Settore Economia e Lavoro COORDINATION OF INNOVATION STRATEGIES/SCHEMES IN METROPOLITAN AREAS. THE ROLE OF THE PUBLIC POLICIES GIORGIO MONACI Tallinn 2002

THE MILAN METROPOLITAN AREA data 1

THE MILAN METROPOLITAN AREA data 2  THE MILAN REGION IS THE MOST QUALIFIED SCIENTIFIC DISTRICT OF ITALY :  7 UNIVERSITIES (THE CATHOLIC UNIVERSITY OF MILAN, BOCCONI UNIVERSITY, MILAN STATE UNIVERSITY, BICOCCA UNIVERSITY, IULM, AND ST RAPHAEL UNIVERSITY); STUDENTS, 100 DEGREE COURSES; MORE THAN 70 UNIVERSITY DEPARTMENTS ARE SCIENTIFIC-TECHNOLOGICAL-ENGINEERING  SEVERAL OTHER PUBLIC RESEARCH CENTRES: CNR’S INSTITUTES (NATIONAL RESEARCH COUNCIL), ISFN’S INSTITUTES (NUCLEAR PHYSICS COUNCIL), EXPERIMENT LABS AND SOME OTHER 40 IMPORTANT PUBLIC RESEARCH CENTRES.  THE SECTORS OF EXCELLENCE IN THE PUBLIC RESEARCH: o ELECTRONIC ENGINEERING AND COMPUTER SCIENCES, o BIOTECHNOLOGY AND NEW MATERIALS o ROBOTICS AND MECHATRONICS o ECONOMY AND MANAGEMENT o MEDICINE.

THE MILAN METROPOLITAN AREA data 3  ALMOST A QUARTER OF THE ITALIAN BUSINESS ENTERPRISE RESEARCH IS CARRIED OUT IN THE MILAN AREA (LOMBARDY, 34% OF ITALY ). THE CAPACITY FOR INNOVATION IS BASED ON THE ABILITY TO ADAPT PRODUCTION PROCESSES TO THE MORE SPECIFIC PRODUCTS OF SMEs (ILLUSTRATIVE EXAMPLES ARE THE SMEs OF THE FASHION INDUSTRY AND THE MACHINE TOOL INDUSTRY, WHICH REPRESENT TWO GLOBAL-LEVEL SECTORS OF THE MILANESE INDUSTRY)  MILAN IS THE MOST IMPORTANT ITALIAN AREA FOR THE NUMBERS OF ORGANISATIONS THAT PROMOTE INNOVATION AND THE RELATIONSHIPS BETWEEN SCIENTIFIC RESEARCH AND PRODUCTION.  4 DEVELOPMENT AGENCIES  3 PUBLIC INCUBATORS,  SEVERAL PRIVATE INCUBATORS  SEVERAL TECHNOLOGY TRANSFER CENTRES PROMOTED BY DIFFERENT LOCAL INSTITUTIONS AND ASSOCIATIONS (PROVINCE OF MILAN, LOMBARDY REGION, THE CHAMBER OF COMMERCE, UNIVERSITIES AND ENTREPRENEURS’ ASSOCIATIONS).

THE MILAN METROPOLITAN AREA : SOME WEAKNESSES THE MILAN METROPOLITAN AREA : SOME WEAKNESSES  A LINK BETWEEN THE PRODUCTION AND THE UNIVERSITY RESEARCH SYSTEMS, WHICH HAS NOT BEEN CONSOLIDATED YET.  THE FRAGILE POSITION OF SMEs, WHICH SEEM TO NEED SOME ACCOMPANYING MEASURES.  A FRAMEWORK OF SERVICES PROPOSED BY OPERATORS FROM THE PUBLIC SECTOR, WHICH IS NOT COMPLETELY ABLE TO ANSWER SMEs’ EXPECTATIONS.  A LOW CAPACITY OF CO-OPERATION BETWEEN SMEs AND INSTITUTIONAL PARTNERS.

