and her experience in a French Innovation Agency has allowed her to gain experience to help SMES, academic researchers and other stakeholders to build multidisciplinary research projects and innovation services.
'which will stimulate a process of continuous policy learning among all interested regional policy stakeholders around Europe.
and stakeholders Visit to the EURIS project Two Thematic Workshops organized together with the Innovations Systems theme.
Innovation can occur in any sector of the economy, including government services such as health or education.
IPR Economies rely increasingly on knowledge-based competitiveness, and innovation is increasingly non-technological in nature.
Professor CIRCLE (Centre for Innovation, Research and Competence in the Learning Economy), Lund University, Sweden,
However, the global economic crisis had a rapid and significant negative impact on innovation worldwide. OECD figures reveal7 that total OECD-area business expenditure on research and development (R&d) declined by a record 4. 5%in 2009;
Besides the administrative burden which continues to be mentioned by the stakeholders interviewed during the evaluation process,
%of which was allocated to Innovation and the knowledge economy. The programme supports two types of projects:
This programme provides assistance to stakeholders that are implementing programmes under the European Territorial Cooperation Objective.
Innovation is the main driver for economic growth in the EU, but innovation performances still need to be improved.
while focusing scarce human and financial resources in a few globally competitive areas in order to boost economic growth and prosperity.
boosting their economy and productivity therefore benefiting SMES. Furthermore the RIS3 are built upon the industrial and economic fabric of each region,
ensuring that there will be economic growth. The entrepreneurial knowledge is used to define each RIS3 and it is known as‘the entrepreneurial process of discovery18.
top-level academic knowledge and synergies among innovation stakeholders. They contribute to the building of a knowledge-based economy
and to achieving the Europe 2020 objectives of new growth and job creation. Procurement of Innovation Platform The Procurement of Innovation Platform19 is an online hub developed by ICLEI (an association of over 1200 local governments) to help public authorities with Public Procurement of Innovation (PPI) and Public
Increased economic growth Better products and services Initiatives towards solving societal challenges In 2009, public procurements accounted for about 19%of the European union's GDP,
and Promotion of RTD Enforcing SMES role in the transition from traditional industry regions to knowledgebased economy regions Innohubs http://www. innohubs. eu Innovation Hubs Promotion of innovation
development in Europe Promotion of innovation for SMES DISTRICT+http://districtplus. it/Disseminating Innovative Strategies for Capitalisation of Targeted Good Practices Support to the transition between traditional economy and competitive economy PERIA
Improving relations between different stakeholders to support open innovation Innovation Systems SMART+Innomot Innohubs Mini-Europe DISTRICT+PERIA ERIK ACTION DISTRIC Mini
and the Knowledge Economy Exchange, sharing and transfer of Egovernment and Wireless Broadband good practices E-government Young SMES http://www. youngsmes. e u/about/Sharing Interregional knowledge to define Supporting Programmes for Young SMES Development strategies
and the Knowledge Economy) project's objectives were to improve regional and local Innovation & Knowledge-Economy policies through the exchange, sharing
and transfer of E-government and Wireless Broadband good practices. It identified GPS specifically addressing the inclusion of online services and management In public Administrations,
The problem is particularly urgent in a period of economic crisis and shortage of bank loans to industry,
and is a top priority for all regional and national stakeholders involved in innovation support.
o Lack of access to finance is viewed by enterprises as the main factor hampering innovation activities. o Lack of access to finance is considered by institutional stakeholders as the principal barrier preventing businesses from bringing innovations
thus strengthening the competitiveness of the main industrial systems in the Tuscan economy. A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills
together with Tuscan SMES, Fabrica Ethica has constructed a production process that makes the regional economy more competitive and able to differentiate its production on the basis of material and immaterial quality.
and businesses, converting scientific knowledge into economic activity, and leading to the creation of a network for business start-ups and knowledge transfer.
The main stakeholders involved in the Campus Programme are: IDEA as the manager of the initiative, the Capital Investment and Risk management company of Andalusia INVERCARIA,
this GP focused on improving innovation capacity in the wood sector, a sector of great importance for the regional economy.
and assistance for the implementation of external GPS Bilateral meeting or partnering fora/platforms The stakeholders involved,
Indeed, projects mention that the stakeholders wishing to implement an external GP need to have the political and financial independence necessary to do so:
With such a tool, regional stakeholders, including those not involved in INTERREG projects would be able to choose GPS of interest to them
the PERIA project focused on GPS from stakeholders of the local innovation systems, Regional Innovation Agencies and Managing Authorities,
aimed at promoting innovation as well as the knowledge economy in the field of health. It is interesting to note that the INNOHUBS project from the INTERREG IVC programme involved edge cities.
This programme provides assistance to stakeholders that are implementing programmes under the European Territorial Cooperation Objective.
and a hub for sharing information and GPS among stakeholders involved in ETC programmes. It is a bridge between these various programmes.
Finally, new stakeholders like associations or Non-governmental organizations are invited to participate in the consortium to make the results more sustainable and inclusive.
will involve SMES but also other kinds of stakeholder (research, education companies, citizens, NGO, etc.)The overarching objective of the Commission is to have 20%of the financing allotted to SMES (in FP7,
and to support their stakeholders to take part in other European Programmes (including H2020). Second, regional authorities are supposed to orient their structural funds towards activities and innovations related to their RIS3.
