Synopsis: Entrepreneurship:

information economy and the challenges of an ageing population. The Organisation provides a setting where governments can compare policy experiences,

AND POLICY ENVIRONMENT...23 Summary...30 DEVELOPMENT OF SPECIALISATION STRATEGIES: THE ROLE OF REGIONAL PROFILNG AND INDICATORS...

grasping the opportunities for smart specialisation...58 Lessons learned and conclusions for policy...58 Notes...

grasping the opportunities for smart specialisation...63 Lessons learned and conclusions for policy from the Nfh case...

grasping the opportunities for smart specialisation...68 Lessons earned and conclusions for policy...69 Notes...

grasping the opportunities for smart specialisation...75 Lessons learned and conclusions for policy...77 Notes...

grasping the opportunities for smart specialisation...80 Lessons learned and conclusions for policy...81 ANDALUSIA, SPAIN:

grasping the opportunities for smart specialisation...84 Lessons learned and conclusions for policy...84 EAST MARMARA, TURKEY:

grasping the opportunities for smart specialisation...88 Lessons learned and conclusions for policy...89 Notes...

Future development grasping the opportunities for smart specialisation...102 Lessons learned and conclusions for policy...

Future development grasping the opportunities for smart specialisation...107 Lessons learned and conclusions for policy...

OF A TRANSITIONAL ECONOMY...113 Regional, national and international policies that have been decisive for prioritisation of domains...

Key policy instruments and investments...114 Future development for smart specialisation...115 Lessons learned and conclusions for policy...

A KNOWLEDGE BASED ECONOMY...118 Regional, national and international policies that have been decisive for prioritisation of domains...

Future development grasping the opportunities for smart specialisation...130 Ambitions, strategic plans and tools and catalysts in the innovation ecosystem...

Box 1. 8. Empowerment of stakeholders in the designing of the smart specialisation strategies...35

were seen to spread public investments in knowledge and innovation †research, education, public support to business R&d, etc †thinly across technology research fields such as biotechnology, ICTS, and

encourage investment in domains that would â€oecomplement the country†s other productive assets to create

one way to lead their economies out of the crisis by leveraging regional dynamism in innovation

investments on particular activities in order to strengthen comparative advantage in existing or new areas †the conceptual and policy implications of smart specialisation are far more complex

development of comparative advantage and more broadly in driving economic growth; ii) policy intelligence for identifying domains of present or future comparative advantage and;

arrangements that give a pivotal role to regions, private stakeholders and entrepreneurs in the process of translating specialisation strategies into economic and social outcomes

passively or actively †this information (e g. through stakeholder consultations, public-private partnerships IPRS) will be key

raised concerns amongst economists and others inside and outside the EU policy circles (Pontikakis, D. et

Competition effects: Another important concern is the prescription for a policy-induced division of labour between leading

agriculture, may deepen interregional disparities though the reduction of competition and market/merit based selection.

Indeed, some â€oeduplication†is a side-effect of competition and may be beneficial from a societal point of view

Another concern that arises from the concentration of R&d investments is that of the â€oediminishing returns†to R&d

bottom-up and top down process in priority setting for public investments in knowledge. They also point

out that smart specialisation depends on good general framework policies (e g. competition, trade policy labour market policy and education and skills) and horizontal innovation policies (e g.

Concentration of public investments in R&d and knowledge on particular activities is crucial for regions/countries that are not leaders in any of the major science or technology domains.

specialisation context is about focusing knowledge investments on †activities††those †business functionsâ€

These †activities†(e g. goods or services) may be undertaken by a single firm or divided among different

economic activity where a country or region excels or has the potential to excel in the future. It empowers

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, but for front runner countries it can also mean developing new areas at the edge of the

and economic crisis, including the current euro debt crisis, the concept of smart specialisation has found an echo in the OECD discussions on

Indeed, the OECD has exhorted countries to â€oego structural†to make economies more competitive; to â€oego

of these goals by focusing on promoting structural change in the economy through investments in

strategies are based on targeting of public investments and top-down and bottom up initiatives are visible

Strategies for concentrating investments in knowledge-based assets on particular activities through an entrepreneurial-led process have also found fertile ground at the OECD as the result of a confluence of

and low demand and high public deficits. And innovation is seen thus a key to restart

growth and investment. General purpose technologies (GPTS) in particular are seen as way to revitalise existing industries and to stimulate innovation downstream including innovation in services (e g.

services for public health On the other hand, globalisation and advances in ICT allow firms to fragment their production in the

†activities†rather than specific industries (e g. assembly operations for China or business services for

At the same time, the crisis has exposed also the vulnerability of global value chains to demand and supply shocks and has forced also OECD governments to look more closely at where economic value is

created along global value chains, and whether knowledge spill overs can be captured locally by enhancing linkages between local and foreign actors.

innovation given the weight of agglomeration economies (OECD 2011. The smart specialisation approach responds to the need to better position regions/regional clusters in global value chains but also, for those

†entrepreneurial selection†of market opportunities (e g. to minimise failures and to avoid ill -informed policy decisions.

In practice, this means the promotion of entrepreneurship across the board. While successful companies will constitute the new specialisation of the country/region

workshops and interviews with regional stakeholders are also important in the priority setting and discovery process.

grasp future opportunities: the capacity to identify local strengths; the ability to align policy actions and to build critical mass;

channels for two-way communication and having skilled personnel in agencies and ministry (e g in Estonia, efforts are focused on engaging ministries and industry in the governance of the

innovation against the background of important changes in the structure of OECD economies. These economic changes are the result of both long-term and structural trends (e g. the diffusion of ICTS, the

systems but also of business R&d, the rise of services and of new global players in STI such as China and

public policies that spread public investments in knowledge and innovation †research, education, public support to business R&d, etc. thinly across technology research fields such as biotechnology, ICTS, and

governments should focus their knowledge investments in activities†not in sectors in per se †that reflect

of which EUR 65 billion are spent for innovation (the total investment for innovation in this period from

Smart specialisation is a industrial 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. It is a logical continuation in the process of deepening, diversifying and specialising of more general innovation strategies, taking into account

economies †as well as emerging economies-restart economic growth by leveraging innovation led/knowledge-based investments in regions

INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION 18 Â OECD 2013 therefore required to identify the key areas,

and competition failures but also opportunities to shift the direction of innovation towards global challenges; and to help build the policy tools for smart

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

and neoclassical spatial economics (Krugman and Venables Smart specialisation thus is very much an economic framework focussed on regions that aims to

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. Another important feature of the smart specialisation concept is that through policy interventions focused on releasing entrepreneurial forces,

But entrepreneurship in the knowledge economy recognises that value added is generated also outside sole ownership, in spillovers, in networks of complementarity and

allocating resources in an environment of structural change and uncertainty, risk, and information asymmetries •Activities, not sectors per se are the level for setting priority setting for knowledge

investments. While sectors still matter, the issue is not to target sectors but rather activities

benchmarks and criteria for success and failure are needed. Smart specialisation policies need to have measurable goals,

•outline measures to stimulate private RTD investment •build on a region's capabilities, competences, competitive advantages and potential for excellence

•foster stakeholder engagement and encourage governance innovation and experimentation •are based evidence and include sound monitoring and evaluation systems

capacities in the region (e g. local knowledge) that can lead to new economic opportunities. This new

The advances in ICT, the increase in human capital in public administrations and closer public-private interactions between industry and government at various stages and levels of

) Governments should create the necessary conditions, environment, dynamics and structures through which entrepreneurs and government learn about costs

and opportunities and engage in strategic coordination (Rodrik D.,2004. To illustrate, this could mean justifying public support for

â€oeexploring†the opportunities from applying GPT technologies to existing industries (e g. via demonstration projects, training

problem since it focuses on entrepreneurs and co-ordination of policy over a broad range of stakeholders

opportunities related to education, tourism, performance, guitar building, museum, recording, research or publishing This citizen and business driven initiative is the consequence of the severe impact of the crisis in Spain

brought to a collapse of the traditional business models, highly subsidised in the past: tourism, construction and industrial production

where public investment is located only where a consolidated project is already in place, following strictly a low cost philosophy.

