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“ONLINE S3: Monitoring of RIS3 application”

Sample monitoring report Kentriki Makedonia 2014

Created on: 24/08/2017

Dissemination Level Public

Document Version 1.0

Important disclaimer:

The content of this report includes material that has been produced by URENIO Research during the

implementation of the "Smart Specialization" project, funded by the Interreg Greece-Bulgaria 2007 -

2013 programme. © URENIO Research. During the conduction of the report the output indicators were

not distributed during the following years, until the target year. The distribution of output indicators is

fictional and provided only to display the charts that can be produced by the application.

Additional formatting has been applied on the report produced by the application.

Contents Monitoring analytics identification ........................................................................................................... 3

RIS3 Monitoring Report ............................................................................................................................ 3

INVESTMENT PRIORITY 1a: Strengthening research and innovation infrastructures........................... 3

INVESTMENT PRIORITY 1b: Promoting business investment in R&D ................................................. 16

INVESTMENT PRIORITY 3a: Promotion of entrepreneurship by exploiting new ideas ....................... 24

INVESTMENT PRIORITY 3c: Creation of advanced skills to develop products and services ............... 34

INVESTMENT PRIORITY 3d: Support capacity of SMEs to engage in innovation processes ............... 43

Output indicators .................................................................................................................................... 52

Monitoring analytics identification

Name Kentriki Makedonia 2014

Last modification date 2017-08-24 11:22:49

Geographical region

Country Greece

Region Kentriki Makedonia

RIS3 Monitoring Report

INVESTMENT PRIORITY 1a: Strengthening research and innovation

infrastructures

1. Objectives of the priority ‘Strengthening Research and Innovation Infrastructures’ in Central Macedonia

Region

Objective of the investment priority ‘Strengthening Research and Innovation Infrastructures’ (1a) in

Central Macedonia region is to strengthen capacity building of excellence in research and innovation

and to promote competence canters and in particular centers of European interest. Basic target is to

increase overall expenditure on R&D from 0,68% in 2011 to 1% of regional GDP in 2020 with doubling

the part of the business sector. Specific objectives are:

• Strengthen the research units to promote applied research in areas of regional interest set by the RIS3

• Strengthen regional research structures and infrastructures • Exploitation of research potential to the benefit of the regional economy. • Increase of new knowledge inputs to the economic sectors of smart specialization • Increase public expenditure for RTDI

2. Baseline situation in the region

2.1. Landscape in the field of the Investment Priority

The region’s performance in research and innovation is considerably below the EU average. Moreover,

with an annual growth rate of -4.80% in R&D expenditure, the region’s position is steadily weakening.

These negative trends can be ascribed to the poor performance of the business sector. At the same time

most R&D employment and expenditure are concentrated at the higher education and the public

research centers that have, however, established limited links to the region’s economy. Expenditures of

the higher education sector on R&D are bigger, compared with the national average. The university,

together with the Technological Educational Institutes of Thessaloniki and Serres, the University of

Macedonia, the International Hellenic University and the Centre for Research & Technology Hellas

(CERTH) and its institutes which have international recognition, constitute a strong pole of education

and knowledge production, but with limited links to the region’s economy.

The presence of the above institutions has resulted in 17.5% of the Human Resources in Science and

Technology (HRST) in Greece being located in the region, with HRST accounting for 15.1% of the regions

active population, a share above the EU27 average of 14.6%, increasing the potential absorption

capacity of the economy. This potential however is not fully exploited by the regional economy.

Nevertheless, the knowledge supply is inconsistent with the needs of the regional economy in areas

where the RCM shows competitive advantages. This is due, inter alia, to the limited financing of modern

research infrastructure and equipment, as well as to the limited resources for research programs, with

targets consistent with the needs of the productive fabric. Overall, even though the level of public

funding for RTDI (academic institutions and research centers) in the RCM is good in comparison with the

natonal level, only a small part of it is addressing to the needs of the regional economy.

Concerning the business sector, there is a good level only in non R&D based innovation expenditure.

This may reflect alternative strategies adopted by medium to low tech companies to confront

competition, overcome the deficiencies of low skilled personnel and to circumvent their weakness/

inability to invest in R&D.

Compared to all European regions, the presence of researchers in the fields of government and higher

education is good, but in business sector is far behind. Moreover, although the region has a critical mass

of R&D organizations and researchers, it lacks innovative entrepreneurship and has a low level of public-

private collaborations.

The R&D structures and infrastructures of the Region are tested by the reduction of funding for

equipment and research programs, higher education, research staff, the brain drain, etc. Also there is a

shrinking number of scientific publications from 2008 onwards, a direct indication of the impact of

economic crisis in research funding and indirect cuts in staff of researchers in academic and research

organizations.

In conclusion, the RCM, although it is well-positioned in the national system innovation as to offer

infrastructures, knowledge and human resources, displays significant deviation from European

standards and has not yet managed to transform the positive characteristics of its RTDI into financial

resources and competitive advantages.

Strengths:

• Sufficient number of excellent research institutes, centers and university laboratories • Broad scientific fields • Good performance in European competitive RTDI projects • Satisfactory RTDI infrastructure and tertiary education providers with infrastructure capabilities

Weaknesses:

• Low performance in commercialization of RTDI (few collaborations between research organizations and companies)

• Low expenditure on RTDI, especially by businesses (small businesses, weakness funding RTDI)

• Lack of clear institutional innovation strategy (interdisciplinary research, technology transfer) • Limited number of research collaborations with world class institutions • Gaps in innovation support: support structures below capacity (grants life cycle), missing of

continuity in the innovation chain, weak links and extroversion.

2.2. Values and explanation of baseline result indicators

The innovation performance of the region in 2013 ranks in 188th place among 273 EU regions and 3rd

among Greek regions. Concerning the competitiveness index it ranks in 238th place among EU regions

and 2nd in Greece.

The total expenditures on R&D are very low representing only 0,68% of regional GDP. R&D expenditures

of the public sector represent 0,50% and of business sector only 0,16% of the regional GDP.

Expenditures of the business sector in 2011 are ranking in the 3rd place in Greece behind the Attica and

Central Greece and those of the higher education in the 6th place in Greece. Expenditures on R&D by

higher education and businesses, although are above the national median in 2011, remaining stable in

relation to 2005. Expenditures on R&D in Central Macedonia moved up in the 4th place among the

Greek regions in 2011 from 5th in 2005, with the change due to the 52.9% increase in R&D expenditure

in GERD.

Business expenditures in relation with the performance of other European regions are very low and just

sufficient, also the general innovation performance of the business sector is ranking below the national

average (0,23%) and significantly below the EU average (1,29%), this is confirmed by the measurable

effect of patents filed at the European Patent Office per million inhabitants, only in 6% of the average of

EU28, one performance that brings RCM in the 3rd place in Greece after Athens and Crete in 2009.

RCM is lagging behind the average of the country and the EU also in other indicators such as

expenditure business other than R&D (0,38% of companies’ turnover), RTDI activities in SMEs (0,28% of

total SMEs in the region) and SMEs collaborating with others (0,09% of total SMEs).

The number of full-time employed researchers amounts at 4.565 accounting for 18,5% of the country.

The number of full time researchers in higher education totaled 3.305 and in business sector 794 (19,7%

of the country), representing a significant decline (1.193 in 2005). The total number of researchers are

8.564 (6.770 in higher education and 1.077 in private sector)

In terms of scientific outputs, the total scientific publications amounts at 3.227 per year. The Aristotle

University of Thessaloniki is ranking 2nd among Greek universities, with 8,577 publications (21.1% of

publications of Greek universities) over the period 2006-2010. With 32,469 citations over the same

period, the university however achieved a rather low overall citation impact of 0.81 (12th rank). The

publications covered mainly the fields of natural sciences (52% of the publications, 53% of the citations,

citation impact of 0.79), medical and health sciences (35% of the publications, 39% of the citations,

citation impact of 0.75), engineering and technology (27% of publications, 24% of citations, citation

impact of 0.87) and to a small extent agricultural sciences and social sciences. The Technical Education

Institute of Thessaloniki, it ranks 3rd among the Greek Technical Education Institutes (TEI) in terms of

publications (331, i.e. 14.6% of the total publications of the TEI) as well as in terms of citations (619)

over the period 2006-2010. Its main field of science in order of number of publications are natural

sciences (59% of publications) and engineering and technology (34%) followed by medical and health

sciences and agricultural sciences. Noteworthy though is that the citation impacts of medical and health

sciences and agricultural sciences are higher than for the two other main fields of scientific production.

2.3. Existing infrastructure and activities in the field of the Investment Priority

RCM has a critical mass of research centers, academic structures and centers of excellence. More

specifically it has three universities (Aristotle University, University of Macedonia and the International

University), two Technological Educational Institutes (Thessaloniki and Central Macedonia) an important

public research center (CERTH), a series of research structures of ELGO-Dimitra and about 80

universities and public research laboratories. and research centers of excellence in bio-diagnosis,

advanced production systems, petrochemical processes, energy and environmental technologies,

information processing, virtual reality, transport safety. Regarding research bodies are almost in their

entirety public.

Intermediary bodies include institutions such as the Technology Park of Thessaloniki, the Alexandria

Innovation Zone of Thessaloniki, the Center of Redistribution Innovation – PRAXIS, the Greek Centre for

Technology Transfer, the European Centre of Entrepreneurship Innovation. In the intermediary bodies

also included 4 incubators (Incubator for New Companies – i4G, Incubator THERMI SA, Incubator of

Technology Park, Technopolis Thessaloniki). They is also included the Interconnection Offices of

educational and research institutions, and the National Center for RTD.

3. Actions implemented in the field of the investment priority

3.1. Actions of the ROP Central Macedonia

Actions under the Investment Priority 1a focus to strengthen research units for the promotion of applied

research in sectors of regional interest designated by RIS3 (Specific Objective 1a1).

Indicative actions:

• Investments for the creation, expansion or upgrading RTDI infrastructures. Priority will be given to infrastructures and research units that aim at promoting the supply of new knowledge in the specific and horizontal sectors of RIS3 with first priority agrifood complex and ICT, preferably making use of KETs.

• Creation of knowledge centers in traditional sectors (agriculture and tourism) • Investment in equipment and facilities for applied and targeted research projects to the sectors

of regional smart specialisation. • Strengthening regional research structures and infrastructures. • Exploitation of research potential to the benefit of the regional economy. • Increase of new knowledge inputs to economic sectors of smart specialization. • Increase public expenditure for RTDI • Incentives, support and funding of research • Networks and research poles • Creation of new research and technology clusters • Οpen source-open science markets for knowledge • Technology transfer offices and related programs • Knowledge supply to the priority RIS3 sectors through R&D from academic or research sector • Implementation from academics or researchers small demonstration projects for the diffusion

of mature research results

• Strengthening investments for RTDI partnerships or collaborations between business, academics or research centers and/or international partners

3.2. Actions of OP COMP

The thematic objective Strengthening Research, Technological Development and Innovation will absorb

22.58% of the total financement of the Operational Program (27.7% of ERDF funds). The funds will be

directed to strengthen research and innovation infrastructures and business connection with research

and academic community in order to develop activities and high value-added services and attracting

investments. The investments will contribute to the national target for increasing research spending,

from 0.67% in 2011 to 1.2% of GDP in 2020.

Through COMP they will be implemented actions on national or regional focused areas for the

development of companies and entrepreneurship at strategic priorities of RIS3. At regional level trough

the OP 1a will be financed mainly actions to create and strengthen innovation infrastructures in priority

sectors of regional RIS3. They will include technology audits, RDI coaching/innovation management

training, proactive brokers, matchmakers, actions for strengthening employment of scientists-

researchers in enterprises, creation of innovation infrastructures (competence centers, incubators, units

for exploitation of research results of local universities).

