Assessment of the Innovation Union flagship initiative
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1 Mid-term review of Europe 2020 Assessment of the Innovation Union flagship initiative Survey response The Convention of Scottish Local Authorities (COSLA), as the representative voice of all 32 Scottish Councils at national and international level, welcomes the opportunity to contribute to the Committee of the Regions mid-term assessment of the Europe 2020 strategy. COSLA s former nominated member at the CoR, Cllr Roger Knox, was appointed CoR rapporteur on Innovation Union and we used this as a platform to voice our concerns/gather information in a succession of meetings with the European Commission DG Research team who are preparing these proposals, the DG REGIO team on Smart Specialisation, MEP Rapporteur Judith Merkies, Scottish and UK Government desk officers and a cross section of key regional innovation networks including a discussion with EU and CoR members. The Opinion went through the EDUC Committee with only one abstention and was adopted at the CoR Plenary Session in July COSLA has the firm believe that Local Development should be seen as delivering Innovation successfully from the bottom up. It is clear that Local Authorities have a crucial role to play in turning Europe into a more competitive market for innovation and research, for instance through smart specialisation strategies and local clusters. Since 2007, the responsibility for local economic development and local regeneration has been transferred to Local Authorities. This ensures a better integration with other local public services such as planning, environmental health, consumer and trading standards. It also gives Local Authorities a significant role in enhancing their local economies. In 2010, the Scottish Local Authorities Economic Development Group (SLAED) estimated that Scottish Local Authorities had a total estimated annual spend of 214m. In Scotland, Community Planning Partnerships (which are statutory bodies made up by Councils and local public and private stakeholders) contribute to the development of local partnerships with the academia, business and voluntary sectors to encourage resource-pooling and synergies are key to bring ideas to the market. At the EU level, there needs to be greater recognition of the role played by Local Authorities in encouraging innovation, particularly among SMEs and in the downstream product development, and local business communities shall be supported in keeping with the overriding principle of EU Territorial Cohesion.
2 Contributor information 1 Name of sender: Contact details: (address, telephone, ) On behalf of: (name of local or regional authority) Type of organisation Country: Leonie Hertel COSLA The House of Municipalities and Regions Square de Meeus Brussels leonie@cosla.gov.uk Convention of Scottish Local Authorities City/Town/Municipality County/Province and/or regional authorities Other (please specify) Scotland (UK) Region Association of local Member of the EUROPE 2020 Monitoring Platform: Yes No 1 Privacy Statement: The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No 45/2001 (e.g. to access, rectify or delete your data), please contact the data controller at europe2020@cor.europa.eu. If necessary, you may also contact the CoR Data Protection Officer (data.protection@cor.europa.eu). You have the right of recourse to the European Data Protection Supervisor at any time ( Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.
3 1) What type of policy programmes/actions are being implemented in your city/region to support the policy goals of the Innovation Union? 1.1 Investing in R&D, innovation and ICT (own resources, public-private partnerships, other sources ) In 2013, the Highlands and Islands partnership project and The Rest of Scotland project have been launched as one of the measures to significantly improve broadband speeds across Scotland. These two projects amount to a 420m investment in the Scottish broadband infrastructure, led by the Scottish Government, with funding from Local Authorities, Department for Culture, Media and Sport - Broadband Delivery UK (BDUK) and match-funding from European Regional Development Fund (ERDF) under the Scottish Rural Development priority. Scottish Local Authorities contributed collectively with 90m to the joint project fund. As regards the deployment of fibre broadband to 75% of each Scottish Local Authority, it is anticipated that this deployment is likely to be completed in 2016/ Providing support to potential beneficiaries to access EU funds and participate in EU initiatives in the field of research and innovation 1.3 Encouraging the use of the results of research projects in innovative products and services Digital connections enable local businesses and individuals to take advantage of an open modern economy and to access services from a wide range of providers. Fast connections, high-quality applications and usage of ICT are therefore a key enabling tool to help Scotland s economy grow. It will also help address challenges resulting from an aging population and support a low carbon economy by enabling virtual clustering and better long-distance communications. Brief description:... In Scotland, Community Planning Partnerships (which are statutory bodies made up by Councils and local public and private stakeholders) contribute to the development of local partnerships with the academia, business and voluntary sectors to encourage resource-pooling and synergies are key to bring ideas to the market. One example for this collaboration are Knowledge
