and work to coordinate domestic and international policies. The OECD member countries are: Australia, Austria, Belgium, Canada, Chile, the Czech republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Israel, Italy, Japan, Korea, Luxembourg
, Mexico, The netherlands, New zealand, Norway, Poland, Portugal, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, the United kingdom and the United states. The European union takes part in the work of the OECD. This work is published on the responsibility
and Mario Cervantes) and national experts who authored the case studies. Dominique Guellec, Head of the Country Studies and Outlook Division, provided overall guidance and support for the project
The report draws on the analytical work carried out by ECOOM (Koenraad Debackere, Petra Andries), the Joanneum Research Graz (Christian Hartmann),
Technopolis Group (Patries Boekholt) and the comments received by experts, including Dominique Foray, Philip Mccann, Raquel Ortega, Claire Nauwelaers, Alessandro Rosiello and Michele Mastroeni and Dimitrios Pontikakis.
THE ROLE OF SMART SPECIALISATION 4 OECD 2013 TABLE OF CONTENTS PART I SYNTHESIS...10 EXECUTIVE SUMMARY...
THE ROLE OF SMART SPECIALISATION OECD 2013 11 EXECUTIVE SUMMARY Introduction: From concept to policy framework In November 2009, the European commission published the report Knowledge for Growth,
the results of an expert advisory group to the EU. Tasked with finding an alternative to public policies that were seen to spread public investments in knowledge and innovation research, education, public support to business R&d,
Another important concern is the prescription for a policy-induced division of labour between leading and lagging regions due to assumptions about the role of technology in traditional or leading edge sectors.
They also point out that smart specialisation depends on good general framework policies (e g. competition, trade policy, labour market policy and education and skills) and horizontal innovation policies (e g.
Past policies tended to spread knowledge investment (e g. high education and vocational training, public and private R&d) too thinly, not making much of an impact in any one area.
On the one hand, many OECD countries have entered a period of slow growth, high unemployment, and low demand and high public deficits.
In practice, this means the promotion of entrepreneurship across the board. While successful companies will constitute the new specialisation of the country/region INNOVATION-DRIVEN GROWTH IN REGIONS:
and especially context of constraints on public finances and public sector employment. INNOVATION-DRIVEN GROWTH IN REGIONS:
The genesis of the concept can be traced back to the work of Dominique Foray and Bart van Ark and other members of the Knowledge for Growth,
and are grounded in the classical economic theories of economic growth (e g. the theory of the division of labour by Adam smith) and notably trade specialisation.
and rigidities (e g. labour market barriers) that prevent shifts in specialisation patterns. Smart specialisation also draws on the broad economic research on industrial development e g.
There are also important synergies and complementarities between smart specialisation and cluster policy (e g. promotion of cross-sectoral collaboration and entrepreneurial processes and place-based interactions4 between actors and institutions)
and the national debt without fanning unemployment or causing long term damage to innovation capacity and the long-term growth potential.
In most OECD countries, the response to the crisis and to the slowdown in productivity growth has focused on a combination of structural reform policies-labour reform, competition policy, tax policy,
It is a fact that this has led to a shift away from low-skilled employment in OECD countries to high skill labour
While most government response to the ex-post distributional effects of globalisation-driven specialisation focus on social policies such as unemployment and increased worker (retraining,
employment and older industries by creating new avenues for economic renewal and growth. Box 1. 4. Specialisation
capital, human resources. Trade theory as elaborated by 19th century economist David Ricardo and expanded in the 20th century by Hekscher and Ohlin also tells us that countries tend to specialise in the production of goods where they have a comparative advantage.
The quality of institutions such as government institutions (e g. rule of law, competition, security), social institutions (labour-employer relations) also affect factor endowments.
Broad policies such as investment in education and infrastructure, social policies and regulations in labour and product markets can play a role in shaping specialisation patterns by affecting comparative advantages,
Imperfect competition, product market and labour market conditions can influence the degree of market integration. Industrial policies (e g. taxes and subsidies) can also play a role in shaping the production structure, for good or bad.
