1. Conceptualising R&D Specialisation in an ERA Setting: Towards ‘Related Variety’ Ecologies Phil Cooke, Centre for Advanced Studies, Cardiff University, LEREPS Toulouse University & Development Studies, Aalborg University Presentation to OMCNET Workshop on: Research specialisation in the EU Luxembourg, 23 April 2010

2. EU S&T Specialization 2005

3. EU Regional S&T Over GDP Variations

4. EU 25 Regional Clusters

5. Regional Knowledge Capabilities: Base of Regional Innovation System

6. Regional Development & Related Variety Evolutionary economic geography concept: ‘related variety’ after Jane Jacobs contra MAR Empirically tested Boschma/Frenken; Cantwell/Iammarino; Shows innovative growth (i.e. regional development) as a mix of proximity (social capital dimension) & knowledge spillovers Regional economies not too specialised, not too diversified grow fastest – related variety (platform) Neighbour sectors in neighbouring places High lateral absorptive capacity, low cognitive dissonance regarding ‘knowledge spillovers’

7. Schumpeterian Regional Innovation California’s (Jacobian) Clusters Cluster Legend: Clean Tech Biotechnology Wireless ICT Agro-Food Organic Food Wine Film Click for

8. Jutland’s Solar Thermal Cluster Source: ESTIF Data Danfoss A/S Grundfos Sensor

9. The North Central Jutland Wind Turbine Cluster Source: Danish Wind Industry Association Data, 2007

10. Clean Tech Biotechnology Wireless Agro-Food (Organic) Agro-Food (Conv.) Furniture Fashion Engineering (Fish) Engineering (Pipes) N. Jutland’s Jacobian Clusters

11. ICT Biotech Medtech Cleantech Israel’s Jacobian Clusters

12. Open Innovation: Pharmaceuticals

13. SME Biotech R&D Productivity

14. R&D Outsourcing

15. China

16. Decline of In-House Corporate R&D

17. Global Bioscience Publication Shares

18. Boston Biotech: The Perfect Cluster ( Incomers: Pfizer, Novartis, AstraZeneca, Sanofi, Merck, Bristol Myers Squibb, Shire, Lonza )

19. Region Skåne Clusters: ’White Spaces’ Exploration Food Mobile Heights Moving Media Life Sciences CleanTech Packaging Security Food Sub-fields e.g. Milk, bread…. VINNOVA VINNVÄXT VINNOVA VINNVÄXT Innovation at Interfaces SFIN Management CouncilsCouncils CouncilsCouncils Ideon Food Network Oresund Food Network BaltFood Baltic Sea Region County Membership Gender ERDF Region Incubators Projects Universities BIGCos SMEs Foresight, ideas, Innovation Testbed s Customers Sk å ne Food Innovation Network in Region Skåne Regional Innovation System Source: CASS

20. Midi-Pyrénées Transversal Innovation Platform Model Region Midi- Pyrénées Sector Policies Poles de Compétitivité SRDE Indicators (CAVALA) DRIME (Mutations) Lead Firms Hub Firms FoodHealth BioAerospace System Providers Interface Firms SME Innovators GROUP TRANSVERSALITY Technological Potential Barriers Methodology Regional EU National

21. Bayern Innovativ: Technology Platforms

22. Steel & Engineering The Paper Province GraphicValley Advertising and Design agencies Food Compare Kil food innovation arena Clusters / branches and Innovation milieus in Värmland Idea of an innovation platform Industriel cluster / strong branch Innovation platform The Packaging Arena The Packaging Arena Broby Grafiska The Packaging Greenhouse The packaging medialab Svenska Felxograi- insitituet Dotank Designstudio Compare Testlab EnergySquare Glava Energy Centre Plant Design ICT in Pulp and Paper

23. Conclusions 1. Turbulent Times – New Approaches Adding value to clusters displaying ‘related variety’ Research shows relatively few EU ‘white space’ competitors Region Värmland (one big platform) Region Jutland (flexible – energy - sub-systems) Lower Austria & Bavaria – cross-fertilization Marche, Italy – create new cluster Midi-Pyrénées – Exploring ‘Transversality’ Transversality – Innovation policy for 2020

24. Conclusions 2. It is not clear that ERA is particularly geographically (nation or region) specialised Intra-mural Corporate R&D is fragmenting Open innovation & R&D outsourcing/ knowledge capabilities SME R&D is Converging in cluster-platforms/RIS The world is not flat but spiky R&D ecologies evolving around ‘related variety’ spikes EU must understand this if Europe 2020 is to be meaningful