4 Transfer Partnerships that bring together public bodies, academia and private sector at the local level. 1.4 Removing barriers to innovation, such as expensive intellectual property rights and limited access to finance 1.5 Participating in one of the European Innovation Partnerships (e.g. Smart Cities and Communities; Active and Healthy Ageing) 1.6 Stimulating social innovation 1.7 Cooperation with international partners in the field of research and innovation 1.8 Encouraging innovation in the public sector Brief description:... If so, which one?... Scottish Local Authorities are working together to establish clever ways of providing high quality public services with reduced resources. Social innovation, particularly in the public sector is a key part of this discussion. In Scotland, Local Authorities together with the Scottish Government are following an innovative way to measure performance via Single Outcome Agreements (SOAs) jointly defined between the national and local level to deliver common outcomes, rather than outputs. Brief description:... In Scotland, Local Authorities together with the Scottish Government and other partners are taking forward the public service reform programme that aims at improving the way in which public services are managed and delivered. Scotland s Digital Future Delivery of Public Service, jointly introduced by COSLA and Scottish Government, is a key policy that contributes towards better service provision by providing a digital technology foundation for responsive public services. This will benefit service users and involve them more directly in service design and
5 improvement through the feedback and service use patterns provided by the digital technology, and allow for more joined-up working of organisations across sectors. At the same time, Local Authorities will be able to provide quality services at reduced cost and to tap on better efficiency. 2) One of the main aims of the Europe 2020 Strategy is to increase investments in R&D to 3% of EU GDP. This target is underpinned by several actions under Innovation Union. The latest Innovation Union Scoreboard of the European Commission, a progress monitoring tool, shows that there are big differences in the progress made towards this target across the EU. Which of the following challenges would you consider as the most urgent to address? Multiple answers possible Under-investment in the existing knowledge base (infrastructure, public research centres etc.); Poor access to finance for innovative start-ups; High costs of intellectual property rights (IPRs); Ineffective use of the innovation possibilities offered by public procurement; Fragmentation and costly duplication of projects and programmes; No strategic approach to innovation at national level; No real cooperation between research and industry, limited scale of bringing ideas to market; So-called "brain-drain" (best talents leaving Europe for opportunities elsewhere); Other (please specify) Scotland s economy is structurally dominated by micro- and small enterprises, which are lagging behind other parts of Europe in their innovation activities; out of 300,000 SMEs only are engaged in innovation activities (0.3%). In general, there is low expenditure on R&D, particularly among locally-owned businesses, low export-readiness and an increasing need in technical skills development. BOX 2 Regional Policy contributing to smart growth in Europe The Communication of the European Commission entitled "Regional Policy contributing to smart growth in Europe " [COM(2010) 553] sets out the role of regional policy in implementing the Europe 2020 strategy 3 in the area of smart growth and in particular the 2 3 COM(2010) 553, available online in all EU official langauges: COM (2010)2020 'Europe 2020: a strategy for smart sustainable and inclusive growth'.
6 flagship initiative Innovation Union. 4 The Communication calls on national and regional governments to develop smart specialisation strategies to maximise the impact of regional policy in combination with other EU policies. As a follow-up, in June 2011 the European Commission launched an online platform with a set of tools which can be used to optimise the development of local and regional smart strategies. The Smart Specialisation Platform (SPP) provides users with practical guidelines such as the latest news and events, as well as many other features. In the Communication document, the European Commission provides a nonexhausive list of ideas which regions could use to design their strategies: 1. Innovation clusters for regional growth Clusters provide a favourable environment for fostering competitiveness and driving innovation. Support for their development needs to be concentrated on areas of comparative advantage. 2. Innovation-friendly business environments for SMEs Regional and national authorities should support innovation-friendly business environments to assist SMEs, R&D-intensive ones especially, and the creation of new firms. 3. Lifelong learning in research and innovation Focusing school, vocational and higher education curricula on cross-sector skills such as creativity and entrepreneurship will help young people to develop their full potential for innovation. 4. Attractive regional research infrastructure and centres of competence National and regional authorities should consider, in particular, how EU regional policy can contribute to the 2015 objective of the Innovation Union flagship of completing or initiating 60% of the research infrastructure currently identified by the European Strategy Forum on Research Infrastructures (ESFRI) Creativity and cultural industries Cultural and creative industries, which flourish at local and regional level, are in a strategic position to link creativity and innovation. 6 They should be integrated into regional development strategies. 6. Digital Agenda With regard to the significance of ICT for the innovation system, Member States should consider how to better use the ERDF to accelerate achievement of the EU 2020 objectives for broadband access. 7. Public procurement Innovative public procurement means the public sector taking on the role and risks of a lead customer, while improving the quality of its services and productivity Please see also CoR Opinion on the Flagship Initiative 'Innovation Union' from 30 June 2011, which lists a similar list of priority actions, available in your language at: ESFRI website: COM(2010)183 Unlocking the potential of cultural and creative industries'.
