transnational cooperation -Art. 87.2 (c) v (CPR Reg.): "An
Operational Programme shall set out the contribution to the integrated approach for territorial development set
out in the Partnership Contract (Agreement), including the arrangements for interregional and transnational
actions with beneficiaries located in at least one other Member State"
89

81. Who prepares the RIS3?
The actors in an innovation system:
"knowledge triangle" & "triple / quadruple helix"
Enterprises,
SMEs,
innovators
Research
NGOs, consumers /
centres, universiti
users ...
es
National/Regional
You! Clusters, business
authorities ... networks ...
investors, Regional
incubators ... development 90
agencies,

82. Calendar for RIS3 and negotiations for the OPs
OPs Operational Programmes
91

83. Key Milestones
Common Strategic Partnership Operational
Framework Agreements Programmes
 July 2012: Europe 2020: Country specific recommendations &
assessments of national reform programmes
 Early 2013
• Adoption of the Structural Funds regulations,
• Common Strategic Framework
 + 3 months (2nd trimester 2013):
• Partnership agreements: needs analysis + conditionalities (RIS3)
• Operational Programmes including actions for RIS3
Start the RIS3 process now! 92

84. 4.
Horizontal approaches
93

85. Horizontal approaches
• Clusters
• SMEs
• Research Infrastructures
• Universities-enterprise cooperation
• Digital agenda
• Key Enabling Technologies
• Cultural and Creative Industries
• Internationalisation
• Financial engineering instrument
• Innovative Public Procurement
• Green growth
• Social innovation
94

86. Clusters
• Clusters are powerful instruments for fostering industrial
competitiveness
• Policy makers worldwide use them as building blocks for
implementing RTD, innovation and industrial policies.
• Clusters offer a huge potential to implement Smart Specialization
Strategies (S3)
• Clusters can be used in the design or implementation phase of
RIS3
• Design: To identify regional strengths and assets, set priorities and make the
right decisions
• Implementation: To allow focus, achieve new competitive advantages and
quickly contribute to RIS3 objectives.
• Barriers:
• developing clusters need local leadership and political courage to do
decisions. 95
• Identification of regional strengths is not trivial. Thorough analysis is required.

87. Clusters
 An answer to a demand by local companies and the result of a bottom-up
process. Agents between people and organisations to generate ideas and
provide potential for new business opportunities.
 The cluster organisations in Northern Central Sweden: Critical success
factors by creating an infrastructure for project development and developing
interaction between corporate research and universities.
 ERDF: € 1.302.000
Cluster links over Europe (CLoE, Karlsruhe 2005):
www.clusterforum.org/en/about_cloe.html
 Pilot project of the Regions for Economic Change initiative - Good mixture of
developed and less favoured regions.
 Sustainable impact on the institutional regional actors in the "cluster scene" + the
entrepreneurs who want to go international;
 Transnational contacts between clusters continue after the conclusion of this
project, 20 clusters + initiation of many activities under FP7 Regions of Knowledge
and CIP programmes.
 Budget: €1.808 million (€800,000 ERDF)
96

88. SMEs
• SMEs at the centre of the creation of jobs and
growth at regional level.
• SMEs key players in introducing new
product/services into the market.
• Entrepreneurship necessary to assure that ideas
are turned into growth and jobs
• Regional policy should assure the right mix of
financial and non-financial support to assist
entrepreneurs.
• SMES will be at the core of the Cohesion Policy
for 2014-20
– Notably enhancing the SMEs capacity to invest 97
in R&D, innovation and entrepreneurship.

89. SMEs
ifex: Initiative for Start-ups and Business Transfer – Baden-
Württemberg, DE (European Enterprise Awards Winner in 2006)
 Online portal for start-up and business transfer policies, giving access to 1,400
providers to tailor-made educational and support services to specific target groups
(schools, universities, women, ethnic and minority groups).
 A permanent Unit in the State Ministry of Economic Affairs and managing the
nation-wide “German Agency for Women‟s Start-ups” on behalf of three federal
Ministries.
Units for Intellectual Property Promotion (UIPP) PT, ERDF (2001-
2007)
Bringing the National Patent Office closer to companies and universities.
Services to researchers, students and to SMEs for pre-diagnosis of IPR needs.
 Training, awareness activities and seminars, IPR advertising and
dissemination, technical assistance and advice by specialists.
 Partnerships network between 2 business associations, 10 universities, 7
technological centres and 3 science and technology parks.
2001-2007: the number of hi-tech patent applications to EPO per million
inhabitants increased from 0.4 to 7.5 in PT (European Innovation Scoreboard).
98

