1 Tools for Regional Development Thomas Wobben Representation of Saxony-Anhalt to the EU Boulevard Saint Michel 80 B-1040 Brussels

2 Saxony-Anhalt

3 Saxony-Anhalt in the Heart of Europe

4 The Challenge: Human Capital and Innovation Quelle: Berechnungen isw Institut gGmbH

5 Key factors for competitiveness SME innovation capacity directly linked to: –Co-operation with other firms: firms learn best from other firms –Co-operation with the public sector and the R&TDI intermediaries & Infrastructures: technology centres, universities, polytechnics, business services… Translate ‘knowledge’ into GDP: Innovation Strategies are an efficient instrument to create Regional Innovation Systems = territorial systems that efficiently create, diffuse and exploit knowledge than enhances regional competitiveness

6 Regional bottlenecks regarding networking and clustering in Saxony-Anhalt destruction of previous (formal and informal) business networks during the process of economic transformation after German unification (typical for this kind of transformation process) lack of personal contacts/information about partners/actors in the region low willingness for co-operation (no moderators available, lack of mutual trust) lack of interregional contacts (low export orientation) lack of spill-over effects of major regional investment projects for local businesses

7 Challenge of Halle/Leipzig around 2.7 Million inhabitants economic entity overlapping two German Länder (Saxony and Saxony-Anhalt) high population density, high economic concentration of enterprises in the chemical and energy sector major economic restructuring taking place since 1991: more than 160 investment projects over 25 MECU each were realised since 1991 amounting to 34 Billion EURO (total amount of investments in the region: 50 Billion EURO) new sectors were developed, such as pharmaceuticals or information-technologies and media services

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9 Tool: Networking for Innovation step-by-step confidence building measures in the region (personal contacts) integration of leading companies/science institutions in the networking exercise and close interaction between network activities in working groups and a joint steering group efficiency orientation in the network actions close involvement in the innovation and regional policies of both regional governments/parliaments/monitoring committees

10 Chemical Industry in Central Germany: 7 chemical sites highly interlinked in three German regions The physical network

11 Setting up joint working groups on site development in Central Germany

12 Industrial Sites Small & Medium Enterprises Small & Medium Enterprises Chemical Industries Chemical Industries Universities Training and Education Training and Education Institutes + Organizations Institutes + Organizations Czech Other countries Estonia Poland Slovakia Chemical Triangle East Germany Chemical Triangle East Germany CeChemNet as a networking example

13 …from regional networking to interregional co- operation…

14 Tool: Regional Management System Partner: –City of Halle –6 counties around Halle Working Structure: –Steering Group –Regional Conference (annually) –Regional Association (for co-operation project) –Regional Forum for Central Germany (political platform) –Business Initiaitive Central Germany (business initiavtive) Regional Management –Coordinating office (rresponsible for the day to day management)

15 Objective of the Regional Management System Objective: –Promote regional thinking versus focus on individual interests –Include urban and rural dimension –Define joint priorities and carry out joint planning –Consensus building and joint articulation –Regional Management as an initiator for joint co-operation –Regional Management as a tool for interregional co-operation Tools: –Regular Meetings of decision makers –Partnership of local authorities, businesses and civic society –Information and joint campaigns –Regional and interregional Benchmarking

16 Business Initiative „Central Germany“

17 Conclusions Regional co-operation is essential for efficient regional development Regional partnerships can have an impact on regional development strategies Success orientation and delivery are crucial for sustainability Business can play a major role in overcoming local barriers There is no golden rule – everybody has to find once own solution But there are a lot of experiences to learn from

18 Thank you for your attention!