WIRE: Week of Innovative Regions in Europe Granada, 15th-17th March 2010 Claire Nauwelaers Innovation Unit Competitiveness and Regional Governance Division Public Governance and Territorial Development Directorate OECD The challenges for regional innovation policies: an EU-OECD project

OPENING THE BLACK BOX OF POLICIES: IDENTIFYING RELEVANT POLICY SPACES Potential and limits for innovation policy in regions 1.Variety of institutional arrangements 2.Different types of innovation potential 3.Diversity in regional development & innovation strategies Three dimensions to take into account Innovating for what?  Building on current advantages  Supporting socio-economic transformation  Catching up : towards creation of knowledge-based capabilities Importance of setting policy priorities

DIFFERENCES IN INSTITUTIONAL ARRANGEMENTS Degree of devolution in STI policy competences and resources Federal countries Countries with elected regional authorities Countries with non elected regional level / decentralised State agencies Significant control of STI powers and/or resources by regions Austria, Belgium, Germany, Australia, Canada, Switzerland, United States, Brazil Italy, Spain UK (Scotland, Wales, Northern Ireland) Some decentralisation of STI powers and/or resources to regions MexicoFrance, Netherlands, Poland, Sweden (pilot regions), Denmark (autonomous regions), Norway UK (English regions), Sweden (except pilot regions), Korea No decentralisation of STI powers Regional innovation strategies Denmark,Portugal (autonomous regions), Slovak Republic, Turkey, Czech Republic Hungary, Ireland, Portugal (mainland) Innovation Projects only Chile, JapanGreece, Finland, Luxembourg, Iceland, New Zealand, Slovenia Source: Regions and Innovation Policy OECD 2011

Federal Unitary, elected regions Unitary, administrative regions Note: National refers to the number of instruments used at national level, regardless of whether used at other levels. Regional refers to instruments reported at regional level, regardless of whether used at other levels. Common instruments refers to the number of instruments reported at both national and regional levels.. NUMBER OF INSTRUMENTS USED BY NATIONAL AND REGIONAL GOVERNMENTS Some instruments are more frequent at regional level, some at national level, and many at both levels. Instruments reported in common are not necessarily a duplication. They may be complementary: Shared financing Different target groups and purposes

CO-ORDINATION TOOLS CAN ADDRESS DIAGNOSED MULTI-LEVEL GOVERNANCE CHALLENGES Notes: 24 reporting countries (20 OECD, 4 non-OECD countries), one country reported two top tools. Source: OECD Survey on the Multi-level Governance of Science, Technology and Innovation Policy. Most important co-ordination tool Number of responding countries Note: Responses available for 22 countries. Source: OECD Survey on the Multi-level Governance of Science, Technology and Innovation Policy. Number of multi-level governance co-ordination tools used in a given country Regular dialogue and consultation rated most important among tools Multiple tools are used in any given country (generally 4 or more)

TYPOLOGY OF OECD REGIONS DISPLAYS VARIETY Knowledge Hubs Small sized knowledge intensive capital districts Regional knowledge and technology hubs Industrial Production Zones Core manufacturing and service providers Skill-intensive production centres Service and rural production centres Old manufacturing centres Peripheral Regions Low populated peripheral regions in rich countries Structural inertia/de- industrialising regions Rural low populated regions Source: Regions and Innovation Policy OECD 2011

TYPOLOGY OF OECD REGIONS: WITHIN COUNTRY DIVERSITY Knowledge Hubs  Small sized knowledge intensive capital districts  Regional knowledge and technology hubs 1 Industrial Production Zones  Core manufacturing and service providers 5  Skill-intensive production centres 4  Service and rural production centres 1  Old manufacturing centres 9 Peripheral Regions  Low populated peripheral regions in rich countries  Structural inertia/de- industrialising regions 1  Rural low populated regions Source: Regions and Innovation Policy OECD 2011 France (metropolitan): 21 regions belong to 6 types

VARIETY IN INNOVATION SYSTEMS Germany: Baden-Wurttemberg and Mecklenburg-Western Pomerania United States: Massachusetts and Mississippi

South Korea: Chungcheong and Jeju Regions Portugal: Lisbon and the Norte Regions VARIETY IN INNOVATION SYSTEMS

A KEY REGIONAL ASSET: HUMAN CAPITAL Note: The District of Columbia (US) does not appear in the chart for ease of display. Its GDP per capita (over USD ) is more than double the value of top OECD regions. Source: Calculations using data from the OECD Regional Database. GDP per capita and skilled labour force intensity: a virtuous relationship

HETEROGENEITY IN REGIONAL SPECIALIZATION Specialisation in knowledge- intensive services (KIS) employment Top region by country, 2008 Specialisation in high and medium-high tech manufacturing employment Top region by country, 2008 (in % of total employment)

VARIETY IN R&D FINANCING MODELS ACROSS OECD REGIONS Source: OECD Regional Database.

BETWEEN AND WITHIN COUNTRY HETEROGENEITY IN R&D EFFORTS R&D as % of GDP TL2 regions, 2007 (or latest available year) Source: Regions and Innovation Policy OECD 2011

REGIONAL NETWORK OF CO-INVENTORS GREEN PATENT APPLICATIONS Hokuriku (Japan), Baden-Wurttemberg (Germany) and California (US), Source: Regions and Innovation Policy OECD 2011

European Source: National Regional

DESIGNING AND IMPLEMENTING SMART POLICY MIXES Knowledge GenerationKnowledge Diffusion Knowledge Exploitation Traditional instruments Technology funds, R&D incentives/supports/grants Support to scientific research and technology centres, Support to infrastructure development Human capital for S&T Science Parks Technology Transfer Offices and schemes, Technology brokers Mobility schemes, talent attraction schemes Innovation awards Incubators Start ups support innovation services (business support and coaching) Training and awareness-raising for innovation Emerging Instruments Public private partnerships for innovation Research networks/poles Innovation Voucher Certifications/accredit ations Industrial PhDs Support to creativity Innovation benchmarking Competitiveness poles Competence centres New generation of scientific and technological parks and clusters Venture and seed capital Guarantee schemes for financing for innovation Controversial instruments Cross-border research centres Open source-Open science Markets for knowledge Regional Industrial Policy; Innovation oriented public procurement Synergies between policy instruments and between policy areas Balance within a policy mix: targeting firms and systems, local and global dimensions Horizontal coordination Source: Regions and Innovation Policy OECD 2011