REGIONS AND NEW PRODUCT DEVELOPMENT Vangelis E.Katsaros Chemical Engineer NTUA PhD Candidate University of Thessaly Ioannis L. Bakouros Ass. Professor University of Thessaly VERITE, MANTOVA, October 2002

THE CONTRIBUTION OF REGIONS TO NEW PRODUCT DEVELOPMENT New Product Development Strategy As Catalyst for Regional Welfare Formulation & Implementation The Case of Thessaly, Greece

IDENTIFICATION OF PROBLEM  “Underperformance” in relation to other regions  Structural deficiencies Unemployment – Regional Welfare Decline

THESSALY’S INNOVATIVE PAST  Since 1997, the Region of Thessaly is actively involved into initiatives promoting innovation and technological development. The Region has been selected to participate in a number of innovative actions of the ERDF, including RIS Thessaly ( ), RIS+ Thessaly ( ), Regional Economic Intelligence (Innovation Programme, ), InnoRegio (RECITE II, ), which led to the formulation and implementation of a regional strategy for innovation and technological development

THESSALY’S INNOVATIVE PAST Up-today main tested priorities of the innovation strategy developed in Thessaly were: the promotion of the culture of innovation, the strengthening of the business innovation capabilities, the promotion of R&D services, the improvement of the human capital potential, and the development of innovation financing mechanisms  These priorities were specified in pilot projects and soft actions that were implemented with funding from the Regional Operational Programme and other innovative actions

THESSALY’S CURRENT POSITION IN INNOVATION  Thessaly actually holds a leading position among the Greek regions in terms of social mobilisation, promotion, and support for innovation. This became evident at the 1 st Innovation Week and Contest (7-13 May 2001)  Thessaly’s four-year innovation strategy, established through RIS and RIS+ programmes, is integral to the economic development and the growing research and development capacity of the region, assessing the strengths and weaknesses of Thessaly’s innovation system, and formulating ways to improve performance in this area. It also sought to provide a framework to address innovation policy issues in a comprehensive and coordinated manner

THESSALY’S CURRENT POSITION IN INNOVATION The enhanced RIS+ plan was derived from the following needs to effectively move ideas to prosperity (i.e., the innovation cycle). 1.Identify fragmented streams of innovation activities which could be coalesced with a new common innovation framework; 2.Define the collaborative framework of shared prosperity; and 3.Suggest a blueprint for a dialogue, which may chart a direction toward the emerging 'world trade of ideas'.

THESSALY’S CURRENT POSITION IN INNOVATION The Region’s RIS/RIS+ Action Plan for Innovation is articulated around six action axes: 1.Promotion of innovative mentality. 2.Technological restructuring of the productive structure and strengthening of the innovative competence of businesses. 3.Development and promotion of services by the research and technological infrastructure as well as by the business support organizations. 4.Development of human resources and business capabilities 5.Development of financing mechanisms. 6.Monitoring, evaluation and renewal of the region’s strategy and its competence to learn and evolve.

THESSALY’S FUTURE A WORLD CLASS OF IDEAS INTO INNOVATIVE ACTIONS

THESSALY’S FUTURE  RIS+ of Thessaly moves a step forward the innovation process capitalizing on the progress of the RIS programme has achieved, and realizing the benefits of innovative actions in the application area of profitability and revenue generating outcomes.  The next step forward is the synchronization of regional innovation resources into a compound effort that incorporates generation of ideas funding, regional support and policies in order to facilitate the innovation mechanisms in Thessaly

This synchronization process has to take a deliberate and systematic effort that must be equally contributed to:  Retooling the innovation process with on-line tools  Upgrade the human resources depository in the region  Empower the innovation process inside SMEs with pilot actions

THESSALY’S COMPREHENSIVE STRATEGY Thessaly’s Innovation Strategy 3 rd Development Pole Calibrating the innovation strategy Transformation to innovative actions Focus Area

NEW PRODUCT DEVELOPMENT STRATEGY  Why an NPD strategy NPD Strategy  What characteristics an NPD strategy must have ?  What steps must be taken to formulate and implement such a strategy

MAIN TARGETS  Strategy’s main objective is to improve the capability of regional companies “to create and market”. This compound effort aims to result into a fast forward process that will accelerate the time needed from idea generation to a new product development.

NPD Strategy Targets 1. Creation of new companies 2. Attracting new investments 3. Supporting private firm innovative activities 4. Modernizing the region’s industrial base through technology transfer, upgrading existing infrastructure and skills within the region 5.Promoting social engagement and widening participation 6. Continuously improve the regional policy making

INVENT (Innovative Ventures in Thessaly) Targets (1) application of innovative practices for product development and marketing, (2)creation of regional support structures for new product development, and (3) building of regional awareness with demonstration and dissemination actions on new product development.

REGIONAL DEVELOPMENT FUND AND NEW PRODUCT DEVELOPMENT STRATEGY

RESULTS – FUTURE ACTIONS InnoRegio INVENT a.Foundation of Mechatronics Center engaged in activities such as Rapid/Virtual Prototyping, etc b.Establishing of Learning Networks in sectors:  Food  Textile & clothing  Wood & furniture  “Smart” building

RESULTS – FUTURE ACTIONS RIS RIS+ INVENT a.Regional Innovation Support Center b.Innovation Week & Contest c.Digital Innovation Center d.Documentation Center e.Thessalian Quality Trade Mark for Services in Tourism f.1 st National Contest in Designing Furniture g.Benchmarking Database

NEXT STEPS  Active participation in Networks of Excellence  Proposal & Initiatives for Interregional Networks of Businesses

REGIONAL WELFARE Region of Thessaly, unanimously, has made the choice of New Product Development Strategy as the engine that will lead to sustainable economic and social development in the years to come. THANK YOU!