National/Regional Policy Learning interplay – VINNOVA - Swedish Governmental Agency for Innovation Systems Göran Andersson goran.andersson@VINNOVA.se Region Värmland Lars Christensen Lars.christensen@regionvarmland.se National/Regional Policy Learning interplay – some effects of the VINNVÄXT-programme (Regional Growth Through Dynamic Innovation Systems)

Agenda From Distribution to Growth – a brief historic overview The VINNVÄXT program - a component in policy change A regional case Where to go – two activities under development

The VINNVÄXT program was introduced in this transformative situation REGIONAL GROWTH POLICY Growth vs Distribution Regional needs vs National sectorial needs Innovation vs Supporting existing structures The VINNVÄXT program was introduced in this transformative situation

VINNVÄXT 1. Sectorial, non-cluster approach 4. Innovative networks of clusters - National or trans-national scope - Supporting R&D, innovation and structural change to identify new specialisations and young, emerging industries within existing sectors - Triple helix collaboration, systemic strategy - Innovation policy (research, industry and regional policy) 2. Sectorial clusters - Local scope (administrative borders) - Supporting existing value-chains - Business networks/Cluster initiatives - Regional development and/or industry policy 1. Sectorial, non-cluster approach - National scope - Sector driven activities (often through industry associations) - Industry policy 3. Innovative intersectorial clusters - A new, functional geography (focus on economic flows), still a regional scope. - Supporting R&D, innovation and structural change (new specialisations) within existing sectors (intersectorial) - Innovation policy (research and industry policy) VINNVÄXT

So where do we go now? To be continued…

VINNVÄXT Regional Growth through Dynamic Innovation Systems National initiative to leverage on regional processes. Objectives Support the development of strong research and innovation environments (clusters) Stimulate systems of actors to enhance the innovation system in Swedish functional regions to an international level within specific areas of strength Be a catalyst for coordination of resources

25 plan. grants 3 winners & 7 dev. grants 4 winners 10 plan. grants CALL 2003 Competition, € 30 million 159 initial proposals 25 development initiatives 3 winners/7 runner-ups The Dahmén Institute - A process-support organisation -The national facilitators’ Network -Triple Helix management training CALL 2005 Innovation systems in early stages Competition, € 5 million Process support for formation 86 initial proposals 10 development initiatives, 3 mo preparation Triple Helix management training 26 Final proposals 5 potential winners 2006-8 4 full-scale winners 2008 PROGRAM DEVELOPMENT International knowledge transfer International benchmark 5 Pilots Process-support Triple Helix management training CALL 2004 Competition, € 30 million 23 proposals 5 winners 25 plan. grants 3 winners & 7 dev. grants 4 winners 10 plan. grants 5 dev.grants 5 pilotes 5 winners Planning, initiation & Pilotes Call for Planning grants Call 2003 Call 2004 Call 2005 phase 1 Call phase 2 Phase 3 Decision 080630 2001 2008 (2016) Sustainable growth in the region is the main objective. Strong Research & Innovation environments and renewal are in focus as well as International competiveness.. Regional leadership where industry, research and society/politics have a shared common vision. Changed attitudes and behaviour in Regional Governance . 10 years of support and regulary asessments and reconsiderations of work plans. Mutual learning based on a trustful dialogue, system perspective, process development and follow-ups. Growth effects also among other initiatives.

”New industry formation” ”Ny bransch växer fram” ”Triple Helix” MOBILISING Non profit Organisations Social movements Networks Systemic Renewal ”New industry formation” Systemisk Förnyelse ”Ny bransch växer fram” Regional Planning (RDP) R&D projects Business Development SPECIALISING ”Focusing”

VINNVÄXT Attractiveness -People -Companies -Money Effects Strategic level Changed attitudes and behaviour Regional Leadership Operative level Trust Knowledge creation ”Exploring” Commersialisation Activities ”Exploiting” New and growing companies, new knowledge Bridging activities

The Peak of Tech Adventure 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 The Peak of Tech Adventure The Biorefinery of the future ROBOTICS VALLEY Smart textiles Printed Electronics Arena GöteborgBIO – Biomed development in West of Sweden

Policy learning – Conclusions in 2006 Government Regional Government National Agencies Regional innovation systems Ministry of Industry Low level of policy transfer to other ministries Anecdotal and fragmentated policy learning No visible effects Positive image of VINNOVA Distorted view of VINNOVA’s core business No vertical policy learning No horisontal policy learning VINNOVA and other growth or innovation orientated authorities (e.g ISA, NUTEK) Distinct policylearning within certain departments No or fragmented learning in the entire authority Focus on growth, in-novation and compe-titveness. A systemic perspective Long-term perspective – from project to process No vertical policy learning (up) Strong vertical policy learning (down) Some horisontal policy learning New Triple helix formations for collective action Collective action for innovation and economic growth The formation of strategic and systemic Regional Innovation System’s Initiatives. Strong vertical policy learning (up and down) Strong horisontal policy learning County Council Municipalities Policy networks Systemic policy learning See above WHO WHAT EFFECTS POLICY LEARNING

Governmental Bill on ”Research and Innovation” Published last week ”The Governments considerations: The Regional work for growth should find forms for a continus development of cooperation between the regional work for growth and the national research and innovation policies. The dialogue between regional actors and concerned national agencies about the strategic work on research and innovation issues on a regional level should be developed” ”On national level, VINNOVAs work with the VINNVÄXT-program, … has contributed to strengthen the cooperation concerning knowledge based innovation in a number of regions.”

