Smart Specialisation and the Budapest Manifesto

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1 Smart Specialisation and the Budapest Manifesto Jesse Marsh Dornbirn,

2 Contents Regional R&D and EU 2020 Smart Specialisation The Case of Vorlalberg The Role of Living Labs The Budapest Manifesto The NeSTI Network Timeline 2

3 Regional Research Funding In , the global resources assigned to R&D and innovation by EU Cohesion Policy at regional level exceed those in FP7 and CIP ( 86 vs. 57 billion) This growing spend of EU Structural Funds on R&D&I has been called the silent revolution (Landabaso 2010) 3

4 EU 2020 Relaunch the EU economy in the coming decade Based on smart, sustainable, and inclusive growth Reach high levels of employment, productivity, and social cohesion 4

5 Flagship Initiatives Smart Growth European Digital Agenda Innovation Union Youth on the Move Sustainable Growth Resource efficient Europe An industrial policy for the globalisation era Sustainable Growth An agenda for new skills and jobs European platform against poverty 5

6 ERDF Innovation Union, Horizon 2020 and the new Cohesion Policy Agenda for , call for more integration between instruments and funding priorities along the R&D&I value chain. 6

7 New Cohesion Policy Thematic concentration Focus on Europe 2020 objectives Achieve critical mass of interventions Avoid excessive dispersion of funding Strategic programming A Common Strategic Framework Common rules for shared management of funds Partnership contracts signed between EC and MS Performance orientation Extended use of ex ante conditionality Smart Specialisation Strategy Increased emphasis on result indicators 7

8 Smart Specialisation Focus policy support and public investments on key national/regional priorities, challenges and needs for development Build interventions on the country's/region s strengths, competitive advantages and potential for excellence Support technological innovation as well as practice-based (e.g. ecological and organisational) innovation Get local stakeholders fully involved and encourage private sector investment and pilot experimentation Develop evidence-based policies with sound monitoring and evaluation systems. 8

9 S3 Platform 9

10 S3 Process Analysis of initial conditions Setup of a Governance structure Execution of a Visioning exercise Selection of funding priorities; Embedding into an appropriate Policy mix Monitoring and evaluation of rollout Policy mix Monitoring Selection Analysis Vision Governance

11 Will it work? Smart Specialisation is a significant opportunity to innovate EU regional policy However it is high-risk: a top-down strategy with potential for stakeholder conflict EU and regions alike in the search for an effective implementation strategy 11

12 The Case of Vorarlberg 12

13 Vorarlberg Clusters Passive house (Bregenz) WEST Logistics Network (Dornbirn) Packaging (Feldkirch) VAI architecture (Dornbirn) Werkraum atelier (Andelsbuch) Coordination: WISTO 13

14 Two Options Stupid Specialisation Reduce number of clusters by 50% Increase funding to surviving clusters Political strength over common benefits Really Smart Specialisation Open up to all local stakeholders Co-design new priorities through participation Fund both technical and social innovation aspects 14

15 Green Model Region? How to identify comparitive strengths? How to focus research priorities? How to introduce social innovation? How to engage stakeholders? How to get private commitments? How to run pilot experiments? How to coordinate funding sources? 15

16 Participation Sharing is a precondition for acceptance and ultimately legitimisation of decisions Acceptance implies buying the implications of a strategy, in terms of proactive (not deviant) behaviour of socio-economic actors Participation regularly increases the quantity and quality of results Participation helps take sector policies beyond stakeholder tables and the confines of current logics Participation leverages a Region s innovative capacity in a holistic sense, including people, networks, institutions, social capital etc. thus going far beyond incentivising S&T efforts (Landabaso 2012) 16

