and competitiveness in today's business and economy are the main generators of the cooperation
Knowledge-Based Economy Unit C. 4-Universities and Researchers Contact: Adeline Kroll European commission Office SDME 9/17 B-1049 Brussels Tel. 32-2) 29-85812 Fax (32-2) 29-64287 E-mail:
In addition, if higher education is one of the engines of the economy and a key point on the‘knowledge triangle',
17 2. 1 University-based Research in the Knowledge Economy...17 2. 2 The European Policy Context...
and innovation, universities are considered key to the success of the Lisbon Strategy with its move towards a global and knowledge-based economy.
and a summary of its activities and findings is presented. 2. 1 University-based Research in the Knowledge Economy Around the world,
and economy and improve its competitiveness'.'To meet these challenges, universities are undergoing profound change.
-based economy in the world, capable of sustainable economic growth with more and better jobs and greater social cohesion.'
'In its resolution‘Modernising Universities for Europe‘s Competitiveness in a Global Knowledge Economy',the Council (2007, p. 3) expressed the view that the‘challenges posed by globalisation require that the European Higher education Area
However, the experience of rankings illustrates that they can promote a simplistic understanding of university-based research and its contribution to society and the economy.
and of the system as part of a wider economic strategy to position the city or region as an important node in the global economy.
Impact and benefits refers to the contribution of research outcomes for society, culture, the environment and/or the economy.
The purpose of assessing the impact is to gauge the contribution that university-based research makes to society and the economy.
Willingness of industry to pay for research is a useful indicator of its anticipated contribution to innovation and the economy.
such as the regional or national economy. Important to develop methods to track graduate employability and career paths.
Willingness of external stakeholders to use and/or pay for research is a useful indicator of its anticipated contribution to innovation and the economy.
and worldwide about the contribution and impact that university-based research is having on society and the economy.
and national governments on the necessity to develop highly-skilled internationally competitive and sustainable smart economies and societies.
In line with international practice to ensure wider dissemination and take-up of research into society and the economy, support for‘experiments'with open science,
Knowledgebased economy) with secretarial assistance from Celina Pastor Rubio and Alina Hossu. Curriculum vitae of Members of the Expert Group MACKIEWCZ Wolfgang (Chairperson.
She was involved also in OECD collaboration with transition economies and with emerging promising economies from different regions (ASEAN, African, and Latin-american countries.
She is associate member of ERAWATCH network. On various national and international training seminars she is teaching on STI indicators, HRST mobility and university-industry collaboration.
She is investigating the R&d and innovation policy in transition economies, and the changing rationales of policy making emphasizing the public-private interactions.
Jamil, a Moroccan education economist, is the World bank's tertiary education coordinator. Mr. Salmi is the principal author of the Bank's new Tertiary education Strategy entitled Constructing Knowledge Societies:
and its anticipated contribution to innovation and the economy. Research income can usefully be broken down by source of income,
Pro This indicator attempts to measure the central role played by a highly trained and skilled workforce employed throughout society and the economy the public and private sector,
Information Recognises Contributions To end-Users, the Economy and the Wider Society. This indicator is the counterpart to OTHER INDICATORS OF PEER ESTEEM.
but seek to measure the contribution that research makes to society and the economy. The data can be collected quantitatively or qualitatively.
assessment of both the quality of research and its impact on the broader economy and society;
the impact on the broader economy and society of the Research Group's research to be demonstrated primarily through Case studies;
universities for Europe's competitiveness in a global knowledge economy, 16096/1/07 REV 1. Retrieved 26 july 2009,
(ICT) have enhanced greatly the competition spurred by the globalization of the world economies. Even small and medium-sized enterprises (SMES) are no more immune to the challenges that the globalization brings about.
and in certain instances worrisome, situation since SMES play a key-role in most economies,
22 5. 2 Cost Explosion in Booming Economies...22 5. 3 Protection of Intellectual Property rights...
R. Tiwari and S. Buse (October 2007) Page 4 of 31 1-Introduction Technological advancements, especially in Information and Communication Technologies (ICT) have enhanced greatly the competition spurred by the globalization of the world economies.
and in certain instances worrisome, situation since SMES play a key-role in most economies,
Innovative ideas and products are becoming increasingly important to counter the priceoriented competition from low-cost producers from emerging economies
while elaborating the crucial role that SMES play in the economy. 2. 1 Innovation Innovation,
even though SMES play an important role in the national economy as discussed in the following.
