Catalonia 2020 Strategy EMPLOYMENT & TRAINING SOCIAL COHESION INNOVATION & KNOWLEDGE ENTREPRENEURISM INTERNATIONALISATION GREEN ECONOMY Catalonia 2020 Strategy Generalitat de Catalunya (Government
of Catalonia) Ministry of Economy and Knowledge http://www. gencat. cat/economiaiconeixement April 2012 Catalonia 2020 Strategy 4 This document,
was drawn up based on the Europe 2020 Strategy and with the participation of all the Catalan Government ministries as well as economic and social stakeholders.
5. 3. Innovation and knowledge 5. 4. Entrepreneurism 5. 5. Internationalisation 5. 6. Green economy 6. Shaping policy:
of businesses 6. 5. Promoting entrepreneurship 6. 6. Fostering the transition to a more resource-efficient economy 6. 7. Modernising the Administration 6. 8. Promoting strategic infrastructure Catalonia
and building on the experience gained from the two previous Strategic Agreements for the competitiveness of the Catalan economy (2005-2007 and 2008-2011),
ECAT 2020 is designed an initiative to ensure the long-term competitiveness of the Catalan economy and better employment, establishing a roadmap for economic recovery whilst preserving the model of social cohesion.
and which are accepted widely by governments and economic and social stakeholders. Taking into account both the headline targets and the seven flagship initiatives established in the Europe 2020 Strategy and the needs of the Catalan economy,
ECAT 2020 identifies six priority areas: employment and training; social cohesion; innovation and knowledge; entrepreneurism;
and the green economy. ECAT 2020 is organised around eight strategic lines of action. These are broken down into operational objectives and quantifiable targets for products and services,
however, the effective and efficient implementation of these policies depends on the action of other stakeholders (other public authorities, employers'organisations, companies, trade unions, workers'associations, etc..
and challenges facing the Catalan economy. In its report, CAREC describes the situation and prospects for the Catalan economy and identifies the priorities that should guide policies aimed at helping Catalonia to recover
and begin growing again. The report proposes strategic actions to help the economy recover from the crisis and move towards balanced, sustained growth.
Moreover, it also identifies the four great challenges whose outcome will decide how the Catalan economy develops:
employment, finance, productivity and confidence. The CAREC report stresses that the strategy for the competitiveness of the Catalan economy should revolve around four basic ideas:
-Taking advantage of the crisis to thoroughly overhaul the Catalan economy. -Back to basics, that is relaunching the project for an entrepreneurial Catalonia with a strong and firmly-rooted industrial base in order to attract more sectors with high potential for job creation
and encourage new, emerging knowledge-based sectors. -Eliminating the barriers and rigidity that prevent the Catalan economy from growing.
The public authorities should foster entrepreneurial activity, providing guidance and establishing the necessary conditions to enable future-looking business sectors to advance
Noting the will expressed by economic and social stakeholders and the parliamentary groups, the Catalan Government reaffirms its conviction of the need to build, within the framework of institutional agreement,
ECAT 2020 also builds on the experience gathered from the two previous Strategic Agreements in Catalonia between the Catalan Government and economic and social stakeholders 3. 1. The Europe 2020 Strategy The Europe 2020 Strategy,
adopted by the European council on 17 june 2010, is designed an initiative to help the European economy recover from the crisis
Europe 2020 calls on the European economies to launch new engines to boost growth and jobs,
-Developing an economy based on knowledge and innovation (smart growth; -Promoting a more resource efficient, greener and more competitive economy (sustainable growth),
and Catalonia 2020 Strategy 11-Fostering a high-employment economy that can ensure economic, social and territorial cohesion (inclusive growth).
ECAT 2020 follows the roadmap laid down by the Europe 2020 Strategy, adapting it to the Catalan context
and the priorities of its economy. 3. 2. Previous strategic agreements Catalonia has had experience with two previous strategic agreements for the competitiveness of the Catalan economy since 2005.
These proved to be valid tools for cooperation between the Government and economic and social stakeholders.
