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Tools for strategic governance of industrial innovation policy in Flanders Regions for Economic Change – Tools for smart regions 23 June 2011, Brussels Jan Larosse, EWI - Flemish Government OVERVIEW 1. Background on Flanders 2. Developments in innovation policy 1. 2. 3. Recent developments in strategic governance 1. 2. 3. 4. 2. 2 Towards a more targeted innovation policy ‘New Industrial Policy’: an integrated policy for transformation Management Structure for NIP: new governance for targeted cluster policy Exploration of ‘smart specialisation’ 1. 5. Future strategy ‘Flanders in Action’ ‘Spearheads’: focussing innovation policy on 6 thematic clusters OECD-project for new methodologies to support design and assessment of smart specialisation strategies Tools for designing smart specialisation strategies Call for collaboration in a S3 project: benchmarking strategic governance Flemish government | Department of Economy, Science and Innovation FLANDERS: Key Figures Flanders: a prosperous region with an open economy in the core of Europe Population: 6.28 million (= 57.6% BEL) Language: Dutch (NL) Surface: 13.521 km² (= 45% BEL) GDP: €194 billion Export : 100.3% of GDP (BEL = 73.3%) GERD: €4.15 billion (+- 2/3 of BEL), of which €2.7 billion BERD (2009) % GERD/BBP: 2.12% (2009) Total public budget STI policy: €1.7 billion of which €1.07 billion R&D The region has constitutional competences on research, innovation and economic policy 3 Flemish government | Department of Economy, Science and Innovation Why ‘smart specialisation’ is important for Flanders ‘Flanders in Action’: strategic framework for a new growth path because of weakening competiveness and de-industrialisation Future project (starting 2006) of the Flemish government, supported by +100 stakeholder organisations (‘Pact 2020’), Responding to competitiveness problem; aiming at a ‘top 5 region’ position in Europe = transition towards an innovation driven growth model, Consensus that STI investments should be focussed on ‘spearheads’: domains that can position Flanders in future value chains with important societal and economic impact. STI Advisory Council (VRWI) selected 10 ‘spearheads’ (breakthrough initiatives) in 6 Cluster domains (still mainly technology driven) in 2008. The financial crisis imposed budget cuts. In 2011 the growth path resumed, but the budget constraint urges stronger prioritisation and focus. 4 Flemish government | Department of Economy, Science and Innovation Focussing on 10 spearhead initiatives in 6 ‘clusters’ SWOT Analysis of Flanders vs EU • • • 5 EU Foresight Study with 15 key areas Departure from pure ‘bottom-up’ innovation support policy Focussing public S&T resources on 6 ‘clusters’ identified by expert consultation Still large domains: how to make further choices? Flemish government | Department of Economy, Science and Innovation NEW INDUSTRIAL POLICY: an integrated framework • White Paper ‘New Industrial Policy (27 May 2011): Integrated policy platform for economic transformation • A new Productivity Offensive Increase knowledge productivity in clusters (critical mass and specialisation) Support ‘lead companies’ Industrial ‘lead markets’ and Innovation Policy ‘lead clusters’ Factory of the Future • Transformational Sectoral Policy Focus on transformation strategies based on value chains, clusters and grand projects 6 Productivity & Competitiveness Policy New Industrial Policy Infrastructures Policy Competences & Labour Market Policy Flemish government | Department of Economy, Science and Innovation Governance model for NIP • Transformation needs new governance: Interministrial Committtee Industry ICI Industry Board Advisory bodies (SERV – VRWI) Interdepartmental Coordination (lead by EWI) Productivity & competitiviness policy • • 7 Industrial Innovation policy Competences & Labour market policy Supportive infrastructure policy ‘Innovation Direction Groups’ (R&I Advisory Council) to develop strategies for broad innovation areas (challenges) ‘Industry Board’ (international experts) will advise on targeted cluster policy to select lead clusters in these domains Flemish government | Department of Economy, Science and Innovation ‘Smart Specialisation’: exploring new methodologies Flemish innovation and industrial policy is in search of a method for making choices, to reach the targets of the Flemish ‘Pact 2020’, based on transformation of value chains, spearhead domains, lead-companies and open innovation, targeted cluster policy. 1.Own frontrunner experiences: e.g. FISCH (Flanders Initiative for Sustainable Chemistry) Transformation strategy supported by broad mobilisation in sector = Strategic research; open innovation infrastructures; new bus. models Develop world-class industrial cluster via international benchmarking 2.International policy learning: lead-role in new OECD project ‘Smart Specialisation in Global Value Chains’ Use of strategic monitoring & case-studies for ‘discovery’ of smart specialisation Aimed at criteria for identifying smart specialisations & design strategies 3.S3 Platform: Call for Working Group on benchmarking strategic governance for smart specialisation, linked with OECD project 8 Flemish government | Department of Economy, Science and Innovation Tools for strategic monitoring: specialisation profiles 1. Benchmark comparative strengths in S&T and economic performance 9 Flemish government | Department of Economy, Science and Innovation Another tool: FOCUS MATRIX for Smart Specialisation Strategies 2. Identify smart specialisations at cross-road of regional innovation competences and market opportunities/societal challenges SOCIETAL CHALLENGES Energy/Resources/Health/Mobility/... DEMAND-SIDE MARKETS Value chain development Solutions Systems INTEGRATION SUPPLY-SIDE P1 P2 TECHNOLOGY PLATFORMS CLUSTERS SMART SPECIALISATIONS Py OPEN INNOVATION Pz Competence development Education R&D Training 10 COMPETITIVENESS LOCAL ATTRACTIVENESS EXCELLENCE Flemish government | Department of Economy, Science and Innovation Another tool: cluster maps for smart specialisations 3. Map eco-systems for smart specialisations Idea Consult 11 Flemish government | Department of Economy, Science and Innovation Call for collaboration in S3 Platform • What is new? Smart specialisation = interactive development of focus strategies in a (interdependent) knowledge-based economy • Comparative advantage= a competitive and cooperative ‘positioning’ Joint ‘discovery process’, to align strategic partners in distinctive regional clusters (role of strategic intelligence) Multi-level policy framework (shared objectives, road maps, indicators) • OECD project: design and assess smart specialisation strategies Discovery process, aided by strategic intelligence & adequate governance ‘Base-line’: measurement of specialisations and assessment of capabilities for developing smart specialisation strategies (templates) ‘Beyond the base-line’: real-life processes - case-studies on development of strategic cluster strategies; self-assessment tool for strategic governance •Call for joint S3 project: benchmarking strategic governance (‘RIS 2.0’) Mobilising unexploited potential for value creation and productivity growth through complementarity of regions based on their comp. advantages Assessing & upgrading regional innovation strategies 12 Flemish government | Department of Economy, Science and Innovation Interested? Please contact me! Thank you Department of Economy, Science and Innovation (EWI) Koning Albert II-laan 35 box 10, 1030 Brussels www.ewi-vlaanderen.be | [email protected]