Swedish National Agency for Innovation Systems Innovating Through EU Regional Policy Creating the Right Environment Workshop 1B Nurturing Local and Regional Clusters: The Role of Public Authorities June 12, 2006 Deputy DG Karin Markides

Identify the Characteristics of a National Innovation System The economy strongly internationally linked Multinational companies dominates the R&D-system (> 3% GDP) Small- and medium size companies invest very little in R&D Universities dominates the public R&D-system and they have a third task, to cooperate with companies and society (0.75% GDP) Small sector of Research-institutes (0.2% GDP) Government invests very little R&D-money in companies outside the military sector Karin Markides SWEDEN

Depending Actor Groups PPUP, Public Private University Partnership Developing innovation system is to make above efficient, i.e. to make investment in R&D profitable. Identify bottlenecks and possibilities. Knowledge based economy Government Public sector BusinessResearch Karin Markides Private Capital Communication

Provide proactive abilities for local, regional and national innovation systems Karin Markides

Policy Analysis National Innovation Strategy (foresight, back sight, global outlook) Networking Hard-closed, or soft-open network Benchmarking Learning Cluster Agglomeration of similar stakeholders Competitive strength Functional Clusters Interaction of different stakeholders Entangling process The Non-linear Innovation Process Karin Markides

Source: WTO (2005), Institute for Strategy and Competitiveness, authors analysis. World Market Share, 2002 Change in World Market Share, Cluster Composition Baltic Sea Region Export Performance by Cluster Marine Equipment Production Technology Forest Products Automotive Metal Manufacturing Petroleum/Chemicals Furniture Chemical Products Telecommunication Fishing Products BSR overall: % BSR overall: 5.55% Biopharmaceuticals Prefabricated Enclosures Heavy Machinery Power Generation Equipment Analytical Instruments Aerospace Vehicles & Defense Tobacco Karin Markides

Make unique strongholds develop from a bottom-up processes Karin Markides

Functional Cluster Sector Specific Demands and Research Infrastructure Regional Conditions and Cultural Settings Drivers for Success when Building Strongholds Business Research and Development Policy/Public Individuals and Leadership Unique Resources Karin Markides

Targets on the Public Authorities Agenda Nurture an holistic view Cut fragmentation Recognize leadership Catalyze coordination of resources Reward sustainable growth Drive attraction values Provide long term vision Utilize time windows Increase mobilization Karin Markides

Entangle stakeholders and keep dynamics going Karin Markides

Development is good! Change is no good! For development change is needed!!! Entangling Phase Karin Markides

Build attractive functional regions to critical mass Karin Markides

Selected VINNOVA Actors Programs VINN- Excellence-Centers Program Strong research and innovation environments in universities and research institutes Research – excellence, dynamics, need- inspired Industry – dedicated partners VINNVÄXT (VINNGROWTH) Program Functional clusters Research profile –excellence Industry – competitiveness and cluster Politics and society – engagement and support Key Actor Program Professionalizing universities and research institutes Technology/knowledge licensing and transfer Incubators and innovation centers SME Program Karin Markides

Success Factors for a Regional Innovation System Regional leadership for renewal Shared vision/strategic concepts Strong commitment from the business community Identification of unique growth areas Regional focus/prioritization Strategic links to value added strongholds Strong research and innovation cultures Strategies and resources for learning Insight into business and development logic Karin Markides Yearly program: 6-10 regions get 15 M/y(+15 M/y from region) First call 2002/2003 gave 59 proposals and 3 winners

UPPSALA BIO Uppsala BIO is an initiative from the local biotech industry, the two universities in Uppsala, and regional development bodies. Its aim is to contribute to the long-term growth of the biotech sector in the region. The coordinated action plan developed by all parties involved defines four strategic areas. 1. Uppsala BIO-X – the cross-disciplinary research effort for biotech projects 2. Secure the sectors future needs for suitably trained people 3. Secure the flow of high quality innovations from idea to industry 4. Communicate the regions competences to the world Madeleine Neil Rhiannon Sanders Jonas Åström

ROBOTICS VALLEY Steel Sheet Refinement BIOMEDICINSK UTVECKLING I VÄSTSVERIGE

Provide seed capital with long term and sector specific knowledge Karin Markides

Research in Small and Medium Size Companies Achieve international competitiveness Become an attractive and visible supply company Grow and develop within the country Interact with research within university/institutes Create jobs for academically trained people Increase knowledge content in products, processes, people Develop collaborations Build networks and clusters Present SME-programs in Sweden Research&Grow 10 MEuro/ year (0.007, 0.05, 0.5 levels) VINN NU (20 x 0.03 MEuro/year) Karin Markides

Make infrastructures become drivers and meeting places for dynamics of change Karin Markides

Karin Markides Research and Test Infrastructures

Use the international scene, making globalisation a possibility and not a threat Karin Markides

International Benchmarking and Learning Strategic programs and pilots to nurture functional cluster development Networking Cross-boarder training Outreach training Functional region workshops Surrounding society Innovation management Innovation journalism Innovation process understanding Bilateral programs Third country programs Karin Markides

Challenge the investment to reach critical mass Karin Markides

Karin Markides Process Support and Training A key factor for success Dahmén Institute Seminars for communicating concepts and ideas Analysis and process support for planning and implementation Active learning Stimulate mobility of academic educated and special competence people TCI, the Competitive Institute Allience of cluster practitioners to foster cluster-based development Baltic Sea Innitiative Network of innovation system national agencies in northern Europe Competence Centers in Innovation System Science CESIS - Centre of Excellence for Science and Innovation Studies, KTH CIND - Centrum för studier av innovationer och näringslivsomvandling, UU CIRCLE - Centre for Innovation, Research and Competence in the Learning Economy, LU RIDE - R&D, Innovations and Dynamics of Economies, CTH

Functional Region with Nodes of Complementary Strength Lifescience – IT Karin Markides Production ICT Biotechnology Clinical science Preclinical science

Lessons Learned on Key Requirements 10 years – Long Term Investment Companies Involved from Start Brand Creation Mobilization Strategic Evaluations Scaleable Strategy Karin Markides