From Lisbon to Barcelona - linking R&D to innovation

and competitiveness

The Regional Path

Mr Richard ESCRITT, Director ERA Coordination of Community Activities

European Commission DG Research

ERA, its future and beyondSopron, 31.10.03

31/10/03 2

The Knowledge-based economy is here - with a

price Today’s advanced economies are knowledge-based. This stresses

even more the relevance of R&D for their development:• increasingly higher S&T content embedded in products and

services • need for more and better qualified human resources;• ICT Global Networks• Increasing pace of trade liberalisation and flows of goods and

services, pushing world economies to focus on more knowledge-intensive activities

• Under such pressures whole areas risk to become redundant - globalisation tends to increase regional disparities

31/10/03 3

Globalisation challenges

• Location choices for higher value economic investment are increasingly determined by market considerations (accessibility and economic framework conditions) rather than by public inducements and subsidies

• Regional policies need to understand the process by which international business functions spill over to lever up competitiveness in the indigenous business base

31/10/03 4

Bridging the Technology and Innovation Gap

(Building RTDI Capacity)• Unique experience makes the EU a world leader in the field: combined efforts

by the Structural Funds and the RTD Framework Programme• EUR 17,5 Billion earmarked for collaborative research in Europe by FP6 (2002-

2006) on a competitive basis, geared to S&T excellence, without geographic restrictions

• EUR 135 Billion earmarked for Objective 1 regions from the STRF (2000-2006). Out of the 218 BEUR allocated for all regions under the STRF, 9 BEUR are effectively allocated to RTDI actions (2000-2006). For 2004-2006, EUR 24 Billion earmarked for the New Member States

• Despite successful cases, significant delivery problems remain at regional and local level, as the operational routes to the knowledge economy are unclear or not sufficiently understood

31/10/03 5

Regional per capita GDP

Source: Eur.Innovation Scoreboard 2002

31/10/03 6

Business R&D expenditure

Source: Eur.Innovation Scoreboard 2002

31/10/03 7

RTD regional expenditure in the EU

•Source EUROSTAT 13/03/02Source EUROSTAT 13/03/02

31/10/03 8

High-tech patent applications per million of active population (y 2000)

•Source EUROSTAT 13/03/02Source EUROSTAT 13/03/02

31/10/03 9

The road from Lisbon to Barcelona goes through the

regional path• Central government efforts alone are not enough

to guarantee a successful take-up of the ERA process

• Regions need to play an active role in creating and using knowledge: they need to be supportive, pro-active; cultivate public-private partnerships, strengthen actors, provide infrastructure and means, and more generally, find ways to bridge the gap between knowledge creators and knowledge users

31/10/03 10

The concept of the Regional Dimension of the ERA

• Concept identified in all ERA related Communications as important / Special Communication on the Regional Dimension adopted 03/10/01 (COM(2001)549)

• Need to paying more attention to local and regional factors and operators, when thinking about research policy - a message primarily addressed to the Member States

• Involve more the Member States and the regions in a European Policy context

31/10/03 11

What can be done to enhance regional capacity in the knowledge economy

• Transform the economy into a learning one• Establish coherent development strategies based

on local comparative advantage / regional foresight• Set up the appropriate framework conditions for

R&D and innovation• Stimulate the take-up of new technologies

• Local partnerships emerge as leaders in this process. Universities may play there an important role

31/10/03 12

A strategy for integrating regions in the ERA

• Integrating research policy and regional policy • building research capacity in the regions.

Implementation of this strategy is based on a wide range of Community instruments:

– The Sixth Framework Programme for RTD (2002-2006), providing trans-regional co-operation opportunities

– Innovation activities undertaken at regional level under the Framework Programme, in conjunction with the Mainstream Activities as well as the Innovative Actions of the Structural Funds

– Longer-term structuring activities– Use of New Initiatives (ex. The Regions of Knowledge pilot

action, introduced in 2003 by the European Parliament)

31/10/03 13

The Regions of Knowledge Pilot Action (KnowREG)

• introduced in the 2003 Community Budget by the European Parliament (heading B5-513)

• implemented outside of the 6th FP, it has a budget of EUR 2,5 million and aspires to develop experimental activities involving networks of European regions (with the active involvement of universities, research centres, and the business community) to create "Knowledge regions", able to provide model regional implementations of the Lisbon strategy, that is, demonstrate the central role of knowledge in driving regional development.

31/10/03 14

• launched formally with a Call for Proposals • Covered two (2) basic strands: (1) Integrated Regional

Technology Initiatives (IRTI) and (2) Supporting activities (workshops and conferences). – IRTI sub-divided in three (3) parts: – (a) Technology audits and Regional Foresight – (b) University Driven Actions for Regional Development – (c) Mentoring Initiatives, where technologically advanced

regions would co-operate with less advanced regions (Objective 1) in a kind of "mentoring" partnership, for a more efficient innovation and technology transfer process.

– Projects had to have at least 3 partners coming from 3 different Member States.

Regions of Knowledge (ii)

31/10/03 15

Implementing the regional dimension through specific measures in FP6 (2002-2006)

• Regions as direct or indirect partners in the major new instruments (NoE or IP)• Structuring the ERA: Research and Innovation

encouragement and validation of local and regional initiatives encouraging trans-regional co-operation experimenting with new tools and approaches

• Strengthening the ERA foundations: the ERA-NET scheme: support for coordination measures at national or regional level / and also regional tech. foresight, benchmarking)

• SMES (collective / cooperative research)• Human Potential: special grants favouring participants coming from less

developed regions, in particular host driven technology transfer fellowships• Possibility of complementing the Framework Programme funding for Objective 1 partners

in successfully selected proposals. Money would come from the Structural Funds (ERDF). BUT: NOT COMPULSORY for ERDF / Respecting fully the scientific excellence criteria when selecting projects for funding; WITHIN THE LIMITS of the State Aids regulations.

31/10/03 16

Towards a Mutual Learning Platform

for the Regions• The Barcelona 3% Action Plan establishes

the concept of the Mutual Learning Platform (MLP)– building on existing activities– to produce a typology of RTDI growth

patterns– to measure regional RTDI performance– to stimulate a better use of regional foresight

for more efficient planning– to stimulate a learning process

1731/10/03

Net linksNet links

• http://www.cordis.lu/era/knowreg.htm (The Regions of knowledge Web page)

• http://www.cordis.lu/era/regions.htm (Regional Dimension of the ERA)

• http://www.innovating-regions.org/ (The IRE Network, Innovating regions in Europe)

• http://europa.eu.int/comm/regional_policy/themes/resear_en.htm (Structural Funds and Research / Innovation)

• http://europa.eu.int/comm/research/index_en.html (DG Research official home page)

• http://europa.eu.int/comm/research/nfp.html (The 6th Framework Programme (2002-2006)