So where do we go now? VINNOVA will try to stimulate and support regions to improve their work with developing Regional Innovation Policies. Examples: Region Värmland & Northern Central Sweden Pilot Project together with Region Skåne, trying to develop a “Regional Peer Review for Innovation Policy” model

Some longterm VINNOVA engagements in the Region of Skåne ANTIDIABETIC FOOD CENTRE CIRCLE Centre for Innovation, Research and Competence in the Learning Economy

Five parts of the project– Milestones Start implemening strategy for Innovation and renewal. Sum up results and produce a strategy for continuation. Constructive critisism of foreign experts in different matters. Create a common picture of strengths and challenges for the RIS in structure and processes. Facts as common platform for analysis and valuation Implementation Strategy formulation Peer Review Selfevaluation Facts & Figures

Thank you !

Number of partners & stakeholders 2006=Black 2007=Red VINNVÄXT Number of partners & stakeholders 2006=Black 2007=Red Initiative NUMBER Contract partners Thereof Companies Thereof Society Companies Cat. 1+2 Researchers Innovation i Gränsland 6 (+25) 10 (+37) (25) (37) 2 3 64 112 87 55 Robotdalen 22 23 ? 8 9 11 11? 58 90 18 9 Uppsala BIO 25 27 12 21 4 4? 12+ 24+ 26 35 Process IT 14 16? 6 8? 6 6? 40 55 70 76 Fiber Optic Valley 43 23? 25 16? 5 5? 16 29 55 54 Triple Steelix 24 45? 6 27 12 12? 52 50 12 13 Hälsans nya verktyg 21 17? 8 9? 5 5 39 52 21 21? GöteborgBIO 8 9? 3 4? 2 2? 12 14 24 24 SUM Total 188 180 93 122 47 48 293 426 313 287

What is VINNVÄXT? A competition for regional partnerships –Companies, Universities and Politicians - A Triple Helix-based approach 3 calls, 12 winners so far The winners receive up to 1 MEUR per year for 10 years Regional co-funding of at least 50% Substantial process support Investment approach – yearly follow-ups, three year evaluations

Activities - Profile Research and networking Cluster expansion Innovation and technology Policy action Education and training Commercial cooperation

Programme Characteristics VINNVÄXT Programme Characteristics Competition format Long term commitment (10 years) Robust selection process Few winners but substantial grant Strategic research for regional industry Active learning process incl. support to applicants Opportunity oriented Focus on growth but new jobs are foreseen Value creation rather than cost reduction Use the capacity of both men and women Involve politicians Investment perspective Allows programme development (evolution) Programme management team

VINNOVA IS PICKING THE WINNERS What are we looking for? Existence of a regional partnership and strong leadership with a shared vision and with an ability to prioritise resources/activities/efforts. Universities, which profile their education and research, and the existence of researchers who are prepared to exploit their knowledge. An industry with an ability to identify future growth areas and markets. Academia Politicians Industry

VINNVÄXT Typical agreed financing VINNOVA grant 50% Remaining 50%: County administrative board, Municipalities, County councils mm Public owned companies och organisations Companies Universities and half the amount in cash and the other half in kind contribution Besides, the initiatives are often receiving additional in kind contribution from the partners and grants from the Structural Funds. Individual researchers and companies are often receiving funds from other sources, incl. VINNOVA.

VINNVÄXT VINNVÄXT Support Triple helix management course 6 months meetings with thematic focus Follow-ups & evaluation Annual reports with interviews and dialogue 3 years evaluation by International team Result & effect indicators Communication programme Learning projects in all initiatives & national level Initiating studies of common interest Gender issues Stimulation of internationalization Invest in Sweden Agency Connecting to other VINNOVA programmes

VINNVÄXT – effects Helps regions to go from words to action Competition format creates better coordination and priorities in the regions – ”non winners” continue Strategic research on companies’ terms Being a ”winner” gives credibility 10 year perspective gives reliabillity - makes companies interested Builds brands Creates cooperation between winners Increasing number of new ideas, products and companies Becomes a ”development arena” for companies Supports applications to other VINNOVA programmes

VINNVÄXT Effects What is the money used for? What does it take to win? At least 50 percent to R&D projects, (industry & research cooperation) Development organisation and process management Mobilisation Competence supply Brand creation Strategic work Follow-up What does it take to win? Good growth potential Common strategic idea Regional strength and leadership Strong R&D environment Renewal in focus All parties must contribute – Triple Helix Effects Helps regions to go from words to action Competition format forces regions to prioritise Strategic research on companies’ terms Clear coordination effect Strong role for regional politicians Growth in focus Gives credibility Builds brands