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.

opportunities created, while the role of the public institutions is limited to provide support and cooperate in the creation

rationale for public policies to promote clusters through infrastructure and knowledge-based investments networking activities and training,

technologies (e g. information and communication technologies ICTS, biotechnology, nanotechnology Likewise, clusters should be grounded on technological fields with sufficient regional substance and a

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

or the demand side of the innovation activities from idea generation to market uptake. However, the concept seems to rely on the existence of some preconditions and

The idea or concept of â€oesmart specialisation†is based on long standing economic theories and empirical evidence and mobilises well tested policy instruments.

policy framework it aims to improve the allocation of public investment in R&d and innovation related

investments, in order to stimulate competitiveness, productivity and economic growth through entrepreneurial activities. Smart specialisation â€oestrategies†can be viewed as a mix of modern industrial

on the part of policy makers 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

ENVIRONMENT Although in many ways, the European union is a laboratory for the elaboration of smart specialisation

economic situation characterised by low economic demand, falling tax revenue, fiscal pressures related to the financing of health and pension systems and shrinking public budgets.

focused on a combination of structural reform policies-labour reform, competition policy, tax policy, etc and efforts to preserve investments in knowledge based assets such as education and innovation especially

in areas from where new drivers of growth may arise such as in green technologies and health

Preserving the margin for public investment in knowledge-based capital 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 second trend which has created a fertile ground for smart specialisation,

The economics of R&d location (indivisibility, strong spatial clustering of innovation activities) makes regional responses to R&d globalisation naturally

policies, even if national policies such as attractiveness policies can influence the investment and innovation strategies of global firms

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 technological

specialisations and revealing new economic opportunities in high-tech sectors, but also in traditional industries INNOVATION-DRIVEN GROWTH IN REGIONS:

and opportunities and engage in strategic coordination (Foray 2012; Hausmann and Rodrick 2003) and; 2) Co-ordination externalities:

opportunities may be restricted due to the high fixed costs and large-scale investments required by some projects, and in particular by the spillovers that are specific to knowledge driven investments.

Policy intervention is required to facilitate the coordination of investments and decisions of different entrepreneurs A second set of rationales for smart specialisation concern:

1) incentive problems that lead to underinvestment in the â€oediscovery processâ€; 2) The discovery of pertinent specialisation domains may

have a high social value (development of the region†s economy), but the entrepreneur who makes this

initial discovery will only be able to capture a very limited part of this social value because other

However, the coordination of investment decisions of different entrepreneurs and the coordination among many economic agents throughout the value chain are daunting tasks for policy

and commercial opportunities and constraints, product and process safety standards for domestic and export markets, and

services INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION Â OECD 2013 25

investments required by some projects Prevention of emerging trends for regional economic growth Coordination of investments and

decisions of different entrepreneurs Coordination among many economic agents throughout the value chain suppliers, producers

users, specialised services banks, basic research and training institutions Support to technologies which have scale or agglomeration

economies Cluster policies Technology banks Public-private partnerships Innovation-oriented procurement Sectoral platforms SME support organisations

not only market failure but also opportunities and goals of a society (e g. meeting social and global challenges like ageing and climate change.

health and the environment. Furthermore, the government is not only there to moderate framework conditions, it has an important role in own right by creating markets (low carbon) and as a procurer of

government goods and services (e g. infrastructure, health services. See box 3 Box 1. 3. Tackling societal challenges through smart specialisation

lower 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

and opportunities opening up within the Baltic sea Region and Nordic countries Source: OECD-TIP Case studies on Smart Specialisation

in an increasingly globalised economy. Over the past two decades, globalisation has increased specialisation by creating opportunities for outsourcing and the development of global value chains.

It is a fact that this has led to a shift away from low-skilled employment in OECD countries to high skill labour

high value added areas such information technology services While most government response to the ex-post distributional effects of globalisation-driven

specialisation arguably offers an opportunity to foster a dynamic economic process that accelerates structural change and as such attenuates the negative effects of technological change and globalisation on

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

dynamic and change over time (e g. human capital)( e g. OECD, 2011; Redding, 2002. World prices of natural

services) rather than specific industries (OECD, 2012. This supports why specialisation is no longer relevant in

services for India While specialisation is viewed often in terms of macroeconomic outcomes, it is important to recall that there is a

The quality of institutions such as government institutions (e g. rule of law, competition, security social institutions (labour-employer relations) also affect factor endowments

Broad policies such as investment in education and infrastructure, social policies and regulations in labour and product markets can play a role in shaping specialisation patterns by affecting comparative

characterised by increasing returns on knowledge investment (e g. automobile suppliers Technological attributes. Differences in technologies across regions/countries also shape specialisation patterns

Demand factors. It has been suggested that an expansion of an economy†scientific and technological capacity will not endow it the needed productive dynamism

unless there is an adequate demand for innovation by the business sector (Rodrik D.,2004. Furthermore, demand factors such as the level of human capital and income per capita of a

country†s trading partner create specific patterns of taste and, therefore, affect demand of goods (Linder, 1961

INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION Â OECD 2013 27 Economies of scale and product life cycles.

Imperfect competition, product market and labour market conditions can influence the degree of market integration Industrial policies (e g. taxes and subsidies) can also play a role in shaping the production structure, for good or

It is important to recall that in a global economy, changes in the factor endowments and in the 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 and relative prices across countries than changes

knowledge investments to take advantage of these technologies. While some regions are better in carrying out basic research or technological development of these technologies, others should focus on the use and

increase the absorptive capacity for these technologies such as providing consultancy services to SME to facilitate the adoption of specific technologies;

industries like information and communication technologies and telecommunications has been supported by the changes of the profiles of regional universities.

enterprises. In many cases, the large enterprises are interested in buying or licensing the technologies that

are developed further by the SMES INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION

recognised as a relevant level of innovation policies given the weight of agglomeration economies (e g. the

The survey results show that the prioritisation of public investments in R&d and innovation is more intense at regional than at national level.

In many EU countries, policies related to knowledge investments †from education research and innovation and industrial/sectoral policies are spread across many fields of intervention with a

Enterprise Territorial Maximise value and economic returns Improve the social being (linking economic, social and

the enterprise Differentiation of the activities/assets/servi ces offered by the region (e g. to attract

investments Different processes 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 economic activities with new or emerging activities e g. new line of productive activity)( diversification An entirely new domain

From this perspective, smart specialisation strategies offer an opportunity for economic transformation of regions based on strategies that link actions to objectives in order to

e g. to attract firms and/or foreign investments •Link economic goals with societal and environmental challenges (e g. the transition of the

•Ensure the commitment and involvement of all stakeholders †regional, national or supranational †in the designing of the strategy and consecution of its objectives.

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.

But restarting growth has also increased attention in countries about the need to preserve the margin for public investment in knowledge

-based capital, but doing so in a â€oesmart way†so that it contributes to productivity growth and

competitiveness. 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 technological change and globalisation. The rationale for smart specialisation

opportunities in high tech sectors but also in traditional industries INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION

and well positioned to mobilise other stakeholders and resources and to set the strategic framework for further actions.

and the present, being not able to grasp emerging opportunities for the future. The use of foresights exercises and diagnostic tools can be particularly useful to

respectful strategies in a broader context but also enhance communication between relevant actors on the basis of a comprehensive language

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.

stakeholders contribute to identify existing capabilities (e g. research capabilities) but also barriers (e g regulatory constrains or institutional problems) to allow these activities to flourish further (See box 1. 5

In Estonia, ICT companies have a very strong association of enterprises †Estonian Association of Information

aim to offer highly functional, reliable services and integrated solutions to various industrial sectors and countries based on the complementary experiences existing in the Estonian

This includes the creation of several world class e-and m-services for both public and private

Flanders developed a business plan for the FISCH initiative, involved the stakeholders from the wide business

community and built the †light structure†that was needed to raise funding from the Flemish government.

as a potential market opportunity. Utilising their existing know-how and competences these metal-mechanic companies engaged in intensive dialogue with the regional government,

regional panels, the national government gets engaged in intensive consultation with regional stakeholders, in order to detect emerging opportunities

but also bottlenecks and threats to push these opportunities further Source: OECD-TIP case-studies on smart specialisation

The universities dealing with economics, public policy and administration, and specific policy areas e g. industry, health, agriculture, environment and culture) can play a crucial role during the process of

designing the innovation strategies9 (EC-IPTS (2011 As companies are continuously redefining their strategies, regional governments and key stakeholders

should be ready to adjust their responses rapidly to the changing conditions (e g. strengthening the

collaboration between Universities and Business in curricula design and curricula deliver may ensure that graduates have the right skills

companies and clusters in industries like information and communication technologies, telecommunications and pharmaceuticals has been supported by the changes of the profiles of regional universities.

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.

They include grain market characteristics, environmental issues, government policy and regulatory requirements, R&d and delivery

and regional economies are increasingly interconnected. Governments may want to take the interregional and international dimension of the

business opportunities and to capitalise on synergies and complementarities with other regions. Here international organisations could serve as platforms to facilitate interregional and international interactions

across regional borders could bring new opportunities In Andalusia, its peripheral position raises both opportunities and challenges for cross-border collaboration.

Its close position to the Mediterranean area, as the European gate to Africa, is acknowledged as a unique position to

In Australia, the exposure of the grains industry to international competition ensures that innovation driven

economies lead the Grains Research and development Corporation to design its priorities to be compatible with other

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 strategies into

increase transparency on how stakeholders are selected, involved and, especially, what role empowerment) they are provided during the process (See Box 1. 8

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, the innovation system is to an important extent

on the contrary, relevant stakeholders of the automotive sector (Companies of the cluster of the automotive sector are acknowledged to enjoy a strong â€oecritical massâ€) are invited only with advisory capacity to the STI policy

†as necessaryâ€, to allow stakeholders to identify specific problems and generate policy recommendations that feed

After the meetings, the SCST †assigns†tasks to stakeholders for the implementation of the adopted decrees

established, counting more than 250 stakeholders. Agents from the business side, academics, and special interest groups and from the social partners, participated in the design and implementation of the â€oeinnovative Upper Austria

RTA), and the Revealed Comparative Advantage (RCA) for economic activities, are used to avoid biases and to

employees, number of newly established enterprises, Gross domestic product, and export data per economic sector For countries, sufficiently detailed, internationally comparable economic data is available from OECD (www. oecd

stakeholders and cannot be used directly for taking decisions, notably because they can hardly identify emerging

which can point to interesting opportunities for technology development and to gaps in the regional or national scientific profile

development in specific sectors, the availability of human capital for certain scientific, technological and economic areas, the presence of IT-infrastructure in specific sectors, etc.

