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R&I Strategies for Smart Specialisation: Political context and preparation for 2014 -2020 Structural Funds R&I Strategies for Smart Specialisation: Political context and preparation for 2014 -2020 Structural Funds programmes Katja Reppel Head of Innovation Sector Unit 'Thematic Coordination and Innovation' DG Regional Policy Cohesion Policy

Overview: Research and Innovation Strategies for Smart Specialisation (RIS 3): 1. What? 2. Why? Overview: Research and Innovation Strategies for Smart Specialisation (RIS 3): 1. What? 2. Why? 3. When? 4. Who? Cohesion Policy

Innovation & Greece … Everybody knows: Pythagoras …mathematics Hypocrates … medicine Archimedes … lever, Innovation & Greece … Everybody knows: Pythagoras …mathematics Hypocrates … medicine Archimedes … lever, density/gravity, water screw + Google: … … … … anchor (Eupalamas) maps (Anaximander) steam machine (Heron) water mills alarm clock (Ctesibius) analogue computer (Antikythera mechanism) Cohesion Policy

Innovation & Greece … …. But also: Corallia technology hub … Innovation clusters in Innovation & Greece … …. But also: Corallia technology hub … Innovation clusters in knowledge-intensive, exportoriented technology sectors … "innovation made in Greece" brand … Autonomous, environment-friendly desalination platform … wind & photovoltaic powered, drinking water for 300 people, pay-back time: 3 years … University of the Aegean + interregional consortium Cohesion Policy

What is Smart Specialisation? = fact-based: all assets + capabilities + = differentiation: focus What is Smart Specialisation? = fact-based: all assets + capabilities + = differentiation: focus on competitive advantages, potential for excellence, bottlenecks in a region, incl. external perspective, cooperation potential, emerging opportunities, market niches global value chains = concentration of resources on = no top-down decision but dynamic priorities, problems and core needs, entrepreneurial discovery process for critical mass/critical potential uniting key stakeholders around shared vision = synergies across different departments and governance levels (EU-national= all forms of innovation, not only regional); cross-sector/technology-driven, existing / new links knowledge = ecosystem approach: creating = place-based economic environment for change, efficiency of transformation: rejuvenate traditional institutions sectors through higher-value activities Cohesion Policy

Why should Member States / regions develop Why should Member States / regions develop "R&I Strategies for Smart Specialisation"? Cohesion Policy

Summary Innovation Performance of the EU 27 Member States (2011 Summary Innovation Index) Note: Summary Innovation Performance of the EU 27 Member States (2011 Summary Innovation Index) Note: The Summary Innovation Index (SII) is a composite of 25 indicators normalised to a lowest possible performance of 0 to a maximum possible performance of 1. The 2011 SII reflects actual performance in 2010/2009. (Extended benchmark including associated and candidate countries).

Regional Innovation Scoreboard (2009) See: http: //www. proinnoeurope. eu/page/regionalinnovation-scoreboard Regional Innovation Scoreboard (2009) See: http: //www. proinnoeurope. eu/page/regionalinnovation-scoreboard

Cohesion Policy 2007 -2013: Problems: € 86 Bln for innovation t? c a p Cohesion Policy 2007 -2013: Problems: € 86 Bln for innovation t? c a p m I Cohesion Policy • 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 See: Regional Innovation Monitor www. rim -europa. eu

Innovation for all regions? Innovation in the 21 st century: new actors, new rules Innovation for all regions? Innovation in the 21 st century: new actors, new rules …

Future of Cohesion Policy 2014 -2020 ü Deliver the Europe 2020 strategy objectives of Future of Cohesion Policy 2014 -2020 ü Deliver the Europe 2020 strategy objectives of smart, sustainable and inclusive growth ("the power of the purse") ü Strengthen partnership ü Simplification ü Focus on results, not spending ü Maximise the impact of EU funding ("do more with less") Cohesion Policy

