Smart Specialisation and the synergies between Cohesion policy

and the Horizon 2020

FINANCIAMENTO EUROPEU PARA A CIÊNCIA E A INOVAÇÃO: DESAFIOS E OPORTUNIDADES EM PORTUGAL

19 de Abril de 2013

Luisa Sanches

Policy Analyst

Competence Centre Smart and Sustainable Growth

DG Regional and Urban Policy

Cohesion Policy

RIS3 and crisis

The European Union is building a three tiers approach for exiting the crisis:

• Fiscal and financial consolidation

• Structural reforms

• Growth stimulation through targeted investment - without growth, there will be no successful exit out of the crisis: Cohesion Policy (ESI Funds) , Horizon 2020 and RIS3

R&I EU Funds are increasing because they are needed

• In nominal terms, the annual EU funding of R&I has been multiplied by 18 over the last 25 years, thanks to a considerable increase in FP funding (annual x 9) and to a dramatic increase of Structural Funds for R&I after 2007.

• Structural Funds now represent slightly more than half of EU funding to R&D and innovation.

20/03/13 EC DG RTD.C.5 DC 4

R&D investment: fuel for the economy

4

Why do we need synergies?

• Currently over 8% of the national civil R&I budgets in EU-27 stem from the EU R&D Framework Programme and another 8% from the Structural Funds.

• In most EU-12 Member States, Structural Funds represent 60 % of the national R&D budget

A fair system for all EU regions (eligibility simulation)

3 categories of regions

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

< 75% of EU average GDP/capita*

*index EU27=100

75-90% > 90%

Canarias

Guyane

Réunion

Guadeloupe/ Martinique

Madeira

Açores

Malta

Less developed regions

Transition regions

More developed regions

Cohesion Policy

European Council: € 325 billion for 7 years:

20/03/13 EC DG RTD.C.5 DC 7

Why do we need synergies?

• The Budget Review in 2010 and the EP asked for a clear division of labour between Research and Innovation and Cohesion policies

• Horizon 2020 and the ESI Funds have different but complementary objectives. Horizon 2020 focuses on excellence and Structural Funds on regional growth and jobs.

How will synergies be reinforced?

• • The main key to unlocking any synergies lies in an enhanced collaboration between national and/or regional managing authorities for cohesion policy and the authorities and bodies responsible for implementing Horizon 2020.

• • Facilitating synergies does not mean that Structural Fund can substitute national co-funding to Horizon 2020 projects.

How will synergies be reinforced?

• Inter-Service Group on synergies between EU funding sources supporting Research and Innovation (R&I)

• The Services of the Commission are preparing guidelines for assisting national and regional authorities in promoting these synergies, taking into consideration the objectives and procedures of these policies.

How will synergies be reinforced?

ESIF projects enabling Horizon 2020 projects (“upstream”)

Horizon 2020 projects feeding ESIF projects (“downstream”)

The devil is in the detail….

The PT COMPETE (2007-2013) is a good example to follow

The Synergies and Smart Specialisation Matrix

ESIF Funds

HORIZON 2020 TOP DOWN RESEARCH AND INNOVATION PRIORITIES INFLUENCING NATIONAL AND REGIONAL PRIORITIES

THEMATIC CONCENTRATION FOR MOST ADVANCED AND TRANSITION REGIONS FOR ALLOCATING 80% OF THE ERDF MONEY FOR 4 OBJECTIVES: R&I, ICT, SME COMPETITIVENESS AND LOW CARBON ECONOMY

THEMATIC CONCENTRATION FOR LESS ADVANCED REGIONS FOR ALLOCATING 50% OF THE ERDF MONEY FOR 4 OBJECTIVES: R&I, ICT, SME COMPETITIVENESS AND LOW CARBON ECONOMY

EXCELLENCE SMART SPECIALISATION EX-ANTE CONDITIONALITY Finding the good match between your science and technology system with your economic activities

INDUSTRIAL LEADERSHIP

SOCIETAL CHALLENGES

Why RIS3?

Cohesion Policy

R

eg

ion

al In

no

vatio

n S

core

bo

ard

20

12

http

://ec.e

uro

pa.e

u/e

nte

rpris

e/p

olic

ies/in

novatio

n/p

olic

y/re

gio

nal-in

novatio

n/in

dex_en.h

tm

"One-size-fits-all" is impossible!

