Innovation and regional development Prof. Gianfranco Viesti (University of Bari and ARTI, Agency of Innovation Regione Puglia, Italy)

1 the scenario 2 the strategies 3 the policies

globalization

reduction of transport and information costs ITC connections (millions) Fonte: IDC, 2006 | * Previsioni

growing high tech production and trade

Outsourcing and trade by tasks (from sectoral competitive advantages to product differentiation)

Increasing role of technology in the production and trade of traditional goods and services: (ICT, materials, automation…)

Innovation and learning are cumulative processes: there are two-ways interactions between research, innovation and production

Geographical concentration of innovative regions

Innovation is a localized process: it is generated by the interaction of firms and institution in a city/region

2 Strategies

It is impossible to compete only on costs Every country and region (whatever it produces) need innovation to increase productivity and competitiveness

This means: more technology and innovation in what is produced (both goods and services); new competitive, differentiated, “niches” more technology-based

Competitive regions are specialized and different: no single way or recipe for development (Giorgio Fuà)

How? Market is not enough Public policies are also needed to create “regional innovation systems”

3 Policies

The goal of regional innovation policies: building and reinforcing a regional innovation system

Building and reinforcing a regional innovation system means: -stronger actors -more cooperation -long term strategies -”culture of innovation”

Stronger firms - Incentives for firms’ R&D - Incentives for skilled employment -…

New firms - Attraction of talents and enterpreneurs - Attraction of foreign firms and labs - Spin offs - New innovation –based firms - Finance for high-risk new firms

RD expenditures of foreign-owned affiliates as % of total RD

Stronger public production of knowledge -Schools, schools, schools -Funding universities and RD labs (based on evaluation)

Public private cooperation - Joint research projects - joint research labs - technology transfer bodies

Long term strategies for clusters -Foresight -Risk reduction -Long term goals

“Innovation culture” -Education -Evaluation -Change

Policy implementation: the experience in Puglia -An Agency for innovation (ARTI) -Goals; budget; evaluation -Small with a large network -International cooperation and benchmarking

Policy implementation: -development not dreams -avoid ideological extremes (picking the winners, market alone) -build trust and cooperation -regional-national cooperation Thanks