'and the‘innovation capacity of SMES'are crucial for fostering economic growth within local companies allowing for a better'entrepreneurial process of discovery
and stakeholders active in assisting SMES to overcome barriers to innovation. 4. 1 General Recommendations for Local
Project acronym Project name Detailed topic DISTRICT+Disseminating Innovative STRATEGIES for Capitalisation of Targeted Good Practices Support to the passing between traditional economy
and competitive economy Erik Action Upgrading the innovation capacity of existing firms Improvement of the capacities to increase innovation within SMES INNOHUBS Innovation Hubs Promotion of innovation in edge cities Innomot
based economy Project acronym Number of partners68 Country of the LP69 ERDF funding (€) Total budget (€) Startin g date Ending date Type
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
, Wroclaw 4 Romania Brasov County Council, Brasov 5 Germany Ministry of Science and Economy Saxony-Anhalt, Magdeburg 6 United kingdom Birmingham Technology Limited
This programme from the School in Business Economics and Law at the University of Gothenburg allows master students in Business Economics to do an internship within a growing SME.
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
thus strengthening the competitiveness of the main industrial systems in the Tuscan economy. A Virtual Enterprise (VE) is a temporary alliance of enterprises that come together to share skills
Together with Tuscan SMES, Fabrica Ethica has constructed a production process that makes the regional economy more competitive and able to differentiate its production on the basis of material and immaterial quality.
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
(Advice on Public Grants) Innovation Race (training) KREO (training) 72 1. Desire to Innovate high level commitment to work strategically with innovation a. Innovation champions engage key stakeholders
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
training activities for innovation support stakeholders, coordination of the innovation support stakeholder's actions). As a matter of fact, the partnership's structure was very relevant to Innovation Systems as PERIA paired Regional Authorities and RIAS.
PERIA had a unique focus on the role and impact of RIAS and their policies, on the innovation capacity of local SMES.
Innovation and the knowledge economy Theme: Innovation, research and technology development TYPE OF INTERVENTION Type of intervention:
The SMES were considered always the main stakeholders of the whole process. Good Practice analysis: As SMART+was a mini-programme that managed sub-projects,
Smart Specialisation the Concept, Knowledge Economists Policy Brief n°9. Knowledge f or Growth Expert Group advising the then Commissioner for Research, Janez Potocnik. 2009.
such as corporate governance, the information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences,
SEARCHING FOR A SMART SPECIALISATION, UNDER THE CONDITIONS OF A TRANSITIONAL ECONOMY...113 Regional, national and international policies that have been decisive for prioritisation of domains...
A KNOWLEDGE BASED ECONOMY...118 Regional, national and international policies that have been decisive for prioritisation of domains...
Stakeholders'involvement at different levels...132 Figure 3. 1. Activity Indices in 12 major fields...
34 Box 1. 8. Empowerment of stakeholders in the designing of the smart specialisation strategies...
A number of countries, within OECD or not, are now taking interest in Smart Specialisation as one way to lead their economies out of the crisis by leveraging regional dynamism in innovation led/knowledge-intensive economic development.
i) the underlying role of scientific, technological and economic specialisation in the development of comparative advantage and more broadly in driving economic growth;
private stakeholders and entrepreneurs in the process of translating specialisation strategies into economic and social outcomes. In this sense, smart specialisation is a regional policy framework for innovation driven growth.
Incentives and instruments for disclosing passively or actively this information (e g. through stakeholder consultations public-private partnerships, IPRS) will be key.
the implicit idea of policy-induced specialisation in innovation have raised concerns amongst economists and others inside and outside the EU policy circles (Pontikakis, D. et al. 2009).
Smart specialisation relies on an entrepreneurial process of discovery that can reveal domains of economic activity where a country
The specific properties of General Purpose Technologies (GPTS) underlie the logic of smart specialisation 2. Invention of a GPT extends the frontier of invention possibilities for the whole economy,
Structural change, not just the accumulation of capital, is a driver of economic growth. As such smart specialisation aims to accelerate structural change by encouraging the transformation of economic activities from a structural perspective.
It may in some cases mean modernising existing industries or enabling lagging sectors to improve their competitiveness through the adoption of ICTS,
and economic crisis, including the current euro debt crisis, the concept of smart specialisation has found an echo in the OECD discussions on New Industrial Policy, New Sources of Growth and New Approaches to Economic Challenges.
Indeed, the OECD has exhorted countries to go structural to make economies more competitive; to go social to address the increased inequality and lack of jobs;
Smart specialisation is one several frameworks that accommodates many of these goals by focusing on promoting structural change in the economy through investments in knowledge-based assets and better governance in STI policy making.
and has forced also OECD governments to look more closely at where economic value is created along global value chains,
Place-based growth is seen as particularly important for innovation given the weight of agglomeration economies (OECD 2011.
In addition to quantitative indicators, qualitative data such as SWOT analyses, surveys, workshops and interviews with regional stakeholders are also important in the priority setting and discovery process.
concept and policy agenda for science, technology and innovation against the background of important changes in the structure of OECD economies.
and innovation framework for regional economies that aims to illustrate how public policies, framework conditions,
but especially R&d and innovation investment policies can influence economic, scientific and technological specialisation of a region and consequently its productivity, competitiveness and economic growth path.
and thus a possible way to help advanced OECD economies as well as emerging economies-restart economic growth by leveraging innovation led/knowledge-based investments in regions.
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.
Modern recent strands of economic thought from evolutionary economics to the economics of agglomeration are also visible in the smart specialisation concept, notably the issue of increasing returns to knowledge,
and neoclassical spatial economics (Krugman and Venables). Smart specialisation thus is very much an economic framework focussed on regions that aims to illustrate for the purpose of policy making how public policies, framework conditions,
but especially R&d and innovation investment policies can influence economic, scientific and technological specialisation within a regional policy framework and through this mechanism, productivity, competitiveness and economic growth.
