EN Regional Policy EUROPEAN COMMISSION Innovation and the Structural Funds, Antwerp, 16 January 2007 Veronica Gaffey Innovative Actions Unit DG Regional Policy, European Commission

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 2 Regional Innovation Performance (2006)

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 3 Factors of competitiveness no longer derive from costs or natural or geographical advantages but in the capacity of enterprises to innovate Regional Diversity within Member States Less developed regions have an even greater interest in developing their innovative capacity in the stronger sectors of their economy (long term benefits) Regions the appropriate level for stimulating innovation Potential also for less exposed sectors (e.g. education, health, personal services, administration) Innovation – a Regional Necessity

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 4  Performance of a region in innovation depends not only on the performance of enterprises and research institutes, but also the manner in which they interact  Innovation is the result of frequent interactions between different actors, enterprises, organisations whose knowledge and know-how accumulates  Proximity between different actors facilitates the acquisition, accumulation and use of knowledge  Therefore, greater emphasis on networks which link the enterprise to its environment (other enterprises, universities, research institutes, etc.) The Process of Innovation

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 5 New Regulations & Financial Perspectives, December Community Strategic Guidelines, October 2006 National Strategic Reference Frameworks (informal negotiations underway) Operational Programmes under 3 Objectives –Convergence –Regional Competitiveness and Employment –Territorial Cohesion No separate budget lines for community initiatives/pilot projects/ innovative actions (as in the past for EU15) Structural & Cohesion Fund Programming Programming

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 6 Innovation an important priority in all NSRFs Operations proposed are in line with the Community Strategic Guidelines, but not linked to strategic SWOT analysis, national initiatives and regional specificities Commission expecting much more detail in Operational Programmes Innovation in National Strategic Reference Frameworks Innovation in National Strategic Reference Frameworks

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 7 Major investment (particularly in Convergence Objective regions) in environment supportive to innovation (knowledge infrastructure, education and business support) All regions: possibility to support a process to develop or improve a regional innovation strategy including experimentation - whereby new ways to improve public policy in support of regional development can be planned and tested Innovation in Operational Programmes

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 8  Regional Innovation Strategies, which evolve over time, are central  New partnerships (particularly with private sector) can enhance legitimacy and focus, improve co-ordination and guarantee transparency  Importance of links to mainstream  Regions generally the most appropriate level  These instruments can be catalysts for innovation – through acceptance of risk  Demonstration effects and visibility – need for evaluation  Competence and motivation of those managing experimentation is crucial – can improve administrative capacity of regions Regional Strategies for Innovation: Experience from last 15 years Regional Strategies for Innovation: Experience from last 15 years

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 9  Build on experience gained to-date  Identify a sector for the strategy where the region has potential to develop (e.g., information society, environmental technologies, tourism, health & personal services)  Involve appropriate public and private actors in the development, monitoring and evaluation of innovation strategies and experimentation of actions which can support innovation and which can be implemented more extensively after testing through the priorities of the OPs  Public sector acts as facilitator and catalyst, supporting an increase in the capacity of policy interventions and intermediary organisations to stimulate regional and local actors – SMEs in particular – to innovate Developing a Regional Innovation Strategy Developing a Regional Innovation Strategy

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 10  An effective innovation strategy mobilises the actors involved in a particular area of activity (whether an economic or social sector) to  Review the situation in the domain or sector of activity in the region and compare it to that in competing regions;  Establish objectives and sectoral priorities, justifying these choices  Identify and allocate financing available for each sector or area of activity;  Define public interventions under a multi-annual action plan to ensure continuity of action What is an effective Innovation Strategy?

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 11  Public authorities (regional authorities, regional development agencies, municipalities, other local authorities, Ministries, other funding bodies, etc.)  Education and research bodies (universities, institutes of technology, research institutes)  Enterprises, chambers of commerce, social partners (the “triple helix model” or the “innovation eco- system”) The actors in a Regional Innovation System? The actors in a Regional Innovation System?

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 12  Limited number of priorities identified  Based on foresight evaluation  Defined and carried out in partnership, with clear leadership and involvement and ownership of the actors  Communication – before, during and after  Continuous evaluation Key Elements in Developing a Regional Innovation Strategy Key Elements in Developing a Regional Innovation Strategy

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 13  Pilot actions can clarify the appropriateness of the strategy  Can allow testing of new actions (policy risk) to open up “activity niches” outside traditional procedures and progammes  In the long term can promote absorption Experimentation – testing new approaches and actions Experimentation – testing new approaches and actions

Regional Policy EUROPEAN COMMISSION EN Innovation and the Structural Funds, 2007/13 16 January 2007 EN 14  Guidance Document: “Innovative Strategies & Actions: Results of 15 years of experimentation” at novation/guide_innovation_en.pdf  Re-vamped Inforegio website including database of project case studies – good practice examples from March 2007  Regional Innovation Awards – first competition to be launched in March 2007 Supports from European Commission