European Commission Enterprise Directorate General Innovation Policy R&D and Innovation in the Regional Operational Programs Meeting with Regions 11 July 2006 European Commission

Regional level is seen as the key for Lisbon strategy (1/2) Source : European Commission / DG ENTR In order for Europe to reach the Lisbon goal of becoming the world’s most competitive knowledge-based economy, innovation capacity and performance need to be substantially increased: Innovation requires long-term cooperation between investors, enterpreneurs, researchers, companies, public authorities and consumers such relations flourish more easily at regional level benefiting from short distances that facilitate both formal and informal contacts and allow for more effective communication structures. Regional-based cooperation networks are ideal knowledge sources and entry points to exchange information and to set up new ideas

Regional level is seen as the key for Lisbon strategy (2/2) Source : European Commission / DG ENTR The European Commission has been aware of the special importance of regional policy for economic growth. Since the early 90s it has promoted innovation and competitiveness at regional level and will do so in the future: the framework on Competitiveness and Innovation will contribute to the provision of innovation support services, regional innovation is strongly emphasised in the 7th Framework Programme for Research and Development the enhancement of innovation capacity and enterpreneurship should become and integral part of the Structural Funds from 2007 onwards In 1996 the “Innovating Regions in Europe” (IRE) network was set up. It includes 200 member regions with their Regional Innovation Strategy projects starting in 2005

Facts on Polish R&D and innovation performance (2004) Source : European Commission / DG ENTR only 0.58% R&D intensity (BERD/GDP) in 2004; whereas: Sweden 3.74% or EU-25 avg. 1,9% about 30% of R&D spendings is funded by business; whereas: EU25 exactly opposite with more than 70% the contribution of private companies in R&D expenditures in higher education accounted only for 5% 90% of SMEs don’t cooperate with State R&D, universities or centres of technology transfers the share of S&T diplomas in the total number of students is shrinking 17% in 1990/91 to 5.7% in 2004/05

Source : European Commission Innovation drivers Output Input Finland Poland Application Intellectual property Innovation & Entrepreneurship Knowledge creation Poland ranks 21 st out of 25 in EIS2005

EIS 2005 – The correlation between GDP and Innovation performance Source : European Commission / DG ENTR

R&D and innovation should be a key element of ROP Source : European Commission / DG ENTR Key challenges identified by the Commission in innovation in Poland: access to finance (loans) – for micro and SMEs industry-science cooperation – regional science in service of local SMEs or universities establishing links with industries through spin-off or technology transfers clustering – increase the level of innovation in the region by targeting and strengthening identified SME growth sectors and clusters coordination between national and regional innovation strategy – is it an issue?

R&D and innovation should be a key element of ROP Source : European Commission / DG ENTR Example of possible actions on regional level: facilitating access for regional firms to public sources of innovation through competence centres and expert dialogues an internet-based information system for innovation improved coordination of the innovation supporting network in the Region establishment of innovation assistants for SMEs setting up of business networks and clusters fostering the internationalisation of the local firms accelerating the start-up process for innovation-oriented company founders, especially in the pre-seed stage

We would also encourage you to incorporate EIS indicators in ROPs Innovation Input (16) Source : European Commission Innovation Ouput (10) Innovation Drivers Knowledge Creation Innovation & Entrepreneurship Innovation Applications Intellectual Property (6) (5) S&E graduates Population with 3 rd education Broadband access Lifelong learning Youth education attainment level Public R&D expenditures Business R&D expenditures Share of medium and high tech R&D Share of firms receiving public funding University R&D financed by private SMEs innovating in-house Innovative SMEs cooperating Innovation expenditures Early-stage venture capital ICT expenditures Non technological change Employment high tech services High tech exports Sales of new to market products Sales of new to firm products Employment in medium & high tech manufacturing EPO patents USPTO patents Triadic patents Community Trademarks Community industrial designs Detailed information and definition on

Source : European Commission / DG ENTR Thank you for attention