Regional Innovation Monitor Plus Final Event. Venue: Emilia Romagna Region
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1 Regional Innovation Monitor Plus Brussels (13 th December 2016) Final Event Venue: Emilia Romagna Region Workshop Report Welcome from Emilia Romagna Lorenza Badiello, Head of the Emilia Romagna Brussels Office welcomed participants to the final RIM event. She remarked on how innovation has been a driving force in European development and now Advanced Manufacturing and Industry 4.0 are shaping society in a profound manner. Introduction by European Commission Modern Industrial Policy Dr. Mark Nicklas, Head of Unit, Innovation Policy and Investment for Growth, DG Internal Market, Industry, Entrepreneurship and SMEs gave an overview of the current EU Industrial Policy. The main points were: Europe seems to be emerging from the economic and financial crisis and we are now at a point where employment, innovation and export performance are picking up. We must also see Europe s performance in context as while China s exports have increased those of Japan and the US have also declined. It is also necessary to point out that the EU has a 900 million surplus per day regarding manufactured goods. However, productivity growth has slowed since the crisis due to an under-investment in industry (lack of modernisation of machine tools) and lack of investment in digitalisation. Research and innovation budgets however remain stable. Europe must also face up to a political challenge as witnessed by the increase in inequality, which is illustrated by a technology gap and de-industrialisation at the regional level. Europe is in an industrial revolution in an era of rapid technological change and Europe needs to move to a circular and low carbon economy combined with big data, the servitisation of industry and the exploitation of new value chains. The EU is good in research but poor in the commercialisation of this research and we need to improve technological adoption rates as well as skills to use the new technologies. Policy makers must make a framework for industrial modernisation. There has been no industrial policy Communication under the Juncker Commission but this is not to say that there is no industrial policy it can be found everywhere but in no single document. This industrial policy is hence characterised by: - The development of framework conditions - Investment for modernisation - Integration into global value chains - Transition to a digital, renewable energy and circular economy at the EU level - The analysis of investment barriers at Member State and regional level - Industrial strategy is a place-based strategy it needs to happen in the regions and thus it is important to help regions use all available tools such as the RIM and the Vanguard Initiative
2 - Smart specialisation is a tool for industrial modernisation see the Industrial Modernisation Thematic Platform RIM has moved from a horizontal platform and interface to support regional innovation to a platform focused on advanced manufacturing and Industry 4.0 and industrial modernisation and smart specialisation. In conclusion, the future of advanced manufacturing will be technologies, people and the importance of place and regions. RIM Plus Reminder where has RIM Plus come from initial focus and shift to advanced manufacturing? Jacek Walendowski, Technopolis Group Belgium, RIM Plus Coordinator noted that the RIM story started in October 2010 at what was then the Silesia and Asturias regional office in the centre of Brussels. Since this date, RIM in its various guises has identified over 1000 support measures and delivered in-depth regional reports as well as regular RIM events over the years including eight in the past two years. What can we remark over this 7-year period? First of all a growing trend of an emphasis on smart specialisation. Support measures include mainly business R&D and innovation, science-industry collaboration, a better innovation climate and business ecosystems. However, demand side policies remain weak along with improvements to human resources. We can also note a shift from science and technology focus to a stronger focus on entrepreneurship and innovation and a stronger emphasis on cluster policy linked to smart specialisation. However, these shifts need to be evaluated in terms of administrative burdens and cost. Many schemes have fallen short in structuring value chains and the diffusion of innovation. This is coupled to a lack of disruptive initiatives and too much RIS3 conformity. Within Industry 4.0 and advanced materials, identifiable clusters are emerging but a key challenge will be the governance of the potential gaps in policy areas. These include national reforms, the fragmentation of the STI landscape, the implementation of smart specialisation, coordination, dealing with the decrease in innovation actors, aligning national and regional strategies and empowerment. In conclusion, Jacek Walendowski agreed with the previous speaker regarding the importance of the regional dimension but remarked on the problems of governance. Key challenges are