90. Research Infrastructures
• Research infrastructures (RIs) are a driving force
behind innovation.
• There are at least 300 RIs in Europe, with high
international visibility and staffed with world-class
researchers.
• RIs is a driving for new ideas, solutions and
innovations.
• The European Strategy Forum for Research
Infrastructures (ESFRI) is consolidating a vision for
RIs in the near future, setting priorities and roadmap.
• Regional policy is exploring how to provide financial
support for the construction of future RIs. 99

91. Key Enabling Technologies (KETs)
• 6 technologies conforms the KETs :
1. Micro/nano-electronics
2. Photonics
3. Nanotechnology
4. Biotechnology
5. Advanced Materials
6. Advanced Manufacturing systems
• KETs are strategic in terms that they enable process, goods and
service innovation throughout the economy and are of systemic
relevance.
• KETs will be one of the investment priorities for the ERDF.
100

92. Cultural and Creative Industries (CCIs)
• Investing in CCIs have a significant impact on smart, sustainable
and inclusive growth.
• CCIs have a role in unlocking the creative and innovative potential
of a region, promote growth and qualified jobs.
• Digitalisation and globalisation offers great opportunities for the
sector, but it is also necessary to develop new skills, upgrade
equipment, develop new production/distribution methods and
achieve successful business models
• ERDF will support projects in this domain.
101

93. Cultural and Creative Industries (CCIs)
Debrecen, HU – Creative Industry Incubator
 The university of Debrecen set up a Creative Industries Incubator in 2009
 Hosted in a former Soviet Army Camp (transformed into a top-notch facility offering offices,
attractive operation conditions, access to high-tech equipment).
 By February 2010 85% of space was rented out to young and start-up companies as well
as spin-offs from the University at well below market rates
 The incubator proved to be highly popular particularly among high-tech ICT for which it
provides a steady flow of knowledge and human resources from the university, which is
next door.
102

94. Internationalization
• Internationalisation is a crucial component for RIS3, due to
– EU-enterprises can benefit from offshoring and outsourcing.
– Emerging countries can challenge EU-enterprises
– Internationalisation spurs strategic alliances, joint research,
M&A, etc
• Internationalization is about market and technology intelligence
aiming at how RIS3 is able to resist global competition.
• SMEs do not exploit the full potential of selling in external
markets.
• For the period 2014-20, the EC will launch the COSME
Programme –Competitiveness of Enterprises and SMEs to the
improvement of access to markets inside the Union and globally.
103

95. Public Procurement
• The public sector have a role to stimulate
demand for innovative, affordable and high-
quality solutions.
• Public procurement should be involved in the
acquisition of innovative products and
services, even in the pre-commercial phase to
stimulate innovation and market demand pull.
• US Small Business Innovation Research scheme
(SBIR) is 20 times bigger than in the EU, and US
firms benefiting from it have better access to
private venture capital.
• Public procurement strategies should be
incorpored as a RIS3 component.
• ERDF will permit the strategic combination of
investment in R&D and public procurement 104
schemes.

96. Public Procurement
East of England pre-commercial procurement for health care innovations
 May 2009: first pre-commercial procurement of an innovative
process, material, device, product or service to help meet current health priorities in the region;
 ERDF funded initiative: Up to £100,000 was awarded for winning tenders in a first phase with
the potential of further financial assistance to develop and evaluate projects in a second
phase.
 The aim is to provide procurement opportunities for innovative health care businesses and
bring the benefits of new innovations and technologies to patients.
105

97. 5.
Case Study
Barcelona Tech Technology Center
Universitat Politècnica de Catalunya
106

98. Barcelona Tech Technology Center
Technology Transfer and Business Orientation for R&D institutions and universities
107

99. Barcelona Tech Technology Center
108

100. Barcelona Tech Technology Center
Technical details
• Client: Universitat Politècnica de Catalunya
• Place: Barcelona
• Year: 2009-ongoing
Results of the collaboration
• Design of the new institution
• Success in the presentation to the 19
laboratory leaders
• Actual creation of the Centre
• Growth and development of the institution,
• 5 year roll-out of the institutional plans
• 6 staff and increasing
• Access to funding
109

101. Example project
22@ Barcelona
110

102. Innovative Urban Areas (IUA) and Innovative Ecosystems
In old districts that can be renewed and revitalized, or in new areas available for bold development, cities have the
opportunity of creating innovative urban areas that concentrate scientific and business talent in an attractive and
lively urban environment. A constant dialogue between residential, cultural, economic and S&T activities is at the core
of the IUA model. A fruitful and coherent dialogue between the physical aspects (urban planning, infrastructure,
architecture), the content (companies, R&D centers, universities, incubators, etc) and the relationship networks is
crucial during the design, construction and steady-state phases of the project.
111

103. We have the model and the hands-on experience necessary for the long-term success of Urban Innovative Area
projects, designing, developing and managing science&technology parks, smart districts and new campus initiatives.
112