But entrepreneurship in the knowledge economy recognises that value added is generated also outside sole ownership, in spillovers, in networks of complementarity and comparative advantage.
foster stakeholder engagement and encourage governance innovation and experimentation; are based evidence and include sound monitoring and evaluation systems.
that is the diffused agency problem since it focuses on entrepreneurs and co-ordination of policy over a broad range of stakeholders (regions,
where different private and business stakeholders assume direct responsibility on specific sub-projects and a platform provides full information of the development of the different initiatives.
or accelerate the transformation and modernisation of economic activities in clusters. 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)
Summary The idea or concept of smart specialisation is based on long standing economic theories and empirical evidence and mobilises well tested policy instruments.
in order to stimulate competitiveness, productivity and economic growth through entrepreneurial activities. Smart specialisation strategies can be viewed as a mix of modern industrial policy with innovation policies that emphasise a bottom-up approach (the entrepreneurial discovery),
but also various stakeholders, including business. At the same time they reflect the urgency of making tough choices in times of difficult transitions under severe budgetary constraints.
so that it contributes to productivity growth will be increasingly important not only in the medium term but also in the longer term in light of challenges such as demographic change and competition from emerging economies.
The economics of R&d location (indivisibility, strong spatial clustering of innovation activities) makes regional responses to R&d globalisation naturally appropriate.
Governments should ensure mechanisms through which they exchange information with The current economic crisis and more recently the euro debt crisis, has increased pressure on OECD governments to tackle longstanding structural problems in their economies.
Smart specialisation, both as an economic concept and a policy framework provides a novel avenue to pursue the dual objectives of fiscal constraint and investment in longer-term growth potential in a context of rapid
2) The discovery of pertinent specialisation domains may have a high social value (development of the region's economy),
Prevention of emerging trends for regional economic growth. Coordination of investments and decisions of different entrepreneurs.
Support to technologies which have scale or agglomeration economies. Cluster policies Technology banks Public-private partnerships Innovation-oriented procurement Sectoral platforms SME support organisations Demonstration projects, technology extension services Source:
carbon economy was the environmental challenge of reducing CO2 emissions amidst an economic downturn. The main objective of the smart specialisation strategy is to secure the environmental benefits while regenerating competitive advantage, mainly by:
it may offer a pro-active framework for governments to anticipate the possible redistributional effects of policy or inactions in an increasingly globalised economy.
and comparative advantage Classical economic theory tells us that regions and countries will specialise in certain economic activities according to their factor endowments (land,
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.
Recent economic theories touching on specialisation and trade (e g new trade theory) tell us that other factors play a role in specialisation,
often connected with economies of scale and locational externalities. Indeed, the factors that lead to comparative advantage are dynamic
It has been suggested that an expansion of an economy'scientific and technological capacity will not endow it the needed productive dynamism
It is important to recall that in a global economy, changes in the factor endowments and in the specialisation patterns for trading partners will also have an impact on own-country specialisation.
Moreover, changes in policy settings in countries with more rapidly changing institutions (e g. emerging economies) may have disproportionally larger effects on relative factor demands
Regions are recognised increasingly as a relevant level of innovation policies given the weight of agglomeration economies (e g. the benefits that firms obtain
but strong commitment of all stakeholders. Multiply participation since none of the participants have authority to commit others.
The existing industrial commons (transition) The application of a GPT in an existing sector (modernisation) New synergies between existing economic activities with new or emerging activities (e g. new line of productive activity)( diversification
Ensure the commitment and involvement of all stakeholders regional, national or supranational in the designing of the strategy and consecution of its objectives.
THE ROLE OF SMART SPECIALISATION 30 OECD 2013 Summary The current economic crisis and more recently the euro debt crisis, has increased pressure on OECD governments to tackle longstanding structural problems in their economies.
and well positioned to mobilise other stakeholders and resources and to set the strategic framework for further actions.
and prove they can mobilise the relevant stakeholders that have the potential to provide value added.
These structures are necessary to ensure the‘open invitation'flows between all stakeholders and empowering as well as accelerating the learning process.
and other stakeholders contribute to identify existing capabilities (e g. research capabilities) but also barriers (e g. regulatory constrains
involved the stakeholders from the wide business community and built the‘light structure'that was needed to raise funding from the Flemish government.
the national government gets engaged in intensive consultation with regional stakeholders, in order to detect emerging opportunities
OECD-TIP case-studies on smart specialisation The universities dealing with economics, public policy and administration,
regional governments and key stakeholders should be ready to adjust their responses rapidly to the changing conditions (e g. strengthening the collaboration between Universities
Intensive stakeholders'consultation: In Australia, future bottlenecks/threats of the Australian grains industry are detected by direct consultations among grain growers,
the Australian Government, research partners and other stakeholders. Based on this, the Grains Research and development Corporation (GRDC) identifies the most likely drivers of change in the GRDC's immediate and broader business environments over the next five years.
and regional economies are interconnected increasingly. Governments may want to take the interregional and international dimension of the emerging activities into account in their strategies (e g. to increase regional competitiveness,
Recognising that the Australian grains ecosystem is connected to global economies lead the Grains Research and development Corporation to design its priorities to be compatible with other regional
OECD TIP case-studies and enquiry in governance for smart specialisation The mobilisation and empowerment of key stakeholders and institutions to realise their potential as leading contributors are essential elements to transform a traditional regional innovation
v) the need to increase transparency on how stakeholders are selected, involved and, especially, what role (empowerment) they are provided during the process (See Box 1. 8). INNOVATION-DRIVEN GROWTH IN REGIONS:
THE ROLE OF SMART SPECIALISATION OECD 2013 35 Box 1. 8. Empowerment of stakeholders in the designing of the smart specialisation strategies In the context of the Brainport Eindhoven Region in The netherlands
on the contrary, relevant stakeholders of the automotive sector (Companies of the cluster of the automotive sector are acknowledged to enjoy a strong critical mass) are invited only with advisory capacity to the STI policy-making meetings with the Supreme Council for Science
‘as necessary',to allow stakeholders to identify specific problems and generate policy recommendations that feed back into the policy-making process.
