Swedish National Agency for Innovation Systems

Innovating Through EU Regional PolicyCreating the Right Environment

Workshop 1BNurturing Local and Regional Clusters:

The Role of Public Authorities

June 12, 2006

Deputy DG Karin Markides

Identify the Characteristics of a National Innovation System

• The economy strongly internationally linked

• Multinational companies dominates the R&D-system (> 3% GDP)

• Small- and medium size companies invest very little in R&D

• Universities dominates the public R&D-system and they have a third task, to cooperate with companies and society (0.75% GDP)

• Small sector of Research-institutes (0.2% GDP)

• Government invests very little R&D-money in companies outside the military sector

Karin Markides 2006-06-12

SWEDEN

Depending Actor Groups

PPUP, Public Private University Partnership Developing innovation system is to make above efficient,

i.e. to make investment in R&D profitable. Identify bottlenecks and possibilities.

Knowledge based economy

GovernmentPublic sector

Business Research

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Private Capital

Communication

Provide proactive abilities for local, regional and national

innovation systems

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• Policy AnalysisNational Innovation Strategy (foresight, back sight, global outlook)

• NetworkingHard-closed, or soft-open network BenchmarkingLearning

• ClusterAgglomeration of similar stakeholders Competitive strength

• Functional ClustersInteraction of different stakeholdersEntangling process

The Non-linear Innovation Process

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0%

5%

10%

15%

20%

-1,0% -0,5% 0,0% 0,5% 1,0%

Source: WTO (2005), Institute for Strategy and Competitiveness, author’s analysis.

World Market Share, 2002

Change in World Market Share, 1997 - 2002

Cluster CompositionBaltic Sea Region Export Performance by Cluster

Marine Equipment

Production Technology

Forest Products

Automotive

Metal Manufacturing

Petroleum/Chemicals Furniture

Chemical Products

Telecommunication

Fishing Products

BSR overall: +0.031%

BSR overall: 5.55% Biopharmaceuticals

Prefabricated Enclosures

Heavy MachineryPower Generation Equipment

Analytical InstrumentsAerospace Vehicles & Defense

Tobacco

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Make unique strongholds develop from a bottom-up processes

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Functional Cluster

Sector Specific Demands andResearchInfrastructure

Regional Conditionsand Cultural Settings

Drivers for Success when Building Strongholds

BusinessResearch and DevelopmentPolicy/Public

IndividualsandLeadership

Unique Resources

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Targets on the Public Authorities Agenda

• Nurture an holistic view• Cut fragmentation• Recognize leadership• Catalyze coordination of resources• Reward sustainable growth• Drive attraction values• Provide long term vision• Utilize time windows• Increase mobilization

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Entangle stakeholders and keep dynamics going

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Development is good!Change is no good!

For development change is needed!!!

Entangling Phase

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Build attractive functional regions to critical mass

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Selected VINNOVA Actors Programs

VINN- Excellence-Centers ProgramStrong research and innovation environments in universities and research institutes

Research – excellence, dynamics, need-inspired

Industry – dedicated partners

VINNVÄXT (VINNGROWTH) ProgramFunctional clusters

Research profile –excellenceIndustry – competitiveness and cluster Politics and society – engagement and support

Key Actor ProgramProfessionalizing universities and research institutes

Technology/knowledge licensing and transfer Incubators and innovation centers

SME Program

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Success Factors for a Regional Innovation System

• Regional leadership for renewal • Shared vision/strategic concepts• Strong commitment from the business community• Identification of unique growth areas• Regional focus/prioritization• Strategic links to value added strongholds• Strong research and innovation cultures• Strategies and resources for learning• Insight into business and development logic

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Yearly program: 6-10 regions get 15 M€/y(+15 M€/y from region)First call 2002/2003 gave 59 proposals and 3 winners

UPPSALA BIOUppsala BIO is an initiative from the local biotech industry, the two universities in Uppsala, and regional development bodies. Its aim is to contribute to the long-term growth of the biotech sector in the region.

 

The coordinated action plan developed by all parties involved defines four strategic areas.

1. Uppsala BIO-X – the cross-disciplinary research effort for biotech projects 2. Secure the sector’s future needs for suitably trained people 3. Secure the flow of high quality innovations from idea to industry 4. Communicate the region’s competences to the world Madeleine

NeilRhiannonSanders

JonasÅström

Ludvika

Falun

Uppsala

Fagersta

Hudiksvall

Sundsvall

Ljusdal

Söderhamn

Härjedalen

Östersund

Kramfors

Umeå

Örnsköldsvik

Vilhelmina

Gävle

Åre

Strömsund

Skövde

Jönköping

Borås

Lidköping

Ljungby

Kristianstad

Karlshamn

Kalmar

Karlskrona

Oskarshamn

Gotland

Västerås

Eskilstuna

Katrineholm

Nyköping

Stockholm

Köping

Örebro

Skellefteå

Norrköping

Växjö

Linköping

Västervik

Nässjö

Vimmerby

Luleå

Överkalix

Kalix

Övertorneå

Gällivare

Pajala

Storuman

Sorsele

Arjeplog

Jokkmokk

Kiruna

Värnamo

Tranås

Älmhult

Avesta

Bollnäs

Lycksele

Arvidsjaur

Mora

Vansbro

Malung

ROBOTICS VALLEY

Steel Sheet Refinement

BIOMEDICINSK UTVECKLING I VÄSTSVERIGE

Provide seed capital with long term and sector specific knowledge

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Research in Small and Medium Size Companies

• Achieve international competitiveness• Become an attractive and visible supply company• Grow and develop within the country• Interact with research within university/institutes• Create jobs for academically trained people• Increase knowledge content in products, processes, people• Develop collaborations• Build networks and clusters

Present SME-programs in SwedenResearch&Grow 10 MEuro/ year (0.007, 0.05, 0.5 levels)VINN NU (20 x 0.03 MEuro/year)

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Make infrastructures become drivers and meeting places

for dynamics of change

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Research and Test Infrastructures

Use the international scene, making globalisation a possibility

and not a threat

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International Benchmarking and Learning

Strategic programs and pilots to nurture functional cluster development

NetworkingCross-boarder trainingOutreach trainingFunctional region workshopsSurrounding societyInnovation managementInnovation journalismInnovation process understandingBilateral programsThird country programs

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Challenge the investment to reach critical mass

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Process Support and Training A key factor for success

Dahmén InstituteSeminars for communicating concepts and ideasAnalysis and process support for planning and implementationActive learningStimulate mobility of academic educated and special competence people

TCI, the Competitive InstituteAllience of cluster practitioners to foster cluster-based development

Baltic Sea InnitiativeNetwork of innovation system national agencies in northern Europe

Competence Centers in Innovation System ScienceCESIS - Centre of Excellence for Science and Innovation Studies, KTHCIND - Centrum för studier av innovationer och näringslivsomvandling, UUCIRCLE - Centre for Innovation, Research and Competence in the Learning Economy, LURIDE - R&D, Innovations and Dynamics of Economies, CTH

Functional Region with Nodes of Complementary Strength

Lifescience – IT

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Production

ICT

BiotechnologyClinical science

Preclinical science

Lessons Learned on

Key Requirements

• 10 years – Long Term Investment• Companies Involved from Start• Brand Creation• Mobilization• Strategic Evaluations• Scaleable Strategy

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