Most important activities today (for winners/non-winners) Creating a structural platform in the region (changing R&D strategies, restructuring incubators, facilitating for commercialisation etc.) Organisational development (new organisation, leadership, change management, strategy etc.) Trying to mobilise actors internally (in the region) and externally (in the functional innovation system) to strengthen the initiative Facilitating for new projects (demo- and commercialisation)

Why is VINNVÄXT a good example? VINNVÄXT is a strong brand (useful for the initiatives for co-branding) VINNVÄXT has attracted new types of applicants/competencies outside the ”traditional” network of applicants VINNVÄXT demonstrates that relatively low funding can generate high return Many of the initiatives that didn’t win still exists. Some of them are very ”well off” when it comes to financing from other sources – still with an high development potential. Many of the initiatives are evolving as important hubs in their region/area of competence/innovation system VINNVÄXT demonstrates the need for creating policy initiatives that are long term

General driving forces on a national level A growing interest in new theories explaining growth, competitiveness and innovation (e.g. Nelson & Winter, Rosenberg, Lundvall, Porter) Long-term economic growth in Sweden continued to be weak despite large investments in R&D (i.e. an increasing awareness that returns from Swedish R&D investments must be higher) A growing awareness on the need for policy coherence and co-ordination (a systems perspective)

General driving forces on a public authority level VINNOVA was a new public authority with a ”freedom” for testing new programs etc. A Director-General with experience from different Triple Helix spheres as well as from a successful regional change process (Blekinge/Karlskrona and ”Telecom City”). A number of competent, embedded individuals (staff) interested in developing new methods for supporting regional innovation systems for growth.

Policy learning – designing VINNVÄXT (1) The importance of: having a strategy for communication (i.e. the importance of branding); using a unifying concept and a common value-system (Triple Helix); long term activities (10 years) for attracting ”new” types of applicants (actor constellations) and new types of competences (e.g. experts and middle management from industry); the partnership approach – VINNOVA not only act as a program evaluator, also as a supportive partner (investor) internal workshops (and an initial ”open” climate for discussion); international benchlearning rather than ”mechanical benchmarking”; pilots (i.e. testing a model by interactive learning between the public authority and the initiatives).

Policy learning – designing VINNVÄXT (2) Policy learning from international benchlearning and the pilots: The importance of using calls (”If regions are to be competitive, why not let them compete”?); The importance of promoting regional leadership; The importance of using panels (consisting of actors from all parts of Triple Helix ) when selecting prospects and winners; The importance of providing extensive support to potential applicants and the winners.

Policy learning – on the RIS-initiative level Learning by writing The ability to use different types of analyses, forecasts, indicators etc. as strategic tools and means for communication internally, within the initiative, and externally (i.e. ”learning by writing”) Learning by fighting The ability to define roles, areas of activity and special interests and in that process not shy away from conflicts but rather trying to solve them by creating new solutions etc. (i.e. ”learning by fighting”)

Policy learning – implementing VINNVÄXT The importance of creating a structural platform for learning (e.g. by initiating interactive research, workshops); continuous process support (e.g. courses in Triple Helix management, coaching and tools for self-evaluation); follow-ups and assessment in dialogue; using independent international evaluators not embedded in the regional or national milieu; having the ability to re-engineer the program (i.e. to learn and ”un-learn”).

The most important lessons to learn from the VINNVÄXT-experience The existence of a strong regional leadership promoting renewal A shared vision (strategic concept) within a specific area of growth A functional definition of the region The development of robust research and innovation environments The development of strategies and resources for learning Knowledge and insight into business and development logic within the specific area of growth Strong commitment on the part of the companies The importance of a long term approach

Policy learning – challenges Changing mindset takes time Personal mobility within Triple Helix must increase since VINNVÄXT indicates that it facilitates double-loop policy learning and the use of policy learning as an integrating mechanism? Policy learning by ”fighting” (the existing resistance) must be facilitated. A prerequisite for renewal. Methods for finding and measures for supporting embryonic innovation systems must be developed Successful policy learning is lesson-drawing across (1) time (i.e. own experience) (2) space (other regions) and (3) system (i.e. policy transfer to other sectors). (1) seems by far the easiest and the most common

Other Cluster Initiatives, Examples - Georange, mining - iWood - Intelligent Vehicle Off-Road IGIS, Geographic Info System - Sports & events - Crystal Valley, LCD - Bio Fuel Region - Paper Province/TPA - Future Position X/GIS - Ljusdal CRM/IKT - Innovative food - Microwave Road - Open Arena Lindholmen - Promedes - Sustainable plastics - Bio medicine - Indoor Air Quality Cuture & media - Sthlm Bio Region Kista Science City, IT Experience - Food, experience Biotech Valley Information Design - Refine, manufacturing - Health Technology Alliance - Food manufacturing - PUCK, plastic boats - Sustainable Sweden South East K-märkt, culture - Kingdome of aluminium - Heavy Vehicles - Safety