After the meetings, the SCST‘assigns'tasks to stakeholders for the implementation of the adopted decrees.
Thematically focused working groups were established, counting more than 250 stakeholders. Agents from the business side, academics, and special interest groups
and the project results Profiling the region Together with strong leadership and stakeholder's involvement,
and the Revealed Comparative Advantage (RCA) for economic activities, are used to avoid biases and to compare countries
to feed in discussions among stakeholders and cannot be used directly for taking decisions, notably because they can hardly identify emerging activities.
STIE=Science, Technology, Innovation, Economy Source: ECOOM-Centre for Research & development Monitoring at Leuven University Additional limitations to data analyses arise
Here, foresight exercises have been highlighted as a powerful tool to develop a shared vision of the future among all stakeholders.
iv) Interaction with the systematic involvement of stakeholders in an inclusive process with long-term perspective for the analysis of different perspectives and their social relations in the system;
This database makes it possible to make versatile studies of the renewal of the Finnish economy and innovation environment.
and empower the relevant stakeholders that have the potential to provide value added. Data and indicators to measure specialisation in science
and set the necessary mechanisms to reduce imperfect information among all stakeholders. 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
The Tekes 2008 strategic focus area paper People-Economy-Environment Choices for building the future represented the main linkage between regional and national strategies.
The paper outlines global drivers of change and current challenges of the Finnish economy and industries.
THE ROLE OF SMART SPECIALISATION 42 OECD 2013 the aim to increase the competitiveness of the Finnish economy by:
ii) renewing the economy and creating new businesses; iii) increasing productivity in industries and the service sector;
the growing interconnectedness of economies reenforce the need for increased regional and international collaboration and for a coherent alignment of policy frameworks to adjust policies to business reality (e g. simplification of policies and removal of regulatory barriers).
in order to engage and improve the communication with stakeholders for further strategic co-ordination and fine tune priorities setting.
and achieving their primary goal of transforming economies into more competitive, job-rich and sustainable ones.
i) improve the absorptive capacity of the socioeconomic stakeholders (including public staff and SMES) and;
emerging‘activities'may lack evidence-based potential economic value, opportunities for new start-ups or technology exploitation for existing companies.
New tools are required to help policy makers to assess the potential of emerging activities for future economic growth,
strategic analyses are declared as one of the most important influence on the selection of priorities, both for regions and countries (Figure 1. 2). The influence of stakeholders,
Relying on expert support to improve the stakeholder's involvement during the priority-setting and policy-making process.
Online Delphis with regional and international experts and stakeholders to identify emerging issues and trends, Systemic Foresight Methodology).
Fostering a structural transition from policymaking to cycles of policy development and policy learning once smart specialisation becomes more and more adopted as an economic policy concept.
4 Place-based policies can be defined as those policies that take into account the spatial dimension of economic activities.
of Economics, Volume 106, Issue 1, 103-121 OECD 2013 53 Greenhalgh, C. and M. Rogers (2010),‘Innovation, Intellectual Property and Economic growth'Princeton university
Hausmann R. and D. Rodrik (2003),‘Economic Development as a Self-discovery'Journal of Development Economics, Volumen 72,2.
Building Resilient Regions for Stronger Economies'.'Paris, OECD Publishing OECD (2011),‘Regions and Innovation Policy, OECD Reviews of Regional Innovation'.
'International Review of Applied Economics, 26:2, 223-239. OECD 2013 55 PART II CASE STUDIES ON SMART SPECIALISATION The case studies provide an in depth analysis of real-life experience in policies and governance mechanisms for building smart specialisation strategies.
The structure of the RDC model and the extensive collaboration between industry and researcher stakeholders involved
The GRDC works closely with its two key stakeholders Australian grain growers and the Australian Government.
The Australian Bureau of Agriculture and Resource Economics and Sciences (ABARES) Farm Innovation Survey was conducted first in 2008.
The GRDC has established dedicated regional forums to elicit stakeholder input. All grain growers in Australia are required to contribute to GRDC operations via a 1%levy on the sale of grain.
ii) consults extensively with stakeholders, particularly growers; iii) maintains strong networks with researchers and these networks alert it to opportunities for world-leading research;
vi) conducts periodic situational analyses of its stakeholder industries; and v) commissions other agencies to study aspects of the grains industry when required.
and global economies the GRDC designs its priorities to be compatible with other regional, national and international drivers such as:
Based on consultations with grain growers, the Australian Government, research partners and other stakeholders, the GRDC has identified the most likely drivers of change in the GRDC's immediate and broader business environments over the next five years.
) Agricultural Commodities. Available at: www. abs. gov. au/ausstats/abs@.nsf/mf/7121.0 21 GRDC (2011) National Grains RD&E Strategy.