On 16 february 2005, the Catalan Government and economic and social stakeholders signed the Strategic Agreement for the Internationalisation, Quality of Employment and Competitiveness of the Catalan Economy.
This strategy established eighty-six measures to be implemented over the 2005-2007 period to promote competitiveness and shape economic policy in order to boost productivity
economic growth, quality of employment and social cohesion. When this agreement expired, the signatories decided to revise its content
Although the capacity to fully implement this second initiative was conditioned inevitably by the current economic crisis and the subsequent budgetary restrictions,
The current situation of economic crisis and public spending restrictions requires appropriate, effective and efficient economic policy measures.
but in many cases they can only be put into effect in cooperation with other stakeholders (other public authorities, employers'organisations, companies, trade unions, workers'associations, etc.).
a strategy for improving the competitiveness of the Catalan economy and employment. ECAT 2020 takes its inspiration from the Europe 2020 Strategy,
and widely accepted by both state and regional governments and economic and social stakeholders. The ten defining components 1. Government leadership and dialogue with economic and social stakeholders is vital.
Agreement will strengthen moves to adapt the production model to a more competitive system generating sustainable growth
and all economic and social stakeholders. 6. ECAT 2020 will be monitored annually, with an interim assessment report drawn up in 2015.
and dialogue through commissions formed by different stakeholders. These bodies are: Catalonia 2020 Strategy 15-An institutional commission, the highest body for monitoring ECAT 2020, formed by representatives from the organisations that endorse the strategy;
-Monitoring commissions, formed by representatives from the ministries involved and by economic and social stakeholders;
The Ministry of Economy and Knowledge, which acts as the technical secretariat for ECAT 2020, is supported also by other units with transversal functions.
firstly, the headline targets and the seven flagship initiatives of Europe 2020 Strategy and, secondly, the needs and priorities of the Catalan economy.
and training The greatest challenge facing the Catalan economy is to create employment. The Government must provide a stable,
reliable environment in order to restart the production system and economic growth, an essential condition for generating jobs and reducing the high unemployment rate.
Inclusive growth European platform against poverty Social cohesion Resource-efficient Europe Green economy Sustainable growth Innovation Union Innovation and knowledge Smart growth
For instance, in order to foster economic growth based on increased productivity and quality job creation, it is necessary to improve mechanisms for professional mediation,
and adopt measures to combat the informal economy and undeclared work. A commitment should also be made to reducing segmentation
Economic and social stakeholders should also play a major role in this sphere. In order to ensure that the labour market operate adequately,
economics, the media, the new technologies, postgraduate studies, international mobility, etc. Catalonia faces the challenge of modernising its universities
Promoting the social economy is a basic means of correcting inequalities. In the present economic climate, public spending caps greatly restrict the public authorities'capacity to respond to growing social demands.
The creation of new business initiatives in the social economy which has a long tradition in Catalonia is essential to bring out the full potential of social enterprises to create new jobs
The Catalan ICT industry should act as a driving force behind economic growth helping to increase business productivity
and employing highly qualified personnel in the production sector are crucial conditions for increasing the competitiveness of the Catalan economy.
and highly qualified personnel. 5. 4. Entrepreneurism Business enterprises are expected to lead the recovery of economic activity.
which is one of the strongest points of the Catalan economy. Businesses must maintain or intensify their activities,
The limited availability of resources causes problems of liquidity that in turn, hampers business activity. For this reason, the Government must facilitate access to finance for business investment
International competition and the economic crisis require companies to rethink their competitive strategies, particularly as regards technological innovation, internationalisation and adjustment towards activities and products with higher added value,
should lead the recovery of economic activity and job creation. However, all too often, SMES have neither the training nor the tools needed to adapt to a rapidly-changing and evermore competitive environment.
The initiative takes the shape of a public-private network that coordinates all stakeholders committed to launching new business projects.
Catalonia 2020 Strategy 21 5. 6. Green economy The Catalan economy, like that of the rest of Europe, has taken up the challenge of moving towards more efficient use of resources.
Industry needs to speed up the process of transition towards an economy that produces low levels of greenhouse gas emissions
The green economy offers great economic opportunities to industry, the energy sector, farming and tourism.