In Flanders (Belgium) in the case of FISCH (Sustainable Chemistry) the employers federation Essenscia Flanders developed a business plan for the FISCH initiative,
For example, in Estonia, the rapid growth of RDI requires a higher number of skilled human resources than currently available.
Industry representatives in Estonia have highlighted that the lack of educated and skilled workers as an important challenge for future growth.
ii) the participation of highly skilled workers in the process, given the increasingly cross-sectoral, cross-technology and cross-border dimension of activities,
and from the social partners, participated in the design and implementation of the Innovative Upper Austria 2010 program.
regional sectoral employment distribution, export indicators, road mapping, SWOT analyses and foresight approaches. Thus, data and indicators are necessary to track progress,
technology and employment may help policy-makers in diagnosing of strengths, weaknesses, fits and misfits in terms of scientific, technological, innovative and economic capabilities.
including number of employees, number of newly established enterprises, Gross domestic product, and export data per economic sector.
The most appropriate data appear to be OECD's regional labour market statistics. By comparing specialisation indicators over time, changes in scientific, technological or economic specialisations can be analysed.
The study represents pioneering work in the area of impact analysis in Finland. VTT updates the survey every other year by identifying innovations in economic and technical publications.
technology and employment may help policy-makers in diagnosing apparent strengths, weaknesses, fits and misfits in terms of scientific, INNOVATION-DRIVEN GROWTH IN REGIONS:
a vertical link was formed between the National Innovation Strategy, the Ministry of Employment and Economy Corporate Strategy and Sectoral Strategies, the Finnish Funding Agency for Technology and Innovation Investment Strategy (Tekes
with a possibility for other industry experts to participate as appropriate. The National Panel is composed of the chairs of the three regional panels, the Managing director and the GRDC's Executive Managers.
have seen the benefits of increasing the absorptive capacity of their staff inside the regional governments for an efficient self-discovery process.
i) improve the absorptive capacity of the socioeconomic stakeholders (including public staff and SMES) and;
such as, public procurement policies oriented towards the promotion of innovation and the development of new markets:
Online Delphis with regional and international experts and stakeholders to identify emerging issues and trends, Systemic Foresight Methodology).
Additional governance challenges include increasing the absorptive capacity of key actors and staff inside the regional governments
or a national level rests with the EU Member states. 2 See also (EC 2011) Final Report on High Level Expert Group on Key Enabling Technologies.
For example, developing labour markets or innovation in a city or in a rural area may not entail the same type of instruments
and experts to work directly on regional development priorities. The role of Universities as a critical'asset'of the region may be even higher in the less developed regions,
i) stimulating the entrepreneurial spirit of its staff and students; ii) providing advice and services to SMES;
The GRDC works closely with its two key stakeholders Australian grain growers and the Australian Government.
The sample was stratified by industry and an employment-based size indicator. The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) Farm Innovation Survey was conducted first in 2008.
with provision for other industry experts to participate as appropriate. The National Panel is composed of the chairs of the three regional panels
and Flandersbio a cluster organisation for the life sciences and biotech) have agreed to take up the work set out by imec further
the competence pole FISCH, Flanders also has a number of research institutes and universities that work in this field.
as well as a highly skilled labour force. The external connectivity of the cluster is relatively high, for a number of reasons.
the members identify promising routes for their work that are most relevant to their future.
The recent trend of decentralisation of government powers has resulted in a growing importance of the municipalities, especially in policy implementation (e g. in social security and unemployment.
Cross-border collaboration can also offer solutions to one of the major challenges in scaling up, talent and skilled labour.
With low unemployment even in the current crisis, a relatively large group of baby boomers retiring and a limited mobility/willingness to travel,
But it may also pay off for the ELAT region as a whole to pool available labour resources
Neighbouring research institutes also provide support to research and technology development, education and human resource development, business incubation and promotion.
