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International Conference on
Entrepreneurship and Business
Incubation - Strengthening the
Regional Innovation Profile Bremen
16-17 October 2003
Support for the coherent development of policies
Indicators for
Regional Innovation
Performance
Fabienne Corvers
European Commission
DG Research
[email protected]
Support for the coherent development of policies
Towards the knowledge-based economy

ERA (2000):
European Research Area

Lisbon European Council (2000):
vision ‘Europe to become the most
competitive and dynamic knowledgebased economy in the world by 2010’

Barcelona European Council (2002):
target ‘3% GDP average investment in R&D
by 2010’ and ‘2/3 financed by business, 1/3
financed by government’

2000-2010:
RTDI top priority for EU
Support for the coherent development of policies
The European Research Area

New vision for European research
 Avoid 15 (25) + 1 policy framework
 Reduce fragmentation of effort
 Improve use of scarce resources

Important role for regions
 Message: need to pay more attention to regional
actors and factors within EU and MS research policy
 Role for regions: bridging the gap between knowledge
creators and knowledge users in each region
 Starting point: identification of regional needs
Support for the coherent development of policies
Theoretical background
New Economic Geography
“Old” Economic Geography
New Growth Theory
Innovation Economics
New Trade Theory
Industrial Economics
New Institutional
Economics
Network Economics
Regional Science
New
Economic
Geography
Knowledge Economics
Geography of Innovation
Regional Innovation Models
National Innovation Systems
Innovation and Technology Policy
Source: Koschatzky, 2003
Support for the coherent development of policies
 Macro level:
National innovation systems, ‘learning economy’:
impacts of national institutional fabric on innovation
processes and on the competitiveness of firms
 Meso level:
regional innovation systems, learning regions: argue
with governance structures/MLG relationships; public
vs private, old vs new economy innovation systems
 Micro level:
different cluster, network and milieu-oriented
approaches: spatial proximity, external effects,
knowledge spillovers, culture and identity,
embeddedness
Support for the coherent development of policies
Innovation is an interactive process
R
R
3
D
C
Potential
market
4
K
1 2
C
Invent and/or
produce
analytic design
f
4
R
RESEARCH
3
K KNOWLEDGE
1 2 C
Detailed
design
and test
f
3
4
I
K
1 2
C
Redesign
and
produce
f
Distribute
and
market
f
F
F
F
The Chain-Linked Model of Innovation by Kline and Rosenberg, 1986
Support for the coherent development of policies
S
The innovation system
model: a heuristic tool
Framework Conditions
Financial environment; taxation and
incentives; propensity to innovation
and entrepreneurship; mobility ...
Demand
Consumers (final demand)
Producers (intermediate demand)
Education and
Research System
Industrial System
Large companies
Mature SMEs
New, technologybased firms
Intermediaries
Research
institutes
Brokers
The potential reach
of public policies ...
Professional
education and
training
IPR and
information
Innovation and
business support
Government
Higher education
and research
Governance
Public sector
research
RTD policies
Infrastructure
Banking,
venture capital
Political
System
Standards and
norms
Source: Technopolis 2000, modified and extended
by S. Kuhlmann, 2003
Support for the coherent development of policies
Regional innovation system
Science sector/
Technology supply
Universities
Engineering
Research facilities
Economic services
TT Institutions
Policies
Innovation
services
Financial support
Technology-related
information and training
Regional policies
National/international
policies
Technology centres/
Infrastructure
science parks
Technical
infrastructures
Potential and actual educational
level of the workforce
Regional
environment
Consultancy
Networking
between the
different elements of
the regional
innovation
system
Venture capital
Customers Industrial base
Suppliers
Competitors
Sub-contractors
Quality of living
environment
"Milieu" or
"innovative culture"
Cooperation
partners
R&D
Inter-firms
relations
Investments
Firm's branch Employee
and size qualification
Firms'
R&D efforts
Source: Koschatzky, 2003
Support for the coherent development of policies
Regional RTDI Indicators

Indicators:
 powerful policy tool

Emphasis on input indicators
 R&D expenditures by institutional sector
 R&D personnel by institutional sector