STIE=Science, Technology, Innovation, Economy Source: ECOOM-Centre for Research & development Monitoring at Leuven University Additional limitations to data analyses arise

innovation, research and development commitments, complementary investments in related industries early stage market transactions as well as for interregional and international collaboration deserve more

powerful tool to develop a shared vision of the future among all stakeholders. Such an exercise may be a

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;

It can help to stimulate communication among key players and permits a quick first assessment of their status

the enterprise sector, the science/knowledge & creative sector, the government sector and the regional innovation system as a whole †covering interactions between all three sectors

The development of the information and technology communications (ICTS) has strongly facilitated the connectivity and communication within regions (and inter-regions.

In Poland and The netherlands, the prioritisation process involves citizens through web consultations Cross-regional governance structure:

studies of the renewal of the Finnish economy and innovation environment. The study represents pioneering work in

invitation †and empower the relevant stakeholders that have the potential to provide value added

all stakeholders INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION 40 Â OECD 2013

reviews, information channels of communication, staff exchanges and interagency joint programming OECD, 2012f. Some of these new challenges can be grouped as follows

communication and policy coordination across a higher number of different ministries and agencies (local, regional, national and supranational) and across a higher number of policy areas

e g. industrial, innovation, education, energy, transport and entrepreneurship •Growing STI governance at regional level:

This demands inter -regional co-operation between different authorities. It also brings new challenges to national

communication and commitments Governance for smart specialisation requires strategic capacities to grasp future opportunities, mainly

in order to: identify local strengths; to align policy actions and to build critical mass; to develop a

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) and the Regional Innovation

Strategies. The Tekes 2008 strategic focus area paper â€oepeople-Economy-Environment †Choices for building the

future†represented the main linkage between regional and national strategies. The paper was formulated through a

of change and current challenges of the Finnish economy and industries. In accordance, it presents eight national

opportunities for growth and competitiveness globally Cross-border collaboration: Brandenburg and Berlin (Germany) have developed a specific cross-regional

the aim to increase the competitiveness of the Finnish economy by: i) building a strong knowledge base network;

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

Communication fusion, IT fusion system, Robot application, New materials and nano-fusion, Biomedicine and medical devices, High value-added food industry;

healthcare, Global education services, Green financing, Contents and software and Meetings, Incentives Conventions and Events and tourism industry

Smart Mobility, Solar and energy in built environment, Smart Materials, Lifetec&health (including Homecare), Design Source:

communication with stakeholders for further strategic co-ordination and fine tune priorities setting. Some national governments, such as Finland and Australia, organise regional panels to detect direct needs and to

identify emerging opportunities at regional level. The results have a direct impact on national strategies

economies into more competitive, job-rich and sustainable ones Linking policy instruments to priorities Smart specialisation encourages an outcome-driven approach to policies.

objectives, connecting opportunities to assets, and policy instruments to priorities. The most common policy instruments used to support specialisation range from dedicated budgets, institutions, clusters

initiatives, strategic investment, venture capital, education and training. Nevertheless, in many countries and regions, there is no clear articulation of priorities (e g. stated in policy documents) and policy

i) improve the absorptive capacity of the socioeconomic stakeholders including public staff and SMES) and;

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, in order to support them •Educational programmes: updating the skills required by the increasingly cross-sectoral and

priorities, both for regions and countries (Figure 1. 2). The influence of stakeholders, either individually

•Using demand-side instruments, such as, public procurement policies oriented towards the promotion of innovation and the development of new markets:

•Developing mutual learning practices to provide policy makers opportunities to learn from good practice examples but also failures carried out by other governments

international experts and stakeholders to identify emerging issues and trends, Systemic Foresight Methodology). ) Fostering a structural transition from policymaking to cycles of policy

an economic policy concept •Developing monitoring and evaluation systems geared to smart specialisation. This is discussed

assess the relevance and effectiveness of their policies. 18 Clear benchmarks and criteria for success and failure are needed

It contains trend analysis, benchmark with national average and, where possible other European Innovation Regions (Regional Innovation Scoreboard top 20.

Governance for smart specialisation requires strategic capacities to grasp future opportunities. This includes: the capacity to identify local strengths;

http://ec. europa. eu/enterprise/sectors/ict/files/kets/hlg report final en. pdf; See also page 21 of this report

ii) providing advice and services to SMES; iii participating in schemes promoting the training and placement of high level graduates in innovative businesses;

hosting incubators for spin-offs in science and technology parks and; v) providing input to innovative clusters and

of Economics, Volume 106, Issue 1, 103-121  OECD 2013 53 Greenhalgh, C. and M. Rogers (2010), †Innovation, Intellectual Property and Economic Growth†Princeton

Economics, Volumen 72,2 Hausmann R. and B. Klinger,(2006a. †Structural Transformation and Patterns of Comparative

Hecht K. 2007), †Intelligent Policy Management in the IMS Frameworks†at Business models and Drivers

for next generation IMS services Lin, J. and H-J. Chang,(2009), â€oeshould Industrial Policy in Developing Countries Conform to

Knowledge-based capital driving investment and productivity in the 21st centuary. DSTI/IND (2012) 5

†International Review of Applied Economics, 26:2, 223 -239  OECD 2013 55 PART II †CASE STUDIES ON SMART

This amount included AUD 244 million of industry investment and AUD 207 million in Government

and researcher stakeholders involved, promotes research, development, innovation and extension of research findings. Priorities are driven industry,

efficiency and can result in more effective communication and uptake of the outcomes of R&d.

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.

benchmarks for innovation to ensure agriculture does not lag behind the national push to develop

products and services made possible through on -going R&d and innovation. The GRDC investment in R&d represents approximately a quarter of the total

investment in Australian R&d for grains21. Australian agriculture contributes on average approximately 3. 2%of Gross domestic product (GDP)( as measured between 1999-00 and 2005-06). 22 When all of the

value added activities occurring post farm, and all of the activities supporting farm production (inputs) are

industry to international competition ensures that innovation driven productivity growth is a consistent grower priority

and iii) the â€oegrowers Report††an overview of R&d investment in the pipeline. Growers participate in regional Annual General Meetings and elect panel representatives.

These themes guide investments and research topics over a five year period. Most investments are made

over multiple years, so only approximately one third of funds are available each year for new investments

The Australian Government†s guidance in regard to RDCS€ research focus comes via the national and rural

which provide an opportunity to clarify and reinforce the Government†s priorities The GRDC€ s mission also reflects the Australian Government†s national innovation priorities which

Communication and feedback is facilitated via state conferences, newsletters and surveys. 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

grasping the opportunities for smart specialisation In order to identify future priorities, GRDC: i) approaches investment using programme logic;

ii consults extensively with stakeholders, particularly growers; iii) maintains strong networks with researchers and these networks alert it to opportunities for world-leading research;

iv) monitors international developments in grains R&d and applies them locally when possible; vi) conducts periodic

situational analyses of its stakeholder industries; and v) commissions other agencies to study aspects of the

grains industry when required. In its 2012-17 Strategic plan the GRDC has identified six strategic themes

to focus investment and will deliver practice change on farm. These themes are grower centric, consistent

GRDC determines future priorities on the basis of maintaining a balanced portfolio of investments This balance not only relates to risk;

Australian grains ecosystem is connected across the Australian and global economies the GRDC designs its priorities to be compatible with other regional, national and international drivers such as:

iii) international competition; and iv) The Australian Government invests significant resources to increase food security in other countries as part of its aid budget.

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. They include: grain market characteristics environmental issues; government policy and regulatory requirements;

users take an active interest in the investments and the resultant research. GRDC capitalises on

model in sourcing R&d services allows GRDC to flexibly engage in multiple specialised fields of research as required by its priorities.