Available at www. ruralrdc. com. au/WMS/Upload/Resources/Innovation%20review%20submission%20final%20300408. pdf. 23 Australian Bureau of Statistics (2012) Agricultural Commodities.
www. abs. gov. au/ausstats/abs@.nsf/mf/7121.0 24 Australian Bureau of Agricultural and Resource Economics and Sciences (2012) Agricultural Commodities.
ii) to create economic value for the Flemish economy; and iii) to help Flanders to obtain a strong position in European networks in this domain.
While the initial strategy development (the entrepreneurial discovery process) started from one research centre, during the course of the OECD-TIP exercises, a wider set of stakeholders universities, academic hospitals, companies from the health
In the Flemish administration, the Department of Economy, Science and Innovation (EWI) has this responsibility.
the question whether Nfh has a potential economic value for the Flemish OECD 2013 63 economy is difficult to predict.
as well as all actors, is to estimate the likelihood of future economic growth of such an experimental domain.
grasping the opportunities for smart specialisation The mapping exercise created enthusiasm shared by a wide set of stakeholders from research and industry.
and positioned to mobilise other stakeholders and to set a strategic framework for further actions.
supporting entrepreneurial bottom-up initiatives needs to rely on a level of self-organisation of a number of actors who have the position and commitment to mobilise other stakeholders.
discovery and governance (see Figure 2. 1). Figure 2. 1. SWOT of FISCH Strengths Anchors Broad involvement of many stakeholders High private expenditures on R&d
Economy policy and Science, Technology and Innovation (STI) policy. The topic of FISCH, sustainable chemistry, does fit Flanders'prioritisation policies very well.
it is mentioned as a lead example in the Whitepaper on New Industrial Policy (economy policy)
and thus is a tangible intersection between the innovation policy and the economy policy. Figure 2. 2 shows the priorities of all relevant policy initiatives
i) questionnaires and interviews of the most important stakeholders on the OECD 2013 69 importance of these technologies for Flanders and for themselves, ii) technological workshops on selected topics;
and v) Consultation-evaluation workshops with different stakeholder groups (large companies, small companies, societal stakeholders.
while Flanders'economy shows a clear specialisation in chemistry, the technological and scientific specialisation level is much lower:
Broad consultation and stakeholder involvement: have been crucial elements in the development of the strategy process.
The role of input from a wide set of stakeholders have enriched the strategies, and dedication of the FISCH members is simply necessary to fund the platform and projects.
the mismatch between the strengths in the economic system and strengths in the research system is a policy challenge.
With a strong technology and design base, Brainport is one of three key pillars of the Dutch economy, together with Seaport (Port of Rotterdam) and Airport (Schiphol Amsterdam.
Decentralisation has increased also the powers of the provinces, most importantly in regional-economic policy, nature management and spatial planning.
Its management approach is to bring stakeholders together, acting as a catalyst and stimulator, in a project-based manner,
borne and backed by the stakeholders involved rather than by Brainport. Under the header of Brainport independent cooperatives have been established
Brainport 2020, Top Economy and Smart Society is an ambitious regional vision, strategy and implementation programme for the oncoming years.
Brainport 2020 was produced by a triple-helix programme committee, in close bottom-up consultation with regional stakeholders.
These various stakeholders establish the key assets in the ecosystem that drive entrepreneurial discovery inside and outside of the cluster.
The crisis drove local stakeholders to reach a consensus to establish a new local economic development plan and strategies.
agencies and technology centres promoting the photonics industry in Gwangju were established through the Ministry of Knowledge Economy programmes
Multilevel coordination and mobilisation of stakeholders: Photonics was the first industry promoted by the central
It is also necessary to create a multilevel governing mechanism to coordinate stakeholders and a consensus development process.
THE ANDALUSIAN AEROSPACE CLUSTER Simon Vazquez, Innovation and Development Agency of Andalusia (IDEA Agency) and M Angeles Ruiz, General Secretary of Universities, Andalusian Ministry of Economy
grasping the opportunities for smart specialisation The Strategic Plan's main goal is to turn the Andalusian Aerospace into a competitive sector of Knowledge & Innovation based economy and in one of the engines of development.
THE AUTOMOTIVE CLUSTER Definition of the ecosystem and its boundaries The automotive sector has been the pioneering sector of the Turkish economy in terms of exports and R&di capabilities.
32 while other relevant stakeholders are invited to the meetings with advisory status. SCST is an asset for STI governance based on its role in establishing expectations that steer the Turkish system forward
SCST further assigns tasks to stakeholders for the implementation of the adopted decrees. As necessary
ad hoc committees have allowed stakeholders to identify specific problems and generate policy recommendations that feed back into the policy-making process at the SCST level.
and technology platforms involving SCST permanent members and/or stakeholders. The 24th meeting of SCST, for example, was realized on 7 august 2012;
Prepared under the coordination of the Ministry of Economy Turkey's Export Strategy for 2023 aims at reaching a flexible and R&d based export structure;
of Economy, Undersecretary of Treasury, Chairman of the Turkish Atomic energy Authority, President of TÜBITAK and a Vice president, General Director of the Turkish Radio and Television
and contributes some GBP 10 billion value-added to the United kingdom economy. The United kingdom produces over one million cars annually,
Broad stakeholder consultation: Through wide consultation it was possible for all relevant stakeholders to contribute
and commit to a consensus view around future innovation needs within the industry and the research needed to get there.
This consensus allowed government to direct public funds for R&d to areas where it would have the most beneficial impact on industry and the economy.
CSIRO is currently working with stakeholders around the design of this precinct. OECD 2013 97 Monash University has initiated also a cluster type initiative on its Clayton campus, the Monash Science Technology Research and Innovation Precinct (STRIP.
