RISin the Danube: win-win opportunities

Bratislava, 16th May 2013

Mikel Landabaso Competence Center smart and sustainable growth DG Regional and Urban Policy

Regional Policy

Index: 1.Lessons learnt from past R&I support 2.Future European Structural and Investment Fund support for R&I 3.Research and Innovation Strategies for Smart Specialisation (RIS) in the Danube 4.Examples

2
Regional Policy

Planned investments of total ERDF and Cohesion Fund ( 271 billion): Unlocking Unlockinggrowth growthpotential potential by promoting research by promoting researchand and innovation in all regions: innovation in all regions:
Environment 86 billion for research and In less developed 86 billion for research and innovation, Transport regions, ERDF is the innovation,over over25% 25%of oftotal total cohesion policy budget: most important cohesion policy budget: Focus on R&I capacity-building but source of funding for - and Focus on R&I capacity-building but infrastructure: over 50 billion research and and infrastructure: over 50 billion - Entrepreneurship: over 8.3 billion innovation! - Entrepreneurship: over 8.3 billion - ICT capacities, research and take- up ICT capacities, research and take: over 13 billion up: over 13 billion Human capital for innovation: over Research/Innovation - 14.5 Human capital for innovation: over billion 14.5 billion
Information society Social infrastructure Energy Tourism Culture Institutional capacity
Regional Policy

Lessons learnt

R&I support in general:

Lack of interaction between levels of governance and departments Strategies without external perspective duplication Lack of or indifference to critical mass Measures only for R&I and capacity building, but not for demand stimulation / market access new forms of innov. Focus on fashionable themes / prestige projects Focus on industries and not on emerging sectors and services
Regional Policy

? t c a p m I

See: Regional Innovation Monitor www.rim-europa.eu

Concentration of ERDF investment to

maximise the impact
Research and Innovation SMEs competitiveness Energy efficiency and renewable energy

+ probably: ICT

6%

60%

20%

44%

Developed regions and transition regions

Less developed regions

Flexibility (different regions present different needs) Special arrangements for the previously convergence regions
Cohesion Regional Policy Policy

Thematic objectives
1. Research and innovation 2. Information and Communication Technologies 3. Competitiveness of Small and Medium-Sized Enterprises (SME) 4. Shift to a low-carbon economy 5. Climate change adaptation and risk management and prevention 6. Environmental protection and resource efficiency 7. Sustainable transport and disposal of congestion on major network infrastructure 8. Employment and support for labour mobility 9. Social inclusion and poverty reduction 10. Education, skills and lifelong learning 11. Increased institutional capacity and effectiveness of public administration Cohesion Regional
Policy Policy

Europe 2020

inclusive

sustainable

smart

Future Cohesion Policy: less budget! (eligibility simulation)

GDP/capita*
*index EU27=100

p n o r s n o p q r s t
Canarias Guyane Runion Guadeloupe/ Martinique Madeira Aores Malta

< 75% of EU average

75-90%

> 90%

European Council: 325 billion for 7 years:

3 categories of regions

bn F .3 bn C 4 6 1 66.4 Less developed regions + n .6 b 1 3 Transition regions n 5b . 9 More developed regions 4

t
Regional GDP figures: 2006-07-08 GNI figures: 2007-08-09 EuroGeographics Association for the administrative boundaries

Cohesion Regional Policy Policy

Future Cohesion Policy: less budget! (eligibility simulation)

GDP/capita*
*index EU27=100

p n o r s q

< 75% of EU average

75-90%

> 90%

3 categories of regions
Less developed regions Transition regions More developed regions

or f n llio tion, i b va 00 o 1 rt n a n i o m s 0 Up t ch and 0 1 es i r r g e a e v rese ering o n strat t io s t l a o s i b ial c e sp

n o p q r s t

Canarias Guyane Runion Guadeloupe/ Martinique Madeira Aores Malta

Regional GDP figures: 2006-07-08 GNI figures: 2007-08-09 EuroGeographics Association for the administrative boundaries

Cohesion Regional Policy Policy

Innovation Strategies for Smart Specialisation

An economic transformation agenda based on 4Cs: 1. (Tough) Choices and Critical mass : limited number of priorities on the basis of own strengths and international specialisation avoid duplication and fragmentation in European R&D Area 2. Competitive Advantage: mobilize talent by matching RTD + i capacities and business needs through an entrepreneurial discovery process 3. Clusters and Connectivity: develop world class clusters and provide arenas for related variety/cross-sectorial links internally in the region and externally, which drive specialised technological diversification match what you have with what the rest of the world has 4. Collaborative Leadership: efficient innovation systems as a collective endeavour based on public-private partnership (quadruple helix) experimental platform to give voice to un-usual suspects

Innovation can not be dictated but it can be cultivated (The Federal Government and the growth of Regional Innovation Clusters, J. Sallet et Al, 2009)

What does "specialisation" actually mean?