the implementation of smart specialisation strategies and their mapping and the connection of stakeholders and leaders who connect in open innovation spaces (niches between thematic areas) as well as rewarding and providing incentives. News from European regions what has changes in innovation policies and thematic priority areas since the launch of RIM Plus? Puglia Advanced Materials Dr. Alessandro Muscio, Associated Professor in Applied Economics, Università degli Studi di Foggia noted that the Puglia region had been slow to recover since the crisis. The region had created six Technological Districts based on Key Enabling Technologies. The New Materials District is clustered in Brindisi/Taranto and has industrial applications revolving around the aerospace sector (over 5,000 employees). There are few large companies (74% of employment) with 50% of staff in AgustaWestland and Alenia-Aermacchi (Leonardo-Finmeccanica). The Nanotechnologies District is clustered in Lecce and Bari and focuses on health, environment and food. There is a strong role for the public research system (with some 200 researchers involved). The sector has many start-ups and some involvement of large companies such as Bosch, STMicroelectronics, ItalCementi, H3G and Ospedale San Raffaele. 2
3 Challenges are that new materials must meet nanotechnologies, which will include future development in the aircraft industry such a production of advanced turboprop aircraft. There is also a need to establish financial stability to the nanotech research system that will secure untenured research staff. Opportunities include the need to continue to foster interregional collaborative research and strengthen a fragile research system and a technological upgrading of the regional aerospace value chain to include advanced manufacturing in SMEs and the development of the Taranto Grottaglie airport test bed as a test-bed for unmanned aircrafts. Key challenges for regional policy include leveraging the potential of regional research institutions and the education system, which is severely underfunded. Human capital development is a key factor for innovation policy in Puglia, where the rate of tertiary education is much lower than in the rest of Europe. This will include the recruitment of graduates and major investments are needed to improve human resources in the private sector and the employment of graduates. Regional productivity is below the European average and there is poor diffusion of ICT. There is a need to support R&D investments and entrepreneurship and support business demand for innovation. Norte Industry 4.0 Dr. Augusto Ferreira, Managing Director, TecMinho - The University-Enterprise Association, Universidade do Minho presented the Norte region. The Norte region has 48% of the country s manufacturing companies and 53% of the Portuguese labour force employed in manufacturing. Over thirty per cent of the regional GVA comes from manufacturing. The region has manufacturing solutions such as machines, industrial systems, industry software, industrial and engineering consultancy. It has a strong industrial sector working around the Produtech cluster. It has numerous firms working with RTDI organisations which are generally served by skilled human resources and participate in international markets and networks. Technology roadmaps have been prepared for the following industries: 1) footwear; 2) textile and apparel; 3) wood and furniture; 4) leather; 5) metal working; 6) cork; 7) moulds, tools and plastics; 8) ceramics and glass; 9) natural stones. The roadmaps include market needs, new products/technologies and the identification of key research areas. Investment in scientific and technological infrastructures is no longer the main priority (12% of the Norte Operational Programme (OP) budget). Priorities are now intangible factors of competitiveness: business innovation, networking/clustering, governance, entrepreneurship and internationalisation) guided by the principle of smart specialisation. Investment in businesses and particularly in SMEs has become the priority. SMEs competitiveness topic accounts for about 38% ( 1.3b ERDF funding) of Norte s OP budget. Navarra Industry 4.0 Mikel Irujo Director, Delegation of Government of Navarra in Brussels gave a rapid overview of the Navarra region that has three universities and 14 technology and research centres concentrated on four sectors: energy, agri-food, industry and biotechnology. The new smart specialisation strategy includes business development, R+D+I, infrastructure, public administrations and taxation and education and training. Under business development, industry 4.0 has identified four challenges: Challenge 1 - Social awareness and dissemination of the concept Industry 4.0; Challenge 2 - Navarra s Industry digitalization. Towards Industry 4.0; Challenge 3 - Fostering new competences and skills aligned to the needs of the new industry; Challenge 4 - Generation of an Industry 4.0 s services basis supporting the industrial sector. 3
