Title: Rationale for Regions of knowledge Pilot action
1Rationale for Regions of knowledgePilot
action
- Information Day
- Brussels, CCAB
- 24 July 2003
Dimitri CORPAKIS Head, Sector Regional Aspects,
DG RTD-A5.2 dimitri.corpakis_at_cec.eu.int
2Structure of this talk
- About the Pilot Action Regions of knowledge
- A Knowledge era
- Players in the Knowledge based economy
- Role of the regions
- Strategies and their delivery issues
- Need for experimentation
- Regions of knowledge (KnowREG)
3About the KnowREG Pilot Action
- Introduced by the EP (2003 budget, budget heading
B5-513) Pilot Project under the meaning of the
Interinstitutional Agreement of May 6, 1999,
between the Parliament, the Council and the
Commission, on budgetary discipline and improving
the budgetary procedure (OJEU C 172 of 18.6.1999,
p.1) - Not a part of the 6th Community RTD Framework
Programme, separate from the Structural Funds and
their Innovative Actions - Total budget 2,5 MEUR
- Call for proposals to be published soon /
Proposals on transnational / transregional basis
4KnowREG Objectives
- Pilot Project "Regions of Knoweldge" (code named
KnowREG) will provide a demonstration and mutual
sharing platform for technology development at
regional level through sharing of experience,
across European regions. Actions have to
demonstrate a high degree of integration between
technology and regional economic development by
involving in a creative way local authorities,
higher education institutions, research centres
and the business community. - KnowREG actions will provide blueprints and
models that may be used by European regions. They
may invest on the rich experience of the FEDER
Innovative Actions or the Regional Innovation
Strategies initatives (RIS/ RITTS, RIS etc.) - The main objective would be to provide
collaboration patterns on a transnational /
transregional basis that would demonstrate the
central role of knowledge in driving regional
development.
5A Knowledge era
- Todays advanced economies are knowledge-based
- Fast growing accumulation of and reliance on
formal scientific and technical knowledge
affecting all sectors of the economy, with ever
higher ST content embedded in products and
services and, as a consequence, need for more and
better qualified human resources - Availability of powerful technical means for the
diffusion and use of knowledge, and for more
efficient economic activity, thanks to
information and communication technologies (ICT
Global networks) - Increasing pace of trade liberalisation and flows
of goods and services, pushing world economies to
focus on more knowledge-intensive activities.
6The Lisbon roadmap
- The vision within 10 years (2010), Europe should
become the most competitive and dynamic knowledge
based economy and society in the world - Sustainable development, together with
quantitative and qualitative improvement in
employment greater social cohesion improvement
of the labour market better governance
life-long learning and people mobility - Through an Open method of co-ordination and
benchmarking (as a continuous, mutual learning
process) - Barcelona European Council confirmed RTDI as a
top priority for the EU (March 2002) - Ambitious goal of 3 of GDP average investment in
RTD set. Action Plan adopted, April 2003 - ERA became one of the cornerstones of the Lisbon
strategy - Strong message for Member States, the Regions and
the ST community
7New policy impulses
- The Communication Investing in Research an
Action Plan for Europe adopted 30 April 2003,
providing a specific and coherent framework for
action at national, regional and European level
(COM(2003)226 final, 30 April 2003) focusing on
the 3 Barcelona objective - The Communication on the Role of Universities in
the Europe of knowledge (COM(2003) 58 final, 05
February 2003)
8Players in Europes knowledge economy
- Universities and Reserch institutions stand out
as the main gateway to knowledge - The business community contributes in a decisive
way - Knowledge is created and consumed by both
parties, as exchanges intensify - The economy is the end user but huge disparities
remain between the Centre and the Periphery
of Europe - European Regions theatre of the action or active
players?