7 3) In line with the Innovation Union flagship initiative and the additional Communication on "Regional Policy contributing to smart growth in Europe 2020" (see Box 2), local and regional authorities are encouraged to build smart specialisation strategies, as a condition for having access to EU Structural Funds available for investments in research and innovation. Does your region/city have a smart specialisation strategy? If you answered "yes" please describe briefly its main elements and the opportunities you have identified in your smart specialisation strategy, corresponding to the list in Box If you answered "no" please let us know whether your region/city was asked by your national government to initiate a smart specialisation strategy. 4) Innovation Union and the concept of smart specialisation encourage a better integration of cultural and creative industries in the overall economic development. Although they have a high innovation potential, they are not always included in strategies or projects. Are cultural and creative industries included in the economic development strategy and/or in the smart specialisation strategy of your city/region? If you answered "yes" please describe how How is the Innovation Union relevant to your city or region? 5) The Innovation Union contains 34 actions, which are listed with a detailed description on a dedicated platform: Innovation Union Information and Intelligence system (I3S) 7. All actions 7 Innovation Union Information and Intelligence system:
8 are grouped under 12 thematic headings and an additional one on monitoring progress. 8 In your opinion and from a regional perspective, please state in which of these chapters has the EU made the most significant progress, which ones have good prospects and in which ones has the EU not done enough. Significant progress Some progress and good prospects No visible progress, more effort needed Promoting excellence in education and skills development Delivering measures for the European Research Area to be completed by 2014 Focusing EU funding instruments on Innovation Union priorities Promoting the European Institute of Innovation and Technology (EIT) and its Knowledge and Innovation Communities (KICs) as a model of innovation governance in Europe Enhancing access to finance for innovative companies Creating a single innovation market Promoting openness and capitalising on Europe's creative potential Spreading the benefits of innovation across the EU Increasing social benefits Pooling forces to achieve breakthroughs: European Innovation Partnerships Leveraging our policies externally Reforming research and innovation systems Additional comments: ) Overall, what are the strong and weak points of the Innovation Union flagship initiative, as seen from your regional/local standpoint? COSLA welcomes the mid-term assessment of the Innovation Union flagship initiative and would like to emphasise that there needs to be greater recognition of the role played by Local 8 Please see the 2013 Innovation Union Scoreboard: and the 2012 Regional Progress Innovation Monitor:
9 Authorities in encouraging innovation, particularly among SMEs and in the downstream product development. 7) Would you recommend any specific changes to the Innovation Union flagship initiative, during the mid-term review of the Europe 2020 strategy in 2014? Are your country's policies relevant to your city or region? 8) Does your country's 2013 (current) National Reform Programme 9 (NRP) for Europe 2020 adequately respond to your regional/local needs in the policy areas covered by the Innovation Union flagship initiative (e.g. investments in R&D, bringing ideas to market, smart specialisation)? In 2010, the UK s average R&D intensity was at 1.8% of GDP below the EU average (2%). It has also decreased during the previous decade. In Scotland, the Gross Expenditure on Research and Development (GERD) as a percentage of GDP was 1.56% in It has increased since The UK does not have an NRP target for investment. In the Scottish NRP, the Scottish Government highlights the investment in research and innovation in the Government Economic Strategy, refers to Scotland's Digital Future: A Strategy for Scotland, including the public service section that has been worked on together with COSLA, and various policies promoting broadband, life sciences etc. It clearly acknowledges the role that Local Authorities play in delivering EU2020 objectives and in participating in EU projects (e.g. Interreg IVB). 9) Would you suggest any changes in your country's National Reform Programme for 2014 in the area of innovation? COSLA would like to emphasise the joint role that Local Authorities and the Scottish Government play in achieving the Europe 2020 targets. It is therefore crucial that the Scottish Government in drafting the NRP is working with COSLA on the Scottish submission to the UK NRP giving sufficient time for consultation. We welcome the good practice that has taken place in the past on consulting with COSLA on the Scottish NRP and we support a regular engagement on this in future. 9 All available here:
10 Policy and funding issues 10) Which of the sources of funding listed below are used to finance your actions under the Innovation Union flagship initiative? Are any other policy/financial instruments involved? Multiple answers possible FP7 (The Seventh Framework Programme for Research and Technological Development) Competitiveness and Innovation Framework Programme (CIP, ): Entrepreneurship and Innovation Programme (EIP) Intelligent Energy-Europe Programme European Regional Development Fund The Lifelong Learning Programme Others? Please specify:... 11) Are any of the actions you have undertaken to implement the Innovation Union flagship initiative (as stated in your answers to questions 1 and 2) carried out in partnership with different tiers of government? If so, please state (a) which administrative levels are involved and (b) which practical arrangements are taken to manage these actions jointly. Scottish Local Authorities work through an outcomes-based approach in a wider national framework which is jointly agreed by the Scottish Government and the Scottish Local Government. Single Outcome Agreements (SOAs) are intended to address common problems and establish mutual accountability among the Scottish Councils and the Scottish Government. Scottish Councils also work closely with their communities to improve their well-being through Community Planning Partnerships (CCPs). COSLA advocates that the EU should fully incorporate into its policy development and implementation process a multi-level governance approach. We believe that the Scottish model or Single Outcome Agreements (SOAs) agreed between the Scottish Local Government and the Scottish Government could be helpful in developing a European approach in similar areas of shared competences. 12) The policy goals under Innovation Union require an integrated, multi-sector approach. They can be achieved only if relevant stakeholders are also involved. Do you have a strategy for involving these various actors, such as the different research institutions, innovation centres, hi-tech companies (especially SMEs) and members of the public? If so, what kind of involvement have you pursued (e.g. information campaigns, dedicated events, PPPs)? Please explain.