Actions for strengthening research and innovation:

• Strengthening research infrastructures according to the National Roadmap for Research infrastructures

• Modernization of internal network infrastructure of all the universities and research centers of the country

• Creation and operation of digital research and innovation platform • Creation of technology exploitation offices • Attracting high-level human resources in RTDI infrastructure • Strengthening and effective use of research work and resources • Enhancing participation in transnational / trans-European networks, programs and initiatives –

ERANETS-FETs • Enhance interconnection and integration of national RTDI system to the European one • Strengthening research potential through implementation of PHD • Strengthening post-doc researchers • Transnational partnerships research and innovation • Support the research dimension and research strategies of higher education • Creation of competence centers networks • Development of professional knowledge and skills in intellectual property, management of

innovation and technology • Innovation incubators, start-ups, technology transfer office, venture capital • Pilot implementation of research results • Development of links and collaborations between universities, research centers and companies • Supporting technological and applied research, pilot actions, patents, advanced production

capabilities especially in key technologies and dissemination of KETs • Strengthening new business initiatives for the exploitation of knowledge resulting from the

research activity in order to strengthen entrepreneurship of young scientists / researchers. • Support with seed capital business ideas from research centers, universities and businesses.

• Strengthening the creation and development of clusters or consortium among business, researchers and universities

• Funding companies for buying services from research laboratories • Supporting research groups to participate in European programs (HORISON, COSME, ESA, CERN,

EMBL-EMBO, EUREKA) • Financing research and technological development through transnational research agreements • Financing proposals that were positively evaluated by ERC Grant Schemes but not funded • Promotion of research results and public awareness of technological development through

demonstration and pilot projects

3.3. Actions of OP AGRO – Enhancing Technology and Innovation in the agro-food sector

Priorities/Focus Areas:

• Fostering innovation, cooperation, and the development of the knowledge base in rural areas • Strengthening the links between agriculture, food production and forestry and research and

innovation, for the purpose of improved environmental management and performance • Adoption of innovations and application of the results of research and technology (R & T) in the

food industry to increase productivity, reduce the environmental footprint, reducing the impact on climate change than the exercise of agricultural activity (water, soil, biodiversity), strengthening the role of forests in environmental protection

• Improvement of networking promotion of clusters between public research and educational institutions and the business sector

Cross cutting objectives:

• Environment • Climate change mitigation and adaptation • Innovation

Actions/Measures:

• Knowledge transfer and information actions • Co-operation: Strengthening links between applied and oriented research and the real needs of

the agro-food system and forestry, through the creation of connecting links and networking of all stakeholders (research institutions, consultants, farmers, enterprises in the primary, secondary and tertiary sector, consumer associations, environmental organizations etc.)

• Strengthening the links between agriculture, food production and forestry and research and innovation, including the aim of improved environmental management and performance

• Establishment and operation of operational groups for agricultural productivity and sustainability that are established by stakeholders such as farmers, researchers, advisors, businesses and other organizations involved in agriculture, food and forestry (bio-economic innovations, product / service innovation)

4. Policy instruments used

4.1. Intervention logic

Until recently, research and innovation was not a priority in the regional policy agenda as attention was

focused on policy areas and initiatives that could produce visible and swift results (for example road

infrastructure, protection of the environment, and reducing unemployment). Several bottom-up

attempts have been made in the past, mainly initiated by the academic community to form, within the

framework of RIS/RITS and Innovative Actions initiatives, a regional innovation strategy. However, the

results were never adopted in the region’s Operational Programme, which is the main funding

instrument.

For the new programming period RCM’s strategy for innovation is oriented to an integrated policy mix of

interventions, both in supply side and in demand side, for producing maximum added value. The

interventions are in line with the objectives of the Partnership Agreement 2014-2020, the NRP, the

strategy «Greece 2021» and the recommendations of the European Commission Services for Greece. At

the same time major effort will be given to support local research and production system to exploit

HORIZON program.

This strategy is oriented towards strategic priority specialization sectors and horizontal technologies.

Strategic priority sectors:

• Agro-food sector • Building materials • Clothing – Textiles • Tourism sector

Horizontal support technologies:

• Information and communication technologies • Energy technologies • Environmental technologies • Transportation and supply chain technologies

Strategies:

• Take advantage of the existing knowledge for the creation of high added-value and quality products

• Strengthening targeted and applied research, dissemination of research results and effective use of knowledge generated by the economy of the region

• Production of new knowledge in selected sectors of the economy and in the horizontal support sectors of the Region

• Support partnerships between members of the triple helix with strategic objectives: (a) creation of a critical mass of partnerships and innovation activities, (b) the commercial exploitation of research results through integrated approaches, (c) strengthening links between research and businesses for collaborative research, technology and knowledge transfer

• Networking of research organizations in regional, cross-border and international level • Exploitation of Key Enabling Technologies / KETs, and development of extroversion with

strategic objectives (a) networking research laboratories dealing with KETs and (b) technology transfer to businesses

• Creation and certification of an integrated support system in the innovation chain strategic objectives: (a) fill the gaps in the existing system by creating bridges – networks through

collaborations to increase the attraction of ideas, capital, and know-how and (b) gradual establishment of an integrated regional supporting innovation system

4.2 Main policy instruments used

The regional innovation policy instruments are devised in: (1) knowledge production, (2) knowledge

dissemination and (3) knowledge exploitation. Main instruments for strengthening research and

innovation infrastructures in each category:

knowledge production:

• Targeted technology projects for solving technological challenges • Financing strategic innovative projects in public research centers (horizontal supporting

projects) • Supporting networking of research organizations (regional and interregional networks) • Establishment of new research and technology infrastructures

Knowledge dissemination:

• Creation of triple helix clusters • Offices for technology knowledge transfer • Local knowledge centers in traditional sectors (agro-food, tourism), as branches of national

knowledge (emphasis on dissemination of research results) • Awards for innovative ideas • Creation of competitiveness institutes • Creation of a coordination body for the liaison between financial tools and means • Knowledge transfer portal that enables easy search for: research teams intellectual property

rights to assign, mature research results for commercialization, existent research infrastructures and equipment, services procurement and results of demonstration projects

• Mapping tool of technological events between research institutions and the productive sector for information exchange of the needs of the business sector and the solutions offered by research area

Knowledge exploitation:

• Development of innovative products • Start-ups development (second round of finance)

5. Indicators: Tables and Diagrams

Implementation of actions

Indicator Base line Output 2023 Public expenditure

Number of targeted and

collaborative research

projects in sectors of

50 500.000/project

regional smart

specialisation

Number of horizontal

supporting projects in

public research centers

10 1.000.000/project

Number of research

centers supported for

networking

15 500.000/project

Number of cross-

boarding research center

in agro-food sector

1 1.500.000

Scientific publications

per year 3.227 (2013) 3.800

Number of researchers

employed in improved

research infrastructures

175 (equivalent of full

employment)

22.995.670

(72.000 € average public

expenditure /

researcher)

Number of public

laboratories’

infrastructure supported

50

Support of private

laboratories’

infrastructure

4 1.000.000/project

Number of new

competitiveness

institutes supported

2

1.000.000/project

(finance for 2 years 2

new institutes)

Creation of clusters 8 2.000.000/project

Number of projects for

technology transfer 250 30.000/project

Award of innovative

ideas 3 150.000/project

Accredited analytical

public laboratories for

controls and

product certifications

and procedures

4 1.000.000/project

Development of new

innovative products with

extroversion

perspective

40 200.000/project

Support start-ups

development 100 600.000/project

Number of enterprises

collaborating with

research centers

400

Mobility of researchers

to businesses

(number of new

researchers supported in

business)

200 25.000/project

Business R&D

expenditures (% of GDP) 0,16 0,30

5.000.000 (public

support for private

investments)

Public R&D expenditures

(% of GDP) 0,50 0,70

Indicators of scientific excellence and research competitiveness of research teams to receive support

2014-2020:

– Number of projects FP7 / Horizon2020 the research team as coordinator

– Number of projects FP7 / Horizon2020 the team as a partner

– Number of references / total research team publications in the last 4 years.

– Number of patents in international patent offices

– Number of patents in national patent office

– Turnover of the research group of funded research projects by companies over the last 4 years

– Turnover of the research team on service projects to enterprises over the past 4 years

– Range of KETs exploitation of new research infrastructures

– Correlation of research of the research team with the requested research infrastructure

EU expenditures in research and innovation

Area EU expenditure

Public research and innovation infrastructure 5.000.000

Research and innovation activities in public research centers 5.000.000

Technology transfer and collaboration universities – enterprises 4.500.000

Research and innovation processes in SMEs 1.500.000

SMEs investments in infrastructure, skills and equipment for research and

innovation 2.396.536

TOTAL 18.396.536

6. Impact analysis / Conclusions

6.1. Changes of outcome and result indicators

The interventions in the field of the regional research system for the programming period 2014-2020 to

be are promising to overcame much of the weaknesses of the regional innovation system. Based on the

strengths of the public research sector, a range of interventions can help to make efficient use of these

strengths for the benefit of enterprises and especially SMEs. Furthermore, through the improvement of

the RTDI infrastructures and the support of research units to develop applied and targeted research in

regional priority sectors, beneficiaries are both researchers who work in these areas and enterprises.

Important changes in the research and innovation outcome of the regional innovation system are

expected through (1) the promotion of applied research in sectors of regional interest and (2) the

development of collaboration between R&D research centers, enterprises and higher education.

1. Promotion of applied research in sectors of regional interest (RIS3)

Main impact factors:

• Investment priority given in infrastructures and research units that supply new knowledge in specific areas of RIS3, such as the agro-food sector or building materials

• Investments in equipment and specific facilities for applied and targeted research • Investment in new research centers • Support networking of research bodies

Outcomes and expected results:

• Effective use of research potential to the benefit of the regional economy • Increase inflows of new knowledge in economic sectors of smart specialisation • Development of international partnerships for research and knowledge and technology transfer • Improve the conditions of regional research units to develop partnerships under HORIZON 2020 • Increasment of the public expenditure for RTDI

Changes of outcomes and indicators:

• Increase of the number of researchers employed • Increase of the number of research institutions and laboratories • Increase of the number of scientific publications • Increase of public expenditures in R&D (GERD) • Increase of Human Resources in Science and Technology (HRST)

2. Development of collaboration between R&D research centers, enterprises and higher education

Main impact factors:

• Investments in knowledge supply by research units of the academic or research area in order to cover technology demands in the value chain of the RIS3 priority sectors

• Finance implementations by the research community of small demonstration projects aimed at the dissemination of mature research results to the production sector, particularly by applying KETs

• Finance the mobility of researchers to enterprises • Investment in the creation of triple helix clusters

Outcomes and expected results:

• Creation of permanent collaboration mechanisms between research units and enterprises • Promotion of applied research (RIS3 sectors) and transfer of knowledge and technology • Provide a sufficient supply of knowledge and technology to the productive sector of the region • Strengthening innovative performance of the region’s production • Effective use of research results for the development of new products, services and processes

Changes of outcomes and indicators:

• Increase agreements between research community and enterprises • Increase collaborative research projects • Increase technology transfer • Increase funding of R&D expenditures of academic and research institutions by enterprises

6.2. Explanation of change

RCM has accumulated an inherent knowledge capacity which under the right conditions can lead to

transformation of the productive sector. The intended effect of ERDF intervention is the strengthening

and upgrading of the regional research system so that by further enhancing the RTDI infrastructure to

provide an adequate supply of knowledge and technology to the region’s enterprises and to reach the

objectives of the “Europe 2020”

The above investments in the specific strategies ‘Promotion of applied research in sectors of regional

interest (RIS3)’ and ‘ Development of collaboration between R&D research centers, enterprises and

higher education’ are necessary in order to produce specialized research and enhance the innovative

performance of regional production. The use in practice of research results to develop new products,

services and processes will lead to the emergence of competitive advantages of the RCM and improve

its competitive position in the national and international arena. Moreover, the upgrading of RTDI

infrastructures will contribute to unlocking the research potential of the RCM and the upgrading the

international competitive position, which is expected to promote international collaboration in research

and knowledge and technology transfer, as well as improving the preconditions for regional research

units to develop cooperations under HORIZON 2020.

6.3. Effectiveness of actions implemented

Main focuses of actions concerning the investment priority ‘strengthening research and innovation

infrastructures’ are the promotion of applied research in sectors of regional interest and the

development of collaboration between R&D research centers, enterprises and higher education. These

actions are linked with the development objectives and priorities of the development strategy of the

RCM and the European strategy “Europe 2020”.

