1. Joachim Krebser - Vilnius - 28.11.2002 InnoRegio - the German approach to creating clusters in the “new länder” Lecture at the international conference “Cloning Silicon Valley - will it work for Sunrise Valley?”

2. Joachim Krebser - Vilnius - 28.11.20022 Federal Republic of Germany Eastern Germany (new länder)

3. Joachim Krebser - Vilnius - 28.11.20023 InnoRegio - the German approach to creating clusters in the “new länder” 1. Aspects concerning the “new länder” 2. The InnoRegio-competition 3. The complementary programs 4. Conclusions from InnoRegio

4. Joachim Krebser - Vilnius - 28.11.20024 Deficits for innovation in the “new länder” Only 9% of R&D personnel and 6% of R&D expenditure of German industry (but 21 % of German population) 65% of R&D personnel working in SMEs (vs. 16% in old Länder ) Only few big enterprises Obstacles to innovation in SMEs: not enough own capital resources and qualified staff, management deficits, market entry, extension and protection... Non-monetary capital deficits in R&D (universities, etc.) Consequences of the economic policy of the GDR and of restructuring after German unification

5. Joachim Krebser - Vilnius - 28.11.20025 Spread throughout Germany: Germany’s share of Europe‘s 1000 biggest enterprises is not centralised

6. Joachim Krebser - Vilnius - 28.11.20026 InnoRegio - the German approach to creating clusters in the “new länder” 1. Aspects concerning the “new länder” 2. The InnoRegio-competition 3. The complementary programs 4. Conclusions from InnoRegio

7. Joachim Krebser - Vilnius - 28.11.20027 The 3 phases of the InnoRegio-competition 25 23 Development Implementation 08/1999  11/1999   10/2000   12/ 2006 Network and concept Second selection by panel (19+6) 444 Qualification ApplicationFirst selection by panel Implementation of the innovation concepts - project funding -

8. Joachim Krebser - Vilnius - 28.11.20028 The 3 phases of the InnoRegio-competition 23 Implementation 08/1999  11/1999   10/2000   12/ 2006 25 Development Network and innovation concept Second selection by panel 444 Qualification ApplicationFirst selection by panel Implementation of the innovation concepts - project funding -

9. Joachim Krebser - Vilnius - 28.11.20029 The 3 phases of the InnoRegio-competition 08/1999  11/1999   10/2000   12/ 2006 25 Development Network and innovation concept Second selection by panel 444 Qualification ApplicationFirst selection by panel 23 Implementation Implementation of the innovation concepts - project funding -

10. Joachim Krebser - Vilnius - 28.11.200210 The 23 InnoRegio- networks The InnoRegio-networks

11. Joachim Krebser - Vilnius - 28.11.200211 Reactions to InnoRegio 1999 - 2000 (qualification and development): InnoRegio is attracting a lot of interest from politics and media, good spirit in public opinion. 2001 (begin of implementation): Lots of problems, e.g. networks not able to propose good projects, little willingness to co-operate.  high pressure from local politicians to allow projects more quickly. Bad spirit. 2002 (first third of implementation): 400 concrete projects are working in the 23 InnoRegios. Good spirit in public opinion, national Council of economic experts:

12. Joachim Krebser - Vilnius - 28.11.200212 InnoRegio - the German approach to creating clusters in the “new länder” 1. Aspects concerning the “new länder” 2. The InnoRegio-competition 3. The complementary programs 4. Conclusions from InnoRegio

13. Joachim Krebser - Vilnius - 28.11.200213 Total : 450 Million EUR The complementary programs: (InnoRegio-competition) Innovation forums - Interregional alliances for tomorrow's markets (started in 2001) Innovative regional growth cores (Started in 2001) Centres of innovation expertise (2002-2007

14. Joachim Krebser - Vilnius - 28.11.200214 InnoRegio - the German approach to creating clusters in the “new länder” 1. Aspects concerning the “new länder” 2. The InnoRegio-competition 3. The complementary programs 4. Conclusions from InnoRegio

15. Joachim Krebser - Vilnius - 28.11.200215 Some prerequisites for innovation: Innovation potential to be found mainly in individuals (creativity, skills, traditions...), not in structures. Innovation emerges where frontiers are crossed (between science disciplines, industries, philosophies and behavioural patterns...) Innovation needs both co-operation and competition Quick and easy face-to-face communication and efficient information flows R&D in the innovation process must be combined early on with an entrepreneurial impetus and with a clear commercialisation strategy

16. Joachim Krebser - Vilnius - 28.11.200216 Some prerequisites for innovation: Innovation potential to be found mainly in individuals (creativity, skills, traditions...), not in structures. Innovation emerges where frontiers are crossed (between science disciplines, industries, philosophies and behavioural patterns...). Innovation needs both co-operation and competition Quick and easy face-to-face communication and efficient information flows. R&D in the innovation process must be combined early on with an entrepreneurial impetus and with a clear commercialisation strategy. !!

17. Joachim Krebser - Vilnius - 28.11.200217 Principles of region-based innovation support: Regional principle (advantages of regions - short distances,relations, latent and manifest networks, traditions, mentality...). "Functional" definition of regions. Self-organisation, bottom-up approach, openness as regards players and themes. Communication as pre-condition for co-operation; Innovation concept and commercialisation strategy as pre-conditions for public funding. Sustainable co-operation.  Networking is not an end in itself!

18. Joachim Krebser - Vilnius - 28.11.200218 Goals of publicly funded “clusterisation” Encouraging people's own initiative and entrepreneurial activity. New forms of co-operation between science, education, industry, administration and politics. Innovation networks as economically self-supporting structures. Creation of new and completion of existing value-added chains.

19. Joachim Krebser - Vilnius - 28.11.200219 Goals of public funded “clusterisation” Encouraging people's own initiative and entrepreneurial activity. New forms of co-operation between science, education, industry, administration and politics. Innovation networks as economically self-supporting structures. Creation of new and closing of existing value-added chains. Improving the competitiveness and attractiveness of the regions; economic growth, jobs. 

20. Joachim Krebser - Vilnius - 28.11.200220 Information and contact Internet: www.innoregio.de - in German and English www.wachstumskerne.de - in German e-mail: Joachim.Krebser@bmbf.bund.de Thank you very much for your attention!