THE PUBLIC POLICIES: THE ROLE OF PROVINCIA DI MILANO ITALY IS ADMINISTRATIVELY STRUCTURED IN REGIONS AND PROVINCES. THE PROVINCIA DI MILANO IS THE GOVERNMENT BODY OF MILAN'S METROPOLITAN AREA THE PROVINCES ARE AUTONOMOUS BODIES AND HAVE ADMINISTRATIVE FUNCTIONS IN SEVERAL AREAS (environmental protection and exploitation; roads and transport; secondary education and professional training; economy and employment)  THERE ARE TWO MAIN FRAMEWORKS IN WHICH THE PROVINCE OF MILAN HAS DEVELOPED ITS STRATEGIC ACTIONS ON THE ECONOMIC LEVEL OVER THE LAST FEW YEARS:  STARTING UP OF A WIDE ACTION TO SUPPORT THE DEVELOPMENT OF LOCAL ECONOMIES  STARTING UP OF A POLICY FOR THE CREATION OF A REGIONAL INNOVATION SYSTEM

THE STRATEGIES ESTABLISHED BY THE PROVINCE OF MILAN: (1) THE OPERATIONAL OBJECTIVES SUPPORT TO THE LOCAL PRODUCTION SYSTEMS THAT HAVE BEEN VICTIMS OF INDUSTRIAL CRISES PROMOTION OF EMPLOYMENT AND IMPROVEMENT OF THE EFFICIENCY OF THE LABOUR MARKET AND THE TOOLS THE ALLOW TO MATCH SUPPLY AND DEMAND PROMOTION OF TECHNOLOGY TRANSFER SUPPORT TO THE CREATION AND INITIAL PHASES OF NEW ENTERPRISES DEVELOPMENT OF INITIATIVES LINKED TO TERRITORIAL MARKETING IMPROVEMENT OF THE PUBLIC ADMINISTRATION PERFORMANCES

THE STRATEGIES ESTABLISHED BY THE PROVINCE OF MILAN: (2) THE ADOPTED METHOD THE APPROACH OF THESE ACTIONS HAS BEEN BASED ON:  The co-operation between institutions (official collaboration agreements)  The creation of both horizontal and vertical relationships and networks (from the European Union to the National Government, to the Lombardy Region, down to the municipalities themselves)  The co-operation of public/private sectors (trade unions, entrepreneurial associations, companies  An integrated and multi-sectoral approach (policies supporting the labour market, policies promoting innovation, policies facilitating the services targeted to enterprises and training policies, policies for territorial requalification and promotion)

THE STRATEGIES ESTABLISHED BY THE PROVINCE OF MILAN: (3) TOOLS AND SET UP ACTIONS. 1. Starting up of Agencies for the territorial development, Starting up of incubators 2. Launching of new tools related to the labour market 3. Promotion of the "Strategic Programme for the development and the support of innovation" (The first one for the period , the second one for ) 4. Promotion of the "Forum per l'innovazione", the first space in Italy created for the interaction of public and private operators to improve innovation 5. Promotion of specific measures and financing schemes for SMEs 6. Promotion of specific projects and European projects

1. AGENCIES FOR THE TERRITORIAL DEVELOPMENT AND INCUBATORS THE MOST IMPORTANT ACTIONS UNDERTAKEN BY THE PROVINCE OF MILAN, COOPERATION WITH INSTITUTIONAL AND PRIVATE PARTNERS, HAVE BEEN THE FOUNDING OF DEVELOPMENT AGENCIES AND CONSORTIUMS FOR REINDUSTRIALIZATION, SUCH AS:  ASNM (AGENCY FOR THE DEVELOPMENT OF NORTH MILAN),  EUROIMPRESA (AGENCY FOR THE DEVELOPMENT OF THE ALTO MILANESE AREA),  CRAA (CONSORZIO PER REINDUSTRIALIZZAZIONE DELL'AREA DI ARESE - CONSORTIUM FOR THE REINDUSTRIALIZATION OF THE AREA OF ARESE),  CAAM (CONSORTIUM OF THE ALTO MILANESE AREA)  AGINTEC (ENTERPRISE DEVELOPMENT AND TECHNOLOGY TRANSFER AGENCY IN VIMERCATE AREA). THEIR ACTIONS HAVE BEEN STRICTLY LINKED TO THE START UP OF TWO BUSINESS INNOVATION CENTRES (BIC), BOTH FINANCIALLY SUPPORTED BY THE PROVINCE OF MILAN:  BIC LA FUCINA  BIC EUROIMPRESA