The aim is to implement and disseminate the accumulated technological knowledge in academic and

research institutions and to achieve economies of scale in systematic exchange of knowledge between

the research sector and the productive sector of the RCM. Through the actions described above for

strengthening applied research and entrepreneurship, a substantial increase in RTDI spending is

expected by 2023, from both research bodies and businesses.

Taking account the effectiveness of the proposed actions, we can conclude the following:

(1) Achievement of critical mass of partnerships that enable the diffusion and development of

innovation

(2) Major attention given at the research infrastructures (human, equipment, networks), will reinforce

the innovation capacity of academic and research centers

(3) Through targeted cooperation between the triple helix members (i.e. clusters), expected results are

productivity growth, strengthening competitiveness and extroversion of business, and creation of new

qualified employment.

(4) Τhe mobility of researchers to SMEs will strengthen their production capability and competitiveness

(5) The creation and upgrade of infrastructures and the development of pilot projects to provide

technological services in targeted sectors and value chains, will create a certified integrated support

system in the innovation chain

(6) The creation of start-ups with innovative character will contribute in increase employment, reduce

brain-drain, effective utilization of investments in education and research, creating a culture of

partnerships with the private sector, leverage private resources

6.4. Effectiveness of policy instruments

The smart specialisation regional strategy creates a favorable framework compared to the past and new

policies and policy instruments can be more effective in this framework.

Major innovation policy issues been addressed for the coming programming period:

• Formulation of a long-run strategy based on stakeholders’ consensus • Implementation of the strategy through a multiannual plan • Focus on strategic priority sectors (selective strategy based on the regional specialisation of

production) • Strengthening horizontal technologies to support SMEs • Increase funding of RTDI in areas that have relevance to the needs of the priority sectors • RTDI funding based on competitive procedures and transparency • Establishment of strong monitoring and assessment tools

INVESTMENT PRIORITY 1b: Promoting business investment in R&D

1. Objectives of the investment priority

Priority axis 1 (“Improving the Competitiveness of Local Economy”) includes interventions to improve

the competitiveness of the local economy, which is essential for long term and sustainable improvement

of critical socio-economic indicators. It combines interventions for support of entrepreneurship,

innovation and technology that are feasible to implement the smart specialization strategy aiming to

achieve the “transformation” of the local economy from low-cost industrial pole into a knowledge-

intensive industrial pole.

In this context, the actions planned aim at doubling business investment in research and development,

the use of internal as well as imported knowledge and the exploitation of new collective actions, which

will release creative forces and strengthen the base of the creative potential.

The sub-axis 1b concerns promoting business investment in research and innovation, development of

links and synergies between businesses, research and development centers and higher education. The

activities particularly aim to promote investment in product and service development, technology

transfer, social innovation, ecological innovation, public service applications, encourage of demand,

networking, development of clusters and open innovation through smart specialization as well as

support of technological and applied research, pilot projects, advanced manufacturing capabilities,

especially in key technologies, and dissemination of enabling technologies.

The main objectives of the priority are:

1 – Increasing business investment in research and innovation for New Product and service

Development in priority areas of Regional Smart Specialisation Strategy (RIS3).

2 – Strengthening of collaborative research between research and academic institutions with industry in

the priority areas of the Regional Smart Specialisation Strategy (RIS3).



Entrepreneurship in Central Macedonia (as also in Greece in general) is characterized by intense activity

of enterprises with small size (up to 10 employees) and family character in the administration and

operation. In particular, according to the report of the European Commission, micro and medium

enterprises correspond 99.6% of total business activity in Greece, while employing 85% of the country’s

workforce. The market is therefore fragmented and businesses of this type have an inherent difficulty in

development activities outside the walls of traditional urban centers. Also, a significant number of

companies operating in the country producing low value-added products and provide common services

(commodity services).

The production system in the Region shows high concentration in few sectors of industry and the

primary production which are mostly labor and capital intensive as well as related to consumer care

services and less dynamic business support or export services (excluding tourism and transport).

In the field of Research, Technological Development and Innovation (RTDI), despite the existence of

remarkable research and educational infrastructure, centers of excellence, incubators, technology parks

and research potential (especially in the public sector), the performance of RCM is considered as low.

According to Eurostat data, the number of full time equivalent researchers in the business sector in

Central Macedonia in 2011 amounted to 794 (19.7% of the country), representing a significant decline

(1,193 in 2005). Based on the latest data of the ESF for R&D expenditure in the business sector in 2011,

we observe that strong regional economic sectors with the exception of ICT (primary sector, food

industry and beverage, construction, textiles/clothing) are characterized by a particularly poor

performance throughout the country, and therefore the RCM.

According to the Competitiveness Report and the implementation of EU industrial policy, the companies

operating in high-tech industrial products as well as specialized knowledge-intensive services

(knowledge-intensive services) are only the 18% of total business activity compared to EU average, in

which it exceeds 30%. Overall the business activity is characterized by weak performance in innovation

and slow growth in this area.

Furthermore, there is low commercial exploitation of primary research results and technological

development from universities and research institutes. The lack of interest in exploiting research results

by the market is partially balanced by the creation of spin-off companies, with good performance so far

only by Aristotle University and the Centre for Research and Technology (CERTH). Overall, the

performance of academic and research institutions in RCM compared to European standards is 1-2

orders of magnitude lower than the average same size institutions. The RCM Smart Specialization

Strategy identified the following priority areas:

(a) Agri-food,

(b) The building materials sector,

(c) Textile and clothing

(d) Tourism of experience (culture and tourism).

Furthermore it is noted that 4 more technological/sectoral areas may activate the advantages of the

economy of the region and act as catalysts for the absorption of innovation:

(e) ICT,

(f) Energy,

(g) Environment and

(h) Transport and supply chain management.

Furthermore there is a lack of interconnection – association of research with the productive profile of

RCM. There’s low interface and cooperation between research centers and universities on the one hand

and the local production on the other, despite the existence of a significant number of researchers in

RCM (4565 researchers full-time equivalents or 18.5% of the country in 2011 according to Eurostat) .

The development of research results, the use of technology transfer or participation in research

partnerships for developing competitive products, services and processes by the local businesses and

especially SMEs presumes the existence of resources for the establishment or maintenance of an

internal technological and innovative structure and infrastructure. Especially, new innovative enterprises

are exposed to significant risks and face huge fundraising problems. Therefore, under thematic objective

1B1 it is crucial to strengthen the endogenous capacity of enterprises for research, technological

development and innovation and to promote investment activity in R & D.



The Region of Central Macedonia includes a critical mass of research centres, academic units and

excellence centres which can support co-operations for R&D development in the Region. It has 3

Universities (Aristotle University, University of Macedonia and International University) two

Technological Education Institutes (Thessaloniki, Central Macedonia and Serres), a significant research

centre (EKETA) and approx.. 80 university and public research units in the areas of bio-diagnosis,

advanced production systems for petrochemical processes, energy and environmental technologies,

information technology, virtual reality, transport safety, etc. Regarding research bodies are almost all

public such as the Institute of Chemical Process Engineering, Informatics and Telematics, Transport,

Agrobiotechnology, Technology and Applications of Solid Fuel, the Centre for Research and

Technological Development, the university research centers and laboratories, the National Institute of

Metrology, the Institute for Forest and Grains Research, etc.

There are also remarkable intermediary institutions including the Thessaloniki Technology Park, the

Alexandrian Innovation Zone, the Innovation Relay Centre PRAXI, the Greek Centre for Technology

Transfer, the European Centre for Business Innovation in Serres. Furthermore we could consider as

intermediaries the incubators (the Incubator of New Enterprises i4G, incubator THERMI SA, Incubator of

the Technology Park and Technopolis) as well as the Liaison Offices for Interconnection of educational

and research institutions from Macedonia and Aristotle University of Thessaloniki and the TEI of Serres

and EKETA


Due to the decrease of public and private investments, the development strategy of RCM focuses on

policies and actions with the greatest multiplier effect on the regional economy, and with maximum

leverage of resources from the private sector and other public and community organizations. In other

words, the overall strategy of RCM is promoted through this OP as well as through the resources of the

sectoral OPs, the distributed resources of the Cohesion Fund (CF), the Ops of the European Territorial

Cooperation and other specific initiatives. Based on the architecture of the NSRF 2014-2020 and the

resulting allocation of resources and activities, promotion of the development strategy of RCM depends

largely on efficient and targeted activation of resources to the sectoral OPs. So, for example, through

the resources of the OP “Competitiveness, Entrepreneurship and Innovation” is necessary to reinforce

the large RTDI infrastructure and upgrading the human research potential.

The strategy “Europe 2020” aims to increase spending on R&D to 3% of EU GDP. Moreover, the National

Reform Programme (NRP) aims to increase this figure for the country to 2%. The RCM is lacking

significantly these targets. Also, the level of private spending on RTDI is lower than the national and

European average. In particular, the RCM is far below the EU related targets, since total expenditure on

R&D in 2011 amounted to only 0.68% of regional GDP, while the corresponding business costs are at

0.16%. The performance in the business sectors in RCM are below the national average of 0.23% and

significantly below the average of EU (1.29%). The RCM is lagging behind the average of the country and

the EU and in other relevant indices, such as the innovative business costs other than R&D (0.38% of

companies’ turnover), RTDI activities within the SME (0.28% of all SMEs in RCM) and the percentage of

SMEs that collaborate in the field of innovation with other companies (0.09% of all SMEs in RCM).

In the upcoming period, apart from the European Calls (H2020, CBC, MED, Interreg), there are two main

Programs which may support the specific priority: (a) the Regional Operational Program of Central

Macedonia (with the priorities included in the RIS3 strategy) and

(b) the “Operational Programme Competitiveness, Entrepreneurship & Innovation” (EPAnEK) which is

one the national sectoral operational programmes (part of the Partnership and Cooperation Agreement

for the period 2014-2020 relevant to that priority.

3.1. Actions of the ROP

1b1: Promoting investment in developing products and services in RIS3 priority areas

• Increase spending and business investment in RTDI activities. • Strengthening RTDI cooperation between businesses as well as between businesses and

research bodies. • Promotion of endogenous technological innovation capacity of enterprises in RIS3 priority

sectors • Increase the percentage of companies that develop new products on the market

1b2: Create permanent collaborative mechanisms between research units and enterprises and between

enterprises for the promotion of applied research in the RIS3 areas and for knowledge and technology

transfer.

• Development of clusters covering productive activities, joint ventures, innovation poles, platforms or other structures involving companies as well as research and educational institutions.

• Develop a new culture for innovation, diffusion and dissemination of research results • Increase spending and business investment in RTDI. • improve competitiveness and increase exports

Indicative actions of the ROP in that priority include:

1. Increasing knowledge supply in order to cover necessary interventions in parts of the RIS3 priority

sectors’ value chain actions through R&D actions implemented by research groups of the academic or

research units. Such actions can be complementary to the activities of the “Research Infrastructures”

priority area (1A1).

2. Implementation of small demonstration projects by the academic or research community aiming at dissemination of mature research results to the private companies, particularly in Key Enabling Technologies (KETs),.

3. Strengthening individual enterprises to invest in applied research aiming to product-driven, process-driven or technology-driven innovation. 4. Investment support for for RTDI partnerships or collaborations between business, academic, research centers and / or international partners for applied research solving problems of common interest or for joint new products development. Such action may include pilot projects. 5. Strengthening companies in seed or startup phase in introducing an innovative product / service in the market. 6. Providing innovation vouchers to micro and small businesses so as to boost their innovation activity and be supported for experimentation


The National Operation Program “Competitiveness” includes the following actions relevant to this

priority:

• Enhancing research and innovation infrastructure with a view to improving the innovation capacity of the country at national and regional level but also in the capability for participation in the of the European Research Area initiatives.

• Promoting horizontal and long term actions to boost innovation and research activities supporting all sectoral priorities as well as the functioning of the national innovation system.

• Development-upgrade of the research potential in accordance with the requirements of national smart specialization strategy

However we must note that in the time of this report preparation there is no detailed information

available as regards to the Calls for both programs, their exact targets and their budget. It is therefore

difficult to estimate the expected impact of the Programme Actions.