-efficient economy 7. Modernising the Administration 8. Promoting strategic infrastructure Each priority corresponds to a number of operational objectives that translate into annually quantifiable measures (products
and the green economy. Targets, budgets and monitoring indicators for each product and service will be established annually.
skills and aptitudes are crucial elements for innovation, productivity and the competitiveness of the economy.
In the present context of severe economic crisis and high unemployment it is particularly important to improve employability as a way of working towards a change to Catalonia 2020 Strategy 23 a more balanced production model, based on productivity.
active policies with regard to the labour market and making a decisive contribution to improving employability are two of the challenges facing the Catalan economy.
and to establish a model for economic growth that is more balanced than previous models. 6. 1. 4. Matching vocational training to labour market requirements Serious imbalances exist between supply
there is more chance of pupils successfully completing their schooling. 6. 1. 6. Promoting full comprehension of English as a third language With its notable presence in the spheres of economics, the new technologies and higher studies,
and to generate economic growth through increased productivity and the creation of quality jobs. The Catalan Government's powers in this field are limited.
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 1. Improving employability 1. 1. Improving
To this end, economic and social stakeholders should undertake to focus collective negotiation on increasing productivity within the Catalan economy. 6. 2. 3. Improving job quality and conditions of employment In order to foster
sustained economic growth based on productivity it is crucial to promote the creation of quality jobs. A quality working environment and secure conditions of employment are key factors in persuading workers to commit to company projects
Government measures in this regard should be supported by economic and social stakeholders, who should foster job quality and security and spread prevention culture amongst Catalan businesses.
in cooperation with employers'organisations and social stakeholders, the Government also provides advisory services on SME funding. 6. 3. 1. Improving companies'access to finance In view of the difficulties that companies encounter these days with regard to obtaining access to credit,
and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 2. Improving labour market performance 2. 1. Improving efficiency and information
investment networks and partner search mechanisms. 6. 4. Promoting the strategic adaptation of businesses to the global economy The world economy is currently facing two great challenges:
Within Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 3. Facilitating business access to finance 3. 1. Improving
whilst also providing incentives for research centres with clear industrial potential to transfer know-how to the production system. 6. 4. 2. Increasing research into new technologies with applications in the productive economy It is not easy
in order to generate economic growth, fresh efforts are required to create a real market for the results of research and for patents.
and changing fiscal conditions are put forward to the Spanish Government. 6. 4. 4. Increasing the internationalisation of the economy Internationalisation is a key driving force for economic recovery.
in order to encourage more and more businesses to include social concerts in their strategies for competitiveness. 6. 4. 8. Promoting quality tourism Tourism is a strategic sector of the Catalan economy.
The main initiatives in this respect include projects with knock-on effects focused on ICT (linked to Barcelona Mobile World Capital) and on sustainable mobility (electric vehicles, development of new businesses and economic activities, etc..
pursue the goal of reactivating economic activity, particularly as regards SMES. Catalonia 2020 Strategy 33 6. 4. 10.
and coordinate all stakeholders committed to establishing new business projects. 6. 5. 1. Introducing entrepreneurial values in the education system According to the European Charter for Small Enterprises,
higher Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 4. Promoting the strategic adaptation of businesses to the global economy
and effectiveness in the R&d and innovation system 4. 2. Increasing research into new technologies with applications in the productive economy 4. 3. Fostering innovation in business 4. 4
. Increasing the internationalisation of the economy 4. 5. Fostering the transition of businesses to activities with higher added value 4. 6. Promoting improved business
The rural economy has a high margin for generating added value and public policies should reinforce this potential by promoting the introduction of new products (such as ecological),
which has enormous potential for boosting the rural economy, has been the most rapidly growing tourism segment in Catalonia.
Fostering the creation of technology-based companies In line with the need to adapt the economy towards sectors that generate higher added value
the social economy is vital for fostering the integration of groups most at risk of social exclusion.