17 CentraLab Approach 17

18 Policy Direction DEVELOPMENT STRATEGIES RELATIONAL, NETWORK-BUILDING TECHNICAL THEMATIC CLUSTERS / POLES / DISTRICTS INNOVATION STRATEGIES SCIENCE & TECHNOLOGY PARKS TERRITORIAL / COMMUNITY LIVING LABS PPP / TRIPLE HELIX SOCIAL PLATFORMS, INFRASTRUCTURES 18

19 Policy Instrument Context conditions Virtual and Physical Infrastructure Regional Development Human Capital Sustainable Growth Policy Instruments Territorial Capital Social Inclusion Smart Specialisation Strategy EU R&D&I Programmes CentraLab Process

20 Smart Region Vision? Capacity to intervene on key systems, with harmonic territorial development Programming responsibility for majority of EU development funds Network capital built on experiences of territorial cooperation Key role to play in a logic of multi-level governance closer to the citizen 20

21 Common Issues Creation of critical mass Need to capitalise project results, from FP7, CIP and Territorial Cooperation projects Need to coordinate with other innovation policies ie Green Economy, Smart Cities, etc. Need to integrate with other policy instruments Recognition by DG Regio and IPTS S3 Platform 21

22 Starting Points MedLab: Mediterranean Living Lab for Territorial Innovation ERDF TC MED, Alcotra Innovation ERDF TC Cross-Border Alcotra, CentraLab: Central European Living Lab for Territorial Innovation ERDF TC CEE, Parterre: Electronic Participation Tools for Spatial Planning and Territorial Development CIP (ICT-PSP), Periphèria: Networked Smart Peripheral Cities for Sustainable Lifestyles CIP (ICT-PSP),

23 Budapest Manifesto Adoption of the Living Lab citizen-centric approach to co-design solutions capturing the benefits of the Future Internet Bottom-up Smart Specialisation strategies integrating local Territorial Agenda and Digital Agenda priorities with innovation profiles Experimentation of multi-stakeholder coproduction of public services and public procurement as a motor of innovation 23

24 Shared Strategies Innovation as the guiding policy, but requiring democratic governance Capture the potential of increasing civic participation together with Future Internet Re-frame the role of the public sector in a demand-driven perspective 24

25 Focus on Key Challenges Financial crisis undermining the European social model Climate change already threatening and destroying our territories Crisis of representation and the democratic deficit 25

26 Operational Network NeSTI Network for Social and Territorial Innovation Open to all territorial authorities and local development agencies, including EGTCs Signatories to Budapest Manifesto Commitment to cross-border, transnational, and inter-regional cooperation to address key challenges through innovation 26

27 Key Network Activities Play a pro-active role in the Smart Specialisation Platform based on the community-driven Living Lab process approach Establish means for transversal, multi-level intersectoral and multi-disciplinary governance of innovation processes Develop common and macro-regional strategies that integrate funding sources bottom-up (FP, ERDF, ESF, EARDF, EFF, etc.) Define concrete goals, success criteria, and performance indicators through a mixture of competitive and collaborative benchmarking 27

28 Bologna Addendum Role of Cities in promoting sustainable innovation Importance of Smart Cities funding programmes Human Smart Cities approach required to balance technology and infrastructure push Intersecting roles of the urban and regional dimensions, integrated spatial logic 28

29 CentraLab Process BUDAPEST MANIFESTO & CENTRALIVINGLAB final publication (policy, roadmap, charter), video II, website, conference REGIONAL STRATEGIES partner publication comparative analysis, policy transfer, MoUs PILOT ACTIONS evaluations, reports, videos I 29

30 Timeline October 2 nd, 2012 Launch of the Budapest Manifesto October 11 th, 2012 eparticipation workshop at Open Days December signatories from 30+ regions January 30 th, 2012 eparticipation with DGs CONNECT, REGIO, HOME, JUST, COMM February 2013 Constitution of NeSTI as Italian non-profit May 2013 Human Smart Cities conference in Rome June 2013 Bled econference October 2013 echallenges Workshop in Dublin 30

31 Thank you for your attention Jesse Marsh

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