Dia 1

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Bernard De Potter Administrator - General
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Flanders 2.0Flanders In Action

• IRE
• 25 November 2008

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Flanders ?
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Flanders some figures

• one of 3 regions in Belgium
• 6 million inhabitants
• 60 of European Union purchasing power lies
  within 400 km
• 5 universities
• very open economy (80 export)
• strong sectorsautomobile, petrochemicals and
  plastic processing,life sciences
• excellent ICT-infrastructure
• educated, productive, loyal, multilingual
  workforce

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WHO ARE WE?

• Internally autonomous agency
• without legal personality
• Economy, Science and
• Innovation policy area

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WHAT DO WE DO?
Objective to promote entrepreneurship

• 3 themes
• Enterprises
• Entrepeneurship
• Environmental factors

• 3 perspectives
• Integrated approach
• Future-oriented approach
• Result-oriented approach

EUROPE ERDF Enterprise Europe Network
300 mio euro 115 FTE
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IWT Who are we ? Some facts figures
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IWT Who are we ? Some facts figures

• IWTs budget is approx. 26 of total Flemish RD
  budget

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Funding programmes (Subsidies) Overview,
data 2007
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Funding Programmes (Subsidies) Some
characteristics

• No thematic priorities
• Bottom up
• Open calls for direct support RD and post-doc
  fellowships
• Closed calls with priority ranking for other
  programmes Proposals 1,600 (2007)
• Proportion SME in industrial RD (2007)
• Budget 38
• Proposals 78

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Funding Programmes(subsidies) Support to
Industry 2 programmes
From 1 jan 2009
Type of company
Project cost
RD company projects
Large Company (or SME with a large project)
1.000.000
SME innovation projects
100.000
RD-F studies
SME
SME-innovationstudies
10.000
Technologie-exploration
research
developm
engineering
Idea
Feasibil. study
Innovation Phase
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Funding Programmes(subsidies) Support to
Industry, level of support
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Funding programmes (subsidies) Support to
industry Granted budget within the RD and SME
programmes
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Agenda

• Innovation Systems conceptual frameworks
• Innovation Systems Outcome of the IRE working
  group
• Innovation Systems the Flanders Case
• Web 2.0
• Case Flanders In Action

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Regional Innovation Systems

• Part 1 Conceptual frameworks

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Defintion Concept of a region

• Criteria for determining a region
• Not determinated size
• Homogeneous in terms of specific criteria
• Distinguished form bordering areas
• Some kind of internal cohesion
• Ex. Silicon Valley, Ruhr region

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Definition Innovation

• Invention the production of new knowledge
• Innovation the first application of new
  knowlegde withing economic context
• Diffusion the broad use of new techniques and
  technologies

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Models of innovation

• Linear model amount of fundamental research
  influences the opportunities of technological
  innovation which in turn determines the growth
  rate of its output
• More interactive and open models it includes
  all forms of activities problems of awareness
  and definition, the development of new ideas and
  new solutions for exisiting problems, the
  realization of new solutions and options, broader
  diffusion of activities
• Third generation models horizontal coordination
  with other policy ares (innovation platforms)

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Definition Systems

• A system of innovation as being constituted of a
  number of elements and by the relationships
  between these elements
• Open feedback mechanism
• Social interaction between economic actors
• Operational and conceptual
• Operational the real phenomenon
• Conceptual a theoretical study model

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National Innovation System
Framework Conditions Financial environment
taxation and incentives propensity to innovation
and entrepreneurship mobility ...
Demand
Consumers (final demand) Producers (intermediate
demand)
Education and Research System
PoliticalSystem
Industrial System
Large companies
Professional education and training
Government
Intermediaries Researchinstitutes Brokers
Higher Education Institues and Research
Governance
Mature SMEs
New, technology- based firms
Public sector research
RTD policies
Infrastructure
IPR and information
Innovation and business support
Banking, venture capital
Standards and norms
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Regional development a staged model
Innovation driven economy
Efficiency driven economy
Compete on creativity
Income per capita
Compete on organisational excellence
Factor driven economy
Compete on low cost
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Regional Innovation Systems

• Part 2 The IRE working Group

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Key factors for an effective RIS

• Interaction
• Openess
• Need orientation
• Steering
• Strategy
• Vision

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Interaction

• To enhance interactivity, one can
• Involve stakeholders in the debate
• Attribute clear roles towards the various
  stakeholders
• Built upon shared, commonly agreed objectives
• Foster of working cooperations (e.g. networks,
  clusters, task forces, events, study visits, )
• Allianz Bayern Innovativ, Innovation Pole Crete

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Openess

• Aspects that identify openess
• Openess to change
• Openess to other people, territories,
  organisations (Richard Florida rise of the
  creative class)
• Avoid Not invented here syndrome
• Incentives for creativity, experimentation, ..
• Propensity to internationalisation
• Open innovation at the High Tech Campus Eindhoven
  (NL)