Future of Cohesion Policy 2014 -2020 Consequences: 1. Thematic concentration to maximise the impact Future of Cohesion Policy 2014 -2020 Consequences: 1. Thematic concentration to maximise the impact of investments 2. Conditionalities to ensure effective implementation Cohesion Policy

sustainable inclusive Europe 2020 smart Thematic objectives 1. Research and innovation 2. Information and sustainable inclusive Europe 2020 smart 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 Policy

ERDF 2014 -20: Concentration on R&I and SMEs to maximise impact Research and Innovation ERDF 2014 -20: Concentration on R&I and SMEs to maximise impact Research and Innovation SMEs competitiveness Energy efficiency and renewable energy Developed regions and transition regions Less developed regions Flexibility (different regions present different needs) Special arrangements for the previously convergence regions Cohesion Policy

Thematic Objective & Investment Priority 1: Strengthening RTD and innovation Ex ante conditionality: National Thematic Objective & Investment Priority 1: Strengthening RTD and innovation Ex ante conditionality: National and/or regional research and innovation strategy for smart specialisation Key actions: ►Staircase to excellence: R&I Infrastructures, equipment, centres of competence … ►Innovation in enterprises: tech-transfer, take-up & pilots on KETs, demand stimulation … ►Exploit new ideas: clusters, advisory services, new business models, university-business links, … Cohesion Policy 15

Thematic Objective & Investment Priority 2: Enhancing access to + use and quality of Thematic Objective & Investment Priority 2: Enhancing access to + use and quality of ICT Ex ante conditionality: Chapter for digital growth in RIS 3 Next Generation Access Plan Key actions: ►Broadband roll-out: Next Generation Access ►e. Government ►Developing ICT products and services ►Large-scale uptake of ICT-based innovations 16 Cohesion Policy

Thematic Objective & Investment Priority 3: Enhancing the competitiveness of SMEs Ex ante conditionality: Thematic Objective & Investment Priority 3: Enhancing the competitiveness of SMEs Ex ante conditionality: Small Business Act implementation Late Payment Directive Key actions: ►Entrepreneurship, financial instruments, incubation … ►New business models: exploit new ideas, value chains … ►Business advisory services: SME needs oriented … ►Web-tools to facilitate regulatory procedures for SMEs 17 Cohesion Policy

Common indicators for ERDF support for R&I to control progress … performance reserve … Common indicators for ERDF support for R&I to control progress … performance reserve … • Number of enterprises cooperating with assisted research institutions • Number of posts for R&D personnel created in assisted entities • Private investment matching public support in innovation or R&D projects • Number of enterprises that introduced new or significantly improved products, new to the market as a result of supported innovation or R&D projects • Number of enterprises that introduced new or significantly improved products, new to the firm as a result of supported innovation or R&D projects • … Cohesion Policy

How to meet the RIS 3 ex-ante conditionality? Explain in Partnership Agreement that RIS How to meet the RIS 3 ex-ante conditionality? Explain in Partnership Agreement that RIS 3 exists and … ü Based on SWOT analysis (including ICT) ü Concentrate resources on a limited set of priorities ü Encourages private investment in innovation ü Monitoring and review system ü If thematic objective 2: Chapter on digital growth: balance of support to the demand supply of ICT technologies; objectives "e-" + derived from the NRPs: national level multi-annual plan for budgeting and prioritisation of investments linked to EU priorities. Cohesion Policy

RIS 3 based on 4 C Competitive advantage: match R&I potential with business needs RIS 3 based on 4 C Competitive advantage: match R&I potential with business needs and capacities & develop cross-cutting links between sectors ; adoption of technologies (cutting-edge / tested) to for specialised diversification of sectors Choices (tough ones): select few priorities on basis of specialisation & integration in international value chains. Critical mass of resources & talent: cooperation between regions by avoiding duplication and fragmentation Collaborative Leadership: involve key stakeholders from academia, businesses, public administrations and civil society ("quadruple helix") for efficient innovation systems & synergies between funding instruments (EU, national, regional) = Integrated agenda for place-based economic transformation, strengthening RTD, innovation and increasing access to ICT and its use Cohesion Policy