20 Australian Bureau of Statistics (2012) Agricultural Commodities. Available at www. abs. gov. au/ausstats/abs@.nsf/mf/7121.0

23 Australian Bureau of Statistics (2012) Agricultural Commodities. Available at www. abs. gov. au/ausstats/abs@.nsf/mf/7121.0

24 Australian Bureau of Agricultural and Resource Economics and Sciences (2012) Agricultural Commodities. March Quarter 2012.

potentially form a †new combination†and thus an opportunity for the Flemish ICT and pharmaceutical

to create economic value for the Flemish economy; and iii) to help Flanders to obtain a strong position in

research centre, during the course of the OECD-TIP exercises, a wider set of stakeholders †universities

The current strengths in research have been a result of years of investment in the strategic research centres

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. Whether there are opportunities for new start-ups or technology exploitation for existing Flemish companies is too early to say as the foreseen technological breakthroughs

are still very far from commercialisation. The involvement of the company sector in the mapping exercise

large enough to carry the burden of investment needed in future research and research infrastructure.

grasping the opportunities for smart specialisation The mapping exercise created enthusiasm shared by a wide set of stakeholders from research and

industry. Three cluster organisations that had worked previously not together (DSPVALLEY on embedded systems, Pharma. be the business network in the health industry and Flandersbio a cluster organisation for

positioned to mobilise other stakeholders and to set a strategic framework for further actions. In

mobilise other stakeholders. If there is little support from a variety of actors (e g. promoted by

and innovation support, adaptation of regulation, demand side policies, etc. In Flanders, the lack of a coherent approach to health care) innovations from various ministries is an example

with VITO, the public research institute for environment, energy and materials. It has taken the lead in

business models need to be attached closer to the needs of society as providers of solutions; and that ii) the

The Flemish government has endorsed the development of this cluster by investments that should lead to increased strategic decision-making

the benchmark average. Moreover, the alignment of the knowledge base in Flanders is not too high and

stakeholders High private expenditures on R&d Many †soft†innovation anchors training, skills etc Commitment to sustainability W

Economy policy and Science, Technology and Innovation (STI) policy. The topic of FISCH, sustainable chemistry, does fit Flanders†prioritisation policies very well.

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

grasping the opportunities for smart specialisation It is FISCH€ s ambition to further boost the transition towards sustainable chemistry by identifying and

stimulating opportunities and by brokering and catalysing co-operation. Therefore, FISCH took a number of crucial steps which are laid down in FISCH€ innovation agenda, its feasibility study and business plan

The Flanders strategic Innovation Agenda for sustainable chemistry was based on a wide variety of strategic exercises including:

i) questionnaires and interviews of the most important stakeholders on the  OECD 2013 69

stakeholder groups (large companies, small companies, societal stakeholders The further development of smart specialisation is characterised by the facilitation of a multi-actor

the shorter-term articulation of demands by members, FISCH develops roadmaps for the mid-term future

and matching between knowledge supplies and opportunities in the market Thirdly, within the context of this case study, a number of add-on exercises were developed that give

while Flanders†economy shows a clear specialisation in chemistry, the technological and scientific specialisation level is much lower:

publication activity in Flanders is not much above the average level of all OECD benchmark countries

opportunity for competitiveness and knowledge creation in the future. The government role in this case is one of facilitator rather than instigator of a new emerging domain

•Broad consultation and stakeholder involvement: have been crucial elements in the development of the strategy process.

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.

the issue of linking the regional strengths with international opportunities and value chains may have an interregional character,

Dutch economy, together with Seaport (Port of Rotterdam) and Airport (Schiphol Amsterdam. Brainport belongs to a select group of high performing high-tech clusters in Europe.

total R&d investment of EUR 2. 5 bn, of which more than 80 per cent private. Brainport accounts for about

provinces, most importantly in regional-economic policy, nature management and spatial planning Priority setting in the governance system

stakeholders together, acting as a catalyst and stimulator, in a project-based manner, and to shape

borne and backed by the stakeholders involved rather than by Brainport. Under the header of Brainport independent cooperatives have been established

chain), Capital D (design) en Brainport Health Innovation are important examples In 2010 Brainport developed, on request of the central government and parallel to the already existing

Brainport 2020, Top Economy and Smart Society is an ambitious regional vision, strategy and implementation programme for the

consultation with regional stakeholders. The ambition is to be among the top three top technology regions

Another main challenge is increasing public investment in the Brainport region. This especially applies to boosting public R&d expenditure

Key policy instruments and investments The most important innovation policy instrument, both in funding size and in popularity, is the

connectedness, collaboration and entrepreneurship, but also in terms of R&d and innovation performance as measured by patents and business R&d expenditure

grasping the opportunities for smart specialisation Challenges and opportunities Brainport 2020 identifies three †top clusters†and a number of †clusters in developmentâ€:

i) The top clusters are high tech systems, chemical engineering & chemistry, and lifetec (medical technology and

with the Aachen region, could also offer opportunities in further scaling up. Aachen is largely

opportunities based on Smart Specialisation offer new scope for intensifying cross-border collaboration further. The Lifetec and Health cluster is also in this respect a good example.

venture capital) have replaced existing subsidy instruments. Moreover, in the runner-up to the new programming period 2014-2020 current available

•Cross-borders opportunities: new smart specialisation programming offers a number of advantages for Brainport Eindhoven,

of which the opportunities to extend and strengthen cross -border collaboration in the wider ELAT region are perhaps the most eminent.

markets subject to globalisation and strong international competition. One of the challenges ahead is to translate the Brainport 2020 vision

These various stakeholders establish the key assets in the ecosystem that drive entrepreneurial discovery inside and outside of the cluster.

equipment services, management and marketing services, human resource development and technology transfer. Neighbouring research institutes also provide support to research and technology development

communication placed within the global supply chain. The current status of the cluster has been developed strategically in the past, enabling it to function well today between academia, government and industry

local stakeholders to reach a consensus to establish a new local economic development plan and strategies

the Ministry of Knowledge Economy programmes because it focuses on technology development and commercialisation. Currently, Gwangju cooperates with the neighbouring provinces of Jeonnam and

optical communications and LED technology. Within the optics sector, specific programmes were targeted based on market attractiveness and feasibility,

The LED sector focused on domestic demand because various sectors such as automotive and handheld devices have great potential for market expansion and local

Korea Photonics Technology Institute that provided a test system of photonics communication and leadership in optical communication and materials.

In the second phase, a full-fledged service system was designed to promote the two priority areas of optical communication and LED.

These areas extended infrastructure support to semiconductor light sources, optical precision and measurement that included technology centres for semiconductor light source pilot production, optical parts subsystem and reliability

and accreditation services locally. The foundation of future development of local clusters, the regional network of industry, universities and research institutes emerged through project implementation.

grasping the opportunities for smart specialisation Just as the past development of the photonics cluster was dependent on government intervention

prospects for future development are dependent on grasping opportunities for smart specialisation. The vision to make Gwangju a global top three cluster is laid out in Photonics 2020:

supply chains to increase demand, localize production of intermediate goods and internationalize R&d cooperation and marketing.

business services by capacity building and better coordination of service agencies  OECD 2013 81 When planning how to further develop,

and optical communication technologies. At the national level greater streamlining and coordination of institutions as well as capacity strengthening are needed

difficulties are shrinking domestic demand and weak local linkages. Further, local industry finds itself constrained by its small-firm size and low levels of technology;

•Multilevel coordination and mobilisation of stakeholders: Photonics was the first industry promoted by the central

-level governing mechanism to coordinate stakeholders and a consensus development process •The role of smart specialisation:

General Secretary of Universities, Andalusian Ministry of Economy, Innovation, Science and Employment Definition of the ecosystem and its boundaries

including incubators Engineering centre, Suppliers Village among other services The knowledge base stems from the School of Aeronautic Engineers and the rest of applied studies

from the Universities of Seville, Pablo de Olavide, Cádiz and Cà rdoba. There are nonetheless several other

identify potential project opportunities; iii) organising and holding the Committee for Entrepreneurial Action (CEA), a meeting point where the companies reunite every six months, dealing with central issues

Knowledge generated is made available to enterprises through these Knowledge Agents that have to be approved by the Central Government,

structure before the enterprises cooperate with them to carry out R&d projects financed by the Ministry of

i) Enterprises, managed by the Development Agency IDEA, include several incentives lines: for creation, modernisation, co-operation and R&d projects with special consideration to strategic

grasping the opportunities for smart specialisation The Strategic Plan†s main goal is â€oeto turn the Andalusian Aerospace into a competitive sector of

Knowledge & Innovation based economy and in one of the engines of development. †This way the Plan

•Entrepreneurship: Policy makers should take into account the entrepreneurial context of the sector when designing incentives •University and industry linkages:

The automotive sector has been the pioneering sector of the Turkish economy in terms of exports and R&di capabilities.