The main stimuli of related industry growth were local strategic industry promotion programmes of the central government and establishment of related institutes in the region since the late 1990s.
The most important was to establish photonics industry research and promotion institutes and technology extension centres.
The central government's strategic industry promotion programmes were utilized also for local industrial planning exercises,
Since the inauguration of the photonics industry promotion in Gwangju, the average annual growth rate of production, number of employees and companies are 19.2%,9. 6%and 5. 0%respectively.
The number of employees has jumped also to 8 270 at 377 companies in 2010. Regional and national policies that have been decisive for prioritisation of domains Government action has been decisive for prioritisation of industrial domains.
Currently, Gwangju cooperates with the neighbouring provinces of Jeonnam and Jeonbuk as part of central government's Leading Industry Promotion program.
which considered local technological capabilities, human resources among other characteristics. The LED sector focused on domestic demand
When photonics promotion began, research institutes with core R&d capacities and expensive common equipment were crucial
At the regional, national and international levels, issues were found for cluster promotion such as intensifying networks and financing of commercial activities and product development.
, Innovation, Science and Employment. Definition of the ecosystem and its boundaries Innovation Infrastructure The aeronautic activity in Andalusia dates back from 1926 and has been historically related to Defence products.
Important Strategic developments regarding Human resources are the creation of the School of Aeronautic Engineers, school of Aircraft Maintenance Technicians and blue-collar yearly training programmes,
Entrepreneurial Associations and Trade unions together negotiated and approved the strategic document. Regional, national and international policies that have been decisive for prioritisation of domains The innovation system in Andalusia evolves on the base of Innovation Infrastructure:
Producing circa 98%of the 1. 6 million vehicles (2011 findings) produced in Turkey and providing employment opportunities for approximately 45 000 people,
i) presence of scientific and technological infrastructure to work with and to assist the automotive industry;
and human resources to reach national targets for the year 2023. Priority Setting Method for the Automotive Sector The automotive sector is one of eight sectors identified as priority areas in the recent STI Strategy document namely the National Science, Technology and Innovation
If United kingdom firms and workers can adapt to the shift in production to ultra-low carbon vehicles,
and work with industry and academia to build on the R&d activities of the automotive industry to make the United kingdom a leading place in the world to develop,
The NAIGT initiated three phases of work to achieve this. Phase 1-the NAIGT developed a mutually agreed Original Equipment Manufacturer (OEM) Product Roadmap aimed at the reduction of passenger car CO2 emissions in line with government targets
Its work was delivered through an industry led steering group of senior industrialists, academics and financial analysts experienced in the sector.
To help take forward the Council's work, two subgroups were created. The Supply Chain Group aims to build consensus on the challenges in the UK supply chain,
and associated regional initiatives to influence business and employment growth in the region. This strategy is influential at the local
and attracting leading management and research staff workers to the region through lifestyle benefits such as quality education, healthcare and recreational facilities.
SEMIP works in consultation with industry and the organisation is chaired currently by an industry representative.
Its manufacturing sector is characterised by small firms (e g. less than 200 employees) in comparison to other industrial areas.
iii) Manufacturing employment in the region represents approximately 18.9, %compared to the national average of 8. 4
live, invest and work. INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION 98 OECD 2013 Stakeholder dialogue is the primary tool used by SEMIP to build specialisation in the region.
SEMIP has helped industry increase confidence in approaching research organisations for collaboration Promotion of liveability: A skilled workforce is a fundamental aspect of driving economic growth, especially in high tech manufacturing or research.
The research infrastructure provides a further economic safety net to the region by providing ongoing employment
and creating an environment that allows workplace mobility, and hence the possibility of open innovation and idea cross fertilisation.
7 Start-up centres in Amstetten, Berndorf, Hollabrunn, Krems, Ternitz, Waidhofen/Ybbs and Wiener Neustadt and 17 business parks with about 776 companies and 18 300 employees.