2 These data exemplarily demonstrate the key-role which SMES play in Germany's economy.
For detailed discussions on SMES'role in the German economy see Hamer (1997), Bundestag (2002), Günterberg and Kayser (2004),
and find themselves faced with tough price-oriented competition from low-cost producers from emerging economies in Asia
Moreover, blocking foreign firms from doing business in the country may lead to trade retaliations abroad that could severally affect an export-oriented economy like that of Germany.
and other developed economies we conducted a new set of investigation. The methodology and selected results of this study are explained in the following. 3. 2 Findings of the Survey RIS-Hamburg To identify barriers to innovation in SMES in the Metropolitan Region of Hamburg we at first conducted an empirical study in form
the survey targeted mainly SMES from the fields of IT, Media, Civil Aviation, Electronics, Machinery Manufacturing, Maritime Economy, Medical Equipments, Logistics,
emerging economies in Asia are rapidly taking over the role of lead markets by their openness for consumption
More and more people in emerging economies are having financial resources to buy high-end products (EIU, 2004), and the number of the middle class consumers is growing rapidly in emerging countries particularly China and India.
2007). 5-Challenges of Global Innovation The section above has given us a broad overview over how global innovation may be used as a chance to mitigate the effects of innovation barriers prevalent in Germany and inter alia in advanced economies.
%The shortage of qualified personnel is also felt in the booming economy of China, where German firms are finding it increasingly difficult to recruit local technicians,
2006). 5. 2 Cost Explosion in Booming Economies The cost advantage of many emerging nations with booming economies is disappearing in many respects, for instance,
In this respect the internationalization of R&d seems to be a useful instrument to mitigate the effects of barriers to innovation often faced by SMES in Germany, the EU or anywhere else in industrialized economies.
The globalisation of research and development, Economist Intelligence unit. Ernst, D. 2006: Innovation Offshoring: Asia's Emerging Role in Global Innovation Network, East-West Center Special reports, No. 10/2006.
For example trans-European transport and energy networks and other infrastructure, the knowledge economy, energy and SMES are 10/38 Best practices in transport infrastructure financing 1/23/2013
The project should also benefit the local economy and satisfy both EBRD's environmental standards and those of the host country.
and generate positive effects to the regional economy. Cities, municipalities or other similar self-governmental regions and local-level players are also giving their contribution to the infrastructure financing.
-eu-20050-p. htm http://www. femern. com/home/economy/who-pays http://www. femern. com/home/finished-tunnel/traffic--capacity Finland
or cluster serving the local economy and society, if local and regional authorities implement smart specialisation strategies to concentrate resources on key priorities and maximise impact (EC COM 2011).
Innovation and the knowledge based economy, Integrative city development and Technical support. It should be noted here that The City of Vienna encourages application-oriented research through the Innovation
that are advised better to invest in the development of the applications of a generic technology or service innovation in one or several important areas of the regional economy or in developing cross-sectoral approaches (EC COM 2010/553).
and the knowledge economy. Industrial and Corporate Change 10: 945 974. European commission (2010: Regional Policy contributing to smart growth in Europe 2020.
The Role of Universities in Innovation Systems and Regional Economies. Expert meeting on The future of academic research, Vienna University of Economics and Business Administration, 19-20 october 2006.
These results hold across four large EU economies with a high SMES intensity such as Italy, France, Germany, Spain and UK (Griffith et al. 2006). 2013 Brief on INNOVATION PERFORMANCE
Innovation and Growth in the Global economy, Massachussets: MIT Press Holzl W. 2009), Is the R&d behaviour of fast-growing SMES different?
Towards a National S3 strategy Balázs Borsi (Ministry for National Economy) Budapest, 25 june 2013 Source of map:
Thereby, they make a substantial contribution to the competitiveness of the Hungarian economy, making it a sustainable knowledge economy Investment in Our Future The National RDI Strategy 2020 Main objective:
GERD/GDP ratio shall reach 1. 8%by 2020 (from business sources) Hungary's innovation performance should reach the EU average by the end of the decade.