Small and Medium Size Enterprise Development Agency; Technology Development Foundation of Turkey etc.;lastly The Automotive technology Platform (OTEP

•Sophisticated demand structure •Strong Position in International Trade •Competitive subcontractors and suppliers

Opportunities •Increase in domestic demand •Newly emerging opportunities within the global markets and neighbouring countries

New Export Markets •Relatively low costs compared to the EU •Joint projects that suppliers are involved at

the very beginning; in design processes within the production chain •The ongoing studies dedicated to ensure

•Inconsistency of demand due to sudden and high increases in taxes rates •Noncompetitive support legislation compared to

energy efficiency and environment legislation •Enormous increases in raw materials •Negative Impacts of Revaluation of TL on

technological investment decisions Source: TUBITAK Â OECD 2013 87 Regional, national and international policies that have been decisive for prioritisation of domains

officials, 32 while other relevant stakeholders are invited to the meetings with advisory status. SCST is an

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.

technology platforms involving SCST permanent members and/or stakeholders. The 24th meeting of SCST for example, was realized on 7 august 2012;

other priority areas which allow adapted environment for a bottom-up and an entrepreneurial discovery of

grasping the opportunities for smart specialisation There is a strong political commitment to support the automotive cluster among policy makers from

Prepared under the coordination of the Ministry of Economy Turkey†s Export Strategy for 2023 aims

Environment, Energy and Resources; Safety; Design and Production Systems; Electrical Vehicles Special Research; Nano-technology in Automotive

Higher education, Undersecretaries of the Ministry of Development and the Ministry of Economy, Undersecretary of Treasury, Chairman of the Turkish Atomic energy Authority, President of TÃOEBÄ°TAK and a Vice president, General

The UK automotive sector is characterised by significant foreign direct investment and high exports equivalent to 12 per cent of the UK€ s exports of goods. Overall, automotive manufacturing provides

135,000 direct jobs and contributes some GBP 10 billion value-added to the United kingdom economy The United kingdom produces over one million cars annually,

services from concept design through to limited-series vehicle production. The sector is recognised internationally for its flexibility and responsiveness and for the innovative qualities of its engineers.

-emergences in response to the changing demands of its global market. The United kingdom is also

that there is a great deal of investment globally in low carbon technologies yet the market for the next

The UK automotive industry has reached a consensus as to how this opportunity can be seized and the challenges answered.

investment for the development and production of LCVS The NAIGT initiated three phases of work to achieve this

removing uncertainty about demand, and provides †early adopter†market insights to those who participate

infrastructure and environment in which the industry sat. After the Roadmap, a Common Research Agenda

The aim of the CRA was to map product technology demands to R&d needs. Research was

development and identified the activities that should be a focus for R&d investment and made strategic

Kingdom strengths and opportunities. 110 companies participated through a survey and workshops. United Kingdom†s main public R&d funding bodies were approached also for information on currently running

then carried out to give an initial indication of likely Return on Investment (Roi) levels across different

-making around prioritisation of United kingdom automotive technology investment Conclusions The lessons learned can be grouped as follows •The government as a facilitator:

•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.

the economy  OECD 2013 95 Notes 33 At the time, the department was known as the Department for Business enterprise and Regulatory Reform (BERR

and infrastructure investment. The strategy is implemented through three †Horizon Strategies†aimed at encouraging manufacturing to modernise

CSIRO is currently working with stakeholders around the design of this precinct  OECD 2013 97

ii) increased investment and new †leading businesses†attracted to the region and iii) high level support professionals moving into designated innovation hubs.

innovation environment that encourage businesses and researchers to explore new frontiers in science technology, and business operations and processes;

innovation capabilities of individual businesses and researchers by providing businesses with services directly related to securing a competitive edge;

environments that attract and retain businesses and create attractive and exciting places for people to learn

Stakeholder dialogue is the primary tool used by SEMIP to build specialisation in the region.

specialisation and identified growth opportunities Identified influencing factors across the innovation system that can impact on specialisation priorities

stakeholder participation in the development and sustainability of a region. Individual contacts and relationships form an important part of a regions economic fabric.

providing ongoing employment and creating an environment that allows workplace mobility and hence the possibility of open innovation and idea â€oecross fertilisationâ€

Key policy instruments and investments The main key policy instruments in the Lower Austrian policy mix can be divided into three groups

•Advices and services: Lower Austria implemented programmes (â€oesoft measuresâ€) providing services to support R&d&i activities of SMES.

Its innovation strategy focuses on the establishment and expansion of targeted industrial competencies. At the fore, there is the on

services of the Cluster managements, a funding scheme for technology projects and services of the Technopol managements,

or a funding scheme for R&d projects and services of the Technology and Innovation Partners

positive development of RTDI actors and R&d expenditures, partly due to the communication and consensus via RIS NÃ (Steering committee RIS NÃ

Future development grasping the opportunities for smart specialisation Current status of the specialisation and prioritisation in the region

customers, intermediaries and the Steering committee RIS NÃ, which supports the process Opportunities for cross-border and international ecosystem development

Lower Austria is in the lucky position to surround Vienna and has the possibility to take advantage of

Stakeholder and policy dialogues to achieve the ambitions In Lower Austria already in 1997, at the beginning of the Regional Innovation Strategy Lower

creation achieved by stakeholder and policy dialogues is implemented bottom up as well as top down Good examples for a top down process are meetings of the cluster advisory board, where topics e g

present a specific set of challenges and opportunities. The region tried to make the best of this

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

Investment policy and subsidies of the EU, Austria, and a regional government Priedl, I. 2011c:

Key policy instruments and investments Several features of Upper Austria†s innovation system and policy are of key importance from the

means of communication with experts and STI implementers and via ex-post evaluations Coordination activities to support S3

departments and directorates for â€oeregional planning, the economy and rural development†(department economic affairs) and â€oeeducation and society†(department Research and development and Education

innovation and economy â€oepromotion agenciesâ€, owned by majority by Upper Austria, have been organized under the common roof of the newly founded Upper Austrian Innovation Holding Gmbh.

Future development grasping the opportunities for smart specialisation Current status of the specialisation and prioritisation in the region

The regional economy of Upper Austria is characterized by its very strong industrial core. The strong

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. The active participation within the European union, the close cooperation with neighbouring and partner regions,

Stakeholder and policy dialogues to achieve the ambitions In Upper Austria knowledge creation achieved by stakeholder

and policy dialogs is implemented bottom up as well as top down. The strategic program â€oeinnovative Upper Austria 2010plus†is a nationally

economic sectors with significant weight or opportunities for improvement could be taken sufficiently early Lessons learned and conclusions for policy

mass on human capital in public) R&d and; iv) Growing gap of R&d HR resources, especially

Commission Communication †Europe 2020: a strategy for smart, sustainable and inclusive growth COM (2010) 2020,3 March 2010

+Foray, D.,P. David and B. Hall,(2009) â€oesmart Specialisation †The Concept†Knowledge Economists

Vienna University of Economics and Business, Institute for Regional Development and Environment INNOVATION-DRIVEN GROWTH IN REGIONS:

THE ROLE OF SMART SPECIALISATION 112 Â OECD 2013 TÃ dtling, F.,K. Skokan, P. Rumpel, M. Grillitsch, Ch.

CONDITIONS OF A TRANSITION ECONOMY Pavel Csank, Petr Chlã¡dek and David Uhlã Å, South Moravian Innovation Centre, Brno and Jiå Ã Blaå ek

Republic, 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,

and quality of innovation demand across the business sector. Local enterprises typically compete in market segments of standardized goods and services with high price elasticity and increasing competition from

countries with even lower production costs (e g. Romania, Turkey, or China. Despite this trend, most entrepreneurs do not have the ambition to reorient towards markets where higher-rank innovations are the

key to long-term success Second, from the evolutionary perspective, the innovation policy of the Czech republic, as a whole

manufacturing, R&d, strategic services etc..Since 2000, central authorities have adopted several strategic documents concerning innovation policy, including two National competitiveness strategies (2005,2011

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), while the

-sustainable exogenous development strategy aimed at creating jobs by attracting foreign direct investments FDI) to a more endogenous approach.

and as a means for utilizing the opportunity to channel EU Structural funds into innovation support

Both generations of RIS were focused primarily on supporting start-ups (incubators, financial services, consulting and the establishment of a centre for technology transfer.

The crucial essence of regional innovation policy has been the process of building a consensus about the region†s future.

stakeholders who trusted each other and both wish and were able to achieve common objectives; and ii) a

thematic working groups comprising 80 people from all three triple helix environments Based on an extensive survey results and on an expert assessment by working group leaders, four

ii) services for companies; iii) human resources; and iv) internationalisation. Strategic goals and activities were proposed for each priority axis

discussions with stakeholders about the results. A comprehensive external ex-post evaluation is planned to be conducted in 2015

Key policy instruments and investments The key instruments in the third generation of RIS in South Moravia include

•Services for companies: i) incubation programme-three business incubators with more than 7000 m2 office and laboratory space, micro-loan fund.

Each start-up has its own consultant, who  OECD 2013 115 can connect the new entrepreneurs with growing network of mentors and coaches either

services †most important the building up (incl. soft facilitation of cooperation) of the Centre of

The first two generations of RIS were mainly about the development of incubators and services for

economy within intricate global value chains. Research is global. It means that the best research

there is a growing demand among business people as well as economic development professionals for an elaborated national innovation strategy that covers the whole ecosystem

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.

Establishing a regional fund into which all stakeholders may be also various foundations and even engaged public) could put funds devoted to the

The key lessons learned might be helpful primarily for the regions from other transitional economies

economy •The perspective and therefore ambitions must be global: As science, technology and labour

and opportunities would have been lost. There have always been fundamental regional disparities in a variety of endogenous potential and development opportunities.