%)In Lower Austria especially small companies(>9 employees) were engaged largely in innovation activities. Still below average are innovation activities in the service sector.
and the related support measures (Technopoles) confirmed their direct and multiplier (indirect and induced) effects on value added, employment, tax revenues and social security contributions as well as on beneficial impact on structural change and value creation
Furthermore, four inter-branch thematic networks in the fields of human resources, logistics, design and media and energy-efficiency are supported.
(i e. networking and cluster promotion activities, consultancy, qualification) are measures related to R&d co-operation and technology transfer.
politics and society involved in the strategy setting process, in respect of the overall system by means of communication with experts and STI implementers and via ex-post evaluations.
and innovation and economy promotion agencies, owned by majority by Upper Austria, have been organized under the common roof of the newly founded Upper Austrian Innovation Holding Gmbh.
to avoid duplicate work within the companies of the Upper Austrian Innovation Holding and to identify
and from the social partners (with the involvement of the members of the Upper Austrian Research and Technology Council) in Upper Austrian participated.
A large number of the agents participating in the program development (e g. as promoters of power, experts, agents responsible for the process, etc.
closed down their manufacturing facilities and left thousands workers unemployed. The incentive system was adjusted subsequently to target FDI involved in higher value added operations (high-tech manufacturing, R&d, strategic services etc..
and ii) a significant improvement in the quality of staff inside the Regional Authority and intermediaries such as JIC or RDA to manage
iii) human resources; and iv) internationalisation. Strategic goals and activities were proposed for each priority axis . In order to ensure proper implementation of the strategy,
Each start-up has its own consultant, who OECD 2013 115 can connect the new entrepreneurs with growing network of mentors and coaches either nationally or from abroad;
Human resources: i) SOMOPRO is a program offering 3-year incoming grants for distinguished researchers and grants for re-integration of research expats;
As science, technology and labour market for world class experts became global, only global ambitions can lead to sustainable success that makes a region attractive
Scarcity of skilled human resources is currently and likely to remain a bottleneck for sustaining the rapid growth of RDI in Estonia.
and skilled workers being a challenge for growth, and underlined that in some key areas in within the IT field there might be as little as two new Phd graduates per year.
lack of economies of scale or critical mass in many areas of research and in particular, is evident in the availability of human resources, especially in knowledge intensive sectors.
A vertical link was formed between the National Innovation Strategy, the Ministry of Employment and Economy Corporate Strategy and Sectoral Strategies, the Tekes the Finnish Funding Agency for Technology and Innovation Investment Strategy,
The study at hand represents pioneering work in the area of impact analysis in Finland. It is even internationally unique
If the promotion of joint projects is to be improved, the provision of attuned/coordinated innovation promotion instruments is an essential requirement for the realisation of innovations
and hence exerts a direct influence on the innovation dynamics of the capital region Within the implementation of innobb on the cross-border level,
Each cluster has to define indicators that will allow evaluating its work and progress. The interconnection between the different clusters will be evaluated through the implementation of common pilot projects as well as through the consideration of crosscutting themes.
industry settlement, job creation, investment, patents, and new products, visibility on the national and international level.
benefit from an improved division of labour or supply situation within a cluster, and are hence able to focus on their respective core competences.
Especially in the field of media and creative industries this strategy seems to work. Regional instruments for early stage funding for the commercialisation of research results are also necessary
The process of updating the regional development strategy took over 2 years of thorough cooperative works involving many actors,
including experts and citizens. At the moment all regional policy strategic documents are being updated to be in line with the superior the Development Strategy of the Malopolska Region 2011-2020.
investment projects in the form of tangible assets provided for the purpose of conducting R&d works in enterprises;
business and government experts to prepare RIS 2013-2020 (the group has been supported by national government experts).
the Malopolska Innovation Council (advisory body for innovation policy) the Malopolska Economic Council (representation of high-level regional experts from business), Joint Commission of INNOVATION-DRIVEN
and iv) Labour market and Education Observatory of Malopolska which focuses on gathering information and improving knowledge of the regional labour market and education.
