Regional Innovation Strategies José Luís Simões 2001/03/30 Reflections on US economic development policies: Meeting the ‘new economy’ challenge by Mikel Landabaso

Reflections on US economic development policies  Science and Technology Strategies  Strategic Planning Process  U.S. Public sector role in promoting competiveness  U.S. Innovation policy support system  Federal level  State level  Conclusions

Reflections on US economic development policies In 1969: “ the federal government should enlarge and improve its program of financial incentives to encourage regional planning activities, especially to incorporate R&D in the design of programs aimed at the solution of regional problems” In 1996: “Today’s economy is knowledge and idea-based, driven by the ability of firms to innovate and develop new products and processes” “ Strategic planning..., determine the role government should play in facilitating a healthy business environment” Science and Technology strategies

Reflections on US economic development policies  Role of public sector: animator / facilitator  Framework for collaboration and common action among private and public actors  Maximize synergies  Elaboration of shared vision  Implementation of an action plan  In Europe: Academic thinkers / regional planners  In Europe : Regional innovation strategies (RIS)  U.S. Approach: ‘cluster’ oriented Strategic planning process - I

Reflections on US economic development policies Strategic planning process – II (Lessons from US)  Bring key stakeholders together to develop consensus  Provide an opportunity for business, academic, and community representatives to share their input  Forge partnerships within and between public and private sectors  Increase public understanding of the economy  Ensure that state has a maximum return on its investment  Set goals against which to measure sucess

Reflections on US economic development policies Strategic planning process – III (RIS objectives)  Key priority: promotion of innovation, particularly in less favored regions  Increase the number of innovation projects in firms  Promote public/private and inter-firm co-operation and networks

Reflections on US economic development policies Strategic planning process – IV (RIS methodology)  Based on public-private partnership and consensus (involve regional administration)  Integrated and multidisciplinary  Focus on firm’s innovation needs and broad involvement of regional actors  Action-oriented and include an action plan for implementation  Exploit the European dimension  Incremental and cyclical

Reflections on US economic development policies U.S. Public sector role in promoting competiveness: Creating the appropriate ‘business climate’ (I)  Survey in 2300 manufactures, 500 university leaders on how the link between R&D, education and the nation’s competiveness was perceived to work.  State and federal government have a significant role to play: -Tax structure that incentives R&D -Support basic research programs

Reflections on US economic development policies U.S. Public sector role in promoting competiveness: Creating the appropriate ‘business climate’ (II)  Investing in systems that build workforce skills  Enhancing the infraestructure – communications and transportation  Reengineering government to deliver effecient services  Aligning state tax systems  Supporting entrepreneurs  Promoting university policies  Adressing quality of life

Reflections on US economic development policies U.S. Innovation policy support system – Federal level (I)  SBIR – Small Business Innovation Research Program  STTR – Small Business Technology Transfer Program  ATP – Advanced Technology Program  MEP – Manufacturing Extension Partnership  EPSCoR – Experimental Program to stimulate Competitive Research  EPSCoT – Experimental Program to stimulate Competitive Technology

Reflections on US economic development policies U.S. Innovation policy support system – Federal level (II)  SBIR – Small Business Innovation Research Program  Funds the critical start up and development stages  Encourage the commercialization of new technologies  Potencial benefits:  Providing capital to small businesses  The new technologies may lead to the formation of new businesses  The federal government may find new suppliers for technologically advanced products

Reflections on US economic development policies U.S. Innovation policy support system – State level All 50 U.S. States support cooperative technology programs whose primary goal is economic growth. Cooperative technology programs: -involves government and indusry, often universities -Sponsor the development and the use of technology -Improve practices to benefit companies Development of fiscal policies to encourage investments in R&D

Reflections on US economic development policies Conclusions (I) A ‘new type’ of industrial/regional policies that goes beyond tax incentivesw and education support or provision of physical infrastructures: -different forms of venture capital -Cluster creation and supporting inter-firm networking -E-business promotion -Incubators -Manufacturing modernization -Promoting university-enterprise relationships and technology transfer

Reflections on US economic development policies Conclusions (II) -Enhancing the R&TD and IT infrastrutures -Preserving intellectual capital -Improving education and training