THE ROLE OF SMART SPECIALISATION 98 OECD 2013 Stakeholder dialogue is the primary tool used by SEMIP to build specialisation in the region.
The establishment of networks (both informal and formal) are essential in driving stakeholder participation in the development and sustainability of a region.
A skilled workforce is a fundamental aspect of driving economic growth, especially in high tech manufacturing or research.
Stakeholder and policy dialogues to achieve the ambitions In Lower Austria already in 1997, at the beginning of the Regional Innovation Strategy Lower Austria,
In Lower Austria knowledge creation achieved by stakeholder and policy dialogues is implemented bottom up as well as top down.
and carried out interviews with stakeholders. It also completed a survey of the activities of other similar regions.
Further they support the structural transformation of the Lower Austrian economy and promote the creation of a knowledge-intensive economy (European commission 2011).
Lower Austria is one of the regions not specializing on explicit lead sectors, but on functional priorities (mainly Technopols and Clusters).
and Innovation Policy in Upper Austria is linked with the Ministries of the Upper Austrian Government as well as with the responsible regional government's departments and directorates for regional planning, the economy and rural development (department economic
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.
and prioritisation in the region The regional economy of Upper Austria is characterized by its very strong industrial core.
The main focus areas in the strategic economic and research programs are determined via stakeholder consultations, studies and analysis of regional requirements.
Opportunities for cross-border and international ecosystem development Upper Austria is a province in the heart of Europe with open-minded inhabitants and a very export oriented economy.
Stakeholder and policy dialogues to achieve the ambitions In Upper Austria knowledge creation achieved by stakeholder
,(2009) Smart Specialisation The Concept Knowledge Economists Policy Brief No 9 june 2009 Foray, D.,P. David and B. Hall,(2012) Measuring Smart Specialisation:
Vienna University of Economics and Business, Institute for Regional Development and Environment INNOVATION-DRIVEN GROWTH IN REGIONS:
SEARCHING FOR A SMART SPECIALISATION, UNDER THE CONDITIONS OF A TRANSITION ECONOMY Pavel Csank, Petr Chládek and David Uhlír, South Moravian Innovation Centre, Brno and Jirí Bla ek
as well as other transitional economies in Central europe, is a FDI branch plant driven economy characterised by a relatively underdeveloped sector of knowledge-intensive business services.
Manufacturing thus represents the main driver of competitiveness, but it has a quite different structure compared to the innovation leading economies.
Key industries are dominated by multinationals'plants usually without strategic marketing, sales and R&d operations, which has serious impacts on the extent and quality of innovation demand across the business sector.
The economy of South Moravia is driven by firms concentrated in the regional capital (the city of Brno), a dynamic and innovative centre and the second largest city in the Czech republic (500 thousand inhabitants in the city agglomeration),
i) a significant broadening of a group of people across key stakeholders who trusted each other
and involves open discussions with stakeholders about the results. A comprehensive external ex-post evaluation is planned to be conducted in 2015.
It can be viewed as a result of the prevailing position of the regional and national economy within intricate global value chains.
The aim is to identify as many as possible narrow fields in which regional economy has significant position in the world market (e g. electron microscopes, cyber security SW.
which all stakeholders (may be also various foundations and even engaged public) could put funds devoted to the implementation of the strategy.
Lessons learned and conclusions for policy The key lessons learned might be helpful primarily for the regions from other transitional economies that have been on the uneasy way towards a standard system of liberal democracy with market economy,
and at the same time need to tackle with the global trend of shifting towards the networked knowledge economy.
Stakeholder's mobilisation: Building the consensus space across regional triple helix sectors is both the first and the last objective of the day.
and facilitating consensus approach of regional stakeholders. Each region has its own way to find
THE ROLE OF SMART SPECIALISATION 118 OECD 2013 ESTONIAN RESEARCH AND INNOVATION STRATEGIES THE ROADMAP TOWARDS A KNOWLEDGE BASED ECONOMY Marge Seppo and Urmas Varblane, University of Tartu
and ensuring the distribution and implementation of key technologies in other sectors of economy (particularly in traditional industry, energy sector, transport, etc.)
The growth areas will be distinguished based on combined evaluation of structure of Estonian economy. During this evaluation, the research structure and industry structure in Estonia, resources of Estonia,
In planning and designing the future strategies different stakeholders are included MER MEAC, Estonian Development Fund, University of Tartu (TIPS programme) are the initiators of the analysis,
Stakeholder and policy dialogues to achieve the ambitions Estonian innovation policy is based based on broad collaboration led by the advisory Research and development Council involving representatives of industry, academia, Government as well as ministries of Education and Research
The connection between sector ministries, societal stakeholders and the core RDI system should be much stronger in the future.
On the other hand, Estonia's innovation system is so far rather detached from a vast part of its economy.
This is the result of the innovation system being focused on areas other than those that dominate the Estonian economy today.
The connection between sector ministries, societal stakeholders and the core RDI system is insufficient. Also, the participation and activity of other stakeholders and societal partners (entrepreneurs, civil society organisations) in advisory bodies is low
and thereby limiting the capability of advisory bodies and stakeholders to define the social demand for RDI policy.
There is a need to focus on fewer and stronger clusters. Particular emphasis should be paid on increasing the SME participation.
Broad stakeholders'consultation: One of the most important factors of the future development of innovation system and using smart specialisation approach is active involvement of different stakeholders.
So far the involvement and coordination between different ministries and with industry has been an important problem.
