Download Smart specialisation

On policy spaces of smart
specialisation strategies
Frank van Oort
Dominique Foray’s smart specialisation:
• Why?
• When?
• What (about)?
• How?
• And, so-what?
Why smart specialisation?
(1) Overcoming fragmentation
(2) Facilitating structural change
(3) Promoting innovation
(4) Addressing societal challenges (EU Agenda’s)
(5) Becoming (internationally) competitive
Overcoming fragmentation smartly
(1) Excellence: niches, smart diversification, competitiveness
But also:
(2) Scaling-up: TEN-T corridors, polycentricty, Urban Agenda
(3) Cooperation: 3 or 4 Helix, Juncker (EFSI) investment plan
(4) Redistribution: cohesion policy, migration
(5) Networking: trade, knowledge, FDI
(6) Creative destruction and speed: resilience, transitions
(7) Not overcoming fragmentation
When smart specialisation?
Cluster, industry or activity life cycle
Avoid the structural adjustment phase
So when: always
What (about)?
(1) Diversification (from existing and horizontal)
(2) Cross-overs (from existing and horizontal)
(3) Skills, activities, ecosystem (people- and system based)
(4) Up-scaling of pop-ups (with help of existing)
(5) Transitions (everywhere)
(6) Identification of good pop-ups (what is benchmark?)
(7) Smart network positions (trade, FDI, knowledge: value-chains)
(8) Inequalities (regional)
(9) Institutions (formal and informal)
(10) From government to governance (self-organisation)
More complexity: transitions
•
How?
(1) … to identify and prioritise good entreprneurial opportuinities?
(2) … balance self-organisation with systems and policies?
(3) … balance place-based, people-based and network-based
policies?
(4) … embed S3 in larger EU-goals and policy instruments?
(5) … balance pop-up policies and policymakers with continuous
structural reform?
Ostergötland
”Smart specialisation is a method for prioritising
development projects that boosts companies and
thus a region’s competitiveness. Real
competitiveness leads to increased attractiveness,
which is an efficient shortcut to growth”.
And, so what?
* Lagging regions
* Resilience
* Moving towards technological and societal frontiers?
(“go with the flow”)
* Moving the frontiers? (“surfing the waves”)
* Institutions and governance
* Competitiveness, cities, ERA, Cohesion
* Smartspec is not “home alone”
Untapped potential of S3 in other
overcome-fragmentation discussions!
11
The Smart Specialisation discussion
(1) Implementation ahead of policy ahead of science
(2) In Prague (2015) we dared to say we do not know (everything)
(3) Now (2016) we need tailored advice on local identification,
prioritising, embedding in EU agenda’s, co-creation, orchestration
(4) Transparency is not the only solution
(5) We still need critical reflections from science
(6) Agglomeration literature rule: “Go with the flow”?
(7) Are network positions of regions smart, as there is always
some flow you can tap into? “Surfing the waves”.
Even when everything seems OK
Growth decomposition:
Growth of region i due to demand-led growth in market j
Marketshare of region i in market j
Growth of region i due to structural growth
(gain in market share in market j)
Growth of region j (the Market)
Market j
70% is demand-led growth, 30% is structural growth
14
Losing regions
Gaining regions
0
relative growth of the market
Even when everything seems OK
Declining regions
Potentials
0
gain in market share
15
Gaining regions
Losing regions
Product or
Process Innovation
0
relative growth of the market
Even when everything seems OK
Product Innovation
Renewal
Exit
Declining regions
Potentials
0
gain in market share
16
Even when everything seems OK
Decomposition of growth in GDP of European Regions (2000-2010)
Demand Induced growth in percentages of 2000 GDP relative to median growth
100%
-50%
80%
South Moravia
Murcia
60%
Lodz
Eszak Alfold
40%
Eastern Slovenia
Navarra
Tampere
20%
Orebro
-30%
0%
Cote d’Azuur
Antwerpen
-10%
10%
Limburg
30%
50%
Basilicata
-20%
Bremen
Northern Ireland
-40%
Gain in market share in percentages of 2000 GDP
17