104. The old Poble Nou industrial district was suffering a long process of de-
industrialization and urban decay since the 1960s. After the Olympic Games and
the recuperation of the sea front, an important group of businessmen,
engineers and intellectuals proposed an alternative vision for the Poble Nou,
based on the knowledge economy, which would attract business with low-
impact, in accordance with XXIst century industry. Miquel Barceló, President of
Innopro Consulting, was part of this group, participated in the discussions with
the Mayor and became President of the 22@, leading all aspects of the urban,
S&T and business developments.
22@ served as the model and offered the large-scale hands-on experience
Innopro has now capitalized. The dense, complex, diverse, green, innovative,
high-tech city designed and built in 22@ has impregnated all subsequent
Innopro projects. The clustering strategy, bringing together business, public
administration, university and R&D and the civil society around the sectors of
Media, ICT, Medical Devices and Pharma has guided the attraction and
development of all knowledge and business development of 22@ since 1999.
Technical details
Client: 22 @ BCN, S.A.U. (City Council)
Place: Barcelona
Year: 2004-2007
Team: Miquel Barceló (President 22 @ 2004-2007)
Results of the collaboration
- Urban Renewal: 1.323.000 m² new floor (70% business, 18% housing and 12%
public facilities) and 114.000 m² of green areas.
- Economic Renewal: Aggregate revenue 6.000M€, 1.502 companies, 40.000
new employees, 25.000 university students.
- Social Renewal: 1.500 Public Housing Units, 12 R&D centers, workforce with
77% graduates.
113

105. 6.
Conclusions
114

106. Key issues to remember
• New Structural Funds & Rules for the period
2014-20
• RIS3 as the key methodology for ex-ante
conditionalities
• Projects submission will take place along
2013
• Sectors identified in the Horizontal
approaches could be a source of inspiration
• We are ready to support you.
• And …
115

107. Key issues to remember
… When to start the
process?
Now!
116

108. How to implement
Lars-Göran Larsson

109. The work model to achieve Place Excellence
Assets
Governance
Activities Actors
118

110. Implementation of Europe Horizon 2020 Growth Strategy
Implementation must start by establishing a
multi-level-governance structure
securing the seamless coordination from;
Assets
National – Regional – Local levels.
Development of the regional leadership Governance
- A case study
Activities Actors
Draw the map – Where do we stand today?
1. How competitive are we as a region?
• Comprehensive research, fact based analysis and bench-mark of ie;
• Business competitiveness, do we grow?
• population in job, talent matching, value-add development etc.
• Living attractiveness
• Visitors and tourism
• Direct investments
... identify the grounds from where we start! 119

111. Implementation of Europe Horizon 2020 Growth Strategy
Major challenges faced at start
Assets
1. Lack of coordination in the growth supporting
system (many disparate actors) Governance
2. Unify the political leadership agenda and acquire a
solid mandate Activities Actors
3. Tear down barriers and borders
4. Change of attitudes to become including and cross
sectorial committed
120

112. Implementation of Europe Horizon 2020 Growth Strategy
Implementation must start by establishing a
multi-level-governance structure
securing the seamless coordination from;
Assets
National – Regional – Local levels.
Development of the regional leadership Governance
Map the present regional growth support system Activities Actors
1. Do we have an agreed and committed lead star for what we are aiming at?
2. Do we have an agreed and committed work model for how we get there?
2. What does the regional and local support system look like?
3. Are the regional and local support systems organised efficient enough?
4. How does this tie in to the national, regional and local levels? 121

113. Implementation of Europe Horizon 2020 Growth Strategy
EU Horizon 2020 Frame Work
Country • National Innovation Strategy
• Regional Development Programs
Region
• Regional Innovation Strategies
• Regional Development Plans
Local
Community
• Local Development Plans
... a bottom up and top down cooperative process
122

114. A successful innovation policy emanates from…
… a firm understanding of the conditions for regional business dynamics and
awareness of cluster innovations gaps
… focusing the innovation strategy to ”bridges and traffic”
… the start of processes in small scale and by small funds
… stimulating establishment and fostering of clusters as important development
tools
Cluster dynamics
Regional dynamics
123
(Courtesy: Sölvell & Lindquist, Stockholm School of Economics, 2012)

115. The dream of dynamic clusters...
Research &
Authorities Scientific
organisations
Industry/Business
$
Capital Educational
providers institutions
124
(Courtesy: Sölvell & Lindquist, Stockholm School of Economics, 2012)

116. …in reality, we find many severe gaps - the 7 innovations gaps...
Global market gap
Authority gap
Science gap
Gap between
companies
Education gap
$
Capital gap
Gap between clusters
125
(Courtesy: Sölvell & Lindquist, Stockholm School of Economics, 2012)