4 Update on the potential headline topics of joint cooperation what should be the objectives and focus of such cooperation? Dr. Kalyan Hazra, Sector Lead, National Composites Centre is located in Bristol which has 60,000 jobs in aerospace. The composite market is estimated to increase from the current 2.3bn to 10.2bn in Potential joint collaboration topics in advanced materials & nanotechnology (nonaerospace) include: Next generation of automotive structures Smart composites bridge (modular, with integrated health monitoring sensors): Printed electronics would be a key element for the sensors where other partners can contribute Green composites (promote EU sources bio-based polymers and fibres) Textile composites for various industrial applications e.g. sporting goods, medical, construction, marine, transports Smart composites structures for various industrial applications (embedding sensors and sensor systems for several applications in automotive, semiconductor, agriculture, water, natural gas) Street furniture (smart lamp posts and signs, crush structures), smart street design for elderly or handicapped people, smart stadiums and houses Lightweight flood defence structures Lightweight pylons for overhead power transmission lines Sustainable farm structures and buildings Sustainable air cleaning and disinfecting system for airports, airplanes, operating and hospital rooms, etc. Dr. Igor Kovač, Jožef Stefan Institute, Department of Automation, Biocybernetics and Robotics, Slovenia outlined the Jožef Stefan Institute which is the biggest public research institute in Slovenia with more than 850 people employed. The main research areas are: physics, chemistry, molecular biology and biotechnology, information technologies, automation and robotics, reactor physics and technology, energy and environment. The Slovenia smart specialisation (S4) priority areas are: Smart cities and communities Smart buildings and homes, including wood chain Networks for the transition to circular economy Sustainable food production Factories of the Future (FoF) Health medicine Mobility Development of materials as end products. 4
5 The S4 Strategy is implemented through several projects such as GOSTOP (Jožef Stefan Institute) (FoF) which will accelerate the development and construction of the concept of smart factories in Slovenia; EVA4green (SiEVA d.o.o.) (Mobility) the development of new products to contribute to reducing energy consumption and emissions; BioPharm.Si (COBIK - Centre of excellence) (Health - medicine) development of stable, high-quality and repeatable process of production of biologica medicines; TIGR4smart (TRIMO d.d.) (Smart buildings and homes, including wood chain) - the program is based on sustainable products and their integration into systems. What have been the main shifts in policy in the last seven years? Industry strategy and Advanced Manufacturing EFFRA Chris Decubber, EFFRA s Technical Director European Factories of the Future Research Association described EFFRA and identified the current hot topics: logistics supply chains, automation, IoT/cloud/data, standardisation, competence centres and innovation hubs. The EFFRA Innovation Portal is a one-stop shop for progress reporting, sharing information around projects and supporting road-mapping activities. Key priorities for are agile value networks, excellence in manufacturing, the human factor, sustainable value networks and interoperable digital operating platforms. Smart Specialisation and thematic platforms update from the Industrial Modernisation Platform Nikos Pantalos, Innovation Policy and Investment for Growth, DG Internal Market, Industry, Entrepreneurship and SMEs described the Industrial Modernisation Platform which brings together regions, clusters as well as EU advisory services. The Platform has three objectives of mapping competences, supporting cooperation projects and then stimulating business plans and potential investment. Leading regions with industrial modernisation in their smart specialisation strategies are invited to select a thematic area or a commitment involving three regions from three Member States. As the Platform expands, a governance structure will be implemented involving Commission services and regions leading commitments. From the first announcement in June 2016, all five Vanguard Initiatives pilots have joined the platform and new expressions of interest have been received for Innovative Textiles and Industry 4.0 at the kick-off event in Barcelona in Nov Smart Specialisation and building value chains update from Vanguard Initiative Wim De Kinderen, International Project Manager, Brainport Eindhoven EU Office outlined the progress of the Vanguard Initiative. The Vanguard Initiative started in 2013 linked to the Industrial Renaissance Communication published in January 2014 which referred to smart specialisation industrial platforms. This Communication was followed up by Council Conclusions in March 2014 stating smart specialisation should be promoted at all levels, including through the efficient use of 5