A substantially larger number of supplier SMES have business links with the MNCS in the economy.
and value chain learning economy, industrial based innovation Central Hungary A globally competing region tackling all?
and globally relevant industry networks and connected higher education/research) Central Transdanubia Southern Transdanubia (Some sporadic industry players yet weak economy in general, higher education and research is (usually) locally important and relevant
) Northern Hungary Northern Great Plain (Economy is the least competitive, strong (often interdisciplinary) research with international connectivity) Southern Great Plain???
and R&d (Ministry for National Economy) and the National Innovation Office For the National RDI Strategy, there was a consultation body,
however, it is far from involvement levels in more developed economies/societies National and regional governance bodies and mechanisms are still to be defined High-level S&t policy coordination body is to be introduced For S3 a fully centralised governance system at the national level is planned Chief scientists for facilitating public-sector RDI is to be introduced in the ministries
and project generation Coordination to be ensured by a monitoring committee The EDIOP GINOP measures under priority axis 2 Development of the knowledge economy Measure 1:
the so-called‘sharing economy'is blossoming in which people can share cars, tools, accommodation, and even their time and skills.
employment, place making, the sharing economy, health and education. After the references section, there are also three annexes:
Scoreboard Tepsie themes Jobs Work-life balance Economic Affairs 1. Employment Income 2. Sharing economy (and sharing society) Health Health 3
Education and skills Participation and democracy Culture and arts Health and wellbeing Work and employment Neighbourhood regeneration Energy and environment Science Finance and economy.
and activism Sharing Economy (and sharing society) Exchanging time and talent Activating the value of dormant assets Creating viable shared assets Health Preventive and self help Personalised and smart patient environments Supporting smart infrastructure for integrated health
localities) 7. Other Sharing economy (and sharing society) 1. Improved matching and exchanging of time
. Scaled sharing economy impact (more sectors, workers, localities, people, etc. 8. Other Health 1. Increase in health and wellbeing (numbers of people and duration) 2. Increase in health personalisation 3. Increase in health skills (personal & collective:
and volunteers Sharing economy Focus area Case Social needs addressed Exchanging time and talent Athens Time Bank (EL) Meeting all types of basic daily needs for people in poverty
and the more market-oriented models in the Anglo saxon countries, aspects of which many of the former command economy countries of Eastern europe have tended to adopt.
European learning networks, such as gender mainstreaming, age management, inclusive entrepreneurship, migrant and ethnic minorities, reintegration of ex-offenders, social economy, asylum seekers
despite the economy picking up again in the last few years. This reflects and exacerbates many social problems arising from sometimes contradictory issues like:
after an initial rise soon followed by a fall. 9 This may be due to many self-employed people transferring their business to the unofficial economy as well as more self-regulation via,
as elsewhere, there is a trend towards a greater role for social entrepreneurship and the social economy,
/social-economy/13 http://www. isede-net. com/content/social-economy/wise-work-integration-social-enterprises-tool-promotinginclusion 19
For example, most observers agree that innovation in the economy supported or enabled by ICT typically reduces the demand for labour in existing sectors and companies because of increased productivity,
This enabling and indispensable role of ICT is comparable to the role of ICT in the sharing economy theme and in the smart places cases in the place making theme.
which are (according to the Economist, 2012) reshaping each other and often becoming a seamless whole. Physical and digital worlds are becoming increasingly interwoven,
for instance, pointing a smart phone at a building instantly provides information about it. 34 According to the Economist (2012),
Economist, 2012) There is an increasing number of digital services which are place-specific rather than general.
as well as completely new business models like the sharing economy. 33 See Tepsie D8. 1, section 3. 1. 6:
and IOBY) Types and uses of ICT The types of ICT and its use varies across the three sharing economy focus areas,
and many more with significantly reduced income, thereby encouraging the growth of local solutions as alternatives to the mainstream economy.
This enabling and indispensable role of ICT is comparable to the role of ICT in the sharing economy theme and in the finding employment cases in the employment theme.
looking not only at developing models of public-private partnerships (PPPS) but also at civil and citizen partnerships (PPCPS) and models of social economy enterprises.
In the Viedome case this new model remains very much in the formal monetary economy and has developed successfully a combined social
In the TEM case, the new economic model is basically non-monetary and largely outside the formal traditional economy.
This enabling and indispensable role of ICT is comparable to the role of ICT in the sharing economy theme and in the finding employment cases in the employment theme.
and in local problems, provided all aspects are transparent & open to interrogation. 60 The sharing economy Context This section very briefly summarises the main findings arising from the desk research carried out across Europe in relation to strategic issues
which provides the general sharing economy context, as well as some of the observed and expected roles and impacts of ICT within this context.
and to identify three focus areas and relevant cases within the sharing economy theme. Deliverables D8. 4 and D8. 5 will examine both the empirical evidence presented here in the light of the full desk research to draw conclusions and recommendations regarding outstanding research gaps and policy issues.