Some output indicators
 Patent and high tech patent applications
 Employment in high tech sectors
Support for the coherent development of policies

More output indicators needed
 Innovation expenditure as a percentage of turnover
 Increase in market share due to new/improved
products or introduction of new/improved processes
 changes in labour productivity over the past 5 years

Even more process indicators needed
 Linkages between knowledge creators and
knowledge users within region (university-industry)
 Linkages of regional knowledge creators and users
with those outside region (mobility, joint projects)
Support for the coherent development of policies
Advantages and Disadvantages

Input/Output indicators:
 Components of regional innovation system
 Focus on capacities in terms of resource
endowment (‘knowledge stocks’)
 Criticism: static view of the region
 Regional data: available and EU-wide comparable

Process indicators:
 Interfaces between components of RIS as well as
between RIS and external world (‘knowledge flows’)
 Idea: quality of interfaces determines innovative
capabilities of system (dynamic view)
 Limited availability of (EU-wide comparable) data
Support for the coherent development of policies
Four dimensions to measure
the performance of innovation system

Research capacity:
 proportion of scientists and engineers (S&E) in
the workforce; public investment in R&D
(GOVERD and HERD); number of scientific
publications produced per capita

Social and Human capital:
 percentage of GDP spent on education;
percentage of working population with thirdlevel qualifications; the degree of participation
in life-long learning
Support for the coherent development of policies

Technological and innovative performance:
 amount of R&D performed by industry (BERD
as a % of GDP); number of patents per capita;
innovation expenditure as % sales

Absorption capacity:
 capacity of firms to renew product ranges;
improvements in labour productivity; overall
trade performance
Support for the coherent development of policies
Public Sector
Private Sector
Social and human capital
Absorption capacity
1. percentage of GDP spent on education
1. capacity of firms to renew product ranges
Knowlegde
2. percentage of working population with
2. improvements in labour productivity
Users
third-level qualifications
3. overall trade performance
3. degree of participation in life-long learning
Research Capacity
Knowledge 1. proportion of scientists and engineers
Creators 2. public investment in R&D
3. number of scientific publications
Technological & Innovative performance
1. amount of R&D performed by industry
2. number of patents per capita
3. innovation expenditure as % sales
Source: Soete et al. 2001
Support for the coherent development of policies
Possibilities with
regional RTDI indicators

Single dimension
 Top 10 of ...

Matrix of two dimensions, e.g.
 regional GDP and R&D expenditure (GERD)
 R&D investments (GERD) and R&D performance
(patents)
 R&D expenditures by institutional sector and
source of funding by institutional sector

More than 2 dimensions:
 single index and composite indicator
Support for the coherent development of policies

Combining RTDI indicators with other
regionalised indicators, e.g.
 share of total employment in agriculture
 share of youth unemployment
 share of highly qualified people on labour market

Develop new indicators and design data
collection methods (survey, expert panels,
interviews, …)
 To measure quality of intra-RIS linkages
 To measure extent and nature of extra-RIS linkages
(trade, import of equipment, foreign investments in
region, investments by regional firms abroad, …)
Support for the coherent development of policies
Technology
supply
Forecasting
inventory approach
Policies
Innovation
services
Instruments
evaluation
Supply/demand
approach
Strenght/Weakness
approach
Regional
environment
METHODOLOGIES
TO INVESTIGATE
REGIONAL
INNOVATION
CAPABILITIES
Network approach
Inter-firms
relations
Inventory
approach
Firms
R&D efforts
Global overview
Search for coherence
Source: FhG-ISI, 1995
Support for the coherent development of policies
More information

Third European Report on Science and Technology
Indicators ‘Towards a Knowledge-Based Economy’
http://www.cordis.lu/indicators

Communication on the Regional Dimension of the
European Research Area adopted on 03.10.2001
http://europa.eu.int/comm/research/index_en.cfm, http://
europa.eu.int/comm/research/press/2001/pr0410en.html

ERA-NET Scheme
http://europa.eu.int/comm/research/fp6/coordination/eranet_en.html, http://www.cordis.lu/coordination/era-net.htm

EUROSTAT
http://europa.eu.int/comm/eurostat/
Support for the coherent development of policies