To what does the RIS 3 ex-ante conditionality apply? ERDF & EAFRD investments in To what does the RIS 3 ex-ante conditionality apply? ERDF & EAFRD investments in • research & innovation • possibly in take-up and quality of ICT RIS 3 can encompass: • ESF investments in business incubation, selfemployment and entrepreneurial skills • ERDF & EAFRD & EMFF investments in SME competitiveness Cohesion Policy

RIS 3 ≠ Operational Programme RIS 3 Bio-Economy Tourism Renewable energy KETs for SMEs RIS 3 ≠ Operational Programme RIS 3 Bio-Economy Tourism Renewable energy KETs for SMEs : Tech. transfer & audits, demonstrators, pilots Forestry Technologies Hypothetical example: Skills: entrepreneurial, innovation management, creative … Cohesion Policy RIS 3 ≠ reinventing the wheel! If innovation strategy exists, build on it!

RIS 3 ≠ Operational Programme Legislation RIS 3 KETs for SMEs : Tech. transfer RIS 3 ≠ Operational Programme Legislation RIS 3 KETs for SMEs : Tech. transfer & audits, demonstrators, pilots OP ERDF ESF Bio-Economy Renewable energy EAFRD OP Tourism OP Forestry Technologies Competitiveness of SMEs in Rural Areas Hypothetical example: Skills: entrepreneurial, innovation management, creative … Cohesion Policy

RIS 3 ≠ Operational Programme RIS 3 ERDF ! Bio-Economy IP 1 e bl RIS 3 ≠ Operational Programme RIS 3 ERDF ! Bio-Economy IP 1 e bl Tourism ta ep cc Cohesion Policy ta Skills: entrepreneurial, innovation management, creative … OP No Renewable energy KETs for SMEs : Tech. transfer & audits, demonstrators, pilots Forestry Technologies Hypothetical example:

How may RIS 3 for Greece? ? ? ent agreem rship Partne Cohesion Policy How may RIS 3 for Greece? ? ? ent agreem rship Partne Cohesion Policy Region Region RI S 3 l l ev el a t i o na N

When should the When should the "RIS 3" be prepared? Cohesion Policy

Now! Cohesion Policy Now! Cohesion Policy

Calendar Common Strategic Framework Partnership Agreements Operational Programmes Ø July 2012: Europe 2020: Country Calendar Common Strategic Framework Partnership Agreements Operational Programmes Ø July 2012: Europe 2020: Country specific recommendations & assessments of national reform programmes Ø Early 2013: adoption of the Structural Funds regulations, Common Strategic Framework + 3 months (2 nd trimester 2013): • Partnership agreements: needs analysis; conditionalities (RIS 3) • Operational Programmes including actions for RIS 3 Start the RIS 3 process Cohesion Policy now!

Who should prepare + participate in RIS 3 process? Cohesion Policy Who should prepare + participate in RIS 3 process? Cohesion Policy

Who does NOT prepare your RIS 3? q Consultants, experts q European Commission q Who does NOT prepare your RIS 3? q Consultants, experts q European Commission q JASPERS q World Bank q OECD. . . but they can accompany the process, provide contacts, data material, information, methodologies, assist with trans -national comparisons. . . Cohesion Policy

Who prepares the RIS 3? The actors in an innovation system: Who prepares the RIS 3? The actors in an innovation system: "knowledge triangle" & "triple / quadruple helix" Ø Enterprises (SMEs, micro, large, industry & services, creative industries, . . . ), including key innovators Ø Research centres, universities Ø Cluster initiatives, business networks. . . Ø Regional development agencies, innovation support providers, investors, incubators. . . Ø National authorities and /or regional (from different departments: economics, research, education, environment, social. . . ), Managing Authorities. . . Ø NGOs, consumers / users. . . You! Cohesion Policy

RIS 3 is a process … of «entrepreneurial discovery» Clients Markets Cooperation Money (value RIS 3 is a process … of «entrepreneurial discovery» Clients Markets Cooperation Money (value chains) Enterprises Research Knowledge Technologies Creativity Talents Cohesion Policy Services What do enterprises need? With whom to cooperate? Who are your customers / competitors? Is there critical mass / excelence?