Government actions to this end are aimed at providing a framework to encourage new business initiatives in the sphere of the social economy. 6. 6. Fostering the transition to a more resource-efficient economy Public policies to support economic activity
should promote the transition towards a more resource-efficient economy as much out of necessity (decreasing dependency on fossil fuels, rising energy prices, security of supply, reducing emissions of greenhouse gases
In line with the Europe 2020 Strategy, ECAT 2020 Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE
The Administration should play a key role in facilitating the transformation towards a more sustainable, more efficient economy in terms of use of resources.
and introducing the sustainability variable in instruments supporting economic activity and in public procurement. In this respect, the Catalan Ecodesign Programme 2011-2012 (ECODISCAT) promotes sustainable production and consumption.
and efficiency in all sectors of the economy. 6. 6. 3. Promoting renewable energy sources Renewable energy sources generate business opportunities
and promoting recycled, recyclable and biodegradable products. 6. 7. Modernising Government The public authorities should provide a framework for economic activity and public intervention that fosters business initiative and job creation whilst preserving the rights and duties
In this sphere, Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 6. Fostering the transition to a more resourceefficient economy
can create barriers against trade, investment, the creation of businesses and the efficiency of the economy in general.
and to promote smart legislation that neither restricts competition nor generates unnecessary or disproportionate costs to economic activity.
In order to facilitate economic activity, and as part of the process aimed at improving public services, it is essential to introduce the electronic administration as an instrument that will increase the flexibility,
which all stakeholders add value to products and services (collective know-how). The Web and the social networks give products and services new functionalities,
and airports restricts the contribution that such infrastructure can make to the competitiveness of the Catalan economy.
the Catalan Government calls for the devolution of powers from Central Government to manage infrastructure that is vital to the competitiveness of the Catalan economy,
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 7. Modernising Government 7. 1. Preventing legislation
of the economy and as local economic motors, it is important to increase the connectivity of Catalan airports, opening up new routes and developing the air cargo industry.
and is a vital condition for generating economic activity in rural areas. Irrigation infrastructure also plays a strategic role in boosting
Operational objective Employment and training Social cohesion Innovation and knowledge Entrepreneurism Internationalisation Green economy STRATEGIC LINE 8. Promoting strategic infrastructure 8. 1. Promoting Catalan
other innovation stakeholders with the analytical framework and tools for evaluating the strengths and weaknesses of regional policies and regional innovation systems.
28 Appendix B Stakeholders consulted...30 4 Executive Summary 1. Introduction: Main trends and challenges in the Regional Innovation System Central Hungary (CH) encompassing Budapest and Pest county is the economic, commercial, financial, administrative and cultural centre of Hungary.
and the legitimacy of the regional innovation agency and increasing efforts to establish linkages with new stakeholders. 2 This report calculates with HUF/€ exchange rate of 250 for the years 2004-2007;
Competition among the stakeholders for authority i e. for power to decide about the allocation of scarce resources proved an effective barrier of joint initiatives and of the design and implementation of a RIS.
If regional stakeholders remain committed to the strategic mid-term improvement of the regional innovation performance, they have to align their forces
Representatives of INNOREG, similarly to those of other RIAS can only hope their network would be sustained and their in depth knowledge of both the regional innovation stakeholders (their network capital) and of the regional innovation specifics,
innovation policy stakeholders (at all levels) have failed to do so. As a consequence of their lacking vision (and mid-term strategy) and of the failure to position this regional unit in the national innovation system,
Nonetheless analysts and the interviewed policy stakeholders acknowledge that regional innovation performance has been inferior to its potential.
and an appropriate mid-term strategy conceived in partnership with regional level stakeholders. At the regional level, involvement in strategy design and implementation should be intensified.
CH's innovation policy stakeholders have to become more proactive, launch bottom-up initiatives, and contribute to the positioning of the region both at the national level and internationally.
Economic transformation and foreign direct investment driven modernisation have produced substantial structural change in CH's economy.
Higher-than-the-average entrepreneurship is explained with the concentration of economic activity in this region and with the above average development level of supporting institutions and industries.