On the other hand-it is peculiar to the Basque political structure-the important role assigned to the Provincial Councils of Alava, Bizkaia and Gipuzkoa in fiscal policy with important roles in economic promotion and development.
and the SPRI (Society for Industrial Promotion and Restructuring); ii) public funding of the technology centres;
and iv) The vocational training centres for the purpose interaction between business and technology development. Measuring the effects
i) GVA per worker; ii) Employment rate; and iii) Happiness and Health. The PCTI has selected 25 Performance Indicators based on its own strategic objectives of the PCTI.
The 25 indicators are grouped into the following nine strategic targets: i) shifting the business structure towards high value-added sectors, based on science, technology and innovation;
share of researchers per Working population and iii) Innovation, Innovation expenditure as a share of GDP.
On the contrary, for the Lahti region the lack of skilled workers and research infrastructures is a main bottleneck for its smart specialisation strategy.
and regions use different methodologies such as science and technology indicators analyses, regional sectoral employment distribution, export indicators,
but other economic indicators such as employment, Gross domestic product (GDP), number of newly established firms, and degree of innovation can be used as well.
employment, labour costs and investment. Benchmark data can be obtained by summing up sectoral data over all countries in these OECD database (or over a smaller group of benchmark countries if desired.
The most appropriate data appear to be OECD's regional labour market statistics (e g. number of establishments or number of employees per TL2 region),
An example Figure 3 below shows the RCANS for an anonymous region in 32 industries according to OECD's regional labour market statistics.
We see that the relative employment in Air Transport and in the Manufacture of Basic Metals plummeted,
OECD regional labour market statistics Combining baseline indicators for specialisations in science, innovation, and economic development By comparing specialisation indicators over time, changes in scientific, technological or economic specialisations can be analysed.
The identified topics can then validated by experts and further analysed using bibliometric methods such as indicators of publication activity
THE ROLE OF SMART SPECIALISATION OECD 2013 169 SMART GOVERNANCE FOR SMART SPECIALISATION STRATEGIES Claire Nauwelaers, independent consultant, Belgium Smart policies need smart governance.
Labour unions are the least important actors in the Smart Specialisation process both at regional and national levels.
Independent expert assessments are frequent too, and regions indulge more than countries in international benchmarking practices.
and individual offices organize panel brainstorming on future insights with external experts. The results are used as the basis for the strategic choices;
public and private R&d, good business location, networks, financing, acquisition, export and trade promotion, support to start ups etc.
covering the impacts of Clusters and Technopoles on value added, job creation, transformation of economic structure etc.;
such as public procurement policies oriented towards the promotion of innovation and the development of new markets, an especially relevant instrument in policies with a transformative goal.
Here the mingling between insights from enlightened entrepreneurs able to spot weak signals, external experts,
or do need regional employers to look abroad for qualified personnel? How do you assess the climate for entrepreneurship in your region?
How favourable are working conditions for researchers in your region? How much mobility between the public science and the private sector does exist in your region
Does current academic education fit to the needs of the regional economy do regional employers absorb graduates
What is the share of international staff in scientific/creative positions? How many co-operations with other international lead institutions does your region have?
and participative or rather driven by experts)? Do you have an evaluation system for your regional growth
and resources or would you have to involve external experts? Who is addressing innovation policy in your region (i e. the EU, your national government, the regional government?
but also with regard to other relevant policies such as for instance education, employment and rural development policies)? Does it assess/take into account the existing level of policy co-ordination within the region?