Who can help with the RIS 3 development? Cohesion Policy Who can help with the RIS 3 development? Cohesion Policy

Support for RIS 3 development: • S 3 Platform: ü ü ü Website Guidance Support for RIS 3 development: • S 3 Platform: ü ü ü Website Guidance on process for development of RIS 3 Analytical support Organises "peer-reviews" of national / regional strategies Conferences, working groups, trainings … • Informal expert reviews • Data material, e. g. Regional Innovation Scoreboard, ERAWATCH, RIM, European Cluster Observatory, Digital Agenda Scoreboard, SME performance review, SSH studies, IPTS studies, etc. • Guidance & good practices: e. g. thematic guides, Regio. Stars, European Entrepreneurship Awards … • Co. R, OECD, World Bank, JASPERS, EURADA, ERRIN, EBN, etc. Cohesion Policy 34

RIS 3 guide Ø Step-by-step guide to strategy development Ø Suggestions for delivery instruments RIS 3 guide Ø Step-by-step guide to strategy development Ø Suggestions for delivery instruments See: http: //s 3 platform. jrc. europa. eu/s 3 pguide Cohesion Policy

Thematic guides q Incubators q Universities & regional development q Broadband Soon available: ► Thematic guides q Incubators q Universities & regional development q Broadband Soon available: ► Clusters ► Social Innovation ► Green growth ► Entrepreneurial spirit ► Creativity ► Service innovation ► Public procurement for innovation …. Inspiration for innovation support: • Oslo Manual (OECD) https: //community. oecd. org/community/smartspecialisation • Community framework for State Aid to Research and Innovation • Analysis of regional innovation http: //www. rim-europa. eu • EURADA • Directory of "No-Nonsense" Activities to Build S³minded Regions; • All money is not the same http: //www. insme. org/files/3019 36 Cohesion Policy

Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data • training • communication Cohesion Policy

Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data • training • communication RIS 3 policy events: • national • trans-national Cohesion Policy

Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data Commission support for RIS 3: S 3 Platform: • peer-reviews • analysis & data • training • communication RIS 3 policy events: • national • trans-national Expert analysis and support • national • regional • thematic • process • …. Cohesion Policy

Commission support to RIS 3: RIS 3 Experts for Greece: Ø Alasdair Reid - Commission support to RIS 3: RIS 3 Experts for Greece: Ø Alasdair Reid - Director of Technopolis Brussels Ø Prof. Nikos Komninos - Professor of Urban Development and Innovation Policy, Aristotle University of Thessaloniki Ø Prof. Panayiotis Tsanakas - President, GRNET Ø Dr Jorge-Andres Sanchez-Papaspiliou - Corallia Clusters Initiative

1. Appropriate stakeholder involvement? How does it support the entrepreneurial discovery process of testing 1. Appropriate stakeholder involvement? How does it support the entrepreneurial discovery process of testing possible new areas? to t d d r de ppo de po en up s en m d su ses m e m m ss co an es co an re ies roc re es roc g be teg nt p b n n ate ent ca str me c s m e o rts the elop th v el pe pe Ex yse r de Ex y e de i al eir a an the an Informal expert reviews … To register in the list of experts: http: //ec. europa. eu/regio nal_policy/tender/expressi on_en. cfm Cohesion Policy

Who will be Who will be "Mr/Mrs RIS 3" in Greece? Cohesion Policy

Information • Proposals for the Structural Funds 2014 -2020: http: //ec. europa. eu/regional_policy/what/future/proposals_2014_2020 _en. Information • Proposals for the Structural Funds 2014 -2020: http: //ec. europa. eu/regional_policy/what/future/proposals_2014_2020 _en. cfm • RIS 3 factsheet: http: //ec. europa. eu/regional_policy/sources/docgener/informat/2014/s mart_specialisation_en. pdf • S 3 Platform: http: //ipts. jrc. europa. eu/activities/researchand-innovation/s 3 platform. cfm • RIS 3 guide: http: //s 3 platform. jrc. europa. eu/s 3 pguide Cohesion Policy