In the last decade this is starting to be challenged by a new sharing economy growing from a small base, in
The sharing economy is starting to supplement exclusive ownership with new forms of common, collective and collaborative ownership.
since impact as global market leaders. 50 The sharing economy also termed‘collaborative consumption')is growing fast,
worth €85 billion in the US51 and already €22 billion in the UK in 2012.52 This seems to be the results of three main factors factors massively boosting the sharing economy over the last six years:
and how to make these‘work harder'for them ICT connectivity makes the sharing economy possible on a scale never seen before 48 www. zipcar. com 49 www. airbnb. com 50 Given the above very general definition
of the sharing economy, it can be seen it potentially covers a huge range of issues across most, if not all, sectors and aspects of daily living.
simply attempts to explore some aspects of the sharing economy using a number of cases, most
This will be taken further in Deliverables D8. 4 and D8. 5 51 www. fastcompany. com/1747551/sharing-economy 52 http://economia. icaew. com/opinion/november
According to Rachel Botsman (Botsman and Rogers 2010), the challenge of the current sharing economy is how to scale without over commercialisation and loss of its social, human-centred and experiential characteristics.
The currency of the sharing economy is‘peer trust'based on‘reputational capital, 'so measuring, transporting
and peer trust could start to replace this as the sharing economy takes off. Botsman (2010) further observes that classical economics to date has seen the sharing economy as simply‘stealing'market from the established
normally big corporate, players. For example, hotels complain bitterly about Airbnb reducing their market share without paying normal business taxes.
The sharing economy, as most radical innovations, is potentially very destructive of existing business models and incumbent actors.
Does the sharing economy not only hijack and destroy parts of the existing market, but also create new forms of demand and thus new market value around these existing assets?
thus boosting local economies and in effect decanting some economic activity from downtown to the suburbs. Whatever the balance of cannibalising existing demand
regulatory and insurance barriers designed for the ownership rather than the access economy. The sharing economy is currently at the stage where this is a critical issue
For example, traditional big corporates are starting to move in (like BMW with its car share programme) attempting to capitalise on these new markets
whilst, at the same time, unwittingly or not, are in danger of destroying the social, community and authenticity ethos still inherent in the sharing economy.
This current stage of development of the sharing economy will also determine whether and, if so, how the sharing economy will scale and
what form will it take. Will we recognise the current characteristics of the sharing economy in ten years?
At its core, the sharing economy is aimed social innovation at transforming how some of the fundamentals of our political economy are practiced.
At present, property ownership rights, while including the right to use and consume, are configured around the right to exclude.
The sharing economy is characterised by the organised practice of exercising this right as a right to share.
What has become labeled as the sharing economy, started as many simultaneous initiatives in many places and in many asset domains.
In the early days of the shared economy movement, and this still remains true today, phrases such as under-utilised assets equals waste
and to scale the sharing economy. Another of the quite unique features of the development of the sharing economy movement is that it very early on was driven by different categories of actors.
For example, individuals willing to share their assets. Groups of individuals who organise mutual sharing, and local communities that do the same.
What has become the sharing economy movement includes all these types of actors and they all seem to enhance the scale and scope of activities and sharing for each other.
Trust and community are at the heart of the sharing economy. It promotes personal and long-term relations in new ways creating loyalty and community around the shared economy service,
and thereby making the automated systems resilient to commoditisation. The shift from selling a product once and for all in a market transaction,
For such reasons, most sharing economy companies are based on some form of membership model, where there is partly some initial screening,
This is one of the reasons why the sharing economy movement seemingly without effort can span across businesses
Whether or not the sharing economy becomes a business, remains purely voluntary or some mix in between,
this means that the sharing economy movement comprehensively fulfils at least the mainstream definitions of social innovation.
such as the economy, environment, employment, education, health and community. It spans from individual 53 www. taskrabbit. com 63 action, community initiatives,
There seem to be two main impacts of the sharing economy First, on human empowerment by giving people access to goods and services in ways and on a scale not possible before,
Roles and impacts of ICT The sharing economy has always been bed around, such as-and-breakfast holidays
but at least in the era of the modern economy it has always been niche and marginal.
driving the massive growth and impact of the sharing economy now possible on a scale never seen before.