It is only local efforts what can initiate a process of change •Stakeholder†s mobilisation:

approach of regional stakeholders •Each region has its own way to find and utilize the potential for smart specialisation:

KNOWLEDGE BASED ECONOMY Marge Seppo and Urmas Varblane, University of Tartu, Estonia and Karin Jaanson, Ministry of

â€oeestonian Enterprise Policy 2007†2013â€, â€oedevelopment Plan for Estonian Adult education 2009-2013†and the â€oeestonian Information Society Development Plan until 2013â€

and creating an attractive environment for research and development, and technological innovation preference is given to R&d and innovation activities potentially creating high economic added value

encourage active participation by Estonian researchers and enterprises in international RDI cooperation Estonia has tried also to bring the key areas in line with the European Union†s RDI priorities.

Key policy instruments and investments For supporting and funding the priority areas the national programmes in the key areas were initiated

key technologies in other sectors of economy (particularly in traditional industry, energy sector, transport etc.)

) and socioeconomic fields (health care, life environment, etc..There are six national R&d programmes launched, including sub-measures:

innovation and entrepreneurship policy instruments (e g. R&d Financing Programme, SPINNO Programme, International Co-operation Networks, Technology Competence Centre Programme

Ministry of Economic Affairs and Communications (MEAC. There are some problems in engaging other ministries and industry in the governance of the national innovation system in Estonia more actively, but

information and communication technologies, biotechnologies, material technologies; ii) to solve socio -economic problems and to achieve socioeconomic objectives in the areas that are important for every

resident of Estonia, for instance in energy, national defence and security, health care and welfare services INNOVATION-DRIVEN GROWTH IN REGIONS:

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

cooperation and involvement of enterprises is thereat especially important Opportunities for cross-border and international ecosystem development

Countries of the size of Estonia cannot effectively address all societal challenges alone, mostly due to

This also means utilising the synergies and opportunities opening up within the Baltic sea Region and Nordic countries.

Stakeholder and policy dialogues to achieve the ambitions Estonian innovation policy is based based on broad collaboration led by the advisory Research and

Education and Research and Economic Affairs and Communications. In practice the main responsibility of strategy making, implementation and evaluation lies on the two ministries (MER and MEAC), while the

The connection between sector ministries, societal stakeholders and the core RDI system should be much stronger in the future.

of its economy. This is the result of the innovation system being focused on areas other than those that

dominate the Estonian economy today Scarcity of skilled human resources is currently and likely to remain a bottleneck for sustaining the

rapid growth of RDI in Estonia. Organic growth of resources is not enough in Estonia to respond to the

of a few larger enterprises. Industry representatives have highlighted the lack of educated and skilled workers being a challenge for growth,

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.

knowledge institutions and enterprises and not only on large R&d-collaboration projects with a limited number of enterprises

Lessons learned and conclusions for policy Lessons learned can be grouped as follows •National programmes for key technologies:

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 definitely increased in the future •Social challenges: It is highly likely that some key topics are of international relevance, such as

enterprises not having yet RDI activities. Furthermore, there is a need for employing a broader set of RDI policy instruments.

innovation, technology transfer, IPR acquisition and protection, entrepreneurship, as well as process and organisational innovation. Also innovation in the public sector should be encouraged

which is reflected directly in the small number of companies, lack of economies of scale or critical mass in many areas of research and in particular, is evident in the availability of

the overall aim to increase the competitiveness of the Finnish economy. This involved goals of building a

renewing the economy and creating new businesses; increasing productivity in industries and the service sector;

Key policy instruments and investments In the synchronization process, national and regional innovation policy goals were harmonized, and

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, and the Regional Innovation Strategies. The Tekes 2008 strategic focus area paper â€oepeople-Economy-Environment †Choices for building the future†represented the main linkage between

regional and national strategies. The strategy paper was formulated through a broad-based process with over 5000 contributors from different sectors and regions.

current challenges of the Finnish economy and industries. In accordance, it presents eight national (lead

the best opportunities for growth and competitiveness globally Coordination activities to support S3 Based on the Tekes strategy paper and a literature review on the theories on international trade and

versatile studies of the renewal of the Finnish economy and innovation environment. The study at hand

have provided, for example the opportunity to create an entirely new way of implementing university policy through networklike operating models which focus specifically on research transfer, a key factor to

expertise serving all industries and clusters, namely environment, design and practice-based innovation This model of thought enabled the collaboration of all the strategies, plans and bodies in the region.

promoting services, equipment and nutrition; iv) Timber built environments and scarce resources in housing; and iv) Design services

Figure 2. 8. National (Lead Market) Themes and Practices in 2008-2010 Source: Tekes Ambitions, strategic plans and tools and catalysts in the innovation ecosystem

Three thematic top expertise areas were selected by the bodies in Päijã¤t-Häme region as regional

are the environment, design and practice-based innovation. The regional bodies of Päijã¤t-Häme are

environment Intelligent systems and environments Interactive media Knowledge society for all Scarce resources Clean energy

Wellbeing and health Service business and service innovation  OECD 2013 127 Figure 2. 9. Framework of the national and regional platform

Opportunities for cross-border and international ecosystem development The Lahti region has developed specific innovation activities,

which is the leader in Finland in innovation environment research. The team has participated also in the

large multinational enterprises. In many cases, the large enterprises are interested in buying or licensing the

technologies that are developed further by the SMES Core practices for promoting and facilitating innovation activities in the region have been established

Clean tech/Environment †key organizational player†Lahti Science and Business Park INNOVATION-DRIVEN GROWTH IN REGIONS:

Stakeholder and policy dialogues to achieve the ambitions Interactions between government and cluster organisations (regional, national, international) are

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;

and iv) Industry individual companies, chamber of commerce Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery

innovation environment and increase international education and research cooperation Lessons earned and conclusions for policy

with the top three areas of expertise led to a novel innovation environment, that could, perhaps

nascent cluster structures is underpinned with a growth-and competition-oriented basis by innovation policy instruments.

In this sense the joint innovation strategy with its main objective of securing the capital region†s international competitiveness also falls in line with the â€oeeurope 2020 Strategy†as the Statesâ€

been discussed with the scientific community and the enterprises: during â€oehandlungsfeldkonferenzen†separate conferences dedicated to each sphere of activity),

Key policy instruments and investments The innobb approach concentrates on industries that are characterized by having a critical mass of

In addition to that there are extensive services offered by the cluster management organisations e g. support for scientists and new companies in networking, searching for partners, technology transfer

incubators, offering support for start-up companies through offices at favourable prices, know-how transfer, etc. Moreover there are venture capital funds managed by subsidiaries of the developments banks

of both Berlin and Brandenburg, which are crucial for providing seed finance for young innovative

Another initiative of both States is the common Business plan Competition. Thanks to know -how transfer, coaching, networking and competition,

the â€oeentrepreneurs to be†are supported through the transformation of their idea into a commercial concept

investment, patents, and new products, visibility on the national and international level Future development grasping the opportunities for smart specialisation

Current status of the specialisation and prioritisation in the region The current status of the specialisation and prioritisation in the region can be grouped as follows

services. The expansion of the cluster is to create new jobs by way of the continuous further

development, but also in the production and application of environment-friendly energy and  OECD 2013 131

The improved opportunities for system offers serve to enhance the competitive position of the cluster partners.

position in an international competition. A professional management will ultimately ensure that the cooperation and project structures within a cluster are expanded strategically,

Opportunities for cross-border and international ecosystem development Supporting the private and science sector of the capital region in the enhancement of their

Stakeholder and policy dialogues to achieve the ambitions Stakeholder†s involvements during the policy-making can be exemplified with the following figure

The availability of venture capital in the region is limited rather. In order to attract international VC investors Berlin-Brandenburg has to present itself as the open, vibrant and

academic institutions and enterprises gives the opportunity for sustainable growth. It seems to be useful for the development of the region to put special emphasizes on smaller but more numerous

new materials, environment and agriculture, society in sustainable socioeconomic development, safety and defence. The results of foresight projects have also been included in the Strategy for Innovation and

Efficiency of the Economy. Dynamic Poland 2020 The first regional foresight project (The technological foresight for sustainable development of the

economic growth, infrastructure, natural resources and new materials. The second regional foresight project (The Technology Perspective Krakã w-Maå opolska 202035) was carried out in

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

entrepreneurship (in line with RIS 3 Guide: Guide to Research and Innovation Strategies for Smart Specialisation (RIS 3

Key policy instruments and investments The key policy instruments implemented by the regional authority are

The funding is directed to investments in education infrastructure, lifelong education infrastructure as well as investments in infrastructure and

technology with a view to developing information society. The majority of the R&d projects financed under the Priority are in three fields:

which aims to direct investment-related support for SMES and strengthening of their institutional environment and support for commercialisation

of research. In particular the founding is directed to investments in industrial research performed by research units for entrepreneurs;

investment projects in the form of tangible assets provided for the purpose of conducting R&d works in enterprises;

innovative solutions by providing financial assistance to pre-competitive research in enterprises â'The Priority Axis 5 of the Programme,

which includes also support for activities involving the cooperation of research centres, in particular for the Maå opolska innovation centre;

and activities enhancing the cooperation among research centres, including the system of investment grants, aimed at supporting the development of the Maå opolska innovation centre