On country level there are there are (or have been recently) a number of support schemes in the last

years

Clusters Programme (Competitiveness and Entrepreneurship Operational Programme) (2007-2013)

The Clusters Programme is designed to create public-private partnerships amongst companies,

universities, research organisations, associations, and chambers of commerce and crafts in order to

boost competitiveness, entrepreneurship and innovation.

The programme targets knowledge-intensive and export-oriented technology segments where Greek

companies have the capacity to build a sustainable innovation ecosystem and attain a worldwide

competitive advantage.

COOPERATION 2011 – Partnerships between businesses and research bodies in specific research and

technological sectors (ongoing). The objectives of the Cooperation 2011 Programme are:

− Enhance collaboration between businesses and research bodies through common implementation of

research and technological projects;

− Foster green development, competitiveness and outward orientation of Greek businesses;

− Improve Greek citizens’ quality of life;

− Strengthen and upgrade the skills of the research workforce; and

− Establish international cooperation through networking and collaboration with entities from European

and other countries.

The Programme targets domestic partnerships between productive-commercial businesses of all sizes,

research centres, institutes, higher educational institutes, technological, public and other bodies for the

implementation of R&D projects in specific manufacturing and services sectors. Businesses and research

bodies are the key beneficiaries, whereas the rest participate as technology/services/products end-

users.

CREATION – Support to new innovative (notably highly knowledge-intensive) enterprises (spin-offs and

spin- outs) (2007-2013)

The CREATION initiative supports:

− Companies established (for no more than six years) or in the course of being established by

researchers from Greece and abroad, or established by companies with technological innovation

activities; and

− Small innovative firms.

Applications have to contain an agreement on the Intellectual Property Rights (IPRs) between the

organisation producing the knowledge and the organisation exploiting it.

Innovation Vouchers for SMEs (2009- 2015)

The scheme fosters exchange of expertise and consultant services between ‘innovation agents’ (i.e.

universities, research centres) and companies. It targets:

− SMEs active in the manufacturing sector, software industry and research and development firms; and

− public laboratories of universities, technological colleges, research centres and institutes, and sectoral

companies as suppliers of services of high added value and knowledge intensity. The total budget is EUR

8.4 million.

Supporting businesses with the aim of employing highly qualified scientific personnel (under the Human

Resources Development Operational Programme) (2007-2013)

This action subsidises businesses in the recruitment/employment of highly qualified scientific personnel

(researchers, technicians) to implement specific proposals for research activities. Under this action,

proposals for research activities can be submitted by private sector undertakings and/or from any sector

of the economy and irrespective of size. The total budget is EUR 15 million.



The main aim of the regional RIS3 strategy is to reverse the negative climate created by the recent

economic crisis, and to establish a new “self-sustained and not subsidized” development model, and

reconstruction of the production model, through exploitation of: (a) the available non-utilized regional

resources and infrastructure and (b) the available national, European and private capital in order to

create benefit for the local economy.

The strategy of the region includes the integration of actions aimed at increasing the competitiveness of

local industry through integrating technology and innovation (dissemination of research results in

business and networking of research groups with selected manufacturing sectors) and integration into

value chains and collaborative schemes.


The result indicators and the projects, which are expected to affect their values are presented below:

RCM-R-0006 BERD percentage to GDP

• Individual business investments in applied research aimed at product innovation. These actions may include investment plans of individual companies with sufficient research capacity or collaborations of companies with academic or research institutions.

• Enhance of new-to-business innovation development initiatives through innovation vouchers or other vouchers for research creation portfolios.

• Investment plans by companies or spin-offs composed by researchers coming from academic and research institutions in the Region.

RCM-R-0007 Number of patents applications

• Investments of public R&D institutions for joint promotion of (a) their intellectual property rights, (b) their research results, (c) their services, (d) their laboratory or research infrastructure to enterprises, inside and outside the Region.

• Activities to encourage intellectual property rights protection by academic and research institutions in international patent offices.

RCM-R-0008 Enterprises that invested funds in ICT


• Partnerships or collaborations of enterprise groups with academic or research institutions for applied research to solve problems of common interest (process or organizational innovation) or for joint new product development.



RCM-R-0009 Fixed capital investments on smart specialisation sectors

• Investments of public R&D institutions for joint promotion of their laboratory or research infrastructure to enterprises, inside and outside the Region.

• Investments of public R&D institutions for development of common experimentation structures with business.

RCM-R-0010 SMEs introducing product or process innovations as % of SME (IUS)




• Investments of public R&D institutions for joint promotion of (a) their intellectual property rights, (b) their research results, (c) their services, (d) their laboratory or research infrastructure to enterprises, inside and outside the Region .

RCM-R-0011 SMEs innovating in-house as % of SMEs




• Investments of public R&D institutions for joint promotion of (a) their research results, (b) their services, (d) their laboratory or research infrastructure to enterprises, inside and outside the Region.

RCM-R-0012 Sales revenue coming from new to the market innovations as a percentage to total

turnover of all enterprises




RCM-R-0013 Sales revenue coming from new to the company innovations as a percentage to total

turnover of all enterprises




INVESTMENT PRIORITY 3a: Promotion of entrepreneurship by exploiting

new ideas


The Region of Central Macedonia (Kentriki Makedonia) has set the vision to become by the year 2025 an

innovation hub for the wider region of South East Europe through the maintenance and enhancement of

important human capital with competent qualifications in the fields of research and technological

development, the strengthening of the cooperation between the areas of knowledge and

entrepreneurship, and the development of innovative environment in order to exit the economic crisis

and create new jobs, based on innovation, competitiveness and extroversion.

More specifically for this priority, the objectives can be summarised as follows:

• Transition of businesses and working force to the new era facts and conditions and normalisation of the painful consequences caused by the financial crisis, especially in the labour market

• Support to the dissemination and exploitation of Key Enabling Technologies • Support to the creation of innovative companies • Strengthen the productivity and competitiveness of SMEs

• Maintain and enhance the region’s human capital that acquires or is able to develop innovative characteristics

• Reduce the region’s Brain Drain through the creation of new jobs • Support the mobility of researchers to businesses and enhance the cooperation of research and

business along with knowledge and technology transfer to businesses • Bridge the gap between research/academic and business community for the benefit of the

competitiveness of the region’s SMEs



The Region of Central Macedonia (RCM ) is the largest in area and the second largest in population and

economic activity of the Greek regions, occupying the north central area and combining elements of

centrality with bordering nature ones.

From development perspective, the RCM is lagging behind compared to whole country and the EU. In

2011 the region’s GDP amounted to 78 % of Greek average and 62 % of EU average, ranking RCM as less

developed regions. Due to the prolonged recession the growth differential of RCM by the EU average

has further increased. Various reports and studies underline that this weak performance is due largely

to the slow pace of restructuring from low to medium technology intensive towards higher-tech

manufacturing (only 12% of firms are in the medium-high to high tech sectors). Equally, although the

regional economy is increasingly dominated by services (accounting for 74.5% of the regional added

value in 2009 while the contribution of the sector of industry and construction was of 21% and that of

the agricultural sector of 4.5%, declining over the past decade), the bulk of activity is in fields such as

retail trade, tourism and transport services despite efforts to create or attract knowledge intensive

services.

In terms of industrial specialisation, the manufacturing sector remains highly specialised in certain

medium-to-low technology and labour-intensive sectors, such as the food industry, textiles & clothing,

non-metallic mineral products and furniture, with lower productivity than the national average.

However, there are a number of new knowledge-intensive sectors like bio-agriculture, bio-medicine, and

ICT that seem promising but still attract relatively limited investment.

The business specialisation pattern and industrial structure (dominance of smaller family run firms) is

clearly a major explanatory factor for the, relatively, weak regional performance. In terms of innovation

investments, public and higher education R&D expenditure are close to the national average, however,

business R&D expenditure is low at only 0.2% of GDP or 25% of GERD. In the field of Research,

Technological Development and Innovation (RTDI ) , it is observed that despite considerable research

and educational infrastructure , centres of excellence , incubators , technology parks and research

potential (especially in the public sector) , the performance of RCM is considered low.Slightly above

Greek average, the share of Human Resources in Science and Technology (HRST) in the region increased

from 15% of the regional workforce (active population) in 2000 to 23.7% in 2011, which represented

17.9% of the HRST in Greece. The HSRT in the region is above the Greek and European average

regarding the graduates or candidates of higher education per head aged 15-74 (including students of

HEI). This means that RCM has a strong human resources stock with qualifications that can potentially

support innovative activity. The high stock of human resources with appropriate qualifications appears

to be non exploitable if one takes into account the structural characteristics of regional employment

that seems to be based on low knowledge intensity manufacturing and the primary sector. This finding is

confirmed by the good – in relation to all European region- presence of researchers in the fields of

government and higher education.In addition, there is a lack of interconnection – correlation of research

with the productive profile of RCM. There’s low interface and cooperation between research centres

and universities on the one hand and local business of another, despite a significant number of

researchers in RCM (4.565 full-time researchers in 2011 equivalent to 18.5% of the country’s total,

under the Eurostat).Finally, as concerns the Competitiveness Index of European Regions 2013 processed

by the Joint Research Centre of the European Commission in Seville , Central Macedonia is ranked 2nd in

the country and in the 238th position among the 273 EU regions.


Result indicators Baseline Values

SMEs introducing product or process innovations as % of SME (IUS)

2,25% (for new only & start ups)

SMEs innovating in-house as % of SMEs N/A

Sales revenue coming from new to the market innovations as a percentage to total turnover of all enterprises

N/A

Sales revenue coming from new to the company innovations as a percentage to total turnover of all enterprises

N/A

Gross value added of the strategic RIS3 sectors 12.358 m€ (for all sectors)

Greek exports of the strategic RIS3 sectors 3.680 m€ (all sectors excluding petroleum)

Percentage of innovative SMEs to total RCM N/A

Venture capital funds investments as % of GDP N/A


The RCM has a critical mass of research centres, academic structures and centres of Excellence, almost

all of them belonging to the public sector. Central Macedonia has a long history in bottom-up and

collaborative innovation policy planning with stakeholders’ involvement, starting in 1994 with the

Regional Technology Plan (RTP). The RTP steering committee of this plan was composed of stakeholders

from the private sector, academia and the public administration. The same stakeholders were involved

in RIS%20 (1999-2001), Excellence in Central Macedonia (2002-2003), and the Regional Innovation Pole

of CM (2006-2009) through which a formal Regional Innovation Board was set. A series of pilot projects

were designed and some of them scaled-up and funded by the Regional Operational Programme.

In order to boost the share of higher-tech industry and knowledge-intensive service, a number of

initiatives have been launched, including incubators such as THERMI A.E, which hosts over 31 high-

technology firms, and the Thessaloniki Innovation Zone (TIZ). However, it has been noted that the

development of TIZ has stagnated due to the failure of the stakeholders (including public administration)

to embrace the project, mobilise the necessary resources and create the necessary regulatory

environment for the concept to become functional.

Other intermediary bodies include institutions such as the Technology Park of Thessaloniki, , the Center

of Innovation Redistribution – PRAXIS, the Greek Centre for Technology Transfer and the European

Centre of Innovative Entrepreneurship. The intermediary bodies also comprise of four (4) incubators

(Incubator for New Companies – i4G, Incubator of Technology Park, Technopolis Thessaloniki and

Incubator THERMI SA, mentioned in previous paragraph). They also include the Liaison Offices of the HEI

of the region and the National Center for RTD.

One of the major efforts towards the development of partnerships between similar knowledge-intensive

businesses is Technopolis Thessaloniki mainly involving IT companies. It includes a High Technology

Business Park in which can be installed new economy enterprises, along with research and educational

activities. It also includes an ICT Business Incubator directly related to the Park, utilising existing

networks and partnerships. The vision of Technopolis is to act as a hub between high-tech enterprises

and attract investment of Greek and foreign businesses, creating new opportunities for growth.



The Regional Operational Programme of RCM is in line with the investment priorities of the Thematic

Target 3: 3a, 3c and 3d.

