The shift towards Demand-Side innovation policy at regional level. René Wintjes (MERIT, Maastricht University) 5 April 2012 Tirana
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1 The shift towards Demand-Side innovation policy at regional level René Wintjes (MERIT, Maastricht University) 5 April 2012 Tirana
2 2
3 Content 3 The concept of demand-side innovation policy Four types of demand side policy measures Demand-side policies at EU and national level: recent focus on procurement Overview at regional level Conclusions, difference between regional and national level Future challenge: involve users
4 4 Importance of Demand
5 Definition of Demand-side innovation policies a set of public measures to increase the demand for innovations, to improve the conditions for the uptake of innovations or to improve the articulation of demand, in order to spur innovations and the diffusion of innovations (Edler & Georghiou 2007, p.952) 5
6 6 Supply-side policies
7 Supply-side policies, a linear approach 7
8 Demand- side of innovation policy Demand-side policies Coupling model of innovation (Rothwell and Zegveld, 1985) 8
9 The policy rationales Better articulation of (public, industrial, consumer) needs can reduce the uncertainties and risks for suppliers; Effective innovative (public, industrial and consumer) demand can stimulate suppliers and start-up s; The use and application of innovations in industry/public sector can enhance productivity and improve public services; Innovative public and/or private demand can help in addressing societal challenges; Promoting interaction between co-located users and producers of innovation can generate localised learning and agglomeration dynamics in systems. 9
10 Separating supply- from demand-side policy measures? Supply-side measures Systemic policies Demand-side measures 10
11 Types of Demand-side innovation policy instruments Public procurement of R&D (e.g. PCP, SBIR) Public procurements of innovative goods & services (PIANOO (Regulation & Standardisation) Systemic policies (Cluster policy, Lead-Markets, Technology Platforms) 11 Support of private demand (demand subsidies, awareness campaigns, demonstration projects, advice and training from innovation agencies)
12 Public procurement of R&D (better articulation of needs) Coupling model of innovation (Rothwell and Zegveld, 1985) 12
13 Status implementation PCP across EU 13
14 Pre-Commercial Procurement PCP in Intelligent Transport Systems Mai Sloth, WP2 May 2011: Despite all the attention PCP has received over the last couple of years, the procedure is not always the best choice. Alternatives include: competitive dialogue, negotiated procedure, design contests, framework agreements 14
15 SBIR (NL) example: Waterboards: we need real-time monitoring of dikes and dams New company was started using satellite images for monitoring Other start-up can monitor dikes from the inside with sensors 15
16 Regional public procurement R&D Flanders Action Plan on Public Procurement of Innovation (Flanders, BE2) a horizontal approach to pre-commercial procurement of R&D. Regional government buys innovation from companies and knowledge institutes in 13 different policy areas; can help government to identify public demand and define purchasing needs, enhance public commitment to procure innovative solutions. Innovation platforms linking demand and supply. 16
17 More autonomy: higher chance of regional public procurement policy 17 Source: RIM-survey 2010
18 Public procurement of innovative goods/services Coupling model of innovation (Rothwell and Zegveld, 1985) 18
19 Regional public procurement of innovations I Finnish national measure to promote procurement of innovations in public sector: Outsourcing of municipal engineering: City of Varkaus; New innovations and life-cycle targets for the operating environment in education and day care: City of Jyväskylä; Sheltered housing for the seriously disabled: City of Vantaa, social and health-care sector. 19
20 Regional public procurement of innovations II The Hybrid Electric Fuel-Cell Bus project (North Rhine- Westphalia, DEA) EUROPROC - EU Regional Cooperation for SMEs access to Public Procurement (Severozapaden, BG31) Acquisition of optical fibre routes (Valle d'aosta/vallée d'aoste, ITC2) 20 CIVITAS MIMOSA (Autonomous region Madeira, PT30)
21 Systemic policies involving (end)users Coupling model of innovation (Rothwell and Zegveld, 1985) 21
22 Systemic policies I Amsterdam Living Lab (North Holland, NL32) innovation playground, collaboration between the inhabitants of Amsterdam, its businesses, research institutions and government. Together we are developing smart projects that will change the world. We test them in Amsterdam first. Example programme: Amsterdam Smart City The project is a joint initiative of Liander (the operator of Amsterdam s electricity grid) and the local innovation agency Amsterdam Innovation Motor. An extensive number of partners have signed up. The public funded research organisation TNO has joined Amsterdam Smart City and will conduct the research for all the projects. 22
23 An Amsterdam Smart City project on saving energy 23
24 Systemic policies II 24 Living Lab Salud Andalusia; Smart City Innovation Playground (Norra Mellansverige, SE31); Energy Cluster Zealand (Zealand region, DK02) InMotion (Västra Götaland, SE) Regional programme promoting and developing sustainable transport solutions and energy systems. Funding for: knowledge development, testing and demonstration; internationalisation; development and implementation of methods for innovation procurement; SME funding; and strengthening of collaboration platforms
25 Stimulation of private demand (demand-push, promote diffusion) Coupling model of innovation (Rothwell and Zegveld, 1985) 25
26 Stimulation of private demand Technology financing (Baden-Würtemberg, DE1); Information society in the Bratislava Region (Bratislavsky kraj, SK01); Designing Demand Programme (London, UKI) Export and Internationalisation Offensive in the Fields of Eco-Energy and Eco- Technology (Oberösterreich, AT31) supports partners of the Upper Austrian eco-energy cluster or the Upper Austrian networks for environmental technologies and energy efficiency. Projects must have a strong focus on export. Support for: patent applications ; the adaptation of products; specific market research; visits to trade fairs; consultancy; and marketing. 26
27 Conclusions Most used types of demand-side innovation policies at regional level are: systemic policies and stimulating private demand The regional level is especially relevant for promoting localised interaction between (end) users and suppliers, and for diffusion Underused potential for innovative public procurement of innovative goods and services 27
28 Future challenge How to enhance involvement of (and interaction with) the regional/local government or public sector as a partner and user? Public procurement; Own regional PCP/SBIR scheme and centre of expertise Use national scheme and supporting expertise Integrated in current systemic policies Involve users in supply-measures is also an option: e.g. more targeted programmes; users in steering-boards 28
29 Thank you For questions or comments, please contact: René Wintjes UNU-MERIT - Maastricht University 29
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