EXAMPLES OF FINANCING SCHEME A) IN THE PROVINCE OF MILAN DEVELOPED A TENDER TO SUPPORT SME INNOVATION. THE OBJECTIVES WERE TO FOSTER THE DEVELOPMENT OF IT, COMMUNICATION TECHNOLOGIES, E-COMMERCE AND QUALITY PROCESSES THROUGH FINANCIAL INCENTIVES TO STIMULATE INVESTMENTS AND CONTRIBUTE TO LONG-TERM CORPORATE EXPENSES. A TOTAL AMOUNT OF € 13 MILLION WAS OFFERED TO SMES IN THE AREA OF MILAN. 5,068 APPLICATIONS WERE SUBMITTED COMPANIES RECEIVED FUNDING. THE OUTCOME OF THE INITIATIVE IS AS FOLLOWS: -WEB SITES FOR THE PRESENTATION OF MICRO COMPANIES: +4% -E-BUSINESS AND E-COMMERCE WEB SITES (MOSTLY B2B): +24% - ISO CERTIFICATIONS: +9%

B) IN 2002, THE PROVINCE OF MILAN PROMOTED A SPECIAL TENDER TO FOSTER WOMEN- BASED START-UPS. A TOTAL AMOUNT OF € 3 MILLION WAS ALLOCATED TO SUPPORT THE CREATION AND THE START-UP OF WOMEN-BASED SMALL-SIZED COMPANIES AND TO SUPPORT WOMEN-BASED SMES FOR THE DEVELOPMENT OF CORPORATE DEVELOPMENT PROGRAMMES 5,068 APPLICATIONS WERE SUBMITTED (STILL IN THE EVALUATION PROCESS ) C) OTHER EXAMPLE OF MEASURES TO PROMOTE THE START-UPS FINANCING: CREATION OF A VENTURE CAPITAL FUND PROMOTED BY THE NORTH MILAN DEVELOPMENT AGENCY (ASNM);

EXAMPLES OF SPECIFIC PROJECT AND EUROPEAN PROJECT  The DEAFIN PROJECT, aimed at giving incentives for and supporting investments in the province  The Cetra Project, a database of both public and private research and technological development centres and of laboratories and quality assurance institutes.  The EUROPEAN DELCOSI PROJECT, developed in collaboration with the Politecnico of Milan to promote new solutions of "technology transfer" and for the training of specific professional personnel, through experience acquired at the "Tirocini d'eccellenza" (work placement project).  The EUROPEAN PANEL PROJECT, aimed at building a new European network for start-up and venture capital.  The MATREND PROJECT, focused on new ways of carrying out technological check-ups of enterprises. It was developed by Bic La Fucina, based in Sesto San Giovanni, in cooperation with Consorzio Milano Ricerche.  BICOCCA PER LE IMPRESE (Bicocca works for Enterprises), aimed at creating new opportunities for exchanges between the world of enterprises and that of training centres and university scientific research institutes.  The set up of IBAN, the Italian Business Angels Network, hosted by the Bic La Fucina in Sesto San Giovanni

CONCLUSION: Provincia di Milano’s POLICIES: SUCCESSFULL KEYS  AN ACCURATE IDENTIFICATION OF: - NEEDS EXISTING IN THE AREA OF INTERVENTION (specific sme’s needs) - EXISTING SERVICE PROVIDERS (research institutions and specialised support bodies for assisting companies) - ACTORS TO BE INVOLVED (institutions, universities, business associations, development agencies....)  DEFINITION OF STRATEGIC OBJECTIVES (Strategic Program)  TIMING OUTLINING FOR CONCRETE PILOT ACTION (Action Plan for Innovation);  THE SET-UP OF A PERMANENT CO-ORDINATION SYSTEM BETWEEN : – - OPERATIONAL ACTORS – - INSTITUTIONAL ACTORS