•The Special Economic zone in Krakã w (SEZ), which is managed by Technology Park Krakã w

SEZ is designed for all businesses from industry and services, but there are some preferences to companies from industries, mainly automotive or services like ICT, R&d, financial and

accounting services (BPO. The strategy of SEZ as well as Technology Park Krakã w is to focus

the activity on ICT industry. The two projects managed by Technology Park Krakã w, which are

Incubator (established in 2008) and the Maå opolska IT Park (the project will be finished in 2012

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 Maå opolska

monitors the state of Maå opolska economy; iii) Maå opolska Social policy Observatory which monitors and

activities of regional stakeholders (if any phenomenon occurs interesting or alarming it goes under separate

The regional economy has undergone many structural changes over the last 20 years, especially from low-tech manufacturing industries to medium-tech manufacturing industries and knowledge-based

services. The examples of the structural changes taking place in the Maå opolska Region are presented in

services (e g. EDF which took over electricity producers in Maå opolska and then located in Maå opolska the centre of common services

Radical foundation of new domains The emergence and growth of ICT industry Source: Marshal Office of the Maå opolska Region, MSHE

information and communication technologies (including multimedia), chemistry; ii) emphasis on three flagship undertakings: a) support for entrepreneurship of higher-education students and academics;

b common innovation bonds (new instrument encouraging to test ideas at early stage; c) systems for multi

Opportunities for cross-border and international ecosystem development The main drivers of cross-border and international ecosystem development include:

National Louis University and medium-sized enterprises predominantly from the regions of Maå opolska, Silesia and Mazovia.

Stakeholder and policy dialogues to achieve the ambitions One of the main goals of the regional authorities of the Maå opolska Region is to engage citizens

The goal of this approach is to involve stakeholders from a very early stage of

Stakeholders indicate the need to put more efforts on concentration of research and innovation priorities

increase the effectiveness of public support (support for a lower number of projects, stimulating demand

•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

challenging task including many stakeholders and active role of the regional authority. To define research and innovation priorities, the results of foresight activities could be used, 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 Maå opolska Regional Development Observatories, and

regional stakeholders, but it is also the area supported through the instruments implemented at European level (e g. the CC Polandplus Krakã w) and national level (e g. the National Research

Provincial Councils of Alava, Bizkaia and Gipuzkoa in fiscal policy with important roles in economic promotion and development.

both in terms of its implementation, strategic investments, as in their regular funding INNOVATION-DRIVEN GROWTH IN REGIONS:

investment by 2015, starting from 2. 02%in 2011. In terms of measuring outcomes and impacts of research

and iii) Indicators of investment in RDI. Country Indicators measure those aspects of the evolution of the

development was the creation of enterprises in sectors considered as key future areas in new technologies

continuity of the economic crisis may pose to the economic sustainability of the Basque Innovation System

The Basque Country faces a fundamental challenge to substantially increase its investment in innovation and, particularly, its investment in focused basic research.

It is imperative that every effort under public budgets is leveraged by structural reforms in the areas of education

discovery processes in an economy that lacks high levels of innovative assets to regions/nations with

-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, one of the key challenges for policy makers is how to make a balanced choice of

†smart†priorities, taking account of existing (economic) strengths, as well as being flexible and open to new opportunities.

In a considerable number of case studies public investments for R&d are still spread across a wide number of priority areas.

In less advanced regions the key challenge is to provide the right framework conditions to build capabilities that stimulate the entrepreneurial discovery process, 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

set in very broad terms (e g. green energy) needing further stakeholder involvement to define this more

cater for specific domains, challenges and opportunities. What is specific for smart specialisation is an

emphasis on entrepreneurship policies, on cluster support, including the facilitation of bottom-up strategy processes, within the broader policy mix.

Demand led policies for smart specialisation are used not widely in our set of case studies. In the case of the low carbon automotive sector in the United kingdom, the

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

The depth and effectiveness of this stakeholder involvement are more difficult to assess across all cases

social capital available in the regions. The self-organisation of clusters and other â€oeloose networksâ€, the

governments and stakeholders has shown to be very important in the dynamic cases Diagnostic tools to support smart specialisation

new stakeholders by disseminating the use of these tools, is as important to create broader support for a

easily accessible for stakeholders developing their joint strategies Open regions and cross-border activities The need to develop linkages with regions

economy/RIS. Precisely, measuring of impact then takes place at regional level, programme level and

•Stakeholder involvement and the combination of bottom-up and top down prioritisation processes appear to be a common pattern in studied regions.

-organisation and commitment from these stakeholders in order to scale this up from an individual â€oegood ideaâ€, to a novel direction with a potential to impact value chains and clusters.

entrepreneurial stakeholders and contribute to enhance evidence based policy making. There INNOVATION-DRIVEN GROWTH IN REGIONS:

A NIP is about stimulating innovation, competition and investment in know-how; it is not only about

sectors/enterprises via stimulating their participation in new, global value chains. It is not just about

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, management and knowledge resources.

activities in some targeted domains that offer present or future strengths for the regional economy.

across scientific, technological, innovative and economic activities both within regions and within global value chains INNOVATION-DRIVEN GROWTH IN REGIONS:

be required for a cost-benefit analysis is a nearly impossible task and one better left to investment markets

processes have a real potential to create new economic activities or to transform existing industries. This

and the sector structure of the economy on the other hand. Diagnosing apparent strengths, weaknesses, fits and misfits will allow policy makers

metrics, indicators and regular data collections, smart specialisation strategic opportunities will not be discernible and policy makers will be unable to track progress,

such as research and development commitments, complementary investments in related industries and early stage market transactions in addition to more traditional indicators such as patenting and publication

if the economics of smart specialisation is not to remain purely abstract, but is able to

& Environment and in Biology (see Table 3. 2). Unfortunately, the absolute publication numbers are too low to give any valid assessment on

benchmark value for the MOCR on the basis of journal†s impact factors. The expected number of citations

of the population and the economy, the size of its R&d and research community and the technological

the whole of patents in the USPTO system can serve as benchmark. However one can also chose to limit the benchmark group to a subset of countries or regions.

However, international databases on sectoral economic activity often aggregate many NACE or SIC codes into broad overarching sectors, such as †manufacturingâ€.

database contain many different sector-specific indicators for economic activity, including international trade, R&d expenditures, birth and death rates, High-Growth enterprises rates, turnover, value-added

production, operating surplus, employment, labour costs and investment. Benchmark data can be obtained by summing up sectoral data over all countries in these OECD database (or over a smaller group of

benchmark countries if desired. Also Eurostat publishes ample economic data on a sufficiently detailed sectoral level.

The limitation of Eurostat data compared to OECD data is that the benchmarking group pertains to the whole (or a selection) of European countries, making worldwide comparisons impossible

Unfortunately, on a regional level, it is difficult to find sufficiently detailed, internationally comparable economic data.

Equipment for Radio, TV and Communication. We see that the relative employment in Air Transport and

country or region with its RCA€ s for a specific technology-economy node, one can compare its

publication and patent data can point to opportunities in technology development. In particular, the use of

interesting opportunities for technology development and to gaps in the regional or national scientific profile.

research and development in specific sectors, the availability of human capital for certain scientific technological and economic areas, the presence of IT-infrastructure in specific sectors, etc

For the mapping of human capital, educational data, such as the number of students enrolled in

In order to assess whether these processes have a real potential to create new economic activities or to

commitments, complementary investments in related industries and early stage market transactions in addition to more traditional indicators such as patenting and publication levels.

research and development commitments, complementary investments in related industries and early stage market transactions, as well as for interregional and international collaborations deserve more attention in

reaching their intended goal of transforming economies towards more competitive, job-rich and sustainable ones?

power on national and regional economies The OECD-TIP enquiry on smart specialisation governance Goal of the governance enquiry within the TIP project

influence of various types of stakeholders in the selection process is highly context-dependent, hence

concentrated public investment process on a few selected fields, organized through the public funding of clusters and technopoles

Services Austria, Finland, South korea Maths and chemistry Austria Maths and engineering Upper Austria Optics Berlin&brandenburg, Noord

Brabant, Gwangju Chemicals Netherlands Flanders, Noord Brabant Water Netherlands, South korea Design Lahti, Noord Brabant Creative sector Netherlands Berlin&brandenburg

Heritage, cultural industries, tourism South korea Flanders, Malopolska, Andalucia Arts and humanities Austria Prioritization mostly targets broad domain level rather than specialized niches of competitive

environment, Smart Materials, Homecare Design Life science, biotech, biomedicine pharma, health Environmental technologies, energy Mobility, traffic, transport, logistics

Media Communication fusion IT fusion system Robot application New materials and nano-fusion Biomedicine and medical devices

Global education services Green financing Contents and software Meetings, Incentives, Conventions and Events and tourism industry

Services INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION 178 Â OECD 2013

innovation and economic policy independently of the federal level The alignment between national and regional priorities is fostered by a shared willingness from the

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

Internationalisation of economy Potential to cope with societal†Strategic autonomy Potential for additional employment Potential for higher added value