… but every region has some asset that can make it special

in terms of innovation …

Search for more efficient + effective regional development policies, avoiding overlap, imitation, inward-looking, disregard for markets & demand, existing sectors only, inter-ministerial cleavages, wishful thinking …

Setting innovation as priority for all regions (Europe 2020) and improving innovation (strategy) process

Better use of scarce public resources, aiming for synergies between EU, national/regional and private funds (PPPs)

Driving economic transformation, focusing on regional profiles in global value chain

New academic insights and concepts in the fields of growth, competitiveness and innovation

Smart Specialisation: Why now?

Cohesion Policy

What is RIS3?

Cohesion Policy

Research &

Innovation Strategy

What is a RIS3?

Sourc

e: B

ooze &

CO

: The G

lobal In

novatio

n 1

000 S

tudy 2

012

“Research is the transformation of money into knowledge.

Innovation is the transformation of knowledge into money.”

Geoffrey Nicholson, 3M

Cohesion Policy

Innovation Strategies for Smart Specialisation

An economic transformation agenda based on 4Cs:

1. (Tough) Choices and Critical mass : limited number of priorities on the basis of own strengths and international specialisation – avoid duplication and fragmentation in European R&D Area

2. Competitive Advantage: mobilize talent by matching RTD + i capacities and business needs through an entrepreneurial discovery process

3. Clusters and Connectivity: develop world class clusters and provide arenas for related variety/cross-sectorial links internally in the region and externally, which drive specialised technological diversification – match what you have with what the rest of the world has

4. Collaborative Leadership: efficient innovation systems as a collective endeavour based on public-private partnership (quadruple helix) – experimental platform to give voice to un-usual suspects

«Innovation can not be dictated but it can be cultivated »

(The Federal Government and the growth of Regional Innovation Clusters,

J. Sallet et Al, 2009)

What can the priorities be? Emerging fields, based on related variety

18

Building

Fixtures

Forrest

Products

Heavy

Construction

Services

Construction

Materials

3. Construction

12. Chemical ProductsOil & Gas

Power

Generation

5. Power & Energy

Aerospace

Metal Manu-facturing

Production

Technology

Analytical

Instruments

Automotive

2. Mechatronics

Heavy

Machinery

Environmental

Tobacco

Processed

Foods

AgriculturalProductsFishing

1. Food

Pharma-

ceuticalsMedicalDevices

4. Life Science

Communic. Equipment

Information Technology

6. ICT

Jewelry

Leather

ApparalTextiles

Footwear

Lighting

Furniture

7. Fashion & Design

Publishing &

Printing

Hospitality &

Tourism

Sporting

Entertain-

ment

8. Experience Industries9. Transportation

10. Financial Services

11. Business Services13. Plastics

Health

CreativeIndustries

Horizontal priorities: • Education and skills • Human talent • Framework conditions

to entrepreneurship • SMEs access to capital

and services • Incubators • Universities engaging

with business • etc….

• European regions

can't compete worldwide on the basis of low costs

What is a RIS3? RIS3 Guide Content: ► Step-by-step guide to strategy development

► Suggestions for delivery

instruments ► Guidance for expert

assessment

See RIS3 guide: http://s3platform.jrc.ec.europa.eu/s3pguide Fact-sheet http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/smart_specialisation_en.pdf

Support for RIS3 development: • S3Platform:

Website

Guidance on process for development of RIS3

Analytical support

Organises "peer-reviews" of national / regional strategies

Conferences, working groups, trainings … • Informal expert reviews • Data material, e.g. Regional Innovation Scoreboard, ERAWATCH,

RIM, European Cluster Observatory, Digital Agenda Scoreboard, SME performance review, SSH studies, IPTS studies, etc.

• Good practices: e.g. RegioStars, European Entrepreneurship Awards …

• CoR, OECD, World Bank, JASPERS, EURADA, ERRIN, EBN, etc.