CH was affected seriously by the economic crisis that started in 2008. Over a period of two years, the number of unemployed doubled, reaching 120,500 in 2010.
and from the other parts of the economy (this tendency is reinforced by the hub
the development of the capital is perceived (by stakeholders in other regions) to be at the expense of the rest of Hungary (a zero sum
therefore, indicators should be assessed in the context of an overall meagre innovation performance of the economy.
Hence, the main challenges identified below will not include the usual challenges that otherwise also apply e g. the necessity of 1) increasing stakeholders'commitment to innovation;
(i e. that support should be channelled into regions characterised by relatively strong innovation actors rather than granted to stakeholders in relatively weaker regions) include the above average absorption capability of CH,
According to regional stakeholders these shortcomings have been especially significant in CH and they have prevented the design
7 Competition among the stakeholders for authority i e. for the power to decide on the allocation of scarce resources proved an effective barrier of joint initiatives and of the design and implementation of a RIS.
7 This is practically a unanimous opinion of all interviewed stakeholders (including the ones responsible in principle for the design and implementation of the strategy,
During the first years of its activity, INNOREG started to establish linkages with the main regional innovation stakeholders,
stakeholders, with the representatives of other Hungarian RIAS and with international stakeholders. Despite a more or less diversified portfolio of events and actions, neither the term coordination, nor strategy implementation applies to INNOREG's activity:
Stakeholders in the pole cities could instead submit project proposals and apply for funding from various OPS of the New Hungary Development Plan.
and stakeholders who submitted tender applications occasionally made reference to the newly conceived pole strategies, OP-based Pole Programme implementation was fragmented obviously and partial.
and the development of a knowledge-based economy opened up never-before-seen opportunities for regional innovation stakeholders.
CH's stakeholders trying to receive funding for their RTDI related efforts were channelled thus effectively towards OPS.
As for the new structure of the national innovation system, strategy formulation is currently the responsibility of the Ministry for National Economy.
According to stakeholders who read the unofficial first draft of the new national innovation strategy (no official first draft has been published yet) regional aspects of innovation are mentioned not in the national strategy. 11 Representatives of INNOREG,
and their in depth knowledge of both the regional innovation stakeholders (their network 10 The Council, established by Government Decree No. 1279/2010,
It tries to involve all possible stakeholders and improve thereby its lobbying power and multiply its network linkages. 17 National Office for Research
which prevents them functioning as a stakeholder in partnership-based governance of regional innovation. Instead of being the main coordinating and supporting actors of regional innovation,
Therefore, the amount the central budget can save will produce huge opportunity costs. Regional operational programmes will allocate huge amounts of funding to promote, among other things, regional innovation objectives.
p. 125) that shows the number of innovation policy instruments used by national and regional governments in 21 OECD economies.
(and ensure the transfer of know how by including advanced economy regions as twin-regions). It was in the framework of this programme that CHIC (that later became one of INNOREG's founding organisations) prepared the RIS of CH, with contributions from Innostart and other consultancy firms.
Regionally decentralised Innocheck programmes provided indirect support to stakeholders'innovation efforts (the programme promoted small and micro-sized firms'demand for innovation services in the form of innovation vouchers that could be used to purchase of innovation
Direct support for regional innovation stakeholders'RTDI activities was granted by several CHOP measures either under headings referring directly to the support of market oriented R&d activities,
one supported regional stakeholders'innovation efforts, the other granted support to the commercialisation of SMES'R&d results.
specifically to the development of e-commerce targeted at regional stakeholders. Human resources The regional innovation policy mix does not target human resources in terms of supporting higher education institutions'education activity.
CH innovation stakeholders can also access JEREMIE funding instruments. JEREMIE, i e. Joint European Resources for Micro to medium Enterprises is an initiative of the European commission together with the European Investment Bank
Innovation stakeholders'participation in international projects X X X Improvement of regional innovation culture X X X BGP=Baross Gábor Programme
and had established linkages with major regional, national and a number of international stakeholders, their existing knowledge assets and their enhanced activities have failed to produce the expected synergy effects. 22 Secondly,
Both INNOREG and its founding organisations (and also other innovation/development policy stakeholders within CH and in Hungary, at the national level) had outdated an old
what 22 This was shared the opinion by several of the interviewed stakeholders (No. 2, 4,
regional innovation policy was considered obviously inefficient, by all stakeholders. In fact, policy failed to produce the expected synergies,
It has built a dense network of linkages and accumulated in depth knowledge about regional innovation stakeholders
and raising awareness among stakeholders of innovation issues, including previously non-innovating regional SMES. It is worth noting that according to the interviewed stakeholders this was their main ambition:
hence if success is the function of the fulfilment of ambitions, this activity was really successful.
