Smart Specialization: Cross-linking Innovation & New Industry Policy. K. Debackere, KU Leuven

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1 Smart Specializatin: Crss-linking Innvatin & New Industry Plicy K. Debackere, KU Leuven

2 THE CHALLENGE ann 2014 The need t align: Innvatin Plicy + New Industry Plicy Innvatin Plicy: 3% nrm Hrizn 2020 EU >< natinal/reginal R&D budgets (±5%) New Industry Plicy: Avid the pitfalls f the past Fcus n cnsrtium- & prject-driven appraches With an explicit transfrmatin bjective

3 THE NEXUS Smart Specializatin Strategy --- 3S : Cmbining, linking Innvatin Plicy & New Industry Plicy Objective: the knwledge-based transfrmatin f the industrial/business texture f a regin r natin What? Chices based n: Unique knwledge, innvatin and ecnmic capabilities present in a regin r natin, Clustering f activities n the basis f an entrepreneurial discvery prcess, Supprted by cycles f plicy learning in a Triple Helix cntext and apprach.

4 3S TRANSFORMATION: 4 MODES Transitin is ne pattern f structural changes that a smart specializatin strategy is likely t generate. Transitin ccurs when a new ecnmic dmain emerges frm existing industrial cmmns (a cllectin f R&D, engineering, and manufacturing capabilities that sustain innvatin). E.g. the develpment and grwth f a sustainable chemistry sectr ut f the present chemical industrial cmmns. Mdernizatin is anther pattern. It is manifest when the develpment f specific applicatins f a general-purpse technlgy prduces a significant impact n the efficiency and quality f an existing (ften traditinal) sectr. E.g. rejuvenating present, traditinal manufacturing peratins thrugh the intrductin f mechatrnics technlgies. Diversificatin in a narrw sense is a third pattern. In such cases the discvery cncerns ptential synergies (ecnmies f scpe, spillvers) that are likely t materialize between an existing activity and a new ne. E.g. diversificatin f traditinal textile activities int a high value-added technical textiles industry. A furth strategic pattern invlves the radical fundatin f an ecnmic activity dmain. In this case, the discvery is that R&D and innvatin in a certain field has the ptential t make sme activities prgressive and attractive that had nt been previusly. E.g. nantechnlgies fr health via medical technlgy applicatins.

5 THE ANALYTICAL BASIS RCA = Xe,s Xe,a Xr,s Xr,a LEGEND Variable: X = the activity cnsidered (exprt, patents, publicatins, ) Subscripts: e = the fcal entity (cuntry r regin), r = the reference grup f entities (cuntries r regins), s = the activity cnsidered (e.g. technlgy dmain r ecnmic sectr), a = all activities cnsidered

6 THE ANALYTICAL BASIS, STIE strenghts Surce: ECOOM

7 THE ANALYTICAL BASIS, STIE strenghts Surce: ECOOM

8 THE ANALYTICAL BASIS, STIE strengths Surce: ECOOM

9 THE ANALYTICAL BASIS, STI & Ecnmic Perfrmance based n RCA Flemish data, ECOOM

10 THE ANALYTICAL BASIS, Ecnmic strengths Flemish data, ECOOM & STORE

11 THE ANALYTICAL BASIS, Cmbining exprt intensity/share & technlgy basis RTA>1 RTA<1 Flemish data, ECOOM & STORE

12 What abut Flanders? Frm TH (Triple Helix) t TL (Triple Leverage): Cluster investment (e.g. LS SIP SOC) Cupled t bttm-up funding instruments Cupled t Hrizn2020 instruments

13 What abut Flanders? An emergent strategic cluster prtfli fr the Flemish regin: Radical fundatin (e.g. Nan fr Health, BiLife) Transitin (e.g. Chemistry, Materials, Advanced Manufacturing 3D Printing Precisin E, ICT-iMinds) Diversificatin (e.g. Fd) Mdernizatin (e.g. Manufacturing Autmatin / Rbtisatin, Bike Valley, ICT-iMinds) Smart specializatin as a cncept at the nexus f innvatin plicy, industry plicy (NIB) and transitin plicy (ViA).

14 CONCLUSION Cuntry r reginal (baseline) prfile: - Indicatrs - Pririties - Clusters - Institutins Entrepreneurial discvery prcesses by lead actrs and lead institutins supprting cuntry/reginal presence in glbal ecnmic value chains 3S Prtfli: - Mdernizatin - Transitin - Diversificatin - Fundatin Cuntry r reginal gvernance mechanisms fr: - Pririty-setting - Clustering Triple Helix interactive prcess f plicy actin & plicy learning t supprt, stimulate, select clusters f smart specializatin activity built n the knwledge and innvatin resurces present in cuntry r regin

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