Cooperation between all the stakeholders has to be increased definitely in the future. Social challenges: It is highly likely that some key topics are of international relevance,
and regional innovation strategies in year 2008 had the overall aim to increase the competitiveness of the Finnish economy.
renewing the economy and creating new businesses; increasing productivity in industries and the service sector;
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 Tekes 2008 strategic focus area paper People-Economy-Environment Choices for building the future represented the main linkage between regional and national strategies.
The paper outlines global drivers of change and current challenges of the Finnish economy and industries.
This database makes it possible to make versatile studies of the renewal of the Finnish economy and innovation environment.
THE ROLE OF SMART SPECIALISATION 128 OECD 2013 Stakeholder and policy dialogues to achieve the ambitions Interactions between government and cluster organisations (regional, national,
In this sense, the strategy synchronization process between Tekes and regional stakeholders has involved: i) Regional government:
ii) National stakeholders: OSKE program on environment. Tekes as a national R&d funder; iii) EU's smart specialisation agenda;
Stakeholder and policy dialogues to achieve the ambitions Stakeholder's involvements during the policy-making can be exemplified with the following figure refereed to the cluster for energy technology:
Stakeholders'involvement at different levels Source: Brandenburg Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery The capital region hosts many internationally renowned universities as well as research institutes (such as Fraunhofer and Max Planck institutes.
The results of foresight projects have also been included in the Strategy for Innovation and Efficiency of the Economy.
economic growth, infrastructure, natural resources and new materials. The second regional foresight project (The Technology Perspective Kraków-Malopolska 202035) was carried out in 2010-2011.
Under the project 10 key technologies for future development of regional economy have been defined. The ten most promising technologies in terms of the regional potential have been grouped into three areas:
and is financed from the Operational Programme Innovative Economy). Coordination activities to support smart specialisation Overall coordination activities have been carried out by the regional authorities of the Malopolska Region.
ii) Malopolska Economic Observatory which monitors the state of Malopolska economy; iii) Malopolska Social policy Observatory which monitors and collects the data from the area of social policy;
The system is based mainly on the indicators related to activities of regional stakeholders (if any phenomenon occurs interesting
Future development for smart specialisation Current status of the specialisation and prioritisation in the region The regional economy has undergone many structural changes over the last 20 years, especially from low-tech manufacturing industries to medium
Stakeholder and policy dialogues to achieve the ambitions One of the main goals of the regional authorities of the Malopolska Region is to engage citizens, especially scientists,
The goal of this approach is to involve stakeholders from a very early stage of preparation of RIS 2013-2020.
Stakeholders indicate the need to put more efforts on concentration of research and innovation priorities, OECD 2013 139 mainly on the areas such as life science, ICT, energy.
The role of universities in supporting transformation of regional economy: The example shows that important role in transformation of regional economy has been played by regional universities, especially in the fields such as:
ICT, multimedia and life sciences. Regional universities are engaged also in many initiatives aimed at addressing the main challenges in traditional areas of regional specialisation i e. mining (clean coal technologies) or chemistry, foundry and steel industries (new materials, ICT.
and innovation priorities is a challenging task including many stakeholders and active role of the regional authority.
but these results should be discussed with stakeholders through public consultations. Another challenge is how to engage stakeholders in the process of implementation of RIS 2013-2020.
It seems that monitoring and evaluation system (i e. the Malopolska Regional Development Observatories, and constantly developed system of monitoring and evaluation of RIS 2008-2013) could be used actively in this field through promoting transparency and effects of public interventions.
For example, the development of sustainable energy in the Malopolska Region is one of the key areas for future development identified by regional foresight and regional stakeholders,
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 iii) Risk that the continuity of the economic crisis may pose to the economic sustainability of the Basque Innovation System.
The context of these cases differ considerably ranging from regions/nations with the challenge to mobilise entrepreneurial discovery processes in an economy that lacks high levels of innovative assets to regions/nations with the challenge to shift the focus of existing assets
what was once a national top-down strategy is now revealing structural bottlenecks as local stakeholders seek new technological opportunities.
The new strategy for a regional photonics cluster in the region of Gwangju is geared more to the smart specialisation concept coordinating a network of local stakeholders.
In regions with relatively strong innovation capabilities, a rich network of institutions and well-organised stakeholders,
as well as mobilising stakeholders to interact with government and cooperate with each other. These are often more generic policies rather than domain specific policies.
Another issue highlighted by the cases is that policy priorities are often set in very broad terms (e g. green energy) needing further stakeholder involvement to define this more precisely in terms of promising niches or value chains.
This raises discontent with groups of stakeholders who have expectations of receiving support from their government.
Alongside wide stakeholder consultations there are ample examples of policy makers that have embraced actively the triple helix process to stimulate bottom-up innovation and diversification.
The depth and effectiveness of this stakeholder involvement are more difficult to assess across all cases.
and future economic growth will likely be based. Whether a state or region focuses on modernisation of existing industries or on building up of an emerging growth market,
and the ease of interaction between governments and stakeholders has shown to be very important in the dynamic cases.
the mobilisation of new stakeholders by disseminating the use of these tools, is as important to create broader support for a joint discovery process.
and in the private sector (e g. commercial market studies) more easily accessible for stakeholders developing their joint strategies.
spanning from the impact of single initiatives on specific players to those of integrated initiatives comprising wider sectors of the economy/RIS.
