RIS3 and Digital Growth Strategies Frameworks: concepts and experience. Dr. Katerina Stancova Dr. Jens Sörvik S3 Platform, European Commission

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1 RIS3 and Digital Growth Strategies Frameworks: concepts and experience Dr. Katerina Stancova Dr. Jens Sörvik S3 Platform, European Commission Brussels, 4 April 2014

2 Outline I. S3 Platform and RIS3 II. Policy process and digital growth III. Support to MSs and regions 2

3 147 EU regions + 14 EU countries + 2 non-eu regions 3

4 Main activities of S3 Platform in support of the countries/regions preparing RIS3 7. Research agenda 1. The RIS3 methodological Guide & the Digital Agenda Toolbox 6. Interactive tools, S3 Newsletter and Website Online DAE Toolbox 2. Trans-national learning, Peer Review & thematic workshops 5. Trans-regional collaboration 4. RIS3 assessment and support to REGIO desks ; ICT experts 3. Country- and Macroregion events and targeted seminars at IPTS 4

5 RIS3 Innovation strategies for smart specialisation RIS3 is a dynamic and evolutionary process "not a structure"- deeply grounded in an entrepreneurial discovery process (not a one-off action) where governments are rather facilitators than in a position of command and control. RIS3 is about concentration of resources by developing distinctive and original areas of specialisation based on existing strengths, but not only local resources. RIS3 is a legal requirement for investing ERDF in R&I. 5

6 What does the RIS3 ex-ante conditionality apply to? Investment priorities under TO: Ex ante conditionalities: 1. Research and innovation 2. ICT use (ICT based innovation & "digital growth") ICT access and quality (broadband) 3. Competitiveness of SMEs Smart specialisation strategies Digital growth strategy can be independent, but for sake of coherence it is recommended to integrate it in RIS3 Next Generation Access / Network Plan Small Business Act Recommended: Late payment Directive Include in the RIS3 envisaged 6 support to SME innovation

7 Forestry Technologies for mountain areas Tourism: innovative health and sport services Renewable energy: bio-mass Bio-Economy: New use of cellulose Hypothetical structure of a RIS3 RIS3 KETs for SMEs : Tech.transfer & audits, demonstrators, pilots Fields of "specialisation" or rather differentiation, diversification, critical mass, future potential Skills & innovation capacities: entrepreneurial, innovation management, creative Technical Assistance may be used to develop and monitor the RIS3 7

8 Assessment wheel Analysis Monitoring Process & governance RIS3 Policy mix Vision Priorities Elaborated from the original proposal by C.Saublens, EURADA 8

9 Guides: RIS3 and DAE 9

10 Policy process and digital growth - ANALYSIS: analysis of the innovation potential of MS/region in ICT incl. scientific and technological knowledge base and economic specialisations. Demand-supply side aspects need to be considered as well. - PROCESS: governance, stakeholder involvement, institutional setting. Structuring the process: Bottom-up vs. top-down. Who is going to make it happen? - VISION: common vision, goals and objectives for the future. - PRIORITIES: a limited set of of innovation and ICT driven development priorities-areas that are both supply and demand driven. - POLICY MIX: defining an action plan/roadmap with a coherent policy mix (action lines and instruments). - MONITORING: selection indicators and evaluation process. See DAE Toolbox:

11 STRATEGY LEVEL Digital Growth Strategy (framework) and RIS3 Top down/bottom Up, MONITORING TO1 and TO2 Adequate indicators Differences among the for monitoring and regions in terms of evaluation, readiness and awareness. ICT effects might not be direct but dynamic ANALYSIS: Proper indicators and ways to analyse value chains and opportunities for investement of ESIF in ICT Stakeholder involvement The balance of regional and national levels, of capacities and mandates. Which actors shall be involved and who leads the processes? POLICY MIX ICT as a horizontal measure? Balance supply side and demand side measures and when use what? Ease private initiative or invest public funds? Optimal models to promote broadband networks in rural and underserved zones? PRIORITIES Is it enabling or specialisation? Is it a tool or a specialsiation? How narrow are specialisations? GOALS/OBJECTIVES Stakeholder participation, leadership, top-down vs. bottom-up approach; How top down, versus bottom up facilitating should the region be with the RIS3 and ICT issues? 11

12 Some examples / suggestions Analysis of the regional context (data) Emilia Romagna, Northern Ireland, Cornwall (swot) Piedmont, Portugal (posit.) Saxony, Nord-PDC, Basque C. Governance Central Denmark Puglia, Scania, Centre, Scotland, Saxony, Noord Nederland, Vision Noord Nederland, Cornwall, Northern Ireland Priorities (selection) Languedoc-Roussilion, Basque C., Marche (clusters) Piedmont, Northern Ireland (cross-cutting) Ostro-bothnia, Basque C., Noord Nederland Policy mix Flanders, Noord Nederland, Lubelskie, Cornwall Monitoring Lower Austria, Lithuania, Navarra, Réunion 12