Cohesion Policy

See: http://s3platform.jrc.ec.europa.eu/home

BELGIQUE • Région de Bruxelles-Capitale • Vlaanderen • Wallonia ČESKÁ REPUBLIKA • Jihomoravský kraj • Capital City of Prague DEUTSCHLAND • Berlin • Brandenburg • Freistaat Sachsen • Weser-Ems • Sachsen-Anhalt ELLADA • Attiki • Crete • Eastern Macedonia and Thrace • Western Greece ESPAÑA • Andalucía • Aragón • Canarias • Cantabria • Galicia • La Rioja • Madrid • Navarra • País Vasco • Catalunya • Principado de Asturias • Región de Murcia • Illes Baleares • Extremedura • Castilla y León • Castilla-La Mancha • Comunidad Valenciana FINLAND • Kainuu • Oulu • Päijät-Häme • Uusimaa • PohjaEtelä-Pohjanmaa (Ostrobothnia) • Satakunta • Lapland • Etelä-Pohjanmaa (South Ostrobothnia) • Tampere region

FRANCE • Alsace • Aquitaine • Bretagne • Centre • Champagne-Ardenne • Corse • Guadalupe • Guyane • Languedoc-Rousillon • La Réunion • Limousin • Martinique • Nord-Pas-de-Calais • Picardie • Rhône-Alpes ITALIA • Lombardia • Marche • Piemonte • Puglia • Sardinia • Emilia-Romagna • Toscana • Umbria • Veneto • Sicily • Basilicata • Campania • Liguria LITHUANIA MAGYARORSZÁG • North-Hungarian Region– Miskolc • Észak-Alföld • Dél-Alföld MALTA NEDERLAND • Noord Nederland ÖSTERREICH • Niederösterreich • Oberösterreich POLSKA • Dolny Śląsk (Lower Silesia) • Lubelskie • Lubuskie • Mazowieckie • Podkarpackie • Pomorskie • Świętokrzyskie • Wielkopolska • Województwo Podlaskie • Kujawsko-Pomorskie • Łódzkie • Warminsko-Mazurskie • Małopolskie PORTUGAL • Alentejo (Alto, Baixo, Central e Litoral) • Centro • Norte • Região Autónoma dos Açores • Lisboa e Vale do Tejo • Algarve • Região Autónoma da Madeira ROMÂNIA • Vest SLOVENSKÁ REPUBLIKA • Bratislavský kraj SLOVENIA SVERIGE • Skåne • Västerbotten • Västra Götaland UNITED KINGDOM • Buckinghamshire • Cornwall and the Isles of Scilly • Kent • Northamptonshire • Northern Ireland • West Midlands • Wales • Devon NORWAY • Nordland SERBIA • Vojvodina

Reg

iste

r h

ere

: htt

p:/

/s3pla

tform

.jrc

.ec.e

uro

pa.e

u/r

egis

tration

4/5 July FARO – peer review session

Incubators

Universities & regional development

Broadband

Service innovation

Creative industries

Green growth

Entrepreneurial mind-set

Soon available:

► Clusters

► Social Innovation

► SME Innovation

► Public procurement for innovation

► Horizon2020, COSME – CSF funds

See: http://s3platform.jrc.ec.europa.eu/guides

Thematic guides

22

Cohesion Policy

• Oslo Manual (OECD) https://community.oecd.org/community/smartspecialisation

• Community framework for State Aid to Research and Innovation

• Regional Innovation Monitor: Analysis of regional innovation

policies and profiles http://www.rim-europa.eu

• ERAWATCH & Innovation Policy TrendChart: database of policy measures

http://erawatch.jrc.ec.europa.eu/erawatch/opencms

/research_and_innovation/

• PRO INNO Europe: best practices http://www.proinno-

europe.eu/best?field_best_project_nid=1433

• EURADA • Directory of "No-Nonsense" Activities to Build S³-minded Regions;

• All money is not the same , etc. http://www.insme.org/files/3019

• RegioStars awards & policy-learning database: http://ec.europa.eu/regional_policy/indexes/project_examples_en.cfm

• European Cluster Observatory http://www.clusterobservatory.eu/index.html

• Digital Agenda Scoreboard https://ec.europa.eu/digital-agenda/en/scoreboard

Other inspiration for innovation support

23

Information

• Proposals for the Structural Funds 2014-2020: http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm

• Amended proposal for the Common Provisions Reglation (11/9/2012): http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52012PC0496:EN:NOT

• RIS3 factsheet: http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/smart_specialisation_en.pdf

• S3 Platform: http://ipts.jrc.ec.europa.eu/activities/research-and-innovation/s3platform.cfm

• RIS3 guide: http://s3platform.jrc.ec.europa.eu/s3pguide

• Thematic guides: http://s3platform.jrc.ec.europa.eu/guides