or supporting social innovation in the sharing economy theme. 1. Exchanging time and talent One of the conundrums of advanced labour markets is that there are fairly fixed valuations of different kinds of time and talent based on job-position, education, skill-sets, labour market regulation and legislation
but 54 www. fastcompany. com/1747551/sharing-economy 64 can easily find a handyman on Taskrabbit who has the half an hour needed to do the task,
The sharing economy is rich on initiatives that address this conundrum, ranging from neighborhood task
and talent increasing social and community benefits. 2. Sharing existing dormant assets The basic proposition of the sharing economy is that every under-utilised asset can be turned into use
It is an important part of the sharing economy ecosystem that it has achieved the kind of dynamics where assets, tools, systems needed,
Scaled sharing economy impact (more sectors, workers, localities, people, etc. 56 www. techshop. ws 57 http://en. wikipedia. org/wiki/Fab lab 66 Case analysis Social needs addressed and summary Five cases are analysed in the sharing
economy theme as summarised in Table 5. 1. Table 5. 1: Sharing economy cases: summary Focus area Case Social needs addressed Summary Exchanging time
and talent Athens Time Bank (EL) 58 Meeting all types of basic daily needs for people in poverty
and enable new social innovations in the context of the sharing or collaborative economy, where existing assets are shared (people's time,
Funding and actors All the sharing economy cases examined here are started and operated by civil organisations and/or volunteers,
Types and uses of ICT The types of ICT and its use varies across the three sharing economy focus areas,
as below. 7. Scaled sharing economy impact (more sectors, workers, localities, people, etc.)All cases are scaling,
This also encourages the take up other related issues, like public sector and business participation in the sharing economy, the impact of consumption on the immediate and the global environment, democracy, representation, social security benefits reform,
Important considerations when exchanging any assets in the sharing economy context are that much of the policy
when exchanging any assets in the sharing economy context are that much of the policy, legal and regulatory framework is not conducive to such bottom-up alternatives to providing services,
are summarised below as they relate to the sharing economy theme. An overview of all the main results of the analysis of the sharing economy cases is provided in Table 5. 2. 80 1. The role and use of ICT in social innovation In all cases,
ICT is essential but is deployed also alongside physical and traditional activities, and, particularly when there are many ICT illiterate members,
Important considerations when exchanging any assets in the sharing economy context are that much of the policy,
and this increasingly means in a created shared physical space. 3. Policy issues related to ICT in social innovation Given the nature of these sharing economy cases,
all six social innovation outcomes examined in the sharing economy theme, as well as several others, have been shown to be supported
despite the very broad ambit of the sharing economy movement, the basic underlying economic and social model based on access to assets rather than ownership of them,
All the sharing economy cases examined here are started and operated by civil organisations and/or volunteers,
and Europe has not yet) been able to convert sharing economy initiatives into large commercially successful companies,
and probably in most sharing economy context, is that objectives, participants, processes and outcomes need to be transparent and open to interrogation,
Indeed, in the sharing economy theme, from the evidence presented above, there seem to be three big enablers based on ICT.
-and-the-sharing-economy-shaping-themarket-in-2014-and-beyond-47488/#./#Uxzlmc4tbfo 83 Table 5. 2:
Sharing economy case analysis overview Focus area and SI outcomes ICT use Online platforms Commun-ities Networks Social innovation processes Barriers
The 21st Century classroom107 Strategic issues, trends and challenges Even as the economy and much of the rest of society are being transformed in countries around the world,
In addition, innovation, creativity and independent thinking is becoming more important than ever in our increasingly global economy.
1 february 2003), pp. 111-135 Economist Magazine (2012) A sense of place technology and geography, 27 october 2012 Eisenhardt, K. M. 1989) Building theories
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why success always starts with failure, Little, Brown, London. Harris K, Flouch H The Networked Neighbourhoods Group, The Online Neighbourhood Networks Study,
Europe's transition to the knowledge economy, In the future of the Information Society in Europe: Contributions to the Debate, Editors:
D8. 1reportdevelopmentofonlinenetworkingtools. 31052012. p df Millard, J. 2012) Social innovation in the age of the sharing economy:
. eu/images/documents/social. innovation. and. the. sharing. economy. workshop. report. 2012. fro m. tepsie. pdf Millard, J.,Nielsen, N c.,Thaarup, R
. and Byers, J. W. 2014) The Rise of the Sharing Economy: Estimating the Impact of Airbnb on the Hotel Industry, Boston University School of management, Research Paper Series No. 2013-16.
Other (specify) Sharing economy 9. Changed economic dynamic between common ownership (free-rider problem and over use) and private ownership (right to exclude others, hence threat of under-utilization) 10.
Scaled sharing economy impact actual or predicted (more sectors, groups, localities) 13. Other (specify) Health 6. Increase in health
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