13 an online database of RIS3 priorities Enables regions to position themselves Helps them find their unique niches Lists potential partners for collaboration Current status (March 2014): EU Countries with encoded RIS3 Priorities: 9 EU Regions with encoded RIS3 Priorities: 113 Non-EU Regions with encoded RIS3 Priorities: 17 DAE or ICT: 142 out of 854 priorities 13

14 Assessment of DG Strategies by Experts Support measure to help regions with the of DG Strategies Expert assess and provide feedback to region on: a region's digital strategy ICT- related issues/components in RIS3 OP sections related to ICT Feedback report is shared with the region and EC Priority countries: Poland, Slovakia, Romania, Bulgaria, Greece, Italy and Spain 7 regions assessed so far including Lodz, Burgundy, West Romania, Abruzzo, Tuscany, etc. 14

15 The most challenging issues in assessing the Digital Growth Strategies Awareness of DAE framework and EAC TO2.1, 2.2; Understanding of S3 and DGS specificities; Assessment and evaluation methodology standardised for the whole DGS framework (might be a need for diverse evaluation methodology for different segments of DGS); Availability of relevant documents (regional/national), data, etc.; Strategy not ONE document but a framework. It is hard to know where to look for what, regions and MS should provide links to all documents; DG Strategies prepared at national level without providing examples/links to regional activities; Fragmented ICT framework, need for alignment; Regions poorly informed and lagging behind in preparing documents; Balance of expenditures, e.g. Burgundy spends a very large share on FTTH networks; How to carry out stakeholder invovlement what is good enough to meet requirements? 15

16 Thank you! Please get in Contact!

17 Issues that Experts found critical in the regions in terms of the Digital Growth strategy development General awareness of DAE including good practice and strategies for regional innovation and development in field of digital growth; Sector specific knowledge. Advantages and disadvantages in digital strategies implemented at regional level across Europe; Links between Digital Growth Strategy (framework) and RIS3 and combination of innovation and digital policy; Stakeholder participation, leadership, top-down vs. bottom-up approach; Timeframes (lacking behind in preparations); Differences among the regions in terms of readiness. Some are very far from goals. 17

18 Challenges expressed by regions at other occasions The balance of regional and national levels, of capacities and manadates. How top down, versus bottom up facilitating should the region be with the RIS3 and ICT issues? To find good indicators and ways to analyse value chains and opportunities for investement of ESIF in ICT How can one deal with ICT as a horizontal measure? If one goes for ICT or a combination if ICT in Smart Specialsiation how bnarrow should it be? To find adequate indicators for monitoring and evaluation, especially for ICT effects that might not be direct but dynamic What does it mean that strategies should balance supply side and demand side measures? And in which circumstances should a region opt for supply side or on demand side? Which is the best model to promote broadband networks in rural and underserved zones? Which actors shall be involved and who leads the processes? Should public administrations focus on supply side or on demand side? Ease private initiative or invest public funds? 18

19 Analysis Monitoring Process & governance Assessment grid An on-line tool supporting MSs/regions in analysing their progress and identifying areas of strengths and weaknesses. MSs/regions use it for self-asessment Combination of-* The requirements in EAC TO2.1 and TO 2.2 Good process methodologies for developing strategis as described in DAE Toolbox and RIS3 guide3. Policy mix RIS3 Priorities Vision 19

20 Benchmarking Regional Structure - - to identify regions that share similar structural characteristics for effective policy learning - - reference regions those that share similar structural conditions relevant for innovation-driven development - - structural similarity is evaluated on the basis of 42 variables incl. sociodemographic characteristics, sector structure, technological specialisation, economic openness and outward linkages, business size, type and quality of institutions, social and entrepreneurial attitudes, human capital - a list of regions sorted in descending order from the ones that are more similar (top) to the less similar (bottom) 20

21 Matching markets and science in Northern Ireland 21

22 SWOT - Algarve (PT)

23 Cluster analysis Portugal

24 Cluster Analysis Emilia Romgana

25 Cluster-based Approach of Piedmont Aerospace 1 Agrofood Cleantech 2 Smart Communities Mechatronic Life Sciences 1 1 Mobility Textile 1 Regional Innovation Cluster National Cluster Techonological District 1 Source: INVITALIA 1 25

26 Governance & Stakeholder involvement Key in entrepreneurial discovery process identification of priority areas and activities To ensure alignment of activities, quadruple helix, but also multi level and multilaterally. Complementary capabilities Central to renewal of plans Nice example Danish growth Fora, Quadruple helix set-up Business development strategy every two years Co-ordinates ESIF Programmes run by operators on behalf of the region/growth Forum that offer general business counselling

27 Vision - Sicily (IT)

28 Greater manchester priority identification

29 Priority setting - Lubelskie Source: Lubelskie presentation, Vaasa

30 Priority setting in the Basque Country 30

31 Lithuania

32 Monitoring and Evaluation To follow up activites in projects and programmes Learning for future But also to adapt and change areas of focus Stakeholders engaged in governance structure MOSTA in Lithuania

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