new managerial and marketing approaches, renewing the informational system and human resources training1. Key words: innovation, Romanian SMES, performance, entrepreneurship I. RESEARCH ISSUES
%and human resources training (13.46%).%We also highlight the relative low percentage of companies where the absence of innovative approaches was noticed (21.18),
and marketing approaches new informational system human resources training Figure 1. Innovation activities within SMES Analyzing innovation activities in Romanian SMES by size classes (table 1),
new informational systems and human resources training increase together with the enterprises'size. 2009 International Association of Computer science and Information technology-Spring Conference 978-0-7695-3653-8
and marketing approaches 14.25%18.18%21.85%4 New informational systems 11.50%17.58%18.49%5 Human resources training 11.38%16.97%18.49%6 No innovation activities 27.13
and the human resources training are observed in a higher proportion in constructions (22.58%and 32.26), %the interest for new informational systems is more well-marked in services (17.29)
%New informational systems 12.89%12.90%14.38%2. 63%11.23%17.29%Human resources training 12.00%32.26%10.63%23.68%9. 89%16.12%No innovation activities
%new/improved informational systems (13.77%)and human resources training (13.46) %and in 21.18%of the companies innovative activities didn't exist.
, NO 11 empowerment, job creation, and employment within disadvantaged communities (Daves 2001). SMES have a valid claim to heightened relevance,
and strategies have been developed world wide to expand and integrate this sector into the mainstream of economic activities (Luiz, 2002).
and employ 54 per cent of all formal private sector employees (informal employment). According to Terziovski (2010) Small and Medium enterprises (SMES) in the manufacturing sector make a significant contribution to economic growth,
and they use fundamental bases such as number of employees, financial position or annual turnover. However in Zimbabwe, according to Small and Medium Enterprises Institute, SMES are defined as a registered enterprise with employment levels ranging from 30 to 70 depending on the types of industry.
It went on to state that enterprises that are formalized not through a legal structure such as registration in terms of the Companies Act
In a study by Machipisa (1998) he defined an SME as a registered company with a maximum of 100 employees and an annual turnover in sales of a maximum of 830
having a staff component of more than five and less than 30, making a profit and expanding in terms of infrastructure and growth (Nieman et al,
According to Gaither and Frazier (1999), SMES constantly experience shortages in capital to employee skills to improve production capacity,
He went on to say managers should take advantage of different methods for staff encouragement to innovate. 2. 7. 3 Size and Age of the Organisation Size
1988) for instance, suggested that the smallest firms (20 employees) had the benefit of individualism, the larger firms (50 employees) had the benefit of more resources and systems,
while the intermediate group (20-49 employees) lacked the best of either world. Ettlie and Rubenstein (1987) in support stated that for radical innovations they required additional funds for technical work, capital investment for plant and equipment, marketing and promotions.
They went on to clarify that larger size have a key enabling condition because of access to key resources and addressing these key issues.
In support of the above Tödtling& Kaufmann (2001), postulated that SMES had fewer resources, such as R&d expenditure,
works in one organisation does not necessarily apply to another and managerial practices vary from one socioeconomic culture to another.
Organisational Factors Several studies have discussed the influences of a variety of organizational characteristic variables such as quality of human resources, top management s leadership skills, organizational support, organizational
In support, Tornatzky and Fleischer (1990) postulated that qualified human resources were helpful to adopt innovations because of their competent learning and innovative capabilities.
They said the quality of human resources was an essential factor influencing technical innovation. Organizational ties helped SMES to establish their network.
Pavitt (1991) raised issues such as flexibility, short communication lines, close relations with customers, motivation of management and labour force, less bureaucracy, little filtering of proposals with strong interest
The initial educational background and prior working experience of the founder (s)/ manager (s) The professional qualifications of the workforce.
At individual level, the capacity included employee empowerment and engagement, trust, training, job rotation, and the extent and range of individual networks.
This was in line with the findings done by Pavitt (1991) he raised issues such as flexibility, short communication lines, close relations with customers, motivation of management and labour force
and culture 3%53%24%0 20%f) incentives for innovative workers 33%40%12%10%0 Results were aggregated in the agreeing
At individual level, the capacity included employee empowerment and engagement, trust, training, job rotation, and the extent and range of individual networks.
Hence innovation in SMES required more than just having the professional qualifications of the workforce. The results also suggest that on the job training is required equally for innovation to succeed in SMES.
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