6 public investment in research. This will facilitate contacts between firms and clusters and improve access to innovative technologies. 1 The Vanguard Initiative now has 30 regions as members and works on a 4-step methodology aiming at developing new investment models. The Vanguard Initiative is now at a turning point and requires funding for demo-cases and mobilising expertise from regions. Cluster policy update from the European Cluster Conference 2016 Carsten Schierenbeck, Unit Clusters, Social Economy and Entrepreneurship, DG Internal Market, Industry, Entrepreneurship and SMEs announced that clusters were moving from a narrow sectoral focus to wider cross-sectoral approach e.g. from transport to mobility. The European Cluster Conference was entitled Cluster 4.0 which involved shaping smart industry and links to Industry 4.0 and digital innovations. Clusters can be used to: Accelerate entrepreneurship and promoting skills. For example over three thousand strong clusters account for more than 54 million jobs. Gazelles in strong clusters employ 35 staff compared to 24 elsewhere and salaries in strong clusters are 3% higher than elsewhere. Foster SME internationalisation through the European Cluster Collaboration Platform Boost interregional collaboration and investment through strategic collaboration stimulated by the cluster platforms and the smart specialisation platforms. Facilitate new cross-sectoral value chains through the Innosup calls in Horizon KETs and Advanced Manufacturing DG GROW Heidi Moens, Policy Officer, KETs, Digital Manufacturing & Interoperability Unit mentioned the Innobarometer noting that there was a low uptake of advanced manufacturing tools and techniques due to the high investment required. Therefore, KETs policies are seeking to reduce risk and investment by improving lending from the EIB to advanced manufacturing companies and helping companies access start-of-the-art centres to support advanced manufacturing. The Innosup 3 Call will promote cross-border networks of technology centres. Also the Watify project will support regional innovation ecosystems and stimulate digital entrepreneurship. Panel discussion Main findings and lessons learned from RIM Plus The panel discussion brought back the previous regional speakers along with Mark Nicklas and Jack Engwegen, Head of Unit, Hungary, Dir E Administrative Capacity Building and Programmes Implementation II, DG Regional and Urban Policy. Alessandro Muscio noted that we needed to pay more attention to absorptive capacity and questioned future roles of convergence regions and how to develop a leader/follower model. Weaker regions needed to benchmark against similar regions and define precise starting points to measure progress. 1 file:///c:/users/director/downloads/ pdf 2 file:///c:/users/director/downloads/fl_433_sum_en.pdf 6
7 Augusto Ferreira noted that the RIM platform was important and played a strong role in supporting collaboration, project development and dissemination. There is an increasing lack of public funds for infrastructure and more funding is shifting to innovation systems and intangible factors but it was more difficult to do soft and so there is still the temptation to build infrastructure that is not fully used. There is a stronger need to collaborate and use infrastructure savings to drive projects and knowledge-driven innovation. One of the problems is how to capture and use knowledge and there is a need to restructure the knowledge base. He also noted that many regions are suffering from a brain drain and thus the quality of life and a more business-driven environment was important. In a longer intervention, Jack Engwegen, remarked on the evolution of place-based models of regional development (e.g. Barca Report 3 ) and regional innovation strategies. Studies indicated that no region was alike and thus there could be no one-size fits all approach. However, he then questioned the difference of smart specialisation strategies and regional innovation strategies. In the ESIF regulations, S3 can refer to national or regional strategies. However, is a national strategy a bottom up strategy taking into account the regions or a top down strategy that will influence regional policy? The role of S3 in cross-border linkages is still vague because S3 strategies have often been inward looking. There are also questions to be asked regarding the role of S3 in macro-regional strategies and he called for more coordination of S3 strategies within macro regions. There is now a strong call for cooperation but still a lack of knowledge on how to cooperate and the fact that only one of the Vanguard Regions was in eastern and central Europe was mentioned. It was important that eastern and central Europe regions could become more active partners in EU networks. Mark Nicklas noted that RIM Plus had provided a valued knowledge base and was able to bring people together. He echoed the need to bring all kinds of regions together and not just the usual suspects. The new RECONFIRM platform will build on RIM but will emphasise cross-border collaboration, events in low innovation countries, examine incentives and streamline and exploit synergies. The workshop ended with a convivial networking cocktail
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