Innocheck also proved highly efficient in terms of raising stakeholders'awareness of the importance of non-technological innovations,
the interviewed stakeholders unanimously opted for the Central Hungarian Innovation Prize (CHIP) founded by INNOREG.
Stakeholders'selection is motivated neither by the availability of credible evidence of success, nor by the strategic orientation and real innovativeness of the scheme but rather by the fact that this was the only scheme established at the regional level.
and regional stakeholders were simple intermediaries in these programmes. CHIP was founded jointly by INNOREG and the Central Hungarian Regional Development Council in 2007.
The idea of establishing a similar prize at the regional level was criticised first by national innovation stakeholders,
Innovation stakeholders'participation in international projects; and Technology-oriented entrepreneurship. INNOREG's policies have focused mainly on the promotion of regional innovation culture (section 3. 1). Other policy initiatives included project generation:
The innovation activity of regional stakeholders was targeted specifically by the Economic Development Operational Programme (EDOP),
according to the interviewed stakeholders EU Structural Funds co-financed policy schemes provide by far the largest amount of support to regional innovation objectives.
which national innovation policy stakeholders could discuss it with the representatives of business and academia.
The main success factors of the‘pole programme'were the activity and the ambitions of stakeholders in the three selected sectors.
even if according to stakeholders the project cofinancing type coordination i e. the lack of a targeted national programme that would fund the implementation of the programme was an important deficiency. 3. 6 Future orientations
innovation policy stakeholders (at all levels) have failed to maximise the impact of policy intervention. As a consequence of a lacking vision (and mid-term strategy) and of the failure to position this spatial unit in the national innovation system,
the spontaneous development of stakeholders was not reinforced by policy levers. Deficiencies in strategy design and implementation
and implemented in a partnership-based process with regional stakeholders. In the case of knowledge-intensive capital regions where national innovation activity shows a high concentration
CH's innovation policy stakeholders have to become more proactive, launch bottom-up initiatives, and contribute to the positioning of the region both at the national level and internationally.
the HEI-and the PRO-based regional innovation stakeholders to pursue their activities within an increasingly centralised system:
The role and the growth perspectives of creative and cultural industries in the economy of Budapest Metropolitan Region.
Synthesis Report for the European commission, DG for Regional Policy, on behalf of the network for European Techno-Economic policy Support (ETEPS AISBL) http://ec. europa. eu/regional policy/sources/docgener
/studies/pdf/2010 technological change. pdf 30 Appendix B Stakeholders consulted 1. Zoltán Hantos, vice-president of CHIC, Central Hungarian Innovation Centre (5 october 2011) 2
CHIC Central Hungarian Innovation Centre Economy The region's GDP per capita was 4, 387 thousand HUF (€17. 461 1) in 2008, the highest in Hungary.
The region's economy is centered around services: they account for more than 77%of gross value added in the region (82.2%in Budapest),
Thus, inside the region, there are at least three distinct parts with different level of development, different economies etc.
Eötvös Lorán University and University of Technology and Economics. It is home mainly to ICT firms and to the European Institute of Innovation & Technology.
to promote the innovation-and enterprise-oriented development of the knowledge economy; To prepare a map of the activities of organisations taking part in the innovation process,
To improve regional stakeholders'awareness of and commitment to innovation; To carry out a range of innovation management services
and about the main stakeholders: organisations, institutions and private persons. Integration of these data into the countrywide information system. 2. Evaluation and registration of innovation centres, incubator houses and technology centres. 3. Information provision about funding opportunities for innovative SMES,
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