Stakeholder involvement and the combination of bottom-up and top down prioritisation processes appear to be a common pattern in studied regions.
and requires a level of self-organisation and commitment from these stakeholders in order to scale this up from an individual good idea,
and entrepreneurial stakeholders and contribute to enhance evidence based policy making. There INNOVATION-DRIVEN GROWTH IN REGIONS:
wasteful duplication and dissipation of the potential agglomeration economies at system level as a multiplicity of imitative local government authorities compete to attract the small finite pool of mobile capital,
a process based on the existing capabilities and industry commons and animated by the development of R&d and innovation activities in some targeted domains that offer present or future strengths for the regional economy.
as well as potential matches and mismatches across scientific, technological, innovative and economic activities both within regions and within global value chains.
whether or not these entrepreneurial processes have a real potential to create new economic activities or to transform existing industries.
and innovation resources and activities on the one hand and the sector structure of the economy on the other hand. Diagnosing apparent strengths, weaknesses, fits
if the economics of smart specialisation is not to remain purely abstract, but is able to link theory to practices.
In order to take into account differences with respect to size of the population and the economy, the size of its R&d and research community and the technological infrastructure,
However, international databases on sectoral economic activity often aggregate many NACE or SIC codes into broad overarching sectors,
indicators for economic activity, including international trade, R&d expenditures, birth and death rates, High-Growth enterprises rates, turnover, value-added, production, operating surplus,
By comparing the RTA's of a country or region with its RCA's for a specific technology-economy node,
In order to assess whether these processes have a real potential to create new economic activities or to transform existing industries, diagnosing apparent strengths,
And, crucially, how to make sure that the strategies are reaching their intended goal of transforming economies towards more competitive, job-rich and sustainable ones?
if the smart specialisation approach is to offer the expected transformative power on national and regional economies.
Similarly the degree of influence of various types of stakeholders in the selection process is highly context-dependent
thus ending up in a full coverage of RDTI and economic activities in a country/region;
and orient its research, innovation and economic policy independently of the federal level. The alignment between national and regional priorities is fostered by a shared willingness from the authorities at those two levels in Europe,
and economic priorities is influenced both by evidence and by the action of stakeholders Overall, strategic analyses are declared as one of the most important influence on the selection of priorities, both for regions and countries (Figure 3. 9). The influence of stakeholders,
either individually through the action of interest groups, or collectively through the action of consultative bodies, is also a key vehicle through
Reorienting the economy towards a knowledge-driven economy, ensuring renewal of the productive fabric both through transformation of existing companies/sectors and through the creation of new ones developing all companies,
Protecting the advances that the economy has in certain fields, extending those areas where the country/region is already strong,
Overall the emphasis seems to be more on building on existing strengths to transform the economy rather than on creating completely new activities.
and across that field and the economy. The frequency of use and roles of advisory bodies, high-level expert groups, hearings and polls, interministerial bodies, etc. varies considerably across countries and regions,
Co-ordination and policy-making mechanisms and institutions Within the RDTI field Between RDTI and economy Advis. body Strategic council Round tables Interminist. body Advis. body Strateg. council
and economy budgets are dedicated to the priority areas. In Lower and Upper Austria, the main instruments used to support prioritised domains are quite similar to the above case:
dedicated education and training programme and also strategic investment support as a major tool from the economic policy domain.
The whole range of tools from both RDTI and economic policy domains are reported as being used intensively, without distinction, for the support of three prioritised areas in Andalucia:
whilst most economic policy instruments are used in a moderate way to support the priorities (with the exception of cluster policy, a major instrument).
while it is not possible to calculate such a share for programmes under economic policy. At regional level, in Gwangju,
and captured by existing data or stakeholder action. Actually, the responses to the enquiry suggest that the approach followed puts much more weight on reinforcing existing strengths than on directing efforts towards future opportunities through instilling more radical trajectory changes.
THE ROLE OF SMART SPECIALISATION 192 OECD 2013 Mutual learning and expert support to improve the stakeholders involvement process and the interlinkages between quantitative and qualitative inputs into strategy formation process;
stakeholders involvement is difficult to organise with respect to future or emerging areas of activities, because by definition those domains are organised less well
and money of EU origin in the case of EU regions (in some cases Structural Funds are the main funding sources for innovation and economic policies in the regions).
and innovation strategy for smart specialisation a RIS3 starts with the adoption of a shared vision for the transformation of a regional economy towards a more competitive and more sustainable one in a long-term perspective.
and to mobilise the regional stakeholders for the process of strategy making. It helps regions to develop their RIS3 Strategies by stimulating communication
and global market opportunities do you conceive as very promising for your regional economy in the upcoming decade?
What upcoming threats and challenges do you see for the regional key economic sectors (and the regional economy as a whole) in the next decade?
How internationalised is your regional economy (i e. how export-oriented are the keys sectors, what is the level of foreign direct investment)
Does current academic education fit to the needs of the regional economy do regional employers absorb graduates
& creative sector interact with the regional economy (i e. do you have industry-science co-operations in you region, privately endowed chairs at universities, joint research infrastructures,
and identify the relevant stakeholders in the enterprise sector and the science, knowledge & creative sector.
contact relevant stakeholders, distribute the guiding questions and organise necessary steps and milestones. Perform an assessment of each sector by stakeholders stemming from the respective sector.
Perform an assessment of each sector with a mutual outside view (e g. stakeholders from the enterprise sector assess the science and the government sector and vice versa.
Prepare a first SWOT analysis as starting point for the RIS3 process. Use identified strengths, weaknesses, opportunities,
The Ministry of Economy does not want to prioritise sectors. Taking into account the new strategic document,
we could observe that Ministry of Economy prefers more horizontal approach and the selection of areas of specialisation is
Ministry of Economy prefers to talk about lead markets or key technologies i e. identified in the project Insight 2030,
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