Not about specialisation in a narrow sense ("lock-in") It means avoiding duplication and fragmentation of effort with scarce public resources within the Union, thus helping in deepening the single market through "open" RIS and inter-regional connections across the EU. It means being selective and support the R&I activities that are relevant in view of existing conditions and assets (e.g. evidence based policy evaluation, sound SWOT,) and breaking away from established lobbies and rent-seekers.
Relevant in the sense of assessing how R&I can help transform the existing economic structure in order to face globalisation Relevant in the sense of selecting that R&I activities with the highest potential for knowledge spill-overs to irrigate large sections of the economy (related-variety)

It is neither "coffee for all" nor "picking winners from above". It is not about selecting firms or sectors but the R& (broad) I activities and/or generic technology(ies) that can help a regional economy diversify into higher value added markets, modernise/rejuvenate or exploit new/emerging economic activites.

To what does the RIS3 apply?

ERDF investment priority 1
1. Research, technological development and innovation: a) R&I infrastructure and capacity to develop excellence in R&I and promotion of centres of competence b) encouraging investment in R&I by enterprises, developing products and services, transfer of technology, social innovation, public service applications, stimulating demand, networking, clustering, open innovation, smart specialisation c) supporting research and applied technology, pilot lines, validation actions early products, advanced manufacturing capabilities, first production in key enabling technologies, diffusion of multipurpose technologies*.
*) ICT, photonics, nano- and bio-technologies, advanced materials, etc..
Regional Policy

How will the RIS3 conditionality fulfilment be checked?

Ex-ante conditionality Fulfilment criteria
[in red: Council proposals ]

1.2 (in addition, for research infrastructures) The existence of a multiannual plan for budgeting and prioritisation of investments

An indicative multi-annual plan for budgeting and prioritization of investments linked to EU priorities, and, where appropriate, the European Strategy Forum on Research Infrastructures - ESFRI has Regional adopted. been Policy

Opportunities for combining sources of funding: Articles 55(8), 60(2) and 87(2)(c)(v&vi)
Same project supported by different funds [Art.55(8), CP Gen.Reg.] possible for different expenditures items [ex-ante identification of expenditure items and assignment to one source could be discussed] Support outside of the programme area [Art.60(2), CP Gen.Reg.] possible up to 10% (at priority level) [1%-15%]: useful for enabling combined support from CP & H-2020 to partners in different countries. Support from different operational programmes Enhanced possibility to use CP in the framework of the arrangements for interregional and transnational actions in mainstream OP [Art. 87(2)(c)(v&vi) of proposed Gen.Reg.), on the basis of the opportunities offered by the provisions of the above mentioned Art. 55(8) and Art. 60(2).
[pm: Art. 87(2)(c)(v) concerns interregional and transnational actions and
Art.87(2)(c)(vi) concerns macro regional strategies and sea basin strategies]

Most EU regions are average to weak on innovation!

See: http://www.proinnoeurope.eu/page/regionalinnovation-scoreboard

CP support for Innovation: 4% in 89-93 7% in 94-99 11% in 00-06 25% in 07-13

Regional Policy

Smart specialisation and the Danube Strategy: reinforce each other

Addressing common challenges in 11 thematic Priority Areas Outputs: -Policy coordination -Concrete projects

Regional Policy

Emerging fields of Smart Specialisation

Mapping of regions' and MS intentions in terms of smart specialisation fields has started:
See: http://s3platform.jrc.ec.europa.eu/eyeris3;jsessionid=87skR80JmqXZLlWhxL8ZvyH9XYkGRTg62j 2k1YVkctXQR0tRyWgQ!1058177620!1362916436845

Cohesion Regional Policy Policy