The exploitation of knowledge in areas of regional interest and the priorities based on the Regional

Smart Specialization Strategy is reinforced. In addition to the ERDF funds, private funding tools as well as

alternative financing tools, depending on the stage of the life cycle of innovative enterprises, will be

seeked. The contribution of existing entrepreneurship incubators in the region is expected to be very

important in supporting the initial operation of new businesses. Examples of actions are:

• Strengthen investment plans for the establishment and initial operation of knowledge-intensive and innovative business

• Establishment of spin-offs by researchers from academic institutions or research centres. • Knowledge-intensive start-ups as spin-outs from existing business sectors.

The funding may be provided in two stages: (a) support for the first test of the viability of investment (as

an example might be the action PRAXE I of 3rd CSF) (b) support for the implementation of the

investment plan for the establishment and initial operation of the new innovative business.

In the above action categories the following investment plans are supported by priority:

• Investment plans falling into the priorities of intervention by RIS3 or helping improve integrated value chains with export orientation.

• Investment plans that show clear evidence as to their results commercial exploitation and in particular as to the possibility of exports.

Also, on this basis, a series of other actions will be implemented concerning:

• raising awareness, encouragement and mentoring for the establishment of small businesses by implementing innovative ideas

• education programs in entrepreneurship (e.g. organisation and management, development, marketing, business plan, finance, economic entrepreneurship)

• providing coaching and prestart support for new entrepreneurs • providing incentives for developing innovative business ideas • advice to SMEs by group of expert advisors on matters such as business innovation and

technology management , internationalization, cooperation and networking, financing, marketing, etc.

• lifelong learning and training of employees of SMEs to new technologies and ICT • validation of knowledge, skills and qualifications of employees based on recognised standards • informing/training of entrepreneurs for the necessary corrective and technological adjustments

The measures and the complementarities of entrepreneurship and Smart Specialisation actions between

ROP and OP COMP are clearly identified in OP COMP and, after completion of RIS3 (national and

regional), determine the implementation of actions during application, in both.


Mainly, the strengthening of entrepreneurship in strategic priority areas based on the principles of

smart specialisation (exclusively through the Thematic Objective 1 and prioritising for TO2 and 3) will be

supported by the resources of Operational Programme Competitiveness (OP COMP) with the aim of an

integrated approach to addressing major development needs. In order to boost entrepreneurship of

needs and desired changes, the funding will be made by the ROPs.

Through the OP COMP there will be actions with a national or regional scope for the development of

businesses and entrepreneurship in the strategic priority areas of RIS3, aiming at:

• strengthening endogenous research and development in enterprises • developing partnerships between businesses and research institutions • developing and exploiting innovation • strengthening excellence in priority areas • enhancing extroversion and connection with respective EU policies, other

policies of the European Research Area and International Organisations

• strengthening human resources for research in priority areas • addressing similar needs from regional RIS3 in more than one region, to achieve economies of

scale

The OP COMP when being planned took into consideration regional priorities as highlighted by regional

strategies for smart specialisation. These strategies affected significantly the priorities of the respective

national RIS3. Through methodological analysis it is demonstrated that these strategies converge

extremely in thematic areas.

In particular, the actions to be supported under this investment priority are exemplified below:

• Developing new business ideas, explore their possible uses and application through new products and services

Strengthen and support companies to incorporate a new concept to production activities in order to

create new products and services. New ideas will bring added value to the final product and / or services

produced by the enterprise in sectors with prospects of growth (primarily on sectors of strategic

importance). Specific actions include:

• Viability Evaluation study of new products or services • Acquisition and installation of basic equipment, licenses / rights for production test • Develop pilot scale production

Also, particular emphasis is given on organisational innovation, marketing innovation and extroversion

activities. Specifically, the organisational innovation is associated with changes in technology used or the

expansion or diversification of production and markets.

Illustrative examples of organisational innovation are:

• Reorganisation of production processes, energy and raw materials saving • Human resource management, reward systems • Organisation of exports (products, markets, structures and processes) • Planning of pricing policy • Management of design, promotion and distribution of products

• Infrastructure hatching new business knowledge-intensive activities and incubators

Strengthen existing or create new infrastructure for the incubation of new knowledge-intensive business

activities and incubators for promoting innovative and commercial ideas to enhance business startups.

Enhance and support initiatives for the creation of new companies (start-ups) to be developed in sectors

with growth prospects. The incubators will specialise in specific business and technological priority areas

(ICT, Pharmaceuticals and Biotechnology, Energy saving and RES, agri- food industry). Strengthening

incubators will include a section “management costs” and a second part for enhancing fledgling

companies with venture capitals. It is estimated that each incubator will complete 5-6 business efforts

annually

• The financial support of business investments

Priority will be given to strengthening either through grants or through financial tools eg venture

capitals, business angels, investment funds, seed capital, early stage VC, etc., to businesses operating in

the nine (9) priority areas.

Concluding, priority will be given to areas where there is potential for extrovertion with capable and

flagship production for the country, which can be further increased in scale / size through the

cooperation of the parties involved along the value chain. The strategic areas, recognised and recorded

in the new development model of the country, will be strengthened as a priority and are as follows: the

agri- food sector, the energy sector, the environment sector, the ICT sector, the transport sector /

Logistics , the health sector / drugs, the sector of the materials / construction, the tourism sector and

the sector of cultural and creative industries.

3.3. Actions of OP AGRO

The agro-food sector is one of the strategic priority sectors through RIS 3 in RCM and one of the most

important sectors in our country however has a relatively low competitiveness, mainly due to the high

cost of production and distribution, in the low added value to product quality, packaging,

standardisation and penetration in foreign markets. It is characterised by small businesses, often

showing failure to invest in innovation, in research and technology to produce high value-added

products and services, therebybeing restricted to the transport of mature technology from abroad. In

the agricultural sector, particularly in the livestock sector, there is inability to achieve economies of scale

and investment in innovation and knowledge, both in the farming processes and investment due to

chronic structural problems of the farming. Also, there is a shortage of links among farms, research

centres and also small and medium enterprises (SMEs) operating mainly in agro-food sector.

As the cross-cutting oblectives of the OP AGRO are:

• Innovation • Environment protection (e.g. reduction of water consumption) • Climate change mitigation and adaptation,

the actions and measures set by the OP AGRO are mainly the following:

• Knowledge transfer and information actions • Co-operation: Strengthening links between applied and oriented research and the real needs of

the agro-food system and forestry, through the creation of connecting links and networking of all stakeholders (research institutions, consultants, farmers, enterprises in the primary, secondary and tertiary sector, consumer associations, environmental organizations etc.)

• Integration of innovation processes and usage of new technologies and environmentally friendly processes

• Exploitation of new technologies, which can indicatively include the implementation of new, innovative processes aimed at strengthening the competitiveness of enterprises in the primary production of agricultural products and in the food sector, as well as the search for new cultivation practices and production practices aiming at environmental protection and adaptation to climate change

• Strengthening the linksbetween agriculture, food production and forestryand research andinnovation, including the aimof improvedenvironmental managementand performance

• Establishment and operation of operational groups for agricultural productivity and sustainability that are established by stakeholders such as farmers, researchers, advisors, businesses and other organizations involved in agriculture, food and forestry (bio-economic innovations, product / service innovation)



The Strategic Approach of the RIS3 implementation in RCM includes the association of the internal with

the external environment and the Vision of the region. The methodology includes:

• Linking Regional Forces with the Opportunities and the Vision through Exploitation Strategies • Addressing the Weaknesses of the Region through Improvement Strategies

• The treatment of Threats in the Region through Response Strategies

Based on the above methodological approach, an analysis of the strategic approaches has been made

and concluded to the five Specific Strategies:

• SS1 – Common Long-term Strategic Approach RIS3 and targeted partnerships among members of the triple helix

• SS2 – Human capital empowerment towards innovation/ knowledge based on market needs • SS3 – Focus on strategic sectors of expertise, exploitation of Key Enabling Technologies (KETs)

and development of extroversion strategy • SS4 – Creation and Certification of an integrated support system to the Innovation Chain • SS5 – Creation of a Strategic Platform involving financial operators aiming at to smooth financing

of innovative actions & create culture of partnerships with the private sector, an attempt to leverage private resources


The regional policies in general are focused on support tools of the knowledge diffusion, given their

suitability to geographical proximity and accumulation of companies and organisations. Production tools

and Knowledge diffusion ones are mainly on the supply- side, while several regions introduce tools from

the demand-side of knowledge and refer to its utilisation. In order to serve the specific strategies

described previously, the actions/measures of RIS3 proposed follow the chain: i) Knowledge

development /production, ii) Knowledge Diffusion iii) Knowledge Utilisation, under which the policy

instruments are categorized.

Knowledge production/development

• Enhancement of human resources for RTDI • Enhancement of Public Private Partnerships (PPP) for innovation

Knowledge diffusion

• Innovation vouchers • Researchers mobility programmes to enterprises

Knowledge utilization

• Incubators of innovative companies • Innovation Benchmarking • Support of creativity, design and planning • Provision of services for innovation enhancement (entrepreneurship support and guidance) • Public procurement for innovation


Output indicators Baseline Value Target Value (2023)

Number of enterprises that are subsidised

90

Productive investment: Number of new enterprises supported

90

Subsidised existing enterprises for the development of new products

N/A

Enterprise ventures that are supported by incubators

N/A

Result indicators Baseline Value Target Value (2023)

SMEs introducing product or process innovations as % of SME (IUS)

2,25% (for new only & start ups) 5,50%

SMEs innovating in-house as % of SMEs

N/A

Sales revenue coming from new to the market innovations as a percentage to total turnover of all enterprises

N/A

Sales revenue coming from new to the company innovations as a percentage to total turnover of all enterprises

N/A

Gross value added of the strategic RIS3 sectors

12.358 m€ (for all sectors) 15.433 m€

Greek exports of the strategic RIS3 sectors

3.680 m€ (all sectors excluding petroleum)

5.340 m€

Percentage of innovative SMEs to total RCM

N/A

Venture capital funds investments as % of GDP

N/A



The entrepreneurship, especially in knowledge-intensive and technology industries, is an important

factor in achieving strategic goals of the RIS3 and to improve the competitiveness of the regional

economy. The rate, however, of young innovative enterprises to all companies, is still very low in RCM.

The region, after implementing the planned actions, expects that by 2023 the following results will be

accomplished:

• Improvement of the business environment and encouragement of youth entrepreneurship• Increase

in the number of start-ups with priority for sectors highlighted by RIS3• Enhancement of the level of

economic exploitation of innovative ideas through their conversion into marketable products / services•

Strengthening the regional economy specialisation in sectors with comparative advantages and thus

increase the competitiveness and extroversion• Support to the employment of highly qualified scientific

personnel


The Smart Specialisation Strategy for the region is very ambitious and sets specific targets in order to

accomplish the region’s vision towards 2020. The region has great potential to develop specialisation in

more than one sector. The new programming period provides an opportunity to run and finance

regionally more focused actions. The region of Central Macedonia has a much longer history than most

Greek regions of analysing the potential of innovation and of monitoring innovation performance and

programmes. With Monitoring and Evaluation the verification of the state of implementation of

activities will be accomplished and also the assessment whether and how strategic goals are met. In

order to perform evaluation, it is essential that objectives are clearly defined in a RIS3 in measurable

terms.

Taking into account that the proposed actions will be implemented, the vision of Central Macedonia will

be fulfilled and through this, the Region aims at the exit from the economic crisis, the restoration of

social cohesion and sustainable development, allowing citizens a better quality of life. In other words,

Central Macedonia will aspire and promote an open and innovative region, characterised by:

• Excellence and extroversion: the pursuit of excellence and targeting exports of products and services are the cornerstones of any initiative and investment.

• Exploitation of comparative advantages though specialisation: moving from horizontal initiatives and investments towards initiatives and investments that support selected technologies and developmental options.

• Exploiting the capabilities of human resources and the high concentration of research and technology in academic and research centres.

• Open city: the Metropolitan character of the Thessaloniki as central regional hub, its connections with the Greek and Balkan hinterland and the Black Sea region, indicates the way for the opening of the city at all levels (cultural, business, social).

6.3. Effectiveness of policy instruments

The Smart Specialisation regional strategy creates a favourable framework compared to the past and

new policies and policy instruments can be more effective in this framework. The exploitation of

comparative advantages of smart specialisation: moving from horizontal initiatives and investments

towards initiatives and investments that support selected developmental options, can materialise the

vision of the region of Central Macedonia that is encapsulated in the phrase: a “Region of Innovation

and Equitable, Sustainable Development, a Key Hub in South East Europe”.