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Need orientation

• Key elements are
• User driven orientation
• Knowledge about the firms needs
• Client-orientation
• Proximity to the client
• Techniques market analyses, customer surveys,
  innovation gap analyses, foresight exercises, ..
• Innovation need identification in Lower Austria

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Steering

• Relevant elements are
• Clearly articulated strategy
• Leadership
• Stability in planning
• Monitoring and evaluation (feedback loops)
• Eg Flanders Innovation Network Steering Group
• Eg Innovation Forum in the Province of Milan

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Steering
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Strategy

• Key critical aspects are
• Existence of political backing
• Involvement of regional champions
• Existence of an inn. and enterpreneurial culture
• Clear identification and communication of
  priorities (progrees need to measured)
• Existence of support infrastructure
• Existence of critical density of inn.
  Collaborations
• Strong and legitimate leadership
• Maintenance of adequate ressources and tools

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Strategy

• Building a regional innovation strategy in the
  Helsinki Metropolitan Area
• Forum for Growth in Southern Danmark

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Vision

• Critical aspects
• Long-term based (beyond elections)
• Focussed on regional strenghts
• Realistic and motivating
• Fully communicated
• Consistently followed and measured
• Eg Flanders in Action

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Regional Innovation Systems

• Part 3 Flanders Innovation System

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Flemish Innovation System public services
providing support to companies (situation from
2009)
Minister of Finance
IWT
PMV
Internatio-nalisation
Innovation
(Risk) Capital
Entrepreneurship
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Most important innovation actors in Flanders
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Flemish Innovation System Kind of support
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Characteristics of the RIS-Flanders

• Innovation Pact
• Main characteristic bottom-up driven
• But some choices are made top-down
• Flanders Innovation Network
• Flanders in the ERA
• Importance of private RD

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Characteristics of the RIS

• Mobility schemes
• Innovation financing
• Fiscal instruments (on federal level)
• Thrid generation instruments

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1. Innovation Pact

• High level declaration signed by all parties in
  Flanders
• Universities
• Research centers
• Employers and employee organisations
• Flemish government
• To achieve the Lisbon objective (2 - 1)

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2. Bottom-up policy

• Project financing of different kinds
• RD Fund at the universities
• FWO RD Council
• IWT industry-led initiatieves

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3. Target areas

• Due to the RD excellence either in academia as
  in industry, following strategic basic research
  centers are created
• IMEC micro-electronics
• VITO technological research (energy,
  environment, materials, earth observation)
• VIB biotechnology
• IBBT broadband technology (living labs)

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3. Target ares (bis)

• Competence poles or industry-led
  innovationplatforms are funded in the following
  themes
• Flanders Food functional food
• Flanders Drive automotive
• Flanders Mechatronics Technology Centre
• Flanders Logistics Institute
• Flanders In Shape productdevelopment and design
• Flanders Materials Research Center
  combinatiorial design

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4. Flanders Innovation Network
Central Steering Group (COG) (VIS TTO important
intermediairies, higher education institutes, ...)
Network Competence- centers
RIS/VIS
TD/VIS
IWT coördination
Interfaces univ Important RTOs
TIS/VIS
Thematic platforms
Cooperation projects (tools expertise)
Exchange of knowlegde
Annual VIS-event
Internal and external communication (Innovationnet
work, e.a.)
International cooperation (7KP CIP ERA-net 6
CP TAFTIE OECD, ...)
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Flanders Innovation Network
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5. Flanders in the ERA
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Funding Programmes (subsidies) Interactionwith
international programmes
IWT supports Proposal submission
IWT co-funds with other countries and/or EC
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Funding Programmes (subsidies) Opening up

• Forreign actors (companies, knowledge centres)
  can participate in different ways
• Become member of follow up committees
• Funded participation in 3 programmes either as a
  subcontractor (the programme RD for companies)
  or as a full partner (companies and/or knowledge
  centres) in the University programmes
• Financial support in 2007
• 45 M out of 145M for projects in which a
  foreign partner was directly involved
• 15M direct funding for foreign partners (50/50
  IWT, Companies)

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6. Importance of private RD
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7. Human factor

• Odysseus programme re-attract excellent RD
  people
• Methulasem programme special funding for
  excellent researchers
• Baekeland programme PhD in the industry
• Gender issue