•Reorienting the economy towards a knowledge-driven economy, ensuring renewal of the productive fabric both through transformation of existing companies/sectors and through the

•Protecting the advances that the economy has in certain fields, extending those areas where the

Overall the emphasis seems to be more on building on existing strengths to transform the economy

and across that field and the economy The frequency of use and roles of advisory bodies, high-level expert groups, hearings and polls

Within the RDTI field Between RDTI and economy Advis body Strategic council Round tables Intermi

and European Social Fund) is used often as an opportunity to carry out SWOT assessments. Independent expert assessments are frequent too,

public investments have been focused on the specific niches identified in the strategy: smart mobility solar&energy in built environment;

smart materials; homecare; design. The targeted policy instruments used to support the identified domains span across a whole range of policy domains (R&d, education

•Strategic investment support •Dedicated venture capital INNOVATION-DRIVEN GROWTH IN REGIONS: THE ROLE OF SMART SPECIALISATION

 OECD 2013 187 •Dedicated education and training •Regulations adapted to the goals

Accordingly, it is estimated in this region that more than 50%of both regional R&d and economy budgets are dedicated to the priority areas

•Dedicated venture capital (more important in Lower Austria •Dedicated education and training •Regulations adapted to the goals (e g. green building

but little dedicated venture capital and education and training programmes. A number of programmes set the membership of regional cluster as a

dedicated education and training programme and also strategic investment support as a major tool from the economic policy domain.

But the estimation is that all those policy instruments only direct between 5%and 20%of total public R&d budgets,

The whole range of tools from both RDTI and economic policy domains are reported as being intensively used, 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

•Dedicated venture capital •Support to international platforms and collaboration And it is estimated that more than 50%of public funds is channelled to the priority areas, notably

economic policy. At regional level, in Gwangju, contrary to other regions in the sample, the use of policy

contains trend analysis, benchmark with national average and, where possible other European Innovation Regions (Regional Innovation Scoreboard top 20.

•Capitalising not only on the strength of existing assets but also on the future opportunities. This is

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 To define these niches, the Smart Specialisation concept proposes to establish an entrepreneurial

SWOT analyses, benchmarks, etc..The enquiry showed that indeed both sources are used for the definition of the priorities.

In the same vein, supporting these niches demands a synergetic approach from different fields of

policies (research, technology, innovation, industrial policy, environment policy, education and training etc.).) This will help to broaden the traditional, linear-oriented innovation policies with demand-side

instruments, such as public procurement policies oriented towards the promotion of innovation and the development of new markets, an especially relevant instrument in policies with a â€oetransformative†goal

•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 â€oefuture†or emerging areas of activities, because by definition those domains are organised less well

cases Structural Funds are the main funding sources for innovation and economic policies in the regions

adoption of a shared vision for the transformation of a regional economy towards a more competitive and

regions, and to mobilise the regional stakeholders for the process of strategy making. It helps regions to

develop their RIS3 Strategies by stimulating communication and permitting a quick first assessment of their status and potential that is needed to prepare a SWOT analysis as described in the European

the enterprise sector, the science/knowledge & creative sector, the government sector and the regional innovation system as a

•identifying existing strengths and opportunities for future development efforts •spotting remaining gaps and bottlenecks in the regional innovation system

assessment process and invite representatives from selected leading enterprises and lead institutions to go through the questions and report their results.

•Regional leading enterprises and entrepreneurs: The leading industrial players, Hidden Champions and key entrepreneurial innovators have the expertise on the market potential of new

specialisation addresses enterprises as drivers of innovation they should be invited to provide their insights and to share their perspective on the future regional innovation system

enterprise, research, education, finance, etc •Regional lead institutions: Representatives of the regional science, knowledge and creative

limited set of challenges and economic fields where investment could upgrade the whole region†s

Assessment of the status and potential of the enterprise sector •What are your regional key economic sectors and in

•Which leading enterprises (i e. large multinational firms and/or hidden champions and/or key

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) †which sectors are most open in that respect?

To which destinations do most exports go •Which economic sectors in your region are strong in R&d investment and technology

development? Where do they get their new scientific and technological knowledge? From regional universities or from international R&d partners

•Do local universities supply regional enterprises with ample graduates†or do regional employers need to look abroad for qualified personnel

•How do you assess the climate for entrepreneurship in your region? Is it easy in your region to

or do they rather prefer jobs in established enterprises or public sector? If not, what are the main barriers

vouchers, business services, access to laboratories, qualified personnel, and cooperation partners etc.)) offered correspond to your needs?

science fields are R&d investments, R&d personnel, publications, and patent applications concentrated)? ) Please name up to five.

regional investments from both public and private side in place to complement your own resources and attract co-funding

•Does current academic education fit to the needs of the regional economy †do regional

emergence of demand for innovations •Besides science or technology driven innovation, which other forms of innovation/economic

& creative sector interact with the regional economy (i e do you have industry-science co-operations in you region, privately endowed chairs at

What are the main opportunities/emerging sectors? How can the regional enterprise sector and the science/knowledge & creative sector be

mobilised to respond jointly to these challenges and opportunities •What are the main challenges your region is facing with respect to RTDI performance (i e. what

are the major bottlenecks for a better overall innovation performance? How can these bottlenecks be overcome by formulating

•Do perceptions of the enterprise sector and the science/knowledge & creative sector with regard

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, and threats for the development of a shared vision INNOVATION-DRIVEN GROWTH IN REGIONS:

THE ROLE OF SMART SPECIALISATION 200  OECD 2013 NOTES 38 Eurostat (2011), †Patent Statistics at Eurostat:

â€oethe 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 (or will be) based on bottom-up approach. Ministry of Economy prefers to talk

about lead markets or key technologies i e. identified in the project Insight 2030, rather than economic sectorsâ€

strategy and to encourage regions to reflect the future opportunities instead of their existing economic structure.

greater sales or margins and/or retain more customers than its competition. There can be many types

Programme for the Competitiveness of Enterprises and SMES 2014-2020 EAFRD: European Agricultural Fund for Rural Development

Leading Enterprise: A regional enterprise that is characterised either by a size well beyond the regional average and is being successfully active on international markets

or by being highly influential for the region†s innovative (creative) potential R&d: Research and development RTDI:

Weaknesses, Opportunities and Threats Triple Helix Model of Innovation: Academia, government, and industry constitute the three helices

smart specialisation in the current economic context and policy environment Economic and policy rationales for smart specialisation

grasping the opportunities for smart specialisation Lessons learned and conclusions for policy Notes Flanders, BELGIUM:

grasping the opportunities for smart specialisation Lessons learned and conclusions for policy from the Nfh case

grasping the opportunities for smart specialisation Lessons earned and conclusions for policy Notes Netherlands, Brainport Eindhoven:

Key policy instruments and investments Coordination activities to support smart specialisation Measuring the effects and impacts

grasping the opportunities for smart specialisation Challenges and opportunities Lessons learned and conclusions for policy

Notes Gwangju, KOREA: Photonics Cluster Definition of the ecosystem and its boundaries Key features of the cluster/domain

grasping the opportunities for smart specialisation Lessons learned and conclusions for policy Andalusia, SPAIN: the Andalusian Aerospace Cluster

grasping the opportunities for smart specialisation Lessons learned and conclusions for policy East Marmara, TURKEY:

grasping the opportunities for smart specialisation Lessons learned and conclusions for policy Notes The United kingdom:

Key policy instruments and investments Coordination activities to support S3 Measuring the effects and impacts

Future development grasping the opportunities for smart specialisation Current status of the specialisation and prioritisation in the region

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons learned and conclusions for policy

Key policy instruments and investments Coordination activities to support S3 Measuring the effects and impacts

Future development grasping the opportunities for smart specialisation Current status of the specialisation and prioritisation in the region

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons learned and conclusions for policy

Searching for a Smart Specialisation, Under the Conditions of a Transition Economy Regional, national and international policies that have been decisive for prioritization of domains

Key policy instruments and investments Future development for smart specialisation External challenges to the regional innovation system

Estonian research and innovation strategies †the roadmap towards a knowledge based economy Regional, national and international policies that have been decisive for prioritisation of domains

Key policy instruments and investments Coordination activities to support smart specialisation Measuring the effects and impacts

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons learned and conclusions for policy

Key policy instruments and investments Coordination activities to support S3 Measuring the effects and impacts

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons earned and conclusions for policy

Key policy instruments and investments Coordination activities to support S3 Measuring the effects and impacts

Future development grasping the opportunities for smart specialisation Current status of the specialisation and prioritisation in the region

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons learned and conclusions for policy

Key policy instruments and investments Coordination activities to support smart specialisation Measuring the effects and impacts

Opportunities for cross-border and international ecosystem development Stakeholder and policy dialogues to achieve the ambitions

Bottlenecks and threats for the innovation ecosystem that hamper entrepreneurial discovery Lessons learned and conclusions for policy

Assessment of the status and potential of the enterprise sector Assessment of the status and potential of the science/knowledge and creative industries sectors

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