Smart Specialisation Strategies & Voucher experiences Prague, 17 June 2013 Jean Severijns
INNOVATION STRATEGIES FOR SMART SPECIALISATION RIS³ Innovation driven development strategy Each region s strength and competitive advantage Specialising in a smart way Entrepreneurial discovery An economic transformation agenda based on 4Cs: (Tough) Choices: select few priorities on the basis of international specialisation and integration on international value chains avoid duplication and fragmentation in ERA Competitive (Constructed) Advantage: mobilize talent by matching RTD + i and business needs & capacities entrepreneurial discovery process Critical Mass/Clusters: develop world class excellence clusters and provide arenas for related variety/cross-sectorial links which drive specialised technological diversification Collaborative Leadership: efficient innovation systems as a collective endeavour based on public-private partnership (quadruple helix) experimental platform give voice to un-
Policy Delivery Instruments Internationalisation Entrepreneurship and incubation Connecting Universities Social Innovation Clusters Green Growth Financial engineering Skills SMEs Support Cultural and creative industries Digital agenda Research infrastructures Key Enabling Technologies Innovation PP ----------------------------------------------------------------------------------------------------------------------------- Methodological support Smart Specialisation GUIDE CP Regulations 2013-20 Policy Rationale (COM) The contribution of Regional Policy to smart Growth (COM) The contribution of Regional Policy to sustainable Growth Innovation Union Flagship Innovation Union self-assessment tool Regional Innovation Monitor OECD 2011 Regions and Innovation Policy IRE-RIS Guide Directory No-Nonsense to build S 3 Diagnostic Systèmes d Innovation (Praguer) Economic Rationale Knowledge for Growth FWP Evaluation Endogenous Growth Innovation Systems Innovative milieux Evolutionary Economics Policy Experimentation RIS-RITTs 1994-2004 Competitive Advantage M-Porter Industrial districts 3
Innovation from an entrepreneurial perspective
by Henry Chesbrough
Europe 2020 (2014-2020) Regional Innovation Strategy for Smart Specialisation (S3) Europe National (NL) Regional North Research: Horizon 2020 Cohesion funds East West Innovation contract South (including Limburg) Financing Innovation S3 South Partnership contract Operational Programs incl. S3 For the Netherlands
S3 on sub-regional-level National priorities Brainport 2020 area South eastern part of the Netherlands *Extended approach to south west (S3) *In every sub-region a triple helix struct
S3 South (ern part of the Netherlands)
S3 for the Southern part of the Netherlands Challenges Innovative chances Support mechanism Methods National Topclusters with international potentials International top clusters
Henri ter Hofte, Novay, Enschede, The Netherlands Mapping Innovation Methodologies
KNOWLEDGE ECONOMY
OPEN CHEMELOT CAMPUS Economic growth engine for South Limburg Triple helix with Province and University Chemelot Industrial Park Chemelot Campus DSM Innovation Center Staff Corporate Technology Management Intellectual Property Business Incubator EBA Biomedical Materials EBA Personalized Nutrition Licensing Venturing EBA Specialty Packaging EBA White Biotechnology ENABLERS BUSINESS CREATION DSM Innovation Center
GCS Cross-border product development I-Cane diagnostics Streetscooter: Brains Unlimited Sittard Geleen Imaging My Diagnostick Maastricht AMIBM Aachen
Topsector Agro&Food The Dutch growth diamond Example
Higher added value: innovation focus op health, sustainability, taste and ease The consumer wants: Primary production Manufactori ng Distribution Retail/Caterin g Examples value creation over the value chain: Improved, healthier crops Animal welfare Functional ingredients, less salt and saturated fat Optimalisation of resource use Hygienic distribution of fresh products Minimise CO2 emissions Healthy cooking Sustainable packaging and cooling 1 2 Healthy food Sustainable food Breeding on taste Optimal processing to keep flavour and taste Packaging for optimal fresh keeping Improved methods of preparation 3 Tasty food Production of longer tenable products Pre cut products Frequent delivery Improved portioning ease 4 Easy food
Floriade 2012 Limburg-NRW (40 hectares)
Agro-food Agro logistics Businessprogramming Floriade themes: (meaning:connecting Smart thema agro food/logistics with dimensions in other fields Sustainability Nutrition Colour Health Taste Transport
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BiElAt foundation: Business Community + Universities
Part 2
Efficiency Improve existing business, am I doing things right Support/innovation scheme in two directions Vouchers Am I in the right business, am I doing the right things? Strategic Innovation J.M.J. Severijns Effectiveness
BARRIERS KNOWLEDGE TRANSFER SME S Alibi s SME s: No time No money Not the right people False shame You cannot help me, I know everything myself I do everything on my own, internal orientation No R&D strategy Cannot find knowledge supplier Cannot organise it! (valley of death)
?!? Supply Support/ Intermediary organisations Demand JMJ Severijns
Voucher scheme: From: Supply knowhow (SME) Companies Who buys my Know-how? To: Supply knowhow Who solves my problem? (SME) companies
1996 RTP Limburg, first in Europe Increase knowledge within SME s by improving knowledge transfer mechanism in a structured way. Goals: *Create/structure awareness *Solve problems and identify/implement chances *Create added value (products, processes, turnover) *Let SME s get used to the use of external knowledge *Provide conditions for SME s to continue relation after subsidised projects *Accelerate learning curve of suppliers *Experiment with Multinational(s) instead of only Universities (specific for Limburg at that time) Conditions: *Design a simple system, especially on behalf of the SME s *Start with existing knowledge sources in the region *Business to business approach (specific for Limburg at that time) *Decrease barrier on the demand side *Organise the supply side on source level *Prove sustainability
LIMBURG S VOUCHER SCHEME Conditions: Maximum of 2654 euros and 3 research days at DSM Valid for four weeks Neither transferrable nor payable No physical/chemical analyses A question/problem in writing Written report produced by DSM within six months Based on existing knowledge Obligation to help in evaluation 38
Explicitly excluded in pilot stage to use money for: a) Financing general advice b) Simple scans, brainstorm sessions and creativity sessions, teambuilding sessions and general strategy sessions, business management in general. c) Hiring external capacity d) Hiring students e) Paying for internships. f) Training and courses g) Physical and chemical analysis h) Hard and software i) Sales and marketing activities. Because otherwise it is more a kind of subsidy!!
