1. Arkadiusz Michał Kowalski arkadiusz.kowalski@sgh.waw.pl World Economy Research Institute Warsaw School of Economics The Visegrad countries’ innovative capacities and cluster cooperation Institute for Foreign Affairs and Trade, Budapest 07.11.2014 1

2. 2 Innovation as a key driver for competitiveness  Greater value added in production now comes from knowledge  The role of innovations is increasing in comparison to traditional factors of production: capital, labour and land.  It is estimated that about 2/3 of economic growth in world economy is connected with innovations.  Total-factor productivity (TFP) (Solow residual): the effects in total output not explained by the amount of inputs used in production. the efficiency of combining production factors a measure of an economy’s long-term technological change

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4. Moderate innovators’ innovation performance (SII), with focus on V4 countries 4 Based on data from: European Commission. Enterprise and Industry (2014), Innovation Union Scoreboard 2014.

5. 5 5 PLPL How to measure the level of innovativeness of the economy?

6. Basic indicators describing the innovative ability of the Visegrad countries (2012) 6 Indicator Czech Republic HungaryPoland Slovak Republic 1GERD as a percentage of GDP1.881.30.90.82 2BERD as a percentage of GDP1.010.850.330.34 3HERD, % of GDP0.520.240.310.28 4GOVERD, % of GDP0.3590.250.20 5 Industry-financed GERD as a percentage of GDP 0.680.610.290.31 6 Total R&D personnel per thousand total employment 11.868.725.868.16 7Venture capital, % of GDP0.0030.0660.002no data 8 Investments on intangible fixed assets, % of total GFCF 5.8554.5833.163.861 Based on data extracted on 11 Oct 2014 and 21 Oct 2014 from OECD.Stat.

7. Relations between basic and applied research expenditures and BERD financed by abroad in the Visegrad countries 7 Based on data extracted on 11 Oct 2014 and 21 Oct 2014 from OECD.Stat.

8. Basic indicators describing the innovative position of the V4 countries (relative, standardised values) 8 Based on data extracted on 15 Oct 2014 from OECD.Stat.

9. Innovation capacity in high-technology sectors 9 Based on data extracted on 15 Oct 2014 from OECD.Stat. Indicator Czech Republic HungaryPoland Slovak Republic % of BERD performed in the pharmaceutical industry 2.8825.974.853.88 % of BERD performed in the computer, electronic and optical ind. 3.186.812.991.49 % of BERD performed in the aerospace industry 1.57no data2.53no data Indicator Czech Republic HungaryPoland Slovak Republic Export market share: Pharmaceuticals0.340.940.480.08 Export market share: Computer. electronic and optical industry 1.120.920.61 Export market share: Aerospace0.20.040.520.01 Exports, high tech., %0.2080.3130.1030.188 Exports, medium-high tech., %0.4530.4040.3760.43 Innovation position in high-technology sectors

10. CLUSTERS Cluster – geographic concentration of interconnected companies and associated institutions in particular fields that compete but also cooperate (M.E. Porter). 10 Cooperation + Competition = COOPETITION Triple-helix concept initiated by Etzkowitz (1993); Etzkowitz and Leydesdorff (1995)

11. 11 Sectoral concentration Different actors (vertical dimension) Proximity Linkages Interactions Different aspects of clusters and innovations Geographic concentration Polarisation From linear to interactive model of innovation process Synergy and spillovers Innovative push and pull (horizontal dimension)

12. 12 Location quotients (LQ) for employment for Polish NUTS 4 regions in the background of formal cluster initiatives Source: A.M. Kowalski (2013)

13. 13 Internationalization of cluster initiatives as a new phase in the development of clusters Some of the positive aspects of inter-cluster cooperation in the Visegrad countries include:  technology transfer, and exchange of experience, good practices, and information (for example about market needs or existing cluster policies in different countries),  broadening the base of partners, and networks of cooperation,  access to new markets, and customers,  marketing possibilities on the international level,  cooperation on common research, development, and innovation (RDI) projects,  common business, mutual purchases, trade cooperation.

14. 14 V4 Memorandum of Understanding on Co-operation in the field of the Cluster Development of the V4 countries Signed at the V4 Economic Ministerial Meeting in Budapest on 26 November 2009. The parties:  agreed to promote the better mutual understanding of the clusters of V4 countries,  collaborate in development of clusters and to encourage cross- border cooperation between cluster initiatives, for example by establishing shared points of information,  stressed the importance of intensive promotion of Research, Development and Innovation (R&D&I) aspects in associations engaged in clustering processes.

15. 15 The ClusterCOOP Project led in 2011-2014 by the Hungarian Ministry of National Economy in the framework of the EU’s Central Europe Programme. Three specific objectives defined by Partners of that programme were to: 1)enhance existing and create new synergies among national and regional cluster policies and funding frameworks, 2)facilitate emerging industry development through cross regional cluster cooperation, 3)promote the flow of information between cluster initiatives and provide a common knowledge base to facilitate cooperation.

16. 16 Boosting V4 Cooperation through Strategic Cluster Identification, Networking and Informatisation – V4 Clusters Project (since October 2013 to December 2014) Three main activities: Identification of cluster organizations within the Visegrad countries, resulting in a creation of cluster databases classified according to geographical location, sector, lifecycle and current V4 cooperation activities. Networking and cluster match-making events, with participation of cluster partners both within the value chain and the complementary sectors for establishing collaborative cluster networks. Informatisation of the identified cluster data, which are made accessible via a communication interactive portal (as for now – database of 120 cluster initiatives in Excel file) 4 of November 2014, Ostrava: Establishment of the V4Clusters Board

17. 17 Main foreign partners for Polish cluster initiatives The results of the survey research on international cooperation of cluster initiatives in Poland, 2012 [n=50] 58% of analyzed cluster initiatives in Poland cooperates with foreign partners, from: Germany (15 (30%) cluster initiatives in Poland), Spain (8), Italy (6), Austria and the United Kingdom (5). Hungary, Finland, France, Latvia, Sweden (4), Belgium, Denmark, Netherlands, Portugal and Ukraine (3), Czech Republic, Greece and USA (2). Slovak Republic, Albania, Australia, Brazil, Bulgaria, India, Israel, South Korea, Mexico, Norway, New Zealand, Romania, Slovenia, Switzerland and Turkey (1). Based on: A.M. Kowalski (2013)

18. Thank you arkadiusz.kowalski@sgh.waw.pl 18