1. Global trends in (inter)national policy support for regional innovation Frank Zwetsloot, Director of Science Alliance

2. Contents Why internationalisation as a global trend? National and regional initiatives to support internationalisation New initiative: the Transatlantic Research & Business Accelerator

3. Contents Why internationalisation as a global trend? National and regional initiatives to support internationalisation New initiative: the Transatlantic Research & Business Accelerator

4. Why internationalisation? International R&D is traditionally dominated by large multinational companies Internationalisation and overseas innovative business development is difficult to realise for innovative SME or knowledge institutes Fragmented national attitudes & instruments towards internationalisation & innovation Almost no global approach for innovation stimulation in SME, yet internationalisation creates gazelles

5. International science based business need to connect to: 1.New Innovators Introducing knowledge institutes and smaller and younger companies into the transatlantic innovation arena 2. New Markets Integrating emerging markets and under-developed regions within the EU into the transatlantic R&D processes 3. New modes for networking Using ICT and globalisation to interconnect regional, national and supra-national facilitators in both the USA and the EU 4. Active use of economic and technological complementarity Connecting various regions in the EU and the USA with different levels of economic development on specific areas through co-innovation

6. Why internationalisation? ‘Gazelles’ important for job creation and growth, not only in urban areas: –3% fastest growing companies generated 70% of the new jobs in the USA, ’92-’96 –17% of jobs in Nebraska and 11% in Arkansas are in gazelle companies –the 100 high-tech USA gazelles ranked in the magazine Business 2.0 created 90,000 new jobs in 2006

7. Why internationalisation ? SME often cannot grow because of –small home market –lack of R&D capacities in own country Gazelles are fast growing SME and important for national growth –the 100 high-tech USA gazelles created 90,000 new jobs in 2006 (Business 2.0) Solution: internationalisation of SME creates gazelles

8. Why internationalisation ? Example 1: Gene Networks Int., fast grower, founded in 2001, HQ in Japan HQ & Business development in Tokyo R&D in Cambridge, Great Britain Intellectual property functions in the USA Clinical trial functions in China A truly science-based micro-multinational

9. Why internationalisation ? Example 2: Advanced Lightweight Engineering, founded in 1996 in Delft (NL) Medium-sized company 2006: found important client in China Became gazelle Internationalisation created gazelle

10. Why internationalisation ? Example 3: Centocor (pharmaceutics), founded in 1984 in Leiden (NL) US company internationalised to Leiden motivated by its excellent research and science park European market pull created 500 jobs in a few years Internationalisation sustained growth

11. Why internationalisation ? Internationalisation helps (the creation of) gazelles Gazelles propel job and economic growth and boost science-based innovation Both growth and innovation are a national and regional priority Internationalisation is difficult, hence initiatives to support this

12. Contents Why internationalisation as a global trend? National and regional initiatives to support internationalisation New initiative: the Transatlantic Research & Business Accelerator

13. Initiatives for support in NL One Ministry of Economic Affairs Internationalisation (through export, expansion, cooperation) is a national priority Plethora of initiatives to support internationalisation of SME

14. Initiatives for support in NL SenterNovem (international subsidies) TWAs (international science & technology contacts) EVD (export and establishment in foreign markets) NFIA (attracting foreign direct investments) Co-innovation (int. regional cooperation) Several sectoral initiatives to support science- based business development

15. Initiatives for support in NL Example 1: ‘Industrialised Countries’ subsidy via SenterNovem Cooperation of Dutch SME with R&D in North-America, Singapore or Japan Leading to innovation in SME €1 million subsidy per project 45% of SME costs subsidised

16. Initiatives for support in NL Example 2: ‘Starting on Foreign Markets’ subsidy via EVD Export or investment in foreign markets (e.g., North-America) by Dutch SME Leading to export plan and growth in SME €11,500 per project 50% of SME costs subsidised

17. Initiatives for support in NL Example 3: South Holland-Shangai/Pudong Co-innovation Program Achieving more national growth by international cooperation that strengthens regional innovation through –Better qualified researchers –Research and production alliances –Supporting high-tech businesses

18. Initiatives for support in NL

19. Contents Why internationalisation as a global trend? National and regional initiatives to support internationalisation New initiative: the Transatlantic Research & Business Accelerator

20. What is the Transatlantic Research & Business Accelerator (TRBA)? An intermediary system, connecting research and business between European and American regions to stimulate the internationalisation of science-based business Regions are stakeholders, companies and research institutes are clients Stakeholders pay an annual fee

21. Why is the TRBA needed? To organise interregional complementarity in research, business development, production and market access Science-Based Regional Development is more and more an international process Reducing cost and time for companies to internationalise

22. The process of science-based regional development Research Business Development Production Market Research Business Development Production Market Science-Based Region in EU Science-Based Region in CA

23. What will the TRBA do? Connecting science-based regions in North-America and Europe Matchmaking companies, research institutes and investors in these regions Disclosing information about the regional innovation systems and their facilities Providing an easy access point for SMEs

24. How does it work? Science Park incubator University Regional Govt. Region 1 A B C instruments Country 1 -Export -Foreign Investment Agencies -R&D -Investors/partners -Export -Foreign Investment Agencies -R&D -Investors/partners A B C Science Park incubator University Regional Govt. Region 2 instruments Country 2 National level Supra-national level World BankEU – FP7 USA programs TR&BA rep TR&BA rep Regional level Virtual & Personal Innovation networks Instruments Clients Institutions Facilitators Clients

25. International Research Cooperation Programs International Technology Cooperation Programs International Research Exchange Programs International Development Aid Programs Export subsidies of high tech products, country 1 R&D cooperation subsidies, country 1 Scientific cooperation subsidies, country 1 Research exchange programmes, country 1 Foreign Affairs (if devp. Aid is applicable) country 1 National foreign investment agency, country 2 Regional Chambers of Commerce, region 1 Regional export.innovation facilitators, region 1 Regional governments, region 1 Regional Development Agencies, region 2 Regional Foreign Investment Agencies, region 2 R&D cooperation subsidies, country 2 Scientific cooperation subsidies, country 2 Research exchange programmes, country 2 Science & Technology Counsellor, country 1 Science Park, city 2 Overview of potential partners, city 2 Insight in university contacts, city 2 Local establishment facilities, city 2 A: Supra-national level: Know the Institutions B: National level: Know the national instruments C: Regional level: Know the regional facilitators D: Local level: know the companies & scientists Connecting Local Innovators to International, National and Regional Facilitators Science Park, city 1 Advisors international business development, city 1 Insight in university contacts, city 1

26. What are the TRBA targets? €5 million deal flow (foreign direct investments, contracts, internationalisations) €500,000 subsidies for companies and research institutes 6 successful internationalisations per member

27. See you next year in Halifax! Expanding your Science- Based Region Halifax – Canada September 2008 Fifth Annual Conference of The TechnoPolicy Network