The main issue of the RIS3 is how it will foster synergies between different policies and strategies

However, in order to maximise the chance of synergies between policies and funding sources the

following are suggested:

• Promote a culture of systemic innovation and synergy between the public and private sector. Systemic innovation at the regional level may include: (1) a regional financial competence, both private and public, and financing institutions for innovation in the form of venture capital and business angels, (2) a cooperative culture, associative disposition, quest for consensus would be expected to be stronger in a regions displaying systemic innovation, whereas a competitive culture, individualism, “not invented here” mentality would be typically non-systemic and weakly interactive, (3) trustful labour relations at the company level, shop floor cooperation, mentoring, open transactions and knowledge exchange; and (4) monitoring, consultation, delegation and networking propensities among policy makers.

• Promote Public-Private-Partnerships as central implementation instrument of the RIS3 and regional OP. The PPPs should be understood in creative ways, as cooperation between public organisations and companies in which the public domain sets out the terms of collaboration and provides funding for framework conditions, while the private sector takes on management and assures long term operation of the initiative.

• Select innovation initiatives and projects on the basis of sustainable business models. Viability should be the most important factor for selecting innovation projects and soft research and innovation infrastructures.

INVESTMENT PRIORITY 3c: Creation of advanced skills to develop products

and services


The investment priority ‘supporting the creation and extension of advanced capacities for product and

service development’ (3c) sets out to increase the growth capacity of small and medium sized

enterprises. In other words the main target of this investment priority is to support SMEs to grow in

regional, national and international market by developing competitive products and advanced services

of high value and thus achieving the economic development of Region of East Macedonia and Thrace.

The support provided through this Investment Priority will help small and medium sized enterprises to

develop their capacity. This will look at productivity drivers, including the technological and business

infrastructure and finance that will be required to ensure that those small and medium sized enterprises

with the potential to grow can do so. This will include strengthening supply chains to take better

advantage of globalisation by attracting high growth and innovative small and medium sized enterprises

where they can introduce new high value added products or services. The objectives are to improve

their productivity, help them grow and create jobs.

Under this Investment Priority indicative actions to be supported by European Regional Development

Fund may include but are not limited to:

• Provision of advice to develop new business models or higher quality products, processes or services;

• Advice to improve business processes and workforce development; • Advice and support for supply chain interventions to strengthen and grow the domestic supplier

base;

• Provision of advice, consultancy support, mentoring, peer to peer support, and support for collaborative ;

• Grant finance for business to invest in products, process and service improvements; • Provision of independent access to finance advice; and • Provision of land and premises for employment sites, including business incubation, managed

workspace, or grow-on space.



Productivity in small and medium sized enterprises in RCM lags behind compared to the entire country

and the EU. In 2011 GDP per capita of the RCM is 78% of average of Greece and 62% of EU average,

ranking RCM in less developed regions. Because of the prolonged recession the growth deviation of RCM

by the average of the EU has further increased.

The production system shows high concentration in a few branches of industry and primary production,

which are branches mainly labor-intensive and capital-intensive, as well as in consumer care services,

and low concentration in business dynamic support services or in export services (excluding tourism and

transport). In the field of Research, Technological Development, Innovation (RTDI), it is observed that

despite considerable research and educational infrastructure, centers of excellence, incubators,

technology parks and research potential (especially in the public sector), the performance of RCM is

considered to be low. In the field of ICT, in recent years, the RCM has made significant improvement.

However, the possibility of business financing from financial institutions to use ICT is considered

unsatisfactory. In the area of Rural Production and Fisheries, the RCM has to show considerable maturity

and penetration of its products in international markets. There are, however, significant margins for

quality improvement, innovation and promotion of standards and marketing systems. The development

of tourism in the RCM, makes it one of the most developed areas of the country, but with growth

potential in the direction of quality and diversified tourism product. The development of tourism in the

RCM, makes it one of the most developed areas of the country, but with growth potential in the

direction of quality and diversified tourism product.

The RCM is facing crucial competitiveness and entrepreneurship issues and a number of structural

weaknesses. Due to the economic crisis, the problems of exit of enterprises from production and trade,

decrease in investments, the transfer of a business abroad and finally the decline of the number of

productive enterprises are intensely. In RCM there is a timeless recession productive sectors of

manufacturing and agriculture and construction, and, in parallel, with the reduction of domestic

investment, very low is the degree of foreign direct investment.

RCM’s economy relies mainly on SMEs, but which are found mainly in traditional industries with low

productivity, innovation and competitiveness. The level of production of goods and knowledge and

technology-intensive services is particularly low, especially for SMEs. Also very low is the export

performance. In the period 2000-2011 the average annual change in exports was -1.48%, and despite

the drastic decline in imports after 2009, the trade balance of RCM is still in deficit (imports to exports

ratio in 2012 equal to 0, 71). The share of exports in total regional GDP in 2012 was below 9%, indicating

the low openness and competitiveness of RCM. In addition, limited the number of sectors with export

activities (eg 7 sectors account for 52% of total exports of the region, while only 1 in 4 manufacturing

enterprises shows exports’ activities). Due to the economic crisis, structural problems of SMEs, such as

difficulties in raising external funds to develop RTDI activities and their expansion into new markets have

been magnified.

SMEs need support to increase investment, the RTDI activities and their extroversion and develop new

forms of cooperation and networking at national and international level in order to build and exploit

economies of scale. To European Cluster Observatory (European Cluster Observatory, «Star Clusters in

Greece», April 2011) identifies the sectors in which they can develop successful models clusters, such as

the agri-food, clothing, tobacco and construction. Certainly, there is room for partnerships between

SMEs from different sectors of the economy (eg between tourism businesses and corporate sectors)


The justification for the selection the investment priority 3c is that RCM displays low level of productivity

and competitiveness, poor performance in the production of knowledge and technology intensive

products as well as in product/ service innovations and that low competitiveness and innovation deficit

within the whole sectors of the regional economy makes them vulnerable to develop in global

competition.

Region of Central Macedonia (RCM) produces 13.54% of the Gross Domestic Product (Eurostat data for

the year 2010, second largest region after Attica participating with 47.27%), but appears 9th in the

ranking of regions for product per capita and lags behind with 78.57% of the national average. The

primary sector contributes by 4.22% in total GVA, the secondary sector by 19.37% and the tertiary

sector by 76.67%. Across the country, the RCM provides the 20.8% of the total GVA of the primary

sector, the 17.8% of the secondary and the 14.5% of the tertiary sector.


RCM has a critical mass of research centers, academic structures and centers of excellence. More

specifically it has three universities (Aristotle University, University of Macedonia and the International

University), two Technological Educational Institutes (Thessaloniki and Central Macedonia) an important

public research center (CERTH), a series of research structures of ELGO-Dimitra and about 80

universities and public research laboratories, and research centers of excellence in bio-diagnosis,

advanced production systems, petrochemical processes, energy and environmental technologies,

information processing, virtual reality, transport safety.

Research bodies are mainly public bodies in RCM. There are many Intermediary bodies such as the

Technology Park of Thessaloniki, the Alexandria Innovation Zone of Thessaloniki, the Center of

Redistribution Innovation – PRAXIS, the Greek Centre for Technology Transfer, the European Centre of

Entrepreneurship Innovation, the Interconnection Offices of educational and research institutions, and

the National Center for RTD.

The start-knowledge-intensive businesses in the Region congregate mainly in incubators i4G, Thermi,

Technopolis and the Thessaloniki Technology Park. The sectors in which these companies operate

include: IT, telecommunications and Internet, Telematics health, industrial computer applications,

biotechnology applications, medical devices, energy management, robotics, materials technologies,

chemical processes Technologies, Simulation thermodynamics and engineering processes fluid analysis

and optimization audiovisual, multimedia applications and augmented reality, providing specialized

financial and business information.

In order to boost the share of higher-tech industry and knowledge-intensive service, a number of

initiatives have been launched, including incubators such as THERMI A.E, which hosts over 31 high-

technology firms, and the Thessaloniki Innovation Zone (TIZ). However, the development of TIZ has

stagnated due to the failure of the stakeholders (including public administration) to embrace the

project, mobilise the necessary resources and create the necessary regulatory environment for the

concept to become functional.

While trying to improve the effectiveness of such initiatives, there is a need to rebalance innovation

support from new business creation to improving the innovation potential (absorption capacity) of the

broader base of existing firms.



Specific objective: 3c1- Increase in the rate of introduction of new / improved SME products and

services

This particular objective of the investment priority of supporting the creation and extension of advanced

capacities for product and service development aims at encouraging the integration of advanced

technologies in SMEs in all sectors (with priority to champion sectors defined by the methodology RIS3)

in order to produce new and / or upgrade of products / services. At the same time recognized that the

application of non-technological innovation can contribute equally to improving the competitiveness

through interventions in cost factors or increased business performance of an enterprise.

Examples of actions to be financed under the investment priority 3c1 include:

• Enhance business investment plans (priority sectors selected champions from RIS3 procedure) for the introduction of key enabling technologies. Key technologies according to GSRT are: ICT, nanotechnology, biotechnology, photonics, advanced materials.

• Enhance business investment projects in all sectors for the introduction of process, organizational or promotional innovations.

• Enhance business investment projects selected by the RIS3 sectors for the development and production of new products and services or for diversification and qualitative improvement of existing products.


The selection of actions that will be chosen in the specific investment priority should follow as a guiding

principle the desired characteristics for the new businesses development model, especially for

increasing employment in knowledge intensive business activities. These characteristics exhibit strong

growth prospects which contribute to the choice and in their adoption. Therefore, the choice of

beneficiaries and the intervention areas have a direct link with the following characteristics:

1. Positive results and financial perspective / business competitiveness 2. Extraversion (generated export activity) 3. Innovation / creativity (innovative new products and services and innovative operating

procedures) 4. A significant size in terms of turnover and employment / sufficient range of products for the face

of global competition

5. Targeting in “niche” global markets 6. Recirculation of resources in the internal market (maximizing the share of domestic value

added) 7. New companies (creation of new businesses) 8. Small footprint CO2, NO2, SO2, etc. / low environmental impact 9. Groups of companies / partnerships. 10. Products / value-added services (Premium brands)



The RCM by exploiting the resources of ERDF the programming period 2014-2020 aims to tackle the

crisis and restart growth, and to ensure the conditions for long-term sustainable development in the

Region and in the context of the Europe 2020 Strategy objectives. At regional level, the RCM, based on

economic analysis and analysis SWOT, identified the development potential and the gaps in

development, formulated its development vision, the main development priorities, and specific

strategies and objectives.

The Specific strategies of RIS3-RCM are:

SS1 – Common Long-term Strategic Approach RIS3 and targeted partnerships between members of the

triple helix

SS2 – Human capital empowerment towards innovation-knowledge based on market needs

SS3 – Focus on strategic sectors expertise, exploiting Core Technologies General Application (Key

Enabling Technologies / KETs) and development strategy of extroversion

SS4 – Implementation and Certification of an integrated support system the Innovation Chain

SS5 – Creation Platform Strategy involving financial operators and in order to smooth financing of

innovative actions Culture & create partnerships with the private sector, attempt to leverage private

resources

The strategy of RCM is also oriented towards strategic priority specialization sectors and horizontal

technologies.

Strategic priority sectors:

• Agro-food sector • Building materials • Clothing – Textiles • Tourism sector

Horizontal support technologies:

• Information and communication technologies • Energy technologies

• Environmental technologies • Transportation and supply chain technologies

According to Regional Innovation Policy Guidelines of OECD for the various typologies of Regions the

following three main strategic directions are proposed:

• Build on existing strengths (boost of science / driven from technology or a mixture of both). • Support for the socio-economic transformation. • Recovery of the lost ground (catch-up) towards capacity building based on knowledge.