9Regions as drivers of economic development
- Economic research suggests that upgrading
"knowledge" and increasing technology diffusion
at regional level may prove one of the most
efficient routes for economic growth. - Regional Innovation systems may arise when a
number of factors are in geographical proximity - Proximity remains a powerful driver of
intellectual, commercial and financial exchanges,
despite the famous Death of distance - regions are important because they form the
spatial basis of "clusters (groupings of
research and innovation operators), now again
considered as the main drivers of regional
development
10A rich regional research and innovation
landscape in Europe...
- existence of research and innovation policies at
regional level /successful implementation of
cross-border cooperation - Universities, businesses, local authorities / ST
parks gather in one place universities, RD
organisations, multinationals, SMEs or
laboratories // technopoles, provide support to
regional ST growth - However, a lot of fragmentation and
un-coordinated eforts
11...But big regional disparities in RTD remain
- Second Cohesion Report, adopted Jan. 2001, as
well as the Eur. Innovation Scoreboard (2002)
identified persistent convergence issues - Cohesion countries technology gap compared with
advanced countries has widened - Concentration is general (in expenditure, human
resources and patent applications) - Forthcoming enlargement brings additional issues
12RTD regional expenditure in the EU
13High-tech patent applications per million of
active population (y 2000)
14Conflicting debate over convergence (Convergence
trends (I) )
- Between 1988 and 2003, Greece, Spain and Portugal
recorded a gain of 12.1, 11.3 and 12.9 percentage
points of GDP respectively in relation to the
Community average. - Between 1991 and 2001, the average growth of per
capita GDP of the Objective 1 regions was 3.1
compared to 2.1 for the EUR-15. If the regions
of eastern Germany are excluded, the growth rate
remains still higher than the average of EUR-15
(2.5). - An independent study, to be published soon, shows
that, between 1988 and 1999, Objective 1 regions
converged three times more quickly than regions
of the Union
15Convergence trends (II)
- Cambridge Econometrics, using gross value added
(GVA) data, confirm a higher growth rate over the
same period in the Objective 1 regions (2.9 pa)
in relation to the Community average (1.6 pa),
the increase in productivity (efficiency/modernisa
tion) explaining almost all of this performance. - 9 regions, accounting for 16.3 million citizens,
would no longer be eligible for the Objective 1
after 2006, indicative of an important process of
growth and convergence. - The ex-post evaluations on assistance in the
Objective 2 areas show that the areas eligible
under this Objective create more jobs than those
outside it.
16Despite convergence trends the knowledge based
economies diverge in the EU
- Europe is riddled with two-speed economies within
its regions, resulting in a prosperity gap that
has widened by 25 per cent, according to a recent
study. The European Futures Report warns that the
lack of large private-sector investment in
research and development (RD) is hampering
knowledge-based growth. - Compiling a European Competitiveness Index based
on knowledge-based sector activity such as
employment, patents, RD expenditure and property
rents, the study focuses on European regions. - Divergence of knowledge economies across the
continent is widening the gap with the US
17Regional variations in the EU expanding
prosperity gap
- The European Futures report - which is to be
launched at the World Future 2003 Conference in
San Francisco this week - finds that between 1994
and 2000 the prosperity gap within Europe's
nations increased by 25, measured by the level
of inter-regional variation in the economic
performance of Europe's nations. - This divide in performance may suggest that
Europe becomes less economically cohesive.
Economies that suffered the biggest widening of
their prosperity gaps appear to be Finland, the
UK, and the Netherlands. In Finland, the economic
gap between the nation's most and least
prosperous regions increased by a massive 353 ,
while the economic gap between the UK's regions
has increased by 54 during the last decade.
18Bridging the Technology and Innovation Gap
(Building Capacity in the Regions)
- Unique experience makes the EU a world leader in
the field - EUR 135 Billion earmarked for Objective 1 regions
from the STRF (2000-2006). - Out of the 218 BEUR allocated for all regions
under the STRF, 9 BEUR are effectively allocated
to RTDI actions (2000-2006) - Despite successful cases, significant delivery
problems remain at regional and local level, as
the operational routes to the knowledge economy
are unclear or not sufficently understood
19A series of efforts at EU level
- Over the last decade, the Structural Funds and
the RTD Framework Programme helped with
initiatives that focused on - analysis / assessment
- priority setting
- monitoring methodologies
- STRIDE
- RTPs
- RIS
- RITTS
- RISI
- etc.
