1 Regional Policy contributing to smart growth in Europe 2020 Standard presentation Brussels, November 2010 Pierre GODIN Policy Analyst, DG Regional policy European Commission

2 Why do we need Innovation? Innovation is a cornerstone of the Europe 2020 strategy for meeting major challenges:  Globalisation: more competition, new markets,  Recovery from the crisis: investing in areas of high growth potential, boosting SMEs,  Societal challenges: demographic changes, health and ageing; climate change, energy & resources management. →The EU economy needs more innovation for smart, sustainable & inclusive growth

3 Is it important for the regions?  The capacity to develop new ideas and to turn them into innovative products and services is essential for the regions.  We need to raise the innovation performance of all regions to avoid an “innovation divide”.  A paradigm-shift in Cohesion Policy : 86 billion of which 65 billion are from the ERDF.  Today, this support and the innovation performance vary greatly across regions.

4 Regional Innovation Performance Index shows large variations between strong performing regions (darker shades) and weak performing regions (lighter shades)

5 Cohesion Policy Funding for RTD and innovation

6 The Communication in a nutshell  Aligns Regional Policy with the Europe 2020 priorities by putting it at the heart of delivering the smart growth.  Complements the ‘Innovation Union’ Flagship initiative by mobilising all regions to design 'smart specialisation strategies’ & deliver smart growth.  Aims at a more effective use of public funds (ERDF, FP7, CIP, national & regional funds) and at making more use of financial engineering.  Provides guidance to Nat./ Regional authorities to optimise the impact of ERDF on R&I, by inter- acting with key regional partners for innovation.

7 Mobilising all regions  All regions can and must contribute to achieving Europe 2020 objectives, if goals are to be met.  Innovation is as relevant for lagging regions as for leading regions close to the technology frontier.  No “one size fits all”: policy mixes need to recognise regional diversity, to be in line with regional needs and regional innovation capacity.  Regional Policy can unlock the growth potential of the EU by promoting innovation in all regions.  It can ensure across all regions complementarity between world-class research (FP7 / CIP) and innovation targeted to applications (ERDF).

8 Aligning Regional Policy with EU 2020  Improving framework conditions for R&I by aligning ERDF support with National Reform Plans.  Making the best use of the paradigm-shift in Cohesion Policy : 86 billion for R&I.  Optimising impact of the amounts still available for innovation (almost 2/3) and preparing post  Increasing synergies in the use of EU, national and regional funds, and trans-national cooperation.  Promoting efficient regional innovation systems: increasing R&I capacities and better linking Universities/R&D centres/businesses (SMEs)

9 Aiming at smart specialisation  Encouraging regions to adopt strategies focusing on priorities based on strengths, weaknesses and comparative advantages (critical mass).  Stimulating cooperation based on regional diversity and multi-level governance, for a better flow of knowledge avoiding fragmentation.  Developing a process based on learning and regional partnership with universities, research centres, businesses and other bodies.  Including leading edge research as well as dissemination, exploitation and adaptation of generic / basic technologies in specific sectors.

10 Designing smart specialisation  Making choices and defining a vision for the region: where to go in terms of competitiveness through innovation.  Opening up opportunities for all (not picking winners from above) but making sure that efforts are not wasted being too dispersed.  Refocusing existing innovation strategies or developing new ones.  The European Commission will now set up a ‘Smart Specialisation Platform’ with experts to provide assistance to Member States and regions.

11 Achieving competitiveness through…  Clusters for regional growth  Innovation-friendly business environment for SMEs  Financial engineering (not only subsidies)  Lifelong Learning in research & innovation  Research infrastructure (e.g. science/techn. parks)  Creativity and cultural industries  Digital agenda: enabling knowledge flows  Public Procurement for market pull  European Innovation Partnerships

12 Combining policy tools (synergies)  Improving regional innovation strategies by learning from independent experts and from networks supported by INTERREG, FP7 and CIP.  Reinforcing ERDF support for education, research and innovation, and drawing on complementary support from FP7 and CIP.  Increasing interregional cooperation in research and innovation to enhance access to world-class networks funded under FP7 and CIP.  Exploring possible ERDF support to suitable short- listed FP7 and CIP projects.  Fostering synergies through technical assistance.

13 Assisting Member States & regions  Developing at EU level a ‘Smart Specialisation Platform’ with experts from universities, research centres, businesses and public authorities.  Making available information on innovation performance: EU Cluster Observatory, EU Regional Innovation Scoreboard and Monitor.  Disseminating good practice identified in projects funded by FP7, CIP & INTERREG IVC: platforms for mutual learning, Practical Guide, Web Portal.  Promoting financial engineering (with EIB …).  Reinforcing the Enterprise Europe Network (EEN).

14 Future of Cohesion Policy 5th Cohesion report adopted on 09/11/2010 with views on reforming Cohesion Policy:  Development & investment partnership contracts: focus on a small number of priorities, conditions and incentives, clear and measurable targets,  New measures for financial engineering,  New objectives of territorial cohesion,  Simpler delivery system,  All regions eligible to Cohesion Policy. Thank you for your attention!