For the characteristics of the RCM (high intensity of the primary sector and manufacturing low-

technology intensive, national EFF pole) a mixture of strategies is proposed: a) Support the socio-

economic transformation and b) recovering the lost ground (catch-up). To support the socio-economic

transformation in regions with structural problems and ‘structural inertia’ (structural inertia) and

features of deindustrialisation, indicative support strategies of absorbing knowledge and business

dynamics based on the maturity of development innovation policies at regional level are recommended

by the Guide of the OECD:

Strategies to support the absorption of knowledge and business dynamics

Maturity of development innovation policies at regional level

High Medium Low

-Local knowledge centers, branches of national knowledge hubs (emphasis on dissemination of research

results)

– Lifelong learning in enterprises

-Support Links with international production networks

-Regional fora identifying development opportunities in niche markets with high added value

-Promoting Innovation and entrepreneurship culture – Management initiatives and integrating

supply chains to address the fragmentation of efforts and resources

– Public procurement supporting innovation

– Restructuring technical education curricula

– Raising awareness of companies and stakeholders regarding the benefits and prospects of innovation,

entrepreneurship support actions -Support demand for innovation through actions such as

innovation vouchers, the placement of students and researchers in business

– Restructuring the curricula of polytechnics to new specialties

-Education of workers with low skill levels and unemployment

-Support Clusters with innovative perspective

-Support the integration of the region in international production networks

Respectively, for the recovery strategies of the lost ground the following examples of policies are

proposed, although it can be assumed that the majority of these policies have been applied in RCM and

similar structures have been created:

Strategies to support the recovery of the lost ground (catch-up) towards capacity building based on

knowledge.

Maturity of development innovation policies at regional level

High Medium – Low

-Regional offices strengthening entrepreneurship

– Life-long training and development of skills

– Student exchange programs and attracting talented students

– Incentives to companies for recruiting qualified staff

– Create centers of knowledge in traditional sectors (agricultural production and tourism) as branches of

national agencies

– Innovation support programs (intermediation of technology and entrepreneurship support)

– Interconnection of business support mechanisms with wider networks

– Support for research projects in traditional sectors of the economy

– Interconnection of companies and research institutions in the Region

broader networks of production – Innovation support programs through mediation, support

entrepreneurship, interconnection with trade and export agencies

– Attracting national investment in higher education and vocational training

– Promote national lifelong learning programs for enterprises

– Involvement of regional operations at external production networks

– National infrastructure investments for enhancing interconnector


In general the regional policies focus on support tools for the diffusion of knowledge, given their

suitability in geographical proximity conditions and aggregation of businesses or institutions. The tools

of production and diffusion of knowledge is mainly on the side of providing knowledge (supply- side),

with several regions importing tools from the demand side of knowledge (demand- side) and refer to

knowledge exploitation.

The following table summarizes and standardizes regional innovation policy tools for the triptych

Knowledge Production, Knowledge Diffusion and Knowledge Exploitation. Based on this categorization,

for each selected Specific Strategy and specific objective of the Regional Strategy of Smart

Specialization, the composition of the mix policy and the corresponding typology of actions responding

more precisely to the specific characteristics, needs and options of the region is selected, and is

expected to maximize the efficiency and effectiveness of interventions.

Classification of regional innovation policy tools

Knowledge Production Knowledge Diffusion Knowledge Exploitation

– – Research funds, incentives, support and research funding

– Support research and technological centers

– Support for development of infrastructure

– Strengthening human resources for RTD – Technological parks

– Technology Transfer Offices and related programs

– Intermediaries for technology

– Researcher mobility programs to businesses and for attracting talented students

– Innovation Awards -Incubators for innovative businesses

-Support startups

– Innovation Services (business support and guidance)

-Education and awareness regarding innovation

-Public-private partnerships (PPPs) for Innovation

-Network and research poles – Innovation Vouchers

– Certifications and accreditations – Doctoral studies in industry

-Support creativity and design

– Benchmarking of Innovation

Poles of Competitiveness

Centres of Excellence

Creation of new research and technology parks and clusters

Guarantee schemes for financing innovation

– Cross-border research centers -Open source- open

science markets for

knowledge -Regional industrial policy

-Public Innovation procurement

As far as the sectoral and thematic priorities set by RIS3 of RCM, the Thematic Objective 3: Enhancing

the Competitiveness of Small and Medium Sized Enterprises and in particular the Investment Priority 3c:

Supporting the creation and the extension of advanced capacities for products, services and

development focuses mainly on actions corresponding to knowledge exploitation, and partly to

knowledge diffusion.



Effectiveness of actions implemented

Results expected by the Member States with the support of the Union of the actions supported by the

investment priority 3c are:

• Strengthening the competitiveness of SMEs by integrating new cutting-edge technologies. • Improved productivity by adopting process or organizational or promotional innovations • The production of new innovative products / services • Diversification towards tradable goods and services and exports • Upgrade the quality of products and services and the certification of these • Time improvement concerning the entrance of new innovative products / services on the

market

• The increase in production, employment and development of the entire regional economy

The main expected result of these activities is to enrich the offered mix of products / services by SMEs

in the Region with innovative new products and the reduction of their market introduction time.

Effectiveness of policy instruments

The priorities to meet the development gaps in the field of business competitiveness are:

• The strengthening of regional entrepreneurship with the support of establishment of new innovative enterprises

• Increasing the rate of production and market entry of new innovative products / services from SMEs

• Promoting sustainable clusters (clusters) of SMEs, either horizontal or vertical along selected value chains, focusing on production and distribution of innovative products / services and participation in international value chains with consequent improvement of the export performance of the regional economy

• To improve the competitiveness and productivity of SMEs through technological modernization and by improving their administrative capacity and their staff

• Strengthening entrepreneurship and investment in the tourism industry to diversify the tourism product, spatial diffusion and its interconnection with other sectors of the tourism cluster.

INVESTMENT PRIORITY 3d: Support capacity of SMEs to engage in

innovation processes


The priority aims to support the capacity of small and medium sized enterprises to grow in regional,

national and international markets and to engage in innovation processes. Under this Investment

Priority indicative actions to be supported by European Regional Development Fund may include but are

not limited to:

• Support small and medium sized enterprises to develop focused growth strategies and update or introduce new business models which will drive business performance;

• Advice and support for small and medium sized enterprises to enter, establish and expand in new domestic and international markets;

• Advice and support for businesses to become investment ready; • Provision of advice, consultancy, mentoring and peer-to-peer support to indigenous businesses

and inward investors (small and medium sized enterprises from outside the European Union who will move to England);

• Leadership and management coaching where connected to the development and implementation of a business growth plan;

• Support events, trade fairs and missions to enable small and medium sized enterprises to enter, establish and expand in new domestic and international markets;

• Provision of advice and consultancy on access to finance.

Activities will target domestic and foreign-owned small and medium sized enterprises, including Social

Enterprises.


Strong global competitiveness pressures and rapidly changing markets have increased the need for

businesses to maximise trade opportunities in both domestic and international markets. In order to

maximise growth and employment potential for the capital, businesses must maximise opportunities to

trade and boost exports by exploring new market opportunities.

Activity funded under this objective will provide tailored advice that responds to the needs of

established small and medium sized enterprises, according to their stage of development. Experience

from past programmes shows that a ‘one size fits all’ approach does not work effectively, because no

business is the same. European Regional Development Fund projects will be expected to localise and

intensify their support. One-to-one support and trade missions will be the preferred option although

targeted and specific workshops can be suitable depending on small and medium sized enterprises’

needs and requirements.


Based upon the analysis in Operation Programme: Competitiveness, Entrepreneurship & Innovation

NSRF 2014-2020 the landscape can be described by the following key elements.

• Last ranking of Greece in the development of business networks in EU28 • Low level of culture of cooperation among small and medium enterprises • Low extroversion of Greek enterprises • Limited domestic production of tradable goods by companies operating in strategic sectors of

the economy • Identification of need to create or improve mechanisms / support services for the extroversion

of businesses • Identification of need to improve the image and quality assurance of the Greek products • Need to improve access to business information and dissemination activities. • The need to increase the size of the business through partnerships and / or development of

business networks are alike, complementary or belong to the same value chain in selected sectors of strategic importance for the Greek economy to improve openness and value competitiveness in selected sectors Strategy importance of the Greek economy to improve the openness and competitiveness



Despite being the second largest Greek region (17% of the population in 2009), Kentriki Makedonia has

struggled to fulfil its potential to develop a more knowledge intensive business structure and to profit

from its position as a ‘business and cultural’ cross-roads in south-east Europe. Indeed, after a first period

of significant industrial decline in the 1990s, Kentriki Makedonia has been hard hit by the economic crisis

with already below average GDP and above average unemployment being further worsened by a surge

in unemployment since 2008. Various reports and studies underline that this weak performance is due

largely to the slow pace of restructuring from low to medium technology intensive towards higher-tech

manufacturing (only 12% of firms are in the medium-high to high tech sectors). Equally, although the

regional economy is increasingly dominated by services (accounting for 74.5% of the regional added

value in 2009 while the contribution of the sector of industry and construction was of 21% and that of

the agricultural sector of 4.5%, declining over the past decade, the bulk of activity is in fields such as

retail trade, tourism and transport services despite efforts to create or attract knowledge intensive

services.

However, a number of other internal and external factors have also created a ‘drag’ on growth

prospects, including competition from low labour cost neighbouring countries (Bulgaria) with Greek

companies in textile, clothing and footwear sectors even shifting production to such countries, the sub-

standard ‘trans-Balkan’ transport routes towards Austria and Hungary and delays in implementing major

infrastructure projects (e.g. Thessaloniki metro).

The business specialisation pattern and industrial structure (dominance of smaller family run firms) is

clearly a major explanatory factor for the, relatively, weak regional performance. In terms of innovation

investments, public and higher education R&D expenditure are close to the national average, however,

business R&D expenditure is low at only 0.2% of GDP or 25% of GERD. Slightly above Greek average, the

share of Human Resources in Science and Technology (HRST) in the region increased from 15% of the

regional workforce (active population)3 in 2000 to 23.7% in 2011, which represented 17.9% of the HRST

in Greece.

This scientific specialisation is only partly reflected in the regional industrial specialisation. The analysis

from the European Cluster Observatory of the relative regional industrial specialisation compared to

other regions within Europe shows that the region is indeed relatively specialised in the manufacture of

other food products; other retail sale of new goods in specialized stores; maintenance and repair of

motor vehicles and the manufacture of tobacco products. Nonetheless the region does not rank first in

Europe for any of these industries. Similarly, Avranas & Nioras (2011) underline that the manufacturing

sector remains highly specialised in certain medium-to-low technology and labour-intensive sectors,

such as the food industry, textiles & clothing, non-metallic mineral products and furniture, with lower

productivity than the national average. However, there a number of new knowledge- intensive sectors

like bio-agriculture, bio-medicine, and ICT that seem promising but still attract relatively limited

investment. The region has certainly made efforts to support ICT based development, for instance

through the Regional Innovation Pole. This sector is also one where clustering activity appears to be

strongest.


The actions planned for the period 2014 -2023 are focused towards the establishment of new

enterprises; support the development of start-ups and the finance of innovation risk taking business

ventures


• Creation of clusters in selected sectors of regional economy for the production and distribution of innovative product / services.

• Enhance the connection overlapping of the tourism sector with other productive sectors of Kentriki Makedonia such us: culture, health, agri-food, sea and other transports focused to enhance entrepreneurship and improve the competitive indicators of the tourism section in RCM

• Support the implementation of restructuring, product differentiation, technology development plans for all the enterprises.

• Support of the investments for the reduction of the production cost through the utilisation of technology and new innovative production methods and systems.

• Support business plans of all sectors for better efficiency, in production, reduce energy consumption, better resource utilization and distribution of products / services.