..But delivery problems remain
20Globalisation challenges
- Locational choices for higher value sustainable
economic investments are increasingly determined
by market considerations (accessibility and
economic framework conditions) rather than by
public inducements and subsidies - Regional policies need to understand the process
by which international business functions spill
over to lever up competitiveness in the
indigenous business base
21What can be done to enhance regional capacity in
the knowledge economy
- Transform the economy into a learning one
- Establish coherent development strategies based
on local comparative advantage / regional
foresight - Set up the appropriate framework conditions for
RD and innovation - Stimulate the take-up of new technologies
- Local partnerships emerge as leaders in this
process. Universities may play there an important
role
22Regions are mutually reinforcing the European
Research Area
- A new vision for European research, mobilising
also the regional level - Re-invent the European research landscape
- avoid 151 policy framework
- reduce fragmentation of effort
- improve use of scarce resources
- improve organisation of research
- move to a really European research policy
- mobilise all operators the Unions Institutions,
the Member States, the Regions, the Public ST
and the business RD communities - build a new, lasting partnership
23What we are after activating regional research
and innovation clusters in Europe
- Combined efforts of different Commission services
converge here - DG Regional Policy (Innovative Actions,
Operational Programmes) - DG Enterprise (Regional Innovation Strategies,
Regional Innovation Technology Transfer
Strategies, RIS/RITTS, IRE Network, PAXIS-Regions
of Excellence) - DG Research Regional Dimension across several
areas of the FP
24Examples of successful regional clusters in the EU
- Northern Finland Oulu University and VTT, acting
as driving force of regional RTDI development,
focused on electronics as a development sector. A
public technology transfer company (OuluTech)
created by those bodies and the state,
instrumental in developing specialised clustering
in the region. - Bavaria (Germany) impressive regional clustering
in the BioTech-Region München, focusing on
biotechnology. München Martinsried, is one of the
three BMBF sponsored BioRegio areas in Germany.
The region hosts now more than 120 pharmaceutical
and biotechnology corporations. - Andalusia (Spain) showcase of Intra-regional
RTDI clustering, where, under managing mentoring
of the IAT (Instituto Andaluz de Tecnologia),
several industrial clusters in the areas of
aeronautics / transport, automotive and
ship-building emerged from the local RITTS
(Regional Innovation and Technology Transfer
Strategy) project, involving about 100 innovative
SMEs in various actions (INNOVA 100 scheme
including transfer initiatives, joint research
projects, targeted technology management/ audit
seminars, product design).
25Need for experimentation still important
- A huge diversity of administrative and
operational regional structures may accelerate or
slow down capacity to act and capture the
benefits of the knowledge-based economy and
society. Know-how develops in this field in many
different ways and with different speeds. But
where local actors have been active, significant
benefits have emerged. - The current experimental action on Regions of
Knowledge may provide important insights on
different aspects of the routes that regions may
follow to reach faster the Knowledge based
economy.
26KnowREG Strands
- INTEGRATED REGIONAL TECHNOLOGY INITIATIVES
- Technology audits and Regional Foresight
- University driven actions for regional
development - Mentoring initiatives
- SUPPORTING MEASURES
- Workshops
- Conferences
27Net links
- http//www.cordis.lu/era/knowreg.htm (The Regions
of knowledge Web page) (Not yet operational /
untill the Call is published) - http//www.cordis.lu/era/regions.htm (Regional
Dimension of the ERA) - http//www.innovating-regions.org/ (The IRE
Network, Innovating regions in Europe) - http//europa.eu.int/comm/regional_policy/themes/r
esear_en.htm (Structural Funds and Research /
Innovation)