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8. Innovation financing

• Business Angels
• VINNOF
• Arkimes-Fund

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financing sources
CF
Bank
Venture Capitalist
Government IWT subsidies -
Business Angel (syndicate)
Entrepreneur, 3 Fs
time
Sweat equity
Seed money
Start-up
Expansion
Sales
Expansion
regional
Prototype
Product support
market segment
Product introduction
Marketing
proof of concept
engineering prototype
helpdesk
working capital
product dev.
1st personnel
maintenance
1st marketing plan
start marketing
business plan
product enhancements
production prototype
management team
market studies

marketing plan
Source Rudy Aernoudt (adapted BAN-V)
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Innovation financing
High Risk
Arkimedes gt250.000
VINNOF 100.000-250.000
BA Lening Participatiefonds Max. 125.000
Low Risk
Winwin-lening lt50.000
Pre-seed
Start-up
Early-growth
Expansion
Seed
Source Rudy Aernoudt (adapted BAN)
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9. Fiscal instruments

• State Aid measure N649/2005 Belgium
• Parafiscal incentives for RD personel
• An exemption for RD personel working together
  with universities and Higher Education Institutes
  on RD-projects
• An exemption for RD personel with certain
  diploms
• A new status for a company Young Innovative
  Company

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Flemish Innovation System Fiscal
measures(Federal level)
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10. Thrid generation instruments

• Lead markets
• Public Technology Procurement
• Living Labs
• Innovation Platfoms

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CSF on the INSTRUMENTS

• An outcome driven set of innovation instruments
• Collaboration and convergence as means to bundle
  forces
• A broadening and deepening of the fundable
  activities
• More broader orientation towards the different
  economical players (eg service innovation)
• The policy mix equilibrium between grants,
  fiscal and other instruments

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CSF on the instruments (2)

• A layered policy mix, taken into account esp the
  EC level
• (De)regulation
• Multidisciplinarity, also on the level of
  education and talent development
• Stimulate innovation in social sectors

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Regional Innovation Systems

• Part 4 The case Flanders in Action

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Web 2.0

• Open platforms
• Freemium business models
• New tools Wiki, Blogs, ....

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Innovation platfoms

• Transport Logistics
• ICT and services for Health
• Translational research
• Functional Food
• Nano-electronics
• Strategic initiative Materials
• Manufacturing industry (mechatronics)
• Sustainable chemistry
• ICT for socio-economic innovation
• Smart grids

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Cooperation and convergence

• To strenghten Instruments for collaboration
• To look behind the walls
• Interdisciplinarity
• Intersectoral mobility
• Service innovation
• Thrid generation Innovation policy

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Strong actors

• To strenghten the universities
• Multi-annual growth path for FWO and BOF
• More segmentation in instruments
• Starters
• Small enterprises
• Medium-sized enterprises
• MNE
• Other actors not-for-profit, ...

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Human capital

• To enhance the participation of higher education,
  esp in Science and Technology
• The creation of a attractive career path
• The efficient use of human potential for
  innovation
• Attention for transferable skills in curricula
• Attract foreign talent (Use of English in
  Universities)

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Internationalisation

• Vision on innovation and internationalisation
• Optimal synergy between EC and Flemish
  instruments
• Continuous follow-up of the EU policy
• Presidency of Belgium in 2O1O

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Sustainable environment

• Structural and social innovation
• Optimal Policy mix
• Public innovation funding for more risky projects
• Facilitate innovation on the basis of regulation
  and deregulation

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CONTACT
Agentschap Economie Koning Albert II-laan 35 bus
12 1030 Brussel Tel. [phone] Fax
02-553.38.69 E-mail economie_at_vlaanderen.be www.ag
entschapeconomie.be
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LOGISTECH Transport, Logistics and Mobility

• To maintain the top position in this field,
  activities of all actors need to be made
  congruent
• Project a global knowledge center and platform
  for logistics

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I-HEALTHTECH

• The convergence of technology, the needs of the
  ageing population, ... make that innovation in
  the health system becomes extremely important.
• Flanders has an excellent activities in this
  field, either in RD, business, and the public
  health system
• Concrete challenges are ICT decision support
  systems, ICT and homecare, digital patient data

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MEDITECH

• Flanders has an outmost critical mass and
  excellence in biomedical research at the
  universities and the university hospitals.
• In the same sence, it has a well known
  biopharmaceutical sector
• Concrete challenges are the development of a
  biodatabase and an adequate infrastructure for
  clinical and translational research, a platform
  for the relation food and health.

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NANOTECH

• Supermini chips, new and intelligent materials,
  sustainable chemistry and smart energy production
  are challenges
• Projects complex heterogeneous systems,
  strategic initiative materials, sustainable
  chemistry and manufacturing

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SOCIOTECH

• The gap between technology-driven development and
  the benefit for the customer remains. Innovation
  with utmost attention for userfriendly
  application is essential for the future
• Project Flanders enabling ICT platform

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ECOTECH Environment, Energy

• To bring demand and supply in equilibrium, ask a
  new management forms of the energy production and
  distribution network
• Concrete exemples striving towards zero-energy
  systems, smart grids, cradle-to-cradle initiatives