Problem definition Supply region Gate keeper Problem solving Business support structure 1. Search companies 2. Brainstorm 3. Problem definition SME needs JMJ Severijns Problem solving
RESEARCH VOUCHER LIOF s ( important) Role: Distribution of Vouchers Acquisition and Selection of SME s (Latent-manifest issue) Support in articulation of needs!!! Acquisition of knowledge suppliers Brokering between demand and supply of expertise Facilitating knowledge transfer!! Monitoring process Providing follow-up...
Problem/opportunity Is manifest Problem/opportunity Is latent There is a need for Articulation of the question
Results: Instrument level: *Tool is simple but strong and effective *Minimal bureaucracy *Strong catalyst for creating awareness *Lowers threshold for hiring external expertise *Demand pull is excellent starting point * Company helps company is (also) perfect match *Cost effective *Vehicle for cross border cooperation *40% of SME s follow-up payed by themselves *Role Companies as knowledge providers and knowledge actors *Voucher is not (only) a subsidy instrument *No competition with other instruments, it is extra, combined with other instruments makes it more effective.
Knowledge voucher South Netherlands 2001-2004 De Schelde Heerema Akzo Nobel Cosun-food Nova chem. CCM Diosinth PD&E Automotive Eldim Philips-CFT Sergem DSM
Benelux Middle Area demand for vouchers
Brno voucher scheme Included Product / process / service development Testing and measurements Feasibility studies Prototyping Product design Business plan for an innovative product Economic impact assessment Market analysis / Marketing strategy Innovation / technological audit New business model development Excluded standard training courses; software purchases; advertising materials - design and production (including website development); standard services (e.g. auditing, accounting, sales activities, etc.); legal services; grant consulting; internships for students aid that would promote/subsidise the cost of exports material purchases (excl. Material necessary for delivery of the service).
Your benefits! TTC GCS
ENABLING INNOVATION PROJECTS Benefit from early-stage money! TTC offers innovation vouchers for the very early stage of your cross-border consortia to verify & stimulate feasibility of a joint cross-border innovation project Granting free research / advice from a knowledge provider within Greater EMR area up to an amount of 5.000,-- per business case (non-repayable grant) Eligible activities: Industrial research & experimental development (e.g. feasibility study, patent research, use of laboratories & state-of-the-art-equipment or prototyping & testing)
Figure 2 Innovation grant vs. company's contribution 30000 25000 25000 24000 20000 18000 15000 13300 13333 15000 10000 5000 0 500 7500 7000 6000 5000 5000 6000 4000 5000 5000 5000 2500 3000 3200 3310 3640 2500 9400 10000 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Wallonia Portugal SME's contribution Innovation grant Voucher as a tool for stimulation versus voucher as a subsidy instrument!
Considerations: national/regional schemes Wat is your goal, when is your scheme a success? # Only awareness raising (give away small voucher, hardly problem definition) first contact to knowledge provider or problem solving + possibility next contracts + awareness-plus (consequences for level of support in problem definition) # Political goal: fits into policy-lines: target group, sectors, # Improving support and-or research infrastructure? # more competitive companies, increase competitiveness regio? Problem/opportunity identification by regional/local or national stakeholders on behalf SMEs # This is very important activity/stage. Wrong definition: wrong and frustrating process. Problem behind problem # Trust is the key issue here because: serious questions are related to core business issues + do not waste my time. # same language, culture, knowledge local, regional, or national circumstances. Offering additional support package by support unit (intermediaries, consultants) # Condition: adequate qualified people related to topic (engineers for technology issues for instance) # what type of services/products like research oriented or export promotion or training or internships for instance (conditionality's of the vouchers)
Intermediary structure: # important as buddy "for the SME entrepreneur # intermediary structure in place, local, regional. National? # existing policy, contacts to individual SME s # contacts to knowledge providers, overview of knowledge offer Suppliers: - Universities - (Big) companies incl. SME s - Research institutes - (Specialised consultants) # Can intermediary make its own policy or in cooperation with others (governments for instance) # How is the intermediary organisation financed, do they have to earn own income? # Voucher is only one of many/several schemes of intermediary organisation, one element in toolbox.
Only start an institutionalised cross border scheme when national conditions and/or national schemes are in place at least partially Identify and define starting point every singe participating region/country in terms of: # target group, # type of supported services, # what will not be supported, # who will supply knowledge/services # financial aspects, voucher, financing overhead and interface SME-Knowledge supplier, willingness money transfer cross border
Identification problem solver # responsibility region(al) stakeholders primarily Suppliers: - Universities - (Big) companies incl. SME s - Research institutes - (Specialised consultants) # Who investigates institutions and persons that are capable and willing to solve problems for third parties? * intermediaries * consultants * governmental organisations * SME s themselves # Gatekeepers in large organisations gatekeepers SME Inter m. Knowledge suppliers
Thank you for your attention! jmj.severijns@prvlimburg.nl +31-650214029