Action Form Units Financing ROP Central

Macedonia

SME research and innovation activities 10 2,000,000

Regional and interregional networking Projects 15 5625000

Infrastructures to SMEs or SME clusters 4 2995670

2 large clusters per sector- champion 8 12,000,000

Small projects provide technology transfer services 250

Vouchers for SMEs 500 1875000

Small clusters of value chain integration formations 80 8,000,000

Innovation Competitions 3 450,000

Strengthening existing and new SMEs provision of related services 10

Cooperation actions to strengthen SMEs with knowledge production organizations 40

5,000,000

Strengthening investment projects in foundation of knowledge and innovation-intensive businesses for

their establishment 100 15,000,000

Start-ups aid for development (second round of finance) 100 17000000

3.2. Actions of other sectoral programs

Action Form Units Financing other Sectoral

Programs


Regional and interregional networking Projects 15

Infrastructures to SMEs or SME clusters 4 1004330

2 large clusters per sector- champion 8 4,000,000

Small projects provide technology transfer services 250 7,500,000

Vouchers for SMEs 500 2625000

Small clusters of value chain integration formations 80 8,000,000

Innovation Competitions 3

Strengthening existing and new SMEs provision of related services 10 3,000,000


3,000,000


their establishment 100

Start-ups aid for development (second round of finance) 100 35,000,000

3.3. Actions of other financing schemes

Action Form Units EU & Other Programs

Resources


Regional and interregional networking Projects 15 1875000

Infrastructures to SMEs or SME clusters 4

2 large clusters per sector- champion 8

Small projects provide technology transfer services 250

Vouchers for SMEs 500

Small clusters of value chain integration formations 80

Innovation Competitions 3

Strengthening existing and new SMEs provision of related services 10



their establishment 100

Start-ups aid for development (second round of finance) 100 8,000,000


The policy instruments in RIS3 in Central Macedonia, for the investment priority 1a, are grouped in three

main categories: i) knowledge Development / Production, ii) Knowledge diffusion and iii) knowledge

utilisation.


In summary, the priorities of the intervention logic to address the capacity of SMEs to engage in

innovation processes and the development gaps in business competitiveness sector are:

• To strengthen regional entrepreneurship by supporting the creation of new innovative companies

• The increase of the rate of production and market introduction of new innovative products / services by SMEs

• To promote sustainable clusters of SMEs, either horizontal or vertical along selected value chains, focusing on production and distribution of innovative products / services and participation in international value chains with consequent improvement of the export performance of the regional economy

• To improve the competitiveness and productivity of SMEs through technological modernization and by improving their administrative capacity and their staff

• Το foster entrepreneurship and investment in the tourism industry to diversify the tourism product, spatial diffusion and its interconnection with other sectors of the tourism cluster.


For each category the proposed instruments are the following:

Knowledge Development / Production

• Enhancement of Public Private Partnerships PPP for innovation • Networks and research poles.

Knowledge Diffusion

• Innovation coupons • Certifications

Knowledge utilization

• Incubators of innovative SMEs • Support to start ups • Provision of services related to innovation (support of entrepreneurship and guidance) • Training and awareness raising related to innovation • Implementation of PhD in industry • Support of creativity and design • Benchmarking of innovation • Design and adoption of an industrial policy • Public procurement of innovation


OBJECTIVE 1.1: Creating critical partnerships mass and innovation actions

EXPECTED RESULTS: Upgrade of the research competitiveness of the research units. Promoting the

creation of clusters as business development catalysts. Facilitating entry of regional SMEs in

international (primarily) and domestic value chains.

INDICATIVE ACTIONS: Targeted collaborative research and technology projects to solve technological

challenges in the fields: food and agriculture; building materials; tourism; textiles & clothing

Networking & Infrastructure research institutions with international excellence capacity

Creation and Development of clusters

Collaborative innovation and interface with other value chains

ACTION FORM RESULT INDICATORS

TARGET VALUE

BASEVALUE ORIGIN INDICATORS OUTPUT

TARGET VALUE

Typical collaborative research project (see COOPERATION, GROUPS media etc.)

Expenditure on R & D in the business sector in relation to the local GDP

0.16 0.30 A. ELSTAT

Number of enterprises supported to introduce new products on the market

50

Targeted collaborative research projects with international partners to improve international networking and knowledge inputs.

Expenditure on R & D in higher education and government sectors in relation to the REGIONAL GDP

0.5% 0,7% ELSTAT Number of structures supported

15

2 large clusters per sector- champion

Value of exports (excluding petroleum)

3,680M €

5.340M € ELSTAT – SEVE

Number of enterprises supported

160

Small clusters of integrated value chains

Regional Gross Value Added (GVA)

12.358M €

15.433M € a. ELSTAT Number of enterprises supported

320

OBJECTIVE: 1.2: Transfer of research results to the market through financing of integrated proposals

Innovation coupons to companies for know-how supply

RESULT INDICATORS TARGET VALUE


TARGET VALUE

Expenditure on R & D in the business sector in relation to the local GDP

0.16 0.30 A. ELSTAT Private investment matching public support in innovation or R & D (€)

5,000,000

OBJECTIVE 4.1: Filling the gaps in the existing system with the creation of bridges – networks through

partnerships (internal & external) to increase the attraction of ideas, capital, and know-how

EXPECTED RESULTS: Improved cooperative links between the academic / research and business sectors,

technology transfer and strengthening of non-technological innovation in SMEs

INDICATIVE ACTIONS: Infrastructure and pilot units for the provision of technological services (design of

new products, packaging, etc.)

ACTION FORM

RESULT INDICATORS

TARGET VALUE


TARGET VALUE

Strengthening existing and new SMEs provision of related services

Regional Gross Value Added (GVA)

12.358 M €

15.433 M € A. ELSTAT Number of enterprises cooperating with research institutes

100

OBJECTIVE: 5.1: Smooth financing pf critical mass of innovative projects.

EXPECTED RESULTS: Improving the degree of economic exploitation of innovative ideas through their

conversion into marketable products / services

INDICATIVE ACTIONS: New Entrepreneurship (supporting the creation of new businesses)

Supporting start-ups development

ACTION FORM RESULT INDICATORS

TARGET VALUE

BASEVALUE

ORIGIN INDICATORS OUTPUT

TARGET VALUE

Strengthening investment projects in foundation of knowledge and innovation-intensive businesses

Ratio start-ups / young research intensive companies and technology in all sectors

2.25 5.50 GEMI -General Commercial Registry

Number of new enterprises supported

100

to be supportive of new businesses

Start-ups aid for development(second round of finance)

Number of new businesses survive five years after their establishment.

Targeting will be reviewed in the near future after the implementation of interventions

GEMI – General Commercial Registry

Number of new enterprises supported

100

OBJECTIVE: 5.2: Linking financial tools and instruments through the creation of a coordinating body at

the district level

EXPECTED RESULTS: Focus funding to young innovative enterprises that address targeted areas of

priority defined in RIS3

INDICATIVE ACTION: Financing and guarantee schemes for entrepreneurial innovative risk taking.

ACTION FORM

RESULT INDICATORS

TARGET VALUE


TARGET VALUE

Capitals to be invested

R & D expenditure of enterprises (compared with regional GDP)

0.16 0.30 A.ELSTAT Private investment matching public support operations (€)

25,000,000



The proposed actions will support the innovation capacity of SMEs and make them capable to develop

their operations in regional, national and international markets. It is expected by 2023 to have a

significant increase of exports of Greek enterprises, mainly in the nine strategic sectors of the country.

The localised production and distribution is expected to be exported to international markets. Another

expected impact from the initiatives actions in the specific priority will be the development of new

business models that will integrate international supply chains, to achieve economies of scale.


Monitoring refers to the need of verifying the state of implementation of activities. Evaluation refers to

assessing whether and how strategic goals are met. In order to perform evaluation, it is essential that

objectives are clearly defined in a RIS3 in measurable terms. A central task during the design phase of

the RIS3 is to identify a limited yet comprehensive set of output and results indicators and to establish

target values for each of them.

The past experience and capabilities for monitoring, evaluation and analysis of innovation programmes

and performance should be further solidified and embedded in both the new regional government

structures and the wider partnership. A The continuous monitoring of the implementation of the

strategy could be one of the ways to guarantee the effectiveness of actions implemented

6.3 Effectiveness of policy instruments

Some of the key factors that will create more effective the proposed policy instruments as it is proposed

in the review of the RIS3 strategy are the following: (1) to use recent cluster mapping data and

techniques to identify regional competences and assets; (2) to support and consult existing clusters to

meet the objectives of smart specialisation; (3) to replicate an effective industrial cluster development

approach to facilitate the rapid spread of good practice and ideas; (4) to seek and provide advice on

what methodology to use to develop clusters, and consider the creation of a cluster secretariat; (5) to

strengthen the cooperation of existing clusters to make connections to local, national and global value

chains; (6) to facilitate cross-clustering and the identification of innovation opportunities at the interface

between different clusters; (7) to create specialised one-stop-shops for the regional specialisations and

competences, preferably within existing structures to support mainly SMEs; (8) to develop further,

incubators and accelerators that provide wide range of services including training, business angel

networks, etc, (9) to ensure a qualitative upgrade of the tourism sector to develop the alternative types

of tourism (eco-tourism). Specific funding measures and support should be developed aimed at tourism

innovation and inter-linkages with other productive sectors (bio-agro-food, ICT, etc.); (10) to seek to

enhance the competitiveness of SMEs in the agricultural and fisheries sectors where aquaculture could

be a key objective of the rural development policy; (11) to deploy incentives for the fishing sector to

restructure fishing organisations, producers’ organisations and other stakeholders; (12) to ensure that

support in rural areas is directed to young people through support for business start-ups in the agro-

food/forestry sector.

Output indicators

During the conduction of this report the output indicators were not distributed during the following

years, until the target year. In the following table and charts the distribution is fictional and provided

only to display the charts that can be produced by the application.

Code Title Target value Target year Y2015 Y2016 Y2017

CO02 Number of enterprises receiving grants 90 2023 0 10 20

CO05 Number of new enterprises supported 90 2023 0 10 20

CO08 Employment increase in supported enterprises 175 2023 5 10 3

CO26 Number of enterprises cooperating with research institutions

400 2023 10 20 30

CO28 Number of enterprises supported to introduce new to the market products

40 2023 0 0 1

CO43 Number of participants in cross-border mobility initiatives

200 2023 0 20 30

T4204-1 Number of targeted and collaborative research projects in sectors of regional smart specialisation

50 2023 10 10 10

T4204-2 Number of horizontal supporting projects in public research centers

10 2023 2 2 0

T4204-3 Number of projects for technology transfer 250 2023 0 0 0

T4204-4 Regional and interregional networking Projects 45 2023 0 2 2

T4204-5 Small projects provide technology transfer services

750 2023 0 0 0

T4204-6 Strengthening investment projects in foundation of knowledge and innovation-intensive businesses for their establishment

300 2023 0 0 0

T4225-1 Number of supported research infrastructures 15 2023 3 5 2

T4225-2 Number of cross-boarding research center in agro-food sector

1 2023 0 0 0

T4225-3 Number of public laboratories’ infrastructure supported

50 2023 0 5 5

T4225-4 Support of private laboratories’ infrastructure 4 2023 0 1 0

T4225-5 Accredited analytical public laboratories for controls and product certifications and procedures

4 2023 0 0 1

RCM-01 Two large clusters per sector- champion 24 2023 0 1 1

RCM-02 Award of innovative ideas 3 2023 0 0 0

RCM-03 Business R&D expenditures (% of GDP) 0.3 2023 0 0.0025 0.0025

Code Title Target value Target year Y2015 Y2016 Y2017

RCM-04 Cooperation actions to strengthen SMEs with knowledge production organizations

120 2023 0 0 0

RCM-05 Creation of clusters 8 2023 0 0 2

RCM-06 Infrastructures to SMEs or SME clusters 12 2023 0 1 1

RCM-07 Innovation Competitions 9 2023 0 0 0

RCM-08 Number of new competitiveness institutes supported

2 2023 0 0 0

RCM-09 Public R&D expenditures (% of GDP) 0.7 2023 0 0.025 0.025

RCM-10 Scientific publications per year 3.8 2023 0.5 1 0.4

RCM-11 Small clusters of value chain integration formations

120 2023 0 0 0

RCM-12 SME research and innovation activities 30 2023 0 0 2

RCM-13 Start-ups aid for development (second round of finance)

300 2023 0 0 0

RCM-14 Strengthening existing and new SMEs provision of related services

30 2023 0 0 0

RCM-15 Support start-ups development 100 2023 0 0 5

RCM-16 Vouchers for SMEs 1500 2023 0 0 0

Figure 1 Sample chart Indicators per years

Figure 2 Sample Grouped per indicator chart

Figure 3 Sample Target completion chart

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