117. Implementation of Europe Horizon 2020 Growth Strategy
How to create better output from the regional support systems?
• Common regional vision and goals
• Common regional innovation strategy
• Harmonisation with local goals and strategies
• Very close involvement and commitment from the University and
other talent providers
• Systematic development of bridges for commercialisation of
research, knowledge and SME business development
126

118. Implementation of Europe Horizon 2020 Growth Strategy
Implementation key’s
Focus:
• Visualisation of the regional strategy
• Regional growth in focus by introduction of an
innovation driven work model
Work model:
• A clear work model to be developed jointly by all
regional actors
• Clear responsibilities and tasks
Political involvement and anchoring:
• Establish formal procedures and bodies necessary
for political anchoring and decision making
Demand/market driven structure:
• Secure a demand and business driven attitude in
the system
• Involve the Industry early in the process
127

119. Implementation of Europe Horizon 2020 Growth Strategy
Identify, organise, make visible and available...
all relevant supporting stake holders in the PPP context
• The regional network of publically financed
growth actors that has the mission to support
and develop innovation driven local and
regional business development
• The show cases, market forums and arenas
where ideas and entrepreneurs in different
phases of development can be navigated to
the most appropriate support actor
• The efficient use of the overall resources for
business development
128

120. Implementation of Europe Horizon 2020 Growth Strategy
The Process
1. A creative series of “including”
workshops.
2. All local and regional key actors
and stakeholders jointly
develops the regional business
and innovation system model
3. National Agency for Economic
and Regional Growth All competences
participation cooperate towards
4. Analysis, baseline definition and common goals and vision
cross functional exchange of
missions, experiences and goals
5. Inspiration lectures, team work
and individual work in between
the workshops
129

121. Implementation of Europe Horizon 2020 Growth Strategy
The regional business model
• Creation of a common brand for
regional growth
• Concrete and coordinated work
model for all actors in the growth
supporting system
• Common ”tools” and coordinated
project office
• Clear roles and responsibilities
• Cross functional and cross
organisational work processes
130

122. Implementation of Europe Horizon 2020 Growth Strategy
Regional Innovation Strategy (RIS) is
the foundation for creation of an
innovation based work model
… this facilitates :
• A systematic and conscious
efficiency of the supporting
system for growth – a ‟business
eco-system‟
• Optimal prioritisation of
internationally competitive focus
areas
• Development of strong cluster
initiatives
• ”Smart” specialisation in line with
EU definition
131

123. Implementation of Europe Horizon 2020 Growth Strategy
Governance model – Including and embracing
Civil society and
business life
Local actors
Regional actors
Business Region
model & project
support office
132

124. We need to create bridge builders to close the gaps
$
133
(Courtesy: Sölvell & Lindquist, Stockholm School of Economics, 2012)

125. 4 The ”drain pipes”…
The root to all inefficiency…
… the sectoral drain pipe
134

126. Regional Business Process Governance System
(This is an example – The individual process defines the specific case)
Political anchoring Process management Support areas Regional cross
Co-ordination, Prioritisation, (cross work flow processes) sectoral growth
Financing, Project office system
Chairman forum Process management
Project Office Business development
Regional council & University
Regional government
Regional market
Local government Entrepreneurship
County administration Process development
group Innovation environment
Process managers. &
Process flow managers
Financing
Regional Council
County Council
Local Communities Direct investments & new establishments
Science Parks
Incubator/s
University Visiting & tourism
National Finance
Market Communication,
Promotion & Events
135

127. Cluster organisations as neutral bridge builders
1. Change of standards to stimulate alertness, changeability and
collaboration
2. Creation of venues and forums to stimulate interaction between actors
3. Creation of a shared vision and a ”common language”
4. Building infrastructure and ”traffic” for improvement of the innovative
climate
5. Create innovation projects that crosses over actors traditional borders
6. Connect the region and its clusters to global value chains and markets
... don‟t underestimate
the “coffee break effect” 136
(Courtesy: Sölvell & Lindquist, Stockholm School of Economics, 2012)

128. Implementation of Europe Horizon 2020 Growth Strategy
Responsibilities anchored in market and demands
Target Basic
groups demands
DEMAND Local services Structured processes
Work model
Follow up Communication
Evaluation
Supporting Regional
activities services
137

129. Implementation of Europe Horizon 2020 Growth Strategy
Lead by common commitments…
Common vision, strategies and goals
Consensus Cooperation
Reliance Humbleness
... qualitative and quantitative goals will
be met in symbiosis with EU Horizon
2020 agenda
138

130. Bearing on the web
Read more about what we
do on the Bearing homepage
www.bearing-consulting.com
Bearing has a blog with
an active debate
blog.bearing-consulting.com
139

131. INNOVATE - EXECUTE™
Innovation is creative destruction, where entrepreneus combine
existing elements in new ways... – Joseph Schumpeter (1883-1950)
140