11 Annex Good Practice Examples Featuring Scottish Local Authorities (if not provided above) Community Broadband Scotland As part of Scotland s Digital Future policy, Community Broadband Scotland (CBS) is a national policy that is delivered in collaboration with local authorities and local partners. It is designed as one-stop-shop service to provide rural communities with information and advice on finding broadband solutions for their areas and therefore supports communityled local development. A Seed Fund is available ( 5m) over three years to support these communities in getting their own broadband solutions off the ground. It focuses on supporting projects that have the potential to act as case studies; they can showcase technical solutions and business models which could be replicated across Scotland. Six projects for local broadband delivery have been awarded funding in the first round: - Ewes Valley (Dumfries and Galloway) - Tomintoul and Glenlivet (Moray) - Elvanfoot (South Lanarkshire) - Colonsay (Argyll and Bute) - Corgarft and Glenbuchat (Aberdeenshire) - Applecross (Highland) Community Broadband Scotland is a partnership between the Scottish Government, Scottish Enterprise, Highlands & Islands Enterprise, COSLA, Scottish Local Authorities Economic Development Group, Carnegie UK Trust, Cairngorms National Park Authority and Loch Lomond and Trossachs National Park Authority. East Renfrewshire: Telecare and Community Alarm service East Renfrewshire Council and the Community Health & Care Partnership (CHCP) provides a Telecare and Community Alarm service to approximately 1700 service users. Around 400 live in sheltered accommodation with hard wired smoke detection linked; via the warden call system, to Safety Net the Council s call monitoring centre. Of the remaining 1300, only 2.5% (approximately 30) had been provided with a radio linked smoke detector as part of their Telecare/Community Alarm package. This match funded, joint partnership initiative was devised to retrospectively fit every Telecare/ Community Alarm service user s home with the provision of a radio linked smoke detector ensuring potentially devastating fire accidents are detected at the earliest possible moment. The Service Level Agreement (SLA) which supports the partnership also makes
12 provision for joint staff training in the areas of fire safety in the home, Telecare awareness, and emergency call handling. One of the key elements of the initiative is not just that a gap in Service provision has been identified and addressed, but that the East Renfrewshire CHCP has made a commitment that all future Telecare installations include linked smoke detection as standard. COSLA Excellence Award Bronze Service Improvement and Innovation (2012) Edinburgh City Council: Open Innovation Project (Interreg IVB) In the framework of the Interreg IVB North West Europe Programme funded Open Innovation Project, Edinburgh City Council has brought together a partnership of local governments, universities, business support services and other public bodies from the UK, France, Germany, Ireland and Belgium. The Open Innovation Project aims to create jobs and new businesses by stimulating the application of collaborative open innovation models to co-create and develop new products and services. Project partners work on three themes: open communities (innovative solutions to societal challenges), open business (open innovation techniques and strategies for SMEs), open research (entrepreneurship and commercialisation in higher education sector). In Edinburgh, the Project has so far created 22 new jobs, 19 new business start-ups, 50 new products or services and has run 96 activities and events themed around open innovation. Events - Turing festival and Innovation Dublin: annual celebrations of digital culture, creativity and innovation - Citrus Saturday: an exciting opportunity for pupils from schools to be mentored by students from a local university and learn from the experience of setting up and running a lemonade stand, for the day this has successfully been run in London, Edinburgh, Somerset and Dublin - Research by Kassel University into the uses of Open Innovation across Europe - Student pitching competitions for new business ideas and solutions to real SME problems - Mentoring and training for SMEs including boot camps and master